Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2021

February 8, 2021

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” 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.

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: https://www.bandainamco.co.jp/)
February 8, 2021

Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2021 (Japanese GAAP)
Representative:
Mitsuaki Taguchi, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
February 10, 2021
Scheduled starting date for dividend payments:–
The Financial Highlights of the Financial Results for the Quarter: Yes
The information session of the Financial Results for the Quarter: Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2021
(April 1, 2020 to December 31, 2020)(1) Consolidated Operating Results (For the Nine Months Ended December 31, 2020)

Third Quarter of the Fiscal YearEnding March 31, 2021
Third Quarter of the Fiscal Year
Ended March 31, 2020

Net sales¥ million
543,456%
2.0

532,576

0.7

Profit attributable toowners of parent¥ million%
50,634(4.3)(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
72,922
1.1
75,144
2.3
72,096

3.2

Basic earnings per share

73,431

2.8

Diluted earnings per share¥
Third Quarter of the Fiscal Year
230.51Ending March 31, 2021
Third Quarter of the Fiscal Year
52,904(1.1)
240.69Ended March 31, 2020
(Note) Comprehensive income: 67,217 million yen [19.1%] (FY2021.3 3Q), 56,427 million yen [3.9%] (FY2020.3 3Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of December 31, 2020
718,715
488,118
67.8
As of March 31, 2020
619,819454,684
72.5(Reference) Equity: 487,272 million yen (as of December 31, 2020), 449,292 million yen (as of March 31, 2020)¥––

2. Cash Dividends
End offirst quarterEnd ofsecond quarter¥20.00¥21.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥112.00–¥61.00

Total

Fiscal Year Ended March 31, 2020–¥132.00
Fiscal Year Ending March 31, 2021–
Fiscal Year Ending March 31, 2021
¥82.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2021: Yes
For details of the revisions to the projection of cash dividend, please refer to “Notice Regarding Revision to Projection of Cash
Dividend for the Fiscal Year Ending March 31, 2021” announced today (February 8, 2021).
3. Consolidated Projections for the Fiscal Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Profit attributable
Basic earnings
profitprofitto owners
per shareof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
720,000(0.6)
72,000(8.6)
74,000(7.3)
36,000(37.6)
163.88(Note) Revision to the projections: Yes
Consolidated projections for the full fiscal year ending March 31, 2021 (announced on August 7, 2020) are revised in thisdocument. For details of the revisions to the consolidated projections, please refer to “Notice Regarding Revisions toConsolidated Projections” announced today (February 8, 2021).
* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): Yes(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 and Significant
Notes” on page 9 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)
As of December 31, 2020
222,000,000 shares
As of March 31, 2020
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of December 31, 2020
2,327,612 shares
As of March 31, 2020
2,324,320 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the Third Quarter of the Fiscal Year Ending March 31, 2021
219,669,253 shares
For the Third Quarter of the Fiscal Year Ended March 31, 2020
219,798,938 shares* Quarterly Consolidated Financial Reports are not required to be subjected to quarterly reviews conducted by certified public accountants
or an audit firm.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on management’s estimates, assumptions and projections at the timeof publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A numberof 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 February 8, 2021.

Attached Material
Index
1. Qualitative Information Regarding Consolidated Results for the Third 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 ................................................................ 5(1) Consolidated Balance Sheets.............................................................................................................................................. 5(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ................................... 7(Consolidated Statements of Operations) ........................................................................................................................... 7(Consolidated Statements of Comprehensive Income)....................................................................................................... 8(3) Notes to Consolidated Financial Statements ...................................................................................................................... 9(Notes on Premise of Going Concern) ............................................................................................................................... 9(Notes on Significant Changes in the Amount of Stockholders’ Equity) ........................................................................... 9(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements) .............................. 9(Segment Information) ....................................................................................................................................................... 9(Significant Subsequent Events) ...................................................................................................................................... 12-1-

1. Qualitative Information Regarding Consolidated Results for the Third Quarter(1) Explanation Regarding Operating Results
During the third quarter (nine months) of the fiscal year ending March 31, 2021, the spread of the novel coronavirus
disease (COVID-19) continued to have a big impact on the overall economy and consumer activity in Japan and overseas.
As part of our response against the spread of COVID-19, the Group has been giving the highest priority to the safety of our
stakeholders, including employees and their families, and customers, while implementing measures to prevent the spread of
infection. We also promoted various measures suited to the changes in lifestyles and preferences of customers bystrengthening the sales and marketing that utilize digital strategies. In accordance with our three-year Mid-term Plan started
in April 2018, in which we set forth the Mid-term Vision of “CHANGE for the NEXT: Empower, Gain Momentum, and
Accelerate Evolution,” we have also been taking 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 possible times. The measures also include
an initiative to strengthen development in regions and businesses with high growth potential and an initiative to realize thetotal capabilities of the Group in regions around the world under the ALL BANDAI NAMCO concept.
During the third quarter (nine months), although each business was impacted by the spread of COVID-19, the Toys andHobby Business saw increased popularity for products for the mature fan base and products utilizing new IP in Japan andoverseas while the Network Entertainment Business enjoyed favorable performance of key titles in network content andstrong repeat sales of home video game titles.
Consequently, the Group’s consolidated results for the third quarter (nine months) were net sales of 543,456 million yen(year-on-year increase of 2.0%), operating profit of 72,922 million yen (year-on-year increase of 1.1%), recurring profit of75,144 million yen (year-on-year increase of 2.3%), and profit attributable to owners of parent of 50,634 million yen (yearon-year decrease of 4.3%).
Operating results by segment are as follows.
Toys and Hobby Business
As for the Toys and Hobby Business, in Japan, products for the mature fan base such as plastic models of the Mobile Suit
Gundam series and collectible figures performed favorably as a result of getting successful outcomes from sales, marketing,etc. that utilize digital strategies. Popularity was also gained for long-established IP products such as the KAMEN RIDER
series, as well as for new IP toys and peripheral products such as confectionery. Overseas, while business was affected by
the temporary closures of retail stores, primarily in the Asian region, products for the mature fan base performed stably.
As a result, net sales in the Toys and Hobby Business were 220,956 million yen (year-on-year increase of 9.9%), andsegment profit was 35,550 million yen (year-on-year increase of 23.9%).
Network Entertainment Business
As for the Network Entertainment Business, in network content, key titles being distributed worldwide such as the
DRAGON BALL series and ONE PIECE, and key titles in Japan such as The iDOLM@STER series, continued to perform
favorably due to ongoing measures targeting users. In home video games, in addition to the new titles, repeat sales of existing
titles such as the DRAGON BALL series, TEKKEN 7, and the DARK SOULS series, enjoyed popularity, primarily overseas,
due to ongoing measures targeting users and increased demand for digital sales.
As a result, net sales in the Network Entertainment Business were 258,427 million yen (year-on-year increase of 11.4%),
and segment profit was 47,746 million yen (year-on-year increase of 30.9%).
Real Entertainment Business
As for the Real Entertainment Business, the temporary closures of amusement facilities in Japan and overseas in responseto the spread of COVID-19 had a big impact on facilities operations and the sale of arcade games. In response to thesechanges in the business environment, we promoted initiatives, such as offering claw crane games that can be played online
and strengthening the use of Group products and services, that only BANDAI NAMCO can offer. Fixed costs incurred during
the temporary closures of facilities etc. in response to the official requests from the national and local governments have beenrecognized under extraordinary loss as “loss on temporary store closures and other related to COVID-19.”
As a result, net sales in the Real Entertainment Business were 42,512 million yen (year-on-year decrease of 38.4%), andsegment loss was 9,743 million yen (segment profit for the same period of the previous fiscal year was 1,154 million yen).

-2-

Visual and Music Production Business
As for the Visual and Music Production Business, although IP related visual and music package software, among others,
including the LoveLive! series and The iDOLM@STER series, continued to be sold, live events were canceled due to the
spread of COVID-19, and releases of visual and music products and the launch of their package software titles were
postponed due to delays in production schedules, among other reasons, which impacted business performance. In responseto these changes in the business environment, we streamed live events without spectators and carried out other new initiatives
for live events that are suited to this environment.
As a result, net sales in the Visual and Music Production Business were 16,815 million yen (year-on-year decrease of
46.8%), and segment profit was 245 million yen (year-on-year decrease of 95.6%).
IP Creation Business
As for the IP Creation Business, we stirred up public attention by producing video works such as the Mobile Suit Gundam
series and the LoveLive! series, and disseminating information on IP from GUNDAM FACTORY YOKOHAMA, leading tothose series gaining popularity. In addition, because SOTSU CO., LTD., which became a consolidated subsidiary of theCompany in the previous fiscal year, belonged to this business unit in the first quarter of the fiscal year ending March 31,
2021, goodwill was amortized despite recording the revenue of said company.
As a result, net sales in the IP Creation Business were 16,298 million yen (year-on-year increase of 39.1%), and segment
profit was 2,660 million yen (year-on-year decrease of 24.3%).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kinds ofadministration and operational support for each of the Group companies. We are making efforts to manage such operations
related to group support in an efficient manner.
Net sales in the Other Businesses were 25,244 million yen (year-on-year increase of 7.2%), and segment profit was 1,500
million yen (year-on-year increase of 9.8%).
(2) Explanation Regarding Financial Position
At the end of the third quarter of the fiscal year ending March 31, 2021, total assets stood at 718,715 million yen, an
increase of 98,895 million yen from the end of the previous fiscal year. The main factors were increases of 30,969 million
yen in trade receivables, 28,443 million yen in investment securities, and 20,898 million yen in work in process.
Total liabilities amounted to 230,596 million yen, an increase of 65,460 million yen from the end of the previous fiscal
year. The main factors were increases of 20,012 million yen in long-term loans payable and 19,911 million yen in short-termloans payable.
Total net assets stood at 488,118 million yen, an increase of 33,434 million yen from the end of the previous fiscal year.
The main factors were increases of 21,414 million yen in retained earnings mainly due to the recording of 50,634 million
yen in profit attributable to owners of parent despite cash dividends paid of 29,220 million yen, and 15,854 million yen invaluation difference on available-for-sale securities, net of tax.
As a result, the equity ratio became 67.8% compared with 72.5% 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 countries around the world due to the impact of the spreadof COVID-19 on society, the overall economy, people’s daily lives and consumption. Furthermore, we expect the changes
occurring in the market environment and in user preferences to become more extreme.
Under these circumstances, the Group will continue carrying out initiatives to prevent the spread of COVID-19, giving
the highest priority to the safety of our stakeholders, including employees and their families, and customers. Moreover, as amember of society, we wish to respond to the requests from society and our customers under our Group’s mission to offer“Dreams, Fun and Inspiration” to people around the world through products and services. On the business front, the Groupis working to minimize the impact that the spread of COVID-19 is having on society, the overall economy, people’s daily
lives and consumption, and the impact from the change in the market environment and user preferences, by continuing tocollect information and take flexible countermeasures.
The Company has revised its consolidated projections for the full fiscal year ending March 31, 2021 to reflect the actual
results for the third quarter (nine months) of the fiscal year ending March 31, 2021, the current trends of its businesses, themarketing plans of the products and services scheduled in the fourth quarter, and the business environment affected by thecontinued spread of COVID-19. In addition to these factors, the Company expects to record extraordinary loss ofapproximately 13.0 billion yen in the fourth quarter for expenses associated with the business structure reform of the Real-3-

Entertainment Business, which has been heavily impacted by the spread of COVID-19. Accordingly, the Company has
revised the projections announced on August 7, 2020 as shown in the table below. In the Real Entertainment Business, theCompany will build a strong business foundation that can generate profits even in an uncertain business environment throughconducting selection and concentration into business development that utilizes the Group’s resources and knowhow, andcooperating with each business of the group even more.
* For your reference, we are experiencing or expect to experience the following impacts on business operations from the
spread of COVID-19.
• Impact on consumption due to factors including the closure of sales outlets• Postponement or cancellation of events and an associated impact on promotion• Impact on the development schedule of products• Impact on the production schedule of the Group’s factories and other cooperating factories• Impact on the development schedule of home video games and network content and on operation systems• Impact from the closure of amusement facilities• Impact on the schedules or releases of visual productions and package launch scheduled
Revisions to consolidated projections for the full fiscal year ending March 31, 2021
(April 1, 2020 to March 31, 2021)
Profitattributable toowners of parent(¥ million)

Basicearnings per
share
(¥)

Net sales

Operating profit

Recurring profit(¥ million)(¥ million)(¥ million)

Previous projections (A)650,000

50,00050,50033,000150.23

Revised projections (B)720,000

72,00074,00036,000163.88Change in amount (B-A)

70,00022,00023,500

3,000

–

10.8

44.0

46.5

9.1

–

723,989

78,77579,797

57,665262.39Change (%)(Reference)
Results for the previous fiscal year
(Fiscal year ended March 31, 2020)-4-

2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2020)

Current 3rd Quarter(As of December 31, 2020)

AssetsCurrent assets
Cash and time deposits

189,856

181,063

Trade receivables

83,754

114,724

Finished goods and merchandise

22,282

27,863Work in process

51,09871,997

Raw materials and supplies

3,409

4,801

Other current assets

34,65850,490Allowance for doubtful receivables(1,398)(1,653)

Total current assets

383,662449,287

96,90699,161

Goodwill

15,704

17,588Other intangible assets

11,718

14,959Total intangible assets

27,42332,548Investment securities

66,453

94,896

Other investments and assets

45,80743,251

Allowance for doubtful receivables

(432)

(431)

Total investments and other assets

111,827

137,716

236,157

269,427

619,819

718,715

Fixed assets
Property, plant and equipment
Intangible assets

Investments and other assets

Total fixed assets
Total assets-5-(¥ million)
Prior Fiscal Year(As of March 31, 2020)

Current 3rd Quarter(As of December 31, 2020)

Liabilities
Current liabilities
Trade payables

70,16980,758946

20,858Provision

3,892

2,918

Other current liabilities

67,49881,335

Total current liabilities

142,506

185,870

171

20,183

Short-term loans payable

Long-term liabilities
Long-term loans payable
Net defined benefit liability

9,840

8,309

Other long-term liabilities

12,616

16,233

Total long-term liabilities

22,62844,726

165,135

230,596

Common stock

10,00010,000Capital surplus

Total liabilities
Net assets
Stockholders’ equity

52,00452,226

Retained earnings

394,699

416,113

Treasury stock(3,634)(3,904)

Total stockholders’ equity

453,069

474,435

16,83732,691250(152)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities, net oftax
Deferred gains or losses on hedges, net of tax
Revaluation reserve for land, net of tax(3,902)(3,902)Foreign currency translation adjustments(12,321)(11,694)

Remeasurements of defined benefit plans, net of tax(4,639)(4,104)

Total accumulated other comprehensive income(3,776)

12,837

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

-6-

5,392

846

454,684

488,118

619,819

718,715

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 3rd Quarter(From April 1, 2019
to December 31, 2019)532,576

Current 3rd Quarter(From April 1, 2020
to December 31, 2020)
543,456

Cost of sales

328,646

334,608

Gross profit

203,930

208,848

Selling, general and administrative expenses

131,834

135,925

Operating profit

72,09672,922

Net sales

Non-operating income
Dividend income

644

1,219

Other non-operating income

1,636

1,354

Total non-operating income

2,280

2,573

Interest expense

69

156

Foreign exchange losses

817

116

Non-operating expenses

Other non-operating expenses

57

78

Total non-operating expenses

945

351

73,43175,144

1,722

–
1,078

Recurring profit
Extraordinary income
Gain on step acquisitions
Subsidies for employment adjustment and other related to
COVID-19–

Other extraordinary income

32

402

Total extraordinary income

1,754

1,481

304

1,930

–

2,579

Other extraordinary loss

546

635

Total extraordinary loss

850

5,145

Profit before income taxes

74,33571,480

Income taxes

21,38820,914

Profit52,94650,56642(68)

52,90450,634Extraordinary loss
Loss on impairment of fixed assets
Loss on temporary store closures and other related to
COVID-19

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-7-

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 3rd Quarter(From April 1, 2019
to December 31, 2019)
ProfitCurrent 3rd Quarter(From April 1, 2020
to December 31, 2020)

52,94650,566

3,501

15,743

Deferred gains or losses on hedges, net of tax

94

(402)

Revaluation reserve for land, net of tax

682–

Foreign currency translation adjustments

Other comprehensive income
Valuation difference on available-for-sale securities, net oftax(1,343)604

Remeasurements of defined benefit plans, net of tax

474

535

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

70

170

3,480

16,651

56,427

67,21756,184

67,248242(31)

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests-8-

(3) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.

(Notes on Significant Changes in the Amount of Stockholders’ 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 third quarter, and next by multiplying the profit before
income taxes by such estimated effective tax rate.

(Segment Information)
I. Prior 3rd Quarter (From April 1, 2019 to December 31, 2019)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Adjustments(Note 2)

Consolidated
Total(Note 3)

532,576–

532,576

16,60236,331(36,331)–545,365

23,543568,908(36,331) 532,576

75,451

1,367

76,819(4,722)

Network
Real
Visual andToys andIP
Entertain- Entertain- Music
Hobby
Creationmentment Production
Business
Business
Business Business Business

Subtotal

194,718

228,362

68,486

26,378

7,689Inter-segment sales
and transfers

6,262

3,672

536

5,233

Total

200,981

232,034

69,022

Segment profit

28,69936,485

1,154

Other
(Note 1)

Total

525,635

6,940

4,024

19,72931,611

11,714

5,596

3,515

Net sales
To externalcustomers

Notes: 1.

72,096The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group companies are classified.

2.

Included in the 4,722 million yen deducted from segment profit as adjustment are an addition of 357 million yen
in inter-segment eliminations, and a deduction of 5,079 million yen in corporate expenses that cannot be allocatedto 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)
In “Other” segment, SOTSU CO., LTD., an affiliate of the Company to which the equity-method is applicable,
became a subsidiary as a result of the additional acquisition of its shares, and said company was included in thescope of consolidation from the third quarter of the fiscal year ended March 31, 2020.

-9-

An increase in goodwill of 14,355 million yen was recognized by this event. The amount of goodwill is calculated
on a provisional basis because the allocation of acquisition cost has not been completed at the end of the third quarterof the fiscal year ended March 31, 2020.
(Material gains on negative goodwill)
Not applicable.

- 10 -

II. Current 3rd Quarter (From April 1, 2020 to December 31, 2020)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Adjustments(Note 2)

Consolidated
Total(Note 3)

543,456–

543,456

17,74836,796(36,796)–555,00925,244580,253(36,796) 543,456

76,4601,500

77,961(5,038)

Network
Real
Visual andToys andIP
Entertain- Entertain- Music
Hobby
Creationmentment Production
Business
Business
Business Business Business

Other(Note 1)

Subtotal

Total

214,641

256,240

41,80315,001

8,274

535,9607,496Inter-segment sales
and transfers

6,314

2,186

708

1,814

8,023

19,048

Total

220,956

258,427

42,512

16,815

16,298Segment profit (loss)

35,55047,746(9,743)

245

2,660

Net sales
To externalcustomers

Notes: 1.

72,922The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group companies are classified.

2.

Included in the 5,038 million yen deducted from segment profit (loss) as adjustment are a deduction of 202 million
yen in inter-segment eliminations, and a deduction of 4,835 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration divisionthat has not been attributed to a reportable segment.

3.

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

2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)In the IP Creation Business, goodwill increased 3,676 million yen due to the acquisition of additional shares of
SOTSU CO., LTD., a consolidated subsidiary of the Company.
(Material gains on negative goodwill)
Not applicable.
3. Information regarding changes to reportable segments, etc.
Effective the first quarter of the fiscal year ending March 31, 2021, the classification of SOTSU CO., LTD., which
previously was classified as a business belonging to the Other segment, was changed to a business belonging to the IP
Creation Business in order to strengthen the IP Axis Strategy.
Although SOTSU CO., LTD. changed from being an associate accounted for using the equity method to a
consolidated subsidiary in the previous fiscal year, because the deemed acquisition date is November 30, 2019 and it
does not differ by more than three months from the quarterly consolidated closing date, only the balance sheets for thethird quarter (nine months) of the fiscal year ended March 31, 2020 are consolidated.

- 11 -

(Significant Subsequent Events)(Change to reportable segments)
The Group will reorganize the structure based on Units comprising operating companies in April 2021 from its current
five Unit structure to a three Unit structure ahead of the start of the next Mid-term Plan from April 2022.
•

The Toys and Hobby Unit and Network Entertainment Unit will be combined to form the Entertainment Unit. BANDAI
NAMCO Entertainment Inc. will be responsible for the Digital Business (network content, home video games, etc.) andBANDAI CO., LTD. will be responsible for the Toys and Hobby Business (toys, plastic models, etc.) as the respective
business management companies, and both companies will be responsible for the overall Unit in coordination with eachother.

•The Visual and Music Production Unit and the IP Creation Unit will be combined to form the IP Production Unit.
BANDAI NAMCO Arts Inc. will be responsible for the Visual and Music Business (visual and music content, live
entertainment, etc.) and SUNRISE INC. will be responsible for the Creation Business (animation production, etc.) as
the respective business management companies, and both companies will be responsible for the overall Unit incoordination with each other.

•

The Real Entertainment Unit will change its name to the Amusement Unit. BANDAI NAMCO Amusement Inc. will be
responsible for the business as a business management company.

•

The Company will also review the Units to which Group companies belong.
In conjunction with this organizational restructure, effective from the following fiscal year, the reportable segments will

be changed from the Toys and Hobby Business, Network Entertainment Business, Real Entertainment Business, Visual andMusic Production Business, and IP Creation Business to the Digital Business, Toys and Hobby Business, Visual and Music
Business, Creation Business, and Amusement Business.
Information regarding the amounts of net sales and profit/loss by reportable segment for the third quarter (nine months)of the fiscal year ending March 31, 2021, assuming the classification of its reportable segments after the organizationalchange is as follows.

Current 3rd Quarter (From April 1, 2020 to December 31, 2020)(¥ million)
Reportable segments
Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

DigitalBusiness

Toys and Visual andAmuseCreation
Hobby
Music
ment
Business
Business BusinessBusiness

Subtotal

251,958

217,867

19,2838,274

41,803539,186

4,270

543,456–

543,456

Inter-segment sales
and transfers

2,141

6,707

1,830

8,023

708

19,412

14,01533,427(33,427)–

Total

254,099

224,574

21,114

16,29842,512558,598

18,286

576,884(33,427) 543,456

Segment profit (loss)

47,35036,197640

2,660(9,743)

77,105856

77,962(5,039)Net sales
To externalcustomers

Notes: 1.

72,922The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services for each Unit of the Group are classified.

2.

Included in the 5,039 million yen deducted from segment profit (loss) as adjustment are a deduction of 204 million
yen in inter-segment eliminations, and a deduction of 4,835 million yen in corporate expenses that cannot be- 12 -

allocated to any reportable segment. The corporate expenses are mainly costs related to the administration divisionthat has not been attributed to a reportable segment.
3.

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

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