Consolidated Financial Report for the Fiscal Year Ended
March 31, 2016

May 11, 2016

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/)
May 11, 2016

Consolidated Financial Report for the Fiscal Year Ended March 31, 2016 (Japanese GAAP)
Representative:
Mitsuaki Taguchi, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Date of Ordinary General Meeting of Shareholders:June 20, 2016
Scheduled starting date for dividend payments:
June 21, 2016
Scheduled filing date of the annual security report:
June 21, 2016
The additional materials of the Financial Results:
Yes
The information session of the Financial Results:
Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Fiscal Year Ended March 31, 2016 (April 1, 2015 to March 31, 2016)(1) Consolidated Operating Results

Fiscal Year Ended
March 31, 2016
Fiscal Year Ended
March 31, 2015

Net sales¥ million
575,504%
1.8

565,486

11.4

Profit attributable toowners of parent¥ million%
34,583(8.0)(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
49,641(11.9)
50,774(14.5)
56,32026.1

Basic earnings per share

59,383

25.1

Diluted earnings per share¥
Fiscal Year Ended
157.43
March 31, 2016
Fiscal Year Ended
37,58850.0
171.10March 31, 2015
(Note) Comprehensive income: 27,377 million yen [(36.9)%] (FY2016.3), 43,356 million yen [32.9%] (FY2015.3)
ROE(Profit attributable toowners of parent / Net
assets)ROA(Recurring income /Total assets)¥
157.39171.08Operating margin(Operating income /Net sales)%%%
Fiscal Year Ended
11.2
11.4
8.6
March 31, 2016
Fiscal Year Ended
13.2
14.0
10.0
March 31, 2015
(Reference) Gain or loss from application of equity method: 1,508 million yen (FY2016.3), 1,025 million yen (FY2015.3)(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
As of March 31, 2016
448,336
317,304
70.6
As of March 31, 2015
441,763
303,512
68.6(Reference) Equity: 316,663 million yen (as of March 31, 2016), 302,893 million yen (as of March 31, 2015)

Net assets
per share¥
1,441.49
1,378.77

(3) Consolidated Statements of Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities¥ million
58,049¥ million(23,425)¥ million(16,123)

Cash and cash
equivalents at endof period¥ million
169,542

50,103(19,515)(12,591)

153,764

Fiscal Year Ended
March 31, 2016
Fiscal Year Ended
March 31, 2015
2. Cash Dividends

Fiscal Year Ended
March 31, 2015
Fiscal Year Ended
March 31, 2016

End offirstquarter¥––

Annual Cash Dividends
FiscalEnd of
End ofyear-end
third
secondquarterquarter
¥
¥
¥
12.00
–
50.00
12.00

–

40.00

Total

¥
62.00
52.00

Payout ratio
Dividend /Total(Consolidated) Net assets
dividend(Consolidated)
payment(Full year)¥ million%%
13,62736.2
4.8
11,429

33.0

3.7

–
12.00
–
12.00
24.00
Fiscal Year Ending
15.1
March 31, 2017
(Projections)(Note) Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending
March 31, 2017, the stable dividend portions are 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, 2017, will be considered by the Company in light of theconsolidated operating results and other factors.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2017 (April 1, 2016 to March 31, 2017)(Percentages indicate year-on-year changes.)
Basic earnings
Net sales
OperatingRecurring
Profit attributable
per share
incomeincometo ownersof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
275,000
0.8
23,000 (26.2)
23,500 (29.2)
16,500 (27.5)
75.11
September 30, 2016
Full Fiscal Year580,000
0.8
50,0000.7
51,0000.4
35,0001.2
159.32* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): Yes
Included: 1 company (BANDAI NAMCO ASIA CO., LTD.) Excluded: – company(Note) For more details, please refer to the section of “(5) Notes to Consolidated Financial Statements (Important Information
Constituting the Basis for Preparation of Consolidated Financial Statements)” of “4. Consolidated Financial Statements” onpage 19 of the attached material.
(2) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Yesb) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(Note) For more details, please refer to the section of “(5) Notes to Consolidated Financial Statements (Changes in Accounting
Policies)” of “4. Consolidated Financial Statements” on page 20 of the attached material.
(3) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
222,000,000 shares
As of March 31, 2016
As of March 31, 2015
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
2,321,565 shares
As of March 31, 2016
As of March 31, 2015
2,316,797 sharesc) Average number of shares during the period
For the Fiscal Year ended March 31, 2016
For the Fiscal Year ended March 31, 2015

219,679,282 shares
219,685,816 shares(Reference) Non-consolidated Information
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2016 (April 1, 2015 to March 31, 2016)(1) Non-consolidated Operating Results

Fiscal Year Ended
March 31, 2016
Fiscal Year Ended
March 31, 2015

Fiscal Year Ended
March 31, 2016
Fiscal Year Ended
March 31, 2015

Operating revenue¥ million%
29,241
21.1(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
25,69615.3
26,02315.2

24,1497.922,286

14.6

Profit¥ million
25,946%–¥118.05

Diluted earnings per share¥
118.02(3,685)–(16.77)–

Basic earnings per share

22,591

14.6(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
348,350
249,403
71.6
As of March 31, 2015
334,531
236,857
70.8(Reference) Equity: 249,304 million yen (as of March 31, 2016), 236,813 million yen (as of March 31, 2015)
As of March 31, 2016

Net assets
per share¥
1,134.26
1,077.42

2. Non-consolidated Projections for the Fiscal Year Ending March 31, 2017 (April 1, 2016 to March 31, 2017)(Percentages indicate year-on-year changes.)
ProfitOperating revenue
Recurring income
Basic earnings
per share¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
24,000(17.9)
20,000(23.1)
20,000(22.9)
90.99* Implementation status of audit
This Consolidated Financial Report was exempt from audit which was based on Financial Instruments and Exchange Law of Japan. Asof the fiscal year disclosing, audit for the consolidated financial statements is under way.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on management’s estimates, assumptions and projections at the timeof publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A numberof factors could cause actual results to differ materially from expectations. Please refer to the section of “(1) Analysis on Results ofOperations b. Future Outlook” of “1. Analysis on Results of Operations and Financial Position” on pages 3-4 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 May 11, 2016.

Attached Material
Index
1. Analysis on Results of Operations and Financial Position ................................................................ 2(1) Analysis on Results of Operations ...................................................................................................................................... 2(2) Analysis of Financial Position ............................................................................................................................................ 5(3) Basic Policy on the Distribution of Profits ......................................................................................................................... 6

2. Management Policies ............................................................................................................................ 7(1) Fundamental Management Policy ....................................................................................................................................... 7(2) Targets and Management Performance Indicators .............................................................................................................. 7(3) Medium- to Long-term Business Strategy .......................................................................................................................... 7(4) Issues to be Addressed ........................................................................................................................................................ 9

3. Basic Concept Regarding Selection of Accounting Standards........................................................ 10
4. Consolidated Financial Statements ....................................................................................................11(1) Consolidated Balance Sheets ............................................................................................................................................ 11(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income .................................. 13(Consolidated Statements of Operations) ......................................................................................................................... 13(Consolidated Statements of Comprehensive Income)..................................................................................................... 14(3) Consolidated Statements of Changes in Net Assets .......................................................................................................... 15(4) Consolidated Statements of Cash Flows ........................................................................................................................... 17(5) Notes to Consolidated Financial Statements ..................................................................................................................... 19(Notes on Premise of Going Concern) ............................................................................................................................. 19(Important Information Constituting the Basis for Preparation of Consolidated Financial Statements) .......................... 19(Changes in Accounting Policies) .................................................................................................................................... 20(Segment Information) ..................................................................................................................................................... 22(Per-Share Data) ............................................................................................................................................................... 28(Significant Subsequent Events) ...................................................................................................................................... 29

5. Other .................................................................................................................................................... 31
Changes in Directors and Audit & Supervisory Board Members ........................................................................................... 31-1-

1. Analysis on Results of Operations and Financial Position(1) Analysis on Results of Operations
a. Summary for the Period (April 1, 2015 to March 31, 2016)
During this fiscal year, the Japanese economy continued to moderately recover, supported by a recovery in personal
consumption, improved corporate profitability, and growth in purchasing demand from overseas visitors. However, theoutlook for the overall economy remained uncertain. Overseas, the global economy recovered at a moderate pace overall,
despite signs of more subdued growth in some regions.
In this environment, the BANDAI NAMCO Group (“the Group”) is targeting medium- and long-term growth under the
Vision of “NEXT STAGE: Empower, Gain Momentum and Accelerate Evolution” in the three-year Mid-term Plan thatstarted in April 2015. The Group has focused on creating and developing new IP (Intellectual Property: intellectual
property of characters), expanding targets, 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 has also initiated a tender offer to make WiZ Co., Ltd., a planning and development company for toys, a wholly
owned subsidiary. The Group is also working to expand IP lineup, business fields, and areas in the Asian region with highgrowth potential.
On the business front, while there were favorable sales in the Toys and Hobby Business, network content and overseas
home video game software in the Network Entertainment Business, and the Visual and Music Production Business, sales ofarcade game machines in the Network Entertainment Business struggled.
Consequently, the Group’s consolidated results at fiscal year-end were net sales of 575,504 million yen (year-on-yearincrease of 1.8%), operating income of 49,641 million yen (year-on-year decrease of 11.9%), recurring income of 50,774
million yen (year-on-year decrease of 14.5%), and profit attributable to owners of parent of 34,583 million yen(year-on-year decrease of 8.0%).

Operating Results by Segment
Operating results by segment are as follows.
Effective from this consolidated fiscal year, the Group changed the classification of its reportable segments.
Consequently, in year-on-year comparisons the figures for the previous fiscal year have been restated into the figures
for the classifications after the change.

Toys and Hobby BusinessIn the Toys and Hobby Business, in Japan, sales performed satisfactorily thanks to long-established IP products
such as Mobile Suit Gundam and Dragon Ball, while products of Yo-kai Watch became popular. Moreover, althoughcollectable toys for adults expected to contribute to broadening its base of target customers also became popular, there
was a decline in sales domestically in comparison with the previous fiscal year.
Overseas, in the Asian region, products of Mobile Suit Gundam and collectable toys for adults became popular. In
North America and Europe, products of the Power Rangers series sold steadily. In addition, certain results were realized
by changing to a system that controls functions such as planning and development in Japan, and creates dedicated sales
and marketing in North America and Europe.
As a result, net sales in the Toys and Hobby Business were 206,424 million yen (year-on-year decrease of 10.6%),
and segment income was 16,639 million yen (year-on-year decrease of 2.4%).
-2-

Network Entertainment BusinessIn the Network Entertainment Business, in home video game software, repeat sales of products including
DRAGONBALL XENOVERSE, which was launched in North America and Europe in the previous fiscal year, and salesof new titles of the BANDAI NAMCO Group, such as NARUTO SHIPPUDEN: Ultimate Ninja Storm 4, and new titlesof local third-party were strong. Moreover, in network content such as social games, game applications for smartphones
and PC online games, key titles already existing in Japan retained stable popularity, and the new title The
iDOLM@STER Cinderella Girls: Starlight Stage performed favorably and contributed to performance. The Group also
started provision of services overseas, including the Asian region. In addition, in amusement facilities, the Groupstarted implementing a range of measures, including targeting resources on key facilities and strengthening stores innew business formats, resulting in improved profitability. However, sales from arcade game machines struggled due tothe effects of uncertainty in the market.
As a result, net sales in the Network Entertainment Business were 320,941 million yen (year-on-year increase of
8.3%), and segment income was 23,930 million yen (year-on-year decrease of 18.3%).

Visual and Music Production BusinessIn the Visual and Music Production Business, LoveLive! School idol project, which is IP for which visual content
was developed in conjunction with music content and live events, became popular through the year due to synergies
with a movie release, products and services and live events. Moreover, visual package software of Mobile Suit Gundam
series sold favorably and contributed to performance.
As a result, net sales in the Visual and Music Production Business were 51,967 million yen (year-on-year increaseof 18.7%), and segment income was 11,665 million yen (year-on-year increase of 15.8%).

Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kindsof administration 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 to group support in an efficient manner.
As a result, net sales in the Other Businesses were 27,456 million yen (year-on-year increase of 1.7%), and segment
income was 1,123 million yen (year-on-year decrease of 23.2%).

b. Future Outlook
Looking ahead, although there are bright signs in Japanese and overseas economic trends, the business environment is
expected to remain beset by uncertainties, including the impact on personal consumption from uncertainties in the overallsociety and the overall economy, as well as economic trends in North America and Europe. Such factors are also expected
to have an impact on the entertainment industry, in which the Group is extensively involved, resulting in ongoing
uncertainty in this business environment.
Facing these circumstances, the Group started a new Mid-term Plan with the vision “NEXT STAGE: Empower, Gain
Momentum, and Accelerate Evolution” in April 2015. In the Mid-term Plan, the Group will further strengthen the “IP Axis
Strategy” to expand the value of its IPs through taking advantage of the worldview and unique characteristics of its IPs and-3-

providing the best products and services at the best possible times. In addition, aiming towards growing in the global
market, the Group will further strengthen business development in the area of high growth potential, which is the Asian
region.
For its main strategies in the Mid-term Plan, the Group will implement Business Strategies to “Accelerate Evolution in
IP Axis Strategy,” Region Strategies to “Gain Momentum in Global Markets” and Functional Strategies to “Empower andInnovate Business Model.” In its Business Strategies to “Accelerate Evolution in IP Axis Strategy,” the Group will not only
cultivate Group IP by such means as creating and obtaining IP, but also expand new IP business such as live events, expand
its target markets, and strengthen collaboration among its businesses. In its Region Strategies to “Gain Momentum in
Global Markets,” the Group will not only maintain its pursuit of becoming No. 1 in each of its markets in Japan, but also
proactively expand its business in Asia, where there is a promising outlook for future growth. In Americas and Europe, theGroup will implement initiatives aimed at maintaining its business foundations and expanding its businesses. Furthermore,in its Functional Strategies to “Empower and Innovate Business Model,” the Group will create and cultivate new IP
business for the next generation and push ahead with creating foundations for the implementation of its IP axis strategy inglobal markets.
In order to carry out these initiatives, in April 2015, the Group changed its organizational structure into one centered on
three SBUs (Strategic Business Units): the Toys and Hobby SBU, the Network Entertainment SBU, and the Visual andMusic Production SBU. The Group is pushing ahead with each of its strategies with a focus on these three SBUs. The Toysand Hobby SBU will aim to strengthen the IP axis strategy and gain momentum in global markets, the Network
Entertainment SBU will aim to deploy a new business that goes beyond the framework of the existing game business andfuses networks and entertainment, and the Visual and Music Production SBU will create IP and strengthen the Group’sbusiness deployment as it looks toward new outlets.
In the fiscal year ended March 31, 2016, the first year of the new Mid-term Plan, the Group made progress with
Business Strategies to “Accelerate Evolution in IP Axis Strategy.” Specifically, it created and developed new IP, extended
its target markets to include adults and other groups, and expanded new businesses such as live events. In Region Strategies
to “Gain Momentum in Global Markets,” the Group expanded the Toys and Hobby Business in Asia, increased the
popularity of home video game software in North America and Europe, and started the full-fledged development of
network content for each overseas regional market. In Functional Strategies to “Empower and Innovate Business Model,”the Group developed and provided products and services that integrate real and virtual elements. Going forward, the Groupwill continue to implement a range of measures to respond rapidly and flexibly to the fast-changing entertainment market
based on constant monitoring of conditions in the Group and the operating environment, and develop solid businessfoundations in order to generate stable earnings in this industry that is characterized by rapid changes in operating climate
and user preferences. The objective is to move to the next stage as an entertainment corporate group.
The Group will push ahead with the various strategies in the Mid-term Plan, and aims to achieve the following
numerical targets for the fiscal year ending March 31, 2018: net sales of 600,000 million yen, operating income of 60,000
million yen, and ROE of 10% or more.
In light of the above considerations, the consolidated projections of the fiscal year ending March 31, 2017 are as
follows: net sales of 580,000 million yen (year-on-year increase of 0.8%), operating income of 50,000 million yen(year-on-year increase of 0.7%), recurring income of 51,000 million yen (year-on-year increase of 0.4%), and profit
attributable to owners of parent of 35,000 million yen (year-on-year increase of 1.2%).

-4-

(2) Analysis of Financial Positiona. Assets, Liabilities, and Net Assets
At the end of the fiscal year ended March 31, 2016, total assets stood at 448,336 million yen, an increase of 6,572
million yen from the end of the previous fiscal year. The main factor was an increase of 21,216 million yen in cash andtime deposits while there was a decrease of 15,345 million yen in trade receivables.
Total liabilities amounted to 131,031 million yen, a decrease of 7,219 million yen from the end of the previous fiscal
year. The main factors were decreases of 4,315 million yen in accrued income taxes included in other current liabilities,
2,778 million yen in accrued employee bonuses included in other current liabilities, and 4,837 million yen in accounts
payable-other included in other current liabilities, while there was an increase of 5,388 million yen in trade payables.
Total net assets stood at 317,304 million yen, an increase of 13,791 million yen from the end of the previous fiscal year.
The main factor was an increase of 20,956 million yen in retained earnings thanks to the recording of 34,583 million yen in
profit attributable to owners of parent, despite a decrease of 4,246 million yen in foreign currency translation adjustment
due to foreign exchange fluctuation and cash dividends paid of 13,627 million yen.
As a result, the equity ratio became 70.6% compared with 68.6% at the end of the previous fiscal year.

b. Cash Flows
As of the end of the fiscal year, cash and cash equivalents (“funds”) remaining on hand had increased by 15,778 million
yen from the end of the previous fiscal year to 169,542 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 58,049 million yen (year-on-year increase of 15.9%). As a
breakdown of funds used, income taxes paid was 18,902 million yen (compared with 19,532 million yen in the previous
fiscal year). However, overall, there was a net increase in funds due to profit (loss) before income taxes of 48,489 million
yen (compared with 56,484 million yen in the previous fiscal year) and depreciation and amortization of 21,626 million
yen (compared with 23,712 million yen in the previous fiscal year).

(Cash Flows from Investing Activities)
The amount of funds used in investing activities totaled 23,425 million yen (year-on-year increase of 20.0%). The main
breakdown of funds used was purchases of property, plant and equipment and intangible assets totaling 19,206 million yen(compared with 16,771 million yen in the previous fiscal year).

(Cash Flows from Financing Activities)
The amount of funds used in financing activities totaled 16,123 million yen (year-on-year increase of 28.1%). The main
breakdown of funds used was cash dividends paid of 13,627 million yen (compared with 7,693 million yen in the previous
fiscal year) and repayment of long-term borrowings of 2,261 million yen (compared with 4,877 million yen in the previous
fiscal year).

-5-

(Reference) Cash Flow Indices
FY2012.3

FY2013.3

FY2014.3

FY2015.3

FY2016.3

Equity ratio (%)

61.8

66.0

66.0

68.6

70.6

Equity ratio (market capitalization basis) (%)

76.7

97.8

132.5

116.3

120.2

0.5

0.4

0.2

0.1

0.0

338.4

244.8

308.0

635.3

1,123.3

Cash flows to interest bearing debt ratio(years)Interest coverage ratio (times)

Equity ratio: Total stockholders’ equity/Total assets
Equity ratio (market capitalization basis): Market capitalization/Total assets
Cash flows to interest bearing debt ratio: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expenses
Note 1: All calculations are performed using consolidated financial figures.
Note 2: Market capitalization is calculated on the basis of the number of issued shares excluding treasury stock.
Note 3: Operating cash flow is used for cash flow.
Note 4: Interest-bearing debt covers all debt reported in the consolidated balance sheets for which interest is paid.
(3) Basic Policy on the Distribution of Profits
The Company places the return of profits to shareholders as one of its highest priorities in its management. The
Company assumes that its basic policy is to further strengthen the Group’s competitiveness and, while maintaining a soundfinancial status, to achieve regular distributions of dividends and improvement in the Company’s corporate value. In
concrete terms, the Company will provide a return to shareholders that targets a consolidated payout ratio of 30%, based onstable annual dividend payments of 24 yen per share. The Company will add a performance-based dividend of 28 yen per
share to the stable annual dividend of 24 yen per share to pay an annual dividend of 52 yen per share for this fiscal year
(year ended March 31, 2016). At present, the Company’s annual dividend forecast for next fiscal year (year ending March
31, 2017) is the provision of the stable dividend of 24 yen per share, and this will be considered by the Company in light ofthe consolidated operating results and other factors.
In addition, its fundamental policy is that part of any profit, after deduction of dividends, may be used to acquire
treasury stock, upon comprehensive consideration of the amount of funds on hand, performance trends, recent share pricetrends, the existence or nonexistence of major investment proposals, and other factors.

-6-

2. Management Policies(1) Fundamental Management Policy
Guided by the Group’s vision of becoming “The Leading Innovator in Global Entertainment,” the Group mission is tocontinue to offer “Dreams, Fun and Inspiration,” through entertainment, to people throughout the world.
Under the Mid-term Plan implemented from April 2012 to March 2015, the Group pursued various strategies aroundthe “IP Axis Strategy.” On the business front, specific measures aimed at the regional characteristics of each market were
pursued. Japan, where the Group has secured a certain level of market share, was set as the “Basic Business Area,” and theGroup aimed to further expand its existing share and revenue utilizing the strengths of each business operation. North
America and Europe, set as the “Profit Recovering Area,” had revenue recovery as its first priority, and also aimed towards
stabilizing revenue. In Asia, set as the “New Growth Area,” the Group focused on strengthening expansion of eachbusiness operation, and aimed to grow around the pillars of new business operations and regions.
Under the three-year Mid-term Plan that started in April 2015 the Group will further strengthen the “IP Axis Strategy”
to expand the value of its IPs based on the Mid-term Vision of “NEXT STAGE: Empower, Gain Momentum and Accelerate
Evolution” taking light of the effects and issues arising in the previous Mid-term Plan, through taking advantage of theworldview and unique characteristics of IPs and providing the best products and services at the best possible times. In
addition, aiming towards growing in the global market, the Group will further strengthen business development in the areaof high growth potential, which is the Asian region.
Through implementing these measures based on the Mid-term Plan, the Company is developing solid businessfoundations in order to generate stable earnings in this industry that is characterized by rapid changes in operating climate
and user preferences. The objective is to move to the next stage as an entertainment corporate group.

(2) Targets and Management Performance Indicators
The Group has adopted ROE (Return on Equity) as management performance indicators. Looking ahead, the Groupshall strive to continue to secure ROE of 10% or more, despite belonging to a sector subject to severe environmental
changes, by aiming to further expand profits through execution of strategies under the Mid-term Plan, as well as byeffectively utilizing stockholders’ equity.

(3) Medium- to Long-term Business Strategy
Under the three-year Mid-term Plan, which started in April 2015, the Group will implement three main strategies:
Business Strategies to “Accelerate Evolution in IP Axis Strategy,” Region Strategies to “Gain Momentum in Global
Markets” and Functional Strategies to “Empower and Innovate Business Model.”Business Strategies to “Accelerate Evolution in IP Axis Strategy”
a. Cultivate Original Group IPs
b. Enlarge New IP Businesses
c. Expand Target Market
d. Collaborate across SBUs

In order to further solidify the IP axis strategy, the BANDAI NAMCO Group’s strength, we will cultivate Group IPs bysuch means as creating and obtaining IP. The Group plans to further strengthen its capability to cultivate IPs, such as the-7-creation of IP through its products and services. The Group will also expand new IP business such as live events, expand its
target markets, and further strengthen collaboration among its businesses, a distinctive feature of the BANDAI NAMCO
Group.

Region Strategies to “Gain Momentum in Global Markets”
a. Expand in Asia and Japanb. Renew in Americas and Europe

In Japan, the Group will continue seeking to be No. 1 in each market and working to appeal to target markets it has not
yet reached. Moreover, in Asia, where further growth is expected, the Group will push ahead with detailed businessstrategies that are tailored to the distinctive features of regions while maintaining linkage with Japan, and carry out
aggressive business expansion. In Americas and Europe, the Group will continue maintaining its profit foundations andimplement business growth measures such as expanding its IP lineup and its business.

Functional Strategies to “Empower and Innovate Business Model”
a. Deepen the current business modelb. Create and cultivate the new IP businessc. Implement IP axis strategy in global market

The Group will create and cultivate new IP business for the next generation, push ahead with creating foundations forthe implementation of its IP axis strategy in global markets, and others.

Strategies by Business
Main strategies in each SBU are as follows.

a. Toys and Hobby SBU
 Strengthen the IP-based business model No.1 in All Asia and in each business in each country
 Europe and Americas Challenge Strengthen the Global Foundationb. Network Entertainment SBU
 Implement new business development in the real and digital fields
 Take steps to expand business in the network field Advance regional expansion (China)
 Reinforce local models for products and services originating in current markets (Europe and the Americas)
 Develop Original classic IP and user-generated content
 Take on the challenge of creating new IP-8-c. Visual and Music Production SBU
 Cultivate original Group IP assets
 Strengthen IP production capabilities Pursue overall optimization(4) Issues to be Addressed
The Group and this industry must address many important, long-term issues, including (i) increasingly diverse
customer needs, (ii) reacting to changes in the market and the environment, and (iii) increasingly intense competition on a
global scale. The Group is applying the main strategies defined in its Mid-term Plan to address these issues swiftly.

a. Common Issues Faced by All Strategic Business Units (“SBUs”)
Efforts Toward Maximizing the Value of IP
The Group is strengthening its IP creation and development, acquisition, and utilization functions in order to respond tochanges in the environment such as development of oligopolies in the distribution and media fields, the widespread
penetration of networks, and technological improvements. Specifically, the Group will seek to maximize the value of its IP
through promotion of collaboration among its businesses and cross-functional projects in the Group while creating IP by its
products and services and operating the IP posting system by Group employees. Furthermore, to strengthen ties with IPs
owned by other companies, we will undertake strategic investments related to IP. The “IP Strategy Division” established in
the Company in April 2016 will be the main driver of efforts to strengthen the IP Axis Strategy over the medium and longterm, with a focus on strategic efforts across the Group.

Efforts Toward CSR (Corporate Social Responsibility)
The Group’s corporate philosophy is to continue to provide “Dreams, Fun and Inspiration” to people around the world,
through entertainment based on creativity and boundless enthusiasm. To ensure that we can continue to provide “Dreams,
Fun and Inspiration,” we have formulated the CSR initiatives, which crosscut the entire Group and include three types of
responsibilities: environmental and social contribution responsibilities, economic responsibilities, and legal and ethicalresponsibilities. In accordance with these fundamental principles, the “Group CSR Committee” and its sub-committee, the“Group CSR Subcommittee,” as well as the “Group Risk Compliance Committee,” the “Group Information Security
Committee,” and the “Internal Control Committee” hold meetings and have been striving to implement a range ofmeasures.

b. Issues Specific to Each SBU
Toys and Hobby SBU
This unit’s industry is facing issues, such as a “shrinking domestic market due to the falling birthrate” and “increasingly
diverse customer needs.” This unit is addressing these issues by aiming for the position as the overwhelming No. 1 in Japan,
working at expanding its target markets and creating new businesses. In addition, it is expanding its IP lineup and regionsin which it is operating, with the aim of expanding its operations across Asia, which is predicted to continue to grow. In the
North American and European markets, it is aiming for medium-term growth through establishing foundations andstrengthening major IP expansion for improving profitability. In addition, on the development and production side,
improvements in the value chain will enable more speedy and price-competitive product development.
-9-

Network Entertainment SBU
This unit’s industry is facing issues that include “increasingly diverse platforms,” “evolution of networks” and“increasingly diverse customer needs.” To address these issues, it will endeavor to create new entertainment utilizing
networks, over and above the boundaries of existing operations and products/services. For network content such as gameapplications for smartphones, it will respond to new platforms and expand overseas operations. For home video gamesoftware, it will develop titles that respond to technological improvements and satisfy customer needs in various regions.
For its amusement operations, it will endeavor to improve its development of facilities to differentiate the Group and plan
facilities that provide new forms of entertainment by integrating the real and digital worlds. On the development front, theunit will put in place and improve the development environment, such as by implementing measures to respond swiftly totechnological progress and changes in the environment, in order to promote these measures in all business fields.

Visual and Music Production SBUThis unit’s industry is facing issues, such as “increasingly diverse customer needs” and “intensification of competition
in IP creation.” To address these issues, it will focus on production-related businesses such as live events and fan clubs, inaddition to sales of visual and music packaged products. In addition, in the area of IP creation, it will continue to pursue
improved quality in its creations and stronger collaboration with products/services within the Group, by dividing its
organizations dealing with the planning/development and creation of animation products and so on into those aimed
towards products for older customers and those aimed towards ones for children and families. The Group will also be
proactive in forming tie-ups with partner companies and will strengthen the creation and development of IP.

3. Basic Concept Regarding Selection of Accounting Standards
The Group plans to continue using Japanese GAAP to prepare its consolidated financial statements for the time being, as
they facilitate comparison with previous consolidated financial statements and with other companies.
The Group’s policy on applying International Financial Reporting Standards is to take action as appropriate based on
considerations of various conditions in Japan and overseas.

- 10 -

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year

Current Fiscal Year(As of March 31, 2015)(As of March 31, 2016)

AssetsCurrent assets
Cash and time deposits

153,541

174,757

Trade receivables

87,87572,530Finished goods and merchandise

14,563

16,743Work in process

23,18325,605

Raw materials and supplies

5,164

3,893

Deferred tax assets

8,953

8,522

Other current assets

24,68920,730

(455)

(606)

317,516

322,176

29,46832,820Allowance for doubtful receivables
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation(16,356)(15,956)

Buildings and structures, net

13,111

16,863

Amusement facilities and machines

57,07057,258

Accumulated depreciation(43,365)(44,572)

Amusement facilities and machines, net

13,704

12,685Land

11,956

11,025

Other property, plant and equipment

110,723

111,367(96,235)(98,239)

Accumulated depreciation
Other property, plant and equipment, net

14,487

13,12753,26053,702Intangible assets

10,2759,449

Investments and other assets
Investment securities

32,85534,519Total property, plant and equipment

143

71

Deferred tax assets

Net defined benefit asset

11,651

12,544

Other investments and assets

17,082

16,887

Allowance for doubtful receivables(1,022)(1,015)

Total investments and other assets
Total fixed assets
Total assets- 11 -

60,71063,007124,247

126,159441,763448,336(¥ million)
Prior Fiscal Year

Current Fiscal Year(As of March 31, 2015)(As of March 31, 2016)

Liabilities
Current liabilities
Trade payables

57,25762,645

Provision for directors’ bonuses

1,260

1,401

Provision for sales returns

984

970

Other current liabilities

63,63349,315

Total current liabilities

123,136

114,333

7,999

9,920

468

443

6,647

6,333

Long-term liabilities
Net defined benefit liability
Deferred tax liabilities for land revaluation
Other long-term liabilities
Total long-term liabilities
Total liabilities

15,114

16,697138,250

131,031

Net assets
Stockholders’ equity
Common stock

10,00010,000Additional paid-in capital

52,24652,246

Retained earnings

244,274

265,231

Treasury stock(2,403)(2,410)Total stockholders’ equity

304,118

325,067

6,757

6,907

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

1,300

(706)

Revaluation reserve for land, net of tax(5,695)(5,670)Foreign currency translation adjustments(1,542)(5,788)Remeasurements of defined benefit plans, net of tax(2,045)(3,145)

Total accumulated other comprehensive income(1,224)(8,403)

Subscription rights to shares

44

99

Non-controlling interests

575

541

303,512317,304

441,763448,336

Total net assets
Total liabilities and net assets- 12 -

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior Fiscal Year
(From April 1, 2014
to March 31, 2015)
565,486

Current Fiscal Year
(From April 1, 2015
to March 31, 2016)
575,504

352,373

372,904

Gross profit

213,112

202,600

Selling, general and administrative expenses

156,791

152,959

Operating income

56,32049,641

Interest income

180

216

Dividend income

460

352

1,025

1,508

530

–

Other non-operating income

1,287

1,018

Total non-operating income

3,484

3,094

Interest expense73

49

Foreign exchange losses–

629

Loss on valuation of derivatives–

750

Provision of allowance for doubtful accounts

90

299

Other non-operating expenses

256

232

Net sales
Cost of sales

Non-operating income

Equity in gain of affiliated companies
Foreign exchange gains

Non-operating expenses

421

1,961

59,38350,774Gain on sales of fixed assets

36

900

Other extraordinary income

761

124

Total extraordinary income

798

1,025

2,867

2,552

Total non-operating expenses
Recurring income
Extraordinary income

Extraordinary loss
Loss on impairment of fixed assets
Other extraordinary loss

830

758

Total extraordinary loss

3,697

3,311

Profit (loss) before income taxes

56,48448,489Corporate income, inhabitant and enterprise taxes

18,813

13,746(157)

186

Total income taxes

18,655

13,932

Profit37,82834,556

Adjustment for income taxes

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent- 13 -

239(27)

37,58834,583

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior Fiscal Year
(From April 1, 2014
to March 31, 2015)
ProfitCurrent Fiscal Year
(From April 1, 2015
to March 31, 2016)37,82834,556

458

170

1,093

(1,982)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

47

24

Foreign currency translation adjustments

3,598(4,221)Remeasurements of defined benefit plans

237(1,100)Share of other comprehensive income of associates
accounted for using equity method

92

(70)

Total other comprehensive income
Comprehensive income

5,528(7,179)43,35627,377

43,11327,404242(27)

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests- 14 -

(3) Consolidated Statements of Changes in Net Assets
Prior Fiscal Year (From April 1, 2014 to March 31, 2015)(¥ million)
Stockholders’ equity
Additional paid-in
capitalCommon stock
10,000

Balance at beginning of year

Retained earnings

52,245

Treasury stock

214,416

Cumulative effects of changes
in accounting policies

Total stockholders’equity(2,390)274,271(37)
10,000

Restated balance

52,245(37)

214,379(2,390)274,233

Changes during the period
Cash dividends(7,693)(7,693)

Profit attributable to ownersof parent

37,58837,588Purchase of treasury stock0

Disposal of treasury stock
Change in treasury shares ofparent arising fromtransactions with
non-controlling shareholders
Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedNet changes of items otherthan shareholders’ equity

(13)

(13)

0

1
–

Total changes during the period
Balance at end of year

0

0

–

0

29,895(12)

29,88410,00052,246244,274(2,403)

304,118

Accumulated other comprehensive income
Unrealized gains
Total accumulated Subscription
Deferred gains or
Revaluation
Foreign currency Remeasurements
rights to sharesor losses on otherotherlosses on hedges, reserve for land,translationof defined benefit
securities, net ofcomprehensive
net of tax
net of tax
adjustments
plans, net of tax
tax
incomeBalance at beginning of year

6,226

194

(5,743)(5,145)(2,282)(6,749)44

Non-controllinginterests

385

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

267,951
(37)

6,226

194

(5,743)(5,145)(2,282)(6,749)44385

267,914

Changes during the period
Cash dividends(7,693)

Profit attributable to ownersof parent

37,588Purchase of treasury stock(13)

Disposal of treasury stock

1

Change in treasury shares ofparent arising fromtransactions with
non-controlling shareholders
Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedNet changes of items otherthan shareholders’ equity

531

1,105

47

3,603

237

5,524

–

189

5,714

Total changes during the period

531

1,105

47

3,603

237

5,524

–

189

35,598

6,757

1,300

(5,695)(1,542)(2,045)(1,224)

44575

303,512

Balance at end of year–0

- 15 -

Current Fiscal Year (From April 1, 2015 to March 31, 2016)(¥ million)
Stockholders’ equity
Additional paid-in
capitalCommon stock
10,000

Balance at beginning of year

52,246

Retained earnings

Treasury stock244,274

Total stockholders’equity(2,403)

304,118

Cumulative effects of changes
in accounting policies–
10,000

Restated balance

52,246244,274(2,403)

304,118

Changes during the period
Cash dividends(13,627)(13,627)

Profit attributable to ownersof parent

34,58334,583Purchase of treasury stock0

Disposal of treasury stock
Change in treasury shares ofparent arising fromtransactions with
non-controlling shareholders
Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedNet changes of items otherthan shareholders’ equity

(4)

(4)

0

0

0

Total changes during the period
Balance at end of year

0

(2)

(2)

–

0

20,956(7)

20,94910,00052,246265,231(2,410)

325,067

Accumulated other comprehensive income
Unrealized gains
Remeasurements Total accumulated Subscription
Deferred gains or
Revaluation
Foreign currency
rights to sharesor losses on otherof definedotherlosses on hedges, reserve for land,translation
securities, net of
benefit plans, net comprehensive
net of tax
net of tax
adjustments
tax
incomeof taxBalance at beginning of year

6,757

1,300

(5,695)(1,542)(2,045)(1,224)44

Non-controllinginterests

575

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

303,512
–

6,757

1,300

(5,695)(1,542)(2,045)(1,224)

44575

303,512

Changes during the period
Cash dividends(13,627)

Profit attributable to ownersof parent

34,583Purchase of treasury stock(4)

Disposal of treasury stock0

Change in treasury shares ofparent arising fromtransactions with
non-controlling shareholders
Changes in treasury stock
accompanying changes toholdings in companies towhich the equity method isappliedNet changes of items otherthan shareholders’ equity
Total changes during the period
Balance at end of year

0

(2)

149

(2,006)24(4,246)(1,100)(7,179)55(33)(7,157)149(2,006)24(4,246)(1,100)(7,179)55(33)

13,791

6,907

(706)

(5,670)(5,788)(3,145)(8,403)99541

317,304- 16 -

(4) Consolidated Statements of Cash Flows(¥ million)
Prior Fiscal Year
(From April 1, 2014
to March 31, 2015)

Current Fiscal Year
(From April 1, 2015
to March 31, 2016)

Cash flows from operating activities
Profit (loss) before income taxes

56,48448,489Depreciation and amortization

23,712

21,626

Loss on impairment of fixed assets

2,867

2,552

Amortization of goodwill

158

167

Increase (decrease) in allowance for doubtful receivables

(161)

170

Increase (decrease) in provision for losses from businessrestructuring

(506)

(59)

Increase (decrease) in provision for sales returns

(221)
164

1
137

Increase (decrease) in provision for directors’ bonuses
Increase (decrease) in net defined benefit liability

410

434

Interest and dividend income

(641)
73

(568)
49

Interest expense
Foreign exchange losses (gains)
Equity in loss (gain) of affiliated companies

202

445

(1,025)(1,508)Loss on disposal of fixed assets

167

93

Loss (gain) on sales of fixed assets, net

(25)

(897)

Loss on disposal of amusement facilities and machines

576

467

Loss (gain) on sales of investment securities, net

(500)

(0)

Loss (gain) on valuation of investment securities

136

1(9,681)

14,526236(4,578)Acquisition of amusement facilities and machines(5,232)(3,532)

Increase (decrease) in trade payables

4,289

6,736

Increase (decrease) in accounts payable-other(3,676)(5,327)

Increase (decrease) in consumption tax payables

4,297(4,044)Other(3,031)

1,058

Subtotal

Decrease (increase) in trade receivables
Decrease (increase) in inventories

69,07476,441

Interest and dividends received

640

562

Interest paid

(78)

(51)

Income taxes paid

(19,532)(18,902)

Net cash provided by operating activities

50,10358,049- 17 -

(¥ million)
Prior Fiscal Year
(From April 1, 2014
to March 31, 2015)

Current Fiscal Year
(From April 1, 2015
to March 31, 2016)

Cash flows from investing activities
Payments for deposit in time deposits(4,062)(15,163)

Proceeds from withdrawal from time deposits

3,340

10,879Purchases of property, plant and equipment(11,792)(13,607)

84

2,224

(4,978)(5,599)

(332)

(105)

Sales of property, plant and equipment
Purchases of intangible assets
Purchases of investment securities
Sales of investment securities

632

34

(2,369)(234)

Payments of loans receivable

(795)

(539)

Collection of loans receivable

237

272

Payments of guarantee money deposited(829)(2,079)Collection of guarantee money deposited

1,617

700

Other

(267)

(208)

(19,515)(23,425)

74

(357)

Purchase of shares of subsidiaries and associates

Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings, net
Proceeds from long-term borrowings–

200

Repayment of long-term borrowings(4,877)(2,261)

Payment of lease obligations

(82)

(65)

Purchase of treasury stock

(13)

(4)

1

0

(7,693)(13,627)

Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation–(6)

Cash dividends paid to non-controlling interests

(1)

(0)

(12,591)(16,123)

Effect of exchange rate changes on cash and cash equivalents

1,101(2,722)

Net increase (decrease) in cash and cash equivalents

19,097

15,778Cash and cash equivalents at beginning of year

134,666

153,764

Cash and cash equivalents at end of year

153,764

169,542

Proceeds from disposal of treasury stock
Cash dividends paid

Net cash used in financing activities- 18 -

(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.

(Important Information Constituting the Basis for Preparation of Consolidated Financial Statements)
1. Information Concerning the Scope of Consolidation(1) Total Number of Consolidated Subsidiaries:
Prior Fiscal Year:65 companies

Current Fiscal Year: 68 companies
Names of Principal Consolidated Subsidiaries:
BANDAI CO., LTD., BANDAI NAMCO Entertainment Inc., BANDAI VISUAL CO., LTD., BANDAI
NAMCO Holdings USA Inc., BANDAI S.A., BANDAI NAMCO Holdings UK LTD., BANDAI
NAMCO Holdings ASIA CO., LTD.
Since BANDAI NAMCO Pictures Co., Ltd. and BANDAI NAMCO ASIA CO., LTD. were newly established inthis consolidated fiscal year and Grand-Slam Ltd. and Highway Star Inc. became subsidiaries through stockacquisition, these companies are now included in the scope of consolidation.
Since BANDAI Polska sp.zo.o, which was a consolidated subsidiary in the fiscal year ended March 31, 2015,
was liquidated, it has been excluded from the scope of consolidation.
BANDAI NAMCO Games Inc. changed its trade name to BANDAI NAMCO Entertainment Inc., and BANDAI
NAMCO ASIA CO., LTD. changed its trade name to BANDAI NAMCO Holdings ASIA CO., LTD.
(2) Names etc. of the Principal Non-Consolidated Subsidiaries:
Principal Non-Consolidated Subsidiary:
BANDAI LOGIPAL (H.K.) LTD.
Non-consolidated subsidiaries have been excluded from the scope of consolidation. As the scale of the businessconducted by each of those companies is small and the total assets, net sales, profit or loss and retained earnings,
etc. corresponding to the ownership held by the Company of each non-consolidated subsidiary have no material
impact on the consolidated financial statements.
2. Information Concerning Application of the Equity Method(1) Number of Non-Consolidated Subsidiaries to Which the Equity Method Was Applied:
Prior Fiscal Year: 1 company
Current Fiscal Year: 0 companies
Since SHANGHAI NAMCO LTD., which was a non-consolidated subsidiary to which the equity method wasapplied in the fiscal year ended March 31, 2015, was liquidated, it has been excluded from the scope of applicationof the equity method.

- 19 -

(2) Number of Affiliated Companies to Which the Equity Method Was Applied:
6 companies
Names of the Principal Companies:
Happinet Corporation, Sotsu Co., Ltd. and People Co., Ltd.
(3) Non-Consolidated Subsidiaries and Affiliated Companies to Which the Equity Method Was Not Applied:
The equity method was not applied to non-consolidated subsidiaries and affiliated companies such as BANDAI
LOGIPAL (H.K.) LTD., because it was deemed that the exclusion of those companies from the application of theequity method would have little, and no material impact on the consolidated financial statements of the Company
and it seemed unimportant as a whole in consideration of profit or loss and retained earnings, etc. corresponding to
the Company’s equity share in it.
(4) If any of the companies to which the equity method is applied has a fiscal year that differs from the consolidated
fiscal year, then the financial statements for the fiscal year of that company are used.
3. Information Concerning the Fiscal Year, etc. for Consolidated Subsidiaries
The fiscal year closing dates for BANDAI (SHENZHEN) CO., LTD. and BANDAI NAMCO (SHANGHAI) CO.,LTD. are December 31, and their financial data as of their respective closing dates are used. The fiscal year closing
date for Sun-Star Stationery Co., Ltd is June 30 and its financial data is based on a provisional closing as of December
31 pursuant to procedures for the fiscal year-end closing.
Necessary adjustments on a consolidated basis are made when transactions of material importance occur between
the reported closing date and the consolidated closing date.
Apart from the information contained above, other important information constituting the basis for preparation of
consolidated financial statements has been omitted as no significant changes have occurred since this information waspresented in the most recent annual security report (filed on June 23, 2015).

(Changes in Accounting Policies)(Application of Accounting Standard for Business Combinations, etc.)
Effective from this consolidated fiscal year, the Company has applied the Accounting Standard for Business
Combinations (ASBJ Statement No. 21, September 13, 2013), the Accounting Standard for Consolidated Financial
Statements (ASBJ Statement No. 22, September 13, 2013), and the Accounting Standard for Business Divestitures(ASBJ Statement No. 7, September 13, 2013), etc. Accordingly, the method of recording the amount of difference
caused by changes in the Company’s ownership interests in subsidiaries in the case of subsidiaries under ongoing
control of the Company was changed to one in which it is recorded as additional paid-in capital, and the method ofrecording acquisition-related costs was changed to one in which they are recognized as expenses for the fiscal year inwhich they are incurred. Furthermore, for business combinations carried out on or after the beginning of thisconsolidated fiscal year, the accounting method was changed to one in which the reviewed acquisition cost allocation
resulting from the finalization of the provisional accounting treatment is reflected in the consolidated financial
statements for the consolidated fiscal year to which the date of business combination belongs. In addition, the- 20 -

presentation method for “net income” and other related items was changed, and the presentation of “minority interests”
was changed to “non-controlling interests.” To reflect these changes, the Company has reclassified its consolidated
financial statements for the previous fiscal year.
Application of the Accounting Standard for Business Combinations, etc. is in line with the transitional measuresprovided for in paragraph 58-2 (4) of the Accounting Standard for Business Combinations, paragraph 44-5 (4) of the
Accounting Standard for Consolidated Financial Statements and paragraph 57-4 (4) of the Accounting Standard forBusiness Divestitures. The Company is applying the said standard, etc. prospectively from the beginning of thisconsolidated fiscal year.
In the consolidated statements of cash flows for this consolidated fiscal year, cash flows related to the acquisition orsale of shares in subsidiaries not resulting in change in scope of consolidation have been included under “Cash flows
from financing activities,” and cash flows related to costs arising from acquisition of shares in subsidiaries resulting inchange in scope of consolidation or costs associated with acquisition or sale of shares in subsidiaries not resulting inchange in scope of consolidation have been included under “Cash flows from operating activities.”
The effect of this change on the consolidated financial statements and the per-share data for this consolidated fiscal
year is immaterial.

- 21 -

(Segment Information)a. Segment Information
1. Overview of reportable segments
The reportable segments of the Company are components of the Group whose separate financial information isavailable and which 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 SBUs, one for each business domain, namely the Toys and Hobby SBU, theNetwork Entertainment SBU, and the Visual and Music Production SBU, and (2) the affiliated business companies thatmainly serve a supporting role for these SBUs. The core company of each SBU leads the planning and promotion of thebusiness strategies of the strategic business unit for Japan and overseas.
Accordingly, the Group has the following three reportable segments: Toys and Hobby Business, Network
Entertainment Business, and Visual and Music Production Business.
The Toys and Hobby Business conducts manufacturing and sales of toys, candy toys and production for vending
machines. The Network Entertainment Business conducts planning, development and distribution services for network
content, planning, development and sales of video game software and arcade game machines, and planning and operationof amusement facilities. The Visual and Music Production Business conducts production and sales of visual and music
related products and live entertainment operations.
As shown in “2. Information concerning changes to reportable segments, etc.,” the Group has changed theclassification of its reportable segments from this consolidated fiscal year.

2. Information concerning changes to reportable segments, etc.
The Group reviewed its organizational structure with the aim of implementing a range of initiatives defined as main
strategies in its Mid-term Plan, which was started in April 2015. In line with this review, effective from this consolidated
fiscal year, the Group changed the classification of its reportable segments from the previous classifications of the “Toysand Hobby Business,” the “Content Business,” and the “Amusement Facility Business” to the “Toys and Hobby
Business,” the “Network Entertainment Business,” and the “Visual and Music Production Business.”
Segment information of the previous fiscal year is prepared and disclosed based on the reportable segmentclassifications after the organizational change.

3. Method for calculating the amounts of net sales, income/loss, assets, liabilities and others by reportable segment
The accounting method used for the business segments reported is the same as the accounting method stated in“Important Information Constituting the Basis for Preparation of Consolidated Financial Statements” presented in themost recent annual security report (filed on June 23, 2015).
The income of reportable segments is measured by operating income.
The inter-segment transactions are based on prevailing market prices.

- 22 -

4. Information regarding the amounts of net sales, income/loss, assets, liabilities and others by reportable segment
Prior Fiscal Year (From April 1, 2014 to March 31, 2015)(¥ million)
Reportable Segments
Consolidated
Total

Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

Subtotal(Note 1)

222,294

292,558

40,758555,6119,874

565,486–

565,486

Inter-segment sales
and transfers

8,623

3,884

3,015

15,523

17,13232,655(32,655)–

Total

230,918

296,442

43,773571,134

27,006598,141(32,655)

565,486

Segment income

17,04029,29010,07756,408

1,462

57,871(1,550)56,320

Segment assets

119,893

169,634

31,434

320,962

26,296347,258

94,504

441,763

Depreciation andamortization

14,9407,439

632

23,012369

23,382329

23,712

Amortization of
goodwill

82

14

62

159

–

159

–

159

Impairment loss

98

2,528

12

2,639

–

2,639

228

2,867

Investment inassociates
accounted for using
equity method

613

31

–

645

11,086

11,731–

11,731

Increase in property,
plant and equipment
and intangible
assets12,041

11,312914

24,268933

25,201

2,559

27,761

Other

Total

Adjustments(Note 2)

(Note 3)

Net sales
To externalcustomers

Others

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.
The details of adjustment amounts are as follows:(1)
Included in the 1,550 million yen deducted from segment income as adjustment are an addition of 677
million yen in inter-segment eliminations, and a deduction of 2,228 million yen in corporate expenses
that cannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
(2)
Included in the 94,504 million yen added to segment assets as adjustment are a deduction of 20,722
million yen in inter-segment eliminations, and an addition of 115,227 million yen in corporate assets thatcannot be allocated to any reportable segment. The corporate assets are mainly cash and time deposits,
investment securities, and assets etc. related to the administration division that has not been attributed toa reportable segment.
(3)
Included in the 329 million yen added to depreciation and amortization as adjustment are a deduction of
793 million yen in inter-segment eliminations, and an addition of 1,123 million yen in depreciation andamortization related to the administration division that has not been attributed to a reportable segment.
(4)
Included in the 228 million yen added to impairment loss as adjustment is related to corporate assets thatcannot be allocated to any reportable segment.
(5)
Included in the 2,559 million yen added to increase in property, plant and equipment and intangible
assets as adjustment is the amount of corporate assets that cannot be allocated to any reportable segment.
Segment income is adjusted with operating income in the consolidated statements of operations.

- 23 -

Current Fiscal Year (From April 1, 2015 to March 31, 2016)(¥ million)
Reportable Segments
Consolidated
Total

Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

Subtotal(Note 1)

199,409317,995

48,268565,673

9,831

575,504–

575,504

Inter-segment sales
and transfers

7,015

2,945

3,699

13,66017,62431,285(31,285)–

Total

206,424

320,941

51,967579,333

27,456

606,790(31,285)

575,504

Other

Total

Adjustments(Note 2)

(Note 3)

Net sales
To externalcustomers

Segment income

16,63923,93011,66552,235

1,123

53,359(3,717)49,641

Segment assets

99,461

166,244

38,687304,393

27,040331,434

116,902448,336

Depreciation andamortization

11,781

7,965

592

20,339439

20,779847

21,626

Amortization of
goodwill

82

17

68

167

–

167

–

167

Impairment loss

1,857

658

–

2,516

23

2,539

12

2,552

Investment inassociates
accounted for using
equity method

755

–

–

755

12,05012,806–

12,806

Increase in property,
plant and equipment
and intangible assets

11,142

11,612653

23,408496

23,905

3,081

26,986

Others

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.
The details of adjustment amounts are as follows:(1)
Included in the 3,717 million yen deducted from segment income as adjustment are an addition of 292
million yen in inter-segment eliminations, and a deduction of 4,010 million yen in corporate expenses
that cannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
(2)
Included in the 116,902 million yen added to segment assets as adjustment are a deduction of 17,654
million yen in inter-segment eliminations, and an addition of 134,556 million yen in corporate assets thatcannot be allocated to any reportable segment. The corporate assets are mainly cash and time deposits,
investment securities, and assets etc. related to the administration division that has not been attributed toa reportable segment.
(3)
Included in the 847 million yen added to depreciation and amortization as adjustment are a deduction of
320 million yen in inter-segment eliminations, and an addition of 1,167 million yen in depreciation andamortization related to the administration division that has not been attributed to a reportable segment.
(4)
Included in the 12 million yen added to impairment loss as adjustment is related to corporate assets thatcannot be allocated to any reportable segment.
(5)
Included in the 3,081 million yen added to increase in property, plant and equipment and intangible
assets as adjustment is the amount of corporate assets that cannot be allocated to any reportable segment.
Segment income is adjusted with operating income in the consolidated statements of operations.

- 24 -

b. Related Information
Prior Fiscal Year (From April 1, 2014 to March 31, 2015)
1. Information by product and service
This information is omitted because the same information has been presented in Segment Information.
2. Information by region(1) Net sales(¥ million)
Japan

Americas459,776

Europe38,632

Asia

32,431

Total

34,644565,486

Note: Net sales are classified by country and region based on customer location.
(2) Property, plant and equipment(¥ million)
Japan

Americas39,154

Europe

3,452

Asia

4,646

Total

6,007

53,2603. Information by major customer(¥ million)
Name of customer

Net sales

Names of related segments
Toys and Hobby Business, Network Entertainment

77,445Happinet Corporation

Business, and Visual and Music Production
Business

Current Fiscal Year (From April 1, 2015 to March 31, 2016)
1. Information by product and service
This information is omitted because the same information has been presented in Segment Information.
2. Information by region(1) Net sales(¥ million)
Japan

Americas430,368

Europe51,642

Asia

47,285

Total

46,208575,504

Note: Net sales are classified by country and region based on customer location.
(2) Property, plant and equipment(¥ million)
Japan

Americas41,199Europe

2,877

Asia

4,304

- 25 -

Total

5,320

53,702

3. Information by major customer(¥ million)
Name of customer

Net sales

Names of related segments
Toys and Hobby Business, Network Entertainment

62,096

Happinet Corporation

Business, and Visual and Music Production
Businessc. Information Regarding Loss on Impairment of Fixed Assets by Reportable Segment
Prior Fiscal Year (From April 1, 2014 to March 31, 2015)
This information is omitted because the same information has been presented in Segment Information.
Current Fiscal Year (From April 1, 2015 to March 31, 2016)
This information is omitted because the same information has been presented in Segment Information.

d. Information Regarding Amortized Amounts and Unamortized Balance of Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2014 to March 31, 2015)(¥ million)
Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

Eliminations
and Corporate

Other

Total

Amortized
amount

82

14

62

–

–

159

Unamortizedbalance

330

71

185

–

–

587

Note that the amortized amounts and unamortized balance of negative goodwill that were recognized as a result of
business combinations conducted before April 1, 2010 are as follows.
(¥ million)
Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

Eliminations
and Corporate

Other

Total

Amortized
amount

–

–

0

–

–

0

Unamortizedbalance

–

–

–

–

–

–

- 26 -

Current Fiscal Year (From April 1, 2015 to March 31, 2016)(¥ million)
Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

Eliminations
and Corporate

Other

Total

Amortized
amount

82

17

68

–

–

167

Unamortizedbalance

247

54

151

–

–

453

There are no matters to report regarding the amortized amounts and unamortized balance of negative goodwill thatwere recognized as a result of business combinations conducted before April 1, 2010.

e. Information Regarding Gain on Negative Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2014 to March 31, 2015)
Not applicable.

Current Fiscal Year (From April 1, 2015 to March 31, 2016)
Not applicable.

- 27 -

(Per-Share Data)
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2014 to March 31, 2015)(From April 1, 2015 to March 31, 2016)

1,378.77 yen

1,441.49 yen

Basic earnings per share

171.10 yen

157.43 yen

Diluted earnings per share

171.08 yen

157.39 yen

Net assets per share

Note: The basis of calculating basic earnings per share and diluted earnings per share figure is as follows:
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2014 to March 31, 2015)(From April 1, 2015 to March 31, 2016)

37,58834,583––37,58834,583

219,685,816

219,679,282

Profit attributable to owners of parent
adjustment (¥ million)––

Increase in number of common stock(shares)

36,08656,925[Subscription rights to shares (shares)][36,086][56,925]

Basic earnings per share
Profit attributable to owners of parent(¥ million)
Amount not applicable to common
stockholders (¥ million)
Profit attributable to owners of parent
available to common stock (¥ million)
Average number of common stock
outstanding (shares)

Diluted earnings per share

Summary of potential shares not includedin the calculation of diluted earnings per
share as they do not have a diluting effect.

–- 28 -–

(Significant Subsequent Events)(Acquisition of Shares Through Tender Offers)
The Company adopted a resolution at a Board of Directors meeting on March 9, 2016 to acquire common shares in
WiZ Co., Ltd. (“Target Company” and “Target Company’s Shares”) through a tender offer under the Financial
Instruments and Exchange Act (Act No. 25 of 1948, including subsequent amendments).
The First Tender Offer, which commenced on March 10, 2016, was completed on April 7, 2016 and the Second Tender
Offer was commenced on April 15, 2016.
1. Outline of the business combination(1) Name and business of the Target Company
Name

WiZ Co., Ltd.

Business

Planning, developing, producing, and selling of toys, sundries, and animation films(2) Main reasons for the business combination
The Company resolved to acquire all outstanding Target Company’s Shares listed on the Tokyo Stock Exchange
JASDAQ Standard section in order to make the Target Company a wholly owned subsidiary.
While the Company has grown through business operations centered on key IPs, which is a core strength of theGroup, it believes having the Target Company in the Group should enable the strengthening of its source of growth,
the planning and development function for IPs and products, with the Target Company’s strengths and knowhow indigital toys planning and development integrated into the Group. More specifically, the Company believes thatdeepening the collaboration between BANDAI CO., LTD, which has capabilities in boys’ and girls’ basic (classic)
toys planning and design, and the Target Company, which has capabilities in digital toys planning and development,
should improve the planning capability of the overall Group including the Target Company and enable the planning,development, and operations of new products leveraging the strengths of both companies with their planningcapabilities as a pillar.
In addition, the Company recognizes the Target Company as an important business partner of the Group in
jointly holding and operating the rights of original IPs such as Tamagotchi, Primopuel, and Digital Monsters. The
Target Company believes that the alliance with the Group will allow it to establish a stable revenue base bystrengthening the licensing-out function for these original IPs.
To realize the synergies described above, the Company has decided it is imperative to establish management
structures to allow decisions to be made promptly and flexibly based on medium- and long-term strategic
judgments, including the restructuring of the Target Company’s business management, through the acquisition of
all of the Target Company’s Shares. It has also been determined that the Target Company should become a wholly
owned subsidiary of the Company and both companies should be integrated as a group to conduct business
operations, which will eventually serve to enhance the corporate value of the Target Company.

- 29 -

(3) Date of business combination
Share acquisition dateCommencement date of settlement for First Tender Offer

April 14, 2016

Scheduled commencement date of settlement for Second Tender Offer

May 31, 2016 (scheduled)

Deemed acquisition date

May 31, 2016 (scheduled)(4) Legal format for the business combination
Acquisition of shares in consideration for cash(5) Company name after combination
No change.
(6) Percentages of voting rights acquired
1) Percentage of voting rights owned immediately before combination

0.00%2) Percentage of voting rights acquired through First Tender Offer

55.02%

3) Percentage of voting rights planned to be acquired through Second Tender Offer

TBD

4) Percentage of voting rights after the Tender Offer

TBD(7) Main basis on which acquiring company was chosen
In order for the Company to acquire the shares in consideration for cash
2. Matters relating to calculation of acquisition price, etc.
(1) Purchase price of acquired company and breakdown by type of consideration
Not confirmed at this stage.
(2) Details and amount of main acquisition-related costs
Not confirmed at this stage.
3. Matters relating to acquisition cost allocation(1) Amounts and breakdowns for assets received, and debts assumed, on date of business combination
Not confirmed at this stage.
(2) Goodwill amounts incurred, reason for being incurred, amortization method and period; for negative goodwill,amounts incurred and reason for being incurred
Not confirmed at this stage.

- 30 -

5. Other
Changes in Directors and Audit & Supervisory Board Members(1) Change in Representative
Not applicable.
(2) Other Changes in Directors and Audit & Supervisory Board Members
New candidates for Director
Director

Masaru Kawaguchi (current position: Executive Officer of
the Company and President and Representative Director of
BANDAI CO., LTD.)

Director (Outside)

Satoko Kuwabara (current position: Partner of Mori
Hamada & Matsumoto)Director (Outside)

Mikiharu Noma (current position: Associate Professor at
Graduate School of International Corporate Strategy (ICS),
Hitotsubashi University)

Retiring Director
Director

Kazunori Ueno

Director (Outside)

Nobuo Sayama* Director (Outside) Tomohisa Tabuchi passed away on March 1, 2016, effectively relinquishing his role on thesame day.
(3) Responsible Area of Directors (Effective June 20, 2016)
Shukuo Ishikawa

Chairman and Representative Director

Mitsuaki Taguchi

President and Representative Director

Shuji Ohtsu

Director and Division General Manager of the Group Administrative Headquarters

Yuji Asako

Director and Division General Manager of the Corporate Planning Division

Masaru Kawaguchi

Director (Part-time) in charge of Toys and Hobby SBU

Satoshi Oshita

Director (Part-time) in charge of Network Entertainment SBU

Kazumi Kawashiro

Director (Part-time) in charge of Visual and Music Production SBU

Yuzuru Matsuda

Director (Outside)

Satoko Kuwabara

Director (Outside)

Mikiharu Noma

Director (Outside)- 31 -