BANDAI NAMCO GROUP
Information Meeting(Second Quarter of the Fiscal
Year ending March 2012)
November 2, 2011

NAMCO BANDAI Holdings Inc.
President & Representative Director

Shukuo Ishikawa

Table of Contents

1. FY2012.3 Performance
2. Business Strategies

11. FY2012.3 Performance

1st Half Results(billion yen)
FY2011.3
1st half
results

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

FY2012.3
1st half
Previous Forecasts

FY2012.3
1st halfresults

YOY

VS. PreviousForecasts

173.5

178.0

194.2+20.7+16.2

5.0

6.5

15.7+10.7+9.2

5.0

6.5

15.9+10.9+9.4

-1.9

3.2

8.0+9.9+4.8

5.1

6.0

5.3+0.2

-0.7

7.7

9.0

8.3+0.6-0.7

20.2

19.0

19.0

-1.2

0

12.1

12.0

13.2

+1.1+1.2

20.1

19.5

20.8+0.7+1.3

2

Full Year Forecasts(billion yen)
FY2011.3
Full Year
Results

FY2012.3
Full Year
Previous Forecasts

FY2012.3
Full YearForecasts

VS. PreviousForecasts

YOY

Net Sales

394.1

400.0

420.0

+25.9+20.0

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

16.3

16.5

25.0+8.7+8.5

16.3

16.5

26.0+9.7+9.5

1.8

8.0

15.0+13.2

+7.0

10.7

15.0

15.0+4.30

18.0

21.0

21.0

+3.0

0

40.1

38.0

38.0

-2.1

0

28.7

30.5

32.5

+3.8

+2.0

40.3

39.5

42.0

+1.7+2.5

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

FY2011.3
Full Year
Results

Toys and Hobby
Content
Amusement
FacilityOthers
Corporate andElimination
Consolidated

FY2012.3
Full Year
Previous Forecasts

FY2012.3
Full Year
Forecasts

1st Half

Full Year

1st Half

Full Year

1st Half

72.2
7.0
71.4
-2.6
31.6

158.3
13.8
179.9
3.0
62.3

75.0
7.0
72.0
-1.0
31.0

160.0
10.5
180.0
6.5
61.0

1.5
8.7
0.4
-10.3
-1.3
173.5

1.7
18.5
0.8
-24.9
-3.1
394.1

1.5
11.0
0.7
-11.0
-1.7
178.0

5.0

16.3

6.5

YOY

1st Half

Full Year

81.6
8.9
86.7
5.3
31.3

168.0 +9.4
15.0 +1.9
205.0 +15.3
10.5 +7.9-0.3
61.0+9.7+1.2+25.1+7.5
-1.3

1.5
21.0
0.5
-22.0
-2.5
400.0

1.8
11.5
1.0-16.9
-1.5
194.2

2.0 +0.3
24.0 +2.8
1.2 +0.6-6.6-38.0-3.7-0.2
420.0 +20.7

+0.3
+5.5
+0.4
-13.1
-0.6
+25.9

16.5

15.7

25.0 +10.7+8.7

Full Year3

Results by Segment Toys and Hobby(billion yen)
FY2011.3
Results

FY2012.3
Results/Forecasts

YOY

VS. Previous Forecasts

1st Half

Full Year

1st Half

Full Year

1st Half

Full Year

OP

72.2
7.0

158.3
13.8

81.6
8.9

168.0
15.0+9.4+1.9+9.7+1.2+6.6+1.9+8.0+4.5

OP Margin(%)

9.8%

8.7%

11.0%

8.9%

----Net Sales

1st Half

Full Year

Difference from the previous
forecasts for 1st half

Summary of business results for 1st half of FY 2012.3
2012.3
Japan:
Sales of long-established character toys, such as
Kamen Rider, Super Sentai, etc., were strong.
Sales of card merchandise, such as digital cards,were robust.

Sales of Super Sentai andKamen Rider products
exceeded the forecast byaround 4 billion yen.

Overseas: A new series of Power Rangers made a good startin North America.
Sales remained steady in Asia.
Sales were sluggish under the harsh businessenvironment in Europe.

Sales of digital cards reached
120 million units, beating theforecast of 100 million units.

Results by Segment Content(billion yen)
FY2011.3
Results
Net Sales
OPOP Margin(%)

FY2012.3
Results/Forecasts

YOY

VS. Previous Forecasts

1st Half

Full Year

1st Half

Full Year

1st Half

Full Year

71.4
-2.6

179.9
3.0

86.7
5.3

205.0
10.5

+15.3
+7.9

+25.1
+7.5

+14.7
+6.3

+25.0+4.0

-1.7%

6.2%

5.1%

----

Summary of business results for 1st half of FY 2012.3
2012.3
Arcade games: Sales of arcade game machines, both newand existing, were strong. Sales of prizes were good.
Video games software: Sales of small and medium-size
titles achieved their targets in Japan.
Network: Decline in the number of conventional
mobile subscribers counterbalanced by growth in social
game subscribers.
Visual and music content: Gundam UC andTIGER & BUNNY gained popularity.

1st Half

Full Year

Difference from the previous
forecasts for 1st half
In the domestic video gamesoftware business, sales ofseveral titles were successful.
Sales of arcade game machines and prizes maintained
strong momentum.
Visual package software
became hits.

4Results by Segment Amusement Facility(billion yen)
FY2011.3
Results

FY2012.3
Results/Forecasts

1st Half

Full Year

OP

31.6
1.5

62.3
1.7

OP Margin(%)

4.8%

2.9%

Net Sales

1st Half

YOY

VS. Previous Forecasts

Full Year

1st Half

Full Year

1st Half

31.3
1.8

61.0
2.0-0.3
+0.3

-1.3
+0.3

+0.3
+0.3

0+0.5

6.0%

3.3%----

Full Year

Summary of business results for 1st half of FY 2012.3
2012.3
1st quarter: Sales were strong due to “Cheap, Close, and Short” leisure demand.
2nd quarter: Business suffered some negative effects from the implementation of rolling
holidays associated with the electricity-saving campaign.
Year-on-year existing store sales in JapanApr.

MayJun.

1Q

Sep.

Aug.

Sep.

2Q

1st Half

109.4%

108.2%

105.8%

107.9%

101.8%

96.1%

101.7%

99.4%

103.3%

2. Business Strategies

5Transition of Results(billion yen)
FY2010.3

Full Year

FY2011.3
1st Half

FY2012.3
Full Year
1st HalfForecasts

Full YearNet Sales

378.5

173.5

394.1

194.2

420.0

Operating
IncomeRecurring
IncomeNet Income

1.8

5.0

16.3

15.7

25.0

1.9

5.0

16.3

15.9

26.0

-29.9

-1.9

1.8

8.0

15.0

Net Sales

Operating Income

5,000
500

500
50

4,000
400

400
40

3,000
300

300
30

2,000
200

200
20

1,000
100

100
1000

00
07.3

08.3

09.3

10.3

11.3

12.3

07.3

08.3

09.3

10.3

11.3

12.3

Toys and Hobby Building a dominant No.1 position in Japan
Further strengthen sound business base by focusing on established character toys

Kamen Rider Fourze

Mobile Suit Gundam AGE

Made a good start,
maintaining momentumof Kamen Rider OOO.

Gokaiger (Power Rangers)
Maintain strong
performance due toa strong tie-up withTV program.

Make the best use of advantages fromtie-ups among the categories.

Step up marketing efforts for new targets(primary school students).

Tamagotchi

Market 15th anniversary goods.
Aim to build into established products
through tie-ups with animation programs.

6Toys and Hobby Building a dominant No.1 position in Japan
ＦＡｇｅ 0357912Ｍ

15203040
Expand the market share of card merchandise
and reach new target demographics.
demographics.

Digital Card GameThe Little Battlers

Widen customer age groups by putting newcontents into the market.

Solid plastic model sales !

Toys for higher age group

Carry out a cross-media marketing oftoys, games, animation, and comics.

Expand sales mainly for high value added toys.

Toys and Hobby Improving overseas business bases for growth
U.S.

EuropeThunderCats made a good start.
Power Rangers maintains good
performance.
Stores handling Power Rangers
toys are increasing for theChristmas holidays.
Production of new series in thenext fiscal year has started.

The broadcast of the Power Rangers
SAMURAI TV program is startingin several European countries,
and contribution to the next FYis expected.

Asia
Promote sales by strengthening tieswith Japan.

Promote merchandise for high-end
market segment

Aim to achieve higher growth in FY2013.3 !

7

Content

Maximizing content value

Arcade Game Machine
Generate synergy effects with the Amusement Facility SBU by introducing popular
arcade game machines and prizes.
TEKKEN TAG TOURNAMENT 2
Mobile Suit Gundam Senjo no Kizuna
WANGAN MIDNIGHT MAXIMUM TUNE 4
Good performance including repeat sales.
＋Secure stable earnings under the new business model.
Sales of prizes, mainly ONE PIECE,Moekei, and Otomekei
continue to be strong.

⇒Strengthen promotionin Asia.

ContentMaximizing content value
Upgrade contents for social games and explore possible
expansion to overseas while the number of fee-paying
subscribers is decreasing.

NetworkGUNDAM ROYALEGUNDAM MASTERS(Mobage)(GREE)

More than
3 million members
Offer series of new contents

More than
1 million members

Establishment ofBDNA Inc.
Focus on contents forsmart phones.
Expand businessoverseas.

Kamen Rider, Power Rangers, Idol Master, Tales series, Tamagotchi, etc.

Visual & Music Content

Expand business by offering existing contents and new contents.

Mobile Suit Gundam series
Release package software ofGundam AGE.
Gundam UC episode 4:
Event movies, VOD service, and Blu-ray
package sales started from Nov. 12.
(episode 1 – 3: More than 200K units
sold per each.)

TIGER & BUNNYNEXT PROJECT starts.
Sales of CDs of songs
played in the animation
are strong. (Lantis)

8Content

Maximizing content value

Improve quality and shorten the lead time by shifting todomestic development.
Solid sales of small and medium-size
Achieve steady sales of overseas video games
titles in Japan.
by narrowing down the number of titles.

Video Game Software

Title NameGroupGroup-wide Project
Establish network strategy
based on the medium tolong-term view.

Platform Region Unit Sales

ONE PIECE UNLIMITED CRUSE SP

1st half

3DS

Japan

240K

TALES OF XILLIA

1st half

PS3

Japan

750K

AKB1/48 2

1st half

PSP

Japan

ACE COMBAT ASSAULT HORIZON

2nd half

DARK SOULS

2nd half

BEN10

2nd half

Multi

US, Europe

600K

MOBILE SUIT GUNDAM EXTREME VS.

2nd half

PS3

Japan

500K

PS3,Worldwide
XB360
PS3,Worldwide
XB360

450K
1,500K
1,500K

Amusement Facility Development of differentiated facilities
Promotions unique to BANDAI NAMCO utilizing popular characters.
Character package-type amusement facilities perform well.

Launch character campaigns according to
the characteristics of each store.

Events at NAMCO NAMJA TOWN.

9Our Mission Statement

Dreams, Fun and Inspiration
Our Vision

The Leading Innovator in
Global Entertainment

Note on Projections
This 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, as
related 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.

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