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

November 7, 2017

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

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
November 7, 2017

Consolidated Financial Report for the Second 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:
November 10, 2017
Scheduled starting date for dividend payments:
December 7, 2017
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 Second Quarter of the Fiscal Year Ending March 31, 2018
(April 1, 2017 to September 30, 2017)(1) Consolidated Operating Results (For the Six Months Ended September 30, 2017)

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

Net sales¥ million
308,846%
4.8

294,569

8.0

Profit attributable toowners of parent¥ million%
28,196(6.5)(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
34,941 (10.2)
35,690(6.8)
38,90424.9

Basic earnings per share

38,291

15.3

Diluted earnings per share¥¥
Second Quarter of the Fiscal Year
128.35128.31Ending March 31, 2018
Second Quarter of the Fiscal Year30,17032.5
137.34137.30Ended March 31, 2017
(Note) Comprehensive income: 37,343 million yen [77.6%] (FY2018.3 2Q), 21,028 million yen [(0.6)%] (FY2017.3 2Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of September 30, 2017499,952
371,113
74.1
As of March 31, 2017
488,032
348,784
71.3(Reference) Equity: 370,240 million yen (as of September 30, 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

Total

Fiscal Year Ended March 31, 2017–¥82.00Fiscal Year Ending March 31, 2018–
Fiscal Year Ending March 31, 2018–¥12.00¥24.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2018: No
Concerning the projected amount of the year-end cash dividend for the fiscal year ending March 31, 2018, the stable dividend
portion is stated based on the Company’s basic policy on the distribution of profits. The year-end cash dividend for the fiscal year
ending March 31, 2018, is scheduled to be resolved by the Company in light of the consolidated operating results and otherfactors.
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
620,000(0.0)
57,000(9.9)
58,000(8.4)
40,000(9.4)
182.07(Note) Revision to the projections: No* 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 8 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, 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
2,298,975 shares
As of September 30, 2017
2,334,579 shares
As of March 31, 2017c) Average number of shares during the period (cumulative from the beginning of the fiscal year)
219,680,633 shares
For the Second Quarter of the Fiscal Year Ending March 31, 2018
For the Second Quarter of the Fiscal Year Ended March 31, 2017219,677,540 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 Second Quarter” on page 3 of the attached material for matters pertaining to the earnings projections.
- To obtain Financial Highlights:
The Financial Highlights will be posted on the Company’s website on November 7, 2017.

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 .............................................. 3

2. Consolidated Financial Statements and Significant Notes ................................................................ 4(1) Consolidated Balance Sheets.............................................................................................................................................. 4(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ................................... 6(Consolidated Statements of Operations) ........................................................................................................................... 6(Consolidated Statements of Comprehensive Income)....................................................................................................... 7(3) Notes to Consolidated Financial Statements ...................................................................................................................... 8(Notes on Premise of Going Concern) ............................................................................................................................... 8(Notes on Significant Changes in the Amount of Stockholders’ Equity) ........................................................................... 8(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements) .............................. 8(Segment Information) ....................................................................................................................................................... 8-1-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, 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 byuncertainty 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 as part of efforts
to strengthen the “IP Axis Strategy” that aims to maximize IP value through the provision of the best products and services
at the best possible times. The Group also worked to expand its IP lineup, business fields and areas in overseas.
In the second quarter (six 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 second quarter (six months) were net sales of 308,846 million yen(year-on-year increase of 4.8%), operating profit of 34,941 million yen (year-on-year decrease of 10.2%), recurring profit of
35,690 million yen (year-on-year decrease of 6.8%), and profit attributable to owners of parent of 28,196 million yen (yearon-year decrease of 6.5%).
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 for adults
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 adults continued gaining in popularity.
In North America and Europe, products of the Power Ranger series sold steadily. However, the Toys and Hobby Businessoverall 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 98,135 million yen (year-on-year decrease of 5.5%), andsegment profit was 5,557 million yen (year-on-year decrease of 36.7%).
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, in Japan,
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 North America and Europe, and repeat sales of existing titles werefavorable. In the amusement business, the Group’s existing amusement facilities in Japan performed favorably, and the Groupalso took measures such as new store openings and development of stores in new business formats. In arcade games, theGroup worked to expand stably, mainly in popular series, while proactively launching machines and facilities utilizing virtual
reality (VR) as a new initiative combining new technology.
As a result, net sales in the Network Entertainment Business were 190,336 million yen (year-on-year increase of 13.8%),
and segment profit was 25,788 million yen (year-on-year increase of 7.0%).
Visual and Music Production Business
As for Visual and Music Production Business, earnings declined from the same period of the previous fiscal year, whenhigh-margin products had grown in popularity, as the Group is planning to develop products linked with new productions in
its key IP mainly from the third quarter onward. In the second quarter (six months), the Group conducted productdevelopment for existing key IP products such as the Mobile Suit Gundam series, the LoveLive! series, and the GIRLS und-2-

PANZER series, while also building up public interest in its new productions. Earnings also saw a contribution from license
revenue related to products such as the LoveLive! series.
As a result, net sales in the Visual and Music Production Business were 23,392 million yen (year-on-year decrease of
15.0%), and segment profit was 5,517 million yen (year-on-year decrease of 31.5%).
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.
Net sales in the Other Businesses were 12,894 million yen (year-on-year decrease of 1.2%), and segment profit was 218
million yen (year-on-year decrease of 62.6%).
(2) Explanation Regarding Financial Position
At the end of the second quarter of the fiscal year ending March 31, 2018, total assets stood at 499,952 million yen, an
increase of 11,920 million yen from the end of the previous fiscal year. The main factors were increases of 3,397 million yen
in finished goods and merchandise, 8,936 million yen in work in process, 36,430 million yen in property, plant and equipment
mainly due to the acquisition of land, and 19,706 million yen in investment securities, despite a decrease of 59,254 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 128,839 million yen, a decrease of 10,409 million yen from the end of the previous fiscal
year. The main factor was a decrease of 10,028 million yen in other current liabilities due to decreases in accrued income
taxes and accrued bonuses.
Total net assets stood at 371,113 million yen, an increase of 22,329 million yen from the end of the previous fiscal year.
The main factors were increases of 12,976 million yen in retained earnings due to the recording of 28,196 million yen in
profit attributable to owners of parent, and 6,177 million yen in unrealized gains or losses on other securities, net of tax,
despite cash dividends paid of 15,385 million yen.
As a result, the equity ratio became 74.1% compared with 71.3% at the end of the previous fiscal year.
(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
The consolidated projections for the fiscal year ending March 31, 2018, have not been revised in light of factors that
include the coming Christmas and New Year selling season, the largest selling season of the year, and elements of uncertainty
regarding the future market environment and trends in each business segment.
The fiscal year ending March 31, 2018 is the final fiscal year of the Mid-term Plan that started in April 2015, and thenext Mid-term Plan is scheduled to begin from April 2018. In the fiscal year ending March 31, 2018, working toward thenext Mid-term Plan, the Group will intensify its efforts on the key strategies of “Accelerate Evolution in IP Axis Strategy,”“Gain Momentum in Global Markets,” and “Empower and Innovate Business Model,” based on the results and issues thus
far.

-3-

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

Current 2nd quarter(As of September 30, 2017)

AssetsCurrent assets
Cash and time deposits

205,516

146,262

Trade receivables

75,51978,522Finished goods and merchandise

14,466

17,864Work in process

28,82337,759Raw materials and supplies

3,398

3,592

Other current assets

30,51235,176

(453)

(632)

357,782

318,544

Property, plant and equipment

52,184

88,615Intangible assets

9,686

9,376

Investment securities

39,20258,909Other investments and assets

30,83726,047

Allowance for doubtful receivables(1,662)(1,539)Total investments and other assets

68,37883,417

Allowance for doubtful receivables
Total current assets
Fixed assets

Investments and other assets

Total fixed assets
Total assets-4-

130,249

181,408

488,032

499,952(¥ million)
Prior Fiscal Year(As of March 31, 2017)

Current 2nd quarter(As of September 30, 2017)

Liabilities
Current liabilities
Trade payables

64,17364,775

Provision

3,463

2,110

Other current liabilities

58,47348,445

Total current liabilities

126,110

115,332

Net defined benefit liability

5,766

5,672

Other long-term liabilities

7,371

7,834

Total long-term liabilities

13,13813,507139,248

128,839

10,00010,000Long-term liabilities

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

52,064

52,164Retained earnings

297,984

310,961

Treasury stock(2,423)(2,386)

Total stockholders’ equity

357,626

370,739

7,884

14,062

210

253

Accumulated other comprehensive income
Unrealized gains or losses on other securities, net of tax
Deferred gains or losses on hedges, net of tax
Revaluation reserve for land, net of tax(5,693)(5,867)

Foreign currency translation adjustments(8,725)(6,022)Remeasurements of defined benefit plans, net of tax(3,195)(2,925)

Total accumulated other comprehensive income(9,519)(499)

Subscription rights to shares

99

99

Non-controlling interests

577

773

348,784

371,113

488,032

499,952

Total net assets
Total liabilities and net assets-5-(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 2nd quarter(From April 1, 2016
to September 30, 2016)

Current 2nd quarter(From April 1, 2017
to September 30, 2017)

Net sales

294,569

308,846

Cost of sales

182,996

198,430

Gross profit

111,573

110,415

Selling, general and administrative expenses

72,66975,474

Operating profit

38,90434,941Non-operating income
Equity in gain of affiliated companies

366

462

Other non-operating income

643

1,048

Total non-operating income

1,009

1,510

Non-operating expenses
Foreign exchange losses

1,107

–

Provision of allowance for doubtful accounts

130

537

Other non-operating expenses

383

223

Total non-operating expenses

1,621

761

38,29135,690Gain on sales of fixed assets

170

45

Gain on sales of investment securities

71–

Other extraordinary income

33–

Total extraordinary income

275

45

Loss on impairment of fixed assets

326

458

Other extraordinary loss

330

115

Recurring profit
Extraordinary income

Extraordinary loss

Total extraordinary loss

656

574

Profit before income taxes

37,91035,162

Income taxes

7,786

7,012

Profit30,12328,149(46)(47)

30,17028,196

Loss attributable to non-controlling interests
Profit attributable to owners of parent-6-

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 2nd quarter(From April 1, 2016
to September 30, 2016)
ProfitCurrent 2nd quarter(From April 1, 2017
to September 30, 2017)30,12328,149(1,118)

5,997

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

(337)

42

(7,898)2,702

Remeasurements of defined benefit plans, net of tax

205

270

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

53

180

Foreign currency translation adjustments

Total other comprehensive income
Comprehensive income(9,095)

9,194

21,02837,34321,07437,390(46)(47)

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests-7-

(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 second quarter, and next by multiplying the profit before
income taxes by such estimated effective tax rate.
(Segment Information)
Segment information
I. Prior 2nd quarter (From April 1, 2016 to September 30, 2016)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable Segments
Toys and
Hobby
Business

Visual and
Network
Music
Entertainment
Production
Business
Business

Subtotal

Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To external customers

99,109164,951

25,968290,0294,540

294,569–

294,569

Inter-segment sales
and transfers

4,683

2,309

1,535

8,529

8,515

17,044(17,044)–

Total

103,792

167,261

27,504

298,558

13,056311,614(17,044)294,569

Segment profit

8,781

24,091

8,054

40,928583

41,511(2,607)38,904

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 2,607 million yen deducted from segment profit as adjustment are a deduction of 298 million yen
in inter-segment eliminations, and a deduction of 2,308 million yen in corporate expenses that cannot be allocatedto any reportable segment. The corporate expenses are mainly costs related to the administration division that has
not been attributed to a reportable segment.
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.

-8-II. Current 2nd quarter (From April 1, 2017 to September 30, 2017)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable Segments
Toys and
Hobby
Business

Visual and
Network
Music
Entertainment
Production
Business
Business

Subtotal

Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To external customers

93,969189,281

21,016304,267

4,578

308,846–

308,846

Inter-segment sales
and transfers

4,166

1,054

2,376

7,597

8,316

15,913(15,913)–

Total

98,135

190,336

23,392

311,864

12,894

324,759(15,913)308,846

Segment profit

5,557

25,7885,517

36,863

218

37,082(2,140)34,941

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 2,140 million yen deducted from segment profit as adjustment are an addition of 296 million yen
in inter-segment eliminations, and a deduction of 2,436 million yen in corporate expenses that cannot be allocatedto any reportable segment. The corporate expenses are mainly costs related to the administration division that has
not been attributed to a reportable segment.
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 and Hobby
Business.
Segment information of the previous second quarter (six months) is prepared and disclosed based on the reportablesegment classifications after the change.
3. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.

-9-