November 8, 2016
Mitsuaki Taguchi
President and Representative Director
BANDAI NAMCO Holdings Inc.

1billion yen
FY 2016.3
1st Half
Results

FY 2017.3
1st Half forecast(end of 1Q)

FY 2017.3
1st Half
Results

Vs. previous Vs. previous
year’s results
forecast

Net Sales

272.7

290.0

294.5

+21.8+4.5

Operating Income

31.1

32.0

38.9+7.8+6.9

Recurring Income

33.2

32.0

38.2

+5.0+6.2

Net Income Attributable toShareholders of the Parent

22.7

24.0

30.1+7.4+6.1

Capital Investments

9.99.09.4-0.5+0.4Depreciation

9.7

11.0

9.4

-0.3

-1.6

R&D Investments

27.0

25.0

27.1

+0.1

+2.1

Advertising Expenses

15.9

17.0

16.4

+0.5

-0.6

Personnel Expenses

25.8

24.0

25.7

-0.1

+1.7

billion yen
FY 2016.3
1st Half
Results

FY 2017.3
1st Half
forecast(end of 1Q)

FY 2017.3
1st Half
Results

Vs.
previousyear’s
results

Vs.
previous
forecast

Segment sales

103.9

100.0

91.1

-12.8

-8.9

Segment income

11.5

6.5

6.9

-4.6

0.4

Segment sales

147.2

170.0

179.7

+32.5

+9.7

Segment income

14.721.5

25.8+11.1+4.3

Visual and Music Segment sales
production
Segment income

23.5

24.0

27.5

+4.0

+3.5

5.9

6.0

8.0

+2.1+2.0

Segment sales

13.4

14.0

13.0

-0.4

-1.0

Segment income

0.5

0.5

0.5

0.0

0.0

Segment sales

-15.4

-18.0

-16.8

-1.4

+1.2

Segment income-1.6-2.5-2.5

-0.9

0.0

Net sales

272.7

290.0

294.5

+21.8+4.5

Operating income

31.1

32.0

38.9

+7.8

+6.9

Toys and Hobby
NetworkEntertainment

Other
Corporate andElimination
Consolidated2Toys and Hobby
Strong performance of products related toestablished IP in all regions
Progress more or less in line with initial forecasts

Network Entertainment
Home video game software
Major success of DARK SOULS III
Network content
Japan: Favorable performance of mainstay and new titles
Overseas: Strong performance of titles around the world and in China
Overseas ratio: 17%
Amusement Facilities
Solid performance of existing facilities in Japan

Visual and Music Production
Major success of packaged visual and music content forGirls und Panzer
Continued popularity of the Love Live! series

billion yen
FY 2016.3
Results

FY 2017.3
forecast(as of May 2016)

FY 2017.3forecast

Vs. previous Vs. previous
year’s results
forecast

Net Sales

575.5

580.0

590.0

+14.5

+10.0

Operating Income

49.6

50.0

57.0

+7.4

+7.0

Recurring Income

50.7

51.0

57.0

+6.3

+6.0

Net Income Attributable to
Shareholders of the Parent

34.5

35.0

39.0

+4.5+4.0

Capital Investments

21.3

20.0

20.0

-1.3

0.0

Depreciation

21.6

24.0

24.0

+2.4

0.0

R&D Investments

54.5

55.0

55.0

+0.5

0.0

Advertising Expenses

37.7

40.0

41.5

+3.8

+1.5

Personnel Expenses

50.4

50.0

51.0

+0.6

+1.03billion yen
FY 2016.3
Results

FY 2017.3
forecast(as of May 2016)

FY 2017.3
forecast

Vs. previous
year’sresults

Vs.
previous
forecast

Segment sales

206.4

210.0

200.0-6.4-10.0

Segment income

16.6

16.0

14.0

-2.6

-2.0

Segment sales

320.9

340.0

350.0

+29.1

+10.0

Segment income

23.9

28.0

34.5

+10.6

+6.5

Segment sales

Visual and Music
production
Segment income

51.9

43.0

47.0

-4.9

+4.0

11.6

9.0

12.0

+0.4

+3.0

Segment sales

27.4

28.0

28.0

+0.6

0.0

Segment income

1.1

1.01.0-0.10.0

Toys and Hobby
NetworkEntertainment

Other

Segment sales-31.2-41.0

-35.0

-3.8

+6.0

Segment income-3.7-4.0

-4.5

-0.8

-0.5

Net sales

575.5

580.0

590.0

+14.5

+10.0

Operating income

49.6

50.0

57.0

+7.4

+7.0

Corporate andElimination
Consolidated

First half vs. Second halfbillion yen
FY 2017.3
1st Half Results

Toys and Hobby

91.1
6.9

Segment sales
Segment income

FY2017.3
2nd Half forecast

FY2017.3
forecast

108.9
7.1

200.0
14.0

Japan: Expected changes to product mix
Overseas: Investment in large-scale promotions of Power Rangers series in the second half, among others
FY 2017.3
1st Half Results

NetworkEntertainment

179.7
25.8

Segment sales
Segment income

FY2017.3
2nd Half forecast

FY2017.3
forecast

170.3
8.7

350.0
34.5

Frontload costs in network content in the second half (increase in new titles, large-scale, worldwide promotions)
Incubation investment in the second half for growth in the next fiscal year and on
Significant repeat sales and sales of titles from other companies in the current product lineup
for home video game software not expected in the second halfFY 2017.3
1st Half Results

Visual and Music
Production

27.5
8.0

Segment sales
Segment income

FY2017.3
2nd Half forecast

FY2017.3
forecast

19.5
4.0

Disproportionate release of major titles in the first half, such as Love Live! and Girls und Panzer

447.0
12.0

Mid-term Vision

Requirements for advancing to the next stage
Accelerate Evolution
in IP Axis Strategy

Gain momentum
in global markets

5Consistently achieve¥500 billion¥50 billion

Net sales ofOperating income ofContinue taking on new challenges
and accumulating innovations

Accelerate Evolution in IP Axis Strategy
Bolstered capabilities to create and develop IP

Acquired new range of target customers

Created new IP business and expanded outlets

Established the IP Strategy Division
Currently working on multiple crossorganizational projects

Increased investment
to bolster IP Axis Strategy
Strengthened relationships with IP holders
Reinforced planning and development
capabilities, etc.

6Gain momentum in global markets
Asia: Increased popularity of Mobile Suit Gundam series
Carried out the full-scale development of the network content business

Europe and the Americas:
Expanded home video game software and network content businesses
Strengthened product lineup in all businesses

Numerical targets for the last year of the Mid-term Plan (FY2017)
Net sales¥600 billion

Operatingincome7¥60 billion

ＣJapan Release new IP → Strengthen IP portfolio
Kamen Rider

Mobile Suit Gundam

New IP geared towardelementary school boys

8

Asia
Expand IP popularity
On-demand distribution of newMobile Suit Gundam titles overseas thatcoincide with TV broadcasts in Japan
Strengthen marketing development(events, promotions, etc.)

Europe and the Americas

Increased category
Expand product categories,
including collector items
Commence sales of toys and other
DRAGON BALL products thattie in with the development ofDRAGON BALL-related games
and apps

Expand IP lineup
Introduce new IP
geared toward girls

Strengthen existing IP
Strengthen promotions forthe March movie release andnew television programsin North America next year

Home video game software

Network content

Continuous introduction of powerful titles

Continued popularity of existing titles
Maintain strong performance by carrying out
various measures, including holding events

April release: Over 3.7
million copies sold overseas

Release new titles in Japan and overseas
JapanOverseas: October release(December release in Asia)
Japan: November release:
1.4 million copies soldinitially

Overseas

Undertaking challenges on new platforms

IP Axis Strategy × Technological capabilities

9Implement
massive promotions

Creating new customers through space + the BANDAI NAMCO essence

Amusement Facilities

×Technologicalcapabilities

Solid progress in differentiation befittingof BANDA NAMCO

×Anime music

Amusement Machines

×Puzzle solving

×New collaborations

Currently working on business projects
that combine machines and facilities
New application ofVR ZONE know-how
Example:VR + Amusement facilities

Simultaneously reinforce IP creation and production capabilities
Create and develop IP

Develop IP together with fans

Expand development of existing IP

Expand business range
Fan club business

10ＣNote 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.

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