CONSOLIDATED SIX-YEAR FINANCIAL SUMMARY
Bandai Namco Holdings Inc. and Consolidated Subsidiaries
For the Fiscal Years Ended March 31

Millions of yen, except per-share data and main financial indicators

2019

2020

2021

2022

2023

2024

Net sales¥732,347¥723,989¥740,903¥889,270¥990,089¥1,050,210

Gross profit

262,555

260,948

282,006

356,265

368,656

370,959

Selling, general and administrative expenses

178,510

182,172

197,352

230,769

252,183

280,277

Operating profit

84,04578,77584,654125,496

116,472

90,682

Recurring profit*1

86,86379,797

87,612

133,608

128,006

104,164

Profit attributable to owners of parent

63,383

57,66548,89492,752

90,345

101,493

Comprehensive income

69,95253,312

90,527

96,299116,064

110,456

Capital expenditures

29,01633,40631,50736,55445,737

49,116

Depreciation and amortization

21,37023,23924,68425,726

28,67138,364

Cash flows from operating activities

79,811

43,13160,483

121,212

95,62588,906

Total assets¥612,955¥619,819¥732,782¥862,650¥926,358¥ 971,838

Total current assets

397,951

383,662455,210577,206

592,637

642,622

Total current liabilities

163,893

142,506

175,920

243,362

247,323

244,119

Total net assets

429,644454,684

511,433

584,233

652,133

699,823¥ 96.13¥ 87.46¥ 74.19¥ 140.70¥ 136.88

145.00132.00112.00212.00206.0060.00

For the Year:

FINANCIAL REPORTAt Year-End:

2

CONSOLIDATED SIX-YEAR FINANCIAL SUMMARY

3

FINANCIAL REVIEW

7

CONSOLIDATED BALANCE SHEETS

9 ONSOLIDATED STATEMENTS OF INCOME ANDCCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

10

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

11

CONSOLIDATED STATEMENTS OF CASH FLOWS

Return on equity (ROE)*2 (%)

15.5

13.1

10.2

16.9

14.6

15.0

12

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Return on assets (ROA)*3 (%)

15.1

12.9

13.0

16.7

14.3

11.0

39

APPENDIX

Selling, general and administrative expenses to
net sales (%)

24.4

25.2

26.6

26.0

25.5

26.7

40

INDEPENDENT AUDITOR'S REPORT

Operating profit margin (%)

11.5

10.9

11.4

14.1

11.8

8.6

Profit attributable to owners of parent margin (%)

8.7

8.0

6.6

10.4

9.1

9.7

Shareholders’ equity ratio (%)

70.0

72.5

69.7

67.7

70.4

72.0

Debt/equity ratio (Times)

0.00

0.01

0.05

0.05

0.03

0.02

Per-Share Data (Yen):
Basic earnings per share*4
Cash dividend

153.85Main Financial Indicators:*1 Recurring profit is a Japanese accounting term denoting income before extraordinary items.
*2 ROE = Profit attributable to owners of parent / Average total shareholders’ equity (= Total net assets – Share acquisition rights – Non-controlling interests)*3 ROA = Recurring profit / Average total assets*4 The Company conducted a share split with a ratio of three shares for every one share of common shares on April 1, 2023.
Basic earnings per share was calculated assuming that the share split was conducted at the beginning of the fiscal year ended March 31, 2019.

1

¥

2

FINANCIAL REVIEWOverview of Performance in the
Fiscal Year Ended March 31, 2024

Net Sales

During the fiscal year ended March 31, 2024, while restrictions on activities(year-on-year increase of 6.1%).

posal was recorded due to changes in the composition of titles with a view

were revitalized, the future of the economic environment around the world

Cost of Sales

and optimal title portfolio, strengthen the development system, and rein-

remained uncertain due to changes in the social situation, rising raw mate-

Cost of sales was ¥679,251 million (year-on-year increase of 9. 3%), andrials and fuel prices, and the impact of foreign exchange rate fluctuations.

the ratio of cost of sales to net sales was 64.7%. As a result, gross profit

In the Digital Business, in addition to valuation losses related to a new

margin was 35.3%.

Toys and Hobby Businessthree-year Mid-term Plan. In the Mid-term Plan, in order to achieve the aims

SG&A Expenses

materials and fuel, the business continued to perform well due to efforts toof the Bandai Namco Group for the medium to long term based on our

Selling, general and administrative (SG&A) expenses were ¥280,277 million

Purpose, “Fun for All into the Future,” we have established a Mid-term Vision(year-on-year increase of 11.1%), and the ratio of SG&A expenses to netof “Connect with Fans” that aims to constantly meet the needs of global IP

sales increased to 26.7%, from 25.5% in the previous fiscal year. Principal

fans, a wide range of business partners, Group employees, and communi-

items included advertising expenses of ¥64,509 million, directors’ remuner-

ties around the world and to foster broad, deep, and multifaceted connec-

ation and employees’ wages of ¥68,979 million, employees’ retirement andtions. As priority strategies, we are promoting our IP axis strategy, personnel

severance benefits of ¥3,057 million, provision for directors’ bonuses ofstrategy, and sustainability. By propelling the priority strategies, we will take

¥1,274 million, and research and development expenses of ¥32,316 million.

lineup. In addition, card products such as the ONE PIECE trading card game,

Property: meaning characters and other intellectual property) to further

Operating Profit

business performance due to the expansion of product lineups, target

evolve the IP axis strategy that aims to maximize IP value through the provi-

Operating profit was ¥90,682 million (year-on-year decrease of 22.1%), andsion of the optimal products and services at the optimal times. We will also

the operating profit margin decreased to 8.6%, from 11.8% in the previous

strengthen the global development of the IP axis strategy and enhance ourfiscal year.

despite a decrease of ¥24,578 million in investment securities.
Total liabilities amounted to ¥272,014 million, a decrease of ¥2,209 million from the end of the previous fiscal year. The main factor was a decreaseof ¥2,830 million in income taxes payable.
Total net assets stood at ¥699,823 million, an increase of ¥47,689 million
from the end of the previous fiscal year. The main factors were increases of

expand product lineups in favorable categories, advance global business¥55,494 million in retained earnings and ¥18,587 million in foreign currency

development, strengthen production operations, and expand touch points

translation adjustment, despite a decrease of ¥17,191 million due to pur-through real events and stores. Specifically, products for the mature fanchase of treasury shares.

base such as model kits of the Gundam series, collectible figures, and char-

As a result, the equity ratio became 72.0% compared with 70.4% at theacter lotteries continued to perform favorably mainly due to the successful

end of the previous fiscal year. The current ratio*1 was 263.2% (comparedoutcomes produced by sales, marketing, and expansion of the productwith 239.6% at the end of the previous fiscal year); the quick ratio*2 was
180.3% (compared with 153.3%); and the interest coverage ratio*3 wascapsule toys, confectionery products, and food products contributed to276.7 times (compared with 279.9 times).
*1 Current ratio = Total current assets / Total current liabilities*2 Quick ratio = (Cash and time deposits + Trade receivables) / Total current liabilities*3 Interest coverage ratio = Cash flows from operating activities / Interest paid

groups, and regions of operation, as well as the strengthening of touchpoints with customers.

Cash Flows

IP Production Businesssense of unity and collective strength under the ALL BANDAI NAMCO con-

As of the end of the fiscal year, cash and cash equivalents (“funds”) remain-

As for the IP Production Business, in video production, we created andOther Income (Loss)
In other income (loss), impairment losses were ¥1,674 million. On the othering on hand increased by ¥34,975 million from the end of the previous fiscal­produced several new products, including TV animations and theatricalyear, to ¥311,264 million. Below is the breakdown of cash flows by activities.

productions. In the Gundam series, Mobile Suit Gundam the Witch fromcore, the Group strengthened initiatives unified under the ALL BANDAI

hand, gain on sales of investment securities, net was ¥45,517 million. Due

NAMCO concept through collaboration across regions and businesses. In

to these and other factors, net other income was ¥55,958 million.

Mercury attracted a new fan base and led to strong sales of the Group’s

mance, as products for the mature fan base (adults), card products, capsule

Profit Attributable to Owners of Parent

Gundam SEED FREEDOM was supported by a wide range of fans andtoys, and other products became popular. In the Digital Business, differenc-

The Group recorded profit attributable to owners of parent of ¥101,493 mil-es in the product mix in home console games affected performance, and inlion (year-on-year increase of 12.3%). The profit attributable to owners ofaddition to valuation losses related to a new title for online games, etc., aparent margin was 9.7%, and basic earnings per share decreased toloss on disposal was recorded due to changes in the composition of titles¥153.85, from ¥136.88 in the previous fiscal year.

as the Gundam series, the LoveLive! series, IDOLiSH7, That Time I Got

Digital Businessevents and Gundam Factory Yokohama, which captured inbound demand,

Cash Flows from Operating Activities

products and services. In addition, the theatrical production Mobile Suit

Group-wide business, the Toys and Hobby Business contributed to perfor-

The amount of funds provided by operating activities totaled ¥88,906 million (year-on-year decrease of 7.0%). As a breakdown of funds used, income

achieved the highest box-office results ever recorded by a Gundam series

taxes paid were ¥44,132 million (compared with ¥49,464 million in the pre-theatrical release. In addition, the performance of activities such as

vious fiscal year). However, overall, there was a net increase in funds due to­licensing businesses and video streaming related to video works, suchprofit before income taxes of ¥146,640 million (compared with ¥126,215
million in the previous fiscal year).

Reincarnated as a Slime, and BLUELOCK, was stable. Furthermore, livewith a view to the next Mid-term Plan.
In addition, in the fourth quarter of the fiscal year ended March 31, 2024,

and deposits and ¥19,182 million in trade receivables and contract assets,

As for the Toys and Hobby Business, while impacted by rising prices for raw

advantage of the worldview and unique characteristics of IP (Intellectual

In the fiscal year ended March 31, 2024, with the IP axis strategy at theous fiscal year. The main factors were increases of ¥41,641 million in cashemphasis on quality.

and the introduction of a new logo, the Bandai Namco Group began a new

cept in order to achieve continuous growth.

¥971,838 million, an increase of ¥45,480 million from the end of the previ-

force the development of titles to meet the expectations of our fans with anwas ¥370,959 million (year-on-year increase of 0.6%), and the gross profit

Purpose, “Fun for All into the Future,” as the ultimate definition of the GroupAt the end of the fiscal year ended March 31, 2024, total assets stood atto the next Mid-term Plan. Moving forward, we will build a well-balanced

due to COVID-19 were increasingly relaxed and socioeconomic activities

Under such circumstances, from April 2022, with the introduction of ourFinancial Position

online game title introduced this fiscal year and other titles, a loss on dis-

On a consolidated basis, the Group’s net sales were ¥1,050,210 million

we recorded a gain on sales of investment securities (other income (loss))

As for the Digital Business, in network content, while major app titles such

resulting from the sale of a portion of our cross-shareholdings.

as the DRAGON BALL series and ONE PIECE continued to show stable perfor-

Furthermore, the Company purchased treasury shares for the purpose ofmance around the world due to ongoing measures for users, a new online

improving capital efficiency through the effective use of assets held andgame title fell far short of the plan. In home console games, new worldwide

implementing a flexible capital policy, including a return to shareholders, intitles such as ARMORED CORE VI FIRES OF RUBICON and TEKKEN 8 were pop-

response to changes in the business environment.

ular. In overall home console games, the difference in the existing title product mix from the previous fiscal year, when repeat sales of ELDEN RING

Cash Flows from Investing Activities

performed well. The overall business was affected by differences in the

The amount of funds provided by investing activities totaled ¥10,136 mil-lineup of packaged products from the previous fiscal year and higher­production costs.

lion (compared with ¥40,878 million used in the previous fiscal year). As a

Amusement Business

intangible assets were ¥34,909 million (compared with ¥33,808 million inbreakdown of funds used, purchases of property, plant and equipment andthe previous fiscal year). However, overall, there was a net increase in funds

As for the Amusement Business, net sales for existing amusement facilities indue to proceeds from sale of investment securities of ¥53,641 million (com-Japan increased to 103.0% year on year. In addition, the development of

pared with ¥2 million in the previous fiscal year).

stores unique to Bandai Namco based on collaboration with the Group’s

made a significant contribution, had an impact on the results.

products and services, such as Bandai Namco Cross Stores and GASHAPON

Cash Flows from Financing Activities

Department Stores, performed well. In arcade games, sales of the new

The amount of funds used in financing activities totaled ¥75,237 million“Mobile Suit Gundam Extreme Vs. 2 Overboost” and update kits for popular(year-on-year increase of 26.4%). The main breakdown of funds used wereseries were strong. In addition, we continued our efforts to improve

dividends paid of ¥45,998 million (compared with ¥47,310 million in theefficiency in consideration of changes in the external environment, such

Results by Segment

Millions of yen

Millions of yen

Net sales

Segment profit

2024

2023

Year on year

2024

2023

Year on year

Digital¥372,667¥385,681¥(13,014)¥ 6,257¥49,339¥(43,081)

Toys and Hobby

509,880

447,491

62,38878,65559,538

19,117

IP Production

82,46881,748719

10,048

10,645(596)

Amusement

119,667

104,602

15,065

6,843

6,038

805

Other

32,35831,313

1,044

988

1,165

(177)

3

previous fiscal year) and purchase of treasury shares of ¥17,240 million

as rising fuel prices.

(compared with ¥4 million in the previous fiscal year).

Other Businesses
Other Businesses consist of companies that conduct businesses such as
logistics support and other kinds of administration and 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.

4

FINANCIAL REVIEW

From April 2022, we have introduced a new logo that expresses the spirit

Basic Policy on the Distribution of Profits

of our Purpose. All companies with “Bandai Namco” in their names will use

The Company ranks the return of profits to shareholders as one of its highest

this logo, and companies with and without “Bandai Namco” in their names

priorities in its management. The Company aims to further strengthen thewill display this new Group logo on all their products and services, in princi-

Group’s competitiveness and, while maintaining a sound financial status, tople. This will enable us to bring together the value of all our products, ser-achieve regular distributions of dividends and improvement in thevices, and labels under one logo, make the Groupʼs sense of unity and its

Company’s corporate value. Specifically, the Company follows a basic policy

total capabilities appeal strongly, and elevate the brand value of the Bandaiof providing a return to shareholders that targets a total return ratio of 50% orNamco Group in the global market.

more based on stable dividend payments of 2% of DOE (dividends on equity).
Under this policy, the Company strives to maintain long-term and stable dividends and be more aware of capital cost.
For the year-end dividend of the fiscal year ended March 31, 2024, based2) Our aims driven by our Purpose “Fun for All into the Future”

on this basic policy, a performance-based dividend of ¥40 was added to a

In accordance with the Purpose, the Bandai Namco Group aims to connectbase dividend of ¥10, for a total of ¥50 per share. Since the Company paid anwith IP fans, a wide range of business partners, Group employees, and com-

interim dividend of ¥10 per share on December 8, 2023, the annual cash

munities around the world. We will strive to connect more broadly with new

dividend was ¥60 per share. Furthermore, in the fourth quarter of the fiscal

fans and more deeply with current fans. In addition, we will aim to foster

year ended March 31, 2024, the Company purchased treasury shares in

multifaceted connections among current fans and new fans as well as com-order to improve capital efficiency through the effective use of assets held

munities of fans. In fostering connections with and among various fans, ourand to implement a flexible capital policy, including a return to sharehold-highest priority will be the quality of the connections. Under the Mid-term

ers, in response to changes in the business environment. The total number

Plan, we will advance a variety of strategies and initiatives focusing onof purchased treasury shares was 6,000,000 shares for a total purchasebroad, deep and multifaceted connections with fans and on the quality ofprice of ¥17,237 million, resulting in a total return ratio of 55.7% whenthose connections.

taking into account dividends and this purchase of treasury shares. The
Company canceled 6,000,000 shares on May 21, 2024, which is the same3) Mid-term Vision

number as the shares purchased.

Connect with Fans

The Company’s annual dividend forecast for the fiscal year ending March
31, 2025 is ¥22 per share, which is the base dividend set in accordance withIn order to achieve the aims of the Bandai Namco Group based on our

the Company’s basic policy on the distribution of profits. The year-end cash

Purpose, “Fun for All into the Future,” under the Mid-term Plan, we will strive

dividend for the fiscal year ending March 31, 2025 will be considered by theCompany based on the basic policy on the distribution of profits.

to constantly meet the needs of global IP fans, a wide range of business part-

Outlook for the Fiscal Year Ending March 31, 2025

broad, deep, and multifaceted connections.

ners, Group employees, and communities around the world and to foster

Looking ahead, the Group expects uncertainty to continue in various

4) Main strategies and investment planregions around the world. We also expect the changes in the environment■ IP axis strategy

surrounding us such as the market as well as customer lifestyles and prefer-

The IP axis strategy, which is the Bandai Namco Group’s strength, is the coreences to become even more intense.

of the Mid-term Plan. We will aim for sustainable growth by implementing

Under these circumstances, adapting to escalating competitiveness in

new initiatives to foster broad, deep and multifaceted connections with fansglobal markets and diversification in lifestyles and preferences of custom-around the world; by accelerating evolution in the IP axis strategy; and byers, in line with our IP axis strategy, the Bandai Namco Group will enhance

working to build businesses as we work together under the ALL BANDAI

sense of unity and collective strength under the ALL BANDAI NAMCO con-

NAMCO concept in regions around the world.

cept, while utilizing the characteristics of each business. From April 2022,•	IP x Fans (connecting with fans through IP): New framework for connect-with the introduction of our Purpose, “Fun for All into the Future,” as theing with fansultimate definition of the Group and the introduction of the new logo, toBased on the IP axis, Bandai Namco will develop an IP Metaverse as a newmaintain continuous growth over medium to long term for the aims under
our Purpose, the three-year Mid-term Plan has started.

framework for connecting with fans. In this IP Metaverse, we are anticipating

1) F ormulation of Bandai Namco’s Purpose, “Fun for All into the Future,” andment surrounding IP, as well as frameworks that leverage Bandai Namco’s

virtual spaces that will enable customers to enjoy a wide range of entertaindistinctive strengths to fuse physical products and venues with digital ele-

introduction of the new logo

ments. We are aiming for open frameworks that provide venues for connections with and among fans and business partners. Through the IP Metaverse,
we will establish communities among Bandai Namco and fans, as well as

From April 2022, we have established our new Purpose, “Fun for All into theamong fans themselves. Through these communities and content, we will

Future,” as the ultimate definition of the Group, conveying the reason forbuild broad, deep multifaceted connections that continue for long periods

our existence, why we conduct our businesses and corporate activities, andof time, and we will focus on the quality of those connections. In this way,

the meaningfulness we derive from working at the Bandai Namco Group.

we will work to maximize IP value over the medium to long term.

What we believe to be particularly important elements in our Purpose are•	IP x Value (enhancing IP value): Accelerating evolution in the IP

the ideas of “Connecting and working together to create things” and we willaxis strategy

achieve “Fun for All into the Future” by Bandai Namco Group and our fans

We will leverage outlets for a wide range of products and services as wellconnecting through dreams, fun and inspiration. Furthermore, the Group

as our strengths in facilitating collaboration among physical and digital

CEO’s desire to promote “Fun for All into the Future” is expressed in theelements, and we will redefine the optimal IP axis strategy for IP fans andphrase, “Creating a world of smiles and happiness together,” and we willfor IP itself. In these ways, we will aim to accelerate evolution in the IP

policy regarding respect for human rights. Going forward, we will fulfill our

axis strategy.

responsibility to respect the human rights of all stakeholders involved in the•	IP x World (connecting the world through IP): Building businesses

Groupʼs business activities by aiming to continue to create a brighter futurewith people around the world through entertainment that awakens ourunder the ALL BANDAI NAMCO concept
To work together and advance our strategies under the ALL BANDAI

humanity and connects us with others, with society, and with the world, as

NAMCO concept in regions worldwide, we have implemented such initia-

represented by Bandai Namcoʼs Purpose “Fun for All into the Future.”

tives as organizational restructuring and base consolidation around theworld. Under this ALL BANDAI NAMCO concept, we work to build busi-5) System for promotion of the Mid-term Plan

nesses in each region.

• Strengthening the governance system of Bandai Namco Holdings• Investment plan for accelerating evolution in the IP axis strategy

The Company transitioned to a company with an audit and supervisory

Over the three years of the Mid-term Plan, we will implement a total of ¥40.0

committee in June 2022, in order to strengthen its corporate governancebillion in strategic investment to accelerate evolution in the IP axis strategy.

system and further enhance corporate value through speedy decision-­

Strategic investment to maximize IP value: ¥25.0 billion

making and business execution.

Investment to develop the IP Metaverse: ¥15.0 billion• Partial changes of the Unit structure
From April 2022, we restructured the IP Production Unit and also integrated■ Personnel strategy: Developing diverse human resources

the Visual and Music Business and the Creation Business into the IP

In accordance with our Purpose, “Fun for All into the Future,” the Group

Production Business. In the IP Production Unit, Bandai Namco Filmworks

strives to be a corporate group of “Same Spirit, Diverse Talents,” where

Inc. will serve as a business management company upon having combined

diverse people with different skills, individual characteristics, personali-

three companies that engage in the visual business within the IP Production

ties, and values can thrive. We will further focus on recruiting and promot-

Unit, namely SUNRISE INC., the visual business of Bandai Namco Arts Inc.,

ing individuals regardless of whether they are new graduates orand Bandai Namco Rights Marketing Inc.

mid-career hires and regardless of gender, age, nationality, race, religion,or sexual orientation, or other personal characteristics. In addition, we6) Numeriacal targets in the Mid-term Plan

will focus on developing various systems and environments that enable a• Fiscal year ending March 31, 2025: Numerical targets

diverse array of people to thrive and work in a way that is both physically

Consolidated net sales:and mentally healthy. Under the Mid-term Plan, we will promote initia-

Consolidated operating profit: ¥125.0 billion

tives such as those that support challenges taken on by employees andROE:¥1,100.0 billion
12% or morethat develop human resources who promote the IP axis strategy on a
The numerical targets (consolidated net sales and consolidated operating

global scale, while at the same time promoting measures for new anddiverse ways to work. In addition, we will actively promote collaboration

profit) for the fiscal year ending March 31, 2025 have been revised as shownand cooperation with people outside the Company.

in the consolidated projections for the fiscal year ending March 31, 2025.

■ Sustainability: Connecting to smiles into the futureneeds of global IP fans, a wide range of business partners, Group employ-

Under the Purpose, “Fun for All into the Future” and “Bandai Namco

ees, and ­communities around the world and to foster broad, deep, multi-Group Sustainability Policy”, the Group has identified five themes that

faceted connections, and each business around the world will further­particularly require focused efforts as material issues. We are promoting

work as one under the ALL BANDAI NAMCO concept on the priority strate-various specific action plans linked to our businesses, such as introduction

gies, c­ onsisting of the IP axis strategy, Personnel strategy, andof electricity derived from renewable energy, initiatives to eliminate petro-

Sustainability, under the Mid-term Plan.

In the future, the Bandai Namco Group aims to constantly meet theleum-derived plastics and the collection and recycling of model kits run-Consolidated Plan for the Fiscal Year Ending March 31, 2025Millions of yen
Net sales
Segment profit
Segments

ners and empty capsules. Furthermore, in order to address the problems
related to the natural environmental problems that society is faced with,
we have set targets for the reduction of carbon dioxide emissions from theEntertainment Unit

use of energy as well as steps to achieve them and strive to advance our• Digital Businessefforts for decarbonization.

¥ 370,000¥ 30,000

530,000

80,000

IP Production Unit

83,00012,000

Amusement Unit

125,000

7,000

Other

33,000500

Adjustments(61,000)(14,500)

Consolidated¥1,080,000¥115,000• Toys and Hobby Business<Bandai Namco Group’s Sustainability Policy>
Based on the IP axis strategy, the Bandai Namco Group will work together
with fans to advance sustainability activities that focus on the social issues
that the Group should address.
<Material Issues that we have identified>- Harmonious coexistence with the natural environment- Provision of appropriate products and services

Forward-Looking Statements- Appropriate utilization and protection of intellectual property

Forecasts for the next fiscal year and other future projections in this report- Establishment of work environments that facilitate mutual respect

are based on information available to the Group at the time they were

- Harmonious coexistence with communities

made and are therefore subject to various risks and uncertainties. Actual
results, therefore, may differ materially from projections due to a variety

In addition, on November 1, 2023, the Bandai Namco Group Human Rights

of factors. Major factors that could influence results include changes in

Policy was established, which clearly stipulates the Bandai Namco Groupʼs

the Company and the Group’s operating environment, market trends,
and exchange rate fluctuations.

spread this message together with Bandai Namco’s Purpose.

5

6

CONSOLIDATED BALANCE SHEETS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries
As of March 31, 2023 and 2024

Note

2023

Millions of yen

Thousands of
U.S. dollars (note 3)

2024

2024

AssetsLiabilities and net assets

Current assets:

Current liabilities:

Cash and deposits

4, 12, 21

Trade receivables and contract assets

6, 12, 22

Allowance for doubtful accounts¥ 280,226¥ 321,868$ 2,125,805

99,007

118,190

780,596(1,086)(1,075)(7,104)Inventories

7

152,223

140,597928,588

Other

462,266

63,042

416,367

592,637

642,622

4,244,254

		 Total current assets

Trade payables

2023

2024

2024

10

¥ 99,244¥ 99,254$ 655,534

26,022

23,192

153,176

22,567

27,728183,135

4,078

3,095

20,444

95,40990,848600,017247,323

244,119

1,612,309

118

—

—

22

Provisions
Other

Thousands of
U.S. dollars (note 3)

Note

Income taxes payable
Contract liabilities

Millions of yen

9		 Total current liabilities

Non-current liabilities:
Provisions

Property, plant and equipment:

Retirement benefit liability

11

3,710

4,925

32,530

Deferred tax liabilities

13

5,457

4,291

28,341Other

9Buildings and structures8

44,72447,640314,642

Amusement facilities and machines859,443

65,103429,979

Land

46,476

46,702

308,451

Right-of-use assets

13,967

18,165

119,976

158,272

175,148

1,156,781

322,885352,759

2,329,832

Net assets:(215,426)(234,123)(1,546,290)

Shareholders’ equity:

107,458

118,636

783,541

Share capital

Other

8

		TotalLess accumulated depreciation
		 Net property, plant and equipment

17,614

18,678123,362

		 Total non-current liabilities

26,901

27,895

184,234

		Total liabilities

274,224

272,014

1,796,544

10,00010,00066,04552,89753,321

352,168

523,923

579,417

3,826,811

18

		 Authorized: 2,500,000,000 shares*

1

		 Issued: 666,000,000 shares*1

Intangible assets:
Goodwill
Other

8

		 Total intangible assets

14,561

11,60876,66821,622

20,568135,843

36,18332,176

212,511

Capital surplus
Retained earnings

16

Treasury shares, at cost: 5,949,648 shares in 2023, and 11,813,756 shares in 2024*(2,102)(19,293)(127,428)

584,718

623,445

4,117,597

62,67149,262

325,359

(656)

1,022

6,752

(4,016)(4,016)(26,529)

11,04929,637

195,743(1,915)

166

1,096

67,132

76,071

502,423

282

306

2,022

		 Total net assets

652,133

699,823

4,622,043

		 Total liabilities and net assets¥926,358¥971,838$6,418,587

1

Accumulated other comprehensive income:15

Valuation difference on available-for-sale securities

Investments and other assets:
Investment securities

5, 12

140,706

116,127

766,976

Deferred tax assets

13

27,572

33,976

224,400

Retirement benefit asset

11

596

6,123

40,4408, 21

21,86022,920151,378

(656)

(744)

(4,915)

		 Total investments and other assets

190,078

178,403

1,178,280

		Total assets¥ 926,358¥ 971,838$ 6,418,587

Other
Allowance for doubtful accounts

18

		 Total shareholders' equity

5

Deferred gains or losses on hedges
Revaluation reserve for land

17

Foreign currency translation adjustment
Remeasurements of defined benefit plans

11		 Total accumulated other comprehensive income
Non-controlling interests*1 T he Company made partial amendments to the Articles of Incorporation in conjunction with a share split on April 1, 2023. As a result, the total number of authorized shares increased by 1,500,000,000 shares to
2,500,000,000 shares. Total number of issued shares at the end of the period and number of shares of treasury shares at the end of the period have been presented assuming that the share split was conducted at
the beginning of the previous fiscal year.

See accompanying Notes to Consolidated Financial Statements.

7

8

CONSOLIDATED STATEMENTS OF INCOME ANDCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMECONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries
Years Ended March 31, 2023 and 2024

Bandai Namco Holdings Inc. and Consolidated Subsidiaries
Years Ended March 31, 2023 and 2024

Year ended March 31, 2023

Consolidated Statements of Income

Net sales
Cost of sales
		Gross profit
Selling, general and administrative expenses
		Operating profit

Note

2023

2024

2024

22
7

¥990,089
621,433
368,656
252,183
116,472¥1,050,210
679,251
370,959
280,277
90,682$6,936,205
4,486,170
2,450,034
1,851,116
598,917

14

Other income (loss):
Interest and dividend income
Interest expense
Foreign exchange gains (losses)
Gain (loss) on valuation of derivatives
Share of profit (loss) of entities accounted for using equity method
Loss on investments in deferred compensation planNon-deductible consumption taxes
Gain on sales of investment securities, net
Loss on valuation of investment securities
Gain (loss) on sale and retirement of non-current assets, net
Impairment losses
Subsidies for employment adjustment and other related to COVID-19
Provision for loss on land remediation
Other

8

Profit before income taxes
Income taxes

13

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

Per-share data:*1
Net assets at March 31
Earnings per share:
Basic
DilutedCash dividends applicable to period

Millions of yen

Thousands of
U.S. dollars (note 3)

25

16

2,639
(332)
5,010
309
2,323
(144)
(2)
0
(553)
(491)
(1,251)
132
—
2,103
9,742

4,320
(310)
6,417
(184)
2,121
(282)
(114)
45,517(751)(394)(1,674)—550
742
55,95828,536(2,047)42,386(1,215)14,010(1,863)(755)
300,626(4,963)(2,606)(11,061)
—
3,632
4,903
369,580

126,215

146,640

968,498

35,87045,125

298,033

90,345

101,515

670,464

0

21

144

¥ 90,345¥ 101,493$ 670,320

Yen

U.S. dollars (note 3)

2024

2024

2023

¥ 987.58¥ 1,069.29$ 7.06136.88—206.00153.85
—
60.00

1.02
—
0.40

See accompanying Notes to Consolidated Financial Statements.
*1 The Company conducted a share split with a ratio of three shares for every one share of common share on April 1, 2023. Net assets per share and basic earnings per share were calculated assuming that the share
split was conducted at the beginning of the previous fiscal year. Cash dividends applicable to period is based on the amount before the aforementioned share split.

Millions of yen
Shareholders’ equity

Share
capitalNote
Balance at beginning of period

Capitalsurplus18¥10,000¥52,574

Accumulated other comprehensive income

Retainedearnings

Treasuryshares16

18¥482,147

Total
shareholders’equity¥(2,140)¥542,581

Dividends of surplus(47,310)(47,310)

Profit attributable to owners of parent

90,34590,345

Change in scope of consolidation(1,258)(1,258)Change in scope of consolidationforeign currency translation adjustment
Purchase of treasury shares
Disposal of treasury shares

Millions of yen

NoteProfitOther comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

15
5

11

Thousands of
U.S. dollars (note 3)

2023

2024

2024

¥ 90,345¥101,515$670,464

17,688(1,554)
9,164
478(13,606)
1,676
18,5902,081(89,865)
11,074
122,779
13,750

(57)

199

1,316

25,719¥116,064

8,941¥110,456

59,054$729,519¥116,063
0¥110,432
23$729,360
158

5, 15

15

15, 1715¥45,037¥   901¥(4,016)¥ 1,886323¥52,897¥523,923

Total net assets
at end of year

¥237

¥584,233

11, 15¥(2,394)¥41,413

90,34544
223

223(1,214)
223

(4)

(4)

42

365

365

0

0

0

¥(2,102)¥584,718

17,634(1,557)

—

8,940

478

25,495025,495¥62,671¥ (656)¥(4,016)¥11,049¥(1,915)¥67,132¥282¥652,133

Year ended March 31, 2024
Millions of yen
Shareholders' equity

Share
capitalNote
Balance at beginning of period

Totalshareholders’equityCapitalsurplusRetainedearnings

16

18¥52,897¥523,923¥ (2,102)

18¥10,000

Accumulated other comprehensive income

Treasuryshares¥584,718

Valuation­ ifference on Deferred gainsdavailable-foror losses
Revaluation
sale securities on hedges reserve for land

Foreignc­ urrency­translation
adjustment

5, 15

15

15, 1715¥ 62,671¥ (656)¥(4,016)¥11,049

Total
accumulated
otherRemeasurements
comprehensiveof definedincomebenefit plans

Noncontrollinginterests

Total net
assets atend of year

11, 15¥(1,915)¥67,132¥282¥652,133

Dividends of surplus(45,998)(45,998)(45,998)

Profit attributable to owners of parent

101,493

101,493

101,493(17,240)(17,240)(17,240)

48

472

472

0

0

0

¥(19,293)¥623,445

Purchase of treasury shares
Disposal of treasury shares

423

Change in treasury shares arising from change in equity in entities accounted
for using equity method
Net changes in items other thanshareholders’ equity
Balance at end of period¥10,000¥53,321¥579,417(13,409)

1,678—

18,587

2,081

8,939

23

8,963

¥ 49,262¥1,022¥(4,016)¥29,637¥   166¥76,071¥306¥699,823

Year ended March 31, 2024
Thousands of U.S. dollars (note 3)
Shareholders' equity

Share
capitalNote
Balance at beginning of period

Capitalsurplus18

Retainedearnings

16$66,045 $349,368 $3,460,293

Accumulated other comprehensive income

Total
shareholders’equityTreasuryshares18$ (13,883)$3,861,824

Valuation­ ifference on Deferred gainsdavailable-foror losses
Revaluation
sale securities on hedges reserve for land

Foreignc­ urrency­translation
adjustment

5, 15

15

15, 1715$413,921$ (4,333)$(26,529)$ 72,978Total­accumulated
otherRemeasurements­comprehensiveof definedincomebenefit plans

Noncontrollinginterests

Total net
assets atend of year

$1,864$4,307,071

11, 15$(12,653)$443,382

Dividends of surplus(303,802)(303,802)

Profit attributable to owners of parent

670,320

670,320

670,320(113,865)(113,865)(113,865)

320

3,119

3,119

1

1

1

$(127,428)$4,117,597

Purchase of treasury shares
Disposal of treasury shares

2,799

Change in treasury shares arising from change in equity in entities accounted
for using equity method

Balance at end of period$66,045 $352,168 $3,826,811(303,802)(88,561)

11,085—

122,765

13,75059,040158

59,198$325,359$ 6,752$(26,529)$195,743$ 1,096$502,423$2,022$4,622,043

See accompanying Notes to Consolidated Financial Statements.

See accompanying Notes to Consolidated Financial Statements.

9

Noncontrollinginterests(47,310)

Net changes in items other thanshareholders’ equity¥10,000

Total
accumulated
otherRemeasurements
comprehensiveof definedincomebenefit plans(4)

Change in treasury shares arising from change in equity in entities accounted
for using equity method

Balance at end of period

Foreignc­ urrency­translation
adjustment—

Net changes in items other thanshareholders’ equity

Consolidated Statements of Comprehensive Income

Valuation­ ifference on Deferred gainsdavailable-foror losses
Revaluation
sale securities on hedges reserve for land

10

CONSOLIDATED STATEMENTS OF CASH FLOWSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Bandai Namco Holdings Inc. and Consolidated Subsidiaries
Years Ended March 31, 2023 and 2024

Bandai Namco Holdings Inc. and Consolidated Subsidiaries

Note

Cash flows from operating activities:
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in other provisions
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity method
Loss (gain) on valuation of derivatives
Loss (gain) on sale and retirement of non-current assets, net
Loss on retirement of amusement facilities and machines
Loss (gain) on sales of investment securities, net
Loss on valuation of investment securities
Loss on investments in deferred compensation plan
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Acquisition of amusement facilities and machines
Increase (decrease) in trade payables
Increase (decrease) in contract liabilities
Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
Other
		Subtotal
Interest and dividends received
Interest paid
Income taxes refund (paid)
Proceeds from compensation
		 Net cash provided by (used in) operating activities
Cash flows from investing activities:
Net decrease (increase) in time deposits
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Purchase of shares of subsidiaries resulting in change in scope of consolidation
	Payments for sale of shares of subsidiaries resulting in change in scopeof consolidation
Other
		 Net cash provided by (used in) investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from disposal of treasury shares
Proceeds from share issuance to non-controlling shareholders
Dividends paid
Other
		 Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

8

11

6
7
10

2023

¥126,215
28,671
1,251
2,431(1,169)191
138(2,639)332(21)(2,323)
(309)
491
228
(0)
553
144
28,484(26,107)(5,180)(1,595)(894)(1,769)(2,013)(2,258)142,852
2,579(341)(49,464)—
95,625

Millions of yen

Thousands of
U.S. dollars (note 3)

2024

2024

¥146,640
38,364
1,674
2,676
(86)
(1,131)
230(4,320)310
637(2,121)
184
394
106(45,517)751
282(15,360)
15,369(8,537)(1,880)4,361(1,911)
1,320(3,873)
128,5624,290(321)(44,132)508
88,906$ 968,498
253,382
11,061
17,674(570)(7,472)
1,524(28,536)
2,047
4,207
(14,010)
1,215
2,606
701
(300,626)
4,963
1,863
(101,446)
101,510(56,386)(12,420)
28,808(12,627)
8,718(25,585)
849,104
28,334(2,122)(291,479)
3,356
587,1934(2,386)(25,376)99(8,431)
(513)
2
(551)
(2,019)(5,975)(24,699)
86(10,210)(716)
53,641(1,797)—(39,465)(163,128)
571(67,437)(4,732)354,278(11,871)
—

4

(114)

—

—

(1,587)(40,878)(191)
10,136(1,267)
66,946

4

(179)
180
(10,382)(4)
0
9(47,310)(1,837)(59,524)
3,174(1,602)
277,891¥276,288

157—(10,206)(17,240)0—(45,998)(1,949)(75,237)
11,17034,975276,288¥311,264

1,038—(67,409)(113,865)
1—(303,802)(12,876)(496,914)
73,774230,999
1,824,772$2,055,771

1 Basis of Presentation
the Financial Instruments and Exchange Act.

Bandai Namco Holdings Inc. (“the Company”) and its consolidated­subsidiaries have prepared their financial statements in accordanceSome supplementary information included in the statutory Japanese-with the provisions set forth in the Japanese Financial Instruments andlanguage consolidated financial statements that is not required for fair

Exchange Act and its related accounting regulations, and in conformity

presentation is not presented in the accompanying consolidated financial

with accounting principles generally accepted in Japan (Japanese GAAP),

statements.
In preparing the accompanying consolidated financial statements, certain

which are different in certain respects as to application and disclosure

reclassifications have been made to the consolidated financial statements

requirements of International Financial Reporting Standards (IFRS).

issued in Japan in order to present them in a form that is more useful to

The accounts of foreign subsidiaries are based on their accounting records

readers outside Japan.

maintained principally in conformity with IFRS or accounting principles

Certain reclassifications have been made to the prior year’s consolidated

generally accepted in the United States (US GAAP).

financial statements to conform to the presentation used for the fiscal year

The accompanying consolidated financial statements have been prepared

ended March 31, 2024.

and translated into English from the consolidated financial statements of the

Figures in this report have been rounded down.

Company prepared in accordance with Japanese GAAP and filed with theappropriate Local Finance Bureau of the Ministry of Finance as required by

2 Summary of Significant Accounting Policies(a) Principles of Consolidation(d) Accounting Standards for Significant Income and Expense

The accompanying consolidated financial statements include the accounts of(1) Revenue Recognition:

the Company and its significant subsidiaries. Consolidation of the remaining

The content of performance obligations and normal timing of revenue

subsidiaries would have had no material effect on the accompanying consoli-­recognition for major businesses are as follows:

dated financial statements. Investments in significant affiliates are accounted

a. Digital Businessfor using the equity method.

In the Digital Business, the Company mainly conducts the distribution of­network content and sales of home console games.

Investments in unconsolidated subsidiaries and certain affiliates otherthan those accounted for using the equity method are stated at cost. If the

For the distribution of network content (smartphone-based applications,

equity method had been applied to the investments in these companies,etc.), in many cases, games are provided for free to customers, while items,

there would have been no material effect on the accompanying consolidated

etc., used in the game are provided at charge. The Company deems thefinancial statements.

­performance obligation to be satisfied when the customer uses said items,
etc., and estimates the customer’s usage period, recognizing revenue overAll significant intercompany accounts and transactions have been­eliminated in consolidation.

such usage period.

(b) Cash and Cash Equivalents

obligation to be satisfied and recognizes revenue at the point in time when

In reporting cash flows, the Company considers cash on hand, demand

the product is transferred to the customer. However, if there are elements notdeposits, and all highly liquid investments with original maturities of three

yet delivered to the customer, such as additional free downloadable content,

months or less to be cash and cash equivalents.

the Company calculates the estimated sale value by referencing the selling

For sales of home console games, the Company deems the performance

price of similar paid downloadable content and recognizes revenue over thecourse of the customer’s average game-playing period.

(c) Foreign Currency Translation

Licensing of home video games under license agreements is a grant of

Foreign currency transactions are translated into yen at rates in effectat the dates they are transacted, and the gains or losses arising from theusage rights, and the Company deems the performance obligation to besettlement of the related receivables or payables are included in “Foreign­satisfied and recognizes the minimum guarantee as revenue at the point

exchange gains (losses)” in the consolidated statements of income.

in time when licensing starts. Royalties based on net sales are determined

Receivables and payables denominated in foreign currencies at thebased on the sales, etc., of the contract partner, and revenue is recognized at­balance sheet date are translated at the rates in effect as of the balance

the point in time when the performance obligation is deemed to be satisfied

sheet date and the unrealized gains or losses are included in “Foreign

while taking into consideration the time when the royalty is accrued.

exchange gains (losses)” in the consolidated statements of income.

b. Toys and Hobby BusinessIn the Toys and Hobby Business, the Company mainly conducts sales of toys,

The assets and liabilities of foreign consolidated subsidiaries and­affiliates are translated into yen at the rates of exchange in effect at

capsule toys, cards, confectionery and foods, apparel, sundries, model kits,

the balance sheet date. Revenue and expenses of foreign consolidated

prizes, stationery, and other products.

subsidiaries and affiliates are translated into yen at the average rates of

For such sales of goods and products, the Company deems theexchange during the fiscal year. Gains and losses resulting from the trans-­performance obligation to be satisfied and recognizes revenue at thelation of foreign currency financial statements are generally excluded

point in time when the good or product is transferred to the customer.

from the consolidated statements of income and are included in “Foreign

c. IP Production Businesscurrency translation adjustment” in “Net assets” in the consolidated

In the IP Production Business, the Company mainly conducts the produc-­balance sheets.

tion and management of visual and music content such as animations
and the management and administration of copyrights and other rights.
For contracted animation production, the Company deems the­performance obligation to be satisfied and recognizes revenue at

See accompanying Notes to Consolidated Financial Statements.

the point in time when the product is delivered to the client.

11

12

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries

associations (investments that are deemed to be securities under the(j) Intangible Assets (Exclusive of Leased Assets and Right-of-Use Assets)(m) Retirement and Severance Benefits

deems the performance obligation to be satisfied and recognizes revenue at

Financial Instruments and Exchange Act, Article 2, Clause 2) are carried at

Amortization of intangible assets is computed by the straight-line method

The Company and certain domestic consolidated subsidiaries havethe point in time when the product is transferred to the customer.

the net amount proportionate to the Company’s ownership interests,

based on estimated useful lives. Software for internal use is amortized overestablished a defined benefit corporate pension plan, a defined benefit

based on the most recent financial statements available in accordance

1–5 years.

retirement lump-sum benefit system plan, and a defined contribution

Regarding the sales of visual and music content and the like, the Company

Licensing of animation and visual and music content under licensewith the financial reporting date specified in the partnership agreement.

agreements is a grant of usage rights, and the Company deems the­performance obligation to be satisfied and recognizes the minimum

Goodwill is amortized using the straight-line method over a period within

pension plan. Retirement benefits trusts have been established for certain

10 years. The Company reasonably estimates the period for which the bene-

defined benefit corporate pension plans. Other domestic consolidated

fits associated with goodwill are expected to be experienced.

subsidiaries (excluding domestic consolidated subsidiaries with no­guarantee as revenue at the point in time when licensing starts. Royalties(f) Allowance for Doubtful Receivables

based on net sales are determined based on the sales, etc., of the contract

The allowance for doubtful receivables is provided for possible losses onpartner, and revenue is recognized at the point in time when the performance

unrecoverable receivables. For ordinary receivables, the amount of theobligation is deemed to be satisfied while taking into consideration theallowance is based on the historical rate of loss. For receivables from(k) Leased Assets and Right-of-Use Assets

Certain consolidated subsidiaries have established a defined contribution

time when the royalty is accrued.

debtors at risk of bankruptcy and receivables from debtors in bankruptcy or

Depreciation of leased assets is computed by the straight-line method overpension plan and a defined contribution smaller corporate retirementd. Amusement Businessunder reorganization, the amount of the allowance is based on individually

the period of the lease with a residual value of zero.

allowance mutual aid system. Certain foreign consolidated subsidiaries

In the Amusement Business, the Company mainly conducts the sales

estimated unrecoverable amounts.

of amusement machines and operation of amusement facilities.

­retirement benefit system) have established a defined benefit corporate
pension plan and a defined benefit retirement lump-sum benefit system.

Depreciation of right-of-use assets is computed by the straight-line

have established defined benefit pension plans, retirement lump-sum

method over the shorter of the useful life or the lease period of assets.

benefit systems, and defined contribution pension plans. Moreover,­additional benefits may be paid at retirement.

(g) Inventories

For sales of amusement machines, the Company deems the performance

In calculating the retirement benefit obligations, the benefit formula

obligation to be satisfied and recognizes revenue at the point in time when

Domestic Consolidated Subsidiaries:(l) Derivatives and Hedging Activities

the product is transferred to the customer.

Generally, inventories are stated using the cost method based on the average

The Company and its consolidated subsidiaries use derivative instruments,

basis is principally used to attribute expected benefit payments to themethod. The value stated in the consolidated balance sheets is calculated bysuch as forward foreign exchange contracts, to reduce market risks arising

period extending up to the end of the current fiscal year. Prior service

writing down the carrying amount based on declining profitability.

from fluctuations in foreign exchange rates and interest rates. The Company

costs are amortized from the time they are incurred by the straight-line

and its consolidated subsidiaries use these derivative instruments solely

method for a certain number of years (10 years) within employees’ average

In addition, the Company also provides services such as sharing theplaying fee with customers (facility operators) by using a network to connect the amusement machines with a large number of other facilities
where amusement machines are installed. Since the performance obliga-

Foreign Consolidated Subsidiaries:

for the purpose of reducing the risks resulting from such fluctuations

remaining years of service. Actuarial gains or losses are amortized fromtion for these services is satisfied when the user plays, revenue is recog-

Generally, inventories are stated using the lower cost or market method

to which they are exposed in the course of their ordinary businessthe consolidated fiscal year following the year in which the gain or loss isnized at that time.

based on the average method.

­activities. Accordingly, the Company and its consolidated subsidiaries

incurred by the straight-line method for a certain number of years (7–14

do not use derivative instruments or other financial instruments foryears) not longer than employees’ average remaining years of service. The­speculative purposes.

Company and certain consolidated subsidiaries use a simplified method

Revenue from the operation of amusement facilities mainly arises fromcharges to users to play with amusement machines, and the Company

Both domestic and foreign consolidated subsidiaries state game software

deems the performance obligation to be satisfied and recognizes revenue

as work in process by the specific-cost method. The value stated in the

The Company and its consolidated subsidiaries’ counterparties forin calculating net defined benefit asset, net defined benefit liability, andat the point in time when the user starts playing.

­consolidated balance sheets is calculated by writing down the carrying

derivative instruments are all highly creditworthy financial institutions

periodic pension cost under which retirement benefit obligations areamount based on declining profitability.

and, therefore, the Company believes that it is exposed to almost no

principally based on accrued benefits at the end of the year.

counterparty risk. Derivative transactions are conducted in accordance

Regarding the domestic sales of goods and products in each business,
the Company applies the alternative treatment prescribed in paragraph 98(h) Income Taxes

with internal rules that specify transaction authority and transaction(n) Appropriation of Retained Earningsof the “Implementation Guidance on Accounting Standard for Revenue

Current income taxes are accounted for based on income. Deferred income

amount limits.

Retained earnings with respect to a given financial period are appropriated

Recognition,” and if the period from the time of shipment to the time whentaxes are accounted for under the asset and liability method. Deferred tax

control of such goods or products is transferred to the customer is a normal

assets and liabilities are recognized for future tax consequences attributable

derivative instruments that meet the criteria for hedge accounting,to the close of such financial period. The accounts for that period do not,period of time, the Company recognizes revenue at the time of shipment.

to differences between the financial statement carrying amounts of existing­recognition of unrealized gains or losses is deferred. In cases where

therefore, reflect such appropriations.

assets and liabilities and their respective tax bases and operating loss and­forward foreign exchange contracts meet certain hedging criteria, the(2) Accounting for Video Game Content Production Costs:

tax credit carryforwards. Deferred tax assets and liabilities are measured

hedged receivables and payables are translated at the corresponding(o) Per-Share Data

A distinctive characteristic of video game content is the process throughusing enacted tax rates expected to apply to taxable income in the years in­forward foreign exchange contract rate (the “allocation method”).

In computing basic earnings per share, the average number of shares

which the software is highly combined with the content that cannot be

which those temporary differences are expected to be recovered or settled.

separated into identifiable components.

The effect on deferred tax assets and liabilities of a change in the tax rate isof hedging transactions from the start of the transaction to the point atassumes the dilution that could occur if securities or other contracts to­recognized in income in the period that includes the enactment date.

which effectiveness is assessed by comparing the cumulative changes inissue common share were exercised or converted into common share,

the fair value or the cumulative changes in the cash flows of the hedged

or resulted in issuance of common share.

The content is considered to be an important component of each video
game title, which includes the game content and visual/music data.

(i) P roperty, Plant and Equipment (Exclusive of Leased Assets andOnce management makes a decision to go forward in distributing a

Right-of-Use Assets)

title, the Company records the video game content development costsby resolution of the shareholders at a general meeting to be held subsequent

As a general rule, derivative instruments are stated at fair value. For­outstanding during each year has been used. Diluted earnings per share

The Company and its consolidated subsidiaries assess the effectivenessCash dividends per common share are computed based on dividends

item with the cumulative changes in the fair value or the cumulative

declared with respect to income for the fiscal year.

changes in the cash flows of the hedging instrument. In the event that

The Company and Its Domestic Consolidated Subsidiaries:

critical terms are the same for the hedging instrument and the hedged

The capitalized production costs are amortized to cost of sales based

Depreciation of property, plant and equipment is principally computed

assets, liabilities, or scheduled transaction, it is assumed that the hedge(p) Significant Accounting Estimateson projected sales revenue for home console games and are amortized toby the declining-balance method based on estimated useful lives. The

is 100% effective, so the assessment of effectiveness is not performed.

Valuation of Work in Process for Home Console Games before Launch atcost of sales over the minimum operating period for smartphone-based

straight-line method is used for buildings (except for building fixtures)

In the event that a hedge becomes ineffective, hedge accounting is no

applications.

acquired since April 1, 1998, and for part of the amusement facilities

longer applied and the recognition of the gains or losses on the hedge

and machines, etc. The estimated useful lives for Buildings and structures­transaction is no longer deferred.

as work in process.

(e) Marketable Securities and Investment Securities

and Amusement facilities and machines are 2–50 years and 3–15 years,

Available-for-sale securities other than shares, etc., that do not have arespectively.

Major Domestic Development Bases(1) Amount recorded in the consolidated financial statements

Work inprocess

fair value are principally carried at fair value. The difference, net of tax,
between the acquisition cost and the carrying amount of available-for-Foreign Consolidated Subsidiaries:

sale securities with market quotations is recognized in “Valuation differ-

Depreciation of property, plant and equipment is principally computed

ence on available-for-sale securities” in “Net assets” in the consolidated

by the straight-line method based on estimated useful lives. The estimatedbalance sheets until realized. Available-for-sale shares, etc., that do not

useful lives for Buildings and structures and Amusement facilities andhave a fair value are principally carried at cost. The cost of available-for-machines are 3–50 years and 4–25 years, respectively.

sale securities sold is principally computed based on the moving-averagemethod. Investments in investment limited partnerships or similar

13

14

Millions of yen

Thousands of
U.S. dollars

2023

2024

2024

¥60,956¥57,101$377,130

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries(1) Overview(2) Information concerning the contents of significant accounting estimates

Transfer of the JICPA’s practical guidelines on tax effect accounting to thefor the identified items

4 Cash and Cash Equivalents

The value of work in process for home video games before launch in the

ASBJ was completed with the issuance of standards and guidance including

Reconciliations of cash and cash equivalents as of March 31, 2023 and 2024 between the amounts shown in the consolidated balance sheets and the consolidated

Digital Business stated on the consolidated balance sheets is stated at an

ASBJ Statement No. 28, “Partial Amendments to Accounting Standard for Tax

statements of cash flows are as follows:amount calculated by writing down the carrying amount based on the

Effect Accounting” (hereinafter collectively referred to as “ASBJ Statement No.

declining profitability and is evaluated to be the lower of the net realizable

28, etc.”) in February 2018. During their deliberations, it was determined thatvalue or the book value of work in process.

the following two issues would be further discussed subsequent to the issu-

Thousands of
U.S. dollars

Millions of yen

2023

2024

2024

¥280,226¥321,868$2,125,805(70,788)

ance of ASBJ Statement No. 28, etc. The above standards and guidance wereCash and deposits

declined when there has been no change in market demand from the initial

issued as a result of the discussions on the two issues below:

Time deposits with maturities in excess of three months(4,036)(10,718)

forecast and the production has been proceeding as planned.

• Categories in which income tax expense should be recorded (taxes on other

Deposits paid (“Other current assets” in Current assets)

98

114

755

¥276,288¥311,264$2,055,771

The Group considers that the profitability of work in process has notcomprehensive income)On the other hand, the Group individually assesses the work in process

Cash and cash equivalents

whose profitability may have declined. In particular, for products that are near

• Tax effects associated with sales of shares of subsidiaries, etc. (i.e., shares oflaunch, for which market demand is more predictable, the Group individuallysubsidiaries or affiliates) when the group taxation regime is applied

The breakdown of major assets and liabilities of companies that became newly consolidated subsidiaries due to the acquisition of shares is as follows:(2) Effective date

The information has been omitted because the amounts are insignificant.

assesses the work in process considering the sales results of similar game
titles and sales potential based on future demand forecasts.

The standards and guidance will be effective from the beginning of the fiscal

Estimates involving such determinations and assumptions may be

year ending March 31, 2025.

affected by future demand trends and other factors; if such change in­circumstances occurs, these estimates may possibly have a significant
effect on the amount of work in process in the consolidated financial(3) Impact of application of the standards and guidance­statements in the following consolidated fiscal year and onwards.

There is no impact on the consolidated financial statements.

Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024
None
The breakdown of major assets and liabilities of subsidiaries that are excluded from the scope of consolidation due to the sales of shares is as follows:
Fiscal year ended March 31, 2023
The information has been omitted because the amounts are insignificant.

(q) New Accounting Standards Not Yet Applied
Following accounting standards and guidance are those issued but not yet

Fiscal year ended March 31, 2024

adopted.

None• “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27,
October 28, 2022, ASBJ)• “Accounting Standard for Presentation of Comprehensive Income” (ASBJ

5 Marketable Securities and Investment Securities

Statement No. 25, October 28, 2022, ASBJ)• “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ

Marketable securities and investment securities as of March 31, 2023 and 2024 are summarized as follows:

Guidance No. 28, October 28, 2022, ASBJ)

Thousands of
U.S. dollars

Millions of yen

2023

2024

2024

¥118,038¥ 89,999$594,411

Securities without market quotations

6,028

5,999

39,627the fiscal year ended March 31, 2024 have been translated into U.S. dollars at the rate of ¥151.41 = U.S.$1, the approximate exchange rate on the Tokyo Foreign

Investments in non-consolidated subsidiaries and affiliated companies

16,344

19,566129,225

Exchange Market on March 31, 2024.

Convertible bonds with subscription rights to shares

—

73

482

Contributions to investment partnerships

294

488

3,229

¥140,706¥116,127$766,976

3 Financial Statement Translation

Securities with market quotations

The consolidated financial statements are expressed in yen. However, solely for the convenience of the reader, the consolidated financial statements as of and forThis translation should not be construed as an indication that the amounts shown could be converted into U.S. dollars at such rate.

Total

The original cost, carrying amount (fair value), and gross unrealized gain (loss) for securities with market quotations as of March 31, 2023 and 2024 are summarized as follows:
Millions of yen

2023
Original cost

Gross unrealized
gain

Gross unrealized
loss

Carrying amount(fair value)¥29,533¥88,872¥(454)¥117,952

86

—

—

86

¥29,620¥88,872¥(454)¥118,038

Securities with market quotations:
Equity securities
Other		TotalMillions of yen

2024
Original cost

Gross unrealized
gain

Gross unrealized
loss

Carrying amount(fair value)¥21,140¥68,806—¥89,946

52

0

—

52

¥21,193¥68,806—¥89,999

Securities with market quotations:
Equity securities
Other		Total15

16

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries

Thousands of U.S. dollars

2024
Original cost

Gross unrealized
gain

Gross unrealized
loss

Carrying amount(fair value)$139,625$454,436—$594,061

345

4

—

350

$139,971$454,440—$594,411

Securities with market quotations:
Equity securities
Other		TotalThe following is a summary of the carrying amount of securities without market quotations as of March 31, 2023 and 2024:
Millions of yen

Thousands of
U.S. dollars

2023

2024

2024

Carrying amount

Carrying amount

Carrying amount

Securities without market quotations:
Unlisted securities
		Total¥6,028¥5,999$39,627¥6,028¥5,999$39,627

8 Impairment Losses
For the Company and its consolidated subsidiaries, evaluation of impairment is performed by grouping assets according to management accounting classifications
based on Units, excluding significant idle assets, assets scheduled for disposal, and assets for lease. In the amusement facility operations of the Amusement
Business, the individual facility is the smallest unit used in management accounting and is the basic unit for evaluating impairment.
The book value of the following assets was reduced to the recoverable amount and the amount of reduction was recorded in “Other income (loss)” as impairment losses.
Millions of yen
Business

Location

Note Usage

Type

Toys and Hobby

Inukami-gun, Shiga, and others

1 Assets for business use

Buildings and structures

IP Production
Amusement

Millions of yen

2023

2024

2024

Equity securities¥2¥53,641$354,278

Proceeds from the sales of securities¥2¥53,641$354,278

Gross realized gains from the sales of securities

045,517300,626

Gross realized losses from the sales of securities———
DigitalMillions of yen

Thousands of
U.S. dollars

2023

2024

2024

Notes receivable¥ 4,726¥ 5,010$ 33,091

Accounts receivable–trade94,281

113,110747,047

—

69

457

¥99,007¥118,190$780,596

Contract assets
Total

Toys and Hobby
IP Production

Amusement

Millions of yen

Thousands of
U.S. dollars

2023

2024

2024

Merchandise and finished goods¥ 41,324¥ 40,170$265,310

Work in process

104,835

92,665612,013

Raw materials and supplies
Total

6,063

7,761

51,263¥152,223¥140,597$928,588

The value of inventories stated in the consolidated balance sheets is calculated by writing down the carrying amount based on declining profitability, and thevaluation loss on inventories included in cost of sales is as follows:
Millions of yen

Valuation loss on inventories

17

2023

2024

2024

¥25,476$168,262

2024

$

—

Other property, plant and equipment

15

—

—

Other intangible assets

7

—

—

Other property, plant and equipment

3

—

—

Shanghai, China, and others

Amusement facilities and machines

242

—

—

Assets for business use

Other property, plant and equipment

1

—

—

Other intangible assets

195

—

—

Other investments and assets

128

—

—

Fukuoka-shi, Fukuoka, and others

Amusement operation
5
facilities

Amusement facilities and machines

489

—

—

Toshima-ku, Tokyo, and others

3

Amusement operation
facilities

Amusement facilities and machines

25

—

—

Shanghai, China, and others

4

Amusement operation
facilities

Amusement facilities and machines

47

—

—

Other property, plant and equipment

8

—

—

Other investments and assets

50

—

—

Buildings and structures

—

138

917

Other property, plant and equipment

—

266

1,763

Other intangible assets

—

595

3,930
2,943

Minato-ku, Tokyo, and others

1 Assets for business use

Langen, Germany

2 Other

Goodwill—

445

Taito-ku, Tokyo, and others

1 Assets for business use

Other property, plant and equipment

—

8

58

Minato-ku, Tokyo

3 Assets scheduled for disposal Other property, plant and equipment

—

17

112

Mitaka-shi, Tokyo

1 Assets for business use

Buildings and structures

—

0

3

Other property, plant and equipment

—

9

62

Nagoya-shi, Aichi, and others

Other intangible assets

—

0

1

Amusement operation
1
facilities

Amusement facilities and machines

—

100

662

Assets for business use

Other property, plant and equipment

—

1

7

Other intangible assets

—

34

228

Other investments and assets

—

9

65

Amusement facilities and machines

—

12

85

Assets scheduled for disposal Other property, plant and equipment

—

21

145

—

11

75

¥1,251¥1,674$11,061

Toshima-ku, Tokyo, and others

Amusement operation
3
facilities

Kurashiki-shi, Okayama,
and others

Amusement operation
4
facilities

Total

Amusement facilities and machines*1. T he Group recorded impairment losses as the book value of the fixed assets is unlikely to be recoverable due to declines in the profitability of business. The recoverable amount is calculated by deeming thevalue in use as zero.
*2. T he Group recorded impairment losses as the book value of the fixed assets is unlikely to be recoverable due to declines in the profitability of business. The recoverable amount is calculated by value in use andcalculated by discounting the future cash flows at 8.5% in the fiscal year ended March 31, 2024.
*3. T he Group recorded impairment losses of assets, which are not expected to be used in the future. The recoverable amount is calculated by deeming the value in use as zero.
*4. T he Group recorded impairment losses as it judged that the recoverable amounts of the fixed assets significantly decreased due to its decision to close locations. The recoverable amount is calculated by deeming the value in use as zero.
*5. T he Group recorded impairment losses as the book value of the fixed assets is unlikely to be recoverable due to declines in the profitability of business. The recoverable amount is calculated based on the net
realizable value which was evaluated based on reasonably estimated selling prices.

Thousands of
U.S. dollars¥11,140—

Amusement operation
1
facilities

7 Inventories
Inventories as of March 31, 2023 and 2024 are summarized as follows:

2024

¥

1 Assets for business use

6 Trade Receivables and Contract Assets
Trade receivables and contract assets as of March 31, 2023 and 2024 are summarized as follows:36

Mitaka-shi, Tokyo

Proceeds and gross realized gains and losses from the sales of securities in the fiscal years ended March 31, 2023 and 2024 are as follows:
Thousands of
U.S. dollars

2023

¥

Thousands of
U.S. dollars

18

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries

9 Borrowings, Lease Obligations and Bonds

10 Trade Payables

Borrowings and lease obligations as of March 31, 2023 and 2024 are summarized as follows:

Trade payables as of March 31, 2023 and 2024 are summarized as follows:
Millions of yen

2023
Carrying
amountShort-term borrowings¥

Weighted averageinterest rate (%)

2024

2024

Weighted averageinterest rate (%)

Carrying
amount713

0.23$ 4,711

Carrying
amount556

0.23

Current portion of long-term borrowings

10,214

0.33

112

0.26

746

Current portion of lease obligations

2,667

1.99

3,625

1.88

23,941Long-term borrowings (less current portion)

195

0.25

91

0.25

607

Lease obligations (less current portion)

7,880

1.88

7,823

2.50

51,668¥21,514—¥12,366—$81,675

Total¥

Thousands of
U.S. dollars

Millions of yen

Notes payable
Accounts payable–trade
Total

Thousands of
U.S. dollars

2023

2024

2024

¥15,015¥12,977$ 85,710

84,22986,277569,824¥99,244¥99,254$655,534

11 Retirement and Severance Benefits
1. Defined benefit plans(a) For the fiscal years ended March 31, 2023 and 2024, the reconciliation of the beginning and ending balances of retirement benefit obligations is as follows(excluding plans for which the simplified method is applied):

The aggregate maturities of long-term borrowings and lease obligations (less current portion) outstanding as of March 31, 2024 are as follows:
Millions of yen

Thousands of
U.S. dollars

More than one year, within two years¥2,322$15,340

More than two years, within three years

1,740

11,495More than three years, within four years

1,190

7,861

More than four years, within five years

1,019

6,732

More than five years
Total

1,642

10,845¥7,915$52,276

Bonds as of March 31, 2023 and 2024 are summarized as follows:
2023

Name

Issue

Date of issue

Balance asof April 1, 2022
(Millions of yen)

Reflector
Entertainment Ltd.

Convertible bonds

October 22, 2020

¥1,018

Balance asof March 31, 2023
(Millions of yen)Interest rate(%)

Pledged asset

Redemption date

¥1,0855.0

None

December 31, 2025

Millions of yen

2023

2024

2024

¥30,488¥30,324$200,282

Service cost

2,072

2,018

13,328Interest cost

41

40

270

Actuarial gains or losses incurred

310(1,500)(9,908)Retirement benefits paid

(2,142)(1,495)(9,877)

Prior service costs incurred(1,270)——

Increase resulting from changes from the simplified method to the principle method

1,095

—

—

Other

(271)

(294)

(1,943)¥30,324¥29,093$192,153

Beginning balance of retirement benefit obligations

Ending balance of retirement benefit obligations(b) F or the fiscal years ended March 31, 2023 and 2024, the reconciliation of the beginning and ending balances of plan assets is as follows (excluding plans forwhich the simplified method is applied):

2024

Name

Reflector
Entertainment Ltd.

Issue

Date of issue

Convertible bonds* October 22, 2020

Balance asof April 1, 2023
(Millions of yen)

¥1,085

Balance asof March 31, 2024
(Millions of yen)

¥1,215

Balance asof March 31, 2024
(Thousands of
U.S. dollars)$8,029Interest rate
(%)

2024

2024

¥28,504$188,261
2,742

Expected return on assets

486

415

None

December 31,
2025

Actuarial gains or losses incurred

(832)

990

6,544

Contributions to plan from employer

2,360

2,514

16,604Retirement benefits paid

(1,640)(642)(4,245)

Increase resulting from changes from the simplified method to the principle method

1,177

—

—

(18)

(168)

(1,113)¥28,504¥31,613$208,793

5.0—

Thousands of
U.S. dollars

$

—

1,215

8,029

More than two years, within three years——

More than three years, within four years——

More than four years, within five years——

More than five years——¥1,215$8,029*1 The agreement calls for redemption in accordance with results for each fiscal year. However, due to the difficulty of the calculations, the planned redemption amounts listed have been calculated as if all bonds
were redeemed on their maturity date.

Other
Ending balance of plan assets(c) For the fiscal years ended March 31, 2023 and 2024, the reconciliation of the beginning and ending balances of net defined benefit liability and net defined
benefit asset for plans using the simplified method is as follows:
Millions of yen

Beginning balance of net defined benefit liability and net defined benefit asset, net

Thousands of
U.S. dollars

2023

2024

2024

¥1,220¥1,294$ 8,547

Retirement benefit expenses

495

433

2,862

Retirement benefits paid

(87)

(155)

(1,025)Contributions to plan from employer(1,837)

(423)

(278)

Decrease resulting from changes from the simplified method to the principle method

81

—

—

Other

8

27

183

¥1,294¥1,322$ 8,731

Ending balance of net defined benefit liability and net defined benefit asset, net

19

2023

¥26,972

Redemption date

¥

Total

Thousands of
U.S. dollars

Pledged asset

Millions of yen

More than one year, within two years

Millions of yen

Beginning balance of plan assets

As of March 31, 2024, the planned redemption amounts of bonds are as follows:

Within one year

Thousands of
U.S. dollars

20

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries(d) As of March 31, 2023 and 2024, the reconciliation of the ending balances of retirement benefit obligations and plan assets with the net defined benefit liability(i) For the fiscal years ended March 31, 2023 and 2024, the principal actuarial assumptions are as follows:

and net defined benefit asset recorded on the consolidated balance sheets is as follows:

2023

2024

Millions of yen

Thousands of
U.S. dollars

2023

2024

2024

Retirement benefit obligations of funded plans¥ 28,752¥ 27,783$ 183,499

Salary increase rate

Plan assets(30,459)(33,898)(223,883)(1,707)(6,114)(40,383)

Method of determining long-term expected rate of return on assets*1 T
 o determine the long-term expected rate of return on plan assets, reference was made to the current and expected future allocations of plan assets and to the current and expected future long-term rate of
returns on the various assets that make up plan assets.

Retirement benefit obligations of non-funded plans

4,821

4,916

32,473

Net amount of liabilities and assets recorded on consolidated balance sheet

3,114(1,197)(7,909)Net defined benefit liability

3,710

4,925

32,530Net defined benefit asset(596)(6,123)(40,440)¥ 3,114¥ (1,197)$ (7,909)

Net amount of liabilities and assets recorded on consolidated balance sheet

Millions of yen

Thousands of
U.S. dollars

2023

2024

2024

Service cost

¥2,072¥2,018$13,328

Interest cost

41

40

270

Expected return on assets

(486)

(415)

(2,742)

Amortization of actuarial gains or losses

736

721

4,768

Amortization of prior service costs

(139)

(191)

(1,263)Retirement benefit expenses calculated using the simplified method

495

433

2,862

Retirement benefit expenses related to defined benefit plans

2,719

2,607

17,223

(44)

16

109

Total retirement benefit expenses¥2,674¥2,624$17,332*1	In the fiscal year ended March 31, 2023, the following extra retirement payments were recorded: ¥23 million in “Selling, general and administrative expenses” and gain on termination of retirement benefit plan
was recorded: ¥67 million in “Other income (loss).”	In the fiscal year ended March 31, 2024, the following extra retirement payments were recorded: ¥0 million ($6 thousand) in “Selling, general and administrative expenses” and extra retirement payments wererecorded: ¥15 million ($102 thousand) in “Other income (loss).”(f) For the fiscal years ended March 31, 2023 and 2024, the breakdown of items recorded in remeasurements of defined benefit plans (before tax effect) is as follows:
Millions of yen

2023

Prior service costs
Actuarial gains or losses
Total

Thousands of
U.S. dollars

2024

2024

¥1,129¥ (191)$ (1,263)

(423)

3,213

21,220¥ 706¥3,021$19,957(g) As of March 31, 2023 and 2024, the breakdown of items recorded in cumulative remeasurements of defined benefit plans (before tax effect) is as follows:

0.00%~1.00%

Long-term expected rate of return on assets

1.91%~4.66%

0.56%~1.68%

1.65%~5.12%

1.57%~4.77%

2. Defined contribution plans
For the fiscal years ended March 31, 2023 and 2024, the required contributions to defined contribution plans for the Company and its consolidated subsidiaries are
as follows:
Millions of yen

Thousands of
U.S. dollars

2023

2024

2024

Unrecognized prior service costs¥ 1,775¥ 1,584$10,461

Unrecognized actuarial gains or losses(4,531)(1,318)(8,708)¥(2,756)¥ 265$ 1,753(h) As of March 31, 2023 and 2024, the major categories of plan assets as a percentage of total plan assets are as follows:
2024

Bonds

35%

24%

Equities

12

16
19

Life insurance general account

17

Other*1

36

41

Total

100%

100%

2024

2024

¥1,393$9,204

1. Financial instruments

the risk of fluctuations in foreign exchange rates. In the same manner as(1) Policy for financial instruments

receivables, the Company and its consolidated subsidiaries manage balances

The Company and its consolidated subsidiaries manage funds by meansby counterparty and currency, and in addition the Company and its consoli-of highly secure financial instruments only and procures funds throughdated subsidiaries track market trends and, as necessary, utilize forward­borrowing from banks and other methods, such as issuing corporate bonds.

­foreign exchange contracts and currency option contracts for hedging.
Borrowings are used for the purpose of securing sufficient current

The Company and its consolidated subsidiaries utilize derivatives toliquidity. If borrowings are made with a floating interest rate, thehedge the risks noted below and do not engage in speculative transactions.

Company track market trends and, as necessary, utilize interest rate swap
(2) Types of financial instruments and related risks

transactions and interest rate option transactions to hedge interest rate

With regard to credit risk posed by customers with respect to trade receiv-

fluctuation risk.

ables, the Company and its consolidated subsidiaries manage balance byTrade payables are exposed to liquidity risk. The Company and its consoli-counterparty and due date, and credit information on major customers isdated subsidiaries manage this risk through the formulation and revision of

updated at least once a year to minimize such credit risk. The Company andmonthly funding plans for the Company and its consolidated subsidiaries.
Derivative transactions are used for hedging purposes. With regard toits consolidated subsidiaries have a system for immediately sharing within
the Company and its consolidated subsidiaries adverse credit and otherhedging methods and hedged items, hedging policies, and methods ofinformation regarding counterparties in the event that such informationassessing the effectiveness of hedging transactions, for which hedge account-is received. As of March 31, 2024, designated large customers were coun-ing is applied, please refer to Note “2 Summary of Significant Accounting

terparties for 13.0% of trade receivables.

Policies—(l) Derivatives and Hedging Activities.”
Derivative transactions are executed and managed according to internal

Receivables denominated in foreign currencies ­arising as a result of thefact that the Company and its consolidated subsidiaries conduct businessrules that determine trading authority and limits on amounts traded.

on a global basis are subject to foreign exchange rate fluctuation risk. The

Derivatives are used in ways that minimize credit risk, and thus transactions

Company and its consolidated subsidiaries manage balances by counter-are carried out only with highly creditworthy financial institutions.
(3) Supplementary explanation on the fair value ofsubsidiaries track market trends and, as necessary, utilize forward foreign

financial instruments

exchange contracts for hedging.

As certain variables are used for calculations of the fair value of financial

Marketable securities and investment securities are principally the sharesof companies with which the Company has a business relationship. These

instruments, the result of such calculations may vary if different assumptions

investments are exposed to the risk of fluctuations in market prices. The

are used.

market price is confirmed at least once per quarter, and the holdings are

The contract amounts of derivative transactions in Note “20 Foreign

reevaluated once per year with consideration of market conditions andExchange Risk Management and Interest Rate Risk Management” should not­relationships with counterparties.

be considered indicative of the market risk associated with the derivative
financial instruments.

trade payables are denominated in foreign currencies and are exposed to*1 The “Other” category mainly includes cash and alternative investments.
*2 The total of plan assets includes 18% and 17% representing assets contributed to a retirement benefit trust for the corporate pension plan as of March 31, 2023 and 2024, respectively.

21

2023

¥1,17512 Financial Instruments

All trade payables substantially have due dates within one year. Certain
2023

Thousands of
U.S. dollars

party and currency, and in addition the Company and its consolidated

Millions of yen

Total

0.00%~0.60%

Required contributions to defined contribution plans(e) For the fiscal years ended March 31, 2023 and 2024, the breakdown of retirement benefit expenses is as follows:

Other*1

Discount rate

22

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries

		 (2) Financial assets and liabilities not stated at fair value in the consolidated balance sheets

2. Fair value of financial instruments

Millions of yen

The carrying amounts of financial instruments as stated in the consolidated balance sheets, their fair values as of March 31, 2023 and 2024, and the differences
between carrying amounts and fair values are as follows:
Millions of yen

Thousands of U.S. dollars

2024

2024

2023
Carrying
amountMarketable securities andinvestment securities*2

Fair value

Carrying
amountDifference

Fair value

Carrying
amountDifference

Fair value¥128,745¥134,383¥5,638¥101,136¥114,664¥13,527$667,966$757,312$89,346¥128,745¥134,383¥5,638¥101,136¥114,664¥13,527$667,966$757,312$89,346Derivative financial
instruments*3¥ (1,033)¥ (1,033)¥¥ 1,428¥ 1,428¥$ 9,434$ 9,434$—

Thousands of
U.S. dollars

2023

2024

2024

Carrying amount

Carrying amountUnlisted shares¥6,028¥5,999$39,627

Shares of affiliated companies (unlisted shares)

5,638

8,429

55,670Convertible-bond-type bonds with share acquisition rights

—

73

482

Contributions to investment partnerships

294

488

3,229

Fair value
Level 3
Total

Fair value
Level 3
Total

Level 1

Level 2

Level 1

Level 2  Shares¥16,344¥—¥— ¥16,344 ¥24,664¥—¥— ¥24,664$162,900$—$— $162,900   Total assets¥16,344¥—¥— ¥16,344 ¥24,664¥—¥— ¥24,664$162,900$—$— $162,900*1 D
 escription of the valuation techniques and inputs used to measure fair value:
Marketable securities and investment securities
Listed shares are valued using quoted prices. As listed shares are traded in active markets, their fair value is classified as Level 1.
Others are SAFE investments. Their latest fair value is estimated by taking into consideration events affecting the value of the financial instruments and is classified as Level 3.
Derivative transactions
The fair value of forward exchange contracts is measured using observable inputs, such as exchange rates, and is classified as Level 2.
*2 I nformation regarding the fair value of financial instruments carried at fair value in the consolidated balance sheets that is classified as level 3(1) Changes in net valuation gain/loss recognized in gain/loss for the fiscal year ended March 31, 2023 and 2024—

Carrying amount2024

Fair value
Level 3Total

 Shares of affiliatedcompanies*1 Notes regarding “cash” are omitted, and notes regarding “deposits,” “trade receivables,” “trade payables,” and “income taxes payable” are omitted due to the fair value approximating the book value as they aresettled in a short period of time.
*2 Shares, etc., that do not have a market price and investments in partnerships for which the net amount of the Company’s equity share in the partnerships is recorded on the balance sheet are not included in“Marketable securities and investment securities.” The carrying amounts of these financial instruments are as follows:
Millions of yen

Level 22024

Marketable securities andinvestment securities

Difference

Total assets—

Level 1Thousands of U.S. dollars

2023

Millions of yen

Thousands of
U.S. dollars

2023

2024

2024

¥—

¥ 86

$ 569

Net income (loss) and other comprehensive income (loss) for the year *

—

(86)

(569)

Purchase, sale, or redemption

86

52

350

Balance at end of year

¥86

¥ 52

$ 350

Balance at beginning of year

* The amount is included in “Loss on valuation of investment securities” in the consolidated statements of income.
*3 Assets and liabilities derived from derivative transactions are stated on a net basis. Items for which the total is a net liability are shown in parentheses.

(2) E xplanation of the fair value valuation process
The fair value of financial assets classified as Level 3 is calculated in accordance with accounting methods, etc., pertaining to the calculation of fair value. When calculating fair value, the Company considers the appropriateness of the classified level of fair value and the valuation techniques used to calculate fair value, in accordance with the nature, characteristics, and risks of identified assets.

Notes: 1. Maturity analysis of financial assets
Millions of yen

2024

2024

More than More than
one year, five years,
Withinwithinwithin More than
one year five years ten years ten years

More than More than
one year, five years,
Withinwithinwithin More than
one year five years ten years ten years

More than More than
one year, five years,
withinwithin More than
five years ten years ten years

Cash and deposits¥274,829

Trade receivables
Total

Thousands of U.S. dollars

2023

¥

—

¥—

¥— ¥316,827

97,400

1,607

—

—

¥372,229¥1,607¥—¥

Withinone year

—

¥—

¥—

$2,092,513$    —$—$—

115,563

2,557

—

—

763,250

16,888——¥— ¥432,391¥2,557¥—¥—$2,855,763$16,888$—$—

2. Matters relating to the breakdown of the fair value of financial instruments by appropriate classification, etc.
		 The fair value of financial instruments is classified into the following three levels according to the observability and materiality of inputs used to measure fair value.
		 Level 1 fair value: Fair value measured using observable inputs such as quoted prices in active markets for the assets or liabilities that are the subject of the measurement.
		 Level 2 fair value: Fair value measured using observable inputs other than Level 1 inputs.
		 Level 3 fair value: Fair value measured using unobservable inputs.
		If multiple inputs are used that have a significant impact to the fair value measurement, such fair value is categorized in its entirety at the level with the lowest priority in the fair value measurement amonglevels to which each input belongs.
		 (1) Financial assets and liabilities stated at fair value in the consolidated balance sheets

Level 2Thousands of U.S. dollars

2023

2024

2024

Fair value
Level 3
Total

Fair value
Level 3
Total

Fair value
Level 3
Total

Level 1

Level 2

Level 1

Level 2Marketable securities andinvestment securities
Available-for-sale securities  Shares¥117,952 ¥—¥ — ¥117,952  Other——

86¥89,946 ¥—¥—¥89,946$594,061

86

—

—

52

52

—

—

—

—

—

1,428

—

¥117,952 ¥—¥86 ¥118,038¥89,946 ¥1,428

¥52

$

—

$ — $594,061

—

—

350

350

1,428

—

9,434

—

9,434

¥91,428$594,061$9,434

Derivative transactions
Currency related
Total assets$350 $603,846

Derivative transactions
Currency related
Total liabilities¥

The Company and its domestic consolidated subsidiaries are subject to Japanese corporate, inhabitant, and enterprise taxes based on income which, in theaggregate, resulted in a normal tax rate of 30.6% for the years ended March 31, 2023 and 2024.
Income tax expenses reflected in the accompanying consolidated statements of income for the fiscal years ended March 31, 2023 and 2024 consist of the following:
Millions of yen

Income taxes—current
Income taxes—deferred
Total

Thousands of
U.S. dollars

2023

2024

2024

¥42,669¥46,682$308,316(6,799)(1,556)(10,282)¥35,870¥45,125$298,033

Reconciliation of the normal tax rate and the effective tax rate as a percentage of profit before income taxes for the fiscal years ended March 31, 2023 and 2024 isMillions of yen

Level 1

13 Income Taxes

—

1,033

—

1,033

—

¥1,033

¥— ¥

1,033

¥

23

—

—

—

— ¥

—

¥—

—
¥

—

—
$

—

$

—

—

—

—

$ — $

—

as follows:
2023

2024

Normal tax rate

30.6%

30.6%

Entertainment expenses not deductible for tax purposes

0.2

0.2

Corporate inhabitant tax on per capita basis

0.2

0.2

Directors’ bonuses

0.5

0.4

Change in valuation allowance for deferred tax assets

(0.5)

2.3

Differences in tax rates of foreign consolidated subsidiaries

(0.8)

(0.4)

Tax credit for research and development expenses

(1.4)

(0.9)

Tax credit under wage increase promotion tax system

(1.0)

(0.6)

Tax credit under the local revitalization support tax system

—

(0.6)

Amortization of goodwill

0.5

0.4

Other

0.1

(0.8)

Effective tax rate

28.4%

30.8%

24

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries

Significant components of deferred tax assets and liabilities as of March 31, 2023 and 2024 are as follows:

Thousands of U.S. dollars
Millions of yen

Thousands of
U.S. dollars

2024

2024

2023

Deferred tax assets:
Tax loss carryforward*¥ 10,573¥ 10,046$ 66,352

Excess depreciation of fixed assets

20,55823,809157,251

Accrued employee bonuses

5,364

5,271

34,813Inventory valuation losses

5,413

7,757

51,237

Net defined benefit liability

2,948

1,620

10,704

Unrealized profit

3,133

2,836

18,733

Loss on valuation of advance payments

1,521

1,418

9,369

Accrued enterprise taxes and others

1,470

1,700

11,231

Research and development expenses

1,303

1,218

8,044

Revaluation reserve for land

1,367

1,367

9,031

Other

11,547

11,65776,99065,20068,703453,760

Valuation allowance for tax loss carryforward*2(7,308)(7,226)(47,730)

Valuation allowance for total deductible temporary differences(7,568)(8,734)(57,689)   Total valuation allowance*1(14,877)(15,961)(105,420)

Total deferred tax assets

50,32352,742

348,340

Retained earnings of foreign consolidated subsidiaries(1,619)(1,628)(10,754)

Valuation difference on available-for-sale securities(25,906)(19,859)(131,167)

(199)

(199)

(1,316)2   Total gross deferred tax assets

Deferred tax liabilities:

Revaluation reserve for land(482)

(1,369)(9,043)

Total deferred tax liabilities

Other(28,207)(23,056)(152,281)

Net deferred tax assets¥ 22,115¥ 29,685$ 196,058

2024

Within one year

More than
one year, within
two years

More than
two years, within
three years

More than
three years, withinfour years

More thanfour years, within
five years

More than
five years

Total

Tax loss carryforward*1

$ 361

$ 178

$ 136

$—

$ 36

$ 65,639$ 66,352

Valuation allowance

(320)

(161)

(136)

—

(36)

(47,075)(47,730)

Deferred tax assets*

40

16

—

—

—

18,564

18,6212*1 The tax loss carryforward was calculated using the normal tax rate.
*2 T he Group recorded deferred tax assets of $18,621 thousand in relation to tax loss carryforward of $66,352 thousand (calculated using the normal tax rate). The deferred tax assets of $18,621 thousand were recognized mainly for tax loss carryforward of $18,078 thousand (calculated using the normal tax rate) of foreign subsidiaries. The Group judged that the deferred tax assets for the tax loss carryforward were recoverable due to projected future taxable income and did not recognize any valuation allowance.

Accounting for Corporation Tax and Local Corporation Tax and Tax Effect Accounting
The Company and certain domestic consolidated subsidiaries adopt the Group Tax Sharing System and conduct accounting and disclosure of corporate tax andlocal corporate tax, as well as tax-effect accounting pertaining to such taxes, in accordance with Practical Issues Task Force Report No. 42, “Practical Solution on the
Accounting and Disclosure under the Group Tax Sharing System” (August 12, 2021).

14 Selling, General and Administrative Expenses
Significant components of selling, general and administrative expenses for the fiscal years ended March 31, 2023 and 2024 are as follows:
Millions of yen

2023

2024

2024

¥ 56,798¥ 64,509$ 426,058

Remuneration, salaries and allowances for directors (and other officers)

64,60568,979455,583Retirement benefit expenses

2,997

3,057

20,191

Provision for bonuses for directors (and other officers)

2,075

1,274

8,418

Research and development expenses

30,36332,316

213,439

3

(14)

(98)

95,340110,154

727,525¥252,183¥280,277$1,851,116

Advertising expenses

Provision of allowance for doubtful accounts
Other
Total

*1 The valuation allowance increased by ¥1,084 million ($7,161 thousand). The principal content of this increase was a increase in valuation allowance for total deductible temporary differences.
*2 Amounts of tax loss carryforward and related deferred tax assets by carryforward period
Millions of yen

2023

Within one year

More than
one year, within
two years

More than
two years, within
three years

More than
three years, withinfour years

More thanfour years, within
five years

More than
five years

Total

Tax loss carryforward*1

¥ 628

¥ 102

¥ 48

¥ 50

¥—

¥ 9,744¥10,573

Valuation allowance

(621)

(102)

(48)

(50)

—

(6,486)(7,308)Deferred tax assets*2

7

—

—

—

—

3,257

3,264

*1 The tax loss carryforward was calculated using the normal tax rate.
*2 The Group recorded deferred tax assets of ¥3,264 million in relation to tax loss carryforward of ¥10,573 million (calculated using the normal tax rate). The deferred tax assets of ¥3,264 million were recognized
mainly for tax loss carryforward of ¥3,101 million (calculated using the normal tax rate) of foreign subsidiaries. The Group judged that the deferred tax assets for the tax loss carryforward were recoverable due toprojected future taxable income and did not recognize any valuation allowance.
Millions of yen

2024

Within one year

More than
one year, within
two years

More than
two years, within
three years

More than
three years, withinfour years

More thanfour years, within
five years

More than
five years

Total

Tax loss carryforward*1

¥ 54

¥ 26

¥ 20

¥—

¥5

¥ 9,938¥10,046

Valuation allowance

(48)

(24)

(20)

—

(5)

(7,127)(7,226)

Deferred tax assets*2

6

2

—

—

—

2,810

2,819

15 Other Comprehensive Income
The components of other comprehensive income for the fiscal years ended March 31, 2023 and 2024 are as follows:
Millions of yen

2023

Valuation difference on available-for-sale ­securities

Amountsarising

Reclassification
adjustments

Beforetax effectTax effect

Net oftax effect¥25,471¥—¥25,471¥(7,782)¥17,688

Deferred gains or losses on hedges

2,422(4,315)(1,892)338(1,554)Foreign currency translation adjustment

8,940

223

9,164

—

9,164

Remeasurements of defined benefit plans,
net of tax

126

579

706

(227)

478

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

(34)

(23)

(57)

—

(57)

¥36,926¥(3,536)¥33,390¥(7,671)¥25,719*1 The tax loss carryforward was calculated using the normal tax rate.
*2 The Group recorded deferred tax assets of ¥2,819 million in relation to tax loss carryforward of ¥10,046 million (calculated using the normal tax rate). The deferred tax assets of ¥2,819 million were recognized
mainly for tax loss carryforward of ¥2,737 million (calculated using the normal tax rate) of foreign subsidiaries. The Group judged that the deferred tax assets for the tax loss carryforward were recoverable due toprojected future taxable income and did not recognize any valuation allowance.

25

Thousands of
U.S. dollars

26

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries

Amountsarising

Valuation difference on available-for-sale securities

Reclassification
adjustments¥25,035 ¥(44,667)

Millions of yen

Thousands of U.S. dollars

2024

2024

Beforetax effectTax effect

Net oftax effectAmountsarising

Reclassification
adjustments

Beforetax effectTax effect

Net oftax effect¥(19,632)¥6,026¥(13,606)$165,345$(295,012) $(129,666) $39,800$ (89,865)

Deferred gains or losses
on hedges

7,244(5,178)

2,066

(389)

1,676

47,848(34,199)

13,649(2,575)

11,074Foreign currency translation
adjustment

18,590—18,590—18,590122,779—

122,779—­

122,779

Remeasurements of defined
benefit plans, net of tax

2,491

Share of other comprehensive income of entities accounted
for using equity method
Total

530

193

3,021

(939)

2,081

16,452

5

199

—

199

1,280

¥53,554 ¥(49,309)¥ 4,244¥4,696¥ 8,941$353,707

3,504

36

19,957(6,206)

13,750

1,316

—­

1,316

$(325,671) $ 28,036$31,018$ 59,054

19 Leases
As lessee
The Company and its consolidated subsidiaries occupy offices and other facilities and use various assets under operating lease arrangements.
Operating leases
Future minimum payments required under non-cancelable operating leases as of March 31, 2023 and 2024 are as follows:
Thousands of
U.S. dollars

Millions of yen

Within one year

2023

2024

2024

¥ 891

¥1,478$ 9,762Over one year

284

2,980

19,682

Total¥1,176¥4,458$29,445

20 Foreign Exchange Risk Management and Interest Rate Risk Management
Derivative financial instruments are comprised principally of forward foreign exchange contracts and currency option contracts. These instruments are used to

16 Retained Earnings and Dividends

reduce the risk of changes in foreign exchange rates, but are not used for speculation.
The Company is exposed to credit risk related to non-performance by the counterparties to forward foreign exchange contracts and currency option contracts,
The Company’s retained earnings includes legal reserves of ¥1,645 million

In Japan, in the event a dividend distribution of surplus is made, the lesserof an amount equal to 10% of the dividend or the excess, if any, of 25% ofand ¥1,645 million ($10,867 thousand) at March 31, 2023 and 2024, respec-

common share over the total of additional paid-in capital and legal earnings

tively. Proposed appropriations of retained earnings have not been reflected

reserve must be set aside as a legal reserve until the aggregate amount ofin the consolidated financial statements at the end of the fiscal year. The

capital surplus and the legal reserve equals 25% of stated capital.

Company’s approved appropriations of retained earnings for the fiscal year

Certain foreign consolidated subsidiaries are also required to

ended March 31, 2024 were cash dividends of ¥32,719 million ($216,097 thou-­appropriate their earnings to legal reserves under the laws of thesand). In addition, a mid-year dividend may be paid based on approval by the­respective countries.

Board of Directors, which is subject to limitations. The mid-year d­ ividend forthe fiscal year ended March 31, 2024 was ¥6,603 million ($43,615 thousand).

but the Company does not expect any instances of non-performance due to the high credit ratings of the counterparties.
Contract amounts, fair values, and gains or losses from valuation of forward foreign exchange contracts outstanding as of March 31, 2023 and 2024 are as­follows. The contract amounts in themselves should not be considered indicative of the market risk associated with the derivative financial instruments.
(1) Derivative transactions not qualifying for hedge accounting
Millions of yen

2023
Contract
amountEstimated
fair valueYen¥3,558

U.S. dollars

4,308

Thousands of U.S. dollars

2024

2024

Unrealized
gain (loss)

Contract
amountEstimated
fair value

Unrealized
gain (loss)

Contract
amount¥(223)¥(223)¥ 4,419

¥ 338

¥ 338

14

14

5,905

(196)

(196)

428

(3)

(3)

955

(17)

U.S. dollars

410

(6)

(6)

474

H.K. dollars

24

(0)

(0)

Chinese yuan

42

(0)

(0)

¥8,773¥(219)¥(219)

Hedging method

Estimated
fair value

Unrealized
gain (loss)$29,191$ 2,234$ 2,234

39,004(1,297)(1,297)

(17)

6,308

(113)

(113)

33

33

3,131

224

224

14

0

0

94

0

0

34

0

0

226

0

0

¥11,803

¥ 158

¥ 158

$77,957$ 1,049$ 1,049

Forward foreign exchange contracts
Sold:

17 Revaluation Reserve for Land
In accordance with the Law Concerning Land Revaluation (Law No. 34,

the National Tax Agency. The Com­missioner assesses and publishes theEuro­promulgated on March 31, 1998), the land used for business purposes

method to calculate land value that forms the foundation for calculatingwas ­revalued and “Revaluation reserve for land, net of tax” was reported­taxable value for land value tax prescribed in Article 16 of the Land Value

Purchased:in “Net assets” in the consolidated balance sheets.

Tax Law (Law No. 69, promulgated on May 2, 1991), as stipulated in Article
2-4 of the Ordinance Implementing the Law Con­cerning Land Revaluation

Revaluation method(Cabinet Order No. 119, promulgated on March 31, 1998). Reasonable

The fair value of land is determined based on official notice prices that are­adjustments are made to the official notice prices.

		Totalcalculated by the method assessed and published by the Commissioner of*1 For certain of the above forward foreign exchange contracts, hedge accounting is applied mainly for the transactions between consolidated subsidiaries in each financial statement, but these transactions have been
eliminated in the consolidated financial statements. As a result, these transactions are not treated as effective hedges of the hedged assets and/or liabilities in the consolidated financial statements.

18 Common Shares and Treasury Shares(2) Derivative transactions qualifying for hedge accounting
Millions of yen

The changes in the number of common shares and treasury shares for the fiscal years ended March 31, 2023 and 2024 are as follows:

2023
SharesCommon shares (number of shares)
Number of shares at beginning of year
Increase due to share split
Number of shares at end of year

2023

2024

222,000,000

222,000,000—

444,000,000

222,000,000

666,000,000
SharesTreasury shares (number of shares)
Number of shares at beginning of year

2023

2024

2,023,206

1,983,216

Increase due to share split—

3,966,432

Purchase of treasury shares as per a resolution made by the Board of Directors—

6,000,000(39,990)(135,892)

1,983,216

11,813,756

Purchases and other
Number of shares at end of year
*1 The Company conducted a share split with a ratio of three shares for every one share of common share on April 1, 2023.

Hedge accounting
methodHedging method

Hedge items

Thousands of U.S. dollars

2024

2024

Contract
amountEstimated
fair value

Contract
amountEstimated
fair value

Contract
amountEstimated
fair value

Forward foreign exchange contracts
Sold:
DeferredYen

Account receivable–trade¥14,368¥(423)¥19,570¥ 734$129,258$4,853

U.S. dollars

Account receivable–trade

1,091

(8)

4,074

(35)

26,910(234)

Purchased:

Foreign exchange
allocation method
		TotalYen

Account payable–trade

428

(8)

61

(1)

407

(9)

U.S. dollars

Account payable–trade

25,076(372)

11,966571

79,032

3,775

105

(*1)

77

(*1)

510

(*1)

¥41,069¥(813)¥35,750¥1,269$236,119$8,384

Forward foreign exchange contracts
Purchased:
U.S. dollars

Account payable-trade*1 F orward foreign exchange contracts and other contracts for which the allocation method is applied are accounted for together with the accounts payable–trade that are the hedged items, and as a result the fairvalues of those contracts are included in the fair values of the accounts payable–trade.

27

28

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries

21 Commitments and Contingent Liabilities

Thousands of U.S. dollars

2024

1. Pledged assets

Reportable Segment

As of March 31, 2023 and 2024 details of assets deposited as a security deposit for issuance under the Payment Services Act are as follows:

Other investments and assets

Millions of yen

Thousands of
U.S. dollars

2023

2024

2024

¥2,417¥2,440$16,118

DigitalToys and Hobby

IP Production

Amusement

Subtotal

Other*1

Total

Japan

$1,529,743$2,363,896$450,726$626,306$4,970,672$38,657$5,009,330

Americas333,842

259,076—

11,048603,966—

603,966

Europe418,344

151,946—

109,562

679,854—679,854

Asia

136,073469,279

1,074

36,626

643,054—643,054$2,418,002$3,244,197$451,801$783,543$6,897,547$38,657$6,936,205

Revenue from contracts with customers

2. Commitments

Revenue from other sources

Commitments as of March 31, 2023 and 2024 are summarized as follows:
Millions of yen

Thousands of
U.S. dollars

2024

2024

2023

Bandai Namco Will Inc.

¥

49

¥

23

$

155

BANDAI LOGIPAL AMERICA, INC.

5,144

5,068

33,476

Transferee of amusement facilities business in North America

245

110

727

¥5,439¥5,202$34,360

Total

Net sales to external customers

—

—

—

—

—

—

—

$2,418,002$3,244,197$451,801$783,543$6,897,547$38,657$6,936,205*1 The “Other” category is a business segment not included in reportable segments that includes operations such as logistics services.
*2 Net sales to external customers are based on the location of the Company or its consolidated subsidiaries and are recorded by country or region.

2. Information for understanding revenue from contracts with customers
Useful information in understanding revenue from contracts with customers is as stated in Note “2 Summary of Significant Accounting Policies—(d) AccountingStandards for Significant Income and Expenses.”

3. Information for understanding amounts of revenue in this fiscal year and onwards(1) Balance of contract assets and liabilities, etc.

22 Revenue Recognition
1. Disaggregation of revenue from contracts with customers
Millions of yen

2023
Reportable Segment
DigitalToys and Hobby

IP Production

Amusement

Subtotal

Other

Total

Millions of yen

Thousands of
U.S. dollars

2023

2024

2024

Receivables from contracts with customers (beginning balance)¥122,742¥ 99,007$653,901

Receivables from contracts with customers (ending balance)

99,007

118,120

780,139

Contract assets (beginning balance)

—

—

—

Contract assets (ending balance)

—

69

457

Japan

¥244,350¥306,662¥66,102¥ 83,651¥700,766¥6,764¥707,531

Americas62,17336,351—

819

99,343—99,343Contract liabilities (beginning balance)

22,912

22,567

149,049

Europe55,71523,447—

15,29494,457—

94,457

Contract liabilities (ending balance)

22,567

27,728183,135

Asia

18,906

66,244

197

3,407

88,756—88,756¥381,146¥432,705¥66,300¥103,172¥983,324¥6,764¥990,089

—

—

—

—

—

—

—

¥381,146¥432,705¥66,300¥103,172¥983,324¥6,764¥990,089

Revenue from contracts with customers
Revenue from other sources
Net sales to external customers

Millions of yen

1· Advances received from customers before the transfer of goods and products in the Toys and Hobby Business.

DigitalToys and Hobby

IP Production

Amusement

Subtotal

Other*

Total¥231,618¥357,917¥68,244¥ 94,829¥ 752,609¥5,853¥ 758,462

Americas50,54739,226—

1,672

91,446—91,446

Europe63,341

23,006—

16,588102,936—

102,936

Revenue from other sources
Net sales to external customers

20,602

71,053

162

5,545

97,364—

97,364¥366,110¥491,204¥68,407¥118,636¥1,044,357¥5,853¥1,050,210

—

—

—

—

—

—

—

¥366,110¥491,204¥68,407¥118,636¥1,044,357¥5,853¥1,050,210

29

tion is satisfied by the acquisition and use of such paid-for items by the customer;· Advances received for which, if there are elements not yet delivered to the customer, such as additional free downloadable content in the Digital Business, theCompany calculates the estimated sale value by referencing the selling price of similar paid downloadable content and recognizes revenue over the course ofJapan

Revenue from contracts with customers· Advances received as consideration paid by customers for content of the Digital Business, which are recognized as revenue when the Group’s performance obliga-

2024
Reportable Segment

Asia

Contract liabilities are mainly related to the following and are reversed upon recognition of revenue:

the customer’s average game-playing period; andThe amount of revenue that was recognized in the previous fiscal year that was included in the contract liability balance at the beginning of the period is ¥21,239
million. The amount of revenue that was recognized in the current fiscal year that was included in the contract liability balance at the beginning of the period is¥19,004 million ($125,516 thousand).
(2) Transaction price allocated to the remaining performance obligations
As there were no material contracts with original expected terms of over one year, descriptions in regard thereto are omitted.

30

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries

23 Segment Information

Millions of yen

2024

The reportable segments of the Company are components of the Group whose separate financial information is available and which are periodically evaluated by

Reportable Segment

the Board of Directors in deciding how to allocate management resources and in assessing the performance.

DigitalThe Group is made up of (1) three Units, one for each business domain, namely, the Entertainment Unit (Digital Business, Toys and Hobby Business), the IP

Toys and
Hobby IP Production

Amusement

Subtotal

Other*1

Total Adjustments*2

Consolidated
total*3

Net sales

Production Unit, and the Amusement Unit, and (2) the affiliated business companies that mainly serve a supporting role for these Units. The business manage-

To external customers

ment company of each business leads the planning and promotion of the business strategies of the business for Japan and overseas.

Inter-segment sales and transfers

Accordingly, the Group has the following four reportable segments: the Digital Business, the Toys and Hobby Business, the IP Production Business, and the

Total

Amusement Business.

¥366,110¥491,204¥68,407

6,557

18,676

14,061¥372,667¥509,880¥82,468¥118,636 ¥1,044,357
1,031¥ 5,853 ¥1,050,210

40,325¥119,667 ¥1,084,683

26,50566,830¥32,358 ¥1,117,041¥— ¥1,050,210(66,830)—¥ (66,830) ¥1,050,210

Segment profit

6,257

78,655

10,048

6,843

101,805

988

102,793(12,111)

90,682

Toys and Hobby Business conducts planning, development, production, and sales of toys, capsule toys, cards, confectionery and foods, apparel, sundries, model

Segment assets

258,161

235,523

69,61472,606

635,906

27,323

663,230

308,608

971,838kits, prizes, stationery, and other products. The IP Production Business conducts planning, production, and management of visual and music content such as ani-

Other items:¥ 9,290¥ 20,214¥ 1,135¥ 5,556 ¥36,197797 ¥

36,994¥ 1,370 ¥

38,364

344

472

1,859

—

2,676

—

2,676

—

2,676

1,446

25

10

192

1,674

—

1,674

—

1,674

—

4,380

—

—

4,380

10,66815,048—15,048

7,227

27,685839

11,22846,981

554

47,535

1,580

49,116

The Digital Business conducts planning, development, and distribution of network content, and planning, development, and sales of home console games. The

mations, management and administration of copyrights and other rights, artist discovery and development, and live entertainment operations. The Amusement

Depreciation

Business conducts planning, development, production, sales and after-service for amusement machines, and planning and operation of amusement facilities,

Amortization of goodwill

including theme parks and indoor playgrounds.

Impairment losses

The accounting method used for the business segments reported is the same as the accounting method stated in Note “2 Summary of Significant Accounting
Policies.” Segment profit or loss in the segment information below is measured by operating profit, and segment assets are measured by total assets. Amounts ofinter-segment transactions are based on the prevailing market prices.

	Investments in entities accounted forusing equity method	Increase in property, plant and equipment
and intangible assets¥

Millions of yen

2023

Thousands of U.S. dollars

Reportable Segment
DigitalToys and
Hobby IP Production

Amusement

Subtotal

Other*

1

Total Adjustments*

2

2024

Consolidated
total*3

Reportable Segment

Net sales¥381,146¥432,705¥66,300

4,535

14,786

15,448¥385,681¥447,491¥81,748

Segment profit

49,33959,538

10,645

6,038

125,561

1,165

Segment assets

263,030

217,095

82,49364,775627,395

27,835To external customers
Inter-segment sales and transfers
Total¥103,172 ¥ 983,324
1,429

36,199¥104,602 ¥1,019,524¥ 6,764 ¥ 990,089—¥990,089

60,748(60,748)—¥31,313 ¥1,050,837¥(60,748)¥990,089

126,726(10,254)

116,472

655,231

271,127

926,358

24,548¥Other items:
Depreciation
Amortization of goodwill
Impairment losses
	Investments in entities accounted forusing equity method	Increase in property, plant and equipment
and intangible assets¥ 4,640¥ 16,562¥ 1,220772 ¥

26,846¥ 1,825¥ 28,671

168

396

1,866

¥ 3,652 ¥—

26,074
2,431

¥

—

2,431

—

2,431

—

58

3

1,188

1,251

—

1,251

—

1,251

—

3,008

—

—

3,008

10,25013,259—13,2597,570

27,000

1,992

7,210

43,773741

44,514

1,223

45,737

DigitalToys and
Hobby IP Production

Amusement

Subtotal

Other*1

Total Adjustments*2

Consolidated
total*3

Net sales
To external customers$2,418,004 $3,244,197
43,307

Total$451,801

123,348

92,867$2,461,311 $3,367,546$544,668Inter-segment sales and transfers$783,543 $6,897,547
6,813

266,336$790,356 $7,163,883$ 38,657 $6,936,205 $
175,054441,390— $6,936,205(441,390)—$213,712 $7,377,596 $ (441,390) $6,936,205

Segment profit

41,328519,488

66,36845,198672,383

6,527

678,910(79,992)

598,917

Segment assets

1,705,051

1,555,535

459,772

479,536

4,199,896

180,463

4,380,359

2,038,228

6,418,587

61,356 $ 133,510$ 7,502$ 36,698 $ 239,067

Other items:
Depreciation$$ 5,266 $ 244,334 $9,048 $ 253,382

Amortization of goodwill

2,276

3,117

12,280—17,674—

17,674—

17,674

Impairment losses

9,554

171

67

1,268

11,061—

11,061—

11,061—

28,929——28,92970,462

99,392—

99,39247,733

182,852

5,545

74,158310,290

3,663

313,953

10,441

324,395

	Investments in entities accounted forusing equity method	Increase in property, plant and equipment
and intangible assets*1 The “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 The details of adjustment amounts are as follows:(1) The adjustment to segment profit of –¥10,254 million for the fiscal year ended March 31, 2023, includes elimination of inter-segment transactions of ¥872 million and corporate expenses not allocated toreportable segments of –¥11,126 million. The adjustment to segment profit of –¥12,111 million (–$79,992 thousand) for the fiscal year ended March 31, 2024, includes elimination of inter-segment transactionsof ¥313 million ($2,069 thousand) and corporate expenses not allocated to reportable segments of –¥12,425 million (–$82,062 thousand). Principal corporate expenses are expenses related to administrative
divisions not belonging to reportable segments.
(2) The adjustment to segment assets of ¥271,127 million as of March 31, 2023, includes elimination of inter-segment transactions of –¥32,587 million and corporate assets not allocated to reportable segmentsof ¥303,714 million. The adjustment to segment assets of ¥308,608 million ($2,038,228 thousand) as of March 31, 2024, includes elimination of inter-segment transactions of –¥35,485 million (–$234,368 thousand) and corporate assets not allocated to reportable segments of ¥344,093 million ($2,272,596 thousand). Principal corporate assets are cash and deposits, investment securities, and assets related toadministrative divisions not belonging to reportable segments.
(3) The adjustment to depreciation of ¥1,825 million for the fiscal year ended March 31, 2023, includes elimination of inter-segment transactions of –¥35 million and depreciation not allocated to reportable­segments of ¥1,860 million. The adjustment to depreciation of ¥1,370 million ($9,048 thousand) for the fiscal year ended March 31, 2024, includes elimination of inter-segment transactions of –¥30 million(–$204 thousand) and depreciation not allocated to reportable segments of ¥1,400 million ($9,252 thousand).
(4) The adjustment to increase in property, plant and equipment and intangible assets of ¥1,223 million for the fiscal year ended March 31, 2023, is related to corporate assets not allocated to reportable­segments. The adjustment to increase in property, plant and equipment and intangible assets of ¥1,580 million ($10,441 thousand) for the fiscal year ended March 31, 2024, is related to corporate assets
not allocated to reportable segments.
*3 Segment profit is adjusted with operating profit in the consolidated statements of income.

31

32

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries

24 Related-Party Disclosures

Additional segment information as of and for the fiscal years ended March 31, 2023 and 2024 is as follows:
1. Information by product and service
This information is included in the segment information above.

Fiscal year ended March 31, 2023
(1)Transactions by consolidated subsidiaries of the Company with non-consolidated subsidiaries and affiliated companies of the Company

2. Information by geographic region
Net sales and property, plant and equipment
Millions of yen

2023

Net sales
Property, plant and equipment

Japan

Americas

EuropeAsia, excluding Japan

Total¥577,998¥172,517¥117,526¥122,047¥990,089

85,557

5,021

8,377

8,500

107,458
Millions of yen

2024
Japan

Net sales
Property, plant and equipment

Americas

EuropeAsia, excluding JapanType

Company

Address

Affiliatedcompany

Happinet
Corporation

Taito-ku,
Tokyo¥165,678¥129,017¥130,975¥1,050,210

94,006

5,094

10,4309,104

118,636¥2,751 million

Net salesJapan

Americas

EuropeAsia, excluding Japan

Total$4,124,825$1,094,238$852,104$865,036$6,936,205

620,874

33,646

68,89060,129783,541

Property, plant and equipment

Fiscal year ended March 31, 2023

Net sales(Millions of yen)

Name

Type

Name

Address

Capital orcontribution
to capitalApple Inc.

¥113,099

Fiscal year ended March 31, 2024

Net sales(Millions of yen)

Name

Apple Inc.

Net sales(Thousands of U.S. dollars)¥108,143

Officer

MasaruKawaguchi——

President andRepresentative Directorof the Company

Ownership
directly 0.0%—

Officer

Yuji
Asako

—

—

Director of theCompany

Ownership
directly 0.0%

Officer

Nobuhiko
Momoi

—

—

Director of theCompany

Officer

Yasuo
Miyakawa——

Officer

Kazuhiro
Takenaka—

Officer

MakotoAsanuma

Officer

Disposal of treasury sharesaccompanying contribution inkind of the monetarycompensation claims¥30 million

—

—

—

Disposal of treasury sharesaccompanying contribution inkind of the monetarycompensation claims¥15 million——

Ownership
directly 0.0%—

Disposal of treasury sharesaccompanying contribution inkind of the monetarycompensation claims¥10 million——

Director of theCompany

Ownership
directly 0.0%—

Disposal of treasury sharesaccompanying contribution inkind of the monetarycompensation claims¥27 million

—

—

—

Director of theCompany

Ownership
directly 0.0%—

Disposal of treasury sharesaccompanying contribution inkind of the monetarycompensation claims¥24 million

—

—

—

—

Director of theCompany

Ownership
directly 0.0%—

Disposal of treasury sharesaccompanying contribution inkind of the monetarycompensation claims¥15 million——

HiroshiKawasaki——Director of theCompany

Ownership
directly 0.0%—

Disposal of treasury sharesaccompanying contribution inkind of the monetarycompensation claims¥13 million——

Officer

Shuji
Ohtsu

—

—

Director of theCompany

Ownership
directly 0.0%—

Disposal of treasury sharesaccompanying contribution inkind of the monetarycompensation claims¥15 million——

Officer*2

Mitsuaki
Taguchi——

Director of theCompany

Ownership
directly 0.0%—

Disposal of treasury sharesaccompanying contribution inkind of the monetarycompensation claims¥21 million——

Officer*2

Satoshi
Kono——

Director of theCompany

Ownership
directly 0.0%—

Disposal of treasury sharesaccompanying contribution inkind of the monetarycompensation claims¥21 million——

Ratio of voting
rights ownership

Relationshipwith related
party

Business, and IP Production Business*1 Apple Inc. is a platform-provision company. The actual result of sales to the company is usage fees, etc., for users (ordinary users) of game services provided by the Group.

4. By reportable segment, information regarding the amount of amortization of goodwill for the fiscal years ended March 31, 2023 and 2024 andthe unamortized balance of goodwill as of March 31, 2023 and 2024 is as follows:
Millions of yen

2023
Digital Toys and Hobby

IP Production

Amusement

Other

Corporate andeliminations

Total

Amortization of goodwill

¥ 168

¥396

¥ 1,866

¥—

¥—

¥—

¥ 2,431

Unamortized balance of goodwill

1,565

767

12,227———

14,5612024
IP Production

Amusement

Other

Amortization of goodwill

¥344

¥472

¥1,859¥—¥—¥—¥ 2,676

Unamortized balance of goodwill

931

308

10,368———

11,608

Digital Toys and Hobby

Total

Thousands of U.S. dollars

2024
IP Production

Amusement

Other

Corporate andeliminations

Amortization of goodwill$2,276$3,117$12,280

$—

$—

$—

$17,674

Unamortized balance of goodwill

6,150

2,038

68,479———76,668

Digital Toys and Hobby

33

Total

Content*1*1 T
 hese items are due to contribution in kind of monetary compensation claims accompanying the performance-based share compensation plan. The disposal price of treasury shares is determined based on theclosing price of common shares of the Tokyo Stock Exchange Prime Market on June 17, 2022 (the business day immediately preceding the date of the resolution at the Board of Directors’ meeting).
*2 Mr. Mitsuaki Taguchi and Mr. Satoshi Kono retired from office as Directors of the Company on June 20, 2022, and the above-stated transactions are those during their term of office.

Millions of yen

Corporate andeliminations¥12,848 million

Balance asof March 31,
2023

Name of related segment

Digital Business, Toys and Hobby$714,241

Account items
Accounts
receivable–
trade

Account
items

Content of business

Hobby Business*1 Apple Inc. is a platform-provision company. The actual result of sales to this company is usage fees, etc., for users (ordinary users) of game services provided by the Group.

Sales of products,¥73,048 million
and others

Balance
as of March 31,
2023

Transaction
amountName of related segment

Digital Business and Toys andSales agency

Content

Transaction
amountDirectors, Audit & Supervisory Board members, major shareholders (limited to individuals), etc.

*1 Net sales are classified by country and region based on customer location.

3. Information by major customer

Wholesaler ofHoldingtoys, video games,
directly 25.9%
and amusement products indirectly 0.3%

Relationshipwith related
party(2) Transactions between the Company and related parties

Thousands of U.S. dollars

2024

Content of business

Ratio ofvoting rights
ownership*1 T ransaction terms and policy for determining transaction terms.
For the transaction stated above, the products were sold on the same terms as general transactions with third parties in the ordinary course of business.

Total¥624,539

Capital orcontribution
to capital

34

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries

Fiscal year ended March 31, 2024

25 Per-Share Data

(1) Transactions by consolidated subsidiaries of the Company with non-consolidated subsidiaries and affiliated companies of the Company

Type

Company

Address

Affiliatedcompany

Happinet
Corporation

Taito-ku,
Tokyo

Capital orcontribution
to capitalContent of business

Ratio ofvoting rights
ownership¥2,751 million($18,170
thousand)

Wholesaler oftoys, video games,
and amusement products

Holding
directly 25.8%
indirectly 0.3%

Relationshipwith related
party
Sales agency

Content

Transaction
amount¥86,641 million
Sales of products,($572,232
and others
thousand)Account items

Balance
as of March 31,2024

Accounts
receivable–
trade¥15,342 million($101,330
thousand)*1. Transaction terms and policy for determining transaction terms.
For the transaction stated above, the products were sold on the same terms as general transactions with third parties in the ordinary course of business.

Yen

2024

2024

Net assets per share¥987.58¥1,069.29$7.06

Basic earnings per share

136.88153.85

1.02*1 Diluted earnings per share is not presented since no potentially dilutive shares exist.
*2 T he Company conducted a share split with a ratio of three shares for every one share of common share on April 1, 2023. Net assets per share and basic earnings per share were calculated assuming that the share
split was conducted at the beginning of prior fiscal year.
*3 The basis of calculating basic earnings per share is as follows:(2) Transactions between the Company and related parties
Directors, Audit & Supervisory Board members, major shareholders (limited to individuals), etc.

Type

Name

Address

Capital orcontribution
to capital

Officer

MasaruKawaguchi——

Content of businessPresident andRepresentative Directorof the Company

Ratio of voting
rights ownership
Ownership
directly 0.0%

Relationshipwith related
party—

Account
items

Balance asof March 31,2024

Disposal of treasury shares¥45 million
accompanying contribution in($303 thousand)kind of the monetarycompensation claims*1

—

—

—

—

Content

Transaction
amountOfficer

Yuji
Asako

—

—

Director of theCompany

Ownership
directly 0.0%—

Officer

Nobuhiko
Momoi

—

—

Director of theCompany

Ownership
directly 0.0%—

Disposal of treasury shares¥22 million
accompanying contribution in($149 thousand)kind of the monetary
1compensation claims*——

OfficerNao
Udagawa——

Director of theCompany

Ownership
directly 0.0%—

Disposal of treasury shares¥36 million
accompanying contribution in($243 thousand)kind of the monetary
1compensation claims*——

Kazuhiro
Takenaka

Officer

MakotoAsanuma

Officer

HiroshiKawasaki

Officer

Personequivalent
to Officer

Shuji
Ohtsu

Yasuo
Miyakawa

—

—

—

—

—

—

Director of theCompany

Ownership
directly 0.0%—

Director of theCompany

Ownership
directly 0.0%—

Director of theCompany

Ownership
directly 0.0%——

Director of theCompany

Senior Advisor of
the Company

Ownership
directly 0.0%

Ownership
directly 0.0%——

Disposal of treasury shares¥27 million
accompanying contribution in($179 thousand)kind of the monetary
1compensation claims*—

Disposal of treasury shares¥27 million
accompanying contribution in($179 thousand)kind of the monetarycompensation claims*1——

Disposal of treasury shares¥17 million
accompanying contribution in($112 thousand)kind of the monetarycompensation claims*1——

Payment of outsourcing fees*2¥41 million($271 thousand)

—

—

2023

2024

2024

¥90,345¥101,493$670,320———

90,345

101,493

670,320

660,013,710

659,682,874

Profit attributable to owners of parent
Profit attributable to owners of parent available to common share
Average number of common share outstanding (shares)

26 Business Combinations
Fiscal year ended March 31, 2023

			 c. Legal form of business combination		

Transactions conducted by commonly controlled entities				Absorption-type merger with SUNRISE INC. as the surviving company and Bandai Namco Rights Marketing Inc. as the disappearing company

ies and change in trade name of subsidiary of the IP Production Unit)

			 d. Company name after combination

1. Reorganization in the visual business				 Bandai Namco Filmworks Inc.

(1) Overview of transaction——(2) Overview of accounting treatment

		 (i) Overview of absorption-type company split with SUNRISE INC. as the		The transactions were accounted for as transactions conducted bysuccessor company

commonly controlled entities, in accordance with the “Accounting

			 a. Name and description of business involved in absorption-type—company split

Standard for Business Combinations” and “Guidance on theName of business: Visual business of Bandai Namco Arts Inc.

Accounting Standard for Business Combinations and the AccountingStandard for Business Divestitures.”

Description of business: Planning, production, management, etc.,—

2. Reorganization in the music and live event businessesof visual content(1) Overview of transaction

			 b. Date of business combination

		 (i)	Name and description of business of the company involved in

April 1, 2022
—

—

Other
¥6 million­current($42 thousand)liabilities*1 T hese items are due to contribution in kind of monetary compensation claims accompanying the performance-based share compensation plan. The disposal price of treasury shares is determined based on theclosing price of common shares of the Tokyo Stock Exchange Prime Market on June 16, 2023 (the business day immediately preceding the date of the resolution at the Board of Directors’ meeting).
*2 Outsourcing fees are determined through negotiations between both parties.

combination

			 c. Legal form of business combination
Absorption-type company split with Bandai Namco Arts Inc. as the			 Merging company (surviving company)

splitting company and SUNRISE INC. as the successor company

			 Name: Bandai Namco Arts Inc.
			Description of business: Planning, production, and management of			 d. Company name after combination

visual and music content, artist discovery, and development andBandai Namco Filmworks Inc.

production of live events, etc.

		 (ii)	Overview of absorption-type merger with SUNRISE INC. as			 Merged company (disappearing company)

the ­surviving company

			 Name: Bandai Namco Live Creative Inc.

			 a.	Name and description of business of the company involved in			Description of business: Planning and production of live perfor-

combination

mances and events; ticket sales; planning, production, and sales of				 Merging company (surviving company)

goods; and management of live viewings, etc.

				Name: SUNRISE INC.

			 Merged company (disappearing company)

				Description of business: Planning and production of animation;

			 Name: SUNRISE Music INC.

management and administration of copyrights				 Merged company (disappearing company)

			Description of business: Production of music related to animations				 Name: Bandai Namco Rights Marketing Inc.

and planning and use of music and masters, centered on SUNRISE
INC. and Bandai Namco Pictures Inc.

				Description of business: Development, operation, and sales of
online video distribution platform services; development, opera-

		 (ii) Date of business combination

tion, and sales of various community services and related tools

			April 1, 2022

			 b. Date of business combination
				April 1, 2022

35

Thousands of
U.S. dollars

Basic earnings per share(Absorption-type company split, absorption-type merger between subsidiar-

Disposal of treasury shares¥41 million
accompanying contribution in($271 thousand)kind of the monetary
1compensation claims*

Disposal of treasury shares¥41 million
accompanying contribution in($271 thousand)kind of the monetarycompensation claims*1

Millions of yen

Amount not applicable to common shareholders

Disposal of treasury shares¥22 million
accompanying contribution in($149 thousand)kind of the monetary
1compensation claims*

Officer

U.S. dollars

2023

36

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries

	(Business transfer between subsidiaries and change in trade name of		 (iii) Legal form of business combination­subsidiary in Europe)			  Absorption-type merger with Bandai Namco Arts Inc. as the surviv-

1. Overview of transaction

ing company and Bandai Namco Live Creative Inc. and SUNRISE
Music INC. as the disappearing companies
		 (iv) Company name after combination

		 Sales, maintenance, etc., of amusement machines in Europe, etc.

approved a resolution to cancel treasury shares as described below

		 (i) Name and business description involved in this reorganization­pursuant to the provisions of Article 178 of the Companies Act of Japan,

			 Name		

which was implemented on May 21, 2024.

			 Business description	Planning, development, marketing and(3) Legal form of business combination

		The transactions were accounted for as transactions conducted by		Business transfer with Bandai Namco Amusement Europe Ltd. as thecommonly controlled entities, in accordance with the “Accounting

1. Class of shares to be cancelled(4) Company name after combination

Accounting Standard for Business Combinations and the Accounting

		 Bandai Namco Amusement Europe Ltd.

Standard for Business Divestitures.”(5) Other matters related to overview of transaction

3. Other matters related to overview of transaction

ware, and planning, development, and­distribution of network content

of issued shares before cancellation)

		 (ii) Date of business combination (scheduled)

3.	Total number of issued shares
after cancellation
4. Date of cancellation

660,000,000 shares

			September 30, 2024

May 21, 2024

		 (iii) Legal form of business combination
			Method equivalent to absorption-type company split in Japan		All businesses of Bandai Namco Amusement Europe Ltd., which

The IP Production Unit, whose most important mission is to create IP,

Digital business of BNEU
sales of home console and PC game soft-

Common shares of the Company

2.	Number of shares to be cancelled	6,000,000 shares (0.9% of total number

transferor and NAMCO UK LTD. as the transferee

Standard for Business Combinations” and “Guidance on the(1) Overview of transaction

At the Board of Directors meeting held on May 9, 2024, the Company

		 October 1, 2022

(2) Overview of accounting treatment

4. Transactions conducted by commonly controlled entities(Cancellation of treasury shares)(1) Name and description of business involved in reorganization(2) Date of business combination

			 Bandai Namco Music Live Inc.

27 Significant Subsequent Events­produces and develops worldviews for IP through coordination among theengages in sales of amusement machines, etc., were transferred to(Reorganization in the European region and establishment of a subsidiary(assets and liabilities related to BNEU’s digital business are trans-visual, music, and live event businesses. Furthermore, the Company aims to

NAMCO UK LTD., which engages in operation of amusement facilities,

accompanying the reorganization)

ferred at book value, and BNEE delivers shares to BNEU as

maximize the value of IP by coordinating with each Unit in the Group.

etc. The two companies are being combined with the aim of strength-

At the Board of Directors meeting held on May 20, 2024, the Company

By combining the companies in the visual, music, and live event busi-

ening the amusement business in the U.K. and elsewhere in Europe byapproved a resolution to reorganize its organization in the European region

nesses of the IP Production Unit, the companies will be able to share the dif-

integrating the value chain in a manner that involves bringing together

and to establish a subsidiary accompanying the reorganization as follows:

ferent expertise, strengths, and external partner networks, etc., of eachboth companies’ know-how relating to amusement machine sales and1. Purpose

monly controlled entities, in accordance with the “Accounting Standard

company engaged in creating and developing IP, and effectively utilize theamusement facility operations. Bandai Namco Amusement Europe Ltd.

	Currently, in Europe, Bandai Namco Europe S.A.S. (“BNEU”), which isfor Business Combinations” and the “Guidance on the Accounting

Company’s IP and music. In addition, through personnel exchanges, etc., theis to be liquidated in December 2023, subsequent to having completed

located in France, operates as an operating holding company that has theStandard for Business Combinations and the Accounting Standard for

Company will strengthen the development of human resources involved in IP

transfer of its entire business.

two functions of the operating company that operates the Digital BusinessBusiness Divestitures.”creation and production. With these i­nitiatives, the Company aims to further

2. Overview of accounting treatment

and the holding company. The Company aims to implement the reorgani-strengthen its IP creation and production capabilities, which are at the core of		The transactions were accounted for as transactions conducted by

the IP axis strategy.

consideration)(2) Overview of accounting treatment
		The transactions are accounted for as transactions conducted by com-zation to clearly separate the operating company function and holding(Disposal of treasury shares as share compensation)commonly controlled entities, in accordance with the “Accounting

company function within BNEU whereby there is a holding company that

Based on a resolution at the Board of Directors’ meeting held on June 24,

Standard for Business Combinations” and “Guidance on theoversees Continental Europe and strengthens governance functions and2024, a disposal of treasury shares as share compensation has been imple-

Accounting Standard for Business Combinations and the Accounting

an operating company that devotes itself to executing business strategy

mented, as follows:Standard for Business Divestitures.”and expanding the Digital Business.
1. Overview of disposal

2. Scheme of the Reorganization and its schedule
Fiscal year ended March 31, 2024

(1) Date of disposal	March 20, 2024	Establishment of BANDAI NAMCO EUROPE NEWCO

Company’s common shares

May 20, 2024	Resolution by the Board of Directors of
the Company
September 30, 2024	After the Digital Business is transferred from BNEU

(3) Disposal value¥3,027 per share(4) Total disposal value¥246 million(5) Method of offering or disposal 	Share compensation

to NEWCO, NEWCO is renamed Bandai Namco

allotment method

Entertainment Europe S.A.S. (BNEE).

(6) Individuals eligible for allotment, number of eligible individuals,

October 1, 2024	BNEU is renamed Bandai Namco Holdings Europe

number of shares to be allotted

S.A.S.

		 Directors of the Company*1

3. Outline of newly established subsidiary (scheduled as of October 1, 2024)(1) Name

3 individuals, 16,000 shares

		 Directors of subsidiaries of the Company*2

		 Bandai Namco Entertainment Europe S.A.S.

				(2) Business description

30 individuals, 65,300 shares(7) Other The taking effect of the securities registration statement filed in		 (i) P lanning, development, marketing and sales of home console andaccordance with the Financial Instruments and Exchange Act is

PC game software, and planning, development, and distribution ofa condition for this disposal of treasury shares.
*1. C ompany Directors (excluding those serving concurrently as president and representative director) of Bandai Namco Entertainment Inc., BANDAI CO., LTD., Bandai Namco Filmworks Inc., Bandai
Namco Amusement Inc., and Bandai Namco Business Arc Inc., Directors who are Audit &Supervisory Committee members*2 D irectors (excluding non-executive Directors) of Bandai Namco Entertainment Inc., BANDAI CO.,LTD., Bandai Namco Filmworks Inc., Bandai Namco Amusement Inc., BANDAI SPIRITS CO., LTD.,
Bandai Namco Music Live Inc., and Bandai Namco Business Arc Inc.

network content(3) Capital		 (i) € 100 (before the transfer of business in September 2024)€231,547,000 (after the transfer of business in September 2024)(4) Establishment
		 (i) M arch 20, 2024 (established as NEWCO)

2. Objective of, and reasons for, the disposal

According to the schedule, this company will change its name

As performance-based remuneration related to this fiscal year, monetary

to BNEE on September 30, 2024, and after the Digital Business iscompensation claims from the Company and subsidiaries are granted to the­transferred to it from BNEU, it will start operating that business.

directors of the Company and subsidiaries (“eligible directors”). Eligible direc-(5) Major shareholders

tors pay in the monetary compensation claims as property contributed in		 (i) Bandai Namco Holdings Europe S.A.S. 100%

37

July 12, 2024

(2) C lass and number of shares to be disposed 81,300 shares of the

S.A.S. (“NEWCO”) as a subsidiary of BNEU

There are no material business combinations to be disclosed.

kind to receive delivery of the Company’s common shares.

38

APPENDIXINDEPENDENT AUDITOR’S REPORT

Audit fees

Independent Auditor’s Reporta. Details of fees to auditors

To the Board of Directors of Bandai Namco Holdings Inc.
Millions of yen

Thousands of U.S. dollars

2024

2024

2023
Audit fees

Fees for non-audit services

Audit fees

Fees for non-audit services

Audit fees

Fees for non-audit services

Filing company

¥145

¥—

¥113

¥1

$ 748

$8

Consolidated subsidiaries

198

—

264

—

1,746

—

¥343

¥—

¥377

¥1

$2,495$8Total

Report on the Audit of the Consolidated Financial Statements
OpinionWe have audited the accompanying consolidated financial statements of Bandai Namco Holdings Inc. (“the Company”) and its consolidated subsidiaries(collectively referred to as “the Group”), which comprise the consolidated balance sheets as at March 31, 2024 and 2023, the consolidated statements ofincome and comprehensive income, changes in net assets and cash flows for the years then ended, and the notes to consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of theGroup as at March 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance

The non-audit service provided to the Company in the fiscal year ended March 31, 2024 is evaluation of the defined contribution pension operationalwith accounting principles generally accepted in Japan.

management institution.
In addition to the fees mentioned above, additional audit fees of ¥27 million ($179 thousand) related to the previous fiscal year were paid in the fiscal year ended
March 31, 2024.

Basis for Opinion

b. Details of fees to member firms to which auditors belong (member firms of KPMG) (excluding a.)

described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the GroupWe conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further

Millions of yen

Thousands of U.S. dollars

2024

2024

2023
Audit fees

Fees for non-audit services

Audit fees

Fees for non-audit services

Filing company

¥ —

¥15

¥ —

¥ 11

—

$ 77

Consolidated subsidiaries

458

19

514

98

3,396

650

¥458

¥34

¥514

¥110

$3,396

$728

Total

Audit fees$

Fees for non-audit services

in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled ourother ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statementsof the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.

The non-audit service provided to the Company is advice for tax-related work.
The non-audit service provided to consolidated subsidiaries is mainly advisory services, etc, related to taxes.

39

40

INDEPENDENT AUDITOR’S REPORT

Reasonableness of the valuation of work in process for home video games before launch in main domestic development bases

Other Information

The key audit matter

How the matter was addressed in our audit

The other information comprises the information included in the Financial Report, but does not include the consolidated financial statements and ourIn the consolidated balance sheets, Bandai Namco Holdings Inc. and its

The primary procedures we performed to assess the reasonableness of

consolidated subsidiaries (collectively referred to as the “Group”) recog-

the valuation of work in process for home video games before launch inare responsible for overseeing the directors’ performance of their duties with regard to the design, implementation and maintenance of the reporting pro-nized work in process of ¥92,665 million as inventories as at March 31,

main domestic development bases included the following:

2024. As described in Note 2 “Summary of Significant Accounting Policies,(p) Significant Accounting Estimates, Valuation of Work in Process for(1) Internal control testingHome Video Games before Launch at Major Domestic Development

We tested the design and operating effectiveness of certain of the Group’s

Bases” to the consolidated financial statements, the amount included

internal controls relevant to the valuation of work in process for home

¥57,101 million of work in process for home video games before launch invideo games before launch in main domestic development bases. In thismain domestic development bases that belonged to the Digital Businessassessment, we focused our testing on the following controls:

segment, representing 5.9% of total assets in the consolidated financial• controls to evaluate the appropriateness of the estimated sales volume

statements.

of game titles subject to individual assessment.

At the main domestic development bases, work in process recognizedin the consolidated balance sheets is stated at an amount calculated by(2) Assessment of the reasonableness of the estimated sales volume

writing down the carrying amount based on the declining profitability,

We assessed the appropriateness of the estimated sales volume of home

if any.

console game titles before launch subject to individual assessment, by

The Group considers that the profitability of work in process has not

performing the following procedures, among others:

declined when there has been no change in market demand from the ini-

• assessed the appropriateness of similar game titles determined to be thetial forecast and the production has been proceeding as planned. On thebenchmarks in terms of similarities, such as game concepts and popu-

other hand, the Group individually assesses the work in process whoselarity of IP (Intellectual Property: including characters in the game); andprofitability may have declined. In particular, for products that are near

• assessed the appropriateness of the estimated sales volume of gamelaunch, for which market demand is more predictable, the Group individ-

titles subject to individual assessment by comparing them with the sales

ually assesses the work in process considering the sales results of similar

results of similar game titles determined to be the benchmarks.

game titles and sales potential based on future demand forecasts.
In writing down the carrying amount based on the declining profitability, the Group compares the carrying amount of work in process with its
net selling value. When the carrying amount exceeds the net selling value,
the excess is written down. In calculating the net selling value, similar
game titles sold in the past were used as benchmarks and the Group estimates sales volumes considering sales potential based on demand forecasts. These estimates involved a high degree of uncertainty and they
were highly dependent upon subjective judgement by the managementof main domestic development bases.
We, therefore, determined that our assessment of the reasonablenessof the valuation of work in process for home video games before launch
in main domestic development bases was of most significance in our
audit of the consolidated financial statements for this fiscal year, andaccordingly, a key audit matter.

auditor’s reports thereon. Management is responsible for the preparation and presentation of the other information. The audit and supervisory committee
cess for the other information.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report thatfact. We have nothing to report in this regard.
Responsibilities of Management and the Audit and Supervisory Committee for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles
generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance with accounting principles generally accepted in Japan.
The audit and supervisory committee are responsible for overseeing the directors’ performance of their duties with regard to the design, implementation and maintenance of the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with auditing standards generally accepted in Japan will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, while theobjective of the audit is not to express an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether amaterial uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance with accounting standards generally
accepted in Japan, the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an­opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.
We communicate with the audit and supervisory committee regarding, among other matters, the planned scope and timing of the audit, significant
audit ­findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the audit and supervisory committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the audit and supervisory committee, we determine those matters that were of most significance in the audit of
the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.

41

42

INDEPENDENT AUDITOR’S REPORT

Fee-related Information
Fees paid or payable to our firm and to other firms within the same network as our firm for audit and non-audit services provided to the Company andits consolidated subsidiaries are described in “Audit fees” included in Appendix of the Financial Report.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2024 are presented solely forconvenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on
the basis described in Note 3 to the consolidated financial statements.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

Michiaki Yamabe
Designated Engagement Partner
Certified Public Accountant

Mayuka Katsuki
Designated Engagement Partner
Certified Public Accountant

Yasuko Kawamata
Designated Engagement Partner
Certified Public Accountant

KPMG AZSA LLC
Tokyo Office, Japan
August 8, 20244344