BANDAI NAMCO GROUP
Fiscal year ended March 2015
2nd Quarter Results Presentation
November 6, 2014
BANDAI NAMCO Holdings Inc.
President & Representative Director
Shukuo Ishikawa

FY2015.3 1st Half Results

1billion yen
FY 2014.3 1st
Half Results

FY 2015.3 1st
Half Forecast(end of 1Q)

FY 2015.3 1stHalf Results

Vs.Forecast(end of 1Q)

Net Sales

228.5

255.0

259.3

+30.8

+4.3

Operating
IncomeRecurring
Income

26.3

25.0

31.8

+5.5+6.8

28.5

25.0

33.3+4.8+8.3

Net Income

19.6

16.0

21.2

+1.6+5.2

CapitalExpenditures

10.9

7.0

8.5

-2.4+1.5

Depreciation

9.1

10.0

10.4+1.3+0.4

R&D
Investments
Advertising
Expenses
Personnel
Expenses

23.3

22.0

25.7+2.4+3.7

14.8

17.0

17.0+2.2

0

22.8

22.5

23.8

+1.0+1.3

YOYbillion yen
FY 2014.3 1st
Half Results

FY 2015.3 1st
Half Forecast(end of 1Q)

FY 2015.3 1st
Half Results

80.7
5.4
123.0
21.7

100.0
7.0
130.0
18.0

106.3
9.7
130.4
22.1+25.6+4.3+7.4+0.4+6.3+2.7+0.4+4.1

Amusement
Facility

29.230.027.9-1.3-2.1

Other-0.1
12.88
120.8

0.5
12.00
120.5-0.1
13.44
130.9

0+0.66+0+0.1-0.6+1.44+1+0.4

Corporate andElimination

-17.4

-17.0

-18.9

ーー

Consolidated

-1.5
228.5
26.3

-1.0
255.0
25.0

-0.7
259.3
31.8ー
+30.8+5.5ー
+4.3
+6.8

y and Hobby
yToys
Content

Vs.Forecast(end of 1Q)

YOY2

Toys and Hobby
JapanOverseas

Established IP favorable+ Yokai Watch favorable→Yokai Watch first-half sales:¥22.5 billion

Content

Home video game software
U.S. and Europe:
DARK SOULS II remains hit
Japan:
Centered on small and medium-sized titles
NetworkApps: Existing titles’ steady performances+ new hit titles

Asia: Favorable centered onGundam products
U.S. and Europe:
Preparation for yearend sales
seasonArcade game machineFirst half: According to plan overall
Prizes: Weak yen affects costs
Visuali l & Musici Content
Original IP -related visual content,
music, and live performancesfavorable

Amusement Facility

Sales of existing amusement facilities in Japan decline 9.5% year on year
Efforts to build new pillars, such as taking on challenge of new business formats

FY 2014.3
Results

FY 2015.3
Forecast(end of 1Q)

FY 2015.3
Forecast

billion yen
Vs. Forecast(end of 1Q)

YOY

Net Sales

507.6
507 6

500.0
500 0

520.0
520 0

+12.4+12 4+20.0+20 0

Operating
IncomeRecurring
Income

44.6

45.0

50.0

+5.4

+5.0

47.4

45.0

52.0+4.6+7.0

Net Income

25.0

28.0

30.0

+5.0+2.0

CapitalExpenditures

23.4

18.0

18.0

-5.40

Depreciation

21.7

23.0

23.0

+1.30

R&D
Investments
Advertising
Expenses
Personnel
Expenses

51.846.0

48.0

-3.8

+2.0

38.0

36.0

38.0

0+2.0

47.7

46.0

48.0

+0.3

+2.0

3

billion yen

Top row: Segment sales/Bottom row: Segment income
上段：売上高下段：セグメント利益

FY 2014.3
Results

FY 2015.3
Forecast(end of 1Q)

FY 2015.3
Forecast

Vs.Forecast(end of 1Q)

YOY

186.3
10.5
278.4
37.2

200.0
13.0
260.0
32.0

210.0

+23.7

＋10.0

16.0

+5.5

＋3.0

270.0
35.0

-8.4
-2.2

＋10.0
＋3.0

Amusement
Facility

58.2

60.0

58.0

-0.2

-2.0

OthOther-0.8
27.3
273
1.6

1.0
25.0250
1.00.525.00
251.0+1.3-2.3
23-0.6-0.500

Corporate andElimination-42.6-45.0-43.0--Consolidated

-3.8
507.6
44.6

-2.0
500.0
45.0

-2.5
520.0
50.0

＋12.4
＋5.4

+20.0
+5.0

Toys
y and Hobby
yContent

Toys and Hobby

Segment sales
Segment income

FY 2014.3
Results

186.3
10.5

FY 2015.3
Forecast(end of 1Q)

200.0
13.0

FY 2015.3
Forecast

210.0
16.0

YOY+23.7+5.5

Vs. Forecast(end of 1Q)

+10.0
+3.0

→Although favorable trends of year-end / new-year shopping season expected to continue,
cost burden likely to accompany second-half changeover of established IPContent

Segment sales
Segment income

FY 2014.3
Results278.4
37.2

FY 2015.3
Forecast(end of 1Q)

260.0
32.0

FY 2015.3
Forecast

270.0
35.0

YOY-8.4-2.2

Vs. Forecast(end of 1Q)

+10.0
+3.0

→Network content: Plan to introduce strategic titles/Home video game software: Title lineup
lineup’ss
off-season / Visual and music content: Will center on new titles
Amusement
Facillity

Segment sales
Segment income

FY 2014.3
Results58.2-0.8

FY 2015.3
Forecast(end of 1Q)

60.0
1.0

FY 2015.3
Forecast

58.0
0.5→Through various measures will target catch-up at yearend / new year

YOY-0.2+1.3

Vs. Forecast(end of 1Q)

-2.0
-0.5
billion yen4

JapanContinuing to vigorously advance our strategy of having
overwhelming No.1 position【【EstablishedIP】】
Recording good starts by newprograms

Strengthening promotions foryear-end / new year

【N IP】【NewAiming to make established IP long-lasting
through cross-media strategy

Strengthening / expanding / improving IP
lineup further
Strengthening
Taking on thefemale customer
challenge ofgroup
Disney IP5U.S. and Europe
Expanding and improving IP witha view to next medium-term plan
【Power Rangers】
Strengthening promotions and sales-area creation

Asia
Expanding steadily
Gundam products and products
for older customers favorable
Synchronizing
throughout
Japan and Asia

U.S.: February next year
~ Plan to air newprogram

E
Expandingdi IP andd regionsi【New IP】
Expanding IP and sales areas
Expanding into
Southwest Asia

Advancing IP-based strategy further
Network【Application game】
Increasing titles steadily
Introducing new strategic titles【Overseas】
Accumulating experience andresults and expanding in medium
term【Application game】
Planning to introduce ONE PIECE,
THE IDOLM@STER, Gundam, etc.
in future【SNS】

Managing mainstay titles steadily【PC online game】
Beginning services for NARUTO,Gundam, etc

6Advancing IP-based strategy further
Visual and Music content【【Musici / Livei performance】
f】【【Visual】】
Continuing to roll out
powerful established IP

Taking on thechallenge of newIP

Establishing music content andlive performance businesses aspillars

Going on a world tour!
Planning to hold events in six
cities—including Singapore,Taipei, Seoul, Hong Kong, andLas Vegas—beginning inJanuary 2015

Content SBU
Advancing IP-based strategy further
Home video gameConductingg
multifaceted rollouts oforiginal IP

Arcade game machine
Popularpexistingg series+ New platforms,
genres, and IP

Catering to diverse sales
formats
Helping attract customers
through appealing equipment
and prizes【Main titles (2nd Half)】
GOTOUCHI TESUDO

3DS・WiiU

Nov.

Rolling out worldwide

Tales of Zestiria

PS3Jan.

GOD EATER ２ RAGE BURST

PS4・PSVITAFeb.

DRAGON BALL Z XENOVERSE

PS4・XBoxONE・
PS3・XBox360

Feb.

Beginning operationsin 2015
STAR WARSBATTLE POD

7

Achieving a recovery for existing amusement facilities + Building
new pillars of business【Amusement Facility in Japan】
Focusing on large amusement facilities
in SC【Taking on the challenge of newbusiness formats】

Anime song
×restaurant

Changing from a uniform management
style to a personal management style foreach amusement facility
Equipment, prizes, and services thatreflect regions and user groups

Puzzle-solving
game×restaurant【Overseas】【【Themepark】】
Implementing IP measures that heighten
appeal of amusement facilities

In J-WORLD TOKYO

Level 257: PlLevel 257:
Planning to open inJanuary 2015
planning to open inJanuary 2015

Opening entertainment facility themed on
PAC-MAN in Chicago, the U.S.

Topics【Creating original IP】【Distributing anime overseas】
Anime Consortium Japan Inc.

In-house
hproposal-collection
l ll isystem aimed at fostering
original IP creation
Proposals received
First time: 160 proposals→ Ultimately 5 proposals displayed attrade showsSSecondd titime: M
More ththan 100 proposals
lStrengthening original IP andother companies’ powerful IP

Executive vice president &representative
i director
dioff
BANDAI NAMCO GamesInc., Shin Unozawa,appointed president (holdingposts concurrently)

Will conduct Japanese anime content
streaming and e-commerce operations
targetinggg overseas markets
By receiving investment from CoolJapan Fund Inc. and distributing anime
overseas as one of Japan’s culturalflagships→ Aim to increase anime fans8

Aims of next medium-term management plan

Consistently achieve
S l off ¥500 billi
Salesbillion
Operating income of¥50 billion
Requirements for advancing to the next stage
Make extensive mutual use of individuality and expertise
Take maximum advantage of BANDAI NAMCO’s
combined strength

BANDAI NAMCO GROUP
Fiscal year ended March 2015
2nd Quarter Results Presentation
November 6, 2014
BANDAI NAMCO Holdings Inc.
President & Representative Director
Shukuo Ishikawa

9Note on Projections
This document contains forward-looking statements and information related to theBANDAI NAMCO Group that are based on our knowledge as well as variousassumptions
timaded on theth basis
b i off information
i fti currentlytl available.
il bl ThThe words
d“forecast,” “plan,” “target,” “estimation,” “projection,” “intend,” “will” andsimilar expressions, as related to the Group, are intended to identify forwardlooking statements and information. Actual results could differ materially fromthose projected in such forward-looking statements.

©L5/YWP・TX ©創通・サンライズ ©2014石森プロ・テレビ朝日・ADK・東映 ©創通・サンライズ・テレビ東京 ©SUNRISE/BANDAI,DENTSU,TV TOKYO ©BANDAI,WiZ ©Diseny ©Diseny ©武内直子・PNP・東映アニメーション ©Naoko Takeuchi TM & ©2014 SCG Power Rangers
LLC. TM & ©2015 SCG Power Rangers LLC.
©車田正美／集英社・東映アニメーション © 2014 RCTI/ISHIMORI Production Inc. © Warner Bros. Entertainment Inc. © Legendary All Rights Reserved.GODZILLA and the character design are trademarks of Toho Co.,Ltd.©BANDAI NAMCO Games Inc. ©荒木飛呂彦/集英社･ジョジョの奇妙な冒険製作委員会 ©荒木飛呂彦&LUCKY LAND COMMUNICATIONS/集英社･ジョジョの奇妙な冒険SC 製作委員会 © BANDAI NAMCO Games Inc. ©尾田栄一郎／集英社・フジテレビ・東映アニメーション © BANDAI NAMCO Games Inc.
©創通・サンライズ ©窪岡俊之 © BANDAI NAMCO Games Inc ©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 Games Inc.
STAR WARS © & ™ 2014 Lucasfilm Ltd. All rights reserved. ©バードスタジオ/集英社・フジテレビ・東映アニメーション ©LV5/YWP・TX ©BANDAI NAMCO Games Inc.
©Eiichiro Oda/Shueisha, Toei Animation ©BANDAI NAMCO Games Inc. ©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 Games Inc.
©BANDAI NAMCO Games Inc.©創通・サンライズ ©2013プロジェクトラブライブ！ ©SUNRISE/BANDAI,DENTSU,TV TOKYO©創通・サンライズ・MBS ©霧弥湖町観光協会 ©石川雅之・講談社／純潔のマリア製作委員会©LV5/YWP・TX ©藤巻忠俊／集英社・黒子のバスケ製作委員会

10