Namco Bandai Holdings Consolidated Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2009

Namco Bandai Holdings experienced a period of significant financial contraction during the first nine months of the fiscal year ending March 31, 2009. Net sales declined to 315.6 billion yen, while operating income fell to 19.8 billion yen, representing a notable decrease from the 335.6 billion yen in sales and 25.7 billion yen in operating income recorded during the same period the previous year. This downturn, characterized by a 38.7% drop in net income to 9.0 billion yen, was primarily driven by weakened private consumption, global financial instability, and increased operational expenses, including substantial goodwill amortization.

Despite these headwinds, the Game Contents segment demonstrated resilience, bolstered by the successful performance of titles such as Soul Calibur IV. To navigate the challenging economic climate, the organization prioritized portfolio optimization and increased efficiency within its amusement facilities. Furthermore, the company maintained its full-year projections while implementing a balanced multi-platform strategy to sustain its market presence across Japan and international territories.

Strategic reorganization and expansion efforts served as the primary vehicles for long-term growth during this period. The company initiated an absorption-type merger between BANDAI NETWORKS and NAMCO BANDAI Games to consolidate its network-related content capabilities. Simultaneously, the group pursued international growth by acquiring a 34% stake in Distribution Partners S.A.S. to strengthen its European marketing infrastructure. Additionally, the acquisition of D3 INC. as a wholly-owned subsidiary was launched to enhance the company’s home video game and mobile content portfolios. These initiatives reflect a broader commitment to streamlining operations and securing a competitive advantage in an increasingly volatile global market.