Bandai Namco Group FY2023 Q2 Earnings Release
Download PDFNov, 2023 Bandai Namco Group
Information Meeting
Fiscal Year Ending March 2024
1st Half Result Presentation
November 7, 2023
FY2024.3 1st Half Results
FY 2023.31st HalfResults FY 2024.3
1st Half Forecast (as of Aug. 2023) FY 2024.3
1st HalfResults Vs. Previous
Year’s Results Vs. Previous
Forecast
Net Sales 477.6 475.0 502.0 +24.4+27.0
Operating Profit 81.660.0 65.4-16.2 +5.4
Recurring Profit 92.365.0 73.9-18.4 +8.9
Profit Attributable to
Owners of Parent
66.5 44.0 52.1-14.4 +8.1
Capital Investments 16.513.0 16.8 +0.3+3.8
Depreciation 11.212.0 14.5 +3.3+2.5
Advertising Expenses 22.434.0 28.0 +5.6 -6.0
Personnel Expenses 39.042.0 43.8 +4.8+1.8
billion yen
FY2024.3 1st Half Results
FY 2023.31st HalfResults FY 2024.3
1st Half Forecast (as of Aug. 2023) FY 2024.3
1st HalfResults Vs. Previous
Year’s Results Vs. Previous
Forecast
Digital
Segment sales 193.8 160.0 174.3 -19.5 +14.3
Segment profit 44.6 17.0 15.5-29.1 -1.5
Toys and Hobby
Segment sales 213.3 240.0 249.8 +36.5 +9.8
Segment profit 33.540.0 45.7+12.2 +5.7
IP Production
Segment sales 35.036.0 33.3 -1.7 -2.7
Segment profit 3.4 4.0 2.3-1.1 -1.7
Amusement
Segment sales 48.6 57.0 59.2+10.6 +2.2
Segment profit 4.85.0 6.9+2.1 +1.9
Other
Segment sales 15.015.0 16.0+1.0+1.0
Segment profit 0.40.5 0.6+0.2 +0.1
Elimination and
Corporate Segment sales -28.4 -33.0 -30.7 -2.3 +2.3
Segment profit -5.3 -6.5 -5.7 -0.4 +0.8
Consolidated
Net sales 477.6 475.0 502.0+24.4 +27.0
Operating profit 81.660.0 65.4-16.2 +5.4
billion yen
FY2024.3 1st Half Results
Entertainment Unit
•Favorable results with products for the mature fan base, card products, capsule toys, etc.
• Favorable results with established IP products
• Proactive commercialization of non -IP products
•
Favorable results with major app titles, such as DRAGON BALL and ONE PIECE
• Start of new online PC game
• ARMORED CORE VI —Worldwide hit
→ Amortization of development expenses, upfront marketing costs
• Repeat title unit sales — Down in comparison with previous year, when
results were favorable
Home console games Differences in title lineup and product mix had an influence
Toys and Hobby
Business : Continued popularity of categories recording solid results around the world
Digital Business
: Network content
FY2024.3 1st Half Results
IP Production Unit
Amusement Unit
•Production of multiple major visual works
Hit status of Mobile Suit Gundam THE WITCH FROM MERCURY influenced popularity of Group
products and services
• Favorable results in licensing, etc.
• Influence of YoY difference in packaged product lineup, decline in number of major events held
• Favorable sales of new amusement machines, update kits
• Sales at existing facilities in Japan up 2.4% YoY
• Popularity enjoyed by facilities collaborating with IP, products, and services and leveraging
Bandai Namco’s distinctive strengths
Forecast for Full – Year of FY2024.3
FY2024.3
Initial Full- Year
Forecast FY2024.3
Latest Full -Year
Forecast
Net Sales 1,000.0 1,000.0
Operating Profit 125.0125.0
Recurring Profit 129.0134.0
Profit Attributable to
Owners of Parent 91.0 91.0
Capital Investments 28.028.0
Depreciation 27.027.0
Advertising Expenses 66.066.0
Personnel Expenses 83.083.0
We revised the recurring profit
forecast due to our expectation
for an increase in non -operating
income resulting from foreign
exchange gains.
Forecast for Full – Year of FY2024.3
FY2024.3
Initial Full- Year
Forecast FY2024.3
Latest Full -Year
Forecast Vs. Initial
Forecast
Digital
Segment sales 390.0 360.0 -30.0
Segment profit 58.0 41.0-17.0
Toys and Hobby
Segment sales 450.0 480.0+30.0
Segment profit 63.0 75.0+12.0
IP Production
Segment sales 83.0 83.0 —
Segment profit 11.011.0 —
Amusement
Segment sales 110.0110.0 —
Segment profit 5.08.0+3.0
Other
Segment sales 31.0 31.0 —
Segment profit 1.01.0 —
Elimination and
Corporate Segment sales -64.0 -64.0 —
Segment profit -13.0 -11.0 +2.0
Consolidated
Net sales 1,000.0 1,000.0 —
Operating profit 125.0125.0 —
Trends in the Digital Business
Favorable results with key app titles
Strengthening business foundation through analysis of user
trend data
Network content Home console games
Launching new titles with a focus on quality
Securing a high level of approval worldwide Start of sales planned for November 16, 2023
Start of sales planned for January 26, 2024
Strengthening development capabilities
→ Portfolio that enables us to demonstrate strengths
→ Implementing development on a business -wide basis while
mutually leveraging know -how
Second half
Launching multiple major titles
Promoting longer product lives
Trends in the Toys and Hobby Business
Items for the year-end selling season in Japan
Securing new fans with major promotion for one- year
anniversary of launch
Aiming to build into an established category
in overseas markets
Expanding awareness of product brands through initiatives combining
digital and real elements
TAMASHII NATIONS STORE NEW YORK opened in September
Trends in the IP Production Business
Continually creating buzz among multiple generations of fans
Strengthening IP creation abilities
Strengthening ability to create original IP
Creating diverse IP through the use of external networks
Enhancing production environments and
developing human resources
Implementing monetization in alignment
with IP worldviews
Gundam series Promising products in the 2nd half and thereafter
Providing diverse products through a variety of approaches
Trends in the Amusement Business
Developing amusement machines that reflect user needs Implementing worldwide development of facilities that
leverage Bandai Namco’s distinctive strengths
Starting online operations
in inland ChinaOpening Bandai Namco Cross Store Camden, London
Implementing new openings and post
-renovation openings
in the second half and thereafter
Bandai Namco Cross Store KYOTO Bandai Namco Cross Store TOKYO VS PARK AEON MALL KYOTO
Note on Projections
This document contains forward looking statements and information related to the Bandai
Namco Group that are based on our knowledge as well as various assumptions made on the basis of information currently available. The words “forecast,” “plan,” “target,”
“estimation,” “projection,” “intend,” “will” and similar expressions, as related to the Group, are intended to identify forward looking statements and information. Actual results could differ materially from those projected in such forward- looking statements.
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Bandai Namco Group
Information Meeting
Fiscal Year Ending March 2024
1st Half Result Presentation
November 7, 2023