BANDAI NAMCO Group
Mid-term Plan
April 2018 to March 2021

February 9, 2018

Results in the First Nine Months of the Fiscal Yearbillion yen
FY 2017.3

Vs. previousyear’s results

FY 2018.3

First ninemonthsFull-year

First ninemonthsFull-year
forecast

First ninemonthsFull-year

Net Sales

459.1

620.0

483.1

630.0

+24.0

+10.0

Operating Profit

60.1

63.2

53.4

57.0

-6.7

-6.2

Recurring Profit

60.5

63.2

54.7

58.0

-5.8

-5.2

Profit Attributable toOwners of Parent

46.5

44.1

40.8

41.5

-5.7

-2.6

Capital Investments

16.119.5

48.8

54.0+32.7+34.5

Depreciation

15.2

21.8

16.7

23.0+1.5+1.2

Advertising Expenses

27.4

39.3

26.5

42.0

-0.9+2.7

Personnel Expenses

38.5

53.6

41.3

52.0+2.8-1.6

Trends by Business (compared with the same period of the previous fiscal year)
Toys and Hobby
billion yen
Segment sales-1.3

Segment profit-2.1

・Steady performance of mainstay IPs in all regions
Japan: KAMEN RIDER, DRAGON BALL
Japan and greater Asia: Gundam, etc.

Network Entertainment
Segment sales+24.4

Segment profit-2.0

・Network content: Mainstay titles continued to perform well
Home video games: Favorable sales of newly released TEKKEN 7,
repeat sales in Europe and the Americas
Amusement: Prior costs due to active rollout of new facilities

Visual and Music Production
Segment sales-3.1

Segment profit-2.9

・Rollout of new visuals and products for mainstay IPs
starting from 3Q
・ License revenue from the Love Live! series, etc.

Results by Segment (Vs. previous year’s results)billion yen
FY 2017.3

Toys and Hobby
NetworkEntertainment
Visual and MusicProduction
Other
Corporate andElimination
Consolidated

Vs. previousyear’s results

FY 2018.3

First ninemonths

Full-year

Segment sales

165.6

218.0

164.3

215.0

-1.3

-3.0

Segment profit

15.3

13.3

13.2

15.0

-2.1+1.7

Segment sales

260.9

355.5

285.3

380.0

+24.4

+24.5

Segment profit

35.8

42.0

33.8

36.0

-2.0

-6.0

Segment sales

40.9

56.2

37.8

50.0

-3.1

-6.2

Segment profit

11.9

13.4

9.0

12.0

-2.9

-1.4

Segment sales

20.2

26.7

20.2

30.0

±0+3.3

Segment profit

1.2

0.7

0.8

1.0

-0.4

+0.3

Segment sales

-28.6

-36.7

-24.6

-45.0+4.0-8.3

Segment profit-4.2-6.2-3.5-7.0+0.7-0.8

Net sales

459.1

620.0

483.1

630.0

+24.0

+10.0

Operating profit

60.1

63.2

53.4

57.0

-6.7-6.2

First nine Full-year First nine
forecast
monthsmonthsFull-year

Full-year Results (Dividend)
FY 2017.3
Net Sales

620.0

Operating profit

FY 2018.3
Forecast

billion yen
YOY

630.0

+10.0

63.2

57.0

-6.2

Recurring Profit

63.2

58.0-5.2

Profit Attributable toOwners of Parent

44.1

41.5-2.6

Dividend (Forecast)

Apply the shareholder returns policy of the new Mid-term Plan ahead ofschedule, starting from the year-end dividendInterim dividend: ¥12Year-end dividend: ¥83 (base dividend: ¥20; performance-based dividend: ¥63)
→Annually ¥95 per share (base dividend: ¥32; performance-based dividend: ¥63)

The BANDAI NAMCO Group Thus Far
billion yen

Net Sales

Operating profit

700
7000

70

6000
600

60

5000
500

50

4000
400

40

3000
300

30

2000
200

20

100

101000002005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

forecast

Restart Plan

Current midterm plan

Review of Current Mid-term PlanCorporatePhilosophy

Dreams, Fun and Inspiration

To become the Leading Innovator in Global Entertainment

Mid-term
VisionBusiness Strategies

Region Strategies
Through the IP axis strategy,
gain momentum in global markets

Accelerate evolution in theIP axis strategy

Strategies
Focusing

Cultivate OriginalGroup IPs
Enlarge New IP
Businesses

Function Strategies
Deepen the current
business model

Expand Target
MarketCollaborate across
SBUs

Expand in Asia and Japan
Renew in Americas and Europe

Empower and innovate business model through
BANDAI NAMCO market advantages

Create and foster thenew IP business

Implement IP axis strategy inglobal market

Results under Current Mid-term Plan
Product and service innovation forestablished IPs

IP creation and cultivation

Expansion of target customer base

Growth of IP outlets Overseas video games

Successful overseas events

Live events
Japan and overseas
network contents

Challenges under Current Mid-term Plan
New IP creation

Drive new IP creation◎ Establish structure for IP creation◎ Invest aggressively in IP creation◎ Expand collaborations withexternal partners

More IP could have been created.

Overseas expansion
Performance in Europe andthe Americas

Strong performance of CS and NE
businesses in Europe and the Americas

Change methods for adopting
an aggressive stance◎Avoid an over reliance on specific IPs
Establish an abundant IP portfolio◎Expand business through theenhancement of products for mature fan base2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
◎Take on the challenge of creating
More expansion could have IP in each region

been realized.

Opportunities under the New Mid-term Plan
New technologies + IP axis strategy

Expansion of Japanese IP inworldwide markets
Overseas network contents

Overseas live events

Products for mature fan baseChinese market

What We Aim to Be in 10 YearsLeading entertainment company- A company that earns the trust of children and fans around the world- A group of highly individual companies and employees that create products
and services respected by fans for their quality and excitement

Direction of the New Mid-term Plan
Initiatives for becoming what we aim to be in 10 years

Leading entertainment
company

Initiatives for becoming what we aim to be in 10 years

CHANGE to an IP creation company
CHANGE to new business models
CHANGE to an ALL BANDAI NAMCO system
CHANGE to a corporate group that centers on people

FY2018.3 to FY2021.3

A three-year period in which we will make changes that allow
us to demonstrate our existence well into the futureCorporate Philosophy
MISSION STATEMENTDreams, Fun and Inspiration
VISIONThe Leading Innovator inGlobal Entertainment

New Mid-term Vision

Numerical Targets
FY2018.3 forecasts

FY2021.3 targets

Net Sales¥630.0 billion¥750.0 billion

OperatingProfit¥57.0 billion¥75.0 billion

9.0%

10.0%

Operatingprofit margin

ROE

11.4%

or more10.0%

or moreNew Organizational Framework
Starting from April 2018

Five-unit structure

Toys and Hobby Unit
Core company：BANDAI CO., LTD.

Network Entertainment Unit
Core company ：BANDAI NAMCO Entertainment Inc.

Real Entertainment Unit
Core company ： BANDAI NAMCO Amusement Inc.
(Name changed from NAMCO LIMITED)

Visual and Music Production Unit
Core company ： BANDAI NAMCO Arts Inc.

(Integration of BANDAI VISUAL CO., LTD. andLantis Co., Ltd.)IP Creation Unit
Core company ：Sunrise Inc.

Affiliated Business Companies

Outline of the New Mid-term Plan
Corporate
Philosophy

Dreams, Fun and Inspiration
The Leading Innovator in Global Entertainment

Mid-term
VisionStrategies
Focusing

IP axisstrategy

Accelerate evolution in IP axis strategy

Businessstrategy

Empower push into new entertainment

Regionstrategy

Gain momentum with ALL BANDAI NAMCO

Personnel
strategy

Make personnel the core of the Group

Boost capability to create IP (structural changes)

Establish and enhance business
infrastructure

Make full-blown entry
into Chinese market

Invest aggressively in IP creation

Expand and strengthen businessfieldsPromote incubation

Establish system for ALL BANDAI NAMCO

Establish environment to optimize employees’ performance by tapping their individual strengths,
and to empower new ventures

Correlation Diagram for Key Strategies and Units
ToysandHobby
UnitIP axisstrategy◎◎◎

Expand and strengthen business fields

Personnel
strategy

Make full-blown entry
into Chinese market◎◎

Establish system for
ALL BANDAI NAMCO
Establish environment to optimize
employees’ performance by tapping theirindividual strengths, and to empower newventures

Visual andMusic
ProductionUnit◎◎

Invest aggressively in IP creation

Promote incubation

Regionstrategy

RealEntertainment Unit

Boost capability to create IP(structural changes)

Establish and enhance business
infrastructureBusinessstrategy

NetworkEntertainment Unit◎◎IPCreationUnit◎◎

Correlation diagram for each strategyBusiness and regional coordination

Business strategy
Empower push into
new entertainment

IP axis strategy
Businesscoordination

Establish and enhance business
infrastructure
Expand and strengthenbusiness fields
Promote incubation

Personnelstrategy

Create andsecure IP

Accelerate evolution in IP
axis strategy
Boost capability to create IP(structural changes)
Invest aggressively in IP creation

Regional
coordination

Create andsecure IP

Make personnel the core of the GroupRegion strategy
Gain momentum
with ALLBANDAI NAMCO
Make full-blown entry into
Chinese market
Establish system for
ALL BANDAI NAMCO

IP axis
strategy

Accelerate Evolution in IP Axis Strategy

Boost capability to create IP(structural changes)

Drive IP creation

Collaborate in an
open manner tocreate IPNew establishment

IP Creation Unit
Create and expand optimal IP combinations thatconnect with each business and service

Toys

GamesAmusement

Music, visual
products andlive events

Externalpartners

IP axis
strategy

Accelerate Evolution in IP Axis Strategy

Invest aggressively in IP creation● Investment in the creation of original IP

FY2019.3 to FY2021.3

Invest in IP creation

・IP Creation Unit・Original IP development(each unit)* Does not include investment (financing) to strengthen partnerships

6.0 billion
4.0 billion●Investment by the IP Strategy Division
・Initiatives with external IP
・Support for internal IP axis
Fivefold strategy
increase

FY2016.3 to FY2018.3

Investment in IP creation 20.0 billion
Support for IP creation andIP axis strategy
Investment (financing) tostrengthen partnerships

5.0 billion
5.0 billion

5.0 billion
15.0 billion●Investment to support new challenges
・New businesses, technologies, etc.

Businessstrategy

Empower Push into New Entertainment

Establish and enhance business infrastructureEstablishment of the new Real Entertainment Unit
Through the integration with the amusement business,
the Real Entertainment Unit will aim for further
evolution as an organization that provides realentertainment

Amusementmachine business

Integration ofthe amusementbusiness

Creation of new digital services
Accelerate the creation of new digital services throughthe integration of digital capabilities and theenhancement and expansion of platforms● Integrate video distribution capabilities
Amusement
facility business

Integration● Enhancement and expansion of platforms

BANDAI NAMCO Amusement Inc.
Manufacture andsale of amusement
machines

Management ofamusement
facilitiesCreation anddelivery of newkinds of fun

Full-scale operation of new platform
Expansion of fan club services

BusinessstrategyEmpower Push into New Entertainment

Expand and strengthen business fields：①Strengthen businesses
aimed at mature fan base
Establishment of BANDAI SPIRTS CO., LTD.
Collectors figures

BANDAI

Plastic models

Lottery business

Online Marketing

New businesses

IP location

BANDAI SPIRITSBANPRESTOWork to accelerate business expansion through the rollout ofspecific brands for businesses aimed at mature fan base.
In doing so, become the No. 1 integrated hobby andentertainment company

Businessstrategy

Empower Push into New Entertainment

Expand and strengthen business fields：② Strengthen the live
entertainment business
Establishment ofBANDAI NAMCO Arts Inc.

Strengthen live events overseas
Strengthening of live events aimed
at overseas fans of Japanese IP
and anime songs
Creation of a multipurpose
facility in Shibuya, Tokyo
Bolstering the live entertainment
business through the management ofa Company-owned facility

Creation of new entertainment that fusesvisuals with music
Creation of IP with even deeper connections
between visuals and music

Full-scale entrance into e-sports
Take on challenges in new genresof games and live events

RegionstrategyGain Momentum with ALL BANDAI NAMCO

Initiatives for a regional axis structure
Full-scale expansion inthe Chinese market

Establish system

Promote business expansion in the Chinese
Market and undertake efforts underthe ALL BANDAI NAMCO concept
Establish a regional holding company in China (Shanghai)

BANDAI NAMCO Holdings CHINA CO., LTD
Establishment plans

Game company(Shanghai)

Toy company(Shanghai)

Visual and musiccompany(Shanghai)

Promote an IP axis strategy deeply rooted inlocal communities with the aim of becoming
the No. 1 entertainment companyEstablish a structure to promote theALL BANDAI NAMCO concept ineach area
Promote an integrated office structure
Hong Kong and the United Kingdom :Completion of an integrated office structure
China: Implementation slated to start from FY2019.3
Transition to a structure that implements theALL BANDAI NAMCO concept in other regions
as well

Promote the BANDAI NAMCO brandGradually unify our corporate markin each region

Personnel
strategy

Make Personnel the Core of the Group

Becoming a corporate group where employees with various
personalities can work in a lively and energetic mannerA group centered on human resource management,
particularly on entertainment and imagination
Cultivation of global human resources

IP creation and support forundertaking new businesses“Challenge” evaluation system

Utilization of a diverse groupof human resources

Efforts to reform work styles

Personnel exchangeCapital Policy (Shareholder Returns Policy)
Revise shareholder returns policy to place more emphasis on
capital costs and ROE【Current policy】

Based on stable annual per share dividend payments of ¥24,
aiming for a consolidated dividend payout ratio of 30%【Revised policy】

Based on stable annual dividend payments reflecting DOE 2%,
aiming for a consolidated dividend payout ratio of 50% or higher

Implement revised policy ahead of schedule,
staring with the year-end dividend for FY2018.3

Aim for 10 Years in the Future

Take on new challenges with a sense of urgency
and a high level of curiosity

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 basisof information currently available. The words “forecast,” “plan,” “target,” “estimation,”“projection,” “intend,” “will” and similar expressions, as related to the Group, are intended toidentify forward-looking statements and information. Actual results could differ materially fromthose projected in such forward-looking statements.

©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 ©創通・サンライズ ©& TM Lucasfilm Ltd. ©東映 ©バードスタジオ／集英社・フジテレビ・東映アニメーション ©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 Enetrtainment Inc.
©2011-2016 FromSoftware, Inc ©2002 MASASHI KISHIMOTO / 2007 SHIPPUDEN All Rights Reserved. ©BANDAI NAMCO Entertainment Inc. ©CAPCOM U.S.A., INC. ALL RIGHTS RESERVED. TEKKEN™7 &©BANDAI NAMCO Entertainment Inc.
©2016 REKI KAWAHARA/PUBLISHED BY KADOKAWA CORPORATION ASCII MEDIA WORKS/SAO MOVIE Project ©BANDAI NAMCO Entertainment Inc. ©Nintendo Licensed by Nintendo ©BANDAI NAMCO Entertainment Inc. ©BANDAI NAMCO Entertainment Inc.
Ⓒ2017 プロジェクトラブライブ！サンシャイン!! ⒸGIRLS und PANZER Finale Projekt ⒸBNOI/アイナナ製作委員会 Ⓒ2016 プロジェクトラブライブ！サンシャイン!! Ⓒプロジェクトラブライブ！サンシャイン!! ©アイドリッシュセブン

BANDAI NAMCO Group
Mid-term Plan
April 2018 to March 2021

Reference: Numerical Targets (by unit)
FY2021.3

billion yenFY2018.3
Segment sales

Forecast
215.0

Segment profit

15.0

Segment salesNetworkEntertainment Segment profit

380.0

Visual and Music Segment sales
production
Segment profit

50.0

Segment sales

30.0

Segment profit

1.0

Elimination and Segment sales
CorporateSegment profit-45.0

Toys and Hobby

OtherConsolidated

Net sales
Operating profit

36.0
12.0

-7.0

630.0
57.0

Full-year targets
for FY2021.3

Segment sales

275.0

Segment profit

20.0

Segment sales

310.0

Segment profit

41.0

Segment sales

130.0

Segment profit

8.0

Visual and Music Segment sales
production
Segment profit

40.0

Segment sales

18.0

Segment profit

6.0

Segment sales

32.0

Segment profit

1.0

Elimination and Segment sales
CorporateSegment profit-55.0

Toys and Hobby
NetworkEntertainment
RealEntertainment

IP
Creation
Other

Consolidated

Net sales
Operating profit

8.0

-9.0

750.0
75.0