Bandai Namco Holdings Inc.
Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2024

November 7, 2023

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

Bandai Namco Holdings Inc.
Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: https://www.bandainamco.co.jp/)
November 7, 2023

Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2024 (Japanese GAAP)
Representative:
Masaru Kawaguchi, President and Representative Director
Contact:
Yuji Asako, Director
Scheduled filing date of the quarterly security report:
November 9, 2023
Scheduled starting date for dividend payments:
December 8, 2023
The Financial Highlights of the Financial Results for the Quarter: Yes
The information session of the Financial Results for the Quarter: Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Second Quarter of the Fiscal Year Ending March 31, 2024
(April 1, 2023 to September 30, 2023)(1) Consolidated Operating Results (For the Six Months Ended September 30, 2023)

Second Quarter of the Fiscal
Year Ending March 31, 2024
Second Quarter of the Fiscal
Year Ended March 31, 2023

Net sales¥ million
502,002%
5.1

477,620

21.3

Profit attributable toowners of parent¥ million%
52,167(21.6)(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
65,479(19.8)
73,931(20.0)
81,60732.2

Basic earnings per share

92,365

44.1

Diluted earnings per
share

¥
¥
Second Quarter of the Fiscal
79.03–
Year Ending March 31, 2024
Second Quarter of the Fiscal
66,55768.4
100.85–
Year Ended March 31, 2023
(Note) Comprehensive income: 75,621 million yen [(16.7)%] (FY2024.3 2Q), 90,741 million yen [28.2%] (FY2023.3 2Q)(Note) The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023.
Basic earnings per share were calculated assuming that the share split was conducted at the beginning of the previous
fiscal year.
(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of September 30, 2023
974,757
688,830
70.6
As of March 31, 2023
926,358
652,133
70.4(Reference) Equity: 688,533 million yen (as of September 30, 2023), 651,851 million yen (as of March 31, 2023)

2. Cash Dividends
End offirst quarter
Fiscal Year Ended March 31, 2023
Fiscal Year Ending March 31, 2024

End ofsecond quarter–¥27.00–¥10.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥179.00

Total¥206.00

Fiscal Year Ending March 31, 2024–
¥10.00¥20.00(Projections)(Notes) 1. Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2024: No
Concerning the projected amounts of the year-end cash dividend for the fiscal year ending March 31, 2024, the basedividend is stated based on the Company’s basic policy on the distribution of profits. The year-end cash dividend for the
fiscal year ending March 31, 2024, will be considered by the Company based on the basic policy on the distribution of
profits.
2. The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023.
The actual amount of dividends based on before the aforementioned share split is stated for the fiscal year ended March
31, 2023.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Profit attributable to Basic earnings
profitprofitownersper shareof parent¥ million%¥ million%¥ million%¥ million%¥
Full Fiscal Year
1,000,000
1.0
125,000
7.3
134,000
4.7
91,0000.7
137.85(Note) Revision to the projections: Yes
Consolidated projections for the full fiscal year ending March 31, 2024 (announced on May 10, 2023) are revised in thisdocument. For details of the revisions to the consolidated projections, please refer to “Notice Regarding Revisions toConsolidated Projections” announced today (November 7, 2023).
* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes(Note) For more details, please refer to the section of “(3) Notes to Consolidated Financial Statements, (Application of Special
Accounting for Preparing the Quarterly Consolidated Financial Statements)” of “2. Consolidated Financial Statements andSignificant Notes” on page 12 of the attached material.
(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Nob) Changes in accounting policies due to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
666,000,000 shares
As of September 30, 2023
666,000,000 shares
As of March 31, 2023
b) Number of shares of treasury stock at the end of the period
As of September 30, 2023
5,813,708 shares
5,949,648 shares
As of March 31, 2023
c) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the Second Quarter of the Fiscal Year Ending March 31, 2024
660,108,524 shares
659,982,123 shares
For the Second Quarter of the Fiscal Year Ended March 31, 2023
(Note) The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023. Total
number of issued shares at the end of the period, number of shares of treasury stock at the end of the period, and average
number of shares during the period have been calculated assuming that the share split was conducted at the beginning of
the previous fiscal year.

* Quarterly Consolidated Financial Reports are not required to be subjected to quarterly reviews conducted by certified public
accountants or an audit firm.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on managementʼs estimates, assumptions and projections at thetime of publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A
number of factors could cause actual results to differ materially from expectations. Please refer to the section of “(3) Explanation
Regarding Consolidated Projections and Other Forward-Looking Statements” of “1. Qualitative Information Regarding Consolidated
Results for the Second Quarter” on page 3 of the attached material for matters pertaining to the earnings projections.
- To Obtain Financial Highlights:
The Financial Highlights will be posted on the Company’s website on November 7, 2023.

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

2. Consolidated Financial Statements and Significant Notes ................................................... 8(1) Consolidated Balance Sheets ............................................................................................................................................ 8(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ........................... 10(Consolidated Statements of Operations) ...................................................................................................................... 10(Consolidated Statements of Comprehensive Income).................................................................................................. 11(3) Notes to Consolidated Financial Statements ................................................................................................................. 12(Notes on Premise of Going Concern) ............................................................................................................................. 12(Notes on Significant Changes in the Amount of Stockholdersʼ Equity) ........................................................................ 12(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements)........................ 12(Segment Information) .................................................................................................................................................... 12- 1 -1. Qualitative Information Regarding Consolidated Results for the Second Quarter(1) Explanation Regarding Operating Results
During the second quarter (six months) of the fiscal year ending March 31, 2024, the future of the economic
environment around the world remained uncertain mainly as a result of changes in the social situation, rising raw
material and fuel prices, and exchange rate fluctuations, despite a recovery in socioeconomic activities due to therelaxation of restrictions on activities and other measures implemented due to the novel coronavirus disease (COVID19) pandemic.
Under such circumstances, from April 2022, with the introduction of our Purpose “Fun for All into the Future” as theultimate definition of who we are as a Group and the introduction of a new logo, the Bandai Namco Group began our
new three-year Mid-term Plan. In the Mid-term Plan, in order to achieve the aims of the Bandai Namco Group based on
our Purpose “Fun for All into the Future,” we have established a Mid-term Vision of “Connect with Fans” that aims toconstantly meet the needs of global IP fans, a wide range of business partners, Group employees, and communities
around the world and to foster broad, deep, and multifaceted connections. As priority strategies, we are promoting our
IP axis strategy, personnel strategy, and sustainability. By propelling the priority strategies, we will take advantage of
the worldview and unique characteristics of IP (Intellectual Property: meaning characters and other intellectual
property) to further evolve the IP axis strategy that aims to maximize IP value through the provision of the optimal
products and services at the optimal times. We will also strengthen the global development of the IP axis strategy andenhance our sense of unity and collective strength under the ALL BANDAI NAMCO concept in order to achieve continuous
growth.
In the second quarter (six months), we strengthened our efforts united under the ALL BANDAI NAMCO concept, with
our IP axis strategy at the core of our efforts, working across the Group and in cooperation with each region and business.
In the Toys and Hobby Business, products for the mature fan base, card products, capsule toys and other items were
popular, while in the Amusement Business, sales of a new arcade game title and facility operations were strong, which
contributed to the Group’s overall performance. In the Digital Business, changes in the composition of the titles andproduct mix from the same period of the previous year, which saw strong repeat sales for major home console game
titles, affected results. The Group as a whole benefited from the management of its portfolio consisting of a wide rangeof businesses based on the IP axis.
Consequently, the Group’s consolidated results for the second quarter (six months) were net sales of 502,002 million
yen (year-on-year increase of 5.1%), operating profit of 65,479 million yen (year-on-year decrease of 19.8%), recurring
profit of 73,931 million yen (year-on-year decrease of 20.0%), and profit attributable to owners of parent of 52,167 million
yen (year-on-year decrease of 21.6%).
Operating results by segment are as follows.
Digital Business
As for the Digital Business, in home console games, ARMORED CORE VI FIRES OF RUBICON, a new title for worldwide
distribution launched in the second quarter of the fiscal year ending March 31, 2024, became popular. In home console
games overall, results were impacted by the difference in the product mix from the same period of the previous year,
which received significant contribution from repeat sales of ELDEN RING among existing titles. In addition, amortizationof development costs for new titles, along with marketing and other expenses, were incurred ahead of time. In network
content, sales were stable due to ongoing measures targeting users for key titles such as the DRAGON BALL series and
ONE PIECE. In this business, in light of the increasingly competitive global market environment, we will promote thedevelopment of titles with an emphasis on quality and marketing measures to stay connected with fans in order toincrease product longevity.
As a result, net sales in the Digital Business were 174,316 million yen (year-on-year decrease of 10.1%), and segment
profit was 15,516 million yen (year-on-year decrease of 65.2%).
Toys and Hobby Business
As for the Toys and Hobby Business, while impacted by rising prices for raw materials and fuel, the performanceremained strong due to efforts to expand the product lineup in categories that are doing well, advance global businessdevelopment, strengthen production operations and expand touch points through real events and stores. Specifically,
products for the mature fan base such as model kits of the Gundam series, collectible figures, and character lotteries
performed favorably mainly due to the successful outcomes produced by sales, marketing, and expansion of the productlineup. In addition, card products such as the ONE PIECE trading card game, capsule toys, and other products contributed
to earnings by strengthening the product lineup, fan base and customer touch points.
- 2 -As a result, net sales in the Toys and Hobby Business were 249,810 million yen (year-on-year increase of 17.1%), andsegment profit was 45,753 million yen (year-on-year increase of 36.3%).
IP Production Business
As for the IP Production Business, we produced several new works in video production, including TV animation
programs and theatrical productions. Among those, Mobile Suit Gundam the Witch from Mercury brought in a new fanbase and led to strong sales of the Group’s products and services. In addition, the performances of licensing businesses
and video streaming related to works, such as the Gundam series, the LoveLive! series, IDOLiSH7, That Time I Got
Reincarnated as a Slime, and BLUELOCK, were favorable. On the other hand, the overall business showed a year-on-year
decline due to differences in the title lineup in visual and music package sales compared to the same period of theprevious year and a decrease in the number of large-scale live concerts held in live events.
As a result, net sales in the IP Production Business were 33,337 million yen (year-on-year decrease of 4.9%), andsegment profit was 2,347 million yen (year-on-year decrease of 32.1%).
Amusement Business
As for the Amusement Business, net sales for existing amusement facilities in Japan increased to 102.4% year on year.
In addition, store development unique to Bandai Namco and linked to the Group’s products and services, such as theBandai Namco Cross Store and the GASHAPON Department Store, saw strong performance. In arcade games, sales of
the new product Mobile Suit Gundam Extreme Vs. 2 Overboost and Update kit for the popular series were strong. In
addition, we continued our efforts to improve efficiency in light of changes in the external environment, such as risingfuel prices.
As a result, net sales in the Amusement Business were 59,253 million yen (year-on-year increase of 21.8%), andsegment profit was 6,977 million yen (year-on-year increase of 45.2%).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support and other kinds ofadministration and operational support for each of the Group companies. We have been making efforts to manage suchoperations related to Group support in an efficient manner.
Net sales in the Other Businesses were 16,039 million yen (year-on-year increase of 6.4%), and segment profit was
661 million yen (year-on-year increase of 44.7%).
(2) Explanation Regarding Financial Position
At the end of the second quarter of the fiscal year ending March 31, 2024, total assets stood at 974,757 million yen,
an increase of 48,399 million yen from the end of the previous fiscal year. The main factors were increases of 41,785
million yen in trade receivables and contract assets, 7,407 million yen in finished goods and merchandise, 13,723 million
yen in work in process, 6,929 million yen in property, plant and equipment and 8,954 million yen in investment securities,
despite a decrease of 36,708 million yen in cash and time deposits.
Total liabilities amounted to 285,927 million yen, an increase of 11,702 million yen from the end of the previous fiscal
year. The main factor was an increase of 12,626 million yen in trade payables.
Total net assets stood at 688,830 million yen, an increase of 36,696 million yen from the end of the previous fiscal
year. The main factors were increases of 12,772 million yen in retained earnings, 5,414 million yen in valuation difference
on available-for-sale securities, net of tax, and 14,971 million yen in foreign currency translation adjustments.
As a result, the equity ratio became 70.6% compared with 70.4% at the end of the previous fiscal year.
(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, the Group expects uncertainty to continue in various regions around the world. We also expect thechanges in the environment surrounding us such as the market as well as customer lifestyles and preferences to become
even more intense.
Under these circumstances, adapting to escalating competitiveness in global markets and diversification in lifestyles
and preferences of customers, in line with our IP axis strategy, the Bandai Namco Group will enhance sense of unity andcollective strength under the ALL BANDAI NAMCO concept, while utilizing the characteristics of each business. From April
2022, with the introduction of our Purpose “Fun for All into the Future” as the ultimate definition of who we are as aGroup and the introduction of the new logo, to maintain continuous growth over medium to long term for the aims under
our Purpose, the three-year Mid-term Plan has started.

- 3 -

1)

Formulation of Bandai Namcoʼs Purpose “Fun for All into the Future” and introduction of the new logo

From April 2022, we have established our new Purpose “Fun for All into the Future” as the ultimate definition of who
we are as a Group, conveying “the reason for our existence,” “why we conduct our businesses and corporate activities,”and “the meaningfulness we derive from working at Bandai Namco Group.” What we believe to be particularly importantelements in our Purpose are the ideas of “Connecting and working together to create things” and we will achieve “Funfor All into the Future” by Bandai Namco Group and our fans connecting through dreams, fun and inspiration.
Furthermore, the Group CEO’s desire to promote “Fun for All into the Future” is expressed in the phrase, “Creating aworld of smiles and happiness together,” and we will spread this message together with Bandai Namco’s Purpose.
<Bandai Namco’s Purpose>

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

2)

Our aims driven by our Purpose “Fun for All into the Future”

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

Mid-term Vision

In accordance with our Purpose “Fun for All into the Future,” as we work toward what the Bandai Namco Group aims
to be, under the Mid-term Plan we will strive to always meet the needs of IP fans, a wide range of business partners,
Group employees, and communities around the world and to foster broad, deep, multifaceted connections.
4)

Main strategies and investment plan
IP axis strategy

The IP axis strategy, which is the Bandai Namco Group’s strength, is the core of the Mid-term Plan.
- 4 -We will aim for sustainable growth by implementing new initiatives to foster broad, deep, and multifaceted
connections with fans around the world; by accelerating evolution in the IP axis strategy; and by working to build
businesses as we work together under the ALL BANDAI NAMCO concept in regions around the world.
・IP x Fans (connecting with fans through IP): New framework for connecting with fans

Based on the IP axis, Bandai Namco will develop a metaverse for each IP as a new framework for connectingwith fans. In this IP Metaverse, we are anticipating virtual spaces that will enable customers to enjoy a wide range
of entertainment surrounding IP, as well as frameworks that leverage Bandai Namco’s distinctive strengths to fusephysical products and venues with digital elements. We are aiming for open frameworks that provide venues forconnections with and among fans and business partners. Through the IP Metaverse, we will establish communities
among Bandai Namco and fans, as well as among fans themselves. Through these communities and content, we
will build broad, deep, multifaceted connections that continue for long periods of time, and we will focus on thequality of those connections. In this way, we will work to maximize IP value over the medium to long term.
・ IP x Value (enhancing IP value): Accelerating evolution in the IP axis strategy
We will leverage outlets for a wide range of products and services as well as our strengths in facilitating
collaboration among physical and digital elements, and we will redefine the optimal IP axis strategy for IP fans
and for IP itself. In these ways, we will aim to accelerate evolution in the IP axis strategy.
・ IP x World (connecting the world through IP): Building businesses under the ALL BANDAI NAMCO concept
To work together and advance our strategies under the ALL BANDAI NAMCO concept in regions worldwide, wehave implemented such initiatives as organizational restructuring and base consolidation around the world.
Under this ALL BANDAI NAMCO concept, we work to build businesses in each region.
・ Investment plan for accelerating evolution in the IP axis strategy
Over the three years of the Mid-term Plan, we will implement a total of 40.0 billion yen in strategic investment
to accelerate evolution in the IP axis strategy.
Strategic investment to maximize IP value: 25.0 billion yen
Investment to develop the IP Metaverse:
15.0 billion yen
Personnel strategy: Developing diverse human resources
In accordance with our Purpose “Fun for All into the Future,” the Group strives to be a corporate group of “SameSpirit, Diverse Talents,” where diverse people with various talents, personalities, and values can thrive. We will further
focus on recruiting and promoting human resources regardless of whether they are new graduates or mid-career hires
and regardless of gender, age, nationality, race, religion, or sexual orientation. In addition, we will focus on developing
systems and environments that enable a diversity of people to thrive and work in a way that is both physically andmentally healthy. Under the Mid-term Plan, we will promote initiatives to support challenges taken on by employees
and the development of human resources to promote the IP axis strategy on a global scale, as well as new and diverse
ways to work.
In addition, we will actively engage in cooperation and collaboration with external human resources.
Sustainability: Connecting to smiles into the future
Under our Purpose “Fun for All into the Future” and “Bandai Namco Group Sustainability Policy,” the Group has
identified five themes that need to be addressed with particular importance as Material Issues. We are promoting various
specific action plans linked to our businesses, such as initiatives to introduce electricity derived from renewable energy,
eliminate petroleum-derived plastics, and promote the collection and recycling of model kit runners and empty capsules.
Furthermore, to respond to the natural environmental problems that society is facing, we will set targets and steps for
reduction of carbon dioxide emissions from the use of energy and strive to advance efforts toward decarbonization.
<Bandai Namco Group’s Sustainability Policy>
Based on the IP axis strategy, the Bandai Namco Group will work together with fans to advance sustainability
activities that focus on the social issues that the Group should address.

- 5 -<Specified Material Issues>Harmonious coexistence with the natural environmentProvision of appropriate products and services



Appropriate utilization and protection of intellectual property



Establishment of work environments that facilitate mutual respectHarmonious coexistence with communities

In addition, on November 1, 2023, the Bandai Namco Group Human Rights Policy was established, which clearlystipulates the Bandai Namco Group’s policy regarding respect for human rights. Going forward, we will fulfill our
responsibility to respect the human rights of all stakeholders involved in the Group’s business activities by aiming tocontinue to create a brighter future with people around the world through entertainment that awakens our humanity
and connects us with others, with society, and with the world, as represented by Bandai Namco’s Purpose “Fun for All
into the Future.”
5)

System for promotion of the Mid-term Plan
・Strengthening the governance system of Bandai Namco Holdings

In order to further increase corporate value by strengthening our corporate governance system and implementing
rapid decision-making and business execution, we made the transition to a company with an Audit & Supervisory
Committee in June 2022.
・ Partial changes of the Unit structure
From April 2022, we restructured the IP Production Unit and also integrated the Visual and Music Business and theCreation Business into the IP Production Business. In the IP Production Unit, Bandai Namco Filmworks Inc. will serve asa business management company upon having combined three companies that engage in the visual business within the
IP Production Unit, namely SUNRISE INC., the visual business of Bandai Namco Arts Inc., and Bandai Namco Rights
Marketing Inc.
6)

Numerical targets, shareholder return policy・ Fiscal year ending March 31, 2025: Numerical targets
Consolidated net sales:
Consolidated operating profit:
ROE:

1,100.0 billion yen
125.0 billion yen
12% or moreIn the future, the Bandai Namco Group aims to always meet the needs of IP fans, a wide range of business partners,
Group employees, and communities around the world and to foster broad, deep, multifaceted connection, and eachbusiness around the world will further work as one under the ALL BANDAI NAMCO concept on the priority strategies,
consisting of the IP axis strategy, Personnel strategy, and Sustainability, under the Mid-term Plan.
The Company has carefully reviewed its consolidated projections for the fiscal year ending March 31, 2024, giving
attention to such factors as the actual results of the second quarter (six months), the development of the IP and therollout of products and services in each business from the third quarter onward, and the impact of fluctuations incurrency exchange rate. As a result, the Company expects non-operating income, mainly from currency exchange, toincrease and has upwardly revised recurring profit from the projections announced on May 10, 2023.

- 6 -Revisions to consolidated projections for the full fiscal year ending March 31, 2024
(April 1, 2023 to March 31, 2024)
Net sales¥ million

Operating profit

Recurring profit

Profitattributable toowners of parent

Basic earnings
per share¥ million¥ million¥ million¥

Previous projections (A)1,000,000

125,000

129,000

91,000137.87

Revised projections (B)1,000,000

125,000

134,000

91,000137.85

Change in amount (B-A)

–

–

5,000

–

–

Change (%)

–

–

3.9

–

–

990,089

116,472

90,345136.88(Reference)
Results for the previous fiscal year
(Fiscal year ended March 31, 2023)

128,006

Note: The Company conducted a share split with a ratio of three shares for every one share of common stock on April 1, 2023. Basicearnings per share were calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

- 7 -2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2023)

Current 2nd Quarter(As of September 30, 2023)

AssetsCurrent assets
Cash and time deposits

280,226

243,517

Trade receivables and contract assets

99,007140,793

Finished goods and merchandise

41,324

48,731Work in process

104,835

118,558

Raw materials and supplies

6,063

7,967

Other current assets

62,26665,551

Allowance for doubtful receivables(1,086)(1,139)Total current assets

592,637

623,980

107,458

114,388

14,561

13,325

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

21,622

23,727

Total intangible assets

36,18337,052

Investment securities

140,706

149,660

Other investments and assets

50,02950,395

Allowance for doubtful receivables

(656)

(718)

Total investments and other assets

190,078

199,337

333,720

350,777

926,358

974,757

Investments and other assets

Total fixed assets
Total assets- 8 -(¥ million)
Prior Fiscal Year(As of March 31, 2023)

Current 2nd Quarter(As of September 30, 2023)

Liabilities
Current liabilities
Trade payables

99,244

111,871

Short-term borrowings

10,77011,129Accrued income taxes

26,022

24,454

Provision

4,078

1,265

Other current liabilities

107,206

108,811

Total current liabilities

247,323

257,531

Long-term liabilities
Provision

118

118

Net defined benefit liability

3,710

3,274

Other long-term liabilities

23,071

25,001

Total long-term liabilities

26,901

28,395274,224

285,927

Total liabilities
Net assets
Stockholdersʼ equity
Common stock

10,00010,000Capital surplus

52,89753,321Retained earnings

523,923536,695

Treasury stock(2,102)(2,055)

Total stockholdersʼ equity

584,718

597,961

62,671

68,085

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

(656)

2,214

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

Foreign currency translation adjustments

11,04926,020Remeasurements of defined benefit plans, net of tax(1,915)(1,732)

Total accumulated other comprehensive income

67,132

90,571282

297

652,133

688,830

926,358

974,757

Non-controlling interests
Total net assets
Total liabilities and net assets- 9 -(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Current 2nd Quarter(From April 1, 2023
to September 30, 2023)

Prior 2nd Quarter(From April 1, 2022
to September 30, 2022)
Net sales

477,620502,002

Cost of sales

282,003304,749

Gross profit

195,616

197,253

Selling, general and administrative expenses

114,008

131,773

Operating profit

81,60765,479Non-operating income
Foreign exchange gains

7,085

4,060

Other non-operating income

3,898

4,672

Total non-operating income

10,983

8,733

Non-operating expenses
Interest expenses

158

139

Loss on valuation of derivatives–

82

Other non-operating expenses

67

58

Total non-operating expenses
Recurring profit

225

280

92,36573,931–508

Extraordinary income
Compensation income
Other extraordinary income

650

95

Total extraordinary income

650

603

Loss on valuation of investment securities

283

291

Other extraordinary loss

470

239

Total extraordinary loss

754

530

Profit before income taxes

92,26174,004

Income taxes

25,666

21,823

Profit

66,59452,180Extraordinary loss

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 10 -

37

13

66,55752,167

(Consolidated Statements of Comprehensive Income)(¥ million)
Current 2nd Quarter(From April 1, 2023
to September 30, 2023)

Prior 2nd Quarter(From April 1, 2022
to September 30, 2022)
Profit

66,59452,180

9,458

5,333

495

2,866

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

13,967

14,972Remeasurements of defined benefit plans, net of tax

236

183

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

(10)

83

24,14723,44090,74175,62190,70475,60637

14

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests- 11 -

(3) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Notes on Significant Changes in the Amount of Stockholdersʼ Equity)
Not applicable.
(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements)(Calculation of taxes)
Taxes are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting against
profit before income taxes for the fiscal year including the current second quarter, and next by multiplying the profit
before income taxes by such estimated effective tax rate.
(Segment Information)
I

Prior 2nd Quarter (From April 1, 2022 to September 30, 2022)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments

Adjustments(Note 2)

Consolidated Total(Note 3)477,620–477,620

11,73528,439(28,439)–

490,989

15,070506,059(28,439)

477,620

86,475456

86,932(5,324)81,607

Other(Note 1)

DigitalBusiness

Toys and
Hobby
Business

IP Production
Business

Amusement
Business

Subtotal

191,791

206,586

27,94547,962474,2853,334Inter-segment sales
and transfers

2,106

6,782

7,119

695

16,703

Total

193,897

213,368

35,06548,657

Segment profit

44,64933,562

3,459

4,804

Total

Net sales
To externalcustomers

Notes: 1.

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

2.

Included in the 5,324 million yen deducted from segment profit as adjustment are an addition of 259 million
yen in inter-segment eliminations, and a deduction of 5,584 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.

3.

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

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

- 12 -

II Current 2nd Quarter (From April 1, 2023 to September 30, 2023)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments

Adjustments(Note 2)

Consolidated Total(Note 3)502,002–502,002

13,22930,756(30,756)–

516,719

16,039532,759(30,756)

502,00270,595661

71,256(5,777)65,479

Other(Note 1)

DigitalBusiness

Toys and
Hobby
Business

IP Production
Business

Amusement
Business

Subtotal

171,717

241,136

27,50958,829499,1922,810Inter-segment sales
and transfers

2,599

8,674

5,828

424

17,526

Total

174,316

249,81033,33759,253

Segment profit

15,51645,753

2,347

6,977

Total

Net sales
To externalcustomers

Notes: 1.

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

2.

Included in the 5,777 million yen deducted from segment profit as adjustment are an addition of 6 million yen
in inter-segment eliminations, and a deduction of 5,783 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.

3.

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

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

- 13 -