Bandai Namco Holdings Inc.

1. Bandai Namco Holdings Inc. Lindsay Semler, Ian Beckman

2. Namco Bandai Holdings Inc. • On September 29th 2005, Bandai Company Inc., the toy giant, and Namco Limited, the game publisher announced they would join operations to form Namco Bandai Holdings Inc. • Merger made the company the second largest Japanese game and toy company behind Sega • Company sectors include: toys, visual software, video games software, amusement facilities, arcade game machines, mobile games, apparel, and network gaming

3. Namco Cybertainment Inc. • Nakamura Manufacturing Ltd. in 1955 • Masaya Nakamura • Originally produced children’s rides • 1970’s • Acquired Japanese division of Atari • Namco Arcade • Gee Bee, Bomb Bee and Cutie Q , designed by Toru Iwatani • 1980’s • Pole Position and Final Lap, first multi-player cabinet • Registered on the Tokyo Stock Exchange • Release first mega hit, Pac-Man • 1990’s • Namco Cybertainment, Incorporated • Arcadea,Consoles • Tekken and Soul Series

4. Bandai Company Inc. • 1950’s • Founded as a major producer of plastic model kits • 1960’s • Expanded market to include export sales of racing car sets • 1970’s • Bandai America Inc. was established as a local US Sales operation • 1980’s • Expanded to video planning and production producing its first animated feature “Ag Daros” • Began distribution of several video games for Nintendo, such as World Class Track Meet • Signed a contract in 1987 with Walt Disney for video products • 1990’s • Power Rangers made debut in 1993 gaining popularity in the US

5. Bandai Company Inc. • 2000’s • Tamagotchi launched in 2005 and won Toy of the Year in the UK • Manufacturer of toy licenses of the most popular brands in the US • Power Rangers • Pokemon • Dragon BallZ • Digimon • Tamagotchi • Girlz Connect • Manufacturer of toy licenses of the most popular brands in the US • Walt Disney • Cartoon Network

6. Namco Bandai Holdings Inc. • September 29th 2005 Bandai and Namco announced joining operations to form Namco Bandai Holdings Inc. • Product Categories: • Toys • Visual software and Video game software • Amusement Facilities • Arcade game machines • Mobile games • Apparel • Network Content • Business Divisions of Namco Bandai Holdings (USA) Inc.: • Bandai America Inc. (Toys) • Bandai Entertainment Inc. (Visual software) • Namco Bandai Games America Inc (Video games software) • Namco Cybertainment Inc. (Amusement facilities) • Namco Amercia Inc. (Arcade Machines) • Namco Networks America Inc. (Mobile Games)

7. Namco Bandai Merger • Merger motivation: shrinking consumer base and higher development costs • Bandai Strengths • Profitable toy maker • Ability to create appealing and profitable characters in US markets • Bandai Weakness • Suffered in game development compared to other companies in the market • Namco Strengths • Game development capabilities • Hold in video game market • Namco Weakness • Lack of global market

8. Expanding on Merger • Revival of past hit arcade games merging toys and Namcos game content • Dragon Buster, GAPLUS, Xevious • Production of figure toys based on Namco game content • Soul Caliber, Tekken • Installation of Deka-Tamagotchi at Namco facilities • Tamagotchi café’s • Development of Amusement machines Mobile Suit Gundam at Namco locations combining Bandai’s characters with Namco’s networking

9. Namco Bandai 2006 Annual Report

10. Since Merger 2006 • Pre-Merger Sales • Overseas: despite some video game hit titles, market down turn • Coin operated game machines increased with titles such as Mario Kart • Mobile Gundam series overseas returns increased sales • Future Business strategy: • Launch Tamagotchi Plus • Use long-established popular characters with new content overseas • Future Toys: • Ben10 (US boys), Naruto (US cards), Pocoyo (infant toys) • Future Video Games: • Dragon BallsZ Sparking!, Neo, Tekken, Dark Resurrection, RAIN, Tamagotchi 2

11. 2007 and 2008 • Expanded US contents overseas of Power Rangers, Tamagotchi, and Ben10 • Focused on Coin-Op machines by introducing mass-medal machines and creating new entertainments • Video game software development focused on blending strengths of Namco and Bandai and focused on organization between the different departments. • Established character toys remained firm, but lack of new hit products. • Video games overseas and arcade machines in Japan performed well. • Package software sales struggled in transition of hardware to next-generation • Ban10 popularity expands in US and Europe • Gundam series gains popularity in Asia

12. Namco Bandai Inc. Market Holding • Main sectors: Toys and Hobby and Game Content • 9th strongest video game publisher in 2008 • Total revenue of $1,468 million dollars • Net sales were 460,473 million yen • Japan - 346,736 million yen • Americas Region - 52,623 million yen • Power Ranger, Dragon Ball, Soul Caliber, Tekken

13. Namco Bandai Game Content

14. Future Plans • Toys • Strength products of established characters • Power Rangers, Masked Rider, Ultraman Series • Expand target customer to include adults • New character toys of Dragon BallZ as it’s popularity is growing overseas • Video game software • Use multi-platform strategy geared to user preferences globally • Improve profitability by narrowing down number of titles • Current Main Titles: Soul Calibur IV, Dragon BallZ, Family Trainer (WII)

15. Future Game Lineup • Active Life Outdoor Challenge • AFRO SAMURAI • Digimon World Championship® • Eternal Sonata™ • Namco Museum™ Virtual Arcade • NARUTO™: Ultimate Ninja Heroes® 2: The Phantom Fortress • NARUTO™: Ultimate Ninja® 3 • NARUTO™: Ultimate Ninja® Storm • National Geographic™ Panda • SOULCALIBUR® (Xbox LIVE® Arcade) • SOULCALIBUR® IV • Tales of Vesperia • Tamagotchi® Connection®: Corner Shop™ 3 • Warhammer® Battle March™ • We Cheer™ • We Ski™

16. References • [1] TM & BVS Entertainment, Inc. “Bandai’s Creation of Inspiration Operates on a Global Scale”. http://www.bandai.co.jp/e/corporate/global.html • [2] Nilsumi, H and Feldman, C. Game Spot. “Bandai, Namco to Merge”. May 2, 2005. http://www.gamespot.com/news/6123385.html • [3] 2006- 2008: Annual Reports. Namco Bandai Holdings Inc,. http://www.bandainamco.co.jp/en/ir/annual/index.html • [4] Schilling, Mark. "Namco Bandai buys Infogrames stake." Variety. 10 Sept. 2008. <http://www.variety.com/article/vr1117992022.html?categoryid=1079&cs=1>. • [5] Matthews, Matt. "Edge's Top 20 Publishers 2008." Edge. 28 July 2008. <http://www.edge-online.com/features/edges-top-20-publishers-2008>. • [6] Namco Bandai Holdings Inc. "Financial Highlights and Supplemental Data for the Fiscal Year Ended March 2008." Press release. 8 May 2008. <http://www.bandainamco.co.jp/en/releases/images/3/44275.pdf>. • [7] Ryan. "SD-Tekken reports Tekken 6 will not receive a US release in arcades." Arcade Renaissance. 13 Mar. 2008. <http://www.arcade-renaissance.com/2008/03/sd-tekken-reports-tekken-6-will-not.html>. • [8] Namco Bandai Holdings Inc. "New Releases Games." Press release. <http://www.namcobandaigames.com/games/new_releases>.