Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2010

August 4, 2009DISCLAIMER- 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 shallprevail.
- 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 from expectations.

1

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

August 4, 2009

Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2010
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Executive Officer, Corporate Planning Division
Scheduled filing date of the quarterly security report:
August 7, 2009
Scheduled starting date for dividend payments:−

1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2010
(April 1, 2009 to June 30, 2009)(1) Consolidated Operating Results (For the three months ended June 30, 2009)(Percentages indicate year-on-year changes.)
Operating income
Recurring income

Net salesFirst Quarter of the Fiscal YearEnding March 31, 2010
First Quarter of the Fiscal Year
Ended March 31, 2009

¥ million
75,729%(15.8)¥ million(2,758)%−¥ million(2,197)%−

89,979

−

1,528

−

2,490

−

Net income

First Quarter of the Fiscal YearEnding March 31, 2010
First Quarter of the Fiscal Year
Ended March 31, 2009

Net income per share

Net income per share(diluted)¥ million(2,846)%−¥(11.80)

¥
−

1,018

−

4.02

4.02

(2) Consolidated Financial Position
Total assets

As of June 30, 2009
As of March 31, 2009

Net assets¥ million
346,108
363,444¥ million
260,307
260,579

Equity ratio
%
74.4
70.9

(Reference)
Equity: 257,370 million yen (as of June 30, 2009), 257,645 million yen (as of March 31, 2009)2

Net assets per
share¥
1,066.58
1,067.71

2. Dividend

Dividend record dates
Fiscal Year Ended March 31, 2009

End offirst quarter−−End ofsecond quarter¥12.00

Dividend per share
End
Fiscalthird quarteryear-end−¥12.00Total¥24.00Fiscal Year Ending March 31, 2010
Fiscal Year Ending March 31, 2010¥12.00−¥12.00¥24.00(Projections)*1 Revision to the projections of dividend for the Fiscal Year Ending March 31, 2010: No*2 The stable portion of the dividend is given in the projections for the End of second quarter and Fiscal year-end for the Fiscal YearEnding March 31, 2010 based on the company’s basic policy regarding appropriation of profits. Thus, the actual Fiscal year-end
dividend will be decided according to the consolidated financial results.

3. Consolidated Projections for the Fiscal Year Ending March 31, 2010 (April 1, 2009 to March 31, 2010)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
165,000 (13.5)(3,800)−(3,200)−(4,700)−(19.48)September 30, 2009
Full Fiscal Year
400,000(6.2)
15,000(32.9)
16,000(34.7)
8,500(28.1)
35.23* Revision to the projections: Yes
4. Other Information(1) Changes in Significant Subsidiaries during the Period (Changes in Specified Subsidiaries Resulting in the Change in Scope ofConsolidation): Yes
New: −
Excluded: 1 company (Bandai Networks Co., Ltd.)
Note: For more details, please refer to the section of “4. Others” of “Qualitative Information and Financial Statements” on pages 9-10.
(2) Application of Simplified Accounting and Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes
Note: For more details, please refer to the section of “4. Others” of “Qualitative Information and Financial Statements” on pages 9-10.
(3) Changes in Accounting Policies, Procedures, and Methods of Presentation for Preparing the Quarterly Consolidated Financial
Statementsa) Changes due to revisions to accounting standards and other regulations: Nob) Changes due to other reasons: Yes
Note: For more details, please refer to the section of “4. Others” of “Qualitative Information and Financial Statements” on pages 9-10.
(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of period (including treasury stock)
As of June 30, 2009
250,000,000 shares
As of March 31, 2009
250,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of June 30, 2009
8,696,122 shares
As of March 31, 2009
8,694,796 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the First Quarter of the Fiscal Year ending March 31, 2010
241,304,602 shares
For the First Quarter of the Fiscal Year ended March 31, 2009
253,230,315 shares

Explanation regarding the appropriate use of forecasts of business results and other notes* Consolidated projections for the Six Months and Full Fiscal Year of the fiscal year ending March 31, 2010 (announced on May 8, 2009)
are revised in this report.
* Qualitative information regarding forward-looking statements:
Forward-looking statements that have been released prior to this document are based on management’s estimates, assumptions, projections
and information available at the time of its publications. A number of factors could cause actual results to differ materially fromexpectations.
* Figures are in millions of yen, rounded down, except where noted.

3

Qualitative Information and Financial Statements
1. Qualitative Information Regarding Consolidated Operating Results
The Japanese economy during the first quarter of the fiscal year ending March 31, 2010 remained in difficult
circumstances that were marked by a continuing economic slump caused by the abrupt slowdown of the global economy
triggered by the financial crisis in the U.S. In addition, reduced consumption had substantial impact on the entertainment
industry, causing continued uncertainty in the industry as a whole.
In such environment, the BANDAI NAMCO Group (“the Group”) pressed ahead with its sights set on the medium- tolong-term Group vision of becoming a “Globally Recognized Entertainment Group.” By promoting up-front investment ingrowing business areas and improving profitability of businesses, the Group shall further develop its global managementfoundation, based on the three-year Mid-term Business Plan that started this fiscal year.
On the business front, in the Toys and Hobby Business, although long-established character toys sold strongly in Japan,
taking into account the impact of weak individual consumption, and that the second half of the fiscal year is generally where
products and services are concentrated, performance was below the levels of the same period in the previous fiscal year.
Consequently, the Group’s consolidated results for the first quarter were net sales of 75,729 million yen (year-on-year
decrease of 15.8%), operating loss of 2,758 million yen (compared with an operating income of 1,528 million yen for thesame period of the previous fiscal year), recurring loss of 2,197 million yen (compared with a recurring income of 2,490
million yen for the same period of the previous fiscal year), and net loss of 2,846 million yen (compared with a net income of
1,018 million yen for the same period of the previous fiscal year).

Operating Results by Business Segment(¥ million)

Current 1st
Quarter

Net Sales
Prior 1st
Quarter

Toys and Hobby

31,74135,390Game Contents

20,21028,010

Visual and Music Content

7,997

7,247

Amusement Facility

15,835

19,470

Other Businesses

4,484

4,822

Eliminations and Corporate(4,540)(4,961)

Consolidated

75,72989,979ChangeDecrease of
3,648
Decrease of
7,799
Increase of
750
Decrease of
3,635
Decrease of
337
Increase of421
Decrease of
14,250Operating Income (Loss)
Current 1stPrior 1st
ChangeQuarter
Quarter
Decrease of
1,874
1,994
119
Decrease of(4,136)(40)
4,095
Increase of
(13)
(234)
221
Decrease of
(45)
69
115
Decrease of
36
206
170
Decrease of
(474)
(467)
7
Decrease of(2,758)
1,528
4,287

Toys and Hobby BusinessIn the Toys and Hobby Business, long-established character toys such as Samurai Sentai Shinkenger, MASKED RIDER
DECADE, and FRESH PRETTY CURE posted strong performances in Japan. The card game Battle Spirits also continued to
be popular. Amidst the stagnation of individual consumption, however, candy toys, vending machine capsule products andother peripheral toy categories struggled.
Overseas, the BEN10 character toys maintained a similar popularity compared with the previous fiscal year, but
performance overall was weak, especially in the Americas where the market was particularly difficult.
4As a result, net sales in the Toys and Hobby Business were 31,741 million yen (year-on-year decrease of 10.3%), andoperating income was 1,874 million yen (year-on-year decrease of 6.0%).

Game Contents BusinessIn the Game Contents Business, encompassing home video game software and arcade game machines, there were no
major title or major product sales for the current first quarter. Sales of minor titles struggled as the sluggish market continued
in Japan, and repeat sales also were down overseas; thus these categories were down compared to the same period of theprevious fiscal year. Game contents for mobile devices, however, showed solid performance, thanks to the development of awide variety of content to suit increasingly diverse user preferences.
As a result, net sales in the Game Contents Business were 20,210 million yen (year-on-year decrease of 27.8%), andoperating loss was 4,136 million yen (compared with an operating loss of 40 million yen in the same period of the previous
fiscal year). Note that due to changes in the business segments in the current first quarter, in order to make year-on-yearcomparisons, the results of the first quarter of the previous fiscal year were reconfigured to reflect the post-change segments.

Visual and Music Content BusinessIn the Visual and Music Content Business, concerning visual package software, although the market was weak amidst thetransitional period for hardware, the animated television series Mobile Suit Gundam 00 (Double O), and Psalms of Planets
Eureka Seven became popular in Japan. Overseas, the profitability of business in the Americas was improved through greater
efficiency. Sales of music package software, particularly those related to animation, delivered a solid performance.
As a result, net sales in the Visual and Music Content Business were 7,997 million yen (year-on-year increase of 10.3%)
and operating loss was 13 million yen (compared with an operating loss of 234 million yen in the same period of the previous
fiscal year).

Amusement Facility BusinessIn the difficult market environment, the Amusement Facility Business was sluggish, with domestic existing-facility sales
at 89.3% of the figure for the same period of the previous fiscal year, despite the implementation of marketing strategies foreach customer segment. On the other hand, costs decreased significantly as a result of strategically closing down or selling 63
existing amusement facilities in the previous fiscal year.
Overseas, overall performance was sluggish amidst difficult market environments. This was despite efforts focused on
improving operational efficiency in the Americas and business development centered on complex facilities in Europe.
As a result, net sales in the Amusement Facility Business were 15,835 million yen (year-on-year decrease of 18.7%), andoperating loss was 45 million yen (compared with an operating income of 69 million yen in the same period of the previous
fiscal year).

Facilities as of June 30, 2009
Directly Managed Facilities

Revenue-Sharing Facilities

Theme Parks

Spa Facilities

Total

308

1,036

4

3

1,351

5

Other Businesses
Other Businesses consist of companies that conduct operations such as logistics support and building management to eachof the Group’s strategic business units. During the current first quarter, efforts were made to improve the efficiency of these
operations related to group support.
As a result, net sales in Other Businesses were 4,484 million yen (year-on-year decrease of 7.0%), and operating income
was 36 million yen (year-on-year decrease of 82.4%).

Operating Results By Geographic Segment(¥ million)
Net Sales

Current 1st
Quarter

Operating Income (Loss)

Prior 1st
Quarter

ChangeJapan

60,96670,616

Americas

8,558

9,704

Europe

6,951

10,144

Asia

7,924

7,818

Eliminations and Corporate(8,672)(8,304)

Consolidated

75,72989,979Decrease of
9,649
Decrease of
1,146
Decrease of
3,192
Increase of106
Decrease of368
Decrease of
14,250Current 1st
QuarterPrior 1st
Quarter(1,393)889(1,860)

(279)

547

1,353

562

428

(615)

(863)

(2,758)

1,528

ChangeDecrease of
2,282
Decrease of
1,581
Decrease of
805
Increase of133
Increase of248
Decrease of
4,287

Japan
In the Toys and Hobby Business, long-established character toys such as MASKED RIDER DECADE and FRESH
PRETTY CURE posted strong performances. In the Visual and Music Content Business, visual package software such as
Mobile Suit Gundam 00 (Double O), and Psalms of Planets Eureka Seven became popular. In the Game Contents Business,
however, there were no major title or major product sales in the first quarter and sales of minor titles also struggled as the
sluggish market continued. Moreover, while the Amusement Facility Business also struggled under difficult market
environment, particularly existing facilities, costs were slashed as a result of the existing facility closures that were carriedout in the previous fiscal year.
As a result, net sales in Japan were 60,966 million yen (year-on-year decrease of 13.7%) and operating loss was 1,393
million yen (compared with an operating income of 889 million yen in the same period of the previous fiscal year).

Americas
In the Toys and Hobby Business, the BEN10 character toys performed solidly, but overall the business struggled in the
midst of a difficult market environment. In the Game Contents Business, performance did not reach the level of the same
period of the previous fiscal year because the titles for this fiscal year are more concentrated in the second half. On the other
hand, in the Visual and Music Content Business, profitability improved as a result of changes to the business model, while in
the Amusement Facility Business, efforts continued to be on cutting costs by improving operational efficiency in the midst ofa difficult market environment.
As a result, net sales in Americas were 8,558 million yen (year-on-year decrease of 11.8%) and operating loss was 1,860
million yen (compared with an operating loss of 279 million yen in the same period of the previous fiscal year).

6EuropeIn the Toys and Hobby Business, performance remained solid, particularly the performance of the BEN10 character toys.
In the Game Contents Business, performance did not reach the level of the same period of the previous fiscal year because
the titles for this fiscal year are more concentrated in the second half, as well as repeat sales decreased this first quarter. The
Amusement Facility Business performed weakly under the impact of the economic downturn.
As a result, net sales in Europe were 6,951 million yen (year-on-year decrease of 31.5%) and operating income was 547
million yen (year-on-year decrease of 59.5%).

Asia
In the Toys and Hobby Business, in addition to long-established character products such as Mobile Suit Gundam, theBEN10 character toys newly became popular. Also, in the Amusement Facility Business, performance was solid, particularly
with respect to Wonder Park Plus, a large-scale amusement facility in Hong Kong.
As a result, net sales in Asia were 7,924 million yen (year-on-year increase of 1.4%) and operating income was 562
million yen (year-on-year increase of 31.2%).

2. Qualitative Information Regarding Consolidated Financial Position
At the end of the first quarter of fiscal year ending March 31, 2010, total assets stood at 346,108 million yen, a decreaseof 17,336 million yen from the end of the previous fiscal year. The main factors of this decline were a decrease of 22,340
million yen in trade receivables, despite an increase of 5,434 million yen in inventories such as work in process etc.
Total liabilities amounted to 85,800 million yen, a decrease of 17,065 million yen from the end of the previous fiscal year.
The main factors of this decline were 7,263 million yen in trade payables, 6,792 million yen in accounts payable–other,included in other current liabilities and a decrease of 3,599 million yen in accrued income taxes.
Total net assets stood at 260,307 million yen, a decrease of 271 million yen from the end of the previous fiscal year. The
main factors of this decline were as follows. While there was an increase of 3,093 million yen in translation adjustments due
to currency fluctuation, and an increase of 1,850 million yen in other securities valuation difference, there was a decrease of
5,602 million yen in the retained earnings as a result of the recording of dividends paid and net loss.
As a result, the equity ratio became 74.4% compared with 70.9% at the end of the previous fiscal year.

As of the end of the first quarter, cash and cash equivalents (hereafter “funds”) remaining on hand had decreased by 2,228
million yen from the end of the previous fiscal year to 107,808 million yen. Below is the breakdown of cash flows by
activities.
Cash Flows from Operating Activities
The amount of funds provided by operating activities totaled 128 million yen (down 2,358 million yen compared with thesame period of the previous fiscal year). As a main breakdown of funds used, there was a decrease in trade payables of 8,215
million yen (compared with 6,659 million yen in the same period of the previous fiscal year), a decrease in accounts
payable–other of 7,137 million yen (compared with 8,967 million yen in the same period of the previous fiscal year) andincome taxes paid was 5,088 million yen (compared with 6,880 million yen in the same period of the previous fiscal year).
However, overall, there was a net increase in funds due to a decrease in trade receivables of 23,663 million yen (comparedwith 22,071 million yen in the same period of the previous year).

7

Cash Flows from Investing Activities
The amount of funds used in investing activities totaled 1,980 million yen (an increase of 2,143 million yen comparedwith the same period of the previous fiscal year). The main factor for funds used was 2,082 million yen in purchases ofproperty, plant and equipment and intangible assets (compared with 2,293 million yen in the same period of the previous
fiscal year).

Cash Flows from Financing Activities
The amount of funds used in financing activities amounted to 2,828 million yen (down 81.3% compared with the same
period of the previous fiscal year). The main factor for funds used was dividends paid of 2,896 million yen (compared with
3,053 million yen in the same period of the previous fiscal year).

3. Qualitative Information Regarding Consolidated Projections
As for the future of the economy in Japan, despite the presence of factors working to halt the rapid deterioration of
economy such as a pickup in exports, the employment situation continues to be severe and it is difficult to make forecasts
concerning individual consumption. This, moreover, is having an impact on the business environment of the entertainment
industry, in which the Group is extensively involved. Based on current circumstances, the Group expects the harsh businessenvironment will continue.
Amidst these conditions, the Group will press ahead with its sights set on the medium- to long-term Group vision of
becoming a “Globally Recognized Entertainment Group.” By promoting up-front investment in growing business areas andimproving profitability of businesses, the Group shall further develop its global management foundation, based on thethree-year Mid-term Business Plan that started this fiscal year.
Specifically, for the Toys and Hobby Business, the Group’s attention in Japan will be to strengthening the development oflong-established character series such as Mobile Suit Gundam, which is celebrating its 30th anniversary, Samurai Sentai
Shinkenger, FRESH PRETTY CURE, as well as MASKED RIDER W (Double), which will start in September 2009. Overseas,
the Group will begin development in the United States of the MASKED RIDER series and the card game Battle Spirits, whichhave proved very popular in Japan.
In the Game Contents Business, the Group will place particular focus on the home video game software business in North
America and Europe. In addition to the popular series titles originated in Japan such as Tekken 6, developed for
PLAYSTATION 3, Xbox360 and PlayStation Portable, the focus on North America and Europe will also include casual
games such as the “Family” series, for the Wii. In arcade games machines, the Group will strengthen development in thesecond half of the fiscal year, concentrating on major casual games such as “TANK! TANK! TANK!”.
In the Visual and Music Content Business, in addition to developing package software to commemorate the 30th
anniversary of Mobile Suite Gundam, the Group will aim to boost profitability by ensuring a balance of content for all target
groups.
For the Amusement Facility Business, the Group will improve profitability by executing marketing strategies aimed ateach customer segment and further promoting operational efficiency.
However, in its projections for the current fiscal year, the Group made a major revision to the sales plan for the Game
Contents Business from the second quarter onward, in light of the recent downturn in the game software market. The revision
was made following a strategic review based on management by the title portfolio map, introduced to facilitate medium andlong-term dynamic growth, and executed in response to the weak market for home video game software in Japan.
8

The Group also revised its sales plan for the Toys and Hobby Business for the current fiscal year due to its struggling
performance in the U.S. market, as well as the sales plan for the Visual and Music Content Business, to reflect an unclear
outlook for the package software market as hardware transitional period continues.
The Group also expects to record the amortization of goodwill (around 600 million yen), following the acquisition of allshares in a new subsidiary, NAMCO BANDAI Partners S.A.S., announced on July 2, 2009.
As a result, the Group has revised its consolidated projections for the six months and the full fiscal year of the fiscal year
ending March 31, 2010 announced on May 8, 2009, as described in the following tables.

Revision to the consolidated projections for the six months(April 1, 2009 to September 30, 2009)
Operating
Net sales
income (loss)

Recurringincome (loss)(¥ million)
Net income(loss) per share

Net income(loss)

Previous projections (A)195,000

2,500

3,000

1,000

4.14 yen

Revised projections (B)165,000(3,800)(3,200)(4,700)(19.48) yen

Change in amount (B–A)(30,000)(6,300)(6,200)(5,700)–Change (%)(15.4%)

–

–

–

–

Reference:
Results for the same periodof the previous fiscal year
(April 1, 2008 to September
30, 2008)

190,795

5,576

7,275

1,282

5.13 yen

Revision to the consolidated projections for the full fiscal year
(April 1, 2009 to March 31, 2010)
Operating
Net sales
incomeRecurringincomeNet income(¥ million)
Net income
per sharePrevious projections (A)430,000

22,50023,50012,50051.80 yen

Revised projections (B)400,000

15,00016,0008,500

35.23 yen

Change in amount (B–A)(30,000)(7,500)(7,500)(4,000)–Change (%)(7.0%)(33.3%)(31.9%)(32.0%)–

Reference:
Results for the same periodof the previous fiscal year
(April 1, 2008 to March 31,
2009)426,399

22,34824,513

11,83047.95 yen

4. Others(1) Changes in Significant Subsidiaries during the Period (Changes in Specified Subsidiaries Resulting in the Change in
Scope of Consolidation)
On April 1, 2009, Bandai Networks Co., Ltd., a specified subsidiary of the Company, was merged by absorption-typemerger with NAMCO BANDAI Games Inc., a specified subsidiary of the Company. As a result of this merger, Bandai
Networks Co., Ltd. is an extinct company and is not included within the scope of specified subsidiary from the firstquarter.

9(2) Application of Simplified Accounting and Special Accounting for Preparing the Quarterly Consolidated Financial
Statements
a. Calculation of debt default estimate for general receivables
As it is deemed that there is no material change in the debt default ratio and the like at the end of the current firstquarter from what was calculated at the end of the previous fiscal year, debt default estimate was calculated using thedebt default ratio and the like at the end of the previous fiscal year.

b. Inventory valuation method
With respect to the calculation of inventories at the end of the current first quarter, physical inventories were omitted
and a reasonable calculation method based on the physical inventories at the end of the previous fiscal year was
employed.
In addition, concerning the write-down of the book value of inventories, only for those items whose drop in
profitability was apparent, was an estimate of net selling price made and were book values written down.

c. Calculation of depreciation of fixed assets
For fixed assets to which the declining-balance method is applied, the amount of depreciation for the fiscal year is
proportionally divided up into amounts for the quarterly period.

d. 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 first quarter, and next bymultiplying the quarterly income before income taxes and minority interests by such estimated effective tax rate.
Also, adjustment for income taxes is included in income taxes.

(3) Changes in Accounting Policies, Procedures, and Methods of Presentation for Preparing the Quarterly Consolidated
Financial Statements
Changes in Accounting Treatments
Changes in presented segments
Up until this change, in the Amusement Facility Business, part of the costs of supportive operations at the rear of
the store was treated as cost of sales. However, from the perspective of having a corresponding relationship between
sales and cost of sales, these costs shall be presented as selling, general and administrative expenses from the current
first quarter.
As a result of this change, compared to if the previous standard was applied, the cost of sales decreased by 471
million yen and selling, general and administrative expenses rose by the same amount.
This change does not impact operating loss, recurring loss and loss before income taxes and minority interests.
It also does not impact the operating results presented in segment information.

10

5. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(¥ million)
Current 1st Quarter
As of June 30, 2009

(Summary) Prior Fiscal YearAs of March 31, 2009

AssetsCurrent assets
Cash and time deposits

103,959

106,747

Trade receivables

40,17762,518

Short-term investments

4,993

4,426

Merchandise and finished goods

12,682

11,642Work in process

25,682

21,653

Raw materials and supplies

4,719

4,354

Other current assets

27,07825,190Allowance for doubtful receivables

(398)

(446)

218,896

236,085

51,66751,991

11,31912,054

Other intangible assets

9,839

10,230Total intangible assets

21,15922,285

Other investments and assets

55,621

54,336

Allowance for doubtful receivables(1,236)(1,254)

Total investments and other assets

54,38453,081

127,212

127,359

346,108

363,444

Trade payables

29,49736,760

Short-term borrowings

9,001

8,857

Accrued income taxes

2,775

6,374

Provision

1,203

1,701

Other current liabilities

24,69030,609Total current liabilities

67,16884,303Long-term debt

11,99011,990

Provision

2,020

1,953

241

246

Other long-term liabilities

4,379

4,371

Total long-term liabilities

18,632

18,56185,800102,865

Total current assets
Fixed assets
Property, plant and equipment
Intangible assets
Goodwill

Investments and other assets

Total fixed assets
Total assets
Liabilities
Current liabilities

Long-term liabilities

Negative goodwill

Total liabilities11(¥ million)
Current 1st Quarter
As of June 30, 2009

(Summary) Prior Fiscal YearAs of March 31, 2009

Net assets
Stockholders’ equity
Common stock

10,00010,000Additional paid-in capital

79,88779,887Retained earnings

193,851

199,453

Treasury stock(9,625)(9,624)

Total stockholders’ equity

274,113279,717

Other securities valuation difference(60)(1,911)

Deferred gains or losses on hedges, net of taxes

279

(105)

Valuation difference and translation adjustments

Land revaluation(6,299)(6,299)Translation adjustments(10,662)(13,755)

Total valuation difference and translation adjustments(16,743)(22,071)

Stock subscription rights

1,465

1,468

Minority interests

1,471

1,465

260,307

260,579

346,108

363,444

Total net assets
Total liabilities and net assets

12(2) Quarterly Consolidated Statements of Income(¥ million)
Prior 1st Quarter(From April 1, 2008
to June 30, 2008)

Current 1st Quarter(From April 1, 2009
to June 30, 2009)

Net sales

89,97975,729

Cost of sales

58,61050,374Gross profit

31,36825,354

Selling, general and administrative expenses

29,84028,113Operating income (loss)

1,528(2,758)Interest income

561

130

Dividend income

106

105

Amortization of negative goodwill

28

30

Equity in gain of affiliated companies

121

173

Foreign exchange gain

Non-operating income

257–

Gain on valuation of derivatives–

168

Other non-operating income

84

143

Total non-operating income

1,161

752

Interest expense

56

53

Foreign exchange loss–

117

Loss on valuation of derivatives

55–

Expense related to rental assets

42–

Other non-operating expenses

45

20

Non-operating expenses

Total non-operating expenses
Recurring income (loss)

199

190

2,490

(2,197)

1,563

6

Extraordinary income
Gain on sales of fixed assets
Gain on reversal of stock subscription rights–

2

Reversal of allowance for doubtful receivables

5

16

Other extraordinary income

2–

Total extraordinary income

1,571

25

Loss on sales of fixed assets

1

5Loss on impairment of fixed assets

38–

Special retirement expenses

662–

Litigation settlement

507

–

–

48

Other extraordinary loss

159

14

Total extraordinary loss

1,369

68

Income (loss) before income taxes and minority interests

2,692(2,240)

Income taxes

1,601

513

Extraordinary loss

Loss on disposal of fixed assets

Minority interests

73

92

Net income (loss)

1,018(2,846)13

(3) Quarterly Consolidated Statements of Cash Flows(¥ million)
Prior 1st Quarter(From April 1, 2008
to June 30, 2008)

Current 1st Quarter(From April 1, 2009
to June 30, 2009)

Cash flows from operating activities
Income (loss) before income taxes and minority interests

2,692(2,240)Depreciation and amortization

4,956

4,203

Loss on impairment of fixed assets

38–

Amortization of goodwill

993

1,015

Increase (decrease) in allowance for doubtful receivables

68

32

Increase (decrease) in provision

(167)

(476)

Interest and dividend income

(668)

(236)

Interest expense

56

53

Foreign exchange loss (gain)

(81)

14

Equity in loss (gain) of affiliated companies

(121)

(173)

Loss on disposal of fixed assets
Loss (gain) on sales of fixed assets
Loss on disposal of amusement facilities and machines
Loss (gain) on valuation of investment securities

36

48(1,561)

–

117

30

114

5

Decrease (increase) in trade receivables

22,071

23,663

Decrease (increase) in inventories(3,869)(4,792)

Investment for amusement facilities and machines(1,568)(877)

Increase (decrease) in trade payables(6,659)(8,215)

Increase (decrease) in accounts payable–other(8,967)(7,137)

Increase (decrease) in consumption tax payables(1,272)

(255)

Other

(2,335)398

Subtotal

3,871

5,059

687

240

Interest and dividends received
Interest paid

(36)

(83)

Income taxes paid

(6,880)(5,088)Net cash provided by (used in) operating activities(2,358)128

Payments for deposit in time deposits

(18)

(80)

Proceeds from withdrawal from time deposits

1,000

72

Purchases of property, plant and equipment(1,644)(1,568)Cash flows from investing activities

Proceeds from sales of property, plant and equipment

3,405

7

Purchases of intangible assets

(649)

(514)

Purchases of investment securities

(136)

–

Proceeds from sales of investment securities–

3

Acquisition of shares in consolidated subsidiaries, net ofcash acquired

–

(18)

(30)

(41)

Advances of loans receivableCollection of loans receivable

1

18

Guarantee money deposited

(278)

(177)

Proceeds from collection of guarantee money deposited

491

287

3

31

2,143

(1,980)Other
Net cash provided by (used in) investing activities14(¥ million)
Prior 1st Quarter(From April 1, 2008
to June 30, 2008)

Current 1st Quarter(From April 1, 2009
to June 30, 2009)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings–

182

Repayment of long-term debt

–

(41)

Repayment of lease obligations
Payments into fund trust for purchase of treasury stock
Purchase of treasury stock
Dividends paid

–

(21)

(12,000)

–

(3)

–

(3,053)(2,896)

Dividends paid to minority interests

(76)

(51)

Net cash used in financing activities(15,132)(2,828)

Effect of exchange rate changes on cash and cash equivalents(4,982)

2,164

Net increase (decrease) in cash and cash equivalents(20,330)(2,515)

Cash and cash equivalents at beginningof period

129,289

110,037

1,142

270

Increase in cash and cash equivalents due to merger with
non-consolidated subsidiaries–

61

Decrease in cash and cash equivalents due to company split

–

(45)

110,102

107,808

Increase in cash and cash equivalents due to consolidation of
additional subsidiaries

Cash and cash equivalents at end of period15(4) Notes on Premise of Going Concern
No items to report(5) Segment Information[By business segment]
Prior 1st quarter (From April 1, 2008 to June 30, 2008)(¥ million)

Toys and
Hobby
Business

Amusement
Facility
Business

Game
Contents
Business

NetworkBusiness

Visual andMusic
Content
Business

Other
Businesses

34,77919,34924,136

2,537

6,993

2,183

89,979–89,979(2) Inter-segment
sales and transfers

611

121

1,377

54

253

2,639

5,057

(5,057)–

Total

35,39019,47025,514

2,591

7,247

4,822

95,036(5,057)

89,979Operating income (loss)

1,994

69

(214)

174

(234)

206

1,996

(467)

1,528

Total

Eliminations
Consolidated
andCorporate

Net sales(1) To externalcustomers

Current 1st quarter (From April 1, 2009 to June 30, 2009)(¥ million)

Toys and
Hobby
Business

Game
Contents
Business

Visual andMusic
Content
Business

31,073

19,177

7,691

15,787

1,998(2) Inter-segment
sales and transfers

668

1,032

305

48

Total

31,741

20,2107,997

Operating income (loss)

1,874(4,136)(13)

Amusement
Facility
Business

Other
Businesses

Eliminations
andCorporate

Consolidated

75,729–75,729

2,485

4,540

(4,540)15,835

4,484

80,269(4,540)75,729(45)

36(2,284)(474)(2,758)Total

Net sales(1) To externalcustomers

Notes: 1.
2.

–

Business segment classifications are in accordance with classifications adopted for internal management
purposes.
Principal products in each business segment:(1) Toys and Hobby Business:
Toys, candy toys, production for vending machines, cards, plastic
models, apparel, sundries(2) Game Contents Business:
Home-use video game software, commercial-use video gamemachines, mobile content, prizes for amusement arcade machines(3) Visual and Music Content Business: Video products, visual software, on-demand video distribution,
music software(4) Amusement Facility Business:
Amusement facilities operation(5) Other Businesses:
Transportation and storage of products, leases, real estate
management, printing, development and sales of environmental
devices16

3.

Changes in business segments
On April 1, 2009, for the further growth expected in the network-related market, an absorption-type merger
was executed between the Company’s consolidated subsidiary Bandai Networks Co., Ltd. (the extinct company)
and the Company’s consolidated subsidiary NAMCO BANDAI Games Inc., (the surviving company). As aresult of a review of business segments that accompanied this merger, it was decided to merge the Network
Business segment with the Game Contents Business segment from the first quarter because they had similarbusiness characteristics such as contents of services, content development, and support for multiple media.
The table below presents the results of first quarter of the previous fiscal year (business segment
information) under the new business segments.
(¥ million)
Visual andAmusement
Music
Other
Facility
Businesses
Content
Business
Business

Eliminations
Consolidated
andCorporate

Toys and
Hobby
Business

Game
Contents
Business

34,77926,673

6,993

19,3492,183

89,979–89,979(2) Inter-segment
sales and transfers

611

1,336

253

121

2,639

4,961

(4,961)–

Total

35,39028,0107,247

19,470

4,822

94,941(4,961)

89,979Operating income (loss)

1,994

(40)

(234)

69

206

1,996

(467)

1,528

Total

Net sales(1) To externalcustomers[By geographic segment]
Prior 1st quarter (From April 1, 2008 to June 30, 2008)
Japan
Net sales(1) To external customers(2) Inter-segment sales
and transfers

Americas(¥ million)
Europe

Asia

Total

Eliminations
Consolidated
andCorporate

67,674

9,158

10,142

3,004

89,979–89,979

2,941

546

2

4,814

8,304

(8,304)–

Total

70,616

9,704

10,144

7,818

98,283(8,304)

89,979Operating income (loss)

889

(279)

1,353

428

2,392

(863)

1,528

Current 1st quarter (From April 1, 2009 to June 30, 2009)
Japan
Net sales(1) To external customers(2) Inter-segment sales
and transfers

Americas(¥ million)

Europe

Asia

Total

Eliminations
Consolidated
andCorporate

57,941

7,691

6,940

3,155

75,729–75,729

3,025

866

11

4,769

8,672

(8,672)–

Total

60,966

8,558

6,951

7,924

84,401(8,672)75,729Operating income (loss)(1,393)(1,860)547

562(2,143)(615)(2,758)Notes: 1.

Methods for classifying geographic segments and principal countries and regions(1) The Company classifies geographic segments by such factors as degree of geographic closeness,similarities in economic activities, and mutual relationship of business activities.

17

(2) Principal countries and regions belonging to each geographic segmenta.

Americas:

United States and Canadab.

Europe:France, United Kingdom and Spain

c.

Asia:

Hong Kong, Thailand, South Korea and China[Overseas sales]
Prior 1st quarter (From April 1, 2008 to June 30, 2008)
Americas
I.

Overseas sales (¥ million)

II.

Consolidated sales (¥ million)

Europe

Asia

Total

9,386

10,473

3,740

23,600–––89,979

10.4

11.6

4.2

26.2

III. Overseas sales as a ratio ofconsolidated sales (%)

Current 1st quarter (From April 1, 2009 to June 30, 2009)
Americas
I.

Overseas sales (¥ million)

II.

Consolidated sales (¥ million)

III. Overseas sales as a ratio ofconsolidated sales (%)
Notes: 1.
2.

Europe

Asia

Total

8,270

7,050

3,599

18,920–––75,729

10.9

9.3

4.8

25.0

Overseas sales represent the total of sales generated in countries and regions other than Japan by the Company
and its consolidated subsidiaries.
Methods for classifying geographic segments and principal countries and regions(1) The Company classifies geographic segments by such factors as degree of geographic closeness,similarities in economic activities, and mutual relationship of business activities.
(2) Principal countries and regions belonging to each geographic segmenta.

Americas:

United States, Canada and Latin Americab.

Europe:France, United Kingdom, Spain, the Middle East and Africa

c.

Asia:

Hong Kong, Singapore, Thailand, South Korea, Australia, China and Taiwan(6) Notes on Significant Changes in the Amount of Stockholders’ Equity
No items to report18

(7) Significant Subsequent Event(Concerning the additional acquisition of shares of Distribution Partners S.A.S.)
NAMCO BANDAI Games Europe S.A.S., the Company’s wholly owned subsidiary, received advance notice from AtariEurope S.A.S. that it would elect to exercise put options and sell 66% of the shares of Distribution Partners S.A.S. held by
Atari Europe S.A.S. to the Group. After negotiating the detailed conditions of the aforesaid options, the Group agreed tomake changes to the Share Purchase Agreement with Atari Europe S.A.S. on July 1, 2009.
Consequently, the Company has acquired 100% of the shares of Distribution Partners S.A.S. and has made it a wholly
owned subsidiary of the Company.
From July 20, 2009, Distribution Partners S.A.S. changed its name to NAMCO BANDAI Partners S.A.S.

1. Purpose of acquisition of shares
The Group aims to strengthen its overseas operations as one of its medium to long-term business strategies. Up until
present, for game software sales in the Europe region, the Group has been outsourcing game software distribution tooutside partners on the basis of individual titles. Through this investment, the Group aims to bolster the management
structure in Europe by building its own sales network and achieve greater synergy with existing businesses.
2. Overview of company acquired as new subsidiary
Name

Distribution Partners S.A.S.

Business activities

Distribution of products for video games, PC and other electronic devices

Location

Lyon, France

Capital35,037,000 euros

3. Date of share purchase
July 7, 2009
4. Number and value of shares to be acquired, acquisition price and our shareholding before and after transfer(1) Shares owned before transfer

11,912,580 shares(34% of total shares)(2) Number of shares to be acquired

23,124,420 shares(3) Shares owned after transfer

35,037,000 shares(100% of total shares)(4) Acquisition price35 million euros(Total amount based on 100% of share ownership)

5. Other information
There is a possibility that the acquisition price could be amended in the future on account of the circumstances of the
net debt of Distribution Partners S.A.S. as of June 30, 2009.

19