FYE March 2006 Financial Results Presentation
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FYEFYE MarchMarch 20062006 Financial Results Presentation MAY 17, 2006 NAMCO BANDAI Holdings Inc. President and Representative Director Takeo Takasu CONTENTS FY06.3 Financial Results Transition of Results 2 FY06.3 Financial Results by SBU 2 FY07.3 Financial Plan 4 Medium-Term Management Plan Strategy 4 Business Strategy by SBU 5 Entertainment Hub Concept 10 BANDAI NAMCO Group Mission 10 1 Transition of Results FY06.3 Results Formerly BANDAI Unit: billions of yen Formerly NAMCO Unit: billions of yen (Consolidated) (Consolidated) Net Sales Net Sales Operating Income Operating Income 300 300 250 250 200 200 30 30 150 150 20 20 100 100 50 10 50 10 0 0 FY02.3 FY03.3 FY04.3 FY05.3 FY06.3 FY02.3 FY03.3 FY04.3 FY05.3 FY06.3 NAMCO BANDAI Holdings Inc. (Consolidated) Net Sales 450,829 million yen Operating Income 35,669 million yen Results by SBU FY06.3 Results Toys and Hobby Japan: “Tamagotchi Plus” Net Sales Billion yen Operating Income “Data Carddass” 150 Girls’ toys post strong results 100 20 Overseas:Established stable foundation 50 10 through ‘selection and focus.’ FY05.3 FY06.3 FY06.3 Results Plan Results AmusementAmusement FacilityFacility Japan:Market downturn with prize Net Sales Billion yen Operating Income machines’ popularity waning 100 10 Overseas:Effects of U.S. market downturn 50 5 InstallmentInstallment ofof “Mario“Mario KartKart ArcadeArcade GrandGrand Prix” and other machines in 2nd Half Prix” and other machines in 2nd Half FY05.3 FY06.3 FY06.3 createcreate recoveryrecovery trendtrend Results Plan Results *FY05.3 Results is calculated by simple addition of BANDAI consolidated and NAMCO consolidated results. 2 Results by SBU FY06.3 Results Game Contents Home Video Game Software Japan・Overseas:Despite some hit titles, market downturn and slow response to changes in customer needs, resulted in sluggish results Coin-Operated Game Machines Japan: “Mario Kart Arcade Grand Prix” “Idol M@ster” posted strong results Overseas: “Wangan Midnight MAXIMUM TUNE2” had strong sales Net Sales Billion yen Operating Income 100 20 50 10 FY05.3 FY06.3 FY06.3 Results Plan Results *FY05.3 Results is calculated by simple addition of BANDAI consolidated and NAMCO consolidated results. Results by SBU FY06.3 Results NetworkNetwork Billion yen Operating Income High value-added content Net Sales strengthens earnings foundation 10 2 ⇒⇒increasedincreased averageaverage chargecharge perper subscribersubscriber 5 1 New technology offerings such as FY05.3 FY06.3 FY06.3 “2D Vector Engine” and “3D Engine” Results Plan Results VisualVisual && MusicMusic ContentContent Japan: “Mobile Suit GUNDAM” series ⇒⇒StrongStrong groupgroup synergysynergy effectseffects Net Sales Billion yen Operating Income Overseas:Product returns increased amid 40 8 U.S. market downturn 20 4 ⇒⇒PostedPosted allowanceallowance toto reflectreflect FY05.3 FY06.3 FY06.3 severesevere marketmarket conditionsconditions Results Plan Results *FY05.3 Results is calculated by simple addition of BANDAI consolidated and NAMCO consolidated results. 3 Plan Figures Plan for FY07.3 Net Sales 470billion yen Operating Income 40billion yen Net Sales Operating Income 58.0 600 550 60 500 50.0 500 470 450.8 40.0 400 40 35.6 300 200 20 100 0 0 FY06.3 FY07.3 FY08.3 FY09.3 FY06.3 FY07.3 FY08.3 FY09.3 (Result) (Plan) (Plan) (Plan) (Result) (Plan) (Plan) (Plan) Medium-Term Medium-Term Management Plan Strategy Management Plan THEME of Medium-Term Management Plan Strengthening, Enriching, and Expanding Portfolio Management Area (Regional) Portfolio Content Attain ideal area portfolio Portfolio and increase overseas sales to 25% of overall sales Long-established⇔New, Original⇔Licensed: Business Attain ideal portfolio balance Portfolio Expand business domain, Create new domain 4 Medium-Term Medium-TermMedium-Term Management Plan Management Plan Strategy Management Plan Management Strategy ①Strengthening Corporate Governance ②Effectively Utilizing Human Resources ③Building Optimal Management System Business Strategy ①Entertainment Hub Concept ・Content Strategy ③最適な経営体制の構築・Domain Strategy ・Channel Strategy ②Strengthening Overseas Businesses Strategic Business Unit (SBU) Strategic Business Unit system as of end of March 2006 NAMCO BANDAI Holdings Inc. AffiliatedAffiliated BusinessBusiness GroupGroup Strategic Business Units Leader Visual & Music Content Amusement Facility NAMCO BANDAI Games Game Contents Toys & Hobby Bandai Networks Network Bandai Visual NAMCO Bandai 5 Toys & Hobby FYE2006 07.3Business Strategy Billion yen Business Strategy Net Sales Operating income 200 Further strengthening and expansion of popular products “Tamagotchi“Tamagotchi Plus”Plus” 100 20 ・Data Carddass 10 ・Team up with partner companies Campaign, goods sales, etc. FY06.3 FY07.3 FY08.3 FY09.3 ・Development of peripheral Result Plan Plan Plan products DataData CarddassCarddass ⇒⇒BringBring upup asas establishedestablished ・Increase content popularpopular characterscharacters “Dragon Ball Z” ”NARUTO” ”Tamagotchi Plus” ”Digimon”⇒⇒ExpandExpand targettarget group!group! Content Strategy Long-establishedLong-established popularpopular ++ NewNew contentcontent ⇒⇒ RichRich line-upline-up Toys & Hobby FYE 07.3 Business Strategy Partner Company BANDAIBANDAI××UNIQLOUNIQLO BANDAIBANDAI××WILLCOMWILLCOM Collaborations “Tamagotchi” T-shirts +“chibi-Tamagotchi” Kids’ Keitai (mobile) “papipo!” BANDAIBANDAI××KENWOODKENWOOD “Enter-audio” for adult target Overseas POWER RANGERS Businesses ““POWER RANGERS”” Good start in America ““TAMAGOTCHITAMAGOTCHI”” Continuing strong sales Also started development in India AnticipatedAnticipated ContentContent “BEN10” “NARUTO” “POCOYO” Centered around Centered Centered around Boys’ toys in U.S. around Cards infants' toys in in U.S. Europe 6 Amusement Facility FYE 07.3 Billion yen Business Strategy Existing Net Sales Operating income Year on year same store Facilities figures in Japan 100 20 110 % Recovering 105 trend ! 50 10 100 95 FY06.3 FY07.3 FY08.3 FY09.3 OCT NOV DEC JAN FEB MAR Result Plan Plan Plan 2005 “Kochikame“Kochikame Game Game Park”Park” “Namja“Namja Town” Town” Opened in Tokyo, based on theme of the Celebrated its “Kochikame” world. 10th anniversary and is set to “Plabo“Plabo Nagano” Nagano” further enrich Opened in 2005, a facility large-scale facility “Danwashitsu“Danwashitsu Kaikaya” Kaikaya” Members’ only “Nagoya“Nagoya DessertDessert Forest”Forest” community salon for Opened inside a large-scale baby boomers shopping center ⇒⇒FurtherFurther plansplans toto openopen large-scalelarge-scale facilitiesfacilities andand enterenter newnew businessesbusinesses Amusement Facility FYE 07.3 Business Strategy New business “Quick“Quick MakeMake SuguSugu Sugu” Sugu” “NAMCO“NAMCO Aso-Base”Aso-Base” formats Osaka Tokyo Station Scheduled to open June in Hokkaido “NAMCO“NAMCO SpaSpa ResortResort Liberty”Liberty” Reasonably priced quick Fun space for families to make-up shop enjoy based on time charge ng ro St rt g ta on s tr t S ar st MoreMore newnew hothot bathbath facilitiesfacilities scheduledscheduled forfor openingopening SynergySynergy withwith BANDAIBANDAI “Gensou“Gensou Koubo” Koubo” Overseas Creative space for adults to Business enjoy making crafts Scheduled to open in FY07.3 in Yokohama GAME MACHINES BOWLING BAR COUNTER POOL BAR ⇒⇒StrengtheningStrengthening developmentdevelopment ofof hybridhybrid facilitiesfacilities (Europe)(Europe) 7 GameGame ContentsContents FYE 07.3 Business Strategy Billion yen Net Sales Operating income Home title structure 200 Current hardware 2005 2006 100 20 Next gen. consoles DS・PSP 10 PC FY06.3 FY07.3 FY08.3 FY09.3 Result Plan Plan Plan ⇒⇒BalancedBalanced multi-platformmulti-platform strategystrategy Anticipated home video Next gen. consoles game titles Titles under development scheduled for release in the future “.hack//G.U.” series, Ridge Racer 7 PS2PS2Xenosaga Episode Ⅲ, PS3PS3 TEKKEN 6 Dragon Ball Z Sparking! NEO, etc. Mobile Suit GUNDAM, etc. TEKKEN Dark Resurrection, XboxXbox PSPPSP Mobile Ops: The One Year War RAIN, WONDER TRIP, etc. 360360 Culdsept Saga, etc. Unou no tatsujin, Dragon Ball Z Sparking!NEO DS WiiWii DS Tamagotchi 2, etc. Final Furlong (tentative), etc. GameGame ContentsContents FYE 07.3 Business Strategy Arcade machine SynergySynergy anticipated titles Gr e at r “Mobile Suit GUNDAM : Senjo no Kizuna” ecep tion! × Test location during Golden Week “Tamagotchi”× Arcade Machine Character-based medal games, etc. Collaboration Overseas Business TEKKEN(PSP) SupportSupport broadbandbroadband streamingstreaming forfor MinistryMinistry ofof InternalInternal AffairsAffairs andand CommunicationsCommunications Support through application of game technology to streaming contents to all grade and middle school students in Japan ““.hack.hack”Project”Project Time Crisis 4(Coin-Op) Media-mix developments ⇒⇒ExpansionExpansion ofof WorldwideWorldwide with various media DevelopmentsDevelopments 8 NetworkNetwork FYE 07.3 Business Strategy Billion yen Net Sales Operating income Strengthening content 15 ExpandExpand richrich contentcontent 10 2 Develop with quality that makes full use of new functions and technologies of mobile phones 5 1 Game Content Video Content FY06.3 FY07.3 FY08.3 FY09.3 Electric comic, etc. Result Plan Plan Plan Synergy Expansion of business domain MakeMake serviceservice availableavailable andand expandexpand “picture“picture recognitionrecognition engine”engine” Content for i-mode Linking catalog shopping, packaged software, SD GUNDAM RPG JointJoint search engine, etc. “ ” develop- developdevelop-- InternetInternet advertisingadvertising BandaiBandai