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

February 5, 2014DISCLAIMER- NAMCO BANDAI Holdings Inc. provides this translation for your reference and convenience only and without any
warranty as to its accuracy or otherwise. In the event of any discrepancy, the original “Kessan Tanshin” in Japanese
shall prevail.
- This document contains forward-looking statements that are based on management’s estimates, assumptions andprojections at the time of publication. A number of factors could cause actual results to differ materially fromexpectations.

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
February 5, 2014

Consolidated Financial Report for the Third Quarter of
the Fiscal Year Ending March 31, 2014 (Japanese GAAP)
Representative:
Shukuo Ishikawa, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
February 12, 2014
Scheduled starting date for dividend payments:－
The additional materials of the Financial Results for the Quarter: Yes
The information session of the Financial Results for the Quarter: Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2014
(April 1, 2013 to December 31, 2013)(1) Consolidated Operating Results (For the Nine Months Ended December 31, 2013)

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

Net sales¥ million
368,126%5.0

350,637

8.4

Net income

Third Quarter of the Fiscal YearEnding March 31, 2014
Third Quarter of the Fiscal Year
Ended March 31, 2013
(Note)(Percentages indicate year-on-year changes.)
Operating income
Recurring income¥ million%¥ million%
42,782(3.2)
45,696
1.4
44,194

43.6

Net income per share

45,04646.2

Net income per share(diluted)¥ million
29,702%6.1¥
135.20¥135.1927,99571.7

127.43–Comprehensive income: 37,921 million yen [29.8%] (FY2014.3 3Q), 29,208 million yen [89.7%] (FY2013.3 3Q)(2) Consolidated Financial Position

As of December 31, 2013
As of March 31, 2013

Total assets¥ million
401,254374,203

Net assets¥ million
276,163248,769

Equity ratio
%
68.5
66.0

(Reference) Equity: 274,837 million yen (as of December 31, 2013), 247,030 million yen (as of March 31, 2013)

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

Annual cash dividends
End ofFiscalthird quarteryear-end–¥33.00–¥12.00Fiscal Year Ended March 31, 2013–
Fiscal Year Ending March 31, 2014–
Fiscal Year Ending March 31, 2014
(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2014: No

Total¥45.00¥24.003. Consolidated Projections for the Fiscal Year Ending March 31, 2014 (April 1, 2013 to March 31, 2014)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Net income
Net income
incomeincomeper share¥ million% ¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
485,000(0.5)
45,000(7.5)
46,500(6.9)
25,500(21.3)
116.07(Note) Revision to the projections: Yes
Consolidated projections for the full fiscal year ending March 31, 2014 (announced on November 6, 2013) are revised in this document.
For more details, please refer to the section of “(3) Explanation Regarding Consolidated Projections and Other Forward-Looking
Statements” of “1. Qualitative Information Regarding Consolidated Results for the Third Quarter” on page 4 of the attached material.
* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes(Note) For more details, please refer to the section of “(2) Application of Special Accounting for Preparing the Quarterly Consolidated
Financial Statements” of “2. Matters Regarding Summary Information (Notes)” on page 5 of the attached material.
(3) Changes in Accounting Policies, Changes in Accounting Estimation and Restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations: Nob) Changes in accounting policies due to revisions to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
As of December 31, 2013
222,000,000 shares
As of March 31, 2013
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of December 31, 2013
2,311,404 shares
As of March 31, 2013
2,309,342 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the Third Quarter of the Fiscal Year Ending March 31, 2014
219,689,720 shares
For the Third Quarter of the Fiscal Year Ended March 31, 2013
219,691,394 shares* Implementation status of quarterly review
This Consolidated Financial Report for the Third Quarter was exempt from quarterly review which was based on Financial Instruments
and Exchange Law of Japan. As of the third quarter disclosing, quarterly review for the quarterly consolidated financial statements isunder way.
* Explanation on appropriate use of the projections of business results, etc.
- Forward-Looking Statements:
This document contains forward-looking statements that are based on management’s estimates, assumptions and projections at the timeof publication and those forward-looking statements do not purport to be a promise by the Company to achieve such results. A numberof factors could cause actual results to differ materially from expectations. Please refer to the section of “(3) Explanation Regarding
Consolidated Projections and Other Forward-Looking Statements” of “1. Qualitative Information Regarding Consolidated Results for
the Third Quarter” on page 4 of the attached material for matters pertaining to the earnings projections.
- To obtain the additional materials:
The additional materials of the Financial Results for the Quarter will be posted on the Company’s website on February 5, 2014.

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

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

3. Consolidated Financial Statements ..................................................................................................... 6(1) Quarterly Consolidated Balance Sheets .............................................................................................................................. 6(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive Income .... 8(Quarterly Consolidated Statements of Operations) ........................................................................................................... 8(Quarterly Consolidated Statements of Comprehensive Income) ...................................................................................... 9(3) Notes to Consolidated Financial Statements ..................................................................................................................... 10(Notes on Premise of Going Concern) ............................................................................................................................. 10(Notes on Significant Changes in the Amount of Stockholders’ Equity) ......................................................................... 10(Segment Information) ..................................................................................................................................................... 10(Significant Subsequent Events) ...................................................................................................................................... 11-1-

1. Qualitative Information Regarding Consolidated Results for the Third Quarter(1) Explanation Regarding Operating Results
During the third quarter (nine months) of the fiscal year ending March 31, 2014, although there were some bright signs
in the economic environment in Japan against a backdrop of economic policies and fiscal easing, such as improved
corporate profitability and individual consumption, the economic outlook remained uncertain due to concerns about theplanned increase to consumption tax and other factors. Meanwhile, individual consumption continued to be affected by theuncertain economic environments and other factors, in North America and Europe.
In this environment, the BANDAI NAMCO Group (“the Group”) implemented various measures aimed at medium- tolong-term growth under the concept of “Empower, Gain Momentum, Accelerate Evolution,” which is the vision of theGroup’s Mid-term Plan, started in April 2012. On the business front, sales were favorable in the Content Business in areas
including home video game software, visual and music content and network content. In addition, Toys and Hobby Businessperformed favorably, particularly for long-established character products in Japan.
Consequently, the Group’s consolidated results for the third quarter (nine months) were net sales of 368,126 million
yen (year-on-year increase of 5.0%), operating income of 42,782 million yen (year-on-year decrease of 3.2%), recurringincome of 45,696 million yen (year-on-year increase of 1.4%), and net income of 29,702 million yen (year-on-yearincrease of 6.1%).
Operating Results by Segment
Toys and Hobby BusinessIn the Toys and Hobby Business, in Japan, sales performed favorably thanks to cross-functional efforts undertaken
across all businesses for long-established IP (character toys and other intellectual property) such as Kyouryuger (Power
Rangers series) and DOKIDOKI! PRETTY CURE in addition to products of new IP Aikatsu! for girls. Also, the Group
strived to broaden the variety of its target customers by such means as stepping up development of products for babies andpre-school children, and also for adults to steadily move toward achieving our objective of becoming No. 1 in each target
and market in Japan by an overwhelming margin.
Overseas, in North America and Europe, products of the Power Rangers series sold steadily but overall sales of North
America and Europe were below the plan created at the beginning of the fiscal year. In the Asian region, toys, plastic
models, collectable toys for adults and card products became popular thanks to developments in conjunction with Japan.
As a result, net sales in the Toys and Hobby Business were 136,509 million yen (year-on-year increase of 5.6%), andsegment income was 11,606 million yen (year-on-year decrease of 7.4%).
Content BusinessLooking at the Content Business, in the area of home video game software, JOJO’s BIZARRE ADVENTURE ALL
STAR BATTLE and GOD EATER 2 were hits, while there were favorable repeat sales of several products including Disney
MAGIC CASTLE MY HAPPY LIFE and the TAIKO: DRUM MASTER series, which was launched in the previous fiscal
year. In the area of network content, social games such as ONE PIECE Grand Collection, Mobile Suit Gundam series and
THE IDOL M@STER series, as well as applications for smartphones and online games, sold stably and contributed to
improve the performance.
In the area of visual and music content, strong sales were realized from multiple new titles such as SPACEBATTLESHIP YAMATO 2199 and LoveLive! School idol project, as well as animation related music titles. The Group
strived to maximize IP value through cross-functional efforts in the Content Business by linking products and services with
network functions and events.
As a result, net sales in the Content Business were 197,788 million yen (year-on-year increase of 7.0%), and segment
income was 32,578 million yen (year-on-year increase of 5.1%).

-2-

Amusement Facility BusinessIn the Amusement Facility Business, in Japan, the Group newly opened three indoor theme parks as a measure to build
a new business pillar following the existing amusement facility businesses. Despite also promoting the development ofdifferentiated facilities that offer the experience of the Group’s distinctive worldview of specific intellectual properties,
sales of existing facilities declined from the same period of the previous fiscal year to 94.1%.
As a result, net sales in the Amusement Facility Business were 43,067 million yen (year-on-year decrease of 1.8%), andsegment loss was 681 million yen (compared with segment income of 940 million yen for the same period of the previous
fiscal year).
Number of Facilities as of December 31, 2013
Directly Managed
Revenue-Sharing
Facilities
Facilities
263
1,041

Others

Total

4

1,308

Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kinds ofadministration and operational support for each of the Group’s strategic business units: Toys and Hobby SBU, Content
SBU, and Amusement Facility 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 20,385 million yen (year-on-year increase of 4.4%), and segment
income was 1,567 million yen (year-on-year decrease of 9.5%).
(2) Explanation Regarding Financial Position
At the end of the third quarter of the fiscal year ending March 31, 2014, total assets stood at 401,254 million yen, an
increase of 27,050 million yen from the end of the previous fiscal year. The main factors were increases of 7,983 million
yen in trade receivables, 6,270 million yen in finished goods and merchandise, 8,065 million yen in work in process, 4,462
million yen in property, plant and equipment, and 3,656 million yen in investment securities included in other investments
and assets, while there was a decrease of 3,857 million yen in cash and time deposits.
Total liabilities amounted to 125,090 million yen, a decrease of 343 million yen from the end of the previous fiscal year.
The main factors were decreases of 3,323 million yen in accrued income taxes mainly due to income taxes paid and 3,574
million yen in accrued employee bonuses included in other current liabilities mainly due to employee bonuses paid, while
there was an increase of 6,396 million yen in trade payables.
Total net assets stood at 276,163 million yen, an increase of 27,394 million yen from the end of the previous fiscal year.
The main factors were increases of 19,811 million yen in retained earnings thanks to the recording of net income and 6,769
million yen in foreign currency translation adjustment due to foreign exchange fluctuation, despite cash dividends paid of
9,891 million yen.
As a result, the equity ratio became 68.5% compared with 66.0% at the end of the previous fiscal year.

-3-(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, although there are some bright signs in Japan’s economic trend, the business environment is expected
to remain beset by uncertainties including the individual consumption trends and economic trends, due to concerns over theplanned consumption tax increase. 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 will powerfully deploy its IP strategy in the strongly performing Toys andHobby Business in Japan, and Content Business to further expand its share in each market as it approaches the fiscal year
ending March 31, 2015, the final fiscal year of the three-year Mid-term Plan, which started in April 2012. Meanwhile, in
the Toys and Hobby Business in North America and Europe and the Amusement Facility Business, which are operating
under difficult conditions, the Group will implement measures to construct a stable business foundation.
In the Toys and Hobby Business, our plan for the Japanese market is to further strengthen the business foundation
through the stable deployment of long-established IP such as the Mobile Suit Gundam series, Super Sentai series (Power
Rangers series), KAMEN RIDER series, and PRETTY CURE! series. We will also expand our IP lineup by such means as
developing and expanding the new IP Aikatsu! for girls through cross-functional efforts undertaken across all businesses
and launching new IP for elementary-school-age boys. In tandem with this, we will aim to be No. 1 in Japan by
overwhelming margin by introducing new products and services targeting a variety of customers, such as card games,
plastic models, and collectable toys for adults. Overseas, in North America and Europe where the market environment
continues to be harsh, the Group aims to develop a stable portfolio with multiple IP by launching new IP products inaddition to Power Rangers series, the mainstay IP. The Group will also strive to construct a business foundation in theregions of North America and Europe by fundamentally reforming the organizational framework and revenue structure. In
Asian areas, the Group aims to achieve growth through developments in conjunction with Japan, focusing on plastic
models, collectable toys for adults and card products that are popular in Japan.
In the Content Business, the Group will respond swiftly to new outlets and create and develop new IP to supplement
existing IP to further enhance its IP strategy for offering products and services in a wide variety of categories with a focus
on IP. Furthermore, the Group will put in place and improve the development environment from a medium- and long-term
perspective, such as by implementing measures to respond swiftly to technological progress and changes in theenvironment. In addition, by fusion of the virtual and the real such as through the synergistic linking of products andservices with concerts and live events, the Group will strive to create new added value and maximize IP value.
Looking at approaches by business, in the network content area, the Group will work to achieve stable development ofcontent by launching new titles that appeal to changing user tastes and releasing timely upgrades of existing titles. In thearea of home video game software, the Group will introduce popular series while also taking a more proactive approach to
new initiatives that make use of network functions such as download-only titles. In arcade game machines, the Group will
work on the development and sale of popular game machines. In the area of visual and music content, the Group will work
to supplement sales of various new packages of software by taking a proactive approach to creating new IP like the
Aikatsu! characters.
In the Amusement Facility Business, in Japan, the Group will strive to realize our unique capability such as bydevelopment of facilities that can offer the experience of IP worldviews, and closely coordinated efforts with other Groupbusinesses including the arcade game machine business. In addition, the Group will continuously implement reform andstreamlining of the organizational framework and it aims to build a new business pillar by directing efforts toward thetheme park business and a new business format.
In North America and Europe, the Group will strive to improve profitability by implementing various efficiency
measures.
In light of results in the third quarter (nine months), recent performance trends in each business, which take into
account the market environment, the situation of the Toys and Hobby Business in North America and Europe, and therecording of losses from store closures and disposals of machines whose use is expected to be low in the Amusement
Facility Business, the Group has revised its consolidated projections for the full fiscal year ending March 31, 2014 thatwere announced in the Consolidated Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2014 on
November 6, 2013. The details are shown in the table below.

-4-Revision to the consolidated projections for the full fiscal year
(April 1, 2013 to March 31, 2014)
Operating
Net Sales
Income(¥ million)(¥ million)
Previous projections (A)485,000
45,000
Revised projections (B)485,000
45,000Change in amount (B–A)
00Change (%)
0.0
0.0
Reference: Results for theprevious fiscal year
487,241
48,642

Recurring
Income(¥ million)
46,50046,5000
0.0

Net
Income(¥ million)
29,00025,500(3,500)(12.1)

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

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

(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements
Calculation of taxes
Taxes are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting against
income before income taxes and minority interests for the fiscal year including the current third quarter, and next bymultiplying the quarterly income before income taxes and minority interests by such estimated effective tax rate.

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

Current 3rd quarter(As of December 31, 2013)

AssetsCurrent assets
Cash and time deposits

119,132

115,275

Trade receivables

77,06985,053

Short-term investments

4,379

3,893

Finished goods and merchandise

10,915

17,186Work in process

19,597

27,663

Raw materials and supplies

6,130

6,781

Other current assets

28,06328,097

Allowance for doubtful receivables

(484)

(605)

264,804

283,344

Property, plant and equipment

47,25551,718Intangible assets

8,497

9,174

54,98457,887

Total current assets
Fixed assets

Investments and other assets
Other investments and assets
Allowance for doubtful receivables(1,338)(870)

Total investments and other assets

53,64657,016109,399

117,909374,203401,254

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

Current 3rd quarter(As of December 31, 2013)

Liabilities
Current liabilities
Trade payables

46,471

52,868

Short-term borrowings

5,596

6,347

Accrued income taxes

7,852

4,529

Provision

3,281

2,624

Other current liabilities

45,18943,048

Total current liabilities

108,391

109,417Long-term borrowings

7,500

5,206

Accrued retirement and severance benefits

3,724

4,317

Long-term liabilities

Other provision–

365

Other long-term liabilities

5,817

5,783

Total long-term liabilities

17,042

15,672

125,433

125,090

10,00010,000Total liabilities
Net assets
Stockholders’ equity
Common stock
Additional paid-in capital

52,24552,245Retained earnings

199,118

218,929

Treasury stock(2,385)(2,389)Total stockholders’ equity

258,979

278,786

5,212

6,772

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

642

311

Revaluation reserve for land, net of tax(5,608)(5,608)Foreign currency translation adjustment(12,194)(5,424)

Total accumulated other comprehensive income(11,948)(3,948)–44

Subscription rights to shares
Minority interests

1,738

1,282

Total net assets

248,769

276,163374,203401,254

Total liabilities and net assets-7-

(2) Quarterly Consolidated Statements of Operations and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Operations)(¥ million)
Prior 3rd quarter(From April 1, 2012
to December 31, 2012)

Current 3rd quarter(From April 1, 2013
to December 31, 2013)

Net sales

350,637

368,126

Cost of sales

212,100

224,119

Gross profit

138,536

144,007

Selling, general and administrative expenses

94,342

101,225

Operating income

44,19442,782

243

1,168

–

828

Other non-operating income

824

1,514

Total non-operating income

1,067

3,511

Provision for loss on guarantees–

365

Other non-operating expenses

215

231

Non-operating income
Equity in gain of affiliated companies
Foreign exchange gains

Non-operating expenses

Total non-operating expenses
Recurring income

215

597

45,04645,696Extraordinary income
Gain on sales of investments in affiliated companies

32–

Gain on forgiveness of debts–

200

Gain on negative goodwill

24

101

Other extraordinary income

3875

Total extraordinary income

95

377

Loss on impairment of fixed assets

156

1,252

Provision for losses from business restructuring

322–

Other extraordinary loss

471

529

Extraordinary loss

Total extraordinary loss

950

1,782

Income before income taxes and minority interests

44,191

44,291

Income taxes

16,014

14,471

Income before minority interests

28,17629,819Minority interests
Net income

-8-

181

117

27,99529,702

(Quarterly Consolidated Statements of Comprehensive Income)(¥ million)
Prior 3rd quarter(From April 1, 2012
to December 31, 2012)
Income before minority interests

Current 3rd quarter(From April 1, 2013
to December 31, 2013)

28,17629,819Unrealized gains or losses on other securities, net of tax

(153)

1,526

Deferred gains or losses on hedges, net of tax

(238)

(330)

Foreign currency translation adjustment

1,425

6,855

(2)

49

Other comprehensive income

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

1,031

8,101

29,20837,921

Comprehensive income attributable to owners of the parent

29,00137,702Comprehensive income attributable to minority interests

206

218

Comprehensive income
Comprehensive income attributable to-9-(3) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.

(Notes on Significant Changes in the Amount of Stockholders’ Equity)
Not applicable.

(Segment Information)
Segment Information
I. Prior 3rd quarter (From April 1, 2012 to December 31, 2012)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)

43,798343,400

7,237

350,637–

350,6379,315

4714,622

12,283

26,905(26,905)–

129,279

184,898

43,845358,023

19,520377,543(26,905)

350,637

12,52930,982940

44,452

1,732

46,184(1,989)44,194

Toys and
Hobby
Business

To external customers

Content
Business

Amusement
Facility
Business

124,018

175,583

Inter-segment sales
and transfers

5,260

Total

(Note 2)

(Note 3)

Net sales

Segment income

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
Included in the 1,989 million yen deducted from segment income as adjustment are an addition of 333 million
yen in inter-segment eliminations, and a deduction of 2,323 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration
division that has not been attributed to a reportable segment.
Segment income is adjusted with operating income in the quarterly consolidated statements of operations.

2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.

- 10 -

II. Current 3rd quarter (From April 1, 2013 to December 31, 2013)
1. Information regarding the amounts of net sales and income/loss by reportable segment(¥ million)
Reportable Segments
Adjustments

Consolidated
Total

Total

Subtotal

Other(Note 1)43,017360,785

7,341

368,126–

368,126

10,25350

16,57813,044

29,623(29,623)–

136,509

197,788

43,067377,364

20,385

397,750(29,623)

368,126

11,60632,578(681)

43,503

1,567

45,071(2,288)42,782

Toys and
Hobby
Business

To external customers
Inter-segment sales
and transfers

Content
Business

Amusement
Facility
Business

130,233

187,534

6,275

Total
Segment income (loss)(Note 2)

(Note 3)

Net sales

Notes: 1.
2.

3.

The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services and printing for each of the Group’s strategic business units are classified.
Included in the 2,288 million yen deducted from segment income (loss) as adjustment are a deduction of 57
million yen in inter-segment eliminations, and a deduction of 2,230 million yen in corporate expenses thatcannot be allocated to any reportable segment. The corporate expenses are mainly costs related to theadministration division that has not been attributed to a reportable segment.
Segment income (loss) is adjusted with operating income in the quarterly consolidated statements of operations.

2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
In the Amusement Facility Business segment, a loss on impairment of fixed assets has been recorded mainly due toscheduled store closures and disposals of machines whose use is expected to be low. In the third quarter (ninemonths), the corresponding amount recorded in loss on impairment of fixed assets was 1,175 million yen.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.
(Significant Subsequent Events)
At its meeting of the Board of Directors held on February 5, 2014, the Company resolved matters pertaining to business
revitalization initiatives aimed at improving the profitability of the Amusement Facility Business such as store closuresand the disposals of machines whose use is expected to be low.
This decision is expected to result in the recording of approximately 2,700 million yen of extraordinary loss in the fourth
quarter of the fiscal year ending March 31, 2014.

- 11 -