“Dreams, Fun and Inspiration”

BANDAI NAMCO GROUP Strategic Presentation Session

September 13, 2005

Group Corporate Philosophy

Mission Statement “Dreams, Fun and Inspiration” BANDAI NAMCO will continue to provide Dreams, Fun and Inspiration to people around the world through entertainment based on creativity and boundless enthusiasm

1 Group Corporate Philosophy

Belief Basic Ethos

“Dreams, Fun and Inspiration” More Passion, are the Key to Happiness More Innovation

The meaning of Dreams, Fun and Inspiration More perceptive

will essentially change over the time, ・Unparalleled curiosity and boundless enthusiasm but BANDAI NAMCO holds one unshakable ・Abundant creativity unrestrained by the status quo belief: that Dreams, Fun and Inspiration ・Open to people’s needs and satisfaction from giving inspiration will always hold the key to happiness

Group Corporate Philosophy

Vision To become the world’s most inspiring entertainment group

The BANDAI NAMCO Group will constantly strive to be a pioneer, aiming to deepen and widen the appeal of entertainment and winning the hearts of people worldwide who enjoy having fun. Our ultimate goal is to become the world’s most inspiring entertainment group

2 Slogan

Cross-Entertainment!!

By integrating the various entertainment businesses, Bandai Namco Group will not only make a quantum leap in evolution – it will also create value with various partners and develop new forms of entertainment

Group Symbol

Concept Fusion and Evolution

3 Reorganization Schedule

The basic reorganization will be implemented by April 2006

Reorganization schedule Details

Sep.Sep. 29,29, z Establishment of holding z Establishment of NAMCO BANDAI 20052005 company through share-for- Holdings Inc. share exchange

Dec.Dec. 1,1, z Reorganization of domestic z Portion of affiliated company share 20052005 operating companies management operations to be transferred to holding company

z Establishment of North American Jan.Jan. 1,1, z Reorganization in North holding company 20062006 America z Consolidation of North American game companies

Apr.Apr. 1,1, z Consolidation of domestic z Establishment of NAMCO BANDAI 20062006 game companies Games America Inc.

Strategic Business Unit

Operations will be consolidated into strategic business units, through which the group will be managed NAMCONAMCO BANDAIBANDAI HoldingsHoldings Inc.Inc. Strategic Business Unit Business Strategic Amusement Facility Amusement Facility Affiliated Business Affiliated Business Visual and Music Visual and Music Game Contents Game Game Contents Game Toys & Hobby Toys & Hobby Other Business Network Network

4 Business Portfolio The strengths of both companies will be combined, leading to dramatic growth in operations

Bandai BANDAI NAMCO

Toys & Visual Hobby Toys & Hobby Character Life-style Visual and Networks Music Life-style Video Game Amusement Apparel Software Network Character Fusion Technology Namco Snack Food Location Home Videogame New Software Game Contents Business Technology Amusement Spa Resort Facility Location Welfare service etc. Amusement Coin-operated Facility Game Machines Operations

Financial Projections

Billions of yen

FY06.3(Projection) FY07.3(Projection) FY08.3(Projection) Sales 475 500 550 Operating Income 44.2 50.0 55.0 ＲＯＡ 11.0% 12.0% 12.5% ＲＯＥ 10.0% 10.5% 11.0%

Sales Operating Income ROA 500 50 12.0% 10.0% ROE

8.0%

0 0 0% 06.3 07.3 08.3 06.3 07.3 08.3 06.3 07.3 08.3

5 Strategic Business Unit

Basic Strategy

Toys & Hobby Strategic Business Unit

BasicBasic StrategyStrategy NumericalNumerical PlanPlan Sales Operating income ¥ billion ¥ billion ① Strengthen management 250 25 systems for major characters 205.0 200 195.0 20 ② 177.5 Establish development system 17.0 17.5 from consumers’ viewpoint 15.2 150 15 ③ Streamline production logistics 100 10

④ Strengthen overseas sales 50 5 ⑤ Strengthen apparel business 0 0 (including M&A) FY2006.3 FY2007.3 FY2008.3

6 Amusement Facility Strategic Business Unit

BasicBasic StrategyStrategy NumericalNumerical PlanPlan Sales Operating income ¥ billion ¥ billion 120 12 ① Improve facility value by 100.0 10.0 utilizing characters and other 100 93.0 10 9.0 means 87.3 80 7.2 8 ② Create new facility formats 60 6 ③ Establish an earnings model in Europe and the Americas 40 4

④ Pursue low-cost operations 20 2

0 0 FY2006.3 FY2007.3 FY2008.3

Game Contents Strategic Business Unit

BasicBasic StrategyStrategy NumericalNumerical PlanPlan Sales Operating income ¥ billion ¥ billion ① Introduce development 200 40 180.0 systems and methods with an 155.0 emphasis on development 146.3 30 efficiency 150 27.0 24.0 21.5 ② Expand and strengthen multi- 100 20 use of content

③ Develop business models for 50 10 network games

④ Strengthen development and 0 0 marketing capabilities in FY2006.3 FY2007.3 FY2008.3 Europe and the Americas

7 Network Strategic Business Unit

BasicBasic StrategyStrategy NumericalNumerical PlanPlan Sales Operating income ¥ billion ¥ billion 25 4 ① Secure rich content and attract 20.0 customers 20 3 ② Expand mobile related 15.0 2.5 businesses 15 12.0 2.0 2.0 2 ③ Expand system solutions 10 business 1 5

0 0 FY2006.3 FY2007.3 FY2008.3

Visual and Music Strategic Business Unit

BasicBasic StrategyStrategy NumericalNumerical PlanPlan Sales Operating income ¥ billion ¥ billion 50 10 ① Create original contents 46.5 40 40.0 ② Maximize content value through 37.0 8 multiple use 6.3 6.4 6.5 30 6 ③ Rebuild overseas business development model 20 4

④ Expand business domain for 10 2 publishing, music, and other areas 0 0 FY2006.3 FY2007.3 FY2008.3

8 Business Synergy Effects

Game Contents

Character Merchandising

◆Global Expansion

Game Contents Synergies

“Significant increase in development efficiency” through flexible allocation of development staff and joint use of technologies

Policy ① Flexible allocation of development staff Consolidation of creators, creation of units, effective development resource allocation

Current After Mobile use Home use Home use operated operated

integration operated Mobile Coin- Other Coin- Other Operational Operational use of game use use

Field operations NAMCO AM NAMCO CX NAMCO CT

Banpresto Planning Organization Bandai Planning Planning Production ・・・ Production

Unit 1 Unit 2 Unit 3 Organized into operational fields Consolidate and reorganize into units ＋ Policy ② Application of development environment and technologies

9 Game Contents Synergies Provide appealing content to all customer groups by drawing on the strengths of both Bandai and NAMCO

High Field C (30s) Game strengths Character appeal Technical capabilities × (Bandai) （NAMCO） Age Group Age NAMCO Field A Bandai Field A content development

(teens) Expanded customer base Low Field B Toward Field B, Field C content development

Game Balance Character emphasis emphasis

Game Contents Synergies

Strong collaboration in prize game machines (hardware) and prizes (software)

→ Expand profits in the prize related field by drawing on each company’s strengths

Currently After Integration Bandai NAMCO BANDAI NAMCO Group

Hardware New Product Development

Weakness Strength Operating Company Minor Changes to Existing Products Prize Game Higher Income Machines Convene Sweet Land Catcher ２ CLENA-FREX Draw on mutual appeal

Software Strength Weakness Large volume Certain characters New Prize Development of character centered on Prizes prizes compatible stuffed toys Minor Changes to Existing Prizes with almost （low transaction all hardware volume）

10 Game Contents Synergies (New Product) Bandai’s No.1 merchandising character: New type of NAMCO game machine for coin-operated use “Mobile suit Gundam”

New Product “Mobile Suit Gundam Senjo no Kizuna”

©Sotsu Agency・Sunrise

Business Synergy Effects

Game Contents

Character Merchandising

◆Global Expansion

11 Character Merchandising Synergies Realize wide-ranging synergies from content creation, the starting point of character merchandising, to content use and merchandising Content Creation Fields

NAMCONAMCO BandaiBandai GamesGames CharactersCharacters ContentContent creationcreation synergiessynergies

Mutual use and joint development of games and animation

Content Use Fields SynergiesSynergies fromfrom multiplemultiple useuse

Content distribution Amusement facility Manufacturing operations operations operations

Character Merchandising Synergies Deepen the character world settings of the BANDAI NAMCO Group overall through merchandising of NAMCO game characters NAMCO game world settings Progress toward Pac-Man diverse value added Animation content

Action figures The Idle Master Bandai’s character Cards merchandising know-how Comic books, magazines Ridge Racer Vending machine capsule toys

12 Character Merchandising Synergies

Bandai’s virtual character worlds will be combined with Namco’s real locations to provide entirely new entertainment to customers

Bandai’sBandai’s CharacterCharacter WorldWorld Namco’sNamco’s RealReal LocationsLocations

Tamagotchi new amusement park Fusion

“Unazukin” and “Riraku no Mori”

Fusion

Business Synergy Effects

Game Contents

Character Merchandising

◆Global Expansion

13 Overseas Development Synergies

Building an organization that will realize the integration of characters, locations, and technologies

Reorganization as of NAMCO BANDAI Holdings Inc. January 1, 2006 (holding company)

NAMCO BANDAI Holdings (USA) Inc. (regional holding company)

Bandai America Inc. NAMCO BANDAI Games NAMCO (toys) America Inc. CYBERTAINMENT Inc. (home use game software) (facilities operation)

NAMCO AMERICA Inc. NAMCO MOBILE Inc. Bandai Entertainment Inc. (Coin-operated use game (provisional) (visual) machine sales) (mobile operations)

MaximizeMaximize synergies synergies among among operational operational fields, fields, which which were were expanded expanded throughthrough establishment establishment of of holding holding company company RealizeRealize optimal optimal allocation allocation of of resources resources and and increase increase functional functional efficiency efficiency

Overseas Development Synergies In overseas operations, expectations include synergies within each strategic business unit as well as cross-functional synergies Strategic business unit Synergies Synergies ToysToys && HobbyHobby -> Develop card, vending machine operations in -> Develop NAMCO game NAMCO amusement facilities characters that are very popular in North America into resources AmusementAmusement FacilityFacility for Toys & Hobby

-> Achieve synergies and reduce GameGame ContentsContents costs by unifying game -> Advance into network development operations based on NAMCO’s mobile game content NetworkNetwork -> Develop NAMCO game characters that are very popular in North America into visual content VisualVisual andand MusicMusic

14 Direction of Our Business Expansion

（Entertainment Hub）

Our Business Model: Entertainment Hub

!!! !!! !!!

!!! !!!

!!! !!! !!!

Toys & Hobby Visual Apparel

Broadband

Game !!! Contents Mobile Amusement Facility

15 Plan for Entertainment Hub Expansion

Players who can be linked through entertainment hub

Markets in Asia OverseasOverseas networknetwork Markets in Europe and the (medium-term(medium-term viewpoint)viewpoint) Americas In Japan GlobalGlobal CollaborationCollaboration

Competitor network companies Competitor manufacturers Manufacturers in other industries Expanding network Competitor manufacturers Expanding network (medium-term viewpoint) Distribution/ (medium-term viewpoint) wholesale Tie-up CompetitionCompetition ⇒⇒ CooperationCooperation partners

Licensors Service companies in other industries CoreCore NetworkNetwork (short-term(short-term viewpoint)viewpoint)

Customers Retail shops RaiseRaise valuevalue ofof overalloverall valuevalue chainchain Amusement facilities

16 Supplementary Information

Financial Projection

Billions of yen FY2006.3 FY2007.3 FY2008.3 (Projection) (Projection) (Projection) Sales 475.0 500.0 550.0 Toys & Hobby 177.5 195.0 205.0 Amusement Facility 87.3 93.0 100.0 Game Contents 146.3 155.0 180.0 Network 12.0 15.0 20.0 Visual and Music 46.5 37.0 40.0 Affiliated Business 18.5 19.0 20.0 Elimination or Corporate △ 13.1 △ 14.0 △ 15.0 Operating Income 44.2 50.0 55.0 Toys & Hobby 15.2 17.0 17.5 Amusement Facility 7.2 9.0 10.0 Game Contents 21.5 24.0 27.0 Network 2.0 2.0 2.5 Visual and Music 6.3 6.4 6.5 Affiliated Business △ 0.7△ 0.2 0 Elimination and Corporate △ 7.3 △ 8.2 △ 8.5

17 Company Organized by Strategic Business Unit

Toys & Hobby Strategic Business Unit

Visual and Bandai Co., Ltd., Megahouse Corporation, Popy Co., Ltd., Seika Co., Ltd., Seeds Co., Ltd., Plex Co., Ltd., Sunlink co., Ltd., Tohato Inc., People Co., Ltd., BANDAI AMERICA INC., Music Toys & Hobby BANDAI S.A., BANDAI U.K.LTD, BANDAI ESPANA S.A., BANDAI(H.K.)CO.,LTD., BHK TRADING LTD., BANDAI INDUSTRIAL CO.,LTD., BANDAI KOREA CO.,LTD. Life-style Amusement Facility Strategic Business Unit Network Characters NAMCO LIMITED, Pleasure Cast Co., Ltd., Hanayashiki Co., Ltd., St. Tropez Ltd., Technologies NAMCO CYBERTAINMENT INC., NAMCO OPERATIONS EUROPE LTD., Locations NAMCO OPERATIONS SPAIN S.L.NAMCO ENTERPRISES ASIA LTD., SHANGHAI NAMCO LTD.* Amusement Game Contents Strategic Business Unit Game Facility Bandai Co., Ltd., NAMCO LIMITED, Banpresto Co.,Ltd., Bec Co., Ltd., Banpresoft Co., Ltd., Contents Banpresto Sales Co., Ltd., Monolith Software Inc., NAMCO TALES STUDIO Ltd., BANDAI GAMES INC., BANPRESTO (H.K.) LTD., NAMCO AMERICA INC., NAMCO HOMETEK INC., NAMCO EUROPE LTD. Network Strategic Business Unit Affiliated Business Bandai Networks Co., Ltd., VIBE Inc.

(Shared Services Center) Visual and Music Strategic Business Unit Bandai Visual Co., Ltd., Sunrise Inc., Bandai Channel Co., Ltd., BANDAI ENTERTAINMENT INC. Affiliated Business Group Bandai Logipal Inc., Banalex Corporation, Artpresto Co., Ltd., Happinet Corporation*, Sotsu Agency Co., Ltd.*, NAMCO ECOLOTECH LTD., NAMCO SUPPORTERS LTD., NAMCO TRADING LTD., Italian Tomato Ltd.* Underline: strategic business unit core company, *equity method affiliate

Note concerning “Forward-looking statements”

This document contains forward-looking statements that are based on the information currently available to management, and estimates involving uncertain factors thought likely to have an effect on future results. As such, they include various risks and uncertainties. Actual results may differ materially from these projections for a variety of reasons, including changes in business environments, market trends and exchange rate fluctuations relevant to the business of BANDAI NAMCO Group.