BANDAI NAMCO Group
Information Meeting
Fiscal Year Ending March 2020
2nd Quarter Result Presentation

FY2020.3 1st Half Results

First Half Resultsbillion yen
FY 2019.3
1st HalfResults

FY 2020.3
1st Half Forecast(as of Aug. 2019)

FY 2020.3
1st Half Results

Vs. previous
year’s results

Vs. previousforecast

Net Sales

334.6

340.0

349.3

+14.7+9.3

Operating Profit

43.9

40.0

47.9

+4.0+7.9

Recurring Profit

45.8

41.0

48.7+2.9+7.7

Profit Attributable toOwners of Parent34.1

29.0

34.6+0.5+5.6

Capital Investments

10.7

11.013.3+2.6+2.3

Depreciation

9.3

10.0

9.7

+0.4

-0.3

Advertising Expenses

18.5

21.0

20.0+1.5-1.0

Personnel Expenses

28.4

29.5

30.9+2.5+1.4

1st Half Results by Segment
billion yen

Toys and Hobby
NetworkEntertainment
RealEntertainment
Visual and Music
Production
IP Creation
OtherElimination andCorporate
Consolidated

Segment sales

FY 2019.3
1st HalfResults
112.3

FY 2020.3
1st Half Forecast(as of Aug. 2019)
120.0

Segment profit

12.8

Segment sales

FY 2020.3
1st Half Results

Vs. previous
year’s results

Vs. previousforecast

128.0+15.7+8.014.0

17.6

+4.8

+3.6

154.6

150.0

153.0

-1.6

+3.0

Segment profit

23.4

21.0

24.9

+1.5

+3.9

Segment sales

46.0

50.0

46.8

+0.8

-3.2

Segment profit

2.0

1.5

1.5

-0.5

Segment sales

20.5

20.0

20.7

+0.2

±0+0.7

Segment profit

4.7

3.5

3.8

-0.9

+0.3

Segment sales

9.3

8.0

7.8

-1.5

-0.2

Segment profit

2.5

2.5

2.2

-0.3

-0.3

Segment sales

14.2

14.0

15.3

+1.1

+1.3

Segment profit

0.5

0.5

0.9

+0.4

+0.4

Segment sales

-22.4

-22.0

-22.5

Segment profit

-2.1

-3.0

-3.1

Net sales

334.6

340.0

349.3

+14.7

+9.3

Operating profit

43.9

40.0

47.9

+4.0

+7.9

Initial Plan for Fiscal Year
Variable factors in businesses
・ Influence of dramatic changes in the business environment on market and user trends
・ Trends in the year-end and New Year sales period in the Toys and Hobby business・ Plans to launch major home video game titles in the 4th quarter・ Investment to address changes

The initial plan will not be revised at this point
It will be carefully reviewed in the future
FY 2020.3
Initial plan

FY 2019.3
Results(as of May 2019)billion yenVs.
previousforecast

Net sales

732.3

720.0

-12.3

Operating profit

84.0

70.0

-14.0

Trends by BusinessResults and Current Trends in Each Business

Toys and Hobby

Continued favorable results in Japanese and overseas markets for the mature fan base
1st half▸Continued favorable results for products for the mature fan base inJapan and Asia
▸Full-scale operation of new company in North America▸New KAMEN RIDER off to a favorable start and solid results withcore established IP▸Toy-related items remain popular

Gundam plastic models
・Collaborating with Mobile Suit Gundam 40thanniversary animations
・Creating buzz with events in Japan andoverseas

Figures and prizes
・Holding real events in Japan and overseas, e-commerce site events
・Rolling out products in collaboration with movies
for ONE PIECE, Pokémon, etc.

Results and Current Trends in Each Business
Introduction of core items for children and new IP
Established IP・Successive introduction of items for the Christmas sales
period・China: Bolstering roll-outs for KAMEN RIDER andUltramanCards
Nurturing ZENONZARD IP with app, cards, and anime distribution

Toys and Hobby

Results and Current Trends in Each BusinessNetwork Entertainment

Stable popularity of core titles and roll-outs for new platforms
1st half▸NE: Successful event for 300 million downloads of DOKKAN BATTLE
Continued popularity for multiple other titles due toanniversary events, Treasure Cruise initiatives linked with theONE PIECE film, etc.
New titles: Favorable results with GUNDAM BREAKER
MOBILE▸CE: Release of CODE VEIN at end of 2nd quarter
Favorable repeat sales

Network Content・Titles planned for future introduction ・ Business alliance with Crunchyroll
NARUTO X BORUTO NINJA TRIBES・Joining Apple Arcade
PAC-MAN PARTY ROYALENew Sword Art Online gameResults and Current Trends in Each BusinessNetwork Entertainment

In 2nd half, taking on the challenge of worldwide titles and new fields
Home Video Games▸Fostering longer product lives by focusing on quality and strengthening fan communications▸In addition to KAKAROT in the 4th quarter, currently developing worldwide titles▸Expanding roll-outs of titles originating overseas

BLESS UNLEASHED

New entertainment fields
・Holding BANDAI NAMCOEntertainment festival・Sports entertainment
Professional basketball team management

Results and Current Trends in Each Business

Real Entertainment

Prize sales favorable, launch of new title machines planned for 2nd half
1st half▸ Facilities: Favorable results at existing facilities in Japan(Film-related prizes, etc., favorable)
2nd quarter MAZARIA opening▸Amusement machines: Favorable utilization of Mobile Suit Gundam:
Extreme Vs. 2, no launches of major newproducts in 1st half

Facilities
・ Expanding roll-outs of NAMCO-only prizes
・ Expanding roll-outs of new business format
facilities that leverage technologies and know-how

Amusement machines
Planning launches of newproducts in 2nd half

Results and Current Trends in Each Business

Visual and Music Production

Continued roll-out of business collaborations, targeting IP creation anddevelopment
1st half▸Core IP maintains popularity, but YoY difference in packaged
product lineup has an influence▸IP that is also popular overseas recording favorable results▸Investment in studio MOTHER to strengthen IP creation
capabilities
ONE PUNCH MAN That Time I Got Reincarnated as a Slime

New titles

New initiatives in IP creation
Official idol unitRifling4 currently active

Collaboration among
anime, game app, andfutsal events
Start of new projects

Love Live! 9th Anniversary
Blu-ray BOX

Rifle is Beautiful

FUTSAL BOYS!!!!!

Results and Current Trends in Each BusinessI P Creation

New IP creation and simultaneous roll-out of core IP innovations
1st half

Stepping up IP roll-outs▸Release of new Gundam animation andlaunch of official YouTube channel

Capital participation in echoes Inc.
New IP creation
Invigorating existing IP
Strengthening ability to communicate
the appeal of IP

Number of channel subscribers surpassed 260,000

MOBILE SUIT GUNDAM
Rolling-out multiple new visual
products&Advancing worldwide strategy

Progress with main strategies of Mid-term Plan
IP AXIS STRATEGYBoost capability to create IP (structural changes)- Initiatives for new IP creation
Implementing Groupwide initiatives through strategic investment,
BANDAI NAMCO Content Fund, etc.

- Strengthening roll-outs of existing core IP (further bolstering strengths)
Advancing worldwide roll-outs of Japanese IP- SOTSU CO., LTD., becoming wholly owned subsidiary
Accelerating worldwide Gundam roll-outs through further unification

REGION STRATEGY

Make full-blown entry into Chinese market- Start of activities by each Unit company established in China- Establishment of joint venture company with Shueisha Inc.
Rolling out products aligned with the preferences of fans in China

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

©創通・サンライズ・テレビ東京 ©2019⽯森プロ・テレビ朝⽇・ADK EM・東映 ©創通・サンライズ ©⽯森プロ・東映 © 1984 BIGWEST ©BANDAI・STRAIGHT EDGE
©藤⼦プロ・⼩学館・テレビ朝⽇・シンエイ・ADK ©HIKAKIN / UUUM ©バードスタジオ／集英社・フジテレビ・東映アニメーション ©BANDAI NAMCO Entertainment Inc.
©尾⽥栄⼀郎／集英社・フジテレビ・東映アニメーション©BANDAI NAMCO Entertainment Inc. ©創通・サンライズ ©創通・サンライズ・MBS ©創通・サンライズ・テレビ東京©BANDAI NAMCO Entertainment Inc. ©BANDAI NAMCO Entertainment Inc. ©2017 川原 礫／ＫＡＤＯＫＡＷＡ アスキー・メディアワークス／SAO‐A Project©BANDAI NAMCO Entertainment Inc. Developed by WFS ©BANDAI NAMCO Entertainment Inc. BLESS Unleashed™ & ©2019 Round 8 Studio & NEOWIZ. All Rights Reserved.
©2018 BANDAI NAMCO Entertainment America Inc. All Rights Reserved. The BANDAI NAMCO logo is a trademark of BANDAI NAMCO Holdings Inc. All Rights Reserved.
©バードスタジオ／集英社・フジテレビ・東映アニメーション ©BANDAI NAMCO Entertainment Inc. ©BANDAI NAMCO Entertainment Inc.
©荒⽊⾶呂彦&LUCKY LAND COMMUNICATIONS/集英社・ジョジョの奇妙な冒険SC製作委員会 © LUCKY LAND COMMUNICATIONS/集英社・ジョジョの奇妙な冒険DU製作委員会©LUCKY LAND COMMUNICATIONS/集英社・ジョジョの奇妙な冒険GW製作委員会 ©BANDAI NAMCO Amusement Inc. ©ONE・村⽥雄介／集英社・ヒーロー協会本部©川上泰樹・伏瀬・講談社／転スラ製作委員会 ©2013 プロジェクトラブライブ︕ ©2017 プロジェクトラブライブ︕サンシャイン!! ©SQUARE ENIX CO.,LTD. ©KLabGames©bushiroad All Rights Reserved. ©サルミアッキ／集英社・千⿃⾼校射撃部 ©FUTSAL BOYS!!!!! ORIGINAL WORK ©創通・サンライズ