FY2019.3 1st Half Results

First Half Resultsbillion yen
FY 2018.3
1st HalfResults

FY 2019.3
1st Half Forecast(as of Aug. 2018)

FY 2019.3
1st Half Results

Net Sales

308.8

306.0

334.6

+25.8+28.6

Operating Profit

34.9

29.0

43.9

+9.0+14.9

Recurring Profit

35.6

29.5

45.8

+10.2

+16.3

Profit Attributable toOwners of Parent

28.1

22.0

34.1

+6.0+12.1

Capital Investments

44.6

10.5

10.7

-33.9+0.2

Depreciation

10.5

11.0

9.3

-1.2

-1.7

Advertising Expenses

16.7

18.0

18.5

+1.8+0.5Personnel Expenses

26.8

26.0

28.4

+1.6+2.4

Vs. previous Vs. previous
year’s results
forecast

1st Half Results by Segment
billion yen
FY 2018.3
1st HalfResults

FY 2019.3
1st HalfForecast(as of Aug. 2018)

FY 2019.3
1st HalfResults

Vs. previous
year’sresults

Vs.
previousforecast

Segment sales

98.1

110.0

112.3

+14.2

+2.3

Segment profit

5.5

7.0

12.8

+7.3

+5.8

Segment sales

150.9

140.0

154.6

+3.7+14.6

Segment profit

24.1

17.0

23.4

-0.7+6.4

Segment sales

44.6

46.0

46.0+1.4±0Segment profit

2.1

2.0

2.0-0.1±0Visual and Music Segment sales
Production
Segment profit

16.3

19.0

20.5+4.2+1.5

2.6

3.0

4.7

+2.1+1.7

Segment sales

6.8

7.0

9.3

+2.5+2.3

Segment profit

2.4

2.0

2.5+0.1+0.5

Segment sales

12.8

15.0

14.2

+1.4

-0.8

Segment profit

0.2

0.5

0.5

+0.3

±0

Segment sales

-21.0

-31.0

-22.4

-1.4+8.6

Segment profit-2.1-2.5-2.1+0.4

Net sales

308.8

306.0

334.6

±0+25.8+28.6

Operating profit

34.9

29.0

43.9

+9.0+14.9

Toys and Hobby
NetworkEntertainmentRealEntertainment

IP Creation
OtherCorporate andElimination
Consolidated

1st Half Results by Segment
Toys and Hobby
Japan: Favorable performances by plastic models, figures for the mature fan base,card games, etc.
Smooth progress with established IP, such as KAMEN RIDER and PRETTY CURE!
Asia: Favorable performance by Gundam plastic models, Ultraman products popular in China
Europe and the Americas: DRAGON BALL trading card games and products forthe mature fan base were popularNetwork Entertainment
Network content:

Conditions remained favorable, centered on existing key titles that
had annual events
New titles also got off to good starts
New platform start-ups generated expenses

Home video games: Multiple new titles became smash hits, such as
Mobile Suit Gundam BATTLE OPERATION 2
Repeat sales and sales of titles from other companies also madea contribution

1st Half Results by Segment
Real Entertainment
Game machines: Favorable results with new Wangan Midnight title
Facilities: New-format facilities, such as VS PARK, were favorable, but existing facilities
in Japan did not record growth

Visual and Music Production
Packaged content: Favorable results recorded by high-value-added, high-priced products
Live events: Held large-scale events, such as Love Live! Sunshine!! and IDOLiSH7 events

IP Creation
Worked to create new products and foster interest in key IP series, such asMobile Suit Gundam series and Love Live! Sunshine!!

Initial Plan for Fiscal Yearbillion yen
FY 2018.3
Results

FY 2019.3
Initial plan(as of May 2018)

Vs.
previousforecast

Net Sales

678.3

650.0

-28.3

Operating Profit

75.0

60.0

-15.0

Recurring Profit

75.3

61.0

-14.3

Profit Attributable toOwners of Parent

The initial plan will notbe revised at this point

54.1

43.0-11.1

Capital Investments

54.8

22.0-32.8

It will be carefully
reviewed in the future

Depreciation

23.5

24.0+0.5

Advertising Expenses

39.7

42.0+2.3

Personnel Expenses

56.5

54.5

-2.0

Initial Plan for Fiscal Yearbillion yen
FY 2018.3
Results

Vs.
previous(as of May 2018) forecast

Segment sales

222.4

230.0

+7.6

Segment profit

14.4

15.0+0.6

Segment sales

326.5

300.0

-26.5

Segment profit

50.1

35.0-15.1

Segment sales

90.5

100.0+9.5

Segment profit

3.1

3.5+0.4

Visual and Music Segment sales
Production
Segment profit

40.6

40.0-0.6

6.6

6.0-0.6

Segment sales

16.9

15.0-1.9

Segment profit

5.2

4.5-0.7

Segment sales

27.6

30.0+2.4

Segment profit

0.7

1.0+0.3

Segment sales-46.4-65.0-18.6

Segment profit

-5.4

-5.0

+0.4

Net sales

678.3

650.0-28.3

Operating profit

75.0

60.0

-15.0

Toys and Hobby
NetworkEntertainmentRealEntertainment

IP Creation
Other
Corporate andElimination
Consolidated

FY 2019.3
Initial plan

The initial plan will not
be revised at this point

It will be carefully
reviewed in the future

Factors Affecting Full-Year Outlook
Variable factors in businesses
・ Trends in the coming Christmas / New Year selling season, the largest
selling season of the year for the Toys and Hobby business・ Plans for multiple new home video game titles in 3rd quarter onward
・ Changes in operating environment for digital content, which is currently
recording favorable results
・ Careful review of title lineup for visual and music packaged productsWill reexamine full-year outlook

Trends by Business

Trends by Business

Toys and Hobby

Strengthening roll-outs for the mature fan base in Japan and overseas
Gundam Plastic Model
THE GUNDAM BASE SHANGHAI

Favorable results,
centered onJapan and Asia

Collectable items
Expanding brandrecognition inJapan and overseas
Full-blown entry toNorth America throughestablishment of new company

First flagship shop
in inland China
Opened in August
2018

Card Products
Japan: DATA CARDDASS favorable
North America: Trading card games popularTrends by Business

Toys and Hobby

Mainstay products for children in Japan + launch of new products
Established IPs

New KAMEN RIDER
off to a favorable start

Launch of new Tamagotchi
modelLaunch of new card gameproducts using AItechnologies

Toy-related items

Successive launches of toy-related items, such as apparel, capsule toys,cosmetics, and confectionery / foods
Cosmetics:
La Rose de Versailles
Liquid Eyeliner

Smartphone-linked
shoes: UNLIMITIV

Capsule toys:
Roly Poly Bug

Food:CharafulTrends by BusinessNetwork Entertainment

Continued favorable performances by key titles & taking on thechallenge of providing new value
Network content: Existing key titles
Maintaining popularity through operations that reflect effective event
implementation and data analysis

Network content: New titlesLaunches of titles witha focus on quality
Group collaboration
for new IP

enza

Moving forward, start fullscale collaboration withGroup businesses
Dragonball Dragon Potato(Bucchigiri Match Ver.)Trends by BusinessNetwork Entertainment

Launches of major titles concentrated in 2nd half, strengthening
e-sports initiatives
Home Video Games
Launch major worldwide titles in 2nd half

SOULCALIBUR VI

ACE COMBAT7

GOD EATER3JUMP FORCE

e-Sports

Strengthen initiatives with aim ofexpanding base of fans and users
Tokyo Game Show: TEKKEN Pro Championships —Play-Off Match to Determine the Japan
RepresentativeTrends by Business

Real Entertainment

In addition to the launch of new machines, start to roll-out new venues
Facilities

Amusement machines

Favorable resultswith new-format
facilities

Start of operation ofMobile Suit Gundam: Extreme Vs. 2

Amusement facilities: Targeting the busy yearend/New Year’s sales period, roll out a variety
of initiatives, such as limited-edition prizes

Retail-tainment mall
Start of Hamleys roll-out in JapanBANDAI NAMCO’s hospitality
×Hamleys’ worldview

Trends by Business Visual and Music Production
Continued roll-out of business collaborations, targeting IP creationand development
Strengthening IP creation capabilities

Future high-expectation titles- Strengthening collaboration among visual,music, and live
- Strengthening development system at Actas+αThat Time I Got Reincarnatedas a Slime
October: Start of animation
broadcast

The Magnificent KOTOBUKI
January: Start of animation
broadcast

Major live events

IDOLiSH7 1st LIVEMetLife DomeLove Live! Sunshine!! Aqours 4th LoveLive!
Tokyo DomeTrends by Business

IP Creation

Simultaneously rolling out newly created IP and key innovations
Strengthening IP creation capabilities

Investment in Sublimation Inc., which has
high-quality computer graphics
product capabilities⇒ Strengthening IP creation capabilities

High-expectation products in the 2nd half

DOUBLE DECKER!
Theatrical version
Doug & Kirill
Love Live! Sunshine!!

Mobile Suit Gundam
Advancing strategies, targeting
theatrical product openings&worldwide roll-outs

Progress with main strategies
Strengthening IP axis strategy

BANDAI NAMCO Content Fund
— Groupwide investment— Collaboration with external partners— Full-scale operation from FY2020.3— Investment limit: ¥5.0 billion

Make full-blown entry into Chinese market

In process of building organizational foundation— Also preparing for roll-outs in businesses
other than Toys and Hobby and Network Entertainment

Mid-term VisionNote on Projections
This document contains forward-looking statements and information related to the BANDAI
NAMCO Group that are based on our knowledge as well as various assumptions made on thebasis of information currently available. The words “forecast,” “plan,” “target,” “estimation,”“projection,” “intend,” “will” and similar expressions, as related to the Group, are intended toidentify forward looking statements and information. Actual results could differ materially fromthose projected in such forward-looking statements.

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