CONTENTS
FY07.3 First Half Results
Business Strategies

２４Toys and Hobby SBU
４Amusement Facility SBU
６Game Contents SBU
８Networks SBU
１０Visual and Music Content SBU １１Group Mission and Vision １２

1

FY07.3 First Half Results
Transition ofResults

FY04.3

FY05.3

FY06.3

FY07.3 1st Half

FY07.3 Full Year

Results

Results

Results

Plan

Plan

Results

Forecast

435.7

448.4

450.8

210.0

206.6

470.0

470.0

Operating Income

43.0

39.4

35.6

12.3

17.2

40.0

40.0

Recurring Income

41.6

40.3

37.1

12.5

18.5

40.5

40.5

Net Income

21.7

20.6

14.1

6.811.0

22.0

23.5

Capital Expenditures

23.2

20.9

20.8

10.0

9.0

22.5

22.5

Depreciation

18.2

19.1

19.1

11.0

8.9

22.0

22.0

R&D Investments

27.3

30.2

32.2

19.0

16.0

33.0

33.0

Advertising Expenses

31.7

31.4

31.0

17.5

14.0

34.5

33.0

Personnel Expenses

30.0

32.1

33.7

17.5

17.6

35.0

35.5

Net Sales＊Figures from FY04.3 and FY05.3 are combined results of Bandai (Consolidated) and NAMCO (Consolidated).

Net Sales

Recurring Income

FY04.3

FY04.3

FY05.3

FY05.3

FY06.3

FY06.3

FY07.3

FY07.3Forecast

Units: billion yen

Forecast

50050

FY07.3 First Half Results
Visual and Music
Contents
Mobile Suit GUNDAM series:
Strong performance

NetworkDecrease in paid
subscribers

Toys and Hobby
DATA CARDDASS andTamagotchi Plus:
Strong performance

1st Half Consolidated （vs. plan）
Net Sales：(3.4) billion yen
Operating Income：+4.9 billion yen

Amusement Facility

Game Contents
Postponement in release
dates for some products

Existing facility sales YoY:
Underperformed vs. plan

Exhibited Effects of the Business Portfolio Function

2FY07.3 First Half Results
Units: billion yen

By Business
Segment
Toys andHobby

Net Sales

Amusement
Facility

Net Sales

Game
Contents

Net Sales

Network

Net Sales

Operating
IncomeOperating
IncomeOperating
IncomeOperating
IncomeVisual andMusic
Content
Other

Net Sales
Operating
IncomeNet Sales
Operating
IncomeFY07.3 First Half
InitialPlan

ActualResults

81.5
5.0

85.7
8.1

44.6
2.3

Diff.

FY07.3 Full Year
InitialPlan

Revised
Plan

Diff.

+4.2
+3.1

180.0
15.7

180.0
16.5

+0.8

43.2
1.8

(1.4)
(0.5)

90.0
4.8

90.0
3.8

(1.0)

62.0
2.5

57.0
1.8

(5.0)
(0.7)

153.0
13.0

153.0
13.0

-6.5
0.9

6.2
0.5

(0.3)
(0.4)

13.5
1.9

13.0
1.1(0.5)
(0.8)

17.0
2.5

19.2
4.5+2.2+2.0

37.5
6.4

38.0
7.0+ 0.5+ 0.6

9.2
0.3

10.9
0.8+1.7+0.5

19.0
0.7

19.0
1.0+ 0.3

FY07.3 First Half Results
Units: billion yen

By Geographic
Segment
JapanAmericas

EuropeAsia

FY07.3 First Half

FY07.3 Full Year

InitialPlan

ActualResults

Diff.

InitialPlan

RevisedPlan

Diff.

Net Sales(External)

170.2

166.1

(4.1)

370.0

367.0(3.0)

Operating
Income12.7

16.5+ 3.8

34.5

33.0(1.5)

Net Sales(External)

22.0

19.9(2.1)

54.5

54.5

-

Operating
Income

(1.3)

(0.8)

+ 0.5

1.9

2.5+ 0.6

Net Sales(External)

11.6

13.9+ 2.3

33.0

36.0+ 3.0

Operating
Income1.0

1.4+ 0.4

4.0

4.5+ 0.5

Net Sales(External)

6.2

6.5

+ 0.3

12.5

12.5

-

Operating
Income1.1

1.3+ 0.2

2.1

2.5+ 0.4

Overall Strong Performance by Overseas Companies

3

Business Strategy

Business Strategy

Toys and Hobby SBU

Transitionof Results

FY04.3

FY05.03

FY06.3

FY07.3
1st Half

FY07.3Full Year
ForecastNetSales
OperatingIncome

164.8

167.2

181.0

85.7

180.0

13.7

12.8

19.0

8.1

16.5

Operating Income

Net Sales
FY04.3
FY05.3
FY06.3
FY07.3(Forecast)

010020001020
Unit: Billion yen4

Product Strategy

Business Strategy

Toys and Hobby SBU
Aim to be overwhelmingly #1!

Main Items in X-mas sales
EstablishedEstablished productproduct lines
lines

New
New productproduct lines
lines

Tamagotchi School

Boukenjar
MaskedMasked Rider
Rider Kabuto
KabutoUltramanMebiusUltraman Mebius
PrettyPretty Cure
Cure Splash
Splash StarStarMobile
Mobile Suit
Suit GUNDAM,GUNDAM, etc.
etc.

DATA CARDDASS

Let’sTV Play series
Treasure Gaust
Kids’ cell phone – papipo !, etc.

Expansion image
FY07.3（Forecast）

FY05.320 bill. yen

FY06.350 bill. yen

60 bill. yen＊Estimated market size based on BANDAI research

Aim for Market Expansion through Market Share GrowthContent Strategy

Business Strategy

Toys and Hobby SBU

Tamagotchi Synergy output with other SBUs
NetworkMobile Contents
Toys and Hobby Amusement Facility

Game Contents

New versions
Game software forDirectly operated⇒Cultivate into anfacilities
ＤＳ・Ｗｉｉ
Goods DATA
EventsestablishedcharacterSeal print machines
CARDDASSGUNDAM
Product Strategies for the yearwith no TV broadcasts-Merchandising with on-demand films,
DVD sales, coin operated game sales, etc.
-Many events⇒Preventing decline ofsales from prior year

Treasure Gaust
Character MD withCorocoro Comic⇒⇒ Anticipated
Anticipated asas aaleadingcharacterleading character
forfor elementaryelementaryschool
school boysboys5

Business StrategyToys and Hobby SBU

OtherＭ＆Ａ

Collaboration Kokuyo
UNIQLO “Kadokeshi” & “Tamagotchi”

CCP Co., Ltd.

Collaboration product- Radio controlledmodels- Home appliances- Sales of CharacterT-shirts- Section at NY location

Overseas

Entry into New Business Area

Further Expansion of Business Domain

Americas

Americas,
Europe

ＢＥＮ１０:
Good start

Tamagotchi,
Tamagotchi,
PowerPower Rangers:
Rangers:
StrongStrong performance
performance

India

China

Power
Power Rangers:
Rangers: Good
Good start
start

Tamagotchi:
Tamagotchi: Good
Good start
start

Business Strategy
Amusement Facility SBU
Transition ofResults

NetSalesOperating
IncomeFY04.3

FY05.03

FY06.3

FY07.3
1st HalfFull Year
Forecast

FY07.3

82.3

85.0

81.2

43.2

90.0

6.7

5.7

1.8

1.8

3.8

＊Figures from FY04.3 and FY05.3 are combined results of Bandai (Consolidated) and NAMCO (Consolidated).
＊FY06.3 figures are based on business segmentation of FY07.3.

Net Sales

Operating Income

FY04.3
FY05.3
FY06.3
FY07.3(Forecast)

050

1000510

Unit: billion yen

6Business Strategy
Amusement Facility SBU
Currently

Domestic existing facility sales YoY

1st half avg.: 102.2%

１１０％

Recovering trend ⇒ Leveling off
１００％

Installation of Popular Game Machines

９０％

Business Strategy

1 2 3 4 5 6 7 8 9(month)
2006“Mobile Suit GUNDAM Senjo no Kizuna”

Large-scale Facility Openings
1st half: 4 facilities opened+ 2nd half:

9 facilities
scheduled

Re-evaluation of Operations
Cost cuts through efficient operation
YoY: decrease of 400 million yen

Business Strategy
Business Strategy

Synergy

Overseas

Amusement Facility SBU

EuropeFacilities“Character & Location”
Synergies

1st Half Aso-base （Sapporo），HERO’S BASE （Kawasaki）
2nd Half Tamagotchi-themed facility scheduled to be open within the fiscal year!

Campaign
DATA
DATA CARDDASSCARDDASS campaign
campaign only
only available
available atat NAMCO
NAMCO facilitiesfacilities

EventsTamagotchi
Tamagotchi event
event linked
linked withwith NAMJA
NAMJA TOWN
TOWN

Operation
Operation ofof hybrid
hybrid facility
facility bowling
bowling alleys
alleys
1st
1st half
half 2006:
2006: Acquisition
Acquisition ofof 55 facilities
facilities inin UK
UK⇒Total 16 facilities in Europe!

7

Business Strategy

Game Contents SBU

Transition ofResults

FY04.3

FY05.03

FY06.3

FY07.3
1st Half

Full Year
Forecast

FY07.3

Net Sales

124.4

129.0

130.7

57.0

153.0

Operating
Income

20.5

19.8

9.7

1.8

13.0

＊Figures from FY04.3 and FY05.3 are combined results of Bandai (Consolidated) and NAMCO (Consolidated).
＊FY06.3 figures are based on business segmentation of FY07.3.

Net Sales

Operating Income

FY04.3
FY05.3
FY06.3
FY07.3(Forecast)

010020001020
Unit: billion yen

Business Strategy
Home Video Game
SoftwareGame Contents SBU

Anticipated Titles

ＷｉｉＰＳ３

Ennichi
Ennichi nono Tatsujin,
Tatsujin,
Tamagotchi
Tamagotchi nono Pika-pika
Pika-pika Daitoryo!,
Daitoryo!,
CrayonCrayon Shinchan,Shinchan, etc.
etc.

Mobile Suit GUNDAM Target in Sight
Ridge Racer 7, etc.

ＤＳＰＳ２Tales of the Tempest，Dragon Ball Z,
Heisei Kyoiku Iinkai, etc.

GUNDAM,
NARUTO,TAIKO Drum Masteraster,Super Robot Wars OG, etc.

ＰＳＰＸｂｏｘ360

TEKKENⓇ: DARK RESURRECTION,
Gunpey,Tales of series, etc.

Idol M@ster, GUNDAM, etc.

Multi-Platform Strategy based on Customer Needs

8

Business Strategy
Coin-Op Game Machines

Game Contents SBU

Anticipated Game Machines“Mobile“Mobile Suit
Suit GUNDAM
GUNDAM
Senjo
Senjo NoNo Kizuna”
Kizuna”G

Pasha-pasha
Pasha-pasha SealSealMobileSuit
GUNDAM
Tamagotchi
Mobile Suit GUNDAM Tamagotchi toto“Spirits
Tama-2“Spirits ofof ZEON”
ZEON”
Tama-2 shot
shot

REA
STA T
RT!

1616 pods
pods installed
installed atat
HERO’S
HERO’S BASE!
BASE!

Attract families

Attract core users

Pursue Synergy Effects with Facilities

Business Strategy

Game Contents SBU

Surpassed 1.06 million paid
subscribers!

Other

WMC
Transfer Popular Game
Contents to Mobile Phones“Face to Face Office”
Concentration of People,
Equipment, and Skills

Reorganization of Europe region
Establishment of
New Companies

Overseas

Consolidation of Domestic
Offices (Shinagawa Area)

Clarification ofResponsibilities
NAMCO BANDAI Games Europe S.A.S. Speedy Operations⇒Consolidation of home video game businesses

NAMCO EUROPE LIMITED⇒Coin operated game machine sales company
NAMCO BANDAI Networks Europe Limited⇒Consolidation of mobile phone content businesses

9Business Strategy
Transition ofResults

FY04.3

Network SBU

FY05.03

FY06.3

FY07.3
1st Half

Full Year
Forecast

FY07.3

Net Sales

10.2

10.1

12.5

6.2

13.0

Operating
Income

1.9

1.6

1.8

0.5

1.1

Net Sales

Operating Income

FY04.3
FY05.3
FY06.3
FY07.3(Forecast)

05

100

1.0

2.0
Unit: billion yen

New business Content Strategy

Business Strategy

Network SBU

Selective Content Expansion
Reevaluation of content profitability
Higher unit-value and efficiency through site
consolidation
Strengthening R&D of rich contents

Establishment of Solid Business Foundation throughExpansion of Business Domain
Start of service and expansion
of “Picture Recognition Engine”

Internet advertisingbusiness: Steady startOver 140,000 subscribers!

10Business Strategy

Visual and Music Content SBU

Transition ofResults

FY04.3

FY05.03

FY06.3

FY07.3
1st Half

Full Year
Forecast

FY07.3

Net Sales

42.6

44.4

43.3

19.2

38.0

Operating
Income5.7

5.4

6.1

4.5

7.0＊Figures from FY04.3 and FY05.3 are combined results of Bandai (Consolidated) and NAMCO (Consolidated).

Net Sales

Operating Income

FY04.3
FY05.3
FY06.3
FY07.3(Forecast)

0204060 0510
Unit: billion yen

Business Strategy

New business

Content Strategy

Visual and Music Content SBU

FirstFirst GUNDAM
GUNDAM
DVD-BOX
DVD-BOX on
on salesale

Anticipated contents
CODE GEASS
Lelouch
Lelouch ofof thethe Rebellion
Rebellion（TBS･MBS（TBS･MBS broadcast）
broadcast）
SUNRISE×CLAMPSUNRISE×CLAMPPartPart 1（¥３７,８００）
1（¥３７,８００） Synergy
OverOver 120,000
120,000 setssets
pre-ordered
pre-ordered

Animation of Idol M@ster

Anime Channel
http://www.dot-anime.com-Internet sales of DVDs, etc.
-Video streaming distribution-Downloads of full-length songs-Planning and sales of original
products, etc.

Nov.2 Start

Collaboration with USEN
Market Development for Distribution ofVisual Content for Children

11Group Mission and Vision
MISSION

VISIONTo Become the World’s Most
Inspiring Entertainment Group

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 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 andinformation. Actual results could differ materially from those projected in such forward-looking statements.
©2006 TV ASAHI・TOEI AG・TOEI、©BANDAI・WiZ 2004、BEN 10 and all related characters aretrademarks of and © Cartoon Network. Used under license by Bandai America Incorporated.
All Rights Reserved.、©BANDAI2006、©SOTSU AGENCY・SUNRISE、©2006NBGI、©いのまたむつみ ©NBGI、©USUI YOSHITO/FUTABASHA & SHIN-EI & TV ASAHI ©BANPRESTO 2006、©SOTSU AGENCY・SUNRISE・MBS、©岸本斉史 スコット／集英社・テレビ東京・ピエロ©2006NBGI、©SOTSU AGENCY・SUNRISE ©2000-2006 NBGI©SOTSU AGENCY・SUNRISE・MBS ©BANDAI NETWORKS、© SUNRISE/PROJECT GEASS・MBS Character Design ©2006 CLAMP、©SUNRISE・BANDAI VISUAL12