Bandai Namco Group Interim Period for the Fiscal Year ending March 2006
November 24, 2005
Table of Contents
1.1st Half Results BANDAI --------------P2 NAMCO --------------P3 NAMCO BANDAI Holdings --------------P4 2.Business Strategy Toys & Hobby --------------P5 Amusement Facility --------------P6 Game Contents --------------P6 Network --------------P7 Visual and Music Content --------------P8 North America --------------P8 3.Management Integration Synergies Fusion Plans & Projects within the New Group --------P9 Business Synergies -------------P10
1 (Millions of Yen)
1st Half Results Prior Year 1st Half % Change Results Net Sales 134,645 121,277 +11.0%
Operating 15,332 9,829 +56.0% Income Ordinary 15,946 10,132 +57.4% Income Net Income 5,607 3,883 +44.4%
Posted good results, centered around girls’ toys
Mobile Suit Gundam Series displays and provides group synergy effects
While continuing to struggle due to harsh market conditions and tight competition, our efforts of “selection and focus” resulted in some improvements.
2 (Millions of Yen)
1st Half Results Prior Year 1st % Change Half Results Net Sales 85,052 81,980 +3.7%
Operating 2,538 4,422 - 42.6% Income Ordinary 2,632 4,200 - 37.3% Income Net Income 2,526 2,679 -5.7%
Domestic sales posted strong results. Installation of large-sized game machines in 2nd half.
Increase in number of units sold overseas. Concentration of franchise title releases in 2nd half.
Whilst harsh market conditions, same store sales year on year was 95.7% domestically (Japan), and 97.7% for North America.
3 (Billions of Yen) 1st Half Results 2nd Half Full Year Forecast Forecast Net Sales 218.8 251.2 470.0
Operating 17.5 26.7 44.2 Income Ordinary 18.2 25.9 44.1 Income Net Income 7.8 16.6 24.4
Net Sales Operating Income 600 60 (Billions of Yen) 550.0 (Billions of Yen) 55.0 500.0 50.0 500 470.0 50 435.7 448.4 43.0 44.2 39.4 400 40 180.0 12.7 172.5 178.5 15.4 15.0 300 30 550.0 55.0 500.0 50.0 200 20 290.0 31.5 263.1 269.9 27.6 24.3 100 10
0 0 ’04/3 ’05/3 ’06/3 ’07/3 ’08/3 ’04/3 ’05/3 ’06/3 ’07/3 ’08/3 Results Results Forecast Plan Plan Results Results Forecast Plan Plan
*Results for ’04/3 and ‘05/3 are cumulative composites of BANDAI and NAMCO
BANDAI NAMCO NAMCO BANDAI HD
4 (Billions of Yen)(Net Sales Billions of Yen) Operating Income 190 18 179.5 16.1 180 16 167.2 170 164.8 13.7 14 12.8 160 150.1 11.4
150 12
140 10 ’03/3’04/3 ’05/3 ’06/3 ’03/3 ’04/3 ’05/3 ’06/3 Forecast Forecast BANDAI
▶Tamagotchi posts strong results ▶ Popular, Long-established Boys’ Character Toys Worldwide Sales top Character Merchandise: 5.8 million units in 1st half Strong results New Tamagotchi Series (Entama) Plans to link with Data Carddass Maji Ranger Masked Rider Hibiki (Power Rangers) Disk Animals
▶Strong Start for Data Carddass ▶Apparel, Sundries Strong Dragon Ball Z series
Started March 2005 2nd Series Pretty Cure NARUTO also starts off strong Max Heart Mushiking 4,750 machines installed (as of Oct. 2005) Cinnamoroll Topics for 2nd Half ☆Strengthen product competitiveness of Boys’ Characters ☆Secure profit overseas
5 (Billions of Yen)(Net Sales Billions of Yen) Operating Income 10
100 8 85 0840 6.7 78.0 82.3 . . 5.7 6 4.6 4.7 4 50 6.8 6.0 76.1 80.1 82.0 80.0 2 4.7 4.7 0 -0.1 -0.1 -0.3 0.0 1.9 2.2 2.9 4.0 0 -2 ’03/3’04/3 ’05/3 ’06/3 ’03/3 ’04/3 ’05/3 ’06/3 Forecast Forecast BANDAI NAMCO *Periods prior to 05/3 are combined results of BANDAI and NAMCO ▶Same store sales vs. prior year % (domestic): 95.7% Topics for 2nd Half 105 ☆ NAMCO same store sales vs. prior year (%) Development of new Spa Resort 100 types of location North Liberty America businesses 95 Japan ☆ Invigorate same store % 90 sales with installation
Japan APR MAY JUN JUL AUG SEP of new AM machines, etc. 95.4 89.1 94.6 101.3 95.7 97.7 ☆Further progress in high North MAR APR MAY JUN JUL AUG America quality services and low 100.2 94.3 97.8 98.3 97.8 97.9 cost operations
(Billions of Yen)(Net SalesBillions of Yen) Operating Income 25 150 147.4 20.5 20.7 124.4 129.0 20 18.4 19.8 111.2 100 88.9 15 75.5 10.3 13.7 13.0 59.0 72.4 14.5 10 50 5 52.1 52.0 53.4 58.5 8.0 7.6 6.8 5.2 0 0 ’03/3’04/3 ’05/3 ’06/3 ’03/3 ’04/3 ’05/3 ’06/3 Forecast Forecast BANDAI NAMCO *Periods prior to 05/3 are combined results of BANDAI and NAMCO
▶Domestic Sales of AM machines post strong 1st half results ▶NAMCO mobile phone content subscribers top Topics for 2nd Half 1 million in Japan ☆Earn higher results from installation of new machines ⇒ synergies with AM facility operations Taiko no The Idolmaster Tatsujin
Together with Bandai Networks subscribers, total subscriptions Mario Kart GP Tekken 5 amount to more than 5 million Medal no Tatsujin
6 Home Videogame Software Despite severe market conditions, the following titles contributed to strong sales
Super Robot Dragon Ball Z Tamagotchi Ridge Racers Tekken 5 Wars α Sparking! (US/Europe) (Europe) Topics for 2nd Half ☆Increased emphasis on multi- ☆High expectations for 2nd half releases of franchise titles platform strategy Soul Caliber III Support next generation hardware systems for PS2
Mobile Suit Tales of the Abyss Ridge Racer 6 for for PS2 Gundam SEED for PS2 Xbox 360
(Billions of Yen)(Net SalesBillions of Yen) Operating Income 15 12.0 2.1 1.9 2.0 10.2 10.1 2 1.6 10 8.5
1 5
0 0 ’03/3’04/3 ’05/3 ’06/3 ’03/3 ’04/3 ’05/3 ’06/3 Forecast Forecast BANDAI
▶Game Contents Strong Topics for 2nd Half Subscribers at 1.48 million at the end of ☆Effective implementation of September 2005 inter-group resources ⇒ An increase of 35% year on year GNO Mobile ice Joint development Serv r Various content implementation that Winte gins with NAMCO be 6 match diversified consumer needs 200 ▶Strengthen Solutions Business SD Gundam RPG ⇒ 3D engine contributed to results Tamagotchi (for mobile phones) for i-mode
7 (Billions of Yen)(Net SalesBillions of Yen) Operating Income 50 10 42.6 44.4 40 7 40.2 . 8 40 10.5 10.7 5.7 5 7 5.9 10.3 6 . 5.4 30 4.2 0.1 0.1 4 20 5.5 6.3 35.0 4.7 5.2 29.8 31.8 33.8 2 10 0 -0.4 -0.3 0 -2 ’03/3’04/3 ’05/3 ’06/3 ’03/3 ’04/3 ’05/3 ’06/3 Forecast Forecast BANDAI NAMCO *Periods prior to 05/3 are combined results of BANDAI and NAMCO ▶ Gundam Displays Group Synergy Effect Topics
Mobile Suit Gundam Series Strong ☆Business Expansion ⇒Group Synergy Effect increases Expansion of contents business income rate from Visual content to Audio, as well as text content
Topics ☆Area Expansion TAKESHIS’ Mobile Suit Z Gundam Expansion overseas based on -A New Translation- ‘Made in Japan’ high value- In theaters in Japan added business model
(Billions of Yen)External sales (Billions of Yen) Operating Income (loss) 80 10 61.1 64.7 60 5.7 5.2 52.0 46.5 5 1.9 33.3 37.8 3.6 40 -0.5 0.8 31.3 3.7 27.5 1.6 2.1 1.8 0 -1.0 20 -2.7 27.7 26.9 20.7 19.0 0 -5 03/304/3 05/3 06/3 03/3 04/3 05/3 06/3 Forecast Forecast BANDAI NAMCO *Periods prior to 05/3 are combined results of BANDAI and NAMCO ▶1st Half Results
Tamagotchi series Ridge Racer for Efficiency improvement posts very strong PSP posts strong measures have positive impact results results on income rate
⇒However, the results fell short of the initial plan due to more emphasis on nd the 2 half of the FY as well as severe market conditions and competitions
8 Topics ☆Enhancement of portfolio function Organization from January 2006
Visual and Music Content Toys & Hobby Bandai Bandai America Inc. Entertainment Inc.
Holding Company NAMCO BANDAI Game Contents Network Holdings (USA) Inc. Namco Bandai Namco Networks Games America Inc. America Inc. Namco America Inc. Amusement Facility Namco Cybertainment Inc.
Fusion Plans and Projects within the New Group
Over 2000 entries Inter-company departments with available Announcement of winners/inductees in openings posted and start transfer process January, 2006 based on entries ⇒ Realization of Ideas November 2005 Listing December 2005 Decision ∞ April 2006 Transfer
・Environmental Project BANDAI HR NAMCO HR ・ development training development training BANDAI NAMCO Group Rights Project ・BANDAI NAMCO Group
February thru July, 2006 Intellectual Property Project
9 Business Synergy
Toys & Hobby ×Game Contents Visual ×Game Contents
Revival of past hit arcade games Arrange NAMCO game contents to with “Let’s TV Play” visual content ・ Dragon Buster ・Idol Master, etc. ・GAPLUS ・Xevious・MAPPY Let’s TV Play Series Idle Master
Toys & Hobby ×Game Contents Toys & Hobby ×Game Contents
S Plastic models of futuristic S Production and sale of figure toys ched ched uled uled sale for sale for Win jets from ‘Ace Combat Zero’ Spr based on NAMCO game content ter ing 2006 2006 ・Soul Caliber III × ・Tekken
Simulated images
Business Synergy
Toys & Hobby × Game Contents× Locations
Tamagotchi Café Development of (tentative) Amusement Machines “Mobile Suit Gundam Senjo no Kizuna” Installation of ‘Deka-tamagotchi’ at NAMCO facilities ⇒Over 200 facilities
Toys & Hobby × Locations Game Contents× Network
Development of Mobile contents Installation of Data Carddass units at NAMCO locations Offer SD Gundam RPG ⇒ for i-mode services 160 locations, 260 units this winter
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Toys & Hobby Visual Apparel
Broadband
Game Contents
Mobile Amusement Facility
URL: www.bandainamco.co.jp/
Warning concerning forward-looking statements:
This report contains figures that are based on the information currently available to management and estimates involving uncertain factors thought likely to have an effect on future results.
©BANDAI・WiZ 2004, ©2005 TV ASAHI・TOEI AG・TOEI, ©2005 ISHIMORI PRO・TV ASAHI・ADK・TOEI, ©BIRD STUDIO/SHUEISHA・TOEI ANIMATION ©BANDAI 2005, ©ABC・TOEI ANIMATION, ©2002, 2005 SANRIO CO.,LTD.(K), ©ムシキングプロジェクト・テレビ東京, ©Kubooka Toshiyuki ©2003 NAMCO LTD., ©2005 NAMCO LTD., © 2005 Nintendo ©2005 NAMCO LTD., ALL RIGHTS RESERVED.MARIOKART is a registered trademark of Nintendo.Licensed by NINTENDO ©2005 NAMCO LTD., ©葦プロ ⓒGAINAX/Project Eva.・テレビ東京 © 1997 GAINAX/EVA製作委員会 ©サンライズ © SEGA, 1998, 2003 CHARACTERS © SEGA/AUTOMUSS © AUTOMUSS CHARACTER DESIGN:KATOKI HAJIME ©創通エージェンシー・サンライズ ©創通エージェンシー・サンライズ・毎日放送 ©ダイナミック企画 ©東映 ©東映アニメーション ©東北新社 ©BANDAI・VICTOR・GAINAX ©ビックウエスト ©BANPRESTO 2005 ©BIRD STUDIO/SHUEISHA・TOEI ANIMATION ©BANDAI 2005, ©BANDAII・WiZ 2004 © BANDAI 2005 ©SOTSU AGENCY・SUNRISE・MBS ©BANPRESTO 2005 ©CAPCOM CO., LTD. 2005/ALL RIGHTS RESERVED ©SOTSU AGENCY・SUNRISE・MBS, ©2005 NAMCO LTD., ©SOTSU AGENCY・SUNRISE ©BANDAI NETWORKS ©Bandai・WiZ 2004 ©BANDAI NETWORKS ©2005 バンダイビジュアル TOKYO FM 電通 テレビ朝日/オフィス北野, ©SOTSU AGENCY・SUNRISE ©SOTSU AGENCY・SUNRISE・MBS ©2005 NAMCO LTD., ©NAMCO LIMITED ©SOTSU AGENCY・SUNRISE ©1995 1998 2002 2003 2005 NAMCO LTD.,ALL RIGTHS RESERVED. ©1994 1995 1996 1999 2001 2004 2005 NAMCO LTD.,ALL RIGTHS RESERVED. ©KOSUKE FUJISHIMA©2005NAMCO LTD.
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