Bandai Namco GroupInterim Period for the
Fiscal Year ending March 2006
November 24, 2005

Table of Contents
１．1st Half Results
BANDAI－－－－－－－－－－－－－－Ｐ２

NAMCO－－－－－－－－－－－－－－Ｐ３

NAMCO BANDAI Holdings－－－－－－－－－－－－－－Ｐ４

２．Business Strategy
Toys & Hobby－－－－－－－－－－－－－－Ｐ５

Amusement Facility－－－－－－－－－－－－－－Ｐ６

Game Contents－－－－－－－－－－－－－－Ｐ６

Network－－－－－－－－－－－－－－Ｐ７

Visual and Music Content－－－－－－－－－－－－－－Ｐ８

North America－－－－－－－－－－－－－－Ｐ８

３．Management Integration Synergies
Fusion Plans & Projects within the New Group
Business Synergies－－－－－－－－Ｐ９－－－－－－－－－－－－－ Ｐ１０1

（Millions of Yen）
1st Half Results

Prior Year 1st HalfResults% ChangeNet Sales

134,645

121,277＋11.0％

Operating
Income15,3329,829＋56.0％

Ordinary
Income15,946

10,132＋57.4％Net Income

5,607

3,883

＋44.4％

Posted good results, centeredaround girls’ toys

Mobile Suit Gundam Series
displays and provides groupsynergy effects
While continuing to struggle due to harshmarket conditions and tight competition,
our efforts of “selection and focus”
resulted in some improvements.

2

（Millions of Yen）

1st Half Results

Prior Year 1stHalf Results% Change

Net Sales

85,052

81,980＋3.7％

Operating
Income

2,538

4,422

- 42.6％

Ordinary
Income

2,632

4,200

- 37.3％Net Income

2,526

2,679

- 5.7％

Domestic sales posted strong results.
Installation of large-sized gamemachines in 2nd half.

Increase in number of units soldoverseas.
Concentration of franchise title
releases in 2nd half.
Whilst harsh market conditions,same store sales year on year was
95.7% domestically (Japan), and97.7% for North America.

3（Billions of Yen）

1st Half Results2nd Half
Forecast

Net Sales

218.8

251.2

470.0

OperatingIncome

17.5

26.7

44.2

Ordinary
Income

18.2

25.9

44.1

Net Income

7.8

16.6

24.4

Net Sales
600

Operating Income（Billions of Yen）

500
435.7

448.4

400
172.5

178.5

550.0
470.0

500.0

60

（Billions of Yen）

50

44.2
39.4

40

180.0

12.7

15.4
500.0

550.0

200

55.0
50.0

43.0

300

100

Full Year
Forecast

15.0

30

55.0

50.0
20

263.1

269.9

290.0

27.6
100

31.5
24.3

0’04/3Results

’05/3
’06/3
Results Forecast’07/3
Plan’08/3
Plan’04/3
Results’05/3
Results’06/3’07/3
Forecast Plan

’08/3Plan＊Results for ’04/3 and ‘05/3 are cumulative composites of BANDAI and NAMCO

BANDAI

NAMCO

NAMCO BANDAI HD

4

Net Sales（Billions of Yen）
190

（Billions of Yen）
18

179.5

180

16.1
16

164.8

170

167.2

13.7

14160

Operating Income

150.1
12150
140

12.8

11.4

10’03/3

’04/3

’05/3

’06/3
Forecast’03/3’04/3’05/3’06/3
Forecast

BANDAI▶ Popular, Long-establishedBoys’ Character Toys

▶Tamagotchi posts strong results
Worldwide Sales top
Character Merchandise:
5.8 million units in 1st halfStrong results

New Tamagotchi Series(Entama)Plans to link with
Data Carddass▶Strong Start for Data Carddass

Maji Ranger(Power Rangers)

Masked Rider Hibiki
Disk Animals▶Apparel, Sundries StrongDragon Ball Z series
Started March 2005
2ndSeries
ＮＡＲＵＴＯ also starts off strong

Pretty CureMax Heart

4,750 machines installed(as of Oct. 2005)

Mushiking

Cinnamoroll

Topics for 2nd Half
☆Strengthen product competitiveness ofBoys’ Characters☆Secure profit overseas

5（Billions of Yen）
100

Net Sales
８５.０８２.３

７８.０（Billions of Yen）
108８４.０

６.７

680.082.080.1

76.1

6.8

1.9

’03/3

’04/3

’05/3

BANDAI

NorthAmerica

Japan％ 90Japan

NorthAmerica

APR

MAYJUN

JUL

AUG

SEP

95.4

89.1

94.6

101.3

95.7

97.7

MAR

APR

MAY

JUN

JUL

AUG

100.2

94.3

97.8

98.3

97.8

97.9

（Billions of Yen）
150

111.2
100
59.0

’03/3

vs. prior year % (domestic):
95.7%

95

129.0

72.4

75.5

0.0

-0.3

’04/3

’05/3

’06/3
Forecast

Topics for 2nd Half
☆Development of newtypes of location
businesses☆ Invigorate same store
sales with installationof new AM
machines, etc.
☆Further progress in highquality services and low
cost operations

Net Sales

124.4

4.7

＊Periods prior to 05/3 are combined results of BANDAI and NAMCO

NAMCO same store sales vs. prior year (%)

100-0.1-2’06/3
Forecast

NAMCO▶Same store sales
105

4.0

2.9

2.2

-0.1

４.７

6.0

4.7

200

５.７

４.６

450

Operating Income（Billions of Yen）

147.4

Operating Income

2520

88.9

Spa Resort
Liberty

15

18.4

20.5

19.8

10.3

13.7

8.0

6.8

5.2

’03/3

’04/3

’05/3

14.5

20.7
13.0

1050
52.1
0’03/3BANDAI

52.0

’04/3

53.4’05/3

NAMCO

58.5

’06/3
Forecast

50

7.6

’06/3
Forecast＊Periods prior to 05/3 are combined results of BANDAI and NAMCO▶Domestic Sales of AM machines post strong 1st half results▶NAMCO mobile phone
content subscribers top
1 million in Japan

Topics for 2nd Half
☆Earn higher results from installation ofnew machines⇒synergies with AM facility operations

The Idolmaster

Medal no Tatsujin

Mario Kart GP

Tekken 5

Taiko noTatsujin

Together with Bandai Networks
subscribers, total subscriptions
amount to more than 5 million

6Home Videogame Software
Despite severe market conditions, the following titles contributed to strong sales

Super Robot
Wars αTamagotchi

Dragon Ball ZSparking!

Topics for 2nd Half

Ridge Racers(US/Europe)☆Increased emphasis on multiplatform strategy☆High expectations for 2nd half
releases of franchise titles

Support next generation hardware systems

Soul Caliber III
for PS2

Mobile Suit
Gundam SEEDfor PS2

Tales of the Abyss
for PS2（Billions of Yen）
15

Net Sales

Ridge Racer 6 forXbox 360（Billions of Yen）

12.0
10.2
10Tekken 5(Europe)

2.1
2

10.1

Operating Income

1.9

2.0
1.6

8.5
1500’03/3

’04/3

’05/3

’06/3
Forecast

’03/3

’04/3

’05/3

’06/3
Forecast

BANDAI

Topics for 2nd Half

▶Game Contents Strong☆Effective implementation ofinter-group resources

Subscribers at 1.48 million at the end ofSeptember 2005
⇒ An increase of 35% year on year

GNO MobileiceServ interWsbegin 06
20

Various content implementation thatmatch diversified consumer needs▶Strengthen Solutions Business⇒ ３D engine contributed to results

Tamagotchi(for mobile phones)

Joint developmentwith NAMCO

SD Gundam RPGfor i-mode

7

（Billions of Yen）
50

４０.２40Net Sales

４２.６

４４.４10.710.5

10.3（Billions of Yen）

Operating Income

10４０.７5.78630

５.７

４.２

0.1

５.４

５.９
0.1

420

35.0

33.8

31.8

29.8

2

1000-2

’03/3

’04/3

BANDAI

’05/3

’06/3
Forecast

NAMCO

4.7

5.5

5.2

’04/3

’05/3

-0.4

’03/3

-0.3

Topics☆Business Expansion

Mobile Suit Gundam Series Strong⇒Group Synergy Effect increases
income rate

Expansion of contents businessfrom Visual content to Audio, as
well as text content

Topics☆Area Expansion
Mobile Suit Z Gundam-A New Translation-

TAKESHIS’In theaters in Japan

External sales(Billions of Yen)

80

40’06/3
Forecast＊Periods prior to 05/3 are combined results of BANDAI and NAMCO▶ Gundam Displays Group Synergy Effect

60

6.3

Operating Income (loss)

1064.7

61.1

5.7

52.0
33.3

(Billions of Yen)

Expansion overseas based on‘Made in Japan’ high valueadded business model

46.5

37.8
31.3

27.5

205

5.2

1.9
3.7

0

3.6

- 0.5

0.8

1.6

2.1

1.8
-1.0-2.7
27.7

26.9

20.7

19.0

03/304/305/306/3
Forecast

0-5

BANDAI

NAMCO03/304/305/306/3
Forecast＊Periods prior to 05/3 are combined results of BANDAI and NAMCO▶1st Half Results
Tamagotchi series
posts very strong
results

Ridge Racer for
PSP posts strong
results

Efficiency improvement
measures have positive impact
on income rate

⇒However, the results fell short of the initial plan due to more emphasis onndthe 2 half of the FY as well as severe market conditions and competitions

8Topics☆Enhancement of portfolio function
Organization from January 2006
Visual andMusic Content
BandaiEntertainment Inc.

Toys & Hobby
Bandai America Inc.

Holding Company
NAMCO BANDAI
Holdings (USA) Inc.

NetworkNamco Networks
America Inc.

Game Contents
Namco BandaiGames America Inc.
Namco America Inc.

Amusement Facility
Namco
Cybertainment Inc.

Fusion Plans and Projects within the New GroupOver 2000 entries
Announcement of winners/inductees inJanuary, 2006
⇒ Realization of Ideas∞
BANDAI HR
development training

Inter-company departments with available
openings posted and start transfer process
based on entries
November 2005 Listing
December 2005 Decision
April 2006 Transfer

・Environmental Project
NAMCO HRdevelopment training

・BANDAI NAMCO Group Rights Project・BANDAI NAMCO Group

February thru July, 2006

Intellectual Property Project9Business Synergy

Toys & Hobby ×Game Contents

Revival of past hit arcade gameswith “Let’s TV Play”
・Dragon Buster
・GAPLUS・Xevious・MAPPY

Visual×Game Contents

Arrange NAMCO game contents tovisual content
・Idol Master, etc.
Idle Master

Let’s TV Play Series

Toys & Hobby ×Game Contents
Plastic models of futuristic
jets from ‘Ace Combat Zero’Schedusale led forSprin
2006 gToys & Hobby ×Game Contents
Production and sale of figure toys
based on NAMCO game content

Schedusale led for
W inte2006 r・Soul Caliber III・Tekken

×
Simulated images

Business Synergy

Toys & Hobby ×

Game Contents×Locations

Development ofAmusement Machines“Mobile Suit Gundam
Senjo no Kizuna”

Tamagotchi Café（tentative）
Installation of ‘Deka-tamagotchi’ at NAMCO
facilities ⇒Over 200 facilities
Toys & Hobby ×LocationsGame Contents×Network

Development of Mobile contents
Installation of Data Carddass
units at NAMCO locations⇒160 locations, 260 units

Offer SD Gundam RPG
for i-mode services
this winter

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Toys & Hobby
VisualApparel
Broadband
GameContents
MobileAmusement
Facility

URL： www.bandainamco.co.jp/
Warning concerning forward-looking statements:
This report contains figures that are based on the information
currently available to management and estimates involving
uncertain factors thought likely to have an effect on future results.
©BANDAI・WiZ 2004, ©2005 TV ASAHI・TOEI AG・TOEI, ©2005 ISHIMORI PRO・TV ASAHI・ＡＤＫ・TOEI, ©BIRD STUDIO／SHUEISHA・TOEI ANIMATION ©ＢＡＮＤＡＩ ２００５,©ABC・TOEI ANIMATION, ©2002, 2005 SANRIO CO.,LTD.(K), ©ムシキングプロジェクト・テレビ東京, ©Kubooka Toshiyuki ©2003 NAMCO LTD., ©2005 NAMCO LTD.,© 2005 Nintendo ©2005 NAMCO LTD., ALL RIGHTS RESERVED.MARIOKART is a registered trademark of Nintendo.Licensed by NINTENDO©2005 NAMCO LTD., ©葦プロ ⓒＧＡＩＮＡＸ／Ｐｒｏｊｅｃｔ Ｅｖａ．・テレビ東京 © １９９７ ＧＡＩＮＡＸ／ＥＶＡ製作委員会 ©サンライズ© SEGA, 1998, 2003 CHARACTERS © SEGA/AUTOMUSS © AUTOMUSS CHARACTER DESIGN：KATOKI HAJIME ©創通エージェンシー・サンライズ©創通エージェンシー・サンライズ・毎日放送 ©ダイナミック企画 ©東映 ©東映アニメーション ©東北新社 ©BANDAI・VICTOR・GAINAX ©ビックウエスト ©BANPRESTO 2005
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