May 10, 20171billion yen
FY2016.3
results

FY2017.3
forecast

FY2017.3
results(as of February2017)

Vs. previous
year’s results

Vs. previous
forecast

Net Sales

575.5

590.0

620.0+44.5+30.0

Operating Profit

49.6

57.0

63.2

+13.6+6.2

Recurring Profit

50.7

57.0

63.2+12.5+6.2

Profit Attributable toOwners of Parent

34.5

39.0

44.1

+9.6+5.1

Capital Investments

21.3

21.0

19.5

-1.8

-1.5

Depreciation

21.6

23.0

21.8+0.2-1.2

Game Content
R&D Investments

54.5

58.0

59.0+4.5+1.0Advertising Expenses

37.7

41.5

39.3

+1.6-2.2

Personnel Expenses

50.4

51.0

53.6

+3.2+2.6

billion yen
FY2017.3
forecast

FY2016.3
results

Toys and Hobby
NetworkEntertainment
Visual and Music
production
Other
Elimination andCorporate
Consolidated(as of February2017)

FY2017.3
results

Vs.
previous
year’sresults

Vs.
previous
forecast

Segment sales

206.4

190.0

193.2

-13.2

+3.2

Segment profit

16.6

10.0

10.9

-5.7

+0.9

Segment sales

320.9

360.0

380.2

+59.3

+20.2

Segment profit

23.9

38.5

44.2

+20.3

+5.7

Segment sales

51.950.056.2

+4.3

+6.2

Segment profit

11.6

12.0

13.4

+1.8

+1.4

Segment sales

27.4

28.0

26.7

-0.7

-1.3

Segment profit

1.1

1.0

0.7

-0.4

-0.3

Segment sales

-31.2

-38.0

-36.5

-5.3

+1.5

Segment profit

-3.7

-4.5

-6.1

-2.4

-1.6

Net sales

575.5

590.0

620.0

+44.5

+30.0

Operating profit

49.6

57.0

63.2

+13.6

+6.2

2

Toys and Hobby
billion yen

Segment
sales

+3.2

・Foreign and domestic progress in line withinitial forecasts

Segment
profit+0.9

・Steady performance of new products
launched in 4Q related to new IP in Japan

Network Entertainment
・Network content: Favorable performance continues

Segment
sales+20.2

Segment
profit+5.7(full year sales: ¥158.6 billion, apps: ¥137.9 billion)

・Home video games: Positive performance of DRAGONBALLXENOVERSE 2 and strong repeat sales and download salesof home video game・Amusement machines: Return to profitability

Visual and Music Production
Segment
sales

+6.2

・Continued success of visual and music software
for the Love Live! Series

Segment
profit+1.4・Strong performance of sales associated with live
events in 4QToys and Hobby
billion yen

Segment sales-13.2

Segment
profit-5.7

Japan：Despite a favorable performance of establishedIP, decreased sales of Yo-kai Watch drove profits down

Asia

：Steady performance of Gundam plastic models
for adult customers

Americasand Europe：Advance promotion of Power Rangers

Network Entertainment
Segment sales+59.3

Segment
profit+20.3

Network content ：Mainstay titles performed positively in Japan and overseas
Home video game ：Contribution of worldwide titles, particularly in Europe
and the Americas
Amusement：Return to profitability in the amusement machine businessand steady performance of existing facilities in Japan

Visual and Music Production
Segment sales+4.3

Segment
profit+1.8

Love Live !
GIRLS undPANZER
Mobile Suit
Gundam：Continued popularity due to favorable performance ofnew series：Expanded popularity of IP, particularly the theatrical version：Stable popularity of THE ORIGIN series, etc.

3End of second
quarter

FY2016.3Year-EndTotal

FY2017.3 Dividend

¥12

¥70

¥82

FY2017.3 forecast(as of February
2016)

¥12

¥42

¥54

FY2016.3 Dividend

¥12

¥40

¥52

Dividend Policy
Maintain a base level of annual dividend payments of ¥24 per share and aconsolidated dividend payout ratio of 30%

Interim ¥12 Year-end ¥70
Stable dividend ¥24+ Performance-based dividend ¥38＋ Special dividend ¥20

4billion yen
FY2017.3
First half

FY2018.3
Full-year

First-half plan

Full-year plan

Net Sales

294.5

620.0

275.0

600.0

Operating Profit

38.9

63.2

22.5

57.0

Recurring Profit

38.2

63.2

23.0

58.0

Profit Attributable toOwners of Parent

30.1

44.1

16.0

40.0

Capital Investments

9.4

19.5

9.5

21.0

Depreciation

9.4

21.8

10.0

23.0

Game Content
R&D Investments

27.1

59.0

27.0

59.0Advertising Expenses

16.4

39.3

17.0

42.0

Personnel Expenses

25.7

53.6

25.0

52.0

Note: Roughly ¥3.0 billion in strategic investment related to IP planned for FY2018.3

billion yen
FY2017.3
First half

Toys and Hobby
NetworkEntertainment
Visual and Music
Production
Other
Elimination andCorporate
Consolidated

FY2018.3 Plan

Full-year

First-half plan

Full-year plan

Segment sales

91.1

193.2

100.0

215.0

Segment profit

6.9

10.9

6.0

15.0

Segment sales

179.7

380.2

160.0

350.0

Segment profit

25.8

44.2

14.0

36.0

Segment sales

27.5

56.2

20.0

50.0

Segment profit

8.0

13.4

5.0

12.0

Segment sales

13.0

26.7

15.0

30.0

Segment profit

0.5

0.7

0.5

0.1

Segment sales

-16.8

-36.5

-20.0

-45.0

Segment profit

-2.5

-6.1

-3.0

-7.0

Net sales

294.5

620.0

275.0

600.0

Operating profit

38.9

63.2

22.5

57.0

5

Toys and Hobby (vs. previous year’s results)
・Prizes and lottery business integrated into the
Toys and Hobby Business (FY2017.3 performance: roughly ¥25.0 billion)
・Strengthening of established mainstay IP and products foradult customers in all regions
・Depreciation cost of DATA CARDDASS machines on a parwith previous fiscal year
・Promotional costs for Power Rangers products in Europe andthe Americas in the second half of the previous year

Network Entertainment (vs. previous year’s results)
Network content

・With stable popularity in mainstay titles,
outlook is on a par with previous year’s performance
・Initial costs and increased advertising and promotional expenses associatedwith introducing new titles
・Upfront investment to set up new services

Home video game・Impacts of title lineup
Previous FY: The release of DARK SOULS III in April was a big contributor in thefirst half, particularly 1Q. New worldwide titles performed wellthroughout the year.

Amusement

・Active opening of amusement facilities in Japan and overseas
・Upfront costs associated with establishing a VR facility
・Prizes and lottery business integrated into the Toys and Hobby Business6

Visual and Music Production (vs. previous year’s results)
・Impacts of major IP title lineup, such as Mobile Suit Gundam,
Love Live! Sunshine!!, and GIRLS und PANZER
Previous FY: Contribution throughout the year from new titles andthe introduction of core products in the first half
Current FY: Next volume of Mobile Suit Gundam THE ORIGIN
release planned for September
Second season of Love Live! Sunshine!! anime starting in the fall
First episode of the final GIRLS und PANZER OVA tobe released in December

7Consistently achieve
Net sales of ¥500 billion
Operating profit 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

Conducting strategic investment to promote focus strategies
FY2016.3-2017.3: roughly ¥10.0 billion FY2018.3: ¥6.0 billion projectedStrengthened innovation in established IPIntegration of IP and leading-edge
technologies

Expansion of global development

Growth of new IP outlet

8Promoting focus strategies
Business Strategies

Accelerate evolution in the IP axis strategy

Region Strategies

Through the IP axis strategy,
gain momentum in global markets

Function Strategies

Empower and innovate business model through
BANDAI NAMCO market advantages

Further growth through the next Mid-term Plan
Continuous, long-term growth

9JapanMaximizing established IPFor boys / For girls

Mobile Suit Gundam
Stirring excitement among fansin Japan and overseas
Improving IP brand equity

Start of new series ofUltraman and Yo-kai
WatchTarget and category expansion
DRAGON BALL

Adult customers and adult womenStrengthening DATA CARDDASS

Developing new categories

Overseas
Strengthening mainstay IP in Europe
and the Americas

Strengthening our approach toadult customers

TV series and theater pieces
Maximizing IP equity

Strengthening the IP lineup

Full-scale introduction ofaction figures designed forEurope and the Americas

Expanded development of
Gundam plastic models, which
are successful in Asia
Japan-originated businessactivities simultaneously in Asia

Accelerating the introduction ofDRAGON BALL products inEurope and the Americas
Developing for a wide range ofages and prices

Expansion of IP andareas of operation

10Network content

Home video gameStabilization and growth of mainstay titles

Introduction of major titles for aworldwide audience【Worldwide】【Japan】

Tekken 7

ACE COMBAT 7SKIES UNKNOWN

Take on the challenge of releasing IP
games of foreign origin
Actively taking on new platforms
Titles for the Nintendo Switch+ Development and introduction of new titles
THE IDOLM@STER: Million Live!

DRAGON BALL XENOVERSE 2 (tentative)
TAIKO: DRUM MASTER
Tales of... Series, etc.

Promoting customer creation by taking on challenges in new domains
New business creation

Amusement Machines
New development in the VR business
VR ZONE SHINJUKU
Full-scale development inCreating new services
using AI technology, etc.

the gaming business
New services integrating
physical and online services

Life EntertainmentBusiness

Amusement Facilities
Stable operations of existing
stores

The challenge of newenterprises

AM store

TONDEMI

Extending the IP worldview+α
PAC-STORE

11

Strengthening our IP portfolio

Mobile Suit Gundam: The Origin
Battle of LoumEdition

Love Live! Sunshine!!
season 2

GIRLS und PANZER
first episode of the final OVA

The Bears’School
15th anniversary movie

IDOLiSH7
Space BattleshipYamato 2022:
Warriors of Love

In this Corner of the World

Strengthening IP production from B to C

Commence Anison fixedrate downloadable service

Actively develop live events inJapan and overseas

Expand fan club apps

Expand multidimensional businessdevelopment

12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 ofinformation currently available. The words “forecast,” “plan,” “target,” “estimation,” “projection,”“intend,” “will” and similar expressions, as related to the Group, are intended to identify forwardlooking statements and information. Actual results could differ materially from those projected in suchforward-looking statements.

©2017テレビ朝⽇・東映AG・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 ©BANDAI NAMCO Entertainment Inc. ©2016 プロジェクトラブライブ！サンシャイン!! ©Hit-Point ©CAPCOM U.S.A., INC. ALL RIGHTS RESERVED. TEKKEN™7 & ©BANDAI
NAMCO Entertainment Inc. ©創通・サンライズ ©GIRLS und PANZER Film Projekt ©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 ©BIRD STUDIO / SHUEISHA, TOEI ANIMATION ©BANDAI NAMCO Entertainment Inc. ©創通・サンライズ・MBS©BANDAI NAMCO Entertainment Inc. ©2011-2016 FromSoftware, Inc. ©藤巻忠俊／集英社・舞台「⿊⼦のバスケ」製作委員会 ©ABC-A・東映アニメーション ©2016⽯森プロ・テレビ朝⽇・ADK・東映 ©円⾕プロ ©ウルトラマンジード製作委員会・テレビ東京 ©L5/YWP・TX ©&™
Lucasfilm Ltd. ©バードスタジオ／集英社・東映アニメーション ©2016 BANPRESTO CO., LTD. ALL RIGHTS RESERVED. TM & Toei & SCG P.R. ©2016 SCG Power Rangers LLC. ©⾞⽥正美／「聖闘⼠星⽮ ⻩⾦魂」製作委員会 ©尾⽥栄⼀郎／集英社・フジテレビ・東映アニメー
ション ©BANDAI NAMCO Entertainment Inc. ©2016 川原礫/KADOKAWA アスキー・メディアワークス刊/SAO MOVIE Project ©BANDAI NAMCO Entertainment Inc. Developed by Wright Flyer Studios ©アイドリッシュセブン All trademarks and copyrights associated with themanufacturers, aircraft, models, trade names, brands and visual images depicted in this game are the property of their respective owners, and used with such permissions. © 2004 -2015 EPIC GAMES, INC. ALL RIGHTS RESERVED. Unreal, the circle-U logo and thePowered by Unreal Technology logo are trademarks or registered trademarks of Epic Games, Inc. in the United States and elsewhere. trueSKY™Copyright ©2015 Simul Software Ltd. ©BANDAI NAMCO Entertainment Inc. PAC-MAN®VIDEO SLOT WILD EDITION &©2017 BANDAI NAMCO Entertainment Inc. ©2017 BANDAI/The Bears’ School Movie Project ©2017 GenkiKawamura & KenjiroSano / Tinny Movie Project ©⻄﨑義展/宇宙戦艦ヤマト2202製作委員会 ©こうの史代・双葉社/「この世界の⽚隅に」製作委員会

13

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