BANDAI NAMCO GROUP
Information Meeting(Second Quarter of the Fiscal
Year ending March 2011)
November 5, 2010
NAMCO BANDAI Holdings Inc.
President & Representative Director

Shukuo Ishikawa

Table of Contents

1. FY2011.3 Performance --- 2
2. Business Strategies--- 71

1. FY2011.3 Performance

Transition of Results(billion yen)
FY2010.3
1st Half Results

Net Sales
Operating
IncomeRecurring
IncomeNet Income
CapitalExpenditures
Depreciation
R&D
Investments
Advertising
Expenses
Personnel
Expenses

FY2011.3
1st Half
PreviousForecasts

FY2011.3
1st HalfResults

YOYVS.
Previous
Forecasts

172.7

175.0173.5+0.8

-1.5

-2.6

1.5

5.0+7.6+3.5

-2.8

1.5

5.0+7.8

+3.5

-6.0

-3.5

-1.9+4.1+2.6

5.5

7.0

5.1

-0.4

-1.9

8.8

9.0

7.7

-1.1

-1.3

20.4

20.0

20.2

-0.2

+0.2

13.3

13.5

12.1

-1.2

-1.4

19.8

19.0

20.1

+0.3

+1.1

2

Transition of Results(billion yen)
FY2011.3
PreviousForecasts

FY2010.3
Results

Net Sales
Operating
IncomeRecurring
IncomeNet Income
CapitalExpenditures
Depreciation
R&D
Investments
Advertising
Expenses
PersonnelExpenses

FY2011.3
LatestForecasts

VS.
Previous
Forecasts

YOY378.5

400.0

400.0

+21.5

0

1.8

11.0

11.0

+9.2

0

1.9

10.5

10.5

+8.6

0

-29.9

4.5

1.8+31.7

-2.7

11.5

15.0

15.0

+3.5

0

18.9

20.0

20.0

+1.10

38.5

40.0

40.0

+1.50

29.5

32.0

32.0

+2.5

0

39.2

37.0

38.5

-0.7

+1.5

Results by Segment
Upper Cell : Net Sales
Lower Cell : Operating Income(billion yen)

FY2010.3
Results
1st Half

Toys andHobby
ContentAmusement
Facility
OthersCorporate andElimination
Consolidated

66.7
3.7
72.6
-6.433.7
1.0
8.80
-9.2
-1.0
172.7
-2.6

FY2011.3
Results / Forecasts

Full Year

148.8
10.7
166.7
-7.7
65.3
0.2
17.4
0.3
-19.8
-1.8
378.5
1.8

1st Half

72.2
7.0
71.4
-2.6
31.6
1.5
8.7
0.4
-10.3
-1.3
173.5
5.0

Full Year

155.0
9.5
184.0
3.5
63.0
1.0
19.0
0.5
-21.0
-3.5
400.0
11.0

YOY
1st Half

+5.5
+3.3
-1.2
+3.8
-2.1+0.5-0.1+0.4+0.8+7.6

Full Year+6.2
-1.2
+17.3
+11.2
-2.3
+0.8+1.6
+0.2
+21.5
+9.2

* FY2010.3 results for “Content” are the simple sum of the “Game Contents” and “Visual & Audio Content.”3

Results by Region
Upper Cell : External Sales
Lower Cell : Operating Income(billion yen)

FY2010.3
Results
1st Half

JapanAmericas
EuropeAsia
Corporate andElimination
Consolidated

FY2011.3
Results / Forecasts

Full Year

134.4
2.6
13.4
-3.8
17.8
-0.8
7.0
0.9
-1.5
172.7
-2.6

286.2
5.5
29.2
-3.3
45.9
-0.3
17.1
2.7
-2.7
378.5
1.8

1st Half

139.7
9.6
13.6
-1.8
13.5
-1.8
6.60.8-1.6
173.5
5.0

Full Year

308.0
18.0
35.0
-4.0
41.0
-1.0
16.0
1.5
-3.5
400.0
11.0

YOY
1st Half

Full Year+5.3+7.0+0.2
+2.0
-4.3
-1.0
-0.4
-0.1
+0.8
+7.6

+21.8
+12.5
+5.8
-0.7
-4.9
-0.7
-1.1
-1.2
+21.5+9.2* FY2011.3 figures are estimates based on management accounting.

Operating Performance by Segment
Toys and Hobby(billion yen)

FY2010.3
Results
1st Half

FY2011.3
Results / Forecasts

Full Year

1st Half

Full YearYOY
1st Half

Full Year

Operating Income

66.7
3.7

148.8
10.7

72.2
7.0

155.0
9.5

+5.5
+3.3

+6.2
-1.2

OP Margin (%)

5.6%

7.2%

9.8%

6.1%

--Net Sales

FY2011.3 1st Half

Japan: Established character toys such as Kamen Rider
and cards performed well.
Peripheral toys bounced back.
Overseas: Struggled mainly in the U.S.

4

Operating Performance by Segment
Toys and Hobby: 2nd half Topics
Accelerate our strategy of building
a dominant No.1 position in Japan.

Card▶Data Carddass

Installing
Installing newnewmachines.
machines.
GoodGood performance
performancecentering
centering onon
Kamen
Kamen Rider.
Rider.

Kamen Rider OOO
Better sales than the previous series,
attributable to a collaboration of toys
and peripheral items centered onmedals.

VooV▶Pro Baseball Owners League

Sold
Sold more
more thanthan
11 million
million units
units !!
Increasing
Increasing ourourshare
share inin vehicle
vehicletoy
toy market.
market.

Popular among adults aswell, thanks to a new
business model involving
a collaborating of cards
and networks.

Operating Performance by Segment
Content(billion yen)
FY2010.3
Results
1st Half

FY2011.3
Results / Forecasts
1st Half

Full Year

Full YearYOY
1st Half

Full Year

Operating Income

72.6-6.4

166.7
-7.7

71.4
-2.6

184.0
3.5

-1.2+3.8+17.3+11.2

OP Margin (%)

---

1.9%

--

Net Sales

FY2011.3 1st Half
Japan
Video Game Software: In a recovery trend, led by character games.
Arcade Game Machine: Good Performance centering on “Dead Storm Pirates”
and prize products.
Visual Package Software: Improved profitability due to the selection and focus.
Overseas
New video game software titles struggled.

5Operating Performance by Segment
Content: 2nd Half Topics

Thanks to the effects of the Restart Plan, domestic sales recovering,complementing underperformance of overseas.

Video Game Software: Main Titles (Japan)
GOD EATER BURST
Gaining
Gaining sharesshares inin
thethe newnew platforms.
platforms.

Gundam Musou 3

Arcade Game: Expanding actively into
the amusement market.
Strategic release of
popular character prizes.
Release the latest titles
Visual Package Software
for accomplishedGundam UC Vol. 2
game machines.
Selection and Focus.
Mobile Suit Gundam EXTREME VS.

Operating Performance by Segment
Amusement Facility(billion yen)

FY2010.3
Results
1st Half

FY2011.3Results / Forecasts

Full Year

1st Half

Full YearYOY
1st Half

Full Year

Operating Income

33.7
1.0

65.3
0.2

31.6
1.5

63.0
1.0-2.1+0.5-2.3+0.8

OP Margin (%)

3.1%

0.4%

4.8%

1.6%

--Net Sales

FY2011.3 1st Half
Recovering, with domestic same-store sales at 99%
and topping 100% since August.
Expand based on differentiated facilities characteristic of BANDAI NAMCO.
Build strength with sustained cost-cutting measures.
Existing Store Sales YOY (Japan)
1st Half

2nd Half

Full Year

FY2010.3 Results

89.7%

93.0%

91.2%

FY2011.3 Initial Plan

100%100%100%

FY2011.3 Results/Forecasts

99.0%

101%

100%6

Operating Performance by Segment
Amusement Facility: 2nd Half Topics
Business that takes advantage of BANDAI NAMCO’s strengths and thecharacteristics of each store.
Character campaign
Facility that offers the experience
Character package-typeamusement cornerof a character’s world

Pokémon Best
Wish Campaign▶Tie-up▶Tie-up withwith TV
TV Anime
Anime▶Tie-up▶Tie-up with
with Banpresto
Banpresto

Kamen
Kamen Rider,Rider, etc.
etc.

Reform of existing stores

Operation that takes
advantage of local
characteristics andfocuses on a certain target.
TheThe Shibuya
Shibuya store
store
thatthat collaborates
collaborates
withwith Egg
Egg magazine.
magazine.

2. Business Strategies

7Mid-term Business Plan: Initial Strategies

Business Strategy: Focus
Clarify mission for each business based on themarket environment and competitive advantage.

Toys and Hobby

Dynamic Growth BusinessGame Contents

Aiming for global growth mainly on
the US and European markets.

Visual and Music
Content

Profit Improvement Business
Aiming at improving profitability mainlyon domestic market.

AmusementFacility

Toys and Hobby
Initialstrategies◘ Building a dominant No.1 position in Japan◘ Developing a global business base for growth

Japan performing wellCurrent
condition

Expand share by appealing to new targets and categories.

Overseas struggling
Initial cost involved in expanding target/category
in the U.S. and Europe.

Continue aggressive expansion
Futurestrategies

Further accelerate on the positive trends of domestic performance.
Continue to invest actively in strengthening growth overseas.

8

Content
Initialstrategies◘ Maximizing content value◘ Developing a global base for growth
Promote measures based on the Restart Plan.

Current
condition

Japan
Video Game: Solid performance centering on small to mid-size titles.
Arcade Game: Sales of game machines and prizes going well due tothe revitalized amusement facility market.
Visual package: Improved profitability due to the selection and focus.
Overseas
Struggling mainly the new video game titles that we have challenged.

Futurestrategies

Change business model
Adapting promptly to the change of business environment.

Amusement Facility
Initialstrategies

Current
condition◘ Increasing profitability by efficient operations◘ Differentiated facilities with a competitive edge

Build strength with sustained cost-cutting measures.
Increase the customer base and improve sales
through the differentiation of stores characteristic
to BANDAI NAMCO.
Strengthen market position and launch a fresh attack

Futurestrategies

Stabilize profit with selection and focus,
as well as establish new profit drivers.

9Toys and Hobby
Continue aggressive expansion
Overseas: Preparing for the future growthHigh potential content, plus ourstrength (boys’ characters)

Expansion of target customers
and product categories▶POWER RANGERS
Release
Release ofof newnew TVTVseries
series andand products
products ininthethe U.S.
U.S. starting
starting 2011.
2011.
⇒⇒ Market
Market strongly
strongly
worldwide.
worldwide.

Expansion of areas▶Thundercats
AA newnew series
series ofof thethe popular
popular U.S.
U.S.
animation
animation fromfrom thethe 80s
80s will
will bebeshown
shown onon TV
TV fromfrom 2011.
2011.

MexicoMexico ⇒⇒ Latin
Latin America
America
PolandPoland ⇒⇒ Eastern
Eastern EuropeEuropeNew
New sales
sales companies
companies having
having good
good starts
startsContent
Change business model(1) Quality & Balance(2) Speed(3) Challenge10Content
Change business model (1) Quality & BalanceWorldwide New Titles

Release
Date

Score

Targets

Unit Sales
Forecasts

Metacritic（End of Oct.）

DEAD TO RIGHTS RETRIBUTION

2010 1H

61700K

350K

CLASH OF THE TITANS

2010 1H

41700K

250K

Enslaved: Odyssey to the West2010 2H

81

1,000K

800K

Majin And The Forsaken Kingdom

2010 2H-

1,000K300K

SPLATTERHOUSE

2010 2H-1,000K

350K▶Rework the organizational system for developing worldwide video game software.
Establish a Japan-led development system and take advantage of the Group’s strengths.
NARUTO Shippuden: Ultimate Ninja Storm 22010 2H76700K

1,000K

Ben 10 Ultimate Alien Cosmic Destruction2010 2H-700K800K▶Balance of titles
Try to seek a balance between franchise titles and challenge titles.

Content
Change business model (2) Speed
Speedy and timely supply of products and services.
▶Video Game Software

Title Name

Release
Date

Unit Sales
Forecasts

ONE PIECE GIGANT BATTLE !

2010.9300K

Kamen Rider Series (2 titles)

2010.7, 12300K

GOD EATER BURST

2010.10500K

AKB1/482010.12200K▶Prize for Arcade Machine▶Gather▶Gather andand analyze
analyze customer
customer needs.
needs.
▶Insist▶Insist onon announcements
announcements overover thethe web.
web.
▶Tie-up▶Tie-up between
between prizes
prizes andandlottery
lottery products.
products.

11

Content
Change business model (3) Challenge
For new market and customers:⇒Establish a new business model; acquire new customers.

▶Collaborate, in a way that matches the characteristics of the content.
MACCROSS F (Hybrid Pack)
Gundam UC (Unicorn)One
One package
package featuringfeaturing movie
movie(Blu-ray)(Blu-ray) andand Game
Game (PS3)(PS3)▶Acquire new customers throughthe promotion effect.

Vol.1:
Vol.1: 200K
200K units
units soldsold (BD&DVD)(BD&DVD)
Pre-orders
Pre-orders forfor thethe Vol.2
Vol.2 have
have also
alsobeen
been strong.
strong.
⇒Expand the strategy ofcollaboration across multiple media,
such as event showings, packages,
and the web to other content as well.

▶Acquire light users at new outlets for content.

Increase number ofusers by attracting
them through SNS.

Content
Change business model(1) Quality & Balance(2) Speed(3) Challenge

12Medium to Long-term Vision

Globally RecognizedEntertainment Group

Note on ProjectionsThis document contains forward-looking statements and information related to the BANDAI NAMCO Group thatare 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, asrelated to the Group, are intended to identify forward-looking statements and information. Actual results could
differ materially from those projected in such forward-looking statements.

••©2010 石森プロ・テレビ朝日・ADK・東映 ©石森プロ・テレビ朝日･ADK･東映ビデオ･東映 ©BANDAI 2008-2010•©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 2010
JR東日本商品化許諾済 JR東海承認済 JR西日本商品化許諾済 JR九州承認済 南海電気鉄道商品化許諾済 小田急電鉄商品化許諾済•京成電鉄株式会社商品化許諾済 ⒸDAIKIN.H.T., (社)日本野球機構承認 NPB BIS プロ野球公式記録使用•TM and ©SCG Power Rangers LLC ©2005 Zinkia Entertainment S.L.
•©2009-2010 Rainbow S.p.A.All rigths reserved Series created by lginio Straffi. © SUNRISE, Layup©Tinga Tinga Tales TM and © Tiger Aspect Productions Limited /Classic Media Distribution Limited 2009•
©RDF.Media Ltd/Armouron Ltd 2010.©AKS 2010 ©2010 NBGI ©2010 NBGI•
©創通・サンライズ ©尾田栄一郎／集英社・フジテレビ・東映アニメーション•©創通・サンライズ©創通・サンライズ・毎日放送 ©NANOHA The MOVIE 1st PROJECT•©2009 ビックウエスト／劇場版マクロスF 製作委員会 ©2010 NBGI ©NBGI ©２０１０ NAMCO BANDAI Games Inc.
•
©2010 石森プロ・テレビ朝日・ADK・東映 ©1976,2010 SANRIO CO., LTD.(H)•©Nintendo･Creatures･GAME FREAK･TV Tokyo･ShoPro･ JR Kikaku ©Pokemon

13