Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2022

August 5, 2021

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: https://www.bandainamco.co.jp/)
August 5, 2021

Consolidated Financial Report for the First Quarter of
the Fiscal Year Ending March 31, 2022 (Japanese GAAP)
Representative:
Masaru Kawaguchi, President and Representative Director
Contact:
Yuji Asako, Director, Division General Manager of the Corporate Planning Division
Scheduled filing date of the quarterly security report:
August 10, 2021
Scheduled starting date for dividend payments:–
The Financial Highlights of the Financial Results for the Quarter: Yes
The information session of the Financial Results for the Quarter: Yes (for institutional investors and analysts)* Figures are in millions of yen, rounded down
1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2022
(April 1, 2021 to June 30, 2021)(1) Consolidated Operating Results (For the Three Months Ended June 30, 2021)

First Quarter of the Fiscal YearEnding March 31, 2022
First Quarter of the Fiscal Year
Ended March 31, 2021

Net sales¥ million
178,049%22.8

145,035(8.9)

Profit attributable toowners of parent¥ million%
20,917
58.7(Percentages indicate year-on-year changes.)
Operating profit
Recurring profit¥ million%¥ million%
27,02135.7
28,75440.9
19,915(12.8)

Basic earnings per share

20,412(14.3)

Diluted earnings per share¥First Quarter of the Fiscal Year
95.22
Ending March 31, 2022
First Quarter of the Fiscal Year
13,181(22.1)
60.01
Ended March 31, 2021
(Note) Comprehensive income: 24,541 million yen [49.6%] (FY2022.3 1Q), 16,401 million yen [19.4%] (FY2021.3 1Q)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio¥ million¥ million%
As of June 30, 2021
716,047
515,533
71.9
As of March 31, 2021
732,782
511,433
69.7(Reference) Equity: 515,124 million yen (as of June 30, 2021), 510,515 million yen (as of March 31, 2021)¥––

2. Cash Dividends
End offirst quarterEnd ofsecond quarter¥21.00

Annual cash dividends
End ofFiscalthird quarteryear-end–¥91.00

Total

Fiscal Year Ended March 31, 2021–
¥112.00
Fiscal Year Ending March 31, 2022–
Fiscal Year Ending March 31, 2022
¥24.00–¥24.00¥48.00(Projections)(Note) Revision to the projections of cash dividends for the Fiscal Year Ending March 31, 2022: No
Concerning the projected amounts of the end of second quarter and year-end cash dividends for the fiscal year ending March 31,
2022, the base 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, 2022, will be considered by the Company based on the basic policy on the distribution of
profits.
3. Consolidated Projections for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)(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
380,000
12.7
43,000(6.4)
46,000(2.5)
32,5002.5
147.95September 30, 2021
Full Fiscal Year
750,000
1.2
75,000(11.4)
76,000(13.3)
52,0006.4
236.72(Note) Revision to the projections: Yes
Consolidated projections for the six months ending September 30, 2021 (announced on May 11, 2021) are revised in thisdocument. For details of the revisions to the consolidated projections, please refer to “Notice Regarding Revisions toConsolidated Projections” announced today (August 5, 2021).
* Notes(1) Changes in Significant Subsidiaries during the Period(Changes in Specified Subsidiaries Resulting in the Change in Scope of Consolidation): No(2) Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements: Yes(Note) For more details, please refer to the section of “(3) Notes to Consolidated Financial Statements, (Application of Special
Accounting for Preparing the Quarterly Consolidated Financial Statements)” of “2. Consolidated Financial Statements andSignificant Notes” on page 9 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: Yesb) Changes in accounting policies due to other reasons: Noc) Changes in accounting estimation: Nod) Restatement: No(Note) For more details, please refer to the section of “(3) Notes to Consolidated Financial Statements, (Changes in Accounting
Policies)” of “2. Consolidated Financial Statements and Significant Notes” on page 9 of the attached material.
(4) Number of Issued Shares (Common Stock)a) Total number of issued shares at the end of the period (including treasury stock)
As of June 30, 2021
222,000,000 shares
As of March 31, 2021
222,000,000 sharesb) Number of shares of treasury stock at the end of the period
As of June 30, 2021
2,326,804 shares
As of March 31, 2021
2,326,752 sharesc) Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the First Quarter of the Fiscal Year Ending March 31, 2022
219,673,187 shares
For the First Quarter of the Fiscal Year Ended March 31, 2021
219,663,928 shares* Quarterly Consolidated Financial Reports are not required to be subjected to quarterly reviews conducted by certified public accountants
or an audit firm.
* 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 First Quarter” on page 3 of the attached material for matters pertaining to the earnings projections.
- To Obtain Financial Highlights:
The Financial Highlights will be posted on the Company’s website on August 5, 2021.

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

2. Consolidated Financial Statements and Significant Notes ................................................................ 5(1) Consolidated Balance Sheets.............................................................................................................................................. 5(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ................................... 7(Consolidated Statements of Operations) ........................................................................................................................... 7(Consolidated Statements of Comprehensive Income)....................................................................................................... 8(3) Notes to Consolidated Financial Statements ...................................................................................................................... 9(Notes on Premise of Going Concern) ............................................................................................................................... 9(Notes on Significant Changes in the Amount of Stockholders’ Equity) ........................................................................... 9(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statements) .............................. 9(Changes in Accounting Policies) ...................................................................................................................................... 9(Segment Information) ..................................................................................................................................................... 11- 1 -1. Qualitative Information Regarding Consolidated Results for the First Quarter(1) Explanation Regarding Operating Results
During the first quarter (three months) of the fiscal year ending March 31, 2022, the spread of the novel coronavirus
disease (COVID-19) continued to have a big impact on the economy, society and consumer activity in Japan and overseas.
As part of our response against the spread of COVID-19, the BANDAI NAMCO Group (“the Group”) has been giving thehighest priority to the safety of our various stakeholders, including employees and their families and our customers, while
implementing measures to prevent the spread of infection. We also promoted various measures to adapt to changes inlifestyles and preferences of customers such as by strengthening the sales and marketing that utilize digital strategies. In
addition, we have been taking advantage of the worldview and unique characteristics of IP (Intellectual Property: meaning
characters and other intellectual property) to further strengthen the “IP axis strategy” that aims to maximize IP value throughthe provision of the optimal products and services at the optimal possible times and to expand the global deployment of thisstrategy. The measures also include an initiative to strengthen development in regions and businesses with high growthpotential and an initiative to realize the total capabilities of the Group in regions around the world under the ALL BANDAI
NAMCO concept.
The Group’s operating results for the first quarter (three months) exceeded those of the same period of the previous fiscal
year when each business was significantly impacted by the temporary closure of retail stores and amusement facilities, thecancellation of events, etc. in many regions in Japan and overseas due to the spread of COVID-19. Despite the impact of the
spread of COVID-19, each business has quickly promoted various measures to adapt to changes in lifestyles and preferencesof customers, and the wide-ranging business portfolio of the Group has proven to be effective.
Consequently, the Group’s consolidated results for the first quarter (three months) were net sales of 178,049 million yen(year-on-year increase of 22.8%), operating profit of 27,021 million yen (year-on-year increase of 35.7%), recurring profitof 28,754 million yen (year-on-year increase of 40.9%), and profit attributable to owners of parent of 20,917 million yen(year-on-year increase of 58.7%).
Operating results by segment are as follows.
Effective from the first quarter of the fiscal year ending March 31, 2022, the Group changed the classification of its
reportable segments. Consequently, in the following year-on-year comparisons, the figures for the same period of theprevious fiscal year have been restated into the figures for the classifications after the change.
Digital Business
As for the Digital Business, home video games enjoyed favorable performance with the release of the new title SCARLET
NEXUS for which the animation was developed in conjunction with the game and strong repeat sales of existing titles due toongoing measures targeting users. In addition, in network content, the performance of key titles was stable, but did not reachthe favorable level seen in the same period of the previous fiscal year.
As a result, net sales in the Digital Business were 66,834 million yen (year-on-year decrease of 12.6%), and segment
profit was 11,827 million yen (year-on-year decrease of 39.0%).
Toys and Hobby Business
As for the Toys and Hobby Business, products for the mature fan base such as plastic models of the Mobile Suit Gundam
series and collectible figures performed favorably as a result of sales and marketing that utilize digital strategies andexpansion of the Business overseas. In addition, product sales have recovered, including for prizes, etc. which were affectedby the temporary closure of amusement facilities in the same period of the previous fiscal year. Moreover, in Japan, longestablished IP and new IP toys, as well as confectionery, capsule toys, trading cards for overseas markets and other peripheralproducts were popular.
As a result, net sales in the Toys and Hobby Business were 83,059 million yen (year-on-year increase of 50.1%), andsegment profit was 14,498 million yen (year-on-year increase of 125.3%).
Visual and Music Business
As for the Visual and Music Business, in addition to the sales of IP related visual and music package software, including
the LoveLive! series and The iDOLM@STER series, IP related licensing revenue contributed to performance. Furthermore,
we carried out new initiatives for live events that are suited to changes in the business environment, such as by streaming theevents and utilizing new technologies, and the number of events held increased from the same period of the previous fiscal
year.
As a result, net sales in the Visual and Music Business were 12,012 million yen (year-on-year increase of 121.6%), andsegment profit was 2,362 million yen (year-on-year increase of 732.3%).
- 2 -Creation Business
As for the Creation Business, in addition to production and releases of video works such as the Mobile Suit Gundam
series and the LoveLive! series to generate public attention, revenue from merchandising rights was strong due to increased
popularity of Gundam. On the other hand, GUNDAM FACTORY YOKOHAMA, which disseminates information on IP, was
impacted by the spread of COVID-19.
As a result, net sales in the Creation Business were 7,304 million yen (year-on-year increase of 57.8%), and segment
profit was 828 million yen (year-on-year increase of 1.7%).
Amusement Business
As for the Amusement Business, despite the impact of the spread of COVID-19, there were signs of a recovery and net
sales of existing amusement facilities in Japan were 215.6% compared with the same period of the previous fiscal year. Net
sales of amusement machines have also recovered. For this business, in addition to continuing to improve efficiency, we will
promote initiatives that only BANDAI NAMCO can offer, such as strengthening the use of Group products and services,aiming to strengthen the revenue base.
As a result, net sales in the Amusement Business were 15,221 million yen (year-on-year increase of 130.5%), and segment
loss was 662 million yen (segment loss for the same period of the previous fiscal year was 5,663 million yen).
Other Businesses
Other Businesses consist of companies that conduct businesses such as logistics support and other kinds of administrationand operational support for each of the Group companies. We have been making efforts to manage such operations related
to group support in an efficient manner.
Net sales in the Other Businesses were 6,656 million yen (year-on-year increase of 25.3%), and segment profit was 147
million yen (segment loss for the same period of the previous fiscal year was 2 million yen).
(2) Explanation Regarding Financial Position
At the end of the first quarter of the fiscal year ending March 31, 2022, total assets stood at 716,047 million yen, adecrease of 16,735 million yen from the end of the previous fiscal year. The main factor was a decrease of 26,869 million
yen in cash and time deposits mainly due to cash dividends paid, despite increases of 3,854 million yen in finished goods
and merchandise, and 8,445 million yen in work in process.
Total liabilities amounted to 200,513 million yen, a decrease of 20,835 million yen from the end of the previous fiscal
year. The main factors were decreases of 6,869 million yen in trade payables and 12,645 million yen in other current liabilities
mainly due to a decrease in accounts payable-other.
Total net assets stood at 515,533 million yen, an increase of 4,100 million yen from the end of the previous fiscal year.
The main factors were increases of 1,100 million yen in retained earnings mainly due to the recording of 20,917 million yen
in profit attributable to owners of parent despite cash dividends paid of 19,996 million yen, and 2,520 million yen in valuationdifference on available-for-sale securities, net of tax.
As a result, the equity ratio became 71.9% compared with 69.7% at the end of the previous fiscal year.
(3) Explanation Regarding Consolidated Projections and Other Forward-Looking Statements
Looking ahead, the Group expects uncertainty to continue in countries around the world due to the impact of the spreadof COVID-19 on society, the overall economy, people’s daily lives and consumption. Furthermore, we expect the changes
occurring in the market environment and in user preferences to become more extreme.
Under these circumstances, the Group will continue carrying out initiatives to prevent the spread of COVID-19, giving
the highest priority to the safety of our stakeholders, including employees and their families, and customers. Moreover, as amember of society, we wish to respond to the requests and expectation from society and our customers under our Group’s
mission to offer “Dreams, Fun and Inspiration” to people around the world through products and services. On the business
front, the Group is working to minimize the impact that the spread of COVID-19 is having on society, the overall economy,
people’s daily lives and consumption, and the impact from the change in the market environment and user preferences, bycontinuing to collect information and take flexible countermeasures.
For the fiscal year ending March 31, 2022, the Group will accelerate the integration and cooperation more than before
on a global scale for all businesses worldwide under the ALL BANDAI NAMCO concept to prepare the business foundationand organizational structure for the next Mid-term Plan to start in April 2022 and sustainable growth in the medium to longterm. In addition, the Group will strengthen the creation of new IP and development of existing IP, further expand the IP axis
strategy utilizing the Group’s wide range of businesses and promote business development in global markets.
- 3 -For the consolidated projections for the second quarter (six months) of the fiscal year ending March 31, 2022, theconsolidated projections announced on May 11, 2021 have been revised as stated in the table below in light of the actual
results for the first quarter (three months) of the fiscal year ending March 31, 2022, the current market environment, themarketing plans of the products and services in the second quarter, etc. The consolidated projections for the full fiscal year
are not revised in light of factors that include the continuation of uncertainties and dramatic changes in the market
environment mainly due to the continuing COVID-19 pandemic both in Japan and overseas, and the coming Christmas and
New Year selling season and the planned launches of major titles in home video games in the third quarter (nine months)
and thereafter.
*For your reference, we are experiencing or expect to experience the following impacts on business operations from the
spread of COVID-19.
• Impact on consumption due to factors including the closure of sales outlets• Postponement or cancellation of events and an associated impact on promotion• Impact on the development schedule of products• Impact on the production schedule of the Group’s factories and other cooperating factories• Impact on the development schedule of home video games and network content and on operation systems• Impact from the closure of amusement facilities• Impact on the schedules or releases of visual productions and package launch scheduled
Revisions to consolidated projections for the second quarter (six months) of the fiscal year ending March 31, 2022
(April 1, 2021 to September 30, 2021)

Previous projections (A)(¥ million)
350,000(¥ million)
35,000(¥ million)
35,500

Profitattributable toowners ofparent(¥ million)
25,000

Revised projections (B)380,000

43,00046,00032,500147.95

Change in amount (B-A)

30,0008,000

10,500

7,500

–

8.6

22.9

29.6

30.0

–

337,12245,93047,19331,715144.38Net sales

Change (%)

OperatingprofitRecurringprofitBasicearnings per
share
(¥)
113.81(Reference)
Results for the second quarter (sixmonths) of the previous fiscal year
(ended March 31, 2021)- 4 -2. Consolidated Financial Statements and Significant Notes(1) Consolidated Balance Sheets(¥ million)
Prior Fiscal Year(As of March 31, 2021)

Current 1st Quarter(As of June 30, 2021)

AssetsCurrent assets
Cash and time deposits

204,326

177,456

Trade receivables

91,765–Trade receivables and contract assets–

82,773Finished goods and merchandise

28,99432,849Work in process

73,81682,262

Raw materials and supplies

4,075

4,368

Other current assets

53,87254,877

Allowance for doubtful receivables(1,639)(1,787)

Total current assets

455,210432,800

88,341

90,770Goodwill

17,06916,515

Other intangible assets

15,944

16,140Total intangible assets

33,01432,656

Investment securities

121,208

124,922

Other investments and assets

35,42535,312

Allowance for doubtful receivables

(418)

(415)

Total investments and other assets

156,215

159,819

277,571283,246

732,782

716,047

Fixed assets
Property, plant and equipment
Intangible assets

Investments and other assets

Total fixed assets
Total assets- 5 -(¥ million)
Prior Fiscal Year(As of March 31, 2021)

Current 1st Quarter(As of June 30, 2021)

Liabilities
Current liabilities
Trade payables

82,47475,604

Provision

3,547

550

Other current liabilities

89,89877,253

Total current liabilities

175,920

153,408

20,234

20,198301

301

Long-term liabilities
Long-term borrowings
Provision
Net defined benefit liability

7,212

6,963

Other long-term liabilities

17,67919,640Total long-term liabilities

45,42847,104

221,348

200,513

Common stock

10,00010,000Capital surplus

52,232

52,123Retained earnings

414,487

415,587

Treasury stock(3,905)(3,906)

Total stockholders’ equity

472,814473,804

51,587

54,107

988

618

Revaluation reserve for land, net of tax(4,016)(4,016)

Foreign currency translation adjustments(7,438)(6,115)Remeasurements of defined benefit plans, net of tax(3,419)(3,273)

Total accumulated other comprehensive income

37,701

41,320917

408

511,433

515,533

732,782

716,047

Total liabilities
Net assets
Stockholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities, net oftax
Deferred gains or losses on hedges, net of tax

Non-controlling interests
Total net assets
Total liabilities and net assets- 6 -(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income(Consolidated Statements of Operations)(¥ million)
Prior 1st Quarter(From April 1, 2020
to June 30, 2020)

Current 1st Quarter(From April 1, 2021
to June 30, 2021)

Net sales

145,035

178,049

Cost of sales

86,861

103,278

Gross profit

58,17374,771

Selling, general and administrative expenses

38,25747,749Operating profit

19,91527,021

562

629

–

455

Other non-operating income

351

755

Total non-operating income

913

1,840

Interest expense

37

92

Share of loss of entities accounted for using equity method

93–

Foreign exchange losses

220–

Non-operating income
Dividend income
Share of profit of entities accounted for using equity method

Non-operating expenses

Other non-operating expenses

65

14

Total non-operating expenses

417

107

20,41228,754Gain on sales of fixed assets

18

2,724

Other extraordinary income

198

197

Total extraordinary income

216

2,922

–

946

1,977

445

18

382

Recurring profit
Extraordinary income

Extraordinary loss
Extra retirement payments
Loss on temporary store closures and other related to
COVID-19
Other extraordinary loss
Total extraordinary loss

1,995

1,774

Profit before income taxes

18,63329,902

Income taxes

5,402

8,978

Profit13,231

20,923

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

- 7 -

49

5

13,181

20,917

(Consolidated Statements of Comprehensive Income)(¥ million)
Prior 1st Quarter(From April 1, 2020
to June 30, 2020)
ProfitCurrent 1st Quarter(From April 1, 2021
to June 30, 2021)

13,231

20,923

2,947

2,537

Other comprehensive income
Valuation difference on available-for-sale securities, net oftax
Deferred gains or losses on hedges, net of tax

(67)

(368)

Foreign currency translation adjustments

59

1,322

Remeasurements of defined benefit plans, net of tax

180

146

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

51

(18)

Total other comprehensive income
Comprehensive income

3,170

3,618

16,401

24,541

16,296

24,536105

5Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests- 8 -(3) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.

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

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

(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations effective from the beginning of the first quarter of the fiscal year ending March 31,
2022, and it has recognized revenue at the time the control of promised goods or services is transferred to the customer at
the amount expected to be received upon exchange of those goods or services. As a result of this application, revenue mainly
for network content and home video games with online functions, which was previously recognized when items used in thecontent or video game software was sold, etc., will be recognized by calculating the estimated sales value for undelivered
elements if there were elements that were not delivered to customers and recognizing an amount equivalent to that value as
the revenue over the reasonably estimated period for which performance obligations are expected to be satisfied.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject to thetransitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition.
The cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods
prior to the beginning of the first quarter of the current fiscal year was added to or deducted from the beginning balance ofretained earnings of the first quarter of the current fiscal year, and thus the new accounting policy was applied from such
beginning balance; provided, however, that the new accounting policy was not retrospectively applied to contracts for which
nearly all the revenue amounts had been recognized according to the previous treatment in periods prior to the beginningof the first quarter of the current fiscal year, by applying the method provided for in paragraph 86 of the Accounting Standard
for Revenue Recognition. Furthermore, modifications to contracts carried out prior to the beginning of the first quarter ofthe current fiscal year were accounted for based on the contractual terms existing after all contract modifications were made,by applying the method set forth in item (1) of the supplementary provisions of paragraph 86 of the Accounting Standard
for Revenue Recognition. Consequently, this cumulative effect was added to or deducted from the beginning balance ofretained earnings of the first quarter of the current fiscal year.
As a result of this change, for the first quarter (three months) of the current fiscal year, net sales decreased by 1,412
million yen, cost of sales decreased by 1,398 million yen, and selling, general and administrative expenses increased by
582 million yen. Operating profit, recurring profit and profit before income taxes each decreased by 596 million yen. In
addition, the beginning balance of retained earnings increased by 179 million yen.
- 9 -Due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations, “Trade
receivables” under current assets of the consolidated balance sheets as of the end of the previous fiscal year has been
included in “Trade receivables and contract assets” under current assets from the consolidated balance sheets as of the endof the first quarter of the current fiscal year. In accordance with the transitional treatment provided for in paragraph 89-2 ofthe Accounting Standard for Revenue Recognition, figures for the previous fiscal year have not been restated in accordancewith the new approach to presentation.

(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,2019) and relevant ASBJ regulations effective from the beginning of the first quarter of the fiscal year ending March 31,
2022 and, in accordance with the transitional treatment provided for in paragraph 19 of the Accounting Standard for Fair
Value Measurement and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10,
July 4, 2019), the new accounting policy provided for in the accounting standard and relevant ASBJ regulations will beapplied prospectively. There is no impact on the quarterly consolidated financial statements.

- 10 -

(Segment Information)
I. Prior 1st Quarter (From April 1, 2020 to June 30, 2020)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
DigitalBusiness

Toys and Visual andAmuseCreation
Hobby
Music
ment
Business
Business BusinessBusiness

Subtotal

Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To externalcustomers

75,80754,217

5,024

2,111

6,492

143,653

1,381

145,035–

145,035

Inter-segment sales
and transfers

633

1,127

395

2,517

109

4,783

3,929

8,713

(8,713)–

Total

76,441

55,344

5,419

4,628

6,602

148,437

5,311

153,748(8,713) 145,035

Segment profit (loss)

19,390

6,435

283

814

(5,663)

21,261(2)

21,258(1,342)

Notes: 1.

19,915The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services for each of the Group companies are classified.

2.

Included in the 1,342 million yen deducted from segment profit (loss) as adjustment are an addition of 150 million
yen in inter-segment eliminations, and a deduction of 1,493 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration divisionthat has not been attributed to a reportable segment.

3.

Segment profit (loss) is adjusted with operating profit in the consolidated statements of operations.

2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)In the Creation Business, goodwill increased 3,676 million yen due to the acquisition of additional shares of SOTSU
CO., LTD., a consolidated subsidiary of the Company.
(Material gains on negative goodwill)
Not applicable.

- 11 -

II. Current 1st Quarter (From April 1, 2021 to June 30, 2021)
1. Information regarding the amounts of net sales and profit/loss by reportable segment(¥ million)
Reportable segments
DigitalBusiness

Toys and Visual andAmuseCreation
Hobby
Music
ment
Business
Business BusinessBusiness

Subtotal

Other(Note 1)

Total

Adjustments(Note 2)

Consolidated
Total(Note 3)

Net sales
To externalcustomers

66,00580,871

10,323

4,336

15,042

176,579

1,469

178,049–

178,049

Inter-segment sales
and transfers

829

2,187

1,689

2,967

179

7,853

5,186

13,040(13,040)–

Total

66,834

83,05912,012

7,304

15,221

184,433

6,656

191,090(13,040) 178,049

Segment profit (loss)

11,827

14,498

2,362

828

(662)

28,854147

29,001(1,980)Notes: 1.

27,021The “Other” category is a business segment not included in reportable segments under which operations such as
logistics services for each of the Group companies are classified.

2.

Included in the 1,980 million yen deducted from segment profit (loss) as adjustment are an addition of 40 million
yen in inter-segment eliminations, and a deduction of 2,020 million yen in corporate expenses that cannot beallocated to any reportable segment. The corporate expenses are mainly costs related to the administration divisionthat has not been attributed to a reportable segment.

3.

Segment profit (loss) is adjusted with operating profit in the consolidated statements of operations.

2. Information regarding loss on impairment of fixed assets and goodwill by reportable segment(Material loss on impairment of fixed assets)
Not applicable.
(Material changes in the amount of goodwill)
Not applicable.
(Material gains on negative goodwill)
Not applicable.
3. Information regarding changes to reportable segments, etc.
(Change to reportable segments)
The Group reorganized the structure based on Units comprising operating companies from the first quarter of the
fiscal year ending March 31, 2022, from its previous five Unit structure to a three Unit structure ahead of the start of thenext Mid-term Plan from April 2022.
In conjunction with this organizational restructure, the reportable segments were changed from the Toys and Hobby
Business, Network Entertainment Business, Real Entertainment Business, Visual and Music Production Business, and
IP Creation Business to the Digital Business, Toys and Hobby Business, Visual and Music Business, Creation Business,and Amusement Business.
Segment information of the prior first quarter (from April 1, 2020 to June 30, 2020) is prepared and disclosed basedon the reportable segment classifications after the change.
(Application of Accounting Standard for Revenue Recognition, etc.)
As described in “(Changes in Accounting Policies),” the Company has applied the Accounting Standard for Revenue
Recognition and relevant ASBJ regulations effective from the beginning of the first quarter of the fiscal year ending- 12 -

March 31, 2022, and changed the accounting treatment for revenue recognition. Accordingly, the Company has changed
the method of measuring profit or loss of business segments.
For the first quarter (three months) of the current fiscal year, as a result of this change, and compared with the figuresobtained by the previous method, net sales and segment profit decreased by 1,834 million yen and 638 million yen,respectively, in the Digital Business; net sales and segment profit increased by 582 million yen and 41 million yen,respectively, in the Toys and Hobby Business; net sales increased by 37 million yen in the Visual and Music Business;
net sales decreased by 165 million yen in the Creation Business; and net sales decreased by 32 million yen in the
Amusement Business.

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