Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2018

February 9, 2018DISCLAIMER- 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 9, 2018

Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2018 (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, 2018
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, 2018
(April 1, 2017 to December 31, 2017)(1) Consolidated Operating Results (For the Nine Months Ended December 31, 2017)

Third Quarter of the Fiscal YearEnding March 31, 2018
Third Quarter of the Fiscal Year
Ended March 31, 2017

Net sales¥ million
483,180%
5.2

459,103

8.0

Profit attributable toowners of parent¥ million%
40,878(12.1)(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
53,462 (11.1)
54,730(9.6)
60,16032.9

Basic earnings per share

60,53928.3

Diluted earnings per share¥¥
Third Quarter of the Fiscal Year
186.08186.02Ending March 31, 2018
Third Quarter of the Fiscal Year
46,50334.3
211.69211.63
Ended March 31, 2017
(Note) Comprehensive income: 49,538 million yen [1.5%] (FY2018.3 3Q), 48,794 million yen [40.4%] (FY2017.3 3Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of December 31, 2017
513,176
380,865
74.0
As of March 31, 2017
488,032
348,784
71.3(Reference) Equity: 379,930 million yen (as of December 31, 2017), 348,106 million yen (as of March 31, 2017)

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

Annual cash dividends
End ofFiscalthird quarteryear-end–¥70.00–¥83.00

Total

Fiscal Year Ended March 31, 2017–¥82.00Fiscal Year Ending March 31, 2018–
Fiscal Year Ending March 31, 2018¥95.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2018: Yes
For details of the revisions to the projection of cash dividend, please refer to “Notice Regarding Change in the Basic Policy for
Providing Returns to Shareholders and Revision to Projection of Cash Dividend for the Fiscal Year Ending March 31, 2018”
announced today (February 9, 2018).
3. Consolidated Projections for the Fiscal Year Ending March 31, 2018 (April 1, 2017 to March 31, 2018)(Percentages indicate year-on-year changes.)
Basic earnings
Net sales
OperatingRecurring
Profit attributable
per share
profitprofitto ownersof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
630,000
1.6
57,000(9.9)
58,000(8.4)
41,500(6.0)
188.90(Note) Revision to the projections: Yes
Consolidated projections for the full fiscal year ending March 31, 2018 (announced on August 4, 2017) 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 9, 2018).
* 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 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)
As of December 31, 2017
222,000,000 shares
222,000,000 shares
As of March 31, 2017b) Number of shares of treasury stock at the end of the period
2,299,541 shares
As of December 31, 2017
As of March 31, 2017
2,334,579 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
219,686,617 shares
For the Third Quarter of the Fiscal Year Ending March 31, 2018
For the Third Quarter of the Fiscal Year Ended March 31, 2017219,674,045 shares* Quarterly Consolidated Financial Reports are not required to be subjected to quarterly reviews.
* 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 9, 2018.

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) ...................................................................................................................................... 11-1-

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, 2018, the Japanese economy continued tomoderately recover, supported mainly by a recovery in personal consumption and improved corporate profitability.
However, the outlook for the overall economy remained uncertain. Overseas, personal consumption was steady, but
impacted by uncertainty due to social instability and other factors.
In this environment, the BANDAI NAMCO Group (“the Group”) has been pushing ahead with the three-year Mid-term
Plan that started in April 2015. Targeting medium- and long-term growth under the Vision of “NEXT STAGE: Empower,
Gain Momentum and Accelerate Evolution,” the Group has focused on creating and cultivating new IP (Intellectual
Property: meaning characters and other intellectual property), expanding target markets, and growing new businesses aspart of efforts to strengthen the “IP Axis Strategy” that aims to maximize IP value through the provision of the bestproducts and services at the best possible times. The Group also worked to expand its IP lineup, business fields and areas inoverseas.
In the third quarter (nine months), network content such as game applications for smartphones performed well in Japanand overseas. Key IP products and services in each business segment also performed favorably. Although net sales
exceeded those of the same period of the previous fiscal year, profits fell below those of the same period of the previous
fiscal year mainly due to launch timing for products and services and differences in the product mix.
Consequently, the Group’s consolidated results for the third quarter (nine months) were net sales of 483,180 million
yen (year-on-year increase of 5.2%), operating profit of 53,462 million yen (year-on-year decrease of 11.1%), recurring
profit of 54,730 million yen (year-on-year decrease of 9.6%), and profit attributable to owners of parent of 40,878 million
yen (year-on-year decrease of 12.1%).
Operating results by segment are as follows.
Effective from the first quarter ended June 30, 2017, the Group changed the classification of part of its reportablesegments. Consequently, in year-on-year comparisons the figures for the same period of the previous fiscal year have been
restated into the figures for the classifications after the change.
Toys and Hobby Business
As for Toys and Hobby Business, in Japan, long-established IP products such as the KAMEN RIDER series, the Super
Sentai series, and the Dragon Ball series continued to perform well, while products of the Mobile Suit Gundam series
performed steadily, mainly in plastic models. In addition, the Group enhanced efforts to expand its target markets formature fans and implemented measures to strengthen the IP axis strategy by taking steps to expand IP lineup and the like.
Overseas, in the Asian region, products of the Mobile Suit Gundam series and collectable toys for mature fans continued
gaining in popularity. In Americas and Europe, products of the Power Ranger series sold steadily. However, the Toys andHobby Business overall saw earnings decline year on year, mainly due to differences in the product mix.
As a result, net sales in the Toys and Hobby Business were 164,376 million yen (year-on-year decrease of 0.8%), andsegment profit was 13,286 million yen (year-on-year decrease of 13.5%).
Network Entertainment Business
As for the Network Entertainment Business, in network content such as game applications for smartphones, key titles
being distributed worldwide such as DRAGON BALL Z DOKKAN BATTLE and ONE PIECE Treasure Cruise, and, inJapan, key titles such as The iDOLM@STER series continued to perform well and contributed to earnings. In home video
games, the new title TEKKEN 7 became popular mainly in Americas and Europe, and repeat sales of existing titles werefavorable. In the amusement business, the Group’s existing amusement facilities in Japan performed favorably, and theGroup proactively developed machines and opened new facilities utilizing virtual reality (VR) as a new initiative
combining new technology. For the overall business, profits declined year on year, mainly reflecting the launch of new
major titles in home video games that composed a high share of download sales in the corresponding period of the previous
fiscal year, and upfront costs during the third quarter (nine months) of this fiscal year for the amusement business due toaggressive store openings, mainly of VR facilities.
As a result, net sales in the Network Entertainment Business were 285,329 million yen (year-on-year increase of 9.4%),
and segment profit was 33,834 million yen (year-on-year decrease of 5.7%).
Visual and Music Production BusinessIn the Visual and Music Production Business, the Company conducted video and product development linked to newand existing key IP products, such as the Mobile Suit Gundam series, the LoveLive! series, and the GIRLS und PANZER-2-

series, and the developments became popular. Although earnings also saw a contribution from license revenue related to
products such as the LoveLive! series, differences mainly in the launch timing for key products resulted in a year-on-year
decline in earnings for the business overall.
As a result, net sales in the Visual and Music Production Business were 37,872 million yen (year-on-year decrease of
7.6%), and segment profit was 9,076 million yen (year-on-year decrease of 23.9%).
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’s strategic business units: Toys and Hobby SBU, Network
Entertainment SBU, and Visual and Music Production SBU. We are making efforts to manage such operations related togroup support in an efficient manner.
As a result, net sales in the Other Businesses were 20,235 million yen (year-on-year increase of 0.1%), and segment
profit was 821 million yen (year-on-year decrease of 32.0%).
(2) Explanation Regarding Financial Position
At the end of the third quarter of the fiscal year ending March 31, 2018, total assets stood at 513,176 million yen, an
increase of 25,143 million yen from the end of the previous fiscal year. The main factors were increases of 12,619 million
yen in trade receivables, 11,233 million yen in work in process, 35,567 million yen in property, plant and equipment
mainly due to the acquisition of land, and 18,163 million yen in investment securities, despite a decrease of 52,702 million
yen in cash and time deposits mainly due to the acquisition of land, cash dividends paid, and the purchases of investment
securities.
Total liabilities amounted to 132,310 million yen, a decrease of 6,937 million yen from the end of the previous fiscal
year. The main factor was a decrease of 7,712 million yen in other current liabilities due to decreases in accrued income
taxes and accounts payable-other.
Total net assets stood at 380,865 million yen, an increase of 32,081 million yen from the end of the previous fiscal year.
The main factors were increases of 23,020 million yen in retained earnings due to the recording of 40,878 million yen in
profit attributable to owners of parent, and 5,137 million yen in unrealized gains or losses on other securities, net of tax,
despite cash dividends paid of 18,023 million yen.
As a result, the equity ratio became 74.0% compared with 71.3% at the end of the previous fiscal year.
(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Regarding the consolidated projections for the fiscal year ending March 31, 2018, after close scrutiny in light of theactual results for the third quarter (nine months) of the fiscal year ending March 31, 2018, recent business trends of eachbusiness segment, and the strong performance of the Network Entertainment Business’s network content in Japan andoverseas, etc., the consolidated projections for the full fiscal year are expected to exceed the consolidated projections
announced on August 4, 2017. As such, the consolidated projections have been revised as stated in the table below.
In April 2018, the Group will start a three-year new Mid-term Plan. Under the Mid-term Vision of “CHANGE for the
NEXT: Empower, Gain Momentum, and Accelerate Evolution,” the new Mid-term Plan will aim to evolve the IP axis
strategy further and achieve penetration and expansion in global markets. At the same time, we will also strengthen
development in regions and businesses with high growth potential. Under the “IP Axis Strategy,” we will drive creation of
new IP and regionally oriented strategies by unifying the efforts in each region under the ALL BANDAI NAMCO concept.
For more details, please refer to the “Mid-term Plan of the BANDAI NAMCO Group (From April 2018 to March 2021)”
announced today (February 9, 2018).

-3-

Revisions to consolidated projections for the fiscal year ending March 31, 2018
(April 1, 2017 to March 31, 2018)
Operating profit

Recurring profit(¥ million)
620,000
630,000
10,0001.6(¥ million)
57,00057,0000
0.0(¥ million)
58,00058,0000
0.0

Profitattributable toowners of parent(¥ million)
40,00041,5001,500
3.8

620,061

63,23863,29044,159Net 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, 2017)-4-

Basic earnings
per share¥
182.07188.90––201.03

2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2017)

Current 3rd quarter(As of December 31, 2017)

AssetsCurrent assets
Cash and time deposits

205,516

152,814

Trade receivables

75,51988,138Finished goods and merchandise

14,466

16,664Work in process

28,82340,057

Raw materials and supplies

3,398

4,016

Other current assets

30,512

32,915

(453)

(910)

357,782

333,695

Property, plant and equipment

52,18487,752Intangible assets

9,686

9,341

Investment securities

39,20257,366

Other investments and assets

30,837

26,760Allowance for doubtful receivables(1,662)(1,740)Total investments and other assets

68,37882,386130,249

179,480

488,032

513,176

Allowance for doubtful receivables
Total current assets
Fixed assets

Investments and other assets

Total fixed assets
Total assets-5-(¥ million)
Prior Fiscal Year(As of March 31, 2017)

Current 3rd quarter(As of December 31, 2017)

Liabilities
Current liabilities
Trade payables

64,17364,715

Provision

3,463

2,883

Other current liabilities

58,47350,761

Total current liabilities

126,110

118,360

Net defined benefit liability

5,766

5,622

Other long-term liabilities

7,371

8,327

Total long-term liabilities

13,138

13,950139,248

132,310

10,00010,000Long-term liabilities

Total liabilities
Net assets
Stockholders’ equity
Common stock
Additional paid-in capital

52,064

52,164Retained earnings

297,984

321,005

Treasury stock(2,423)(2,389)Total stockholders’ equity

357,626

380,781

7,884

13,022

Accumulated other comprehensive income
Unrealized gains or losses on other securities, net of tax
Deferred gains or losses on hedges, net of tax

210

30

Revaluation reserve for land, net of tax(5,693)(5,867)

Foreign currency translation adjustments(8,725)(5,227)

Remeasurements of defined benefit plans, net of tax(3,195)(2,808)

Total accumulated other comprehensive income(9,519)(850)

Subscription rights to shares

99

99

Non-controlling interests

577

835

348,784

380,865

488,032

513,176

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, 2016
to December 31, 2016)

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

Net sales

459,103

483,180

Cost of sales

285,975

311,687

Gross profit

173,128

171,493

Selling, general and administrative expenses

112,968

118,031

Operating profit

60,16053,462Non-operating income
Equity in gain of affiliated companies

602

887

Other non-operating income

1,191

1,639

Total non-operating income

1,794

2,527

Foreign exchange losses

846–

Provision of allowance for doubtful accounts

222

972

Other non-operating expenses

346

286

Non-operating expenses

Total non-operating expenses

1,415

1,259

60,53954,730Gain on sales of fixed assets

286

53

Other extraordinary income

142

1

Total extraordinary income

429

54

466

756

–

293

731

208

Recurring profit
Extraordinary income

Extraordinary loss
Loss on impairment of fixed assets
Loss on valuation of stocks of affiliated companies
Other extraordinary loss
Total extraordinary loss

1,197

1,258

Profit before income taxes

59,77053,525

Income taxes

13,28912,830

Profit46,481

40,695

(22)

(183)

46,50340,878Loss attributable to non-controlling interests
Profit attributable to owners of parent-7-

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 3rd quarter(From April 1, 2016
to December 31, 2016)
ProfitCurrent 3rd quarter(From April 1, 2017
to December 31, 2017)46,481

40,695

1,289

4,927

Other comprehensive income
Unrealized gains or losses on other securities, net of tax
Deferred gains or losses on hedges, net of tax

1,813

(179)

Foreign currency translation adjustments(1,179)3,497

Remeasurements of defined benefit plans, net of tax

306

387

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

83

209

Total other comprehensive income
Comprehensive income

2,313

8,842

48,79449,53848,81649,721

(22)

(183)

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, 2016 to December 31, 2016)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable Segments
Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

To external customers

158,764

254,657

Inter-segment sales
and transfers

6,886

Total
Segment profit

Adjustments(Note 2)

Consolidated
Total(Note 3)

Subtotal

Other(Note 1)

Total

38,617452,038

7,065

459,103–459,103

6,263

2,362

15,512

13,14228,655(28,655)–

165,650

260,920

40,980467,551

20,207487,759(28,655)

459,103

15,36235,882

11,93363,1781,208

64,387(4,227)60,160Net sales

Notes: 1.
2.

3.

The “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’s strategic business units are classified.
Included in the 4,227 million yen deducted from segment profit as adjustment are a deduction of 813 million
yen in inter-segment eliminations, and a deduction of 3,413 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.
Segment profit is adjusted with operating profit in the consolidated statements of operations.

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

-9-II. Current 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
Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

To external customers

158,000

283,376

Inter-segment sales
and transfers

6,375

Total
Segment profit

Adjustments(Note 2)

Consolidated
Total(Note 3)

Subtotal

Other(Note 1)

Total

34,832476,209

6,971

483,180–

483,180

1,953

3,040

11,36913,264

24,633(24,633)–

164,376

285,329

37,872487,578

20,235507,814(24,633)

483,180

13,286

33,834

9,076

56,197821

57,019(3,557)53,462

Net sales

Notes: 1.
2.

3.

The “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’s strategic business units are classified.
Included in the 3,557 million yen deducted from segment profit as adjustment are an addition of 699 million
yen in inter-segment eliminations, and a deduction of 4,256 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.
Segment profit is adjusted with operating profit in the consolidated statements of operations.

2. Information regarding changes to reportable segments, etc.
Effective from the first quarter ended June 30, 2017, the Company has decided to change the classification ofplanning, development, production and sales businesses of prizes for amusement facilities and Loto prizes forconvenience stores and so forth previously belonging to the Network Entertainment Business to the Toys andHobby Business.
Segment information of the previous third quarter (nine months) is prepared and disclosed based on thereportable segment 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 -

(Significant Subsequent Events)(Change to reportable segments)
The Group executes business strategies centered on three units of aggregated businesses called strategic business units(“SBU”), one for each business domain, namely the Toys and Hobby SBU, the Network Entertainment SBU, and theVisual and Music Production SBU.
From the new Mid-term Plan starting in April 2018, the name of the units of aggregated business companies will bechanged from “SBUs” to “Units.” In addition, to enable swifter advancement of the main strategies for each mission,
such as accelerating evolution in IP axis strategy and empowering the push into new entertainment, the Group will shift
from its previous three-SBU structure to a five-Unit structure.
Specifically, the Network Entertainment SBU will be reorganized into the Network Entertainment Unit, which willdevelop business in fields such as network content and home video games, and the Real Entertainment Unit, which will
provide content for real-world based facilities, services, equipment, and so forth, unique to the Group. Moreover, the new
IP Creation Unit will be established as a spin-off from the Visual and Music Production SBU to focus on creating new IP.
In conjunction with this organizational restructure, the reporting segments are to be changed from the current Toysand Hobby Business, Network Entertainment Business, and the Visual and Music Production Business. From the fiscal
year ending March 31, 2019, the reporting segments will be the Toys and Hobby Business, Network Entertainment
Business, Real Entertainment Business, Visual and Music Production Business, and IP Creation Business.
Information regarding the amounts of net sales and profit/loss by reportable segment for the current third quarter (ninemonths), assuming the classification of its reportable segments after the organizational change is as follows.
Current 3rd quarter (From April 1, 2017 to December 31, 2017)(¥ 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)Visual andRealNetwork
IP
Toys andEntertain- Entertain- Music
Creation
Hobby
ment Production
mentBusiness
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.
2.

3.

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’s units are classified.
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 beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.
Segment profit is adjusted with operating profit in the consolidated statements of operations.

- 11 -

(Reorganization of subsidiaries)
At the Board of Directors Meeting held on February 9, 2018, the Company has passed the resolution to reorganize its
subsidiaries.
1. Establishment of subsidiary and absorption-type company split between subsidiaries(1) Purpose
In the Toys and Hobby Unit, a wholly-owned subsidiary of the Company, BANDAI SPIRITS CO., LTD. will beestablished on February 15, 2018 as a split preparation company to strengthen the business in products for mature fanbase in Japan and overseas. From the effective date of April 1, 2018, the business divisions of BANDAI CO., LTD.
that deal with products for mature fan base such as figures and plastic models and the business divisions that deal withprizes for convenience stores and so forth within BANPRESTO CO., LTD. will be transferred in a company split to
BANDAI SPIRITS CO., LTD.
(2) Overview of new company to be established (scheduled)(i) Name:
BANDAI SPIRITS CO., LTD.
(ii) Description of business:
Toys and Hobby Business(iii) Common stock:
100 million yen(iv) Date of establishment:
February 15, 2018(v) Percentage of shares held:
100% by the Company(3) Transactions conducted by commonly controlled entities(i) Overview of transaction
a. Name and description of business to be transferred
BANDAI CO., LTD.’s planning, development, manufacture and sales of figures, plastic models and soforth for mature fan base
BANPRESTO CO., LTD.’s planning, development, and sales of prizes for convenience stores and soforthb. Date of business combination
April 1, 2018 (scheduled)c. Legal form of business combination
Absorption-type company split with BANDAI CO., LTD. and BANPRESTO CO., LTD. as the split
companies and BANDAI SPIRITS CO., LTD. as the successor company
d. Company name after combination
No change.
(ii) Overview of accounting process
The accounting process will be carried out as transactions conducted by commonly controlled entities, inaccordance with the Accounting Standard for Business Combinations and Guidance on the AccountingStandard for Business Combinations and the Accounting Standard for Business Divestitures.

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2. Absorption-type company split between subsidiaries and change in trade name of subsidiary(1) Purpose
To strengthen the Real Entertainment Business, which provides content for real-world based facilities, services,
equipment, and so forth, unique to the Group, on the effective date of April 1, 2018, the amusement machine businessdivision of BANDAI NAMCO Entertainment Inc. will be transferred in an absorption-type company split to NAMCO
LIMITED, which conducts the planning and operation of amusement facilities. Furthermore, on the effective date, thetrade name of NAMCO LIMITED will be changed to BANDAI NAMCO Amusement Inc.
(2) Transactions conducted by commonly controlled entities(i) Overview of transaction
a. Name and description of business to be transferred
BANDAI NAMCO Entertainment Inc.’s planning, production, and sales of amusement machines
b. Date of business combination
April 1, 2018 (scheduled)c. Legal form of business combination
Absorption-type company split with BANDAI NAMCO Entertainment Inc. as the split company and
NAMCO LIMITED as the successor company
d. Company name after combination
BANDAI NAMCO Amusement Inc.
(ii) Overview of accounting process
The accounting process will be carried out as transactions conducted by commonly controlled entities, inaccordance with the Accounting Standard for Business Combinations and Guidance on the AccountingStandard for Business Combinations and the Accounting Standard for Business Divestitures.
3. Absorption-type merger between subsidiaries and change in trade name of subsidiary(1) Purpose
To enable more integrated development of visual products, music, and live events, on the effective date of April 1,
2018, the visual business operating company BANDAI VISUAL CO., LTD. will merge as the surviving company withthe music business operating company Lantis Co., Ltd. Furthermore, on the effective date, the trade name of BANDAIVISUAL CO., LTD. will be changed to BANDAI NAMCO Arts Inc.
(2) Transactions conducted by commonly controlled entities(i) Overview of transaction
a. Name and description of business of the company involved in combination
Merging company (surviving company)
Name:
BANDAI VISUAL CO., LTD.
Description of business:
Planning, production, and sales of visual software
Merged company (absorbed company)
Name:
Lantis Co., Ltd.
Description of business:
Planning, production, and sales of music software
b. Date of business combination
April 1, 2018 (scheduled)c. Legal form of business combination
Absorption-type merger with BANDAI VISUAL CO., LTD. as the surviving company and Lantis Co.,
Ltd. as the absorbed company- 13 -

d. Company name after combination
BANDAI NAMCO Arts Inc.
(ii) Overview of accounting process
The accounting process will be carried out as transactions conducted by commonly controlled entities, inaccordance with the Accounting Standard for Business Combinations and Guidance on the AccountingStandard for Business Combinations and the Accounting Standard for Business Divestitures.

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