Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2014

November 6, 2013

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

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
November 6, 2013

Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2014 (Japanese GAAP)
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
November 11, 2013
Scheduled starting date for dividend payments:
December 9, 2013
The additional materials of the Financial Results for the Quarter: Yes
The information session of the Financial Results for the Quarter: Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Second Quarter of the Fiscal Year Ending March 31, 2014
(April 1, 2013 to September 30, 2013)(1) Consolidated Operating Results (For the Six Months Ended September 30, 2013)

Second Quarter of the Fiscal YearEnding March 31, 2014
Second Quarter of the Fiscal Year
Ended March 31, 2013

Net sales¥ million
228,528%
2.7

222,610

14.6

Net income

Second Quarter of the Fiscal YearEnding March 31, 2014
Second Quarter of the Fiscal Year
Ended March 31, 2013
(Note)(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
26,389(4.9)
28,553
1.8
27,75376.1

28,05075.6

Net income per share

Net income per share(diluted)¥ million
19,607

%
13.2

¥
89.25

¥
89.24

17,320

115.8

78.84

–

Comprehensive income: 24,632 million yen [52.6%] (FY2014.3 2Q), 16,145 million yen [68.5%] (FY2013.3 2Q)(2) Consolidated Financial Position

As of September 30, 2013
As of March 31, 2013

Total assets¥ million
376,313374,203

Net assets¥ million
265,219
248,769

Equity ratio
%
70.2
66.0

(Reference) Equity: 264,304 million yen (as of September 30, 2013), 247,030 million yen (as of March 31, 2013)

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

Annual cash dividends
End ofFiscalthird quarteryear-end–¥33.00Fiscal Year Ended March 31, 2013–
Fiscal Year Ending March 31, 2014–
Fiscal Year Ending March 31, 2014–
(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2014: No¥12.00Total¥45.00¥24.003. Consolidated Projections for the Fiscal Year Ending March 31, 2014 (April 1, 2013 to March 31, 2014)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
485,000(0.5)
45,000(7.5)
46,500(6.9)
29,000(10.4)
132.00(Note) Revision to the projections: Yes
Consolidated projections for the full fiscal year ending March 31, 2014 (announced on August 2, 2013) are revised in this document.
For details of the revisions to the consolidated projections, please refer to “Notice Regarding Differences Between Consolidated
Projections and Actual Results for the Second Quarter (Six Months) and Revisions to Consolidated Projections for the Full Fiscal Year”
announced today (November 6, 2013).
* 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 “(2) Application of Special Accounting for Preparing the Quarterly Consolidated
Financial Statements” of “2. Matters Regarding Summary Information (Notes)” on page 5 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 September 30, 2013
222,000,000 shares
As of March 31, 2013
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of September 30, 2013
2,310,336 shares
As of March 31, 2013
2,309,342 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the Second Quarter of the Fiscal Year Ending March 31, 2014
219,690,019 shares
For the Second Quarter of the Fiscal Year Ended March 31, 2013
219,691,505 shares* Implementation status of quarterly review
This Consolidated Financial Report for the Second Quarter was exempt from quarterly review which was based on Financial
Instruments and Exchange Law of Japan. As of the second quarter disclosing, quarterly review for the quarterly consolidated financial
statements is under way.
* 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 4 of the attached material for matters pertaining to the earnings projections.
- To obtain the additional materials:
The additional materials of the Financial Results for the Quarter will be posted on the Company’s website on November 6, 2013.

Attached Material
Index
1. Qualitative Information Regarding Consolidated Results for the Second Quarter ....................... 2(1) Explanation Regarding Operating Results .......................................................................................................................... 2(2) Explanation Regarding Financial Position.......................................................................................................................... 3(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements .............................................. 4

2. Matters Regarding Summary Information (Notes) ........................................................................... 5(1) Changes in Significant Subsidiaries during the Period ....................................................................................................... 5(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements ................................. 5

3. Consolidated Financial Statements ..................................................................................................... 6(1) Quarterly Consolidated Balance Sheets .............................................................................................................................. 6(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive Income.... 8(Quarterly Consolidated Statements of Operations)........................................................................................................... 8(Quarterly Consolidated Statements of Comprehensive Income) ...................................................................................... 9(3) Notes to Consolidated Financial Statements..................................................................................................................... 10(Notes on Premise of Going Concern) ............................................................................................................................. 10(Notes on Significant Changes in the Amount of Stockholders’ Equity) ......................................................................... 10(Segment Information) ..................................................................................................................................................... 10-1-

1. Qualitative Information Regarding Consolidated Results for the Second Quarter(1) Explanation Regarding Operating Results
During the second quarter (six months) of the fiscal year ending March 31, 2014, although there were some bright signs
in the economic environment in Japan against a backdrop of economic policies and fiscal easing, such as an upturn inindividual consumption of high-priced products and improved corporate profitability, the economic outlook remained
uncertain due to concerns about the planned increase to consumption tax and other factors. Meanwhile, individual
consumption continued to be affected by the economic environments and other factors. in North America and Europe.
In this environment, the BANDAI NAMCO Group (“the Group”) implemented various measures aimed at medium- tolong-term growth under the concept of “Empower, Gain Momentum, Accelerate Evolution,” which is the vision of theGroup’s Mid-term Plan, started in April 2012. On the business front, sales were favorable in the Content Business in areas
including home video game software, visual and music content and network content. In addition, Toys and Hobby Businessperformed favorably, particularly for long-established character products in Japan.
Consequently, the Group’s consolidated results for the second quarter (six months) were net sales of 228,528 million
yen (year-on-year increase of 2.7%), operating income of 26,389 million yen (year-on-year decrease of 4.9%), recurringincome of 28,553 million yen (year-on-year increase of 1.8%), and net income of 19,607 million yen (year-on-yearincrease of 13.2%).
Operating Results by Segment
Toys and Hobby BusinessIn the Toys and Hobby Business, in Japan, sales performed favorably thanks to cross-functional efforts undertaken
across all businesses for long-established character toys such as Kyouryuger (Power Rangers series) and DOKIDOKI!
PRETTY CURE in addition to Aikatsu! new characters for girls. Although the gross margin ratio declined as a result of
increased costs in line with yen depreciation, the Group made steady efforts toward broadening the variety of customers
targeted by such means as stepping up development of products for babies and pre-school children, and adults.
Overseas, in North America and Europe, products of the Power Rangers series sold favorably. In the Asian region,
character toys, plastic models, collectable toys for adults and card products became popular thanks to developments inconjunction with Japan.
As a result, net sales in the Toys and Hobby Business were 80,791 million yen (year-on-year increase of 0.5%), andsegment income was 5,434 million yen (year-on-year decrease of 15.8%).
Content BusinessLooking at the Content Business, in the area of home video game software, new titles JOJO’s BIZARRE ADVENTURE
ALL STAR BATTLE and Disney MAGIC CASTLE MY HAPPY LIFE were hits, while there were favorable repeat sales ofseveral products including the TAIKO: DRUM MASTER series, which were launched in the previous fiscal year. In the areaof network content, social games such as ONE PIECE Grand Collection, Mobile Suit Gundam series and THE IDOLM@STER series, as well as applications for smartphones and online games, sold stably and contributed to performance.
In the area of visual and music content, strong sales were realized from multiple new titles such as SPACEBATTLESHIP YAMATO 2199, GIRLS und PANZER, and LoveLive! School idol project, as well as animation related music
titles.
As a result, net sales in the Content Business were 123,055 million yen (year-on-year increase of 5.5%), and segment
income was 21,763 million yen (year-on-year increase of 8.1%).

-2-

Amusement Facility BusinessIn the Amusement Facility Business, in Japan, the Group newly opened two indoor theme parks as a measure to build a
new business pillar from the existing amusement facility businesses. Despite also promoting the development ofdifferentiated facilities that offer the experience of the Group’s distinctive worldview of specific characters, sales ofexisting facilities declined to 94.6% from the same period of the previous fiscal year.
As a result, net sales in the Amusement Facility Business were 29,229 million yen (year-on-year decrease of 2.2%), andsegment loss was 146 million yen (compared with segment income of 1,051 million yen for the same period of theprevious fiscal year).
Number of Facilities as of September 30, 2013
Directly Managed
Revenue-Sharing
Facilities
Facilities
256
1,032

Others

Total

3

1,291

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. We are making efforts to manage
such operations related to group support in an efficient manner.
As a result, net sales in the Other Businesses were 12,871 million yen (year-on-year increase of 0.0%), and segment
income was 868 million yen (year-on-year decrease of 32.6%).
(2) Explanation Regarding Financial Position
At the end of the second quarter of the fiscal year ending March 31, 2014, total assets stood at 376,313 million yen, an
increase of 2,109 million yen from the end of the previous fiscal year. The main factors were increases of 1,990 million yen
in finished goods and merchandise, 8,336 million yen in work in process, 4,181 million yen in property, plant andequipment, and 2,897 million yen in investment securities included in other investments and assets, while there was adecrease of 14,404 million yen in trade receivables.
Total liabilities amounted to 111,093 million yen, a decrease of 14,339 million yen from the end of the previous fiscal
year. The main factors were decreases of 4,378 million yen in accrued income taxes included in other current liabilities
mainly due to income taxes paid, 4,114 million yen in accrued employee bonuses included in other current liabilities
mainly due to employee bonuses paid, 3,386 million yen in accounts payable-other included in other current liabilities, and2,666 million yen in long-term borrowings due to repayment.
Total net assets stood at 265,219 million yen, an increase of 16,449 million yen from the end of the previous fiscal year.
The main factors were increases of 12,353 million yen in retained earnings thanks to the recording of net income, and3,873 million yen in foreign currency translation adjustments due to foreign exchange fluctuation, despite cash dividends
paid of 7,253 million yen.
As a result, the equity ratio became 70.2% compared with 66.0% at the end of the previous fiscal year.

-3-(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, although there are some bright signs in Japan’s economic trend, the business environment is expected
to remain beset by uncertainties including individual consumption trends and economic trends in North America andEurope. Such factors are also expected to have an impact on the entertainment industry, in which the Group is extensively
involved, resulting in ongoing uncertainty in this business environment.
Facing these circumstances, the Group started its three-year Mid-term Plan in April 2012, and will steadily implement
the strategies in this plan. Specific areas of focus include obtaining new IP (intellectual property) such as characters,developing products and services, and working to construct new business models with the aim of medium- to long-term
growth, in addition to strengthening the business foundation further to stabilize and improve profitability.
In the Toys and Hobby Business, our plan for the Japanese market is to strengthen development through coordinatedsales of products in the variety of categories revolving around long-established characters, such as the KAMEN RIDER
series and Mobile Suit Gundam series, whose new programs started broadcasting on TV from October 2013, and the Super
Sentai series (Power Rangers series) and PRETTY CURE! series. We will also expand our character lineup by such means
as developing the new Aikatsu! characters for girls through cross-functional efforts undertaken across all businesses andlaunching new characters for elementary-school-age boys. In tandem with this, we will aim to be No. 1 in Japan by an
overwhelming margin by introducing new products and services such as card games, plastic models, and collectable toys
for adults targeting a variety of customers. Overseas, in North America and Europe where the market environment
continues to be harsh, the Group will strive to improve profitability by strengthening integrated brand management
structure of North America and Europe and developing product sales with a focus on characters for boys such as themainstay Power Rangers series. In Asian markets, the Group aims to achieve growth through developments in conjunction
with Japan, focusing on plastic models, collectable toys for adults and card products that are popular in Japan.
In the Content Business, the Group will enhance its IP strategy for offering products and services in a wide variety of
categories with a focus on IP. To this end, the Group will supplement its existing IP lineup by cultivating new properties
mainly through various business operations centered around PAC-MAN and the Ghostly Adventures, a new animated series.
Furthermore, the Group will put in place and improve the development environment from a medium- and long-term
perspective, such as by implementing measures to respond swiftly to technological progress and changes in theenvironment.
Looking at approaches by business, in the network content area, the Group will work to achieve stable development ofcontent by launching new titles that appeal to changing user tastes and releasing timely upgrades of existing titles. In thearea of home video game software, the Group will introduce popular series while also taking a more proactive approach to
new initiatives that make use of network functions such as download-only titles. For arcade game machines, in addition todevelopment and sale of popular game machines, the Group will work to diversify sales methods through approaches
including a system in which fees vary according to the amount of use. In the area of visual and music content, the Groupwill work to supplement sales of various new package software by taking a proactive approach to creating new IP like the
Aikatsu! characters.
In the Amusement Facility Business, in Japan, while boosting customer numbers with our unique capabilities in facility
operations to offer the experience of character worldviews, the Group will aim to build a new business pillar bystrengthening the theme park business and taking on the challenge of a new business format. In North America and Europe,
the Group will strive to improve profitability by implementing various efficiency measures.
In light of results in the second quarter (six months), recent performance trends of each business segment, the businessplan for the second half of the fiscal year, and the market environment, the Group has revised its consolidated projections
for the full fiscal year ending March 31, 2014 that were announced in the Consolidated Financial Report for the First
Quarter of the Fiscal Year Ending March 31, 2014 on August 2, 2013. Please see page 5 for the details of the revision.

-4-

Revision to the consolidated projections for the full fiscal year
(April 1, 2013 to March 31, 2014)
Operating
Net Sales
Income(¥ million)(¥ million)
Previous projections (A)480,000
40,000
Revised projections (B)485,000
45,000Change in amount (B–A)
5,000
5,000
Change (%)
1.0
12.5
Reference: Results for theprevious fiscal year
487,241
48,642

Recurring
Income(¥ million)
40,50046,500
6,000
14.8

Net
Income(¥ million)
26,00029,0003,000
11.5

49,97232,383Net Income
per Share
118.35 yen
132.00 yen––
147.40 yen(April 1, 2012 to March 31, 2013)

2. Matters Regarding Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not applicable.

(2) 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
income before income taxes and minority interests for the fiscal year including the current second quarter, and next bymultiplying the quarterly income before income taxes and minority interests by such estimated effective tax rate.

-5-3. Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2013)

Current 2nd quarter(As of September 30, 2013)

AssetsCurrent assets
Cash and time deposits

119,132

116,497

Trade receivables

77,06962,664

Short-term investments

4,379

5,051

Finished goods and merchandise

10,915

12,906Work in process

19,59727,934

Raw materials and supplies

6,130

6,054

Other current assets

28,06329,229Allowance for doubtful receivables

(484)

(563)

264,804

259,774

Property, plant and equipment

47,25551,437

Intangible assets

8,497

9,211

54,98456,539Total current assets
Fixed assets

Investments and other assets
Other investments and assets
Allowance for doubtful receivables(1,338)(649)

Total investments and other assets

53,64655,889109,399

116,538

374,203376,313

Total fixed assets
Total assets-6-(¥ million)
Prior Fiscal Year(As of March 31, 2013)

Current 2nd quarter(As of September 30, 2013)

Liabilities
Current liabilities
Trade payables

46,471

46,351

Short-term borrowings

5,596

5,686

Provision

3,281

2,240

Other current liabilities

53,04142,089Total current liabilities

108,391

96,367Long-term borrowings

7,500

4,833

Accrued retirement and severance benefits

3,724

3,974

–

374

Long-term liabilities

Other provision
Other long-term liabilities

5,817

5,543

Total long-term liabilities

17,042

14,725

125,433

111,093

Common stock

10,00010,000Additional paid-in capital

52,24552,245Retained earnings

199,118

211,471

Treasury stock(2,385)(2,386)

Total stockholders’ equity

258,979

271,330

5,212

6,660

642

242

Revaluation reserve for land, net of tax(5,608)(5,608)Foreign currency translation adjustments(12,194)(8,320)Total accumulated other comprehensive income(11,948)(7,026)–44

Minority interests

1,738

871

Total net assets

248,769

265,219374,203376,313

Total liabilities
Net assets
Stockholders’ equity

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

Subscription rights to shares

Total liabilities and net assets-7-

(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Operations)(¥ million)
Prior 2nd quarter(From April 1, 2012
to September 30, 2012)

Current 2nd quarter(From April 1, 2013
to September 30, 2013)

Net sales

222,610

228,528

Cost of sales

134,302137,633

Gross profit

88,30890,895

Selling, general and administrative expenses

60,55564,506

Operating income

27,753

26,389Non-operating income
Equity in gain of affiliated companies

50

993

Other non-operating income

674

1,709

Total non-operating income

725

2,702

Non-operating expenses
Foreign exchange loss

318–

Provision for loss on guarantees–

387

Other non-operating expenses

109

151

Total non-operating expenses
Recurring income

428

538

28,05028,553Extraordinary income
Gain on sales of fixed assets

419Gain on sales of investment securities

011

Gain on negative goodwill

24–

Gain on liquidation of subsidiaries and affiliates–

18

Total extraordinary income

29

49

Loss on impairment of fixed assets

152

117

Other extraordinary loss

185

73

Total extraordinary loss

337

190

Income before income taxes and minority interests

27,742

28,411

Income taxes

10,339

8,751

Income before minority interests

17,403

19,66082

53

17,32019,607Extraordinary loss

Minority interests
Net income-8-(Quarterly Consolidated Statements of Comprehensive Income)(¥ million)
Prior 2nd quarter(From April 1, 2012
to September 30, 2012)
Income before minority interests

Current 2nd quarter(From April 1, 2013
to September 30, 2013)

17,403

19,660

Unrealized gains or losses on other securities, net of tax

(411)

1,435

Deferred gains or losses on hedges, net of tax

(264)

(399)

Foreign currency translation adjustments

(579)

3,907

(1)

28

Other comprehensive income

Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income(1,257)

4,971

16,145

24,632

16,04824,52897

103

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-9-(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.

(Segment Information)
Segment Information
I. Prior 2nd quarter (From April 1, 2012 to September 30, 2012)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

29,839217,622

4,988

222,610–

222,610

5,656

32

9,347

7,879

17,227(17,227)–

80,411

116,686

29,872226,970

12,867

239,837(17,227)

222,610

6,451

20,136

1,051

27,6391,289

28,928(1,175)27,753Toys and
Hobby
Business

To external customers

Content
Business

Amusement
Facility
Business

76,752

111,030

Inter-segment sales
and transfers

3,659

Total

(Note 2)

(Note 3)

Net sales

Segment income

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 1,175 million yen deducted from segment income as adjustment are an addition of 381 million
yen in inter-segment eliminations, and a deduction of 1,556 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 income is adjusted with operating income in the quarterly 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.

- 10 -

II. Current 2nd quarter (From April 1, 2013 to September 30, 2013)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

29,185

223,696

4,832

228,528–

228,528

5,607

43

9,380

8,038

17,418(17,418)–

80,791

123,055

29,229233,076

12,871

245,947(17,418)

228,528

5,434

21,763(146)

27,051868

27,920(1,531)

26,389Toys and
Hobby
Business

To external customers
Inter-segment sales
and transfers

Content
Business

Amusement
Facility
Business

77,062

117,448

3,728

Total
Segment income (loss)(Note 2)

(Note 3)

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 1,531 million yen deducted from segment income (loss) as adjustment are a deduction of 35
million yen in inter-segment eliminations, and a deduction of 1,495 million yen in corporate expenses thatcannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
Segment income (loss) is adjusted with operating income in the quarterly 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.

- 11 -