Consolidated Financial Report for the Fiscal Year Ended
March 31, 2017

May 10, 2017

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

Stock Listing: Tokyo Stock Exchange
Code Number: 7832
(URL: http://www.bandainamco.co.jp/)
May 10, 2017

Consolidated Financial Report for the Fiscal Year Ended March 31, 2017 (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 19, 2017
Scheduled starting date for dividend payments:
June 20, 2017
Scheduled filing date of the annual security report:
June 20, 2017
The Financial Highlights 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, 2017 (April 1, 2016 to March 31, 2017)(1) Consolidated Operating Results

Fiscal Year Ended
March 31, 2017
Fiscal Year Ended
March 31, 2016

Net sales¥ million
620,061%
7.7

575,504

1.8

Profit attributable toowners of parent¥ million%
44,15927.7(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
63,23827.4
63,29024.7
49,641(11.9)

Basic earnings per share

50,774(14.5)

Diluted earnings per share¥
Fiscal Year Ended
201.03
March 31, 2017
Fiscal Year Ended
34,583(8.0)
157.43
March 31, 2016
(Note) Comprehensive income: 43,104 million yen [57.4%] (FY2017.3), 27,377 million yen [(36.9)%] (FY2016.3)
ROE(Profit attributable toowners of parent / Net
assets)ROA(Recurring profit /Total assets)¥
200.97157.39Operating margin(Operating profit /Net sales)%%%
Fiscal Year Ended
13.3
13.5
10.2
March 31, 2017
Fiscal Year Ended
11.2
11.4
8.6
March 31, 2016
(Reference) Gain or loss from application of equity method: 556 million yen (FY2017.3), 1,508 million yen (FY2016.3)(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
As of March 31, 2017
488,032
348,784
71.3
As of March 31, 2016
448,336
317,304
70.6(Reference) Equity: 348,106 million yen (as of March 31, 2017), 316,663 million yen (as of March 31, 2016)

Net assets
per share¥
1,584.71
1,441.49

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

Cash flows frominvesting activities

Cash flows fromfinancing activities¥ million
64,136¥ million(13,016)¥ million(13,171)

Cash and cash
equivalents at endof period¥ million
205,667

58,049(23,425)(16,123)

169,542

Fiscal Year Ended
March 31, 2017
Fiscal Year Ended
March 31, 2016
2. Cash Dividends

Fiscal Year Ended
March 31, 2016
Fiscal Year Ended
March 31, 2017

End offirstquarter¥––

Annual cash dividends
End of
End ofFiscalsecondthird
year-endquarterquarter
¥
¥
¥
12.00
–
40.00
12.00

–

70.00

Total

¥
52.00

Total
Payout ratio
Dividend /dividend(Consolidated) Net assets
payment(Consolidated)(Full year)¥ million%%
11,429
33.0
3.7

82.00

18,023

40.8

5.4

Fiscal Year Ending
–
12.00
–
12.00
24.00
13.2
March 31, 2018
(Projections)(Note) The year-end cash dividend per share for the fiscal year ended March 31, 2017 consists of:
Ordinary cash dividend per share: 50.00 yen and Special dividend per share: 20.00 yen.
Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending
March 31, 2018, the stable dividend is stated based on the Company’s basic policy on the distribution of profits. The
year-end cash dividend for the fiscal year ending March 31, 2018, 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, 2018 (April 1, 2017 to March 31, 2018)(Percentages indicate year-on-year changes.)
Net sales
OperatingRecurring
Profit attributable
Basic earnings
profitprofitto owners
per shareof parent¥ million% ¥ million% ¥ million% ¥ million%¥
Six Months Ending
275,000(6.6)
22,500 (42.2)
23,000 (39.9)
16,000 (47.0)
72.84
September 30, 2017
Full Fiscal Year
600,000(3.2)
57,000(9.9)
58,000(8.4)
40,000(9.4)
182.10* 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 (Anime Consortium Japan Inc.) Excluded: – company(2) 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(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, 2017
222,000,000 shares
As of March 31, 2016b) Number of shares of treasury stock at the end of the period
As of March 31, 2017
2,334,579 shares
2,321,565 shares
As of March 31, 2016c) Average number of shares during the period
For the Fiscal Year Ended March 31, 2017219,672,077 shares
219,679,282 shares
For the Fiscal Year Ended March 31, 2016

(Reference) Non-consolidated Information
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2017 (April 1, 2016 to March 31, 2017)(1) Non-consolidated Operating Results

Fiscal Year Ended
March 31, 2017
Fiscal Year Ended
March 31, 2016

Fiscal Year Ended
March 31, 2017
Fiscal Year Ended
March 31, 2016

Operating revenue¥ million%
24,309(16.9)(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
19,103(25.7)
19,233(26.1)

29,241

21.1

Profit¥ million
12,399%(52.2)¥
56.41

Diluted earnings per share
¥
56.40

–

118.05118.0225,946

25,696

15.3

Basic earnings per share

26,023

15.2(2) Non-consolidated Financial Position
Total assets

Net assets

Equity ratio¥ million¥ million%
354,697
251,257
70.8
As of March 31, 2016
348,350
249,403
71.6(Reference) Equity: 251,158 million yen (as of March 31, 2017), 249,304 million yen (as of March 31, 2016)
As of March 31, 2017

Net assets
per share¥
1,142.70
1,134.26

2. Non-consolidated Projections for the Fiscal Year Ending March 31, 2018 (April 1, 2017 to March 31, 2018)(Percentages indicate year-on-year changes.)
ProfitBasic earnings
Operating revenue
Recurring profit
per share¥ million% ¥ million% ¥ million%¥
Full Fiscal Year
20,000(17.7)
14,000(27.2)
14,00012.9
63.70* Consolidated Financial Reports are not required to be audited.
* 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 “(4) Future Outlook” of “1.
Overview of Operating Results and Others” on page 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 10, 2017.

Attached Material
Index
1. Overview of Operating Results and Others ....................................................................................... 2(1) Overview of Operating Results for the Period (April 1, 2016 to March 31, 2017) ............................................................ 2(2) Overview of Financial Position for the Period ................................................................................................................... 3(3) Overview of Cash Flows for the Period ............................................................................................................................. 3(4) Future Outlook ................................................................................................................................................................... 4(5) Basic Policy on the Distribution of Profits ......................................................................................................................... 5

2. Basic Concept Regarding Selection of Accounting Standards .......................................................... 5
3. Consolidated Financial Statements and Significant Notes ................................................................ 6(1) Consolidated Balance Sheets.............................................................................................................................................. 6(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income.................................... 8(Consolidated Statements of Operations) ........................................................................................................................... 8(Consolidated Statements of Comprehensive Income) ....................................................................................................... 9(3) Consolidated Statements of Changes in Net Assets ......................................................................................................... 10(4) Consolidated Statements of Cash Flows .......................................................................................................................... 12(5) Notes to Consolidated Financial Statements .................................................................................................................... 14(Notes on Premise of Going Concern) ............................................................................................................................. 14(Additional Information) .................................................................................................................................................. 14(Segment Information) ..................................................................................................................................................... 15(Per-Share Data) ............................................................................................................................................................... 20(Significant Subsequent Events) ...................................................................................................................................... 21

4. Other .................................................................................................................................................... 23
Changes in Directors and Audit & Supervisory Board Members ........................................................................................... 23-1-

1. Overview of Operating Results and Others(1) Overview of Operating Results for the Period (April 1, 2016 to March 31, 2017)
During the fiscal year ended March 31, 2017, the Japanese economy continued to moderately recover, supported
mainly by a recovery in personal consumption and improved corporate profitability. However, the outlook for the overall
economy remained uncertain. Overseas, personal consumption was steady, but impacted in some regions by uncertainty
due to political instability and other factors.
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 cultivating new IP (Intellectual Property: meaning charactersand other intellectual property), expanding target markets, and growing new businesses as part of efforts to strengthen the“IP Axis Strategy” that aims to maximize IP value through the provision of the best products and services at the best
possible times.
The Group also worked to expand its IP lineup, business fields and areas in overseas including Asia, North America
and Europe.
On the business front, the Company recorded year-on-year increases in the Network Entertainment Business, which
performed well, mainly in network content and overseas home video games, and in the Visual and Music Production
Business, which delivered a strong performance mainly in its key IP products.
Consequently, the Group’s consolidated results for the fiscal year ended March 31, 2017 were net sales of 620,061
million yen (year-on-year increase of 7.7%), operating profit of 63,238 million yen (year-on-year increase of 27.4%),
recurring profit of 63,290 million yen (year-on-year increase of 24.7%), and profit attributable to owners of parent of
44,159 million yen (year-on-year increase of 27.7%).
<Operating Results by Segment>
Operating results by segment are as follows.
Toys and Hobby BusinessIn the Toys and Hobby Business, earnings declined from the previous fiscal year, in which highly profitable products
grew in popularity in Japan and Asia; however, the Group’s key long-established IP products sold favorably in each region.
In Japan, there were favorable sales for long-established IP products such as the Mobile Suit Gundam series, KAMENRIDER series, Super Sentai series, and PRETTY CURE! series. In addition, the Group implemented measures to strengthen
the IP axis strategy by taking steps to expand its target markets for adults and IP lineup and the like. Overseas, in the Asian
region, products of the Mobile Suit Gundam series and collectable toys for adults became popular. In North America andEurope, products of the Power Rangers series gained in popularity, and the Group worked to strengthen its IP lineup bycommercializing locally developed IP and the like.
As a result, net sales in the Toys and Hobby Business were 193,229 million yen (year-on-year decrease of 6.4%), andoperating profit was 10,991 million yen (year-on-year decrease of 33.9%).
Network Entertainment BusinessFor home video games in the Network Entertainment Business, sales were favorable for the new titles DARK SOULS
III and DRAGON BALL XENOVERSE 2 in North America and Europe. In network content such as game applications for
smartphones, key titles released worldwide such as DRAGON BALL Z DOKKAN BATTLE and ONE PIECE Treasure
Cruise gained in popularity, while key titles in Japan such as The iDOLM@STER Cinderella Girls: Starlight Stage retained
popularity. In amusement facilities, the Group’s existing facilities in Japan performed favorably due to targeting resourceson key facilities and other measures, and the Group also took measures to strengthen stores in new business formats. In thearcade game machines, various measures to strengthen its foundations and thereby improve profitability have generated
effects. In addition, in home video games and arcade game machines, the Group worked proactively to develop products
and services incorporating new technologies such as virtual reality (VR).
As a result, net sales in the Network Entertainment Business were 380,273 million yen (year-on-year increase of
18.5%), and operating profit was 44,298 million yen (year-on-year increase of 85.1%).
Visual and Music Production BusinessIn the Visual and Music Production Business, the LoveLive! series, which is IP for which visual content was developedin conjunction with music content and live events, retained popularity. In addition, the GIRLS und PANZER series gained
popularity especially for products themed around a movie release, and sales of visual and music package software, as well-2-

as related products, were favorable. Moreover, in the Mobile Suit Gundam series, products such as visual package softwareof the MOBILE SUIT GUNDAM THE ORIGIN series sold favorably.
As a result, net sales in the Visual and Music Production Business were 56,290 million yen (year-on-year increase of
8.3%), and operating profit was 13,436 million yen (year-on-year increase of 15.2%).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support, printing, and other kinds ofadministration and operational support for each of the Group’s strategic business units: Toys and Hobby SBU, Network
Entertainment SBU, and Visual and Music Production SBU. We are making efforts to manage such operations related togroup support in an efficient manner.
As a result, net sales in the Other Businesses were 26,797 million yen (year-on-year decrease of 2.4%), and operating
profit was 702 million yen (year-on-year decrease of 37.5%).
(2) Overview of Financial Position for the Period
At the end of the fiscal year ended March 31, 2017, total assets stood at 488,032 million yen, an increase of 39,696
million yen from the end of the previous fiscal year. The main factors were increases of 30,758 million yen in cash andtime deposits, 3,218 million yen in work in process, and 4,683 million yen in investment securities.
Total liabilities amounted to 139,248 million yen, an increase of 8,216 million yen from the end of the previous fiscal
year. The main factors were increases of 5,909 million yen in accrued income taxes, 2,908 million yen in accounts
payable-other included in other current liabilities, and 2,484 million yen in accrued employee bonuses included in othercurrent liabilities, while there was a decrease of 4,153 million yen in net defined benefit liability mainly due to contribution
to retirement benefit trust.
Total net assets stood at 348,784 million yen, an increase of 31,479 million yen from the end of the previous fiscal year.
The main factor was an increase of 32,753 million yen in retained earnings thanks to the recording of 44,159 million yen in
profit attributable to owners of parent, despite a decrease of 2,936 million yen in foreign currency translation adjustment
due to foreign exchange fluctuation and cash dividends paid of 11,429 million yen.
As a result, the equity ratio became 71.3% compared with 70.6% at the end of the previous fiscal year.
(3) Overview of Cash Flows for the Period
As of the end of the fiscal year, cash and cash equivalents (“funds”) remaining on hand had increased by 36,124 million
yen from the end of the previous fiscal year to 205,667 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 64,136 million yen (year-on-year increase of 10.5%). As a
breakdown of funds used, income taxes paid was 10,462 million yen (compared with 18,902 million yen in the previous
fiscal year). However, overall, there was a net increase in funds due to profit before income taxes of 60,860 million yen(compared with 48,489 million yen in the previous fiscal year) and depreciation and amortization of 21,854 million yen(compared with 21,626 million yen in the previous fiscal year).
(Cash Flows from Investing Activities)
The amount of funds used in investing activities totaled 13,016 million yen (year-on-year decrease of 44.4%). The main
breakdown of funds used was purchases of property, plant and equipment and intangible assets totaling 14,821 million yen(compared with 19,206 million yen in the previous fiscal year).
(Cash Flows from Financing Activities)
The amount of funds used in financing activities totaled 13,171 million yen (year-on-year decrease of 18.3%). The
main breakdown of funds used was cash dividends paid of 11,429 million yen (compared with 13,627 million yen in theprevious fiscal year) and repayment of long-term borrowings of 1,315 million yen (compared with 2,261 million yen in theprevious fiscal year).

-3-

(Reference) Cash Flow Indices
FY2013.3

FY2014.3

FY2015.3

FY2016.3

FY2017.3

Equity ratio (%)

66.0

66.0

68.6

70.6

71.3

Equity ratio (market capitalization basis) (%)

97.8

132.5

116.3

120.2

149.9

Cash flows to interest bearing debt ratio(years)

0.4

0.2

0.1

0.0

0.0

244.8

308.0

635.3

1,123.3

1,718.0

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.
(4) 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 overseas political trends. 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 businessenvironment.
Facing these circumstances, the Group has been pushing ahead with a Mid-term Plan with the vision “NEXT STAGE:
Empower, Gain Momentum, and Accelerate Evolution” since 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 uniquecharacteristics of its 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 overseas including Asia, North
America and Europe.
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
work to expand its IP lineup, business fields and areas in Asia, North America and Europe. 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 in global markets.
In order to carry out these initiatives, the Group is pushing ahead with each of its strategies with a focus on these three
SBUs (Strategic Business Units). The Toys and 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 and fuses networks and entertainment, and the Visual and Music Production SBU will create IP
and strengthen the Group’s business deployment as it looks toward new outlets. As one part of expanding target markets,
effective the fiscal year ending March 31, 2018, three companies belonging to the Network Entertainment SBU will be
reorganized as companies belonging the Toys and Hobby SBU in order to further deepen cooperation among the businesses
that develop products for adult customers.
In the fiscal years ended March 31, 2016 and 2017, the Group made progress with Business Strategies to “Accelerate
Evolution in IP Axis Strategy.” Specifically, it created and cultivated 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 games inNorth America and Europe, and expanded the development of network content for each overseas regional market. In
Functional Strategies to “Empower and Innovate Business Model,” the Group developed and provided products andservices that integrate real and virtual elements, and developed products and services incorporating new technologies suchas VR. Going forward, the Group will continue to implement a range of measures to respond rapidly and flexibly to the-4-fast-changing entertainment market based on constant monitoring of conditions in the Group and the operating
environment, and develop solid business foundations in order to continually achieve stable-earnings of a 500,000 million
yen for net sales and a 50,000 million yen for operating profit in this industry that is characterized by rapid changes inoperating climate and user preferences. Furthermore, intending to move to the next stage as an entertainment corporategroup, we will endeavor to link the results of the current Mid-term Plan to the growth strategies of the next Mid-term Planscheduled to begin from April 2018.
In light of the above considerations, the consolidated projections of the fiscal year ending March 31, 2018 are as
follows: net sales of 600,000 million yen (year-on-year decrease of 3.2%), operating profit of 57,000 million yen(year-on-year decrease of 9.9%), recurring profit of 58,000 million yen (year-on-year decrease of 8.4%), and profit
attributable to owners of parent of 40,000 million yen (year-on-year decrease of 9.4%).
(5) 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’s basic policy is to provide a return to shareholders that targets a payout ratio of 30% in
accordance with consolidated operational results and based on stable annual dividend payments of 24 yen per share. The
Company will add a performance-based dividend of 38 yen and a special dividend of 20 yen per share to the stable annual
dividend of 24 yen per share to pay an annual dividend of 82 yen per share for this fiscal year (year ended March 31, 2017).
The Company plans to pay the special dividend, to express its thanks to shareholders concerning its achievement of therecord-high net sales and profit and its surpassing, one year ahead of schedule, of 600,000 million yen in net sales and60,000 million yen in operating profit, the final numerical targets of its three-year Mid-term Plan started in April 2015.
Since the Company paid an interim dividend of 12 yen per share in December 6, 2016, the year-end dividend will be 70
yen per share.
At present, the Company’s annual dividend forecast for next fiscal year (year ending March 31, 2018) is the stabledividend of 24 yen per share, and this will be considered by the Company in light of the consolidated operating results andother 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.

2. 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.

-5-

3.

Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year

Current Fiscal Year(As of March 31, 2016)(As of March 31, 2017)

AssetsCurrent assets
Cash and time deposits

174,757

205,516

Trade receivables

72,53075,519Finished goods and merchandise

16,743

14,466Work in process

25,60528,823

Raw materials and supplies

3,893

3,398

Deferred tax assets

8,522

9,240

Other current assets

20,73021,271

(606)

(453)

322,176

357,782

32,82030,699

Accumulated depreciation(15,956)(15,343)

Buildings and structures, net

16,863

15,356

Amusement facilities and machines

57,25858,975

Accumulated depreciation(44,572)(46,876)

Amusement facilities and machines, net

Allowance for doubtful receivables
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures

12,685

12,098Land

11,025

11,155

Other property, plant and equipment

111,367

117,199

Accumulated depreciation(98,239)(103,624)

Other property, plant and equipment, net

13,127

13,57553,702

52,184

Intangible assets

9,449

9,686

Investments and other assets
Investment securities

34,51939,202

Total property, plant and equipment

Net defined benefit asset

71

71

Deferred tax assets

12,544

12,444

Other investments and assets

16,88718,321

Allowance for doubtful receivables(1,015)(1,662)

Total investments and other assets
Total fixed assets
Total assets-6-

63,007

68,378126,159

130,249448,336

488,032(¥ million)
Prior Fiscal Year

Current Fiscal Year(As of March 31, 2016)(As of March 31, 2017)

Liabilities
Current liabilities
Trade payables

62,64564,173

Accrued income taxes

2,747

8,657

Provision for directors’ bonuses

1,401

1,822

Provision for sales returns

970

780

Other provision

644

860

Other current liabilities

45,92349,815

Total current liabilities

114,333

126,110

9,920

5,766

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

443

433

Other long-term liabilities

6,333

6,938

Total long-term liabilities

16,697

13,138131,031

139,248

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

52,24652,064Retained earnings

265,231

297,984

Treasury stock(2,410)(2,423)

Total stockholders’ equity

325,067

357,626

Unrealized gains or losses on other securities, net of tax

6,907

7,884

Deferred gains or losses on hedges, net of tax

(706)

210

Revaluation reserve for land, net of tax(5,670)(5,693)Foreign currency translation adjustments(5,788)(8,725)Remeasurements of defined benefit plans, net of tax(3,145)(3,195)

Total accumulated other comprehensive income(8,403)(9,519)

Accumulated other comprehensive income

Subscription rights to shares

99

99

Non-controlling interests

541

577

317,304

348,784

448,336

488,032

Total net assets
Total liabilities and net assets-7-

(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior Fiscal Year
(From April 1, 2015
to March 31, 2016)

Current Fiscal Year
(From April 1, 2016
to March 31, 2017)

Net sales

575,504

620,061

Cost of sales

372,904

396,302

Gross profit

202,600

223,759

Selling, general and administrative expenses

152,959

160,520

Operating profit

49,641

63,238Interest income

216

318

Dividend income

352

275

Equity in gain of affiliated companies

1,508

556

Other non-operating income

1,018

1,029

Total non-operating income

3,094

2,179

Interest expense49

36

Foreign exchange losses

629

1,048

Loss on valuation of derivatives

750–

Provision of allowance for doubtful accounts

299

667

Other non-operating expenses

232

375

Non-operating income

Non-operating expenses

1,961

2,127

50,77463,290

900

316

0

72

Other extraordinary income

123

67

Total extraordinary income

1,025

455

Loss on impairment of fixed assets

2,552

1,306

Loss on disposal of fixed assets

93

545

Other extraordinary loss

664

1,034

Total extraordinary loss

3,311

2,886

Profit before income taxes

48,48960,860

Corporate income, inhabitant and enterprise taxes

13,746

17,343

186(680)

Total income taxes

13,932

16,662

Profit34,55644,197

Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investment securities

Extraordinary loss

Adjustment for income taxes

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

-8-

(27)

37

34,58344,159(Consolidated Statements of Comprehensive Income)(¥ million)
Prior Fiscal Year
(From April 1, 2015
to March 31, 2016)
ProfitCurrent Fiscal Year
(From April 1, 2016
to March 31, 2017)34,55644,197170

890(1,982)906

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

24–

Foreign currency translation adjustments(4,221)(2,936)

Remeasurements of defined benefit plans, net of tax(1,100)(50)

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

(70)

96

Total other comprehensive income
Comprehensive income(7,179)(1,092)

27,377

43,10427,40443,067(27)

37

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests-9-(3) Consolidated Statements of Changes in Net Assets
Prior 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

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 isappliedReversal of revaluation
reserve for land

(4)

(4)

0

0

0

0

(2)

(2)

–

Net changes of items otherthan shareholders’ equity
Total changes during the period
Balance at end of year–

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
of taxincomeBalance at beginning of year

6,757

1,300

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

Non-controllinginterests

575

Total net assets

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 isappliedReversal of revaluation
reserve for land

0

(2)

–

Net changes of items otherthan shareholders’ equity

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

Total changes during the period

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

Balance at end of year

- 10 -

Current Fiscal Year (From April 1, 2016 to March 31, 2017)(¥ million)
Stockholders’ equity
Additional paid-in
capitalCommon stock
10,000

Balance at beginning of year

52,246

Retained earnings

Treasury stock

265,231

Total stockholders’equity(2,410)

325,067

Changes during the period
Cash dividends(11,429)(11,429)

Profit attributable to ownersof parent

44,15944,159Purchase 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 isapplied

(4)

(4)

0

0

(182)

(182)

(8)

Reversal of revaluation
reserve for land

(8)

22

22

Net changes of items otherthan shareholders’ equity
Total changes during the period
Balance at end of year

–

(182)

32,753(12)

32,55810,00052,064297,984(2,423)357,626

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
of taxincomeBalance at beginning of year

6,907

(706)

(5,670)(5,788)(3,145)(8,403)99

Non-controllinginterests

541

Total net assets

317,304

Changes during the period
Cash dividends(11,429)

Profit attributable to ownersof parent

44,159Purchase 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 isappliedReversal of revaluation
reserve for land

(182)

(8)

(22)

(22)

–

Net changes of items otherthan shareholders’ equity

977

916

–

(2,936)(50)(1,092)–36(1,055)

Total changes during the period

977

916

(22)

(2,936)(50)(1,115)–36

31,4797,884

210(5,693)(8,725)(3,195)(9,519)99577

348,784

Balance at end of year

- 11 -

(4) Consolidated Statements of Cash Flows(¥ million)
Prior Fiscal Year
(From April 1, 2015
to March 31, 2016)

Current Fiscal Year
(From April 1, 2016
to March 31, 2017)

Cash flows from operating activities
Profit before income taxes

48,48960,860Depreciation and amortization

21,626

21,854

Loss on impairment of fixed assets

2,552

1,306

Amortization of goodwill

167

741

Increase (decrease) in allowance for doubtful receivables

170

394

Increase (decrease) in provision for sales returns
Increase (decrease) in provision for directors’ bonuses

1
137

(160)
421

Increase (decrease) in other provision

130

119

Increase (decrease) in net defined benefit liability

434

1,094

–

(5,350)

(568)
49

(593)
36

Contribution to retirement benefit trust
Interest and dividend income
Interest expense
Foreign exchange losses (gains)445

0(1,508)

(556)

93

545

Loss (gain) on sales of fixed assets, net

(897)

(211)

Loss on disposal of amusement facilities and machines

467

576

Equity in loss (gain) of affiliated companies
Loss on disposal of fixed assets

Loss (gain) on sales of investment securities, net

(0)

(71)

Decrease (increase) in trade receivables

14,526(2,999)Decrease (increase) in inventories(4,578)(1,048)Acquisition of amusement facilities and machines(3,532)(3,471)

Increase (decrease) in trade payables

6,736

1,517

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

2,940

Increase (decrease) in consumption tax payables(4,044)

1,074

Other

869

(4,958)Subtotal

76,441

74,060Interest and dividends received

562

575

Interest paid

(51)

(37)

Income taxes paid

(18,902)(10,462)

Net cash provided by operating activities

58,04964,136- 12 -

(¥ million)
Prior Fiscal Year
(From April 1, 2015
to March 31, 2016)

Current Fiscal Year
(From April 1, 2016
to March 31, 2017)

Cash flows from investing activities
Payments for deposit in time deposits(15,163)(1,902)

Proceeds from withdrawal from time deposits

10,8796,184

Purchases of property, plant and equipment(13,607)(9,451)

Sales of property, plant and equipment

2,224

1,191

Purchases of intangible assets(5,599)(5,369)(105)(2,946)

Purchases of investment securities
Sales of investment securities
Purchase of shares of subsidiaries and associates

34

177

(234)

(1,472)

Proceeds from sales of shares of subsidiaries and associates–

35

Purchase of shares of subsidiaries resulting in change inscope of consolidation

–

(340)

Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation–

955

Payments of loans receivable(539)(1,591)

Collection of loans receivable

272

760

(2,079)(782)

Collection of guarantee money deposited

700

1,586

Other

(208)

(51)

(23,425)(13,016)

Increase (decrease) in short-term borrowings, net

(357)

(341)

Proceeds from long-term borrowings

200

200

Repayment of long-term borrowings

Payments of guarantee money deposited

Net cash used in investing activities
Cash flows from financing activities(2,261)(1,315)

Payment of lease obligations

(65)

(62)

Purchase of treasury stock

(4)

(4)

Proceeds from disposal of treasury stock
Cash dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Cash dividends paid to non-controlling interests00(13,627)(11,429)

(6)

(217)

(0)

–

(16,123)(13,171)

Effect of exchange rate changes on cash and cash equivalents(2,722)(1,823)

Net increase (decrease) in cash and cash equivalents

15,77836,124

Cash and cash equivalents at beginning of year

153,764

169,542

Cash and cash equivalents at end of year

169,542

205,667

Net cash used in financing activities- 13 -

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

(Additional Information)
Application of Implementation Guidance on Recoverability of Deferred Tax Assets
Effective from the fiscal year ended March 31, 2017, the Company has applied the Implementation Guidance on
Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016).

Organizational restructuring in Europe and establishment of subsidiary in association thereof
The Company established BANDAI Toy S.A.S. (“BToy”) as a subsidiary of BANDAI S.A.S. (“Current BSAS”), a
subsidiary of the Company, on February 28, 2017 based on the resolutions of the Board of Directors meeting held on
December 16, 2016.
In September 2017, BANDAI NAMCO Holdings France S.A.S. (“BNHFR”) (name to be changed from Current BSAS)
will transfer its Toys and Hobby Business to BANDAI S.A.S. (“New BSAS”) (name to be changed from BToy) andtransition to a pure holding company.
1. Objective
Currently in Europe, Current BSAS, a subsidiary of the Company based in France under the regional headquarters in
the U.K., has two functions – a Toys and Hobby Business company and a holding company. Current BSAS is a businessholding company responsible for the Company’s operations in Continental Europe. The Company has decided toreorganize Current BSAS in order to promote greater cooperation within the Group and expand operations, by clearly
separating Current BSAS’s business company and holding company functions and strengthening governance function inContinental Europe.
2. Transactions conducted by commonly controlled entities(1) Overview of transaction(i) Name and content of business to be transferred
Toys and Hobby Business in France of BNHFR(ii) Date of business combination
September 2017 (scheduled)(iii) Legal form of business combination
A method corresponding to a Japanese absorption-type company split (BNHFR will transfer the assets andliabilities related to the Toys and Hobby Business at the book value, and New BSAS will issue shares to
BNHFR as consideration for the transaction)(2) Overview of accounting process
The accounting process for the consolidated financial statements is to be carried out as transactions conducted bycommonly controlled entities, in accordance with the Accounting Standard for Business Combinations (ASBJ
Statement No. 21, September 13, 2013), the Accounting Standard for Business Divestitures (ASBJ Statement No. 7,
September 13, 2013) and Guidance on the Accounting Standard for Business Combinations and the AccountingStandard for Business Divestitures (ASBJ Guidance No. 10, September 13, 2013).

- 14 -

(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 home video games 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.

2. Method for calculating the amounts of net sales, profit/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 21, 2016).
The income of reportable segments is measured by operating profit.
The inter-segment transactions are based on prevailing market prices.

- 15 -

3. Information regarding the amounts of net sales, profit/loss, assets, liabilities and others by reportable segment
Prior Fiscal Year (From April 1, 2015 to March 31, 2016)(¥ million)
Reportable Segments
Toys and
Hobby
Business

Visual and
Network
Music
Entertainment
Production
Business
Business

Other
Subtotal(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To externalcustomers

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

Segment profit

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

Loss on impairmentof fixed assets

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 profit 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 loss on impairment of fixed assets as adjustment is related tocorporate assets that cannot 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 profit is adjusted with operating profit in the consolidated statements of operations.

- 16 -

Current Fiscal Year (From April 1, 2016 to March 31, 2017)(¥ million)
Reportable Segments
Toys and
Hobby
Business

Visual and
Network
Music
Entertainment
Production
Business
Business

Other
Subtotal(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To externalcustomers

185,701

371,998

52,896

610,597

9,464

620,061–

620,061Inter-segment sales
and transfers

7,527

8,274

3,393

19,196

17,33336,529(36,529)–

Total

193,229

380,273

56,290629,793

26,797

656,590(36,529)620,061

Segment profit

10,991

44,29813,436

68,727702

69,429(6,190)63,238Segment assets

104,294

181,427

44,031

329,753

31,319361,073

126,959

488,032

Depreciation andamortization

12,575

7,304

614

20,495438

20,933920

21,854

Amortization of
goodwill

649

26

65

741

–

741

–

741

Loss on impairmentof fixed assets

573

661

–

1,235

66

1,301

4

1,306

Investment inassociates accounted
for using equity
method

889

–

–

889

12,49913,388–13,388

Increase in property,
plant and equipment
and intangible assets

14,202

7,992

836

23,031

544

23,575

1,440

25,016

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 6,190 million yen deducted from segment profit as adjustment are a deduction of 181
million yen in inter-segment eliminations, and a deduction of 6,008 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 126,959 million yen added to segment assets as adjustment are a deduction of 20,438
million yen in inter-segment eliminations, and an addition of 147,398 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 920 million yen added to depreciation and amortization as adjustment are a deduction of
736 million yen in inter-segment eliminations, and an addition of 1,656 million yen in depreciation andamortization related to the administration division that has not been attributed to a reportable segment.
(4)
Included in the 4 million yen added to loss on impairment of fixed assets as adjustment is related tocorporate assets that cannot be allocated to any reportable segment.
(5)
Included in the 1,440 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 profit is adjusted with operating profit in the consolidated statements of operations.

- 17 -

b. Related Information
Prior 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

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

Happinet Corporation

62,096

Business, and Visual and Music Production
Business

Current Fiscal Year (From April 1, 2016 to March 31, 2017)
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

Americas454,630

Europe65,058

Asia
45,115

Total
55,257620,061

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

Americas40,856

Europe
2,358

Asia
3,935

- 18 -

Total
5,035

52,184

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

Net sales

Names of related segments
Network Entertainment Business, and Visual andApple Inc.

68,579Music Production Business
Toys and Hobby Business, Network Entertainment

Google Inc.

62,539Business, and Visual and Music Production
Business

Note: Apple Inc. and Google Inc. are both platform-provision companies. The actual results of sales to thesecompanies are usage fees, etc. for users (ordinary users) of game services provided by the Group.

c. Information Regarding Loss on Impairment of Fixed Assets by Reportable Segment
Prior Fiscal Year (From April 1, 2015 to March 31, 2016)
This information is omitted because the same information has been presented in Segment Information.
Current Fiscal Year (From April 1, 2016 to March 31, 2017)
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, 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

Current Fiscal Year (From April 1, 2016 to March 31, 2017)(¥ million)
Toys and
Hobby
Business

Network
Entertainment
Business

Visual andMusic
Production
Business

Eliminations
and Corporate

Other

Total

Amortized
amount

649

26

65

–

–

741

Unamortizedbalance

165

87

85

–

–

337

- 19 -

e. Information Regarding Gain on Negative Goodwill by Reportable Segment
Prior Fiscal Year (From April 1, 2015 to March 31, 2016)
Not applicable.

Current Fiscal Year (From April 1, 2016 to March 31, 2017)
Not applicable.

(Per-Share Data)
Prior Fiscal Year

Current Fiscal Year

(From April 1, 2015 to March 31, 2016)(From April 1, 2016 to March 31, 2017)

1,441.49 yen

1,584.71 yen

Basic earnings per share

157.43 yen

201.03 yen

Diluted earnings per share

157.39 yen

200.97 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, 2015 to March 31, 2016)(From April 1, 2016 to March 31, 2017)34,58344,159––34,58344,159219,679,282

219,672,077

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

Increase in number of common stock(shares)

56,92563,179[Subscription rights to shares (shares)][56,925][63,179]

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.

–- 20 -–

(Significant Subsequent Events)(Change to reportable segments)
The Company has decided to change its organizational structure in April 2017, in order to further strengthen its
business in Japan and overseas related to collectable products for adults, centered on figures.
Planning, development, production and sales businesses of prizes for amusement facilities and Loto prizes forconvenience stores and so forth currently belong to the Network Entertainment Business. However, the Company has
decided to change their classification to the Toys and Hobby Business following the change of its organizational
structure effective from the fiscal year ending March 31, 2018.
Information regarding the amounts of net sales and profit/loss, assets, liabilities and others by reportable segment forthe current fiscal year, assuming the classification of its reportable segments after the organizational change is as follows.

Current Fiscal Year (From April 1, 2016 to March 31, 2017)(¥ million)
Reportable Segments
Toys and
Hobby
Business

Visual and
Network
Music
Entertainment
Production
Business
Business

Other
Subtotal(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To externalcustomers

208,811

348,889

52,896

610,597

9,464

620,061–

620,061Inter-segment sales
and transfers

9,286

6,696

3,393

19,376

17,33336,710(36,710)–

Total

218,098

355,585

56,290629,974

26,797656,771(36,710)620,061

Segment profit

13,33042,034

13,43668,802702

69,504(6,266)

63,238Segment assets

118,108

167,871

44,031330,01131,319361,330

126,701

488,032

Depreciation andamortization

12,735

7,145

614

20,495438

20,933920

21,854

Amortization of
goodwill

649

26

65

741

–

741

–

741

Loss on impairmentof fixed assets

573

661

–

1,235

66

1,301

4

1,306

Investment inassociates accounted
for using equity
method

889

–

–

889

12,49913,388–13,388

Increase in property,
plant and equipment
and intangible assets

14,303

7,891

836

23,031

544

23,575

1,440

25,016

Others

Notes:

1.
2.

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 6,266 million yen deducted from segment profit as adjustment are a deduction of 257
million yen in inter-segment eliminations, and a deduction of 6,008 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 126,701 million yen added to segment assets as adjustment are a deduction of 20,696
million yen in inter-segment eliminations, and an addition of 147,398 million yen in corporate assets that- 21 -

3.

cannot 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 920 million yen added to depreciation and amortization as adjustment are a deduction of
736 million yen in inter-segment eliminations, and an addition of 1,656 million yen in depreciation andamortization related to the administration division that has not been attributed to a reportable segment.
(4)
Included in the 4 million yen added to loss on impairment of fixed assets as adjustment is related tocorporate assets that cannot be allocated to any reportable segment.
(5)
Included in the 1,440 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 profit is adjusted with operating profit in the consolidated statements of operations.

- 22 -

4. 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
Not applicable.
(3) Responsible Area of Directors (Effective June 19, 2017)
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)- 23 -