FYE March 2006
Financial Results
Presentation
MAY 17, 2006
NAMCO BANDAI Holdings Inc.
President and Representative Director

Takeo Takasu

CONTENTS

FY06.3 Financial Results Transition of Results 2
FY06.3 Financial Results by SBU

2

FY07.3 Financial Plan

44

Medium-Term Management Plan Strategy

Entertainment Hub Concept

510

BANDAI NAMCO Group Mission

10

Business Strategy by SBU

1

FY06.3 Results

Transition of Results
Formerly BANDAI(Consolidated)
Net Sales

Operating Income

300

Unit： billions of yen

Formerly NAMCO(Consolidated)

Unit： billions of yen

Net Sales

Operating Income

300
25025020020015010050303015020100

2010501000
FY02.3

FY03.3

FY04.3

FY05.3

FY06.3

FY02.3

FY03.3

FY04.3

FY05.3

FY06.3

NAMCO BANDAI Holdings Inc.
(Consolidated)

Net Sales
４５０,８２９ million yen
Operating Income ３５,６６９ million yen

Results by SBU

FY06.3 Results

Toys and Hobby
Japan： “Tamagotchi Plus”“Data Carddass”
Girls’ toys post strong results

Net Sales Billion yen Operating Income
150100Overseas：Established stable foundation 50through ‘selection and focus.’

2010
FY05.3Results

FY06.3
Plan

FY06.3Results

Amusement Facility
Japan：Market downturn with prize
machines’ popularity waning
Overseas：Effects of U.S. market
downturn
Installment
Installment ofof “Mario“Mario Kart
Kart Arcade
Arcade Grand
GrandPrix”
Prix” andand other
other machines
machines inin 2nd
2nd HalfHalfcreatecreate recovery
recovery trend
trend

Net Sales Billion yen Operating Income
100
1050

5

FY05.3Results

FY06.3
Plan

FY06.3Results＊FY05.3 Results is calculated by simple addition of BANDAI consolidated and NAMCO consolidated results.

2Results by SBU

FY06.3 Results

Game Contents
Home Video Game Software
Japan・Overseas：Despite some hit titles, market downturn andslow response to changes in customer needs, resulted in sluggish results

Coin-Operated Game Machines
Japan： “Mario Kart Arcade Grand Prix”“Idol M@ster” posted strong results
Overseas： “Wangan Midnight MAXIMUM TUNE2”
Net Sales Billion yen Operating Income
had strong sales
100205010
FY05.3Results

FY06.3
Plan

FY06.3Results＊FY05.3 Results is calculated by simple addition of BANDAI consolidated and NAMCO consolidated results.

Results by SBU

FY06.3 Results

NetworkHigh value-added contentstrengthens earnings foundation

Net Sales Billion yen Operating Income
10251⇒increased⇒increased average
average charge
charge perper subscriber
subscriber

New technology offerings such as

FY05.3Results“2D Vector Engine” and “3D Engine”

FY06.3
Plan

FY06.3Results

Visual & Music Content
Japan： “Mobile Suit GUNDAM” series⇒Strong group synergy effects

Overseas：Product returns
increased amid
U.S. market downturn⇒Posted allowance to reflect
severe market conditions

Net Sales Billion yen Operating Income
408204
FY05.3Results

FY06.3
Plan

FY06.3Results＊FY05.3 Results is calculated by simple addition of BANDAI consolidated and NAMCO consolidated results.

3Plan for FY07.3

Plan Figures

Net Sales
４７０billion yen
Operating Income ４０billion yen
Operating Income

Net Sales
600
500

450.8

470

500

550

400

58.0

60

50.0
40

40.0
35.6

300
200

2010000

FY06.3

FY07.3

FY08.3

FY09.3

FY06.3(Result)(Plan)(Plan)(Plan)(Result) (Plan)

Medium-Term
Management Plan Strategy

FY07.3

FY08.3

FY09.3(Plan) (Plan)

Medium-Term
Management Plan

THEME of Medium-Term
Management Plan
Strengthening, Enriching, and Expanding
Portfolio Management
Area (Regional)Portfolio

ContentPortfolio
Long-established⇔New,Original⇔Licensed:
Attain ideal portfolio
balance

Attain ideal area portfolio
and increase overseas sales
to 25% of overall salesBusinessPortfolio
Expand businessdomain, Create newdomain

4Medium-Term Management
Medium-Term
Plan
Management Plan

Medium-Term
Management Plan Strategy

Management Strategy①Strengthening Corporate Governance②Effectively Utilizing Human Resources③Building Optimal Management System

Business Strategy①Entertainment Hub Concept
・Content Strategy③最適な経営体制の構築
・Domain Strategy
・Channel Strategy②Strengthening Overseas Businesses

Strategic Business Unit (SBU)
Strategic Business Unit system as of end of March 2006

NAMCO BANDAI Holdings Inc.
AffiliatedAffiliated BusinessBusiness GroupGroup
Strategic Business Units

Bandai Visual

Visual & Music Content

Bandai Networks

NetworkNAMCO BANDAI Games

Game Contents

NAMCO

BandaiAmusement Facility

LeaderToys & Hobby

5Toys & Hobby
Billion yen
Net Sales

Operating income

200

100

2010

Business Strategy
FYE2006
07.3
Business Strategy

Further strengthening andexpansion of popular products“Tamagotchi Plus”
・Data Carddass
・Team up with partner companies
Campaign, goods sales, etc.

FY06.3ResultFY07.3Plan

FY08.3
Plan・Development of peripheralFY09.3
Planproducts

Data Carddass
・Increase content⇒Bring⇒Bring up
up as
as establishedestablishedpopularpopular characterscharacters⇒Expand target
target group!
group!
“Dragon Ball Z” ”NARUTO” ”Tamagotchi Plus” ”Digimon” ⇒Expand

Long-established popular
popular ＋＋ New
New content
content
Content Strategy Long-established⇒⇒ RichRich line-up
line-up

FYE 07.3
Business Strategy

Toys & Hobby
Partner Company BANDAI×UNIQLO
Collaborations“Tamagotchi” T-shirts＋“chibi-Tamagotchi”

BANDAI×WILLCOMBANDAI×WILLCOM
Kids’ Keitai (mobile)“papipo!”BANDAI×KENWOODBANDAI×KENWOOD“Enter-audio” for adult target

Overseas
Businesses“ＰＯＷＥＲ ＲＡＮＧＥＲＳ”
Good start in America“ＴＡＭＡＧＯＴＣＨＩ”

Continuing strong sales

Also started development in India

Anticipated Content“ＢＥＮ１０”“ＮＡＲＵＴＯ”“ＰＯＣＯＹＯ”

Centered aroundBoys’ toys in U.S.

Centeredaround Cards
in U.S.

Centered aroundinfants' toys inEurope

6FYE 07.3
Business Strategy

Amusement Facility
Billion yen
Net Sales

Operating income

100

Existing
Year on year same store
Facilities
figures in Japan

20110

Recovering
trend !

％1055010100
95

FY06.3ResultFY07.3
Plan

FY08.3
PlanOCT

FY09.3Plan

NOVDECJANFEBMAR

2005“Kochikame“Kochikame Game
Game Park”
Park”“Namja“Namja Town”
Town”

Opened in Tokyo, based on theme of the“Kochikame” world.

Celebrated its
10th anniversary
and is set tofurther enrichfacility“Plabo“Plabo Nagano”
Nagano”
Opened in 2005, alarge-scale facility“Danwashitsu“Danwashitsu Kaikaya”
Kaikaya”
Members’ only
community salon forbaby boomers“Nagoya“Nagoya Dessert
Dessert Forest”
Forest”
Opened inside a large-scale
shopping center⇒⇒Further
Further plans
plans toto open
open large-scalelarge-scale facilities
facilities

andand enter
enter newnew businesses
businesses

Amusement Facility
New businessformats

Osaka“NAMCO“NAMCO Spa
Spa Resort
Resort Liberty”
Liberty”
ngro
St tarts

FYE 07.3
Business Strategy“Quick“Quick Make
Make Sugu
Sugu Sugu”
Sugu”“NAMCO“NAMCO Aso-Base”
Aso-Base”

Tokyo Station
Reasonably priced quick
make-up shopngro
St tarts

Scheduled to open June in Hokkaido

MoreMore new
new hot
hot bathbath facilities
facilities
scheduledscheduled forfor opening
opening“Gensou Koubo”
Creative space for adults toenjoy making crafts
Scheduled to open in FY07.3 in Yokohama

Fun space for families toenjoy based on time charge

Synergy
Synergy withwith BANDAIBANDAI
Overseas
Business
GAME MACHINESBOWLINGBAR COUNTERPOOL BAR⇒Strengthening developmentof hybrid facilities (Europe)

7

FYE 07.3
Business Strategy

Game Contents
Billion yen
Net Sales

Operating income

Home title structure

2001002005

20

Current hardware

2006

Next gen. consoles

ＤＳ・ＰＳＰＰＣ10
FY06.3ResultFY08.3
Plan

FY07.3
Plan

FY09.3
Plan⇒Balanced multi-platform strategy

Anticipated home video
game titles

Next gen. consolesTitles under development scheduled for release in the future“.hack//G.U.” series,
Ridge Racer ７
TEKKEN ６
PS２ Xenosaga Episode Ⅲ,PS3
Dragon Ball Z Ｓｐａｒｋｉnｇ! ＮＥＯ, etc.
Mobile Suit GUNDAM, etc.

PSP RAIN, WONDER TRIP, etc.

Ｘｂｏｘ Mobile Ops: The One Year War
360 Culdsept Saga, etc.

no tatsujin,
DS Unou
Tamagotchi 2, etc.

ＷｉｉＷｉｉTEKKEN Dark Resurrection,Game Contents
Arcade machine
anticipated titles“Mobile Suit GUNDAM : Senjo no Kizuna”
Test location during
Golden Week

Dragon Ball Ｚ Ｓｐａｒｋｉｎｇ！ＮＥＯFinal Furlong （tentative）, etc.

FYE 07.3
Business Strategy
Great reception!

Synergy
×“Tamagotchi”× Arcade Machine
Character-based medal games, etc.

Collaboration

Overseas
BusinessTEKKEN（ＰＳＰ）

SupportSupport broadband
broadband streaming
streaming forfor Ministry
Ministry ofofInternalInternal Affairs
Affairs andand Communications
Communications
Support through application of game technology tostreaming contents to all grade and middle school
students in Japan“．ｈａｃｋ” ProjectMedia-mix developmentswith various media

Time Crisis ４（Coin-Op）⇒Expansion⇒Expansion ofof Worldwide
Worldwide
Developments
Developments8FYE 07.3
Business Strategy

NetworkBillion yenNet Sales

Operating income

Strengthening content

15Expand rich content

10251

FY06.3ResultFY07.3Plan

FY08.3
Plan

Game Content
Video Content
Electric comic, etc.

FY09.3
PlanExpansion ofbusiness domain
Make
Make service
service available
available andand expand
expand “picture“picturerecognitionrecognition engine”
engine”

Synergy

Linking catalog shopping, packaged software,
search engine, etc.

Content for i-mode“SD GUNDAM RPG”

Develop with quality that makes full use of new functions
and technologies of mobile phones

Joint
Joint
developdevelop
develop-mentment

Bandai
Bandai Networks
Networks×NAMCO BANDAI
×NAMCOBANDAI Games
GamesInternetInternet advertising
advertisingbusinessbusiness starts
startsBandai Networks × ＶＩＢＥ × Tokyu Agency

Start of service scheduled
for June

Pillar of new businesses

Visual & Music Content
Billion yen
Net Sales

GUNDAM developments

Operating income

40

820

4

FY06.3ResultFY07.3Plan

FY08.3
Plan

FY09.3
PlanCannes
Cannes Film
Film
FestivalFestival sidebar
sidebarDirectors’
Directors’ Fortnight
Fortnight submission
submission
finalized
finalized
Theatricalworks

FYE 07.3
Business Strategy

Various
Various approaches
approaches toto bringing
bringingoutout thethe world
world ofof GUNDAM
GUNDAM“Mobile Suit GUNDAM ＤＶＤ-ＢＯＸ”(2 boxes)
on sale“GUNDAM ＳＥＥＤ Ｃ．Ｅ．７３ Stargazer”
internet streaming“Mobile Suit GUNDAM MS IGLOO”
ＤＶＤ on sale
Expansion of businessdomain“Yureru”

Maximize content value

Directed by
Miwa Nishikawa
Produced by
Hirokazu Koreeda
Starring Joe Odagiri

Lantis stock purchase⇒Take⇒Take initiative
initiative inin music
music
content
content businessbusiness
Provide songs to animation portals, etc.

9

Entertainment Hub Concept
TOYS &HOBBYVISUAL &MUSICCONTENTNETWORK

AMUSEMENTFACILITYGAMECONTENTS

Bandai Namco Group’s Mission“Dreams, Fun and Inspiration”

FYE March 2006
Financial Results Presentation

Note on Projections
This document contains forward-looking statements and information related to BANDAI
NAMCO Group that are based on our beliefs as well as various assumptions made on thebasis of information currently available to us. The words "plan," "target," "estimation,""projection," "intend," "will" and similar expressions, as they relate to us, are intended toidentify forward-looking statements and information. Actual results could differ materiallyfrom those projected in such forward-looking statements.

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