Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2019

February 6, 2019DISCLAIMER- 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: http://www.bandainamco.co.jp/)
February 6, 2019

Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2019 (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 13, 2019
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, 2019
(April 1, 2018 to December 31, 2018)(1) Consolidated Operating Results (For the Nine Months Ended December 31, 2018)

Third Quarter of the Fiscal YearEnding March 31, 2019
Third Quarter of the Fiscal Year
Ended March 31, 2018

Net sales¥ million
528,763%9.4

483,180

5.2

Profit attributable toowners of parent¥ million%
53,501
30.9(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
69,85530.7
71,45530.6
53,462(11.1)

Basic earnings per share

54,730(9.6)

Diluted earnings per share¥
Third Quarter of the Fiscal Year
243.43Ending March 31, 2019
Third Quarter of the Fiscal Year40,878(12.1)
186.08Ended March 31, 2018
(Note) Comprehensive income: 54,325 million yen [9.7%] (FY2019.3 3Q), 49,538 million yen [1.5%] (FY2018.3 3Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of December 31, 2018568,338
413,455
72.7
As of March 31, 2018
540,490387,354
71.5(Reference) Equity: 413,357 million yen (as of December 31, 2018), 386,556 million yen (as of March 31, 2018)¥–
186.02

2. Cash Dividends
End offirst quarterEnd ofsecond quarter¥12.00¥18.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥111.00–¥105.00

Total

Fiscal Year Ended March 31, 2018–¥123.00
Fiscal Year Ending March 31, 2019–
Fiscal Year Ending March 31, 2019¥123.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2019: 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, 2019” announced today (February 6, 2019).
3. Consolidated Projections for the Fiscal Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019)(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
710,000
4.7
75,000(0.0)
76,0000.8
54,000(0.2)
245.70(Note) Revision to the projections: Yes
Consolidated projections for the full fiscal year ending March 31, 2019 (announced on May 9, 2018) are revised in thisdocument.
For details of the revisions to the consolidated projections, please refer to “Notice Regarding Revisions to Consolidated
Projections” announced today (February 6, 2019).
* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): Yes
Included: 2 companies (BANDAI NAMCO Collectibles LLC, BANDAI NAMCO Content Fund LLP)
(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 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 revisions 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)
222,000,000 shares
As of December 31, 2018
222,000,000 shares
As of March 31, 2018b) Number of shares of treasury stock at the end of the period
As of December 31, 2018
2,209,261 shares
2,239,901 shares
As of March 31, 2018c) 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, 2019219,778,487 shares
219,686,617 shares
For the Third Quarter of the Fiscal Year Ended March 31, 2018
* 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 Third 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 6, 2019.

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) ....................................................................................................................................................... 9-1-

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, 2019, the economy continued to moderately
recover both in Japan and overseas. However, the outlook for the overall economy remained uncertain.
In this environment, the BANDAI NAMCO Group (“the Group”) has started a three-year Mid-term Plan in April 2018,
under the Mid-term Vision of “CHANGE for the NEXT: Empower, Gain Momentum, and Accelerate Evolution,” whichreflects our aspiration to achieve changes in all aspects to progress to a next stage rather than being bound by previous
business models and established ideas. Aiming for medium- and long-term growth, the Group has been promoting a range ofmeasures. As one of these initiatives, we have 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 best products and services at the best possible times. These measures also
include an initiative to strengthen development in regions and businesses with high growth potential and an initiative torealize the total capabilities of the Group in regions around the world under the ALL BANDAI NAMCO concept.
During the third quarter (nine months), the key IP and products and services in each business segment performed
favorably.
Consequently, the Group’s consolidated results for the third quarter (nine months) were net sales of 528,763 million yen(year-on-year increase of 9.4%), operating profit of 69,855 million yen (year-on-year increase of 30.7%), recurring profit of
71,455 million yen (year-on-year increase of 30.6%), and profit attributable to owners of parent of 53,501 million yen (yearon- year increase of 30.9%).
Operating results by segment are as follows.
Effective from the first quarter ended June 30, 2018, the Group changed the classification of its reportable segments.
Consequently, in year-on-year comparisons the figures for the same period of the previous fiscal year shown below havebeen restated into the figures for the classifications after the change.
Toys and Hobby Business
As for the Toys and Hobby Business, in Japan and overseas, products for the mature fan base such as plastic models of
the Mobile Suit Gundam series and collectible figures and card related products for DRAGON BALL and other series gainedin popularity. In Japan, products for the mature fan base performed favorably, along with long-established IP products suchas the DRAGON BALL series, the KAMEN RIDER series, and the PRETTY CURE! series. Overseas, in the Asian region,
products of the Mobile Suit Gundam series and ULTRAMAN series, and other products gained in popularity, and we took
steps to strengthen business development in the Chinese market. In Americas and Europe, we continued with the roll-out of
products for the mature fan base, such as collectible figures and card products of DRAGON BALL series.
As a result, net sales in the Toys and Hobby Business were 183,963 million yen (year-on-year increase of 11.9%), andsegment profit was 22,099 million yen (year-on-year increase of 66.3%).
Network Entertainment Business
As for the Network Entertainment Business, in network content, key titles being distributed worldwide such as DRAGONBALL Z DOKKAN BATTLE and ONE PIECE Treasure Cruise, and in Japan, key titles such as The iDOLM@STER seriescontinued to perform stably due to ongoing measures targeting users, while DRAGON BALL LEGENDS made a strong start.
We also undertook initiatives to create new services, such as starting up a new platform. In home video games, sales of the
new title SOULCALIBUR VI for worldwide distribution made a smooth start, while repeat sales of existing titles and sales ofmainly new titles in Japan were favorable.
As a result, net sales in the Network Entertainment Business were 238,517 million yen (year-on-year increase of 4.6%),
and segment profit was 35,383 million yen (year-on-year increase of 7.6%).
Real Entertainment Business
As for the Real Entertainment Business, in regard to arcade games, sales of the new series MOBILE SUIT GUNDAM
EXTREME VS. and other games were favorable. In amusement facilities, performance in existing domestic stores did notreach the level seen in the same period of the previous fiscal year; however, with the opening of stores in new businessformats providing spaces to enjoy experiences that are unique to the Group, among other initiatives, overall performance wasfavorable.
As a result, net sales in the Real Entertainment Business were 75,130 million yen (year-on-year increase of 14.2%), andsegment profit was 4,145 million yen (year-on-year increase of 147.1%).

-2-

Visual and Music Production Business
As for the Visual and Music Production Business, products such as visual and music package software of LoveLive!
Sunshine!! and The iDOLM@STER series gained in popularity. Meanwhile, IP live events such as IDOLiSH 7 and associatedproduct sales performed favorably.
As a result, net sales in the Visual and Music Production Business were 31,627 million yen (year-on-year increase of
20.6%), and segment profit was 7,241 million yen (year-on-year increase of 59.6%).
IP Creation Business
As for the IP Creation Business, the TV program and movie of the Mobile Suit Gundam series and the TV program of
the Aikatsu! series were broadcasted/launched, and they all gained popularity. In addition, we built up public interest in
related IP ahead of the new movie release of LoveLive! Sunshine!!. In other initiatives, we took steps to strengthen our
structure and create new products with a view to enhancing IP creation.
As a result, net sales in the IP Creation Business were 14,867 million yen (year-on-year increase of 18.8%), and segment
profit was 3,562 million yen (year-on-year decrease of 9.0%).
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 Business were 22,572 million yen (year-on-year increase of 11.5%), and segment profit was 1,024
million yen (year-on-year increase of 24.7%).
(2) Explanation Regarding Financial Position
At the end of the third quarter of the fiscal year ending March 31, 2019, total assets stood at 568,338 million yen, an
increase of 27,848 million yen from the end of the previous fiscal year. The main factors were increases of 6,897 million yen
in trade receivables, 5,427 million yen in finished goods and merchandise, 9,367 million yen in work in process, and 7,444
million yen in investment securities, despite a decrease of 14,030 million yen in cash and time deposits mainly due to cash
dividends paid and the purchases of investment securities.
Total liabilities amounted to 154,883 million yen, an increase of 1,747 million yen from the end of the previous fiscal
year. The main factor was an increase of 4,115 million yen in other current liabilities mainly due to an increase in deposits
received, despite decreases of 1,781 million yen in trade payables, and 816 million yen in accrued income taxes.
Total net assets stood at 413,455 million yen, an increase of 26,100 million yen from the end of the previous fiscal year.
The main factors were increases of 25,134 million yen in retained earnings due to the recording of 53,501 million yen in
profit attributable to owners of parent despite cash dividends paid of 28,366 million yen, and 1,922 million yen in valuationdifference on available-for-sale securities, net of tax.
As a result, the equity ratio became 72.7% compared with 71.5% at the end of the previous fiscal year.
(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, in the first year of our three-year Mid-term Plan, which started in April 2018, we will move ahead withmeasures under our main strategies—the IP axis strategy, business strategy, region strategy, and personnel strategy. By
implementing these main strategies, we aim to further strengthen the Group’s business foundation and achieve growth inglobal markets.
For the consolidated projections for the full fiscal year ending March 31, 2019, the consolidated projections announced
on May 9, 2018 have been revised as stated in the table below in light of the actual results for the third quarter (nine months)of the fiscal year ending March 31, 2019, the marketing plans of the products and services scheduled in the fourth quarter,
etc.

-3-

Revisions to consolidated projections for the fiscal year ending March 31, 2019
(April 1, 2018 to March 31, 2019)
Operating profit

Recurring profit(¥ million)
650,000
710,000
60,0009.2(¥ million)
60,00075,00015,00025.0(¥ million)
61,00076,00015,000
24.6

Profitattributable toowners of parent(¥ million)
43,00054,00011,00025.6

678,31275,02475,38054,109Net sales

Previous projections (A)Revised projections (B)Change in amount (B-A)
Change (%)(Reference)
Results for the previous
fiscal year (The full fiscal
year ended March 31, 2018)-4-

Basic earnings
per share¥
195.65245.70––246.29

2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2018)

Current 3rd quarter(As of December 31, 2018)

AssetsCurrent assets
Cash and time deposits

185,517

171,487

Trade receivables

88,061

94,958Finished goods and merchandise

14,78020,207Work in process

37,68447,052

Raw materials and supplies

3,216

4,047

Other current assets

22,52928,944

Allowance for doubtful receivables(1,172)(1,400)Total current assets

350,618

365,298

Fixed assets
Property, plant and equipment

86,10490,027

Intangible assets

9,475

10,278Investments and other assets
Investment securities

56,49563,940

Other investments and assets

39,191

40,586

Allowance for doubtful receivables(1,394)(1,791)

Total investments and other assets

94,292

102,734

189,872

203,040

540,490568,338

Total fixed assets
Total assets-5-(¥ million)
Prior Fiscal Year(As of March 31, 2018)

Current 3rd quarter(As of December 31, 2018)

Liabilities
Current liabilities
Trade payables

69,55567,773

Accrued income taxes

8,597

7,781

Provision

4,085

3,402

Other current liabilities

53,96458,079Total current liabilities

136,202

137,037

Net defined benefit liability

8,485

8,358

Other long-term liabilities

8,447

9,488

Long-term liabilities

Total long-term liabilities

16,933

17,846

153,135

154,883

Common stock

10,00010,000Additional paid-in capital

52,19652,308Retained earnings

334,264359,398

Total liabilities
Net assets
Stockholders’ equity

Treasury stock(2,326)(2,297)

Total stockholders’ equity

394,133

419,410

11,696

13,618

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

(300)

(200)

Revaluation reserve for land, net of tax(5,887)(5,887)

Foreign currency translation adjustments(8,330)(9,218)Remeasurements of defined benefit plans, net of tax(4,756)(4,365)

Total accumulated other comprehensive income(7,577)(6,052)797

98

387,354

413,455

540,490568,338

Non-controlling interests
Total net assets
Total liabilities and net assets-6-

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 3rd quarter(From April 1, 2017
to December 31, 2017)

Current 3rd quarter(From April 1, 2018
to December 31, 2018)

Net sales

483,180

528,763

Cost of sales

311,687

332,945

Gross profit

171,493

195,818

Selling, general and administrative expenses

118,031

125,963

Operating profit

53,462

69,855

313

563

–

764

Other non-operating income

2,213

1,331

Total non-operating income

2,527

2,659

Provision of allowance for doubtful accounts

972

853

Other non-operating expenses

286

205

Non-operating income
Dividend income
Gain on valuation of derivatives

Non-operating expenses

Total non-operating expenses
Recurring profit

1,259

1,059

54,73071,45553

192

Extraordinary income
Gain on sales of fixed assets
Gain on sales of investment securities

1

231

Total extraordinary income

54

424

Loss on impairment of fixed assets

756

376

Loss on disposal of fixed assets

121

223

Other extraordinary loss

380

243

Extraordinary loss

Total extraordinary loss

1,258

843

Profit before income taxes

53,52571,036

Income taxes

12,83018,235

Profit40,69552,801

(183)

(699)

40,87853,501

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, 2017
to December 31, 2017)
ProfitCurrent 3rd quarter(From April 1, 2018
to December 31, 2018)

40,69552,801

4,927

2,139

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

(179)

99

Foreign currency translation adjustments

3,497

(888)

Remeasurements of defined benefit plans, net of tax

387

390

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

209

(217)

Total other comprehensive income
Comprehensive income

8,842

1,524

49,53854,32549,72155,025

(183)

(699)

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, 2017 to December 31, 2017)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

6,971

483,180–

483,180

20,787

13,264

34,051(34,051)–

12,515496,996

20,235517,232(34,051) 483,180

3,915

56,307821

57,129(3,667)

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

Subtotal

To external customers

158,000

223,007

64,99722,421

7,781

Inter-segment sales
and transfers

6,375

5,119

763

3,794

Total

164,376

228,127

65,761

Segment profit

13,28632,889

1,677

Other
(Note 1)

476,209

4,733

26,215
4,537

Net sales

Notes: 1.

53,462The “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 3,667 million yen deducted from segment profit as adjustment are an addition of 589 million yen
in inter-segment eliminations, and a deduction of 4,256 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)
Not applicable.
(Material gains on negative goodwill)
Not applicable.

-9-II. Current 3rd quarter (From April 1, 2018 to December 31, 2018)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

7,096

528,763–528,763

22,44015,47637,917(37,917)–

14,867544,107

22,572566,680(37,917) 528,763

3,562

72,433

1,024

73,458(3,603)

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

Subtotal

To external customers

177,671

232,937

74,29026,074

10,692

Inter-segment sales
and transfers

6,292

5,579

840

5,553

Total

183,963

238,51775,130

Segment profit

22,09935,383

4,145

Other
(Note 1)

521,667

4,175

31,627
7,241

Net sales

Notes: 1.

69,855The “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 3,603 million yen deducted from segment profit as adjustment are an addition of 547 million yen
in inter-segment eliminations, and a deduction of 4,150 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 changes to reportable segments, etc.
Effective from the first quarter ended June 30, 2018, the Group has changed its organizational structure to promote
the advancement of each of the strategies of the Mid-term Plan. The name of the units of aggregated businesscompanies that are to execute the respective business strategies has been changed from “SBUs” (Strategic Business
Units) to “Units.” In addition, to enable swifter advancement of the main strategies for each mission stated in the Midterm Plan, the Group has shifted from its previous three-SBU structure to a five-Unit structure.
In conjunction with this organizational restructure, effective from the first quarter ended June 30, 2018, thereportable segments have been changed from the Toys and Hobby Business, Network Entertainment Business, andthe Visual and Music Production Business to the Toys and Hobby Business, Network Entertainment Business, RealEntertainment Business, Visual and Music Production Business, and IP Creation Business.
Segment information of the previous third quarter (nine months) is prepared and disclosed based on the reportablesegment classifications after the change.
3. 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.

- 10 -