Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2011

November 5, 2010DISCLAIMER- 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.

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

November 5, 2010

Consolidated Financial Report for the Second Quarter of
the Fiscal Year Ending March 31, 2011 (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, 2010
Scheduled starting date for dividend payments:
December 6, 2010
The additional materials of the Financial Results for the Second Quarter: Yes
The information session of the Financial Results for the Second Quarter: Yes* Figures are in millions of yen, rounded down
1. Consolidated Results for the Second Quarter of the Fiscal Year Ending March 31, 2011
(April 1, 2010 to September 30, 2010)(1) Consolidated Operating Results (For the second quarter ended September 30, 2010)(Percentages indicate year-on-year changes.)
Operating income
Recurring income

Net sales

Second Quarter of the Fiscal
Year Ending March 31, 2011
Second Quarter of the Fiscal
Year Ended March 31, 2010

¥ million
173,595%
0.5¥ million
5,067

%
–

¥ million
5,006

%
–

172,733(9.5)(2,615)–(2,866)–

Net income

Second Quarter of the Fiscal
Year Ending March 31, 2011
Second Quarter of the Fiscal
Year Ended March 31, 2010

Net income per share

Net income per share(diluted)¥ million(1,930)%–¥(8.00)¥–(6,038)–(25.02)–(2) Consolidated Financial Position
Total assets

As of September 30, 2010
As of March 31, 2010

¥ million
303,710
325,935

Net assets

Equity ratio¥ million
217,854
229,012(Reference)
Equity: 216,167 million yen (as of September 30, 2010), 226,666 million yen (as of March 31, 2010)

%
71.2
69.5

Net assets per share¥895.27938.74

2. Cash Dividend

End offirst quarter
Fiscal Year Ended March 31, 2010

Annual cash dividend
End ofFiscalthird quarteryear-end¥12.00–¥12.00End ofsecond quarter

Total¥24.00–Fiscal Year Ending March 31, 2011–¥12.00Fiscal Year Ending March 31, 2011–¥12.00¥24.00(Projections)* Revision to the projections of cash dividend for the Fiscal Year Ending March 31, 2011: No* The stable portion of the cash dividend is given in the projections for the Fiscal year-end of the Fiscal Year Ending March 31, 2011 basedon the Company’s basic policy regarding appropriation of profits. Thus, the actual Fiscal year-end cash dividend will be decided
according to the consolidated financial results.

3. Consolidated Projections for the Fiscal Year Ending March 31, 2011 (April 1, 2010 to March 31, 2011)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
400,000
5.7
11,000483.9
10,500
450.4
1,800
–
7.45
* Revision to the projections: Yes

4. Other Information (For details, please refer to “2. Other Information” on page 5 of the Attached Material)(1) Changes in Significant Subsidiaries during the Second Quarter: No
Note: Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation(2) Application of Simplified Accounting and Special Accounting for the Second Quarter: Yes
Note: Application of Simplified Accounting and Special Accounting for Preparing the Quarterly Consolidated Financial
Statements(3) Changes in Accounting Policies, Procedures, and Methods of Presentationa) Changes due to revisions to accounting standards and other regulations: Yesb) Changes due to other reasons: No
Note: Change in Significant Accounting Policies, Procedures, and Methods, which are stated in “Change in Important Matters
in Preparing Quarterly Consolidated Financial Statements”.
(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of period (including treasury stock)
As of September 30, 2010
250,000,000 shares
As of March 31, 2010
250,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of September 30, 2010
8,544,786 shares
As of March 31, 2010
8,540,776 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the Second Quarter ended September 30, 2010
241,455,138 shares
For the Second Quarter ended September 30, 2009
241,349,257 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 financial statements areunder way.
* Explanation on appropriate use of the projections of business results, etc.:
Consolidated projections for the fiscal year ending March 31, 2011 (announced on August 5, 2010) are revised in this report.
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. Please refer to the section of “(3) Qualitative Information Regarding Consolidated Projections” of “1. Qualitative Information
Regarding Consolidated Results for the Second Quarter” on pages 4-5 of the attached material to the quarterly financial results report for
matters pertaining to the earnings projections.

Attached Material
Index
1. Qualitative Information Regarding Consolidated Results for the Second Quarter ...................... 2(1) Qualitative Information Regarding Consolidated Operating Results...................................................................... 2(2) Qualitative Information Regarding Consolidated Financial Position ...................................................................... 3(3) Qualitative Information Regarding Consolidated Projections.................................................................................. 4

2. Other Information................................................................................................................................ 5(1) Summary of Changes in Significant Subsidiaries ...................................................................................................... 5(2) Summary of Simplified Accounting and Special Accounting .................................................................................... 5(3) Summary of Changes in Accounting Policies, Procedures, and Methods of Presentation...................................... 6

3. Consolidated Financial Statements..................................................................................................... 7(1) Quarterly Consolidated Balance Sheets ...................................................................................................................... 7(2) Quarterly Consolidated Statements of Operations .................................................................................................... 9(3) Notes on Premise of Going Concern .......................................................................................................................... 10(4) Segment Information .................................................................................................................................................. 10(5) Notes on Significant Changes in the Amount of Stockholders’ Equity ................................................................... 13

-1-

1.

Qualitative Information Regarding Consolidated Results for the Second Quarter(1)

Qualitative Information Regarding Consolidated Operating Results
During the second quarter (six months) of the fiscal year ending March 31, 2011, while recovery was evident in someparts of the economy, there continues to be uncertainty towards the economy, including the entertainment industry, as theeffect of weak consumption is being felt amidst international financial instability, an unfavorable employment situation, thesharp rise in the yen and other factors.
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,” and it is further developing its global
management foundation, based on the three-year Mid-term Business Plan that started in April 2009. Moreover, the Group
commenced the “BANDAI NAMCO Group Restart Plan” in April 2010, for the purpose of a more assured implementationof this global management foundation, and it carried out steps to transform itself into a speedy Group, improve its
profitability and strengthen its financial standing.
On the business front, the long-established character toys and card products posted strong performances in the Toys andHobby Business in Japan. In addition, the Group benefitted from certain achievements, particularly in the Content Businessand the Amusement Facility Business, through a range of measures being implemented according to the Restart Plan.
Consequently, the Group’s consolidated results for the second quarter (six months) were net sales of 173,595 million
yen (year-on-year increase of 0.5%), operating income of 5,067 million yen (compared with an operating loss of 2,615
million yen for the same period of the previous fiscal year), and recurring income of 5,006 million yen (compared with arecurring loss of 2,866 million yen for the same period of the previous fiscal year). Furthermore, as a result of recognizing
extraordinary loss from loss on valuation of investment securities and the loss on adjustment for changes of accounting
standard for asset retirement obligations, the Group recorded a net loss of 1,930 million yen (compared with a net loss of
6,038 million yen for the same period of the previous fiscal year).

Operating Results by Segment
Toys and Hobby BusinessIn the Toys and Hobby Business, long-established character toys, such as the KAMEN RIDER series and HEARTCATCH PRETTY CURE !, posted strong performance figures in Japan. Another toy popular in Japan was VooV, the new
toy vehicle that was launched to expand the target population. The digital card game DATA CARDDASS and the card
game PRO BASEBALL OWNERS LEAGUE that can be played in conjunction with an online game were also strong
contributors to performance.
Meanwhile, overseas, the BEN10 character toys posted solid performance figures. In North America and Europe,
the Group started to expand into new categories and content in the aim of achieving growth in the medium- tolong-term, but the results of such efforts were yet to appear in the second quarter (six months).
As a result, net sales in the Toys and Hobby Business were 72,224 million yen, and segment profit was 7,072
million yen.

Content BusinessIn the Content Business, new titles in home video game software that were released as potential candidates for new
franchises, particularly overseas performed below the planned targets. However, character games such as ONE PIECEGIGANT BATTLE! for the Nintendo DS and Another Century’s Episode: R for the PlayStation 3 enjoyed popularity in-2-

Japan thanks to a speedier response to meet customer needs.
In arcade game machines, performance was solid, particularly with respect to Deadstorm Pirates, which began
rollout in the previous fiscal year, and popular character prizes. In visual and music content, favorable package softwaresales of Gundam UC (Unicorn) and the management principles of selection and concentration of titles led to improved
profitability. However, in the mobile content, a decline in fee-paying subscribers led to the posting of weak
performance figures.
Note that due to impairment loss on goodwill related to certain subsidiaries that was recognized in the previous
fiscal year, amortization of goodwill for the second quarter (six months) has declined compared with the same period of
the previous fiscal year. Fixed costs also declined due to the implementation of efficiency measures.
As a result, net sales in the Content Business were 71,452 million yen, and segment loss was 2,600 million yen.

Amusement Facility BusinessIn the Amusement Facility Business, the Group implemented different marketing strategies for each customer
segment in Japan. As a result, solid performance figures were posted, particularly thanks to stores that have beendifferentiated by providing the experience of a unique world-view of characters. Existing-facility sales were 99% of the
figure for the same period of the previous fiscal year. In addition, profitability was boosted by the achievements ofvarious efficiency measures.
Overseas, although the Group posted weak performance figures in Europe amidst difficult market environment,
profitability in the Americas was improved due to the efficiency efforts that carried out in the previous fiscal year.
As a result, net sales in the Amusement Facility Business were 31,604 million yen, and segment profit was 1,520
million yen.

Facilities as of September 30, 2010
Directly Managed

Revenue-Sharing

Facilities

Facilities

279

852

Others

Total

3

1,134

Other Businesses
Other Businesses consist of companies that conduct operations, such as logistics support and building management
for each of the Group’s strategic business units. During the second quarter (six months), efforts were made to improvethe efficiency of these operations related to group support.
As a result, net sales in the Other Businesses were 8,701 million yen, and segment profit was 429 million yen.

(2)

Qualitative Information Regarding Consolidated Financial Position
At the end of the second quarter of fiscal year ending March 31, 2011, total assets stood at 303,710 million yen, adecrease of 22,225 million yen from the end of the previous fiscal year. The main factors were as follows. Although there
was an increase of 14,887 million yen in short-term investments due to an increase in investments by means such as
certificate of deposit, this was offset by a decrease of 32,476 million yen in cash and time deposits as a result of theaforesaid investments, income taxes paid, cash dividends paid and repayment of borrowings.
Total liabilities amounted to 85,856 million yen, a decrease of 11,067 million yen from the end of the previous fiscal-3-

year. The main factors of this decline were decreases of 4,073 million yen in advances received included in other current
liabilities, 2,230 million yen in trade payables, 1,184 million yen in short-term borrowings due to repayment, and 1,666
million yen in long-term borrowings included in other long-term liabilities due to repayment.
Total net assets stood at 217,854 million yen, a decrease of 11,158 million yen from the end of the previous fiscal year.
The main factors were decreases of 5,597 million yen in foreign currency translation adjustments due to currency
fluctuation and 4,842 million yen in retained earnings resulting from the cash dividends paid and the recording of net loss.
As a result, the equity ratio became 71.2% compared with 69.5% at the end of the previous fiscal year.
(3)

Qualitative Information Regarding Consolidated Projections
As for the future of the economy, taking into consideration the global financial instability, the weak individual

consumption and other factors, the current uncertainty is expected to continue and have an impact on the entertainment
industry, in which the Group is extensively involved.
Facing these circumstances, the Group intends to transform itself into a speedy Group, improve its profitability andstrengthen its financial standing based on the “BANDAI NAMCO Group Restart Plan” for the purpose of a more assured
implementation of the global management foundation adopted in the three-year Mid-term Business Plan that has been in
operation since April 2009.
Specifically, in the Toys and Hobby Business, our plan for Japan is to strengthen development of products of thelong-established character series such as KAMEN RIDER OOO (pronounced “O’s”), aimed at boys, and HEART CATCH
PRETTY CURE !, aimed at girls, and also development of Mobile Suit Gundam plastic models, which celebrated its 30th
anniversary. Furthermore, in addition to launching a new machine for the popular DATA CARDDASS, we will concentrate
our efforts in Japan on further strengthening new products such as PRO BASEBALL OWNERS LEAGUE and VooV, aiming
to expand the target population. Overseas, in addition to the BEN10 character toys, which have become a long-establishedcharacter series, we will launch girls’ toys such as POP PIXIE and pre-school toys such as POCOYO in order to expand
into new categories and new content.
In the Content Business, the Group will carry out a speedier rollout of its business under a new virtual organization
based on the Group’s content. Specifically, in character games in Japan, which struggled in the previous fiscal year, we aim
to boost profitability by supplying more selectively chosen content in a timely fashion. Also, in sales of arcade gamemachine, we will strengthen our rollout focused on Mobile Suit Gundam Extreme VS., the latest release of the popularseries. In addition, we aim to more speedily respond to new customer needs by launching video/game hybrid packs,
through content development aimed at SNS (Social Networking Services) as well as other means.
For the Amusement Facility Business, the Group will pursue a strategy of differentiation through the promotion of store
operations that provide the experience of the Group’s unique world-view of characters in Japan, while strengthening
profitability by continuing to implement various efficiency measures in Japan and overseas.
Based on the above, the Group’s consolidated projections for the full fiscal year ending March 31, 2011 for net sales,
operating income, and recurring income have not changed from the projections that were announced in Consolidated
Financial Report for the first quarter on August 5, 2010. Concerning net income, while certain subsidiaries, mostly sales
companies overseas, are falling deeper into deficit compared with the projections announced in August, the Group expects
an increase in income taxes accompanying increased profits mainly by subsidiaries in Japan. Consequently, theconsolidated projections have been revised from the projections announced in Consolidated Financial Report for the firstquarter on August 5, 2010. Please see page 5 for the details of the revision.
-4-

Revision to the consolidated projections for the full fiscal year
(April 1, 2010 to March 31, 2011)
Operating
IncomeNet Sales(¥ million)
Recurring
IncomeNet Income(Loss)Net Income(Loss) per SharePrevious projections (A)400,000

11,00010,5004,500

18.64 yen

Revised projections (B)400,000

11,00010,5001,800

7.45 yen

Change in amount (B–A)

–

–

–

(2,700)–Change (%)

–

–

–

(60.0)–

378,547

1,883

1,907

(29,928)(123.98) yen

Reference: Results for theprevious fiscal year
(April 1, 2009 to March 31, 2010)

2.

Other Information(1)

Summary of Changes in Significant Subsidiaries
No items to report(2)

Summary of Simplified Accounting and Special Accounting
a. Simplified accounting
i. 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
second quarter from what was calculated at the end of the previous fiscal year, debt default estimate was calculatedusing the debt default ratio and the like at the end of the previous fiscal year.

ii. Inventory valuation method
With respect to the calculation of inventories at the end of the current second quarter, physical inventories wereomitted 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.

iii. 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.

b. Special accounting
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.
Also, adjustment for income taxes is included in income taxes.

-5-

(3)

Summary of Changes in Accounting Policies, Procedures, and Methods of Presentation
a. Application of “Accounting Standard for Asset Retirement Obligations”“Accounting Standard for Asset Retirement Obligations” (ASBJ Statement No. 18, March 31, 2008) and “Guidanceon Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) were applied
from the current first quarter.
As a result of this change, gross profit, operating income and recurring income have each decreased by 43 million
yen and income before income taxes and minority interests decreased by 1,248 million yen. Also, the change in theamount of asset retirement obligations arising from the application of this accounting standard is 1,637 million yen.

b. Application of accounting standards for business combinations“Accounting Standard for Business Combinations” (ASBJ Statement No. 21, December 26, 2008), “AccountingStandard for Consolidated Financial Statements” (ASBJ Statement No. 22, December 26, 2008), “Partial Amendments
to Accounting Standard for Research and Development Costs” (ASBJ Statement No. 23, December 26, 2008),“Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, December 26, 2008), “Accounting Standard
for Equity Method of Accounting for Investments” (ASBJ Statement No. 16, December 26, 2008) and “Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ GuidanceNo. 10, December 26, 2008) were applied from the current first quarter.

-6-

3.

Consolidated Financial Statements(1)

Quarterly Consolidated Balance Sheets(¥ million)
Current 2nd Quarter
As of September 30, 2010

(Summary) Prior Fiscal YearAs of March 31, 2010

AssetsCurrent assets
Cash and time deposits

64,17096,647

Trade receivables

47,48652,726

Short-term investments

16,925

2,037

Finished goods and merchandise

14,271

12,817Work in process

29,55623,805

Raw materials and supplies

4,454

4,334

Other current assets

25,207

26,532

Allowance for doubtful receivables(1,092)(1,138)

Total current assets

200,979

217,762

45,17946,014

Other intangible assets

10,32912,501

Total intangible assets

10,32912,501Other investments and assets

49,141

51,463

Allowance for doubtful receivables(1,920)(1,807)

Total investments and other assets

47,22149,656

Fixed assets
Property, plant and equipment
Intangible assets

Investments and other assets

Total fixed assets

102,730

108,172

303,710

325,935

Trade payables

33,72535,956

Short-term borrowings

7,691

8,876

Accrued income taxes

6,335

8,239

Total assets
Liabilities
Current liabilities

Provision

1,886

3,204

Other current liabilities

26,42330,326

Total current liabilities

76,06286,604

Provision

2,742

2,565

Other long-term liabilities

7,051

7,753

Total long-term liabilities

9,793

10,31985,85696,923Long-term liabilities

Total liabilities-7-(¥ million)
Current 2nd Quarter
As of September 30, 2010

(Summary) Prior Fiscal YearAs of March 31, 2010

Net assets
Stockholders’ equity
Common stock

10,00010,000Additional paid-in capital

79,96079,960Retained earnings

158,611

163,454

Treasury stock(9,455)(9,455)

Total stockholders’ equity

239,115

243,958

Valuation difference and foreign currency translation
adjustments
Unrealized gains or losses on other securities, net of tax

56

19

Deferred gains or losses on hedges, net of tax

(15)

79

Land revaluation, net of tax(6,491)(6,491)

Foreign currency translation adjustments(16,497)(10,900)

Total valuation difference and foreign currency translation
adjustments(22,948)(17,292)

95

810

1,591

1,535

217,854

229,012303,710

325,935

Stock subscription rights
Minority interests
Total net assets
Total liabilities and net assets

-8-

(2)

Quarterly Consolidated Statements of Operations(¥ million)
Prior 2nd Quarter(From April 1, 2009
to September 30, 2009)

Current 2nd Quarter(From April 1, 2010
to September 30, 2010)

Net sales

172,733

173,595

Cost of sales

114,197111,231

Gross profit

58,53662,363

Selling, general and administrative expenses

61,15157,296

Operating income (loss)(2,615)

5,067Interest income

242

91

Non-operating income
Dividend income

143

158

Amortization of negative goodwill

61–

Other non-operating income

256

271

Total non-operating income

704

521

Interest expense

158

85

Equity in loss of affiliated companies

360

97

Non-operating expenses

Foreign exchange loss

356

334

Other non-operating expenses

80

66

Total non-operating expenses

956

582

(2,866)

5,006

Gain on sales of fixed assets

11

24

Gain on liquidation of subsidiaries

49–

Recurring income (loss)
Extraordinary income

Gain on transfer of business–

405

Reversal of allowance for doubtful receivables

17

119

Reversal of accrued retirement and severance benefits

12–

Reversal of provision for losses from business restructuring–

30

Gain on reversal of stock subscription rights

6715

Other extraordinary income–

144

Total extraordinary income

97

1,439

8

1

Loss on impairment of fixed assets

156

159

Loss on disposal of fixed assets

Extraordinary loss
Loss on sales of fixed assets

109–

Loss on valuation of investment securities

–

2,058

Loss on adjustment for changes of accounting standard for
asset retirement obligations

–

1,205

204

553

Other extraordinary loss

479

3,977

Income (loss) before income taxes and minority interests

Total extraordinary loss

(3,249)2,467

Income taxes

2,678

4,255

–

(1,787)110

143(6,038)(1,930)Loss before minority interests
Minority interests
Net loss

-9-

(3)

Notes on Premise of Going Concern
No items to report(4)

Segment Information[By Business Segment]
Prior 2nd quarter (From April 1, 2009 to September 30, 2009)

Net sales(1) To externalcustomers(2) Inter-segment
sales and transfers
Total
Operating income(loss)

Notes: 1.
2.

3.

(¥ million)

Toys and
Hobby
Business

Game
Contents
Business

Visual andMusic
Content
Business

65,22755,047

14,94433,593

3,919

172,733–

172,733

1,472

2,133

524

123

4,976

9,230

(9,230)–66,70057,181

15,46933,717

8,895

181,963(9,230)172,733

3,765(6,769)

362

1,056

19

(1,564)(1,050)(2,615)

Amusement
Facility
Business

Other
Businesses

Total

Eliminations
andConsolidated
Corporate

The industry segments used above are those used for internal management purposes.
Main products in each business segment:(1) Toys and Hobby Business:
Toys, candy toys, products for vending machines, cards, plastic
models, apparel, sundries(2) Game Contents Business:
Home-use video game software, arcade game machines, mobile
contents, prizes for amusement arcade machines(3) Visual and Music Content Business: Video contents, video 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, sales of environmental devices
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 current first quarter because they had
similar business characteristics such as contents of services, content development, and support for multiple
media.
The table below presents the results of the second quarter (six months) of the previous fiscal year (businesssegment information) under the new business segments.
(¥ million)

Net sales(1) To externalcustomers(2) Inter-segment sales
and transfers
Total
Operating income

4.

Toys and
Hobby
Business

Game
Contents
Business

Visual andMusic
Content
Business

Amusement
Facility
Business

Other
Businesses

Total

71,86558,727

15,61940,3304,253

190,795–

190,795

1,348

2,930

373

211

5,260

10,125(10,125)–

73,213
4,416

61,657501

15,993654

40,542
1,030

9,514
280

200,920
6,883(10,125)(1,307)

190,795
5,576

Eliminations
andConsolidated
Corporate

In the current second quarter, due to the new consolidation of Distribution Partners S.A.S. and its 18- 10 -

subsidiaries, total assets in the Game Contents Business increased by 19,601 million yen.
[By Geographic Segment]
Prior 2nd quarter (From April 1, 2009 to September 30, 2009)

Net sales(1) To externalcustomers(2) Inter-segment
sales and transfers
Total
Operating income(loss)

Note:(¥ million)
Eliminations
Consolidated
and Corporate

Japan

Americas

EuropeAsia,
excluding Japan

Total

134,457

13,414

17,8207,041

172,733–

172,733

5,848

1,630

78

9,073

16,631(16,631)–

140,305

15,044

17,89916,115

189,364(16,631)

172,733

2,682(3,808)

(819)

904

(1,040)(1,574)(2,615)

Definition of geographic segments and main countries and regions in geographic segments:(1) Foreign geographic segments are defined by geographic region, similarity of economic activities, andinterrelation of business activities.
(2) The main countries and regions in each geographic segment are as follows:a.

Americas:

United States and Canadab.

Europe:France, United Kingdom, Spain and Germanyc.

Asia, excluding Japan:

Hong Kong, Thailand, Korea, China and Australia

In the current second quarter, due to the new consolidation of NAMCO BANDAI Partners S.A.S. and its 18
subsidiaries, Germany was added to the Europe geographic segment and Australia to the Asia geographic
segment.
[Foreign Sales]
Prior 2nd quarter (From April 1, 2009 to September 30, 2009)
Americas
I

Foreign sales (¥ million)

II
III

Asia,
excluding Japan

EuropeTotal

14,66718,001

8,797

41,467

Consolidated sales (¥ million)

–

–

–

172,733

Share of sales to customers
outside Japan (%)

8.5

10.4

5.1

24.0

Notes: 1.
2.

Foreign sales are defined as total sales by the Company and its consolidated subsidiaries in countries andregions other than Japan.
Segmentation by country or by region and the main countries and regions in each geographic segment are as
follows:(1) Foreign geographic segments are defined by geographic region, similarity of economic activities, andinterrelation of business activities.
(2) The main countries and regions in each geographic segment are as follows:a.

Americas:

United States, Canada and Latin Americab.

Europe:France, United Kingdom, Spain, Germany, Middle East and Africac.

Asia, excluding Japan: Hong Kong, Singapore, Thailand, Korea, Australia, China and Taiwan

In the current second quarter, due to the new consolidation of NAMCO BANDAI Partners S.A.S. and its 18
subsidiaries, Germany was added to the Europe geographic segment.

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[Segment Information]
1. Overview of reportable segments
The reportable segments of the Company are components of the Group whose separate financial information isavailable. These segments are periodically evaluated by the Board of Directors in deciding how to allocate management
resources and in assessing the performance.
The Group is made up of (1) three strategic business units, one for each business domain, namely the Toys andHobby SBU, the Content SBU, and the Amusement Facility SBU, and (2) the affiliated business companies that mainly
serve a supporting role for these strategic business units. The major company of each strategic business unit leads theplanning and promotion of the business strategies of the strategic business unit for Japan and overseas.
Accordingly, the Group has the following three reportable segments: Toys and Hobby Business, Content Businessand Amusement Facility Business.
The Toys and Hobby Business conducts manufacturing and sales of toys, candy toys, products for vending
machines and other products. The Content Business conducts production and sales etc. of home-use video gamesoftware and video related products, and the manufacturing and sales of arcade game machines and others. The
Amusement Facility Business conducts the operation etc. of amusement facilities.

2. Information regarding the amounts of net sales and profit/loss by reportable segment
Current 2nd quarter (From April 1, 2010 to September 30, 2010)(¥ million)

Reportable Segments

Toys and
Hobby
Business

Content
Business

Amusement
Facility
Business

Other
Businesses
Total

Total

Adjustment(Note 1)

(Note 2)

Amountrecorded in
the quarterly
consolidated
statements ofoperations(Note 3)

Net sales
To external customers

70,602

68,25731,581

170,441

3,153

173,595–

173,595

Inter-segment sales andtransfers

1,621

3,194

22

4,839

5,547

10,386(10,386)–

Total

72,22471,452

31,604

175,280

8,701

183,982(10,386)

173,595

7,072(2,600)

1,520

5,991

429

6,421

(1,354)

5,067

Segment profit (loss)

Notes: 1.

2.

3.

The “Other Businesses” category is a business segment not included in reportable segments under which
operations such as logistics support and building management for each of the Group’s strategic business units
are classified.
Included in the 1,354 million yen deducted from segment profit as adjustment are 110 million yen as
inter-segment eliminations, and 1,465 million yen as corporate expenses that cannot be allocated to any
reportable segment. The corporate expenses are mainly costs related to the administrative division that have notbeen attributed to a reportable segment.
Segment profit (loss) is adjusted with operating income in the quarterly consolidated statements of operations.

3. Information regarding loss on impairment of fixed assets and goodwill by reportable segment
In the current second quarter, there was no recognition of any material loss on impairment of fixed assets, nor was
there recognition of any material changes in the amount of goodwill or material gains on negative goodwill.

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(Additional information)“Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ Statement
No. 17, March 27, 2009) and “Guidance on the Accounting Standard for Disclosures about Segments of an Enterpriseand Related Information” (ASBJ Guidance No. 20, March 21, 2008) were applied from the current first quarter.

(5)

Notes on Significant Changes in the Amount of Stockholders’ Equity
No items to report- 13 -