Results in FY2015.3
Review of Current Mid-term Plan:
April 2012 to March 2015
Overview of New Mid-term Plan:
April 2015 to March 2018
• Direction of new Mid-term Plan
• New Mid-term Vision• New organizational framework• Three-year numerical plan
• Focusing strategies• Three-year numerical targets by segment

Capital Policy

billion yen
FY2014.3
First ninemonths

FY2015.3

Full-year

First ninemonthsYOY

Full-year
forecast

First ninemonthsFull-year

Net Sales

368.1

507.6

409.1

520.0+41.0+12.4

Operating Income

42.7

44.6

47.6

50.0

+4.9+5.4Recurring Income

45.6

47.4

50.2

52.0+4.6+4.6

Net Income

29.7

25.0

31.9

30.0+2.2+5.0

Capital Investments

16.8

23.4

15.4

18.0

-1.4-5.4

Depreciation

15.0

21.7

16.7

23.0

+1.7

+1.3

R&D Investments

36.9

51.8

38.4

48.0+1.5-3.8

Advertising
Expenses

24.3

38.0

27.8

38.0+3.5±0

Personnel Expenses

34.6

47.7

36.7

48.0

+2.1

0.3

billion yen

Top row: Segment sales/Bottom row: Segment income
FY2014.3
First ninemonths
Toys and Hobby

ContentAmusement Facility

OtherCorporate andElimination
Consolidated

136.5
11.6
197.7
32.5
43.0
-0.6
20.3
1.5
-29.6
-2.2
368.1
42.7

FY2015.3

YOY

Full-year

First ninemonthsFull-year
forecast

186.3
10.5
278.4
37.2
58.2
-0.8
27.3
1.6
-42.6
-3.8
507.6
44.6

179.1
19.4
195.9
28.3
41.0
-0.8
20.7
1.5
-27.7
-0.8
409.1
47.6

210.0
16.0
270.0
35.0
58.0
-0.5
25.0
1.5
-43.0
-2.0
520.0
50.0

First ninemonths

+42.6
+7.8
-1.8
-4.2
-2.0
-0.2
+0.4
±0+1.9+1.4+41.0+4.9Full-year+23.7+5.5-8.4-2.2-0.2+0.3-2.3
-0.1
+0.4
+1.8
+12.4+5.4

Top row: Segment sales/Bottom row: Segment income
FY2014.3

billion yen

FY2015.3
First ninemonths

YOY

Full-year
forecast

First ninemonths

First nine months

Full-year

136.5

186.3

179.1

210.0

+42.6

+23.7

11.6

10.5

19.4

16.0+7.8+5.5

Toys and Japan: Favorable results by Yokai Watch and by established IP such as
Hobby
Mobile Suit Gundam

Full-year

U.S.&EU: Contributions made by Power Rangers and BIG HERO 6,
but challenging conditions overall
Asia: Favorable, centered on plastic models and collectable productsContentAmusement
Facility

197.7

278.4

195.9

270.0

-1.8-8.4

32.5

37.2

28.3

35.0

-4.2-2.2

・Continued favorable results by key titles in Network Content
・Favorable coordinated development between visual products and music,
with IP as an axis (Love Live! School idol project, etc.)

43.0

58.2

41.0

58.0

-2.0

-0.2

-0.6

-0.8

-0.8

-0.5

-0.2

+0.3

Initiatives implemented after moving to the new system are starting to produce results,
but overall conditions are challenging.

billion yen

FY2015.3
forecast

FY2014.3

YOYNet Sales

507.6

520.0+12.4

Operating Income

44.6

50.0+5.4

Recurring Income

47.4

52.0+4.6

Net Income

25.0

30.0

+5.0

Dividends

Maintain a base level of annual dividend payments of ¥24 per shareand a consolidated dividend payout ratio of 30%
Achieve current Mid-term plan
+ BANDAI NAMCO 10-year anniversary

Interim dividend: ¥12 Year-end
dividend: ¥40

Total:¥52

billion yen
600
Net sales

Operating income

500

50400

40300

30200

20100

100020062007200820092010

2011201220132014forecast

Restart Plan

Current mid-term plan

IP axis strategy has become a pillar for the GroupCorporate
Philosophy

Dreams, Fun and Inspiration
To become the Leading Innovator in Global Entertainment

Mid-term
VisionImplementing growthstrategy

Strive to achieve
record profit

Toys and Hobby

Focusing Strategies

Business
Area
Strategies

Content

Basic Business Area
Japan

Toys and Hobby【Japan】

Profit Recovering
Area

Toys and Hobby【U.S.&EU】

Video Game
Software【Worldwide】

Toys and Hobby【Asia】

Arcade Games【Asia】

U.S.&EUNew Growth Area
Asia
Functional
Strategies

Enhance our business model tomaximize our IP value

Groupwide Network Strategy

Content【Japan】
Arcade games/NE/Visual&MusicAM Facility
AM Facility【Japan】

AM Facility【Asia】＊NE：Network＊AM：Amusement

Human Resources Strategy

Business growth in Japan
Create and foster original IP

Create new business pillars

Network content
Toys and hobby business: Expanding range ofcustomers and implementing business modelthat extends across operations

Live events

Achieving profit recovery and growth in home
video game software and in visualand music content through the IP axis strategy

Establishingdominant No. 1
positionFavorable growth in Asia
Business development initiatives linked with Japan+ initiatives carefully aligned with regional characteristics

Delay in reforming business in the Americas and Europe
billion yen

Sales in theAmericas and Europe

Operating income in theAmericas and Europe

Profit recovery is only at the halfway point

100
50

10
500
2006

2007

2008

2009

2010

2011

2012

2013

2014
forecast-5

Aiming for recovery under
the new Mid-term Plan

Domestic amusement facilities face challenging conditions
Challenging conditions due to changes in market environment,
increase in consumption tax, etc.
Sales
at existing facilities, YOY
105

Through organizational restructuring,
strengthened links with arcade gamemachines and prizes and reevaluatedprofit structure

100％ 95908520112012

201320142)Vision
Results of strategy
implementation

1)Direction of new
Mid-term plan
5)Focusing Strategies

3)Three-year
numerical plan

For implementation ofstrategies4)New organizationalframework
Explained in numerical orderConsistently achieve
Sales of ¥500 billion
Operating income of ¥50 billion
Going Concern
Requirements for advancing to the next stage

Further leveraging BANDAI
NAMCO’s strengths
Targeting high potential areas

IP axis strategy

AsiaMission

Dreams, Fun andInspiration
VisionTo become the leading
Innovator in Global Entertainment

Empower and innovate
business model

Grow into a global
company

Accelerate evolution
in IP axis strategy

Numerical forecast for
FY2015.3

Numerical plan for
FY2018.3

Net Sales¥520 billion¥600 billion

OperatingIncome¥50 billion¥60 billion

10%

More than10%

ROEJune 2015 ～Toys and Hobby SBU
Core company: BANDAI

Network Entertainment SBU
Core Company: BANDAI NAMCO Entertainment(formerly BANDAI NAMCO Games)

Visual and Music Production SBUCore Company: BANDAI VISUAL

Affiliated Business Companies

Corporate
Philosophy

Dreams, Fun and Inspiration
To become the Leading Innovator in Global Entertainment

Mid-term
VisionBusinessRegion

Focusing
Strategies

Accelerate evolution in IP axis strategy Through IP axis strategy, Gain momentum
Cultivate Original
Expand Target
in global markets
Group IPs

MarketExpand in Asia and Japan

Enlarge New IP
Businesses

Collaborate across
SBUs

Renew in Americas and Europe

Function
Deepen the current
business model

Empower and innovate business modelthrough BANDAI NAMCO market advantages
Create and foster thenew IP business

Implement IP axis strategy inglobal market

Accelerate evolution inIP axis strategy

IP fostering/creation/acquisition

Cultivate OriginalGroup IPs

Expand Target
MarketEnlarge New IP
Businesses

Collaborate across
SBUs

Through IP axis strategy,
Gain momentum in globalmarkets
Expand in Asia and Japan

Strengthening
collaboration
among businesses
and regions

Create and foster the new IP business
Deepen the current IP business

Renew in Americas and Europe

Building foundation for IP axis strategy

Empower and innovate business modelthrough BANDAI NAMCO market advantages
Deepen the current
business model

Create and foster thenew IP business

Implement IP axis strategy inglobal market

BusinessCultivate Original Group IPs

Expand Target Market

Enlarge New IP Businesses

Collaborate across SBUs

Diagram of IP axis strategy

Enlarge New IPBusinesses
Expand Target
MarketNewBusinesses

Collaborate across
SBUs

Cultivate OriginalGroup IPs

Creating IP

Maximizing IP value

Business development aligned with customer needs / market environment

IP：Intellectual Property（characters, content, etc.）

Business

Cultivate Original Group IPs

Expand Target Market

Enlarge New IP Businesses

Collaborate across SBUs

Cultivate Original Group IPs
Strengthening creation of IP that originates in products and services+strategic initiatives
Increase speed, strengthen originality
Spin off part of Sunrise

Strengthening initiatives for IP from Japan,
the Americas and Europe
Strengthening relationships with media licensors in theAmericas and Europe through strategic humanresources

Older customers

Pursuit ofquality

Ｃ Strategic, aggressive initiatives
・In-house recruiting system

Kids / families
Providing the ideal
products and services
at the ideal time・Collaboration with partner companies
・Investing in IP¥20.0 billion additional
investment over three years

Business

Enlarge New IP Businesses
Strengthening production business
Strengthening IP event business(Live events, live viewings, sales of related
goods, etc.)

Cultivate Original Group IPs

Expand Target Market

Enlarge New IP Businesses

Collaborate across SBUs

Expand Target Market
Making approaches with “IP + category”
initiatives aimed at target customer groups
Example) Women in their 20s and older

Ｃ
Cosmetics

Aggressive advance intoＣoverseas markets

Collaborate across SBUs
Drawing on BANDAI NAMCO’s distinctive
capabilities to strengthen collaboration amongbusinesses

Taking on the challenge of new businesses
Implementing amusement facility initiatives
through strengthened Group collaboration
Strengthening internal Group collaboration and considering
new business formats with the addition of new services

Example）

ＣRapid growth throughhorizontal development invarious businesses fromthe point of launchRegionRenew inAmericas andEurope
Record-high sales
Americas：52.3 billion yen (FY2008.3）
Europe：52.7 billion yen（FY2010.3）
Asia：25.4 billion yen（FY2015.3 forecast）

Expand in Asiaand Japan

Aiming for growth in global markets through worldwide
expansion of the IP axis strategy

Expand in Asia and Japan

RegionRenew in Americas and Europe

Expand in Asia and Japan
Japan: Continue strategy of aiming for dominant No. 1 position
Asia: Collaboration with Japan + detailed product promotion in line with
regional characteristics
Sales target for Asia in FY2018.3

Sales in Asia in FY2015.3
Major initiatives under current
Mid-term PlanAnimation video distribution
Producing large events
e-commerce
Regional expansion¥30.0 billion(includingexports)

Initiatives coordinatedacross Asia, including
Japan

Targeting No. 1 position in Asia, major company names will be unified as
one part of the ALL BANDAI NAMCO system
BANDAI HONG KONG

↓BANDAI NAMCO ASIA

¥60.0 billion(includingexports)

Expand in Asia and Japan

RegionRenew in Americas and Europe

Regional expansion in Toys and Hobby business

Expanding area toASEAN/Australia

Strengthening network content
Establishing new company in China
Working with various partners andinvesting aggressively

Expanding IP lineup in Toys and Hobby business
Strengthening established IP (Power Rangers,KAMEN RIDER) + new IP (Yokai Watch/Aikatsu!, etc.)

Actively producing live events

Building foundation for overseas development

Expand in Asia and Japan

RegionRenew in Americas and Europe

Renew in Americas and Europe
Implementing aggressive initiatives to strengthen competitiveness
Building foundation for recovery in theAmericas and Europe
Increasing efficiency

Strengthening competitiveness in Toysand Hobby business・Further strengthening of Power Rangers

Reevaluating systems
Closing unprofitable bases
・Expanding IP

Organizational restructuring
Control by JapanDevelopment: Japan
Sales and Marketing: Americas and Europe
New president at BANDAI America

Developing IP to follow Power Rangers
IP acquired this year）

Full-scale business development initiatives
at Network Content SBU
Initiatives leveraging popularexisting IP
Strategic development of local IP・Strengthening sales capabilities
・Collaboration among SBUs

Function

Create and foster thenew IP business

Create and foster the new IP business

New IP businesses thatleverage BANDAI NAMCO’s uniquecapabilities

Implement IP axis strategy inglobal market

Implement IP axis strategy in global market
Distributing Japanese animation content
throughout the world

Fusion of digital and realGame content
Network content
Amusement machines

FusionDigital /network

Real /
network
Amusement facilities
Theme parks
IP facilities/events

Aiming for the creation of entirely
new facilities that fuse the digitaland real worlds, launch cross-divisional
projects

Network distribution of Japanese animation content
throughout the world(Anime Consortium Japan Inc.)
Increasing awareness and popularity of Japanese
animation content in countries around the world

Building the environment/foundation for the IP axis
strategy in countries around the world

Implement IP axis strategy
in global market

FY2015.3 forecast

FY2016.3
numerical targets

FY2017.3
numerical targets

FY2018.3
numerical targets

Net Sales

520.0

530.0

560.0

600.0

Operating Income

50.0

45.0

50.0

60.0

210.0
16.0
295.0
28.5

210.0
15.0
300.0
25.0

230.0
16.0
310.0
28.0

250.0
18.0
320.0
35.0

40.0
7.0
25.0
1.5
-50.0
-3.0

35.0
7.0
28.0
1.0
-43.0
-3.0

40.0
7.5
30.0
1.0
-50.0
-2.5

45.0
8.0
32.0
1.0-47.0-2.0

Toys and Hobby
NetworkEntertainment
Visual and Music
Production

Other
Corporate andElimination

Top row: Segment sales/Bottom row: Segment income

billion yen

Continue current shareholder return policy
Dividends

Own-stockacquisitions

Other

Base level of annual dividend payments of ¥24 pershare and a consolidated dividend payout ratio of 30%.

Continue to examine with objective of increasing
capital efficiency
Consideration for internal reserves, results trends,
most-recent stock price, existence of investment
projects, etc.

Complimentary gifts for shareholders: Continue
to examine in order to meet diversifying needs

Note on Projections
This document contains forward-looking statements and information related to the BANDAI NAMCO Group thatare 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, asrelated to the Group, are intended to identify forward-looking statements and information. Actual results could differ
materially from those projected in such forward-looking statements.

©SUNRISE/BANDAI,DENTSU,TV TOKYO ©2013プロジェクトラブライブ！ ©SUNRISE/T&B PARTNERS ©L5/YWP・TX©2013石森プロ・テレビ朝日・ADK・東映 ©創通・サンライズ ©サンライズ/BANDAI・メ～テレ ©Diseny©武内直子・PNP・東映アニメーション ©Naoko Takeuchi TM and ©2014 SCG Power Rangers LLC. All Rights Reserved.
©Warner Bros. Entertainment Inc. ©Legendary All Rights Reserved. GODZILLA and the character design are trademarks of Toho Co., Ltd.
©2014 Toho Co., Ltd. ©BNGI／PROJECT iM@S ©尾田栄一郎／集英社・フジテレビ・東映アニメーション ©BANDAI NAMCO Games Inc.
©窪岡俊之 © BANDAI NAMCO Games Inc. ©FUJI TELEVISION © BANDAI NAMCO Games Inc.
©荒木飛呂彦＆LUCKY LAND COMMUNICATIONS/集英社 © BANDAI NAMCO Games Inc.
©Eiichiro Oda/Shueisha, Toei Animation © BANDAI NAMCO Games Inc. ©2002 MASASHI KISHIMOTO / 2007 SHIPPUDEN All Rights Reserved. ©BANDAINAMCO Games Inc. ©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 Games Inc. Developed by Akatsuki

Toys and Hobby
Japan: Yokai Watch earned
society-wide popularity + established IP

Content
Favorable results by key titles in Network Content

Favorable progress with coordinated development invisual and music productsＣAnimation
packages

Music packages

Live events

Decline in home video game software in comparison withprevious period, when there were multiple major titles

Asia: Favorable growth
Americas and Europe:
Challenging conditions

Amusement Facility
With a new president (2014.4) anda new organizational system,Ｃa variety of initiatives were implemented. These initiatives began
to produce results, but overall conditions were challenging.