Bandai Namco : Financial Highlights for the First Quarter of the Fiscal Year Ending March 2017

August 4, 2016

Financial Highlights for the First Quarter of the Fiscal Year Ending March 2017

BANDAI NAMCO Holdings Inc.: Consolidated Financial Results

Summary of Income Statement (millions of yen)

FY2016.3			FY2017.3
1Q Results	1st Half Results	Full Year Results	1Q Results	％ vs. Prior Year	1st Half Forecasts	1st Half New Forecasts	Full Year Forecasts	Full Year New Forecasts	％ vs. Prior Year
Net Sales	137,376	272,780	575,504	144,792	105.4%	275,000	290,000	580,000	580,000	100.8%
Gross Profit	53,312	103,456	202,600	57,627	108.1%	94,000	103,500	205,000	205,000	101.2%
Operating Income	18,139	31,160	49,641	23,419	129.1%	23,000	32,000	50,000	50,000	100.7%
Recurring Income	18,780	33,215	50,774	22,948	122.2%	23,500	32,000	51,000	51,000	100.4%
Profit Attributable to Owners of Parent	13,949	22,762	34,583	18,502	132.6%	16,500	24,000	35,000	35,000	101.2%

Net Sales by Segment (millions of yen)

FY2016.3			FY2017.3
1Q Results	1st Half Results	Full Year Results	1Q Results	％ vs. Prior Year	1st Half Forecasts	1st Half New Forecasts	Full Year Forecasts	Full Year New Forecasts	％ vs. Prior Year
Toys and Hobby	50,008	103,985	206,424	42,461	84.9%	100,000	100,000	210,000	210,000	101.7%
Network Entertainment	76,782	147,209	320,941	91,334	119.0%	160,000	170,000	340,000	340,000	105.9%
Visual and Music Production	11,464	23,582	51,967	13,619	118.8%	21,000	24,000	43,000	43,000	82.7%
Other	6,323	13,488	27,456	6,163	97.5%	14,000	14,000	28,000	28,000	102.0%
Elimination and Corporate	△ 7,202	△ 15,483	△ 31,285	△ 8,786	-	△ 20,000	△ 18,000	△ 41,000	△ 41,000	-
Total	137,376	272,781	575,504	144,792	105.4%	275,000	290,000	580,000	580,000	100.8%

Operating Income by Segment (millions of yen)

FY2016.3			FY2017.3
1Q Results	1st Half Results	Full Year Results	1Q Results	％ vs. Prior Year	1st Half Forecasts	1st Half New Forecasts	Full Year Forecasts	Full Year New Forecasts	％ vs. Prior Year
Toys and Hobby	5,207	11,572	16,639	2,994	57.5%	6,500	6,500	16,000	16,000	96.2%
Network Entertainment	10,421	14,774	23,930	17,130	164.4%	14,000	21,500	28,000	28,000	117.0%
Visual and Music Production	3,171	5,910	11,665	4,583	144.5%	4,000	6,000	9,000	9,000	77.2%
Other	138	529	1,123	101	73.3%	500	500	1,000	1,000	89.0%
Elimination and Corporate	△ 799	△ 1,625	△ 3,717	△ 1,391	-	△ 2,000	△ 2,500	△ 4,000	△ 4,000	-
Total	18,139	31,160	49,641	23,419	129.1%	23,000	32,000	50,000	50,000	100.7%

Reference: Net Sales by Region (External sales after elimination) (millions of yen)

FY2016.3			FY2017.3
1Q Results	1st Half Results	Full Year Results	1Q Results	％ vs. Prior Year	1st Half Forecasts	1st Half New Forecasts	Full Year Forecasts	Full Year New Forecasts	％ vs. Prior Year
Japan	95,866	205,282	446,477	106,892	111.5%	207,000	223,000	445,000	445,000	99.7%
Americas	11,431	19,968	43,556	15,731	137.6%	27,000	26,000	53,000	53,000	121.7%
Europe	17,728	27,275	45,942	11,550	65.2%	23,500	22,500	46,000	46,000	100.1%
Asia	12,351	20,255	39,529	10,619	86.0%	17,500	18,500	36,000	36,000	91.1%
Elimination and Corporate	-	-	-	-	-	-	-	-	-	-
Total	137,376	272,780	575,504	144,793	105.4%	275,000	290,000	580,000	580,000	100.8%

Reference: Operating Income by Region (millions of yen)

FY2016.3			FY2017.3
1Q Results	1st Half Results	Full Year Results	1Q Results	％ vs. Prior Year	1st Half Forecasts	1st Half New Forecasts	Full Year Forecasts	Full Year New Forecasts	％ vs. Prior Year
Japan	12,719	23,512	40,970	15,589	122.6%	18,500	23,500	42,000	42,000	102.5%
Americas	2,235	3,068	3,840	4,189	187.4%	2,700	5,000	4,200	4,200	109.4%
Europe	2,033	3,343	4,113	2,598	127.8%	2,000	3,000	3,800	3,800	92.4%
Asia	2,559	3,702	5,235	2,266	88.6%	2,300	3,000	4,500	4,500	86.0%
Elimination and Corporate	△ 1,407	△ 2,465	△ 4,517	△ 1,223	-	△ 2,500	△ 2,500	△ 4,500	△ 4,500	-
Total	18,139	31,160	49,641	23,419	129.1%	23,000	32,000	50,000	50,000	100.7%

Other Data (millions of yen)

FY2016.3			FY2017.3
1Q Results	1st Half Results	Full Year Results	1Q Results	％ vs. Prior Year	1st Half Forecasts	1st Half New Forecasts	Full Year Forecasts	Full Year New Forecasts	％ vs. Prior Year
Capital Investments	5,323	9,925	21,321	5,073	95.3%	9,000	9,000	20,000	20,000	93.8%
Depreciation	4,144	9,792	21,626	4,356	105.1%	11,000	11,000	24,000	24,000	111.0%
R&D Investments	13,301	27,033	54,596	13,702	103.0%	25,000	25,000	55,000	55,000	100.7%
Advertising Expenses	7,292	15,904	37,733	7,022	96.3%	17,000	17,000	40,000	40,000	106.0%
Personnel Expenses	12,425	25,850	50,407	12,440	100.1%	24,000	24,000	50,000	50,000	99.2%

Forward-looking Statements:

This document 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.

【Sales of Major IPs （Groupwide）】 (billionyen)

FY2015.3	FY2016.3			FY2017.3
Full Year Results	1Q Results	1st Half Results	Full Year Results	1Q Results	1st Half New Forecasts	Full Year Forecasts
Mobile Suit Gundam	76.7	18.7	36.3	78.6	18.4	34.7	71.4
DRAGON BALL	19.4	8.3	16.2	34.9	8.0	17.3	34.9
ONE PIECE	24.6	5.2	12.3	23.3	9.5	17.1	24.6
Power Rangers	23.2	4.9	9.6	19.1	3.7	9.0	24.3
KAMEN RIDER	26.2	2.9	5.9	18.6	3.6	7.6	18.6
Yo-kai Watch	55.2	10.9	23.3	32.9	2.4	4.6	13.4
Anpanman	8.1	1.5	3.9	9.4	1.8	4.5	9.2
Pretty Cure	6.9	1.6	3.4	6.7	1.6	3.7	7.5
Digimon	0.2	0.2	0.4	2.3	1.0	1.6	6.6
Aikatsu!	11.7	1.1	2.4	4.6	1.1	2.9	5.6

【Sales of Major IPs (Toys and Hobby Business, BANDAI non-consolidated)】 (billionyen)

FY2015.3	FY2016.3			FY2017.3
Full Year Results	1Q Results	1st Half Results	Full Year Results	1Q Results	1st Half New Forecasts	Full Year Forecasts
Mobile Suit Gundam	22.9	6.9	13.7	25.8	6.8	13.9	28.0
KAMEN RIDER	20.6	2.1	4.6	15.7	3.3	6.9	16.0
Yo-kai Watch	55.2	9.7	21.6	30.8	2.2	3.7	12.0
DRAGON BALL	5.8	2.2	5.6	11.6	1.8	4.7	11.0
Anpanman	8.1	1.5	3.9	9.4	1.8	4.5	9.0
Power Rangers	11.3	3.0	4.6	7.8	2.3	4.6	9.0
Pretty Cure	6.5	1.6	3.4	6.6	1.6	3.7	7.5
Digimon	0.0	0	0.2	0.5	0.1	0.2	4.2
Ultraman	2.6	0.4	1.4	2.7	0.2	2.1	4.0
Aikatsu!	8.6	0.7	1.5	2.6	0.8	2.1	4.0

【Digital Card Sales (Units sold)】 (millionpieces)

FY2015.3	FY2016.3			FY2017.3
Full Year Results	1Q Results	1st Half Results	Full Year Results	1Q Results	1st Half New Forecasts	Full Year Forecasts
Digital card sales	269	58	120	233	46	125	250

【Network Entertainment Business (Sales by major category)】 (billion yen)

FY2015.3	FY2016.3			FY2017.3
Full Year Results	1Q Results	1st Half Results	Full Year Results	1Q Results	1st Half New Forecasts	Full Year Forecasts
Network content	82.3	19.6	42.3	103.9	34.9	67.0	108.0
Home video game software	86.5	31.7	49.2	95.7	29.7	48.0	96.0
Arcade game machine	72.1	11.7	26.6	57.9	13.8	27.0	62.0
Amusement facility	55.5	13.2	29.2	58.6	13.7	30.0	63.5

【Home Video Game Software (Number of titles and unit sales)】

FY2016.3						FY2017.3
1Q Results		1st Half Results		Full Year Results		1Q Results		1st Half New Forecasts		Full Year Forecasts
# of Titles	Units Sold (thousand)	# of Titles	Units Sold (thousand)	# of Titles	Units Sold (thousand)	#of Titles	Units sold (thousand)	#of Titles	Units sold (thousand)	#of Titles	Units sold (thousand)
Japan	8	652	29	1,922	69	4,698	9	780	25	2,400	56	5,000
U.S.	8	1,491	13	4,122	33	8,716	16	3,275	25	4,500	19	8,700
Europe	6	4,848	13	7,138	35	13,272	16	3,528	28	5,500	25	13,000
Group Total	22	6,991	55	13,182	137	26,686	41	7,583	78	12,400	100	26,700
Localized versions	16	-	35	-	80	-	16	-	38	-	54	-

After elimination of localized versions

Group Total

6

6,991

20

13,182

57

26,686

25

7,583

40

12,400

46

26,700

【Arcade Game Machines (Sales by major category, Japan)】 (billionyen)

Category	FY2015.3	FY2016.3			FY2017.3
	Full Year Results	1Q Results	1st Half Results	Full Year Results	1Q 1st Half New Results Forecasts		Full Year Forecasts
Sales of machines	34.1	4.3	10.5	25.5	6.5	11.0	29.0
Sales of prizes	29.7	5.6	12.7	25.0	5.7	13.0	26.5
Total	63.8	9.9	23.2	50.5	12.2	24.0	55.5

【Number of Amusement Facilities】

FY2015.3	FY2016.3			FY2017.3 (Plan)
Full Year Results	1Q Results	1st Half Results	Full Year Results	1Q Results	1st Half New Forecasts	Full Year Forecasts
Directly managed facilities	Japan	Start of term	211	202	202	202	209	209	205
		Openings	10	2	3	7	4	9	16
		Closures	19	3	4	4	1	1	0
		Increase/Decrease	fl 9	fl 1	fl 1	3	3	8	16
		End of term	202	201	201	205	212	217	221
	Overseas	Start of term	36	35	35	35	35	35	35
		Openings	2	0	0	1	1	1	0
		Closures	3	0	0	1	1	1	0
		Increase/Decrease	fl 1	0	0	0	0	0	0
		End of term	35	35	35	35	35	35	35
	Total	Start of term	247	237	237	237	244	244	240
		Openings	12	2	3	8	5	10	16
		Closures	22	3	4	5	2	2	0
		Increase/Decrease	fl 10	fl 1	fl 1	3	3	8	16
	End of term	237	236	236	240	247	252	256
Revenue- sharing facilities	Japan		10	10	14	74	81	141	374
	Overseas		1,036	1,031	1,057	1,014	1,007	1,007	990
	Total		1,046	1,041	1,071	1,088	1,088	1,148	1,364
Others	Total		10	10	11	14	17	19	19
Facilities Total			1,293	1,287	1,318	1,342	1,352	1,419	1,639

【Amusement Facilities (Existing-store sales, YOY, Japan)】

Apr.	May	Jun.	1Q (3 mo.)	Jul.	Aug.	Sep.	2Q (3 mo.)	1st Half
FY2017.3	107.0%	106.3%	109.1%	107.4%	-	-	-	-	-
FY2016.3	94.3%	98.6%	89.3%	94.3%	95.5%	93.1%	101.7%	96.2%	95.3%
FY2015.3	89.4%	95.6%	87.7%	91.0%	89.9%	93.9%	84.8%	90.0%	90.5%
Oct.	Nov.	Dec.	3Q (3 mo.)	3Q (9 mo.)	Jan.	Feb.	Mar.	4Q (3 mo.)	2nd Half	Full Year
FY2017.3	-	-	-	-	-	-	-	-	-	-	-
FY2016.3	99.2%	90.6%	102.5%	97.6%	96.0%	107.0%	102.5%	103.5%	104.6%	101.2%	98.2%
FY2015.3	89.7%	99.3%	89.5%	92.6%	91.1%	89.5%	95.9%	90.6%	91.5%	92.0%	91.2%

【Visual and Music Production Business（Sales by main category）】 (billion yen)

2016.3		2017.3
1Q Results	Full Year Results	1Q Results	Full Year Forecasts
Packages	4.6	17.8	5.5	17.3
Events, production, and others	6.8	34.1	8.1	25.7
Total	11.4	51.9	13.6	43.0

【Visual and Music Production Business （Number of copyrighted productions and running time ）】

Number of copyrighted productions（BANDAI VISUAL）

Total running time of all copyrighted productions (BANDAI VISUAL)

Number of copyrighted productions（SUNRISE and BANDAI NAMCO Pictures）

Total running time of all copyrighted productions (SUNRISE and BANDAI NAMCO Pictures)

770 series

2,692 hours

295 series

2,462 hours

As of June 30, 2016