BANDAI NAMCO Group
Restart Plan
February 2, 2010
NAMCO BANDAI Holdings Inc.
President and CEO, Shukuo Ishikawa

Table of Contents
FY2010.3 Financial Overview

P２

BANDAI NAMCO Group
Restart Plan

P５

Business Strategies

P１０1

FY2010.3 Financial Overview

3Q Results
Billion yen
FY2009.3
３Ｑ (9 months)

FY2010.3
３Ｑ (9 months)

YOY

315.6
19.8
21.6
9.0

282.8
4.7
4.9
-11.7

-32.8
-15.1
-16.7
-20.7

Depreciation

11.5
16.1

8.5
13.9

-3.0-2.2

R&D Investments

26.4

30.4+4.0

Advertising Expenses

20.227.7

20.6
29.5+0.4+1.8

Net Sales
Operating Income
Recurring Income
Net Income/Loss
Capital Expenditures

Personnel Expenses

23Q Results (Business Segment)
Billion yen

Toys & Hobby
Game Contents
Visual & Music
ContentAmusement
Facility
Other
Elimination
Consolidated

FY2009.3
３Ｑ (9 months)

FY2010.3
３Ｑ (9 months)

119.9
10.4
113.9
10.6
23.7
0.1
59.0
0
14.1
0.4
-15.1
-1.8
315.6
19.8

108.9
9.6
104.6
-3.3
21.9
-0.1
49.1
0
13.2
0.2
-15.1
-1.6
282.8
4.7

Net Sales
OPNet SalesOP
Net SalesOP
Net SalesOP
Net Sales
OPNet SalesOP
Net Sales
OP

YOY
-11.0
-0.8
-9.3
-13.9
-1.8
-0.2
-9.90-0.9
-0.2
0+0.2
-32.8
-15.1

Full Year Forecasts
Billion yen
FY2009.3
Full Year
Results

FY2010.3
Full Year（PreviousForecasts）

FY2010.3
Full Year（LatestForecasts）

YOY

Net Sales

426.3

400.0

380.0

-46.3

Operating Income

22.3

15.0

1.0-21.3

Recurring Income
Net Income/Loss

24.5

16.0

0.5

-24.0

11.8

8.5

-31.0

-42.8

Capital Expenditures

14.6

17.0

15.0+0.4

Depreciation

22.5

21.0

20.0-2.5

R&D Investments

33.838.0

38.0+4.2

Advertising Expenses

28.4

29.0

28.0

-0.4

Personnel Expenses

35.0

40.0

39.0

+4.03

Strengthening financial standing◩ Allowance for distribution inventories and an estimated valuation loss resulting
from stricter inventory reviews for game software and visual package software◩ Special additional retirement benefits required for workforce reduction◩ A loss on the closure of amusement facilities and others scheduled for the next
and subsequent fiscal years◩ Impairment loss on goodwill◪ Withdrawal of a fixed amount from deferred tax assets→Booking the above costs prior to
the Restart Plan

Full Year Forecasts (Business Segment)
Billion yen

Toys & Hobby
Game Contents
Visual & Music
ContentAmusement
Facility
Other
Elimination
Consolidated

Net SalesOP
Net SalesOP
Net SalesOP
Net SalesOP
Net SalesOP
Net SalesOP
Net SalesOP

FY2009.3
Full Year
Results
165.7
11.5
150.2
11.6
34.6
0
77.2
0.3
19.0
0.5
-20.5
-1.7
426.3
22.3

FY2010.3
Full Year（PreviousForecasts）
153.0
9.0
147.0
5.5
33.0
1.5
68.0
1.0
18.0
0.5
-19.0
-2.5
400.0
15.0

FY2010.3
Full Year（LatestForecasts）
150.0
10.0
138.0
-5.0
28.0
-1.0
65.0
-0.5
18.0
0.2
-19.0
-2.7
380.0
1.0

YOY
-15.7
-1.5
-12.2
-16.6
-6.6
-1.0
-12.2
-0.8
-1.0
-0.3
+1.5
-1.0
-46.3
-21.3

＊Game Contents and Network segments were merged from FY2010.3 and the results for Game Contents in FY2009.3 were simple sum of the two segments.

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BANDAI NAMCO Group
Restart Plan

Responsibilities of the Management◩ Review of the optimum board structure◩ Return of directors’ remuneration

5

Current Issues
Focus on building the fundamental structure（Organizational restructuring, etc.）◩ The consolidation of administrative tasks and other efforts haveyielded some cost cutting results.
◩ Priority on integration of business models, organizations, andbusiness processes.
⇒Negating the strengths of each companies

We lost speed on the operation side and could not respondto change in business environment and user needs.

Objectives of the Restart Plan

◩ Transforming into a speedy Group◩ Improving profitability andstrengthening financial standing6

Group Structure

From Apr. 2010
At present

Amusement Facility

Content

Toys and Hobby

Amusement Facility
Visual & Music Content
Game Contents
Toys and Hobby

At Present

Content SBU
Visual & Music
ContentGameContents

Affiliated BusinessCompanies
Affiliated BusinessCompanies

Content SBU (image)Publisher Function

Video Game Software

Arcade Game Machine

Network Contents

Prize for Amusement Machine

Visual Package SoftwareMusic Software

On-demand Delivery

Production GroupWorldwide Customers

7Directors NAMCO BANDAI Holdings Inc.
After June 2010

（On（On thethe premise
premise ofof thethe decision
decision byby thethe board
board meeting
meeting after
after thethe annual
annual generalgeneral shareholders’shareholders’ meeting)meeting)

Chairman and Director

Takeo Takasu

President andRepresentative Director

Shukuo Ishikawa

DirectorShuji Ohtsu

DirectorYuji Asako

Director (Part-time)

Kazunori Ueno

Director (Part-time)Masahiro Tachibana

Director (Outside)

Masatake Yone

Director (Outside)

Kazuo Ichijo

Director (Outside)

Manabu Tazaki

Facilitate collaboration amongbusinesses.
Provide direct link between
management and business.
⇒Resulting in speeding up
One third (3 out of 9) to beoutside directors.
⇒Enhancing the management
supervisory function

Directors NAMCO BANDAI Games Inc.
After June 2010
President and Representative Director

Shukuo Ishikawa

OverallManagement

Vice President and Representative Director

Shin Unozawa

BusinessReconstruction

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Improving profitability,
Strengthening Financial Standing

To start the Restart Plan:◩ Allowance for distribution inventories and an estimated valuation loss resulting
from stricter inventory reviews for game software and visual package software◩ Special additional retirement benefits required for workforce reduction◩ A loss on the closure of amusement facilities and others scheduled for the nextand subsequent fiscal years◩ Impairment loss on goodwill◪ Withdrawal of a fixed amount from deferred tax assets

Cost Reduction Effect (FY2011.3)
Review of the optimum personnel structure◩Review of the optimum personnel structure in groupcompanies, including NAMCO BANDAI Games Inc.
Personnel cost reduction of approx. ¥3.5 billion in FY2011.3

Reduction of amortization cost of goodwill◩Loss on impairment this Fiscal Year: Approx. ¥12.5 billion
Reduction of amortization cost: ¥3.5 billion in FY2011.3

Group-wide cost reductions (compared with thecurrent fiscal year) of roughly ¥8 billion are expected.

9Business Strategies

Toys and Hobby SBU◩Japan: Aiming to be No.1 in each business category!
NewNew categories
categories

Revival of the famous
sports toy with newfeatures

New vehicle toy includingtransforming features◩Overseas: Expansion of product categories, sales areas
Strengthening contents originated in overseas

BEN10, originatedin the U.S., now
become popular in
Europe and Asia

Chef Kids
Harumika
Expanding girls’ toys in the U.S. and Europe

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Content SBU
Production Group

Publisher Function
Bandai channel
NAMCO BANDAI Games Bandai Visual Banpresto
NAMCO BANDAI Online D3 group
Lantis NAMCO BANDAI LiveNAMCO BANDAI Games America
NAMCO BANDAI Games Europe
NAMCO Europe
NAMCO AMERICA
NAMCO NETWORKS AMERICA
NAMCO BANDAI Networks Europe
NAMCO BANDAI Partners GroupWorldwide Customers

Content SBU
Production Group
ContentsConference

Publisher Function
Worldwide Customers

11Content SBU
NAMCO BANDAI Live Co., Ldt. (provisional name ）Description of business:
Planning and production of events and live performances,video production for events and live performances,merchandise planning, manufacturing and sales, ticket sales, etc.
President & Representative Director :Shunji Inoue (dual post as President & Representative Director of Lantis Co., Ltd.)
Scheduled foundation date: April 1, 2010

Producing visual and music concerts or events utilizing
the group contents◩ Utilizing the group contents into new business outlet◩ Strengthening ties with external partners

Amusement Facility SBU◩ Focus on the core businesses◩ Continuous scrap & build
Fusion of amusement
facilities and characters

Heros’ Base (Kawasaki)

Character world settings in
our amusement facilities

Thomas town (Shinmisato)

Improving profitability byrevising business structure

Namja town (Ikebukuro)Campaign for families◩ Utilize the group’s strengths◩ Collaboration with Content SBU⇒Responding quickly to customer needs
Pokémon campaign

12Medium to Long-term Vision

Globally RecognizedEntertainment Group

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, 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-looking statements.

©BANDAI 2010 © Cartoon Networks ©BANDAI ©SUNRISE, Layup ©2009 Gullane(Thomas)Limeted©Nintendo・Creatures・GAME FREAK・TV Tokyo・ShoPro・JR Kikaku ©Pokemon

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