November 24,2005

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
Business Synergies
－－－－－－－－Ｐ９
－－－－－－－－－－－－－ Ｐ１０
1
（Millions of Yen）
1st Half Results
Prior Year 1st Half
Results
% Change
Net Sales
134,645
121,277
＋11.0％
Operating
Income
15,332
9,829
＋56.0％
Ordinary
Income
15,946
10,132
＋57.4％
5,607
3,883
＋44.4％
Net Income
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
Half Results
% Change
Net Sales
85,052
81,980
＋3.7％
Operating
Income
2,538
4,422
- 42.6％
Ordinary
Income
2,632
4,200
- 37.3％
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
Forecast
Net Sales
218.8
251.2
470.0
Operating
Income
17.5
26.7
44.2
Ordinary
Income
18.2
25.9
44.1
7.8
16.6
24.4
Net Income
Net Sales
600
Operating Income
（Billions of Yen）
500
435.7
448.4
400
172.5
178.5
550.0
470.0
500.0
60
（Billions of Yen）
50
44.2
39.4
40
180.0
12.7
15.4
500.0
550.0
200
55.0
50.0
43.0
300
100
Full Year
Forecast
15.0
30
55.0
50.0
20
263.1
269.9
290.0
27.6
10
0
31.5
24.3
0
’04/3
Results
’05/3
’06/3
Results Forecast
’07/3
Plan
’08/3
Plan
’04/3
Results
’05/3
Results
’06/3
’07/3
Forecast Plan
’08/3
Plan
＊Results for ’04/3 and ‘05/3 are cumulative composites of BANDAI and NAMCO
BANDAI
NAMCO
NAMCO BANDAI HD
4
Net Sales
（Billions of Yen）
190
（Billions of Yen）
18
179.5
180
16.1
16
164.8
170
167.2
13.7
14
160
Operating Income
150.1
12
150
140
12.8
11.4
10
’03/3
’04/3
’05/3
’06/3
Forecast
’03/3
’04/3
’05/3
’06/3
Forecast
BANDAI
▶ Popular, Long-established
Boys’ Character Toys
▶Tamagotchi posts strong results
Worldwide Sales top
Character Merchandise:
5.8 million units in 1st half
Strong results
New Tamagotchi Series
(Entama)
Plans to link with
Data Carddass
▶Strong Start for Data Carddass
Maji Ranger
(Power Rangers)
Masked Rider Hibiki
Disk Animals
▶Apparel, Sundries Strong
Dragon Ball Z series
Started March 2005
2nd
Series
ＮＡＲＵＴＯ also starts off strong
Pretty Cure
Max Heart
4,750 machines installed
(as of Oct. 2005)
Mushiking
Cinnamoroll
Topics for 2nd Half
☆Strengthen product competitiveness of
Boys’ Characters
☆Secure profit overseas
5
（Billions of Yen）
100
Net Sales
８５.０
８２.３
７８.０
（Billions of Yen）
10
8
８４.０
６.７
6
80.0
82.0
80.1
76.1
6.8
1.9
’03/3
’04/3
’05/3
BANDAI
North
America
Japan
90
Japan
North
America
APR
MAY
JUN
JUL
AUG
SEP
95.4
89.1
94.6
101.3
95.7
97.7
MAR
APR
MAY
JUN
JUL
AUG
100.2
94.3
97.8
98.3
97.8
97.9
（Billions of Yen）
150
111.2
100
59.0
’03/3
vs. prior year % (domestic):
95.7%
95
％
72.4
129.0
75.5
0.0
-0.3
’04/3
’05/3
’06/3
Forecast
Topics for 2nd Half
☆Development of new
types of location
businesses
☆ Invigorate same store
sales with installation
of new AM
machines, etc.
☆Further progress in high
quality services and low
cost operations
Net Sales
124.4
4.7
＊Periods prior to 05/3 are combined results of BANDAI and NAMCO
NAMCO same store sales vs. prior year (%)
100
-0.1
-2
’06/3
Forecast
NAMCO
▶Same store sales
105
4.0
2.9
2.2
-0.1
４.７
6.0
4.7
2
0
0
５.７
４.６
4
50
Operating Income
（Billions of Yen）
147.4
Operating Income
25
20
88.9
Spa Resort
Liberty
15
18.4
20.5
19.8
10.3
13.7
8.0
6.8
5.2
’03/3
’04/3
’05/3
14.5
20.7
13.0
10
50
52.1
0
’03/3
BANDAI
52.0
’04/3
53.4
’05/3
NAMCO
58.5
’06/3
Forecast
5
0
7.6
’06/3
Forecast
＊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
1 million in Japan
Topics for 2nd Half
☆Earn higher results from installation of
new machines
⇒synergies with AM facility operations
The Idolmaster
Medal no Tatsujin
Mario Kart GP
Tekken 5
Taiko no
Tatsujin
Together with Bandai Networks
subscribers, total subscriptions
amount to more than 5 million
6
Home Videogame Software
Despite severe market conditions, the following titles contributed to strong sales
Super Robot
Wars α
Tamagotchi
Dragon Ball Z
Sparking!
Topics for 2nd Half
Ridge Racers
(US/Europe)
☆Increased emphasis on multiplatform strategy
☆High expectations for 2nd half
releases of franchise titles
Support next generation hardware systems
Soul Caliber III
for PS2
Mobile Suit
Gundam SEED
for PS2
Tales of the Abyss
for PS2
（Billions of Yen）
15
Net Sales
Ridge Racer 6 for
Xbox 360
（Billions of Yen）
12.0
10.2
10
Tekken 5
(Europe)
2.1
2
10.1
Operating Income
1.9
2.0
1.6
8.5
1
5
0
0
’03/3
’04/3
’05/3
’06/3
Forecast
’03/3
’04/3
’05/3
’06/3
Forecast
BANDAI
Topics for 2nd Half
▶Game Contents Strong
☆Effective implementation of
inter-group resources
Subscribers at 1.48 million at the end of
September 2005
⇒ An increase of 35% year on year
GNO Mobile
ice
Serv inter
W
s
begin 06
20
Various content implementation that
match diversified consumer needs
▶Strengthen Solutions Business
⇒ ３D engine contributed to results
Tamagotchi
(for mobile phones)
Joint development
with NAMCO
SD Gundam RPG
for i-mode
7
（Billions of Yen）
50
４０.２
40
Net Sales
４２.６
４４.４
10.7
10.5
10.3
（Billions of Yen）
Operating Income
10
４０.７
5.7
8
6
30
５.７
４.２
0.1
５.４
５.９
0.1
4
20
35.0
33.8
31.8
29.8
2
10
0
0
-2
’03/3
’04/3
BANDAI
’05/3
’06/3
Forecast
NAMCO
4.7
5.5
5.2
’04/3
’05/3
-0.4
’03/3
-0.3
Topics
☆Business Expansion
Mobile Suit Gundam Series Strong
⇒Group Synergy Effect increases
income rate
Expansion of contents business
from Visual content to Audio, as
well as text content
Topics
☆Area Expansion
Mobile Suit Z Gundam
-A New Translation-
TAKESHIS’
In theaters in Japan
External sales
(Billions of Yen)
80
40
’06/3
Forecast
＊Periods prior to 05/3 are combined results of BANDAI and NAMCO
▶ Gundam Displays Group Synergy Effect
60
6.3
Operating Income (loss)
10
64.7
61.1
5.7
52.0
33.3
(Billions of Yen)
Expansion overseas based on
‘Made in Japan’ high valueadded business model
46.5
37.8
31.3
27.5
20
5
5.2
1.9
3.7
0
3.6
- 0.5
0.8
1.6
2.1
1.8
-1.0
-2.7
27.7
26.9
20.7
19.0
04/3
05/3
06/3
Forecast
0
-5
03/3
BANDAI
NAMCO
03/3
04/3
05/3
06/3
Forecast
＊Periods prior to 05/3 are combined results of BANDAI and NAMCO
▶1st Half Results
Tamagotchi series
posts very strong
results
Ridge Racer for
PSP posts strong
results
Efficiency improvement
measures have positive impact
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
Bandai
Entertainment Inc.
Toys & Hobby
Bandai America Inc.
Holding Company
NAMCO BANDAI
Holdings (USA) Inc.
Network
Namco Networks
America Inc.
Game Contents
Namco Bandai
Games America Inc.
Namco America Inc.
Amusement Facility
Namco
Cybertainment Inc.
Fusion Plans and Projects within the New Group
Over 2000 entries
Announcement of winners/inductees in
January, 2006
⇒ Realization of Ideas
∞
BANDAI HR
development training
Inter-company departments with available
openings posted and start transfer process
based on entries
November 2005 Listing
December 2005 Decision
April 2006 Transfer
・Environmental Project
NAMCO HR
development training
・BANDAI NAMCO Group Rights Project
・BANDAI NAMCO Group
February thru July, 2006
Intellectual Property Project
9
Business Synergy
Toys & Hobby ×Game Contents
Revival of past hit arcade games
with “Let’s TV Play”
・Dragon Buster
・GAPLUS
・Xevious・MAPPY
Visual
×Game Contents
Arrange NAMCO game contents to
visual content
・Idol Master, etc.
Idle Master
Let’s TV Play Series
Toys & Hobby ×Game Contents
Plastic models of futuristic
jets from ‘Ace Combat Zero’
Sche
du
sale led for
Sprin
2006 g
Toys & Hobby ×Game Contents
Production and sale of figure toys
based on NAMCO game content
Sche
du
sale led for
W inte
2006 r
・Soul Caliber III
・Tekken
×
Simulated images
Business Synergy
Toys & Hobby ×
Game Contents×
Locations
Development of
Amusement Machines
“Mobile Suit Gundam
Senjo no Kizuna”
Tamagotchi Café
（tentative）
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
⇒160 locations, 260 units
Offer SD Gundam RPG
for i-mode services
this winter
10
!!!
!!!
!!!
!!!
!!!
!!!
!!!
!!!
!!!
!!!
!!!
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.
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11