Notice Regarding Recording of Income Taxes for Prior Periods105.3 KB

November 9, 2021

Name of listed company: BANDAI NAMCO Holdings Inc.

Name of representative: Masaru Kawaguchi,

President and Representative Director (Code Number: 7832 TSE 1st section) Contact: Yuji Asako,

Director, Division General Manager

of the Corporate Planning Division

Notice Regarding Recording of Income Taxes for Prior Periods

BANDAI NAMCO Holdings Inc. (the "Company") hereby announces that the Company and some of the consolidated subsidiaries in the Bandai Namco Group (the "Group") in Japan have recorded income taxes for prior periods in the second quarter (six months) of the fiscal year ending March 31, 2022 as described below.

1. Recording of income taxes for prior periods

As a result of the tax examination of the tax years from the fiscal year ended March 31, 2018 to the fiscal year ended March 31, 2020 by the Tokyo Regional Taxation Bureau, the Group received indication that there were issues, mainly regarding the treatment of the tax credit for experimentation and research expenses related to the Digital Business. Given the increasing possibility that the Group will be subject to a tax reassessment, the Group has recorded an additional tax amount. In addition, based on the contents of this tax reassessment, the Group has also recorded an estimated amount for the amount of taxes corresponding to the fiscal year ended March 31, 2021.

However, the Group believes that the tax treatment has been applied appropriately in accordance with laws and regulations. The Group will temporarily pay the amount of taxes related to the tax reassessment, and it plans to continue appealing to the Tokyo Regional Taxation Bureau to assert the validity of the Group's claim.

2. Impact on earnings

The estimated total additional tax amount described in 1. above is ¥6,792 million, and this amount has been

recorded as "income taxes for prior periods" in the second quarter (six months) of the fiscal year ending March 31, 2022.

End of notice

1