NEWS LETTER September 2015

BANDAI NAMCO Mirai-Kenkyusho, 4-5-15 BANDAI NAMCO Holdings Inc. Higashi-Shinagawa, Shinagawa-ku, Tokyo 140-8590

Management Interview with New President Interview with the President Mitsuaki Taguchi

“I would like the Group become an even more free and open place for employees to work.”

After the General Meeting of Shareholders and the Meeting of the Board of Directors held on June 22, Mitsuaki Taguchi became the new President and Representative Director of BANDAI NAMCO Holdings. We asked President Taguchi, the new leader of the BANDAI NAMCO Group, about his approach to work and ambitions for the Group, the start of the Mid-term Plan that was launched in April, and recent Group trends.

Would you discuss your approach and In addition, to expand the IP axis ambitions as the new president? strategy around the world, we will Taguchi: I was very surprised when further deepen initiatives with a vari- Chairman Shukuo Ishikawa, the former ety of partners in Japan and overseas. president, asked me about becoming president. As president, I am once again What is your view of the feeling the weight of my responsibilities. entertainment industry? My major mission is to steadily implement Taguchi: The entertainment industry the current Mid-term Plan, which was is changing dramatically each year. launched in FY2016.3, and to realize our A major factor that influences our Mitsuaki Taguchi President & Representative Director, vision of becoming “The Leading Innovator results is the extent to which we can BANDAI NAMCO Holdings Inc. in Global Entertainment.” Accordingly, roll out appealing products and ser- I would like the Group become an even vices that leverage IP and earn the support to be the first to grasp the needs of cus- more free and open place for employees of today’s consumers. In addition, the tomers and to work to meet those needs. to work. infrastructure environment, including Naoharu Yamashina, the founder of devices, platforms, and networks that are Bandai, used the phrase “bandai fueki,” What is the division of roles between used to communicate with customers, which incorporates the idea that to survive you and Chairman Ishikawa? have also advanced with the times, and the company should continue to change. Taguchi: Basically, the two of us collab- to ensure that we do not fall behind, we I believe that always looking one step orate. In Group management, Chairman must always extend “antenna” to antici- ahead will lead to hit products and services. Ishikawa works to expand our business pate changes. The BANDAI NAMCO in new fields that are not extensions of Group’s business initiatives cover a wide The first quarter of Mid-term Plan’s previous businesses, such as future-focused range of content outlets, such as products, first year has ended. What is your view new businesses and alliances with com- services, and facilities. The pace of out- of the quarter? panies in other industries. let turnover is rapid, and there is no guar- Taguchi: Businesses and regions that had On the other hand, I work to advance antee that outlets previously supported performed well in the previous fiscal year our strategies based on the Mid-term Plan. by customers will continue to earn cus- continued to record favorable results in I will focus on optimal resource allocation tomer support in the future. Accordingly, the first quarter of FY2016.3. I think that and investment in order to further strength- we must continually go one step further we were able to get off to a good start. en the IP* axis strategy, which is the in identifying and creating new outlets. Moving forward, we will step up our central business strategy in the current Masaya Nakamura, the founder of efforts and the entire Group will work Mid-term Plan and the greatest strength NAMCO, frequently used the word together, doing our utmost to achieve our of the BANDAI NAMCO Group. “omote-nashi (hospitality).” This means numerical plan.

*IP: Characters and other intellectual property September 2015 1 Management Interview with the President

Favorable results in Asia, where the Group is was launched in February 2015. In addi- targeting higher sales tion, new titles are also contributing to favorable results. Moreover, in a rapidly changing market, network content is Would you comment on Bandai’s taken steps to develop adult women cus- enjoying stable popularity in Japan, includ- announcement of a new president? tomers for Pretty Guardian Sailor Moon, ing game applications for smartphones Taguchi: Kazunori Ueno recently retired and moving forward we will also strength- and online games for PCs. We have also as President and Representative Director en our approach to these customers. commenced full-scale initiatives in Asia of Bandai to became Chairman and and other overseas markets, and we are Director. This reflects Mr. Ueno’s decision What activities is the Toys and Hobby getting favorable results with these ini- to give priority to the provision of nurs- business implementing overseas? tiatives. In the future, we will launch ing care for a family member. Masaru Taguchi: In Europe and the Americas, strategic titles, such as DRAGON BALL Kawaguchi, Senior Managing Director, Power Rangers plays a central role, and Z Dokkan Battle, on a worldwide basis, became Bandai’s new President & CEO, from this year Power Rangers Dino Charge including Asia, Europe, and the Americas. and Yusuke Fukuda, Senior Managing has gotten off to a favorable start. In the Furthermore, we are working to achieve Director, became Executive Vice President Toys and Hobby business in Europe and a recovery in the amusement business by & COO. This change occurred during the Americas, Japan controls development, enhancing and strengthening the value the term, but Mr. Kawaguchi has exten- while Europe and the Americas focus on chain, including arcade game machines sive experience in Bandai’s core business sales and marketing. Based on this new and amusement facilities. divisions, such as toys, and Mr. Fukuda system, we are moving ahead with measures is well versed in business divisions as to reinforce our foundation in these markets. Are results favorable in Asia? well as administration and planning. In the future, we will focus on external Taguchi: In the current Mid-term Plan, Together, they will form a well-balanced partnerships, as with the BIG HERO 6 Asia is positioned as a region with high system of representative directors, and partnership with Disney, and we will growth potential, and our strategy calls for Mr. Ueno will support them from his enhance the lineup of IP for which we are doubling sales over three years. In Asia, position as Chairman. I have absolutely conducting business development initiatives. there are many fans of the IP for which we no concerns about this system of two are conducting business development ini- representative directors, and I am confi- What is the status of tiatives, and at this point it looks as if we dent that the employees will respond with the Network Entertainment SBU? might be able to expand our business at a enthusiasm and support the new leader- Taguchi: Favorable results are being record- pace that exceeds our initial expectations. ship team. ed by ONE PIECE, DRAGONBALL, Mobile Suit Gundam, IDOLM@STER, What is the situation in What is the situation in NARUTO, and other products. In this the Visual and Music Production SBU? the Toys and Hobby SBU? way, the Network Entertainment SBU is Taguchi: Live events, where IP fans can Taguchi: Yo-kai Watch products became a driving the Group’s results. In Europe have fun in the same location, are becom- hit in the previous fiscal year. They main- and the Americas, performance in the ing a new pillar of our operations, along tain steady popularity in Japan, and they home video game software business was with the packaged products business. In have been launched in Asia. The Mobile better than expected. Strong repeat sales addition, we are also seeing growth in Suit Gundam series marked the 35th anni- are being recorded by the DRAGONBALL related businesses, such as fan clubs and versary of Gundam plastic models. Gundam XENOVERSE home video game, which merchandise sales. Love Live! School idol products are highly popular not only in Japan but also in Asia. A new TV animation, Mobile Suit Gundam: Iron-Blooded Orphans, Directors of BANDAI Co., Ltd. will start from October 2015, and we expect (As of August 5th, 2015)

Gundam to become even more popular. In Chairman & Director Kazunori Ueno addition, we will launch focus products President & CEO Masaru Kawaguchi for the busy year-end sales period for such Executive Vice President & COO Yusuke Fukuda established IP as KAMEN RIDER, for Managing Director Yoshitaka Tao which a new program will start in the fall; Director Akihiro Sato Director Naomi Tobita Super Sentai (Power Rangers); and Pretty Masaru Kawaguchi Yusuke Fukuda Cure!. Moreover, we will also start the roll Director Kazuhiro Takenaka President & CEO Executive Vice President & COO out of Kamisama Minarai Himitsu no Director Takahiro Mizuno Cocotama, a new IP for girls. We have Director (part time) Masaharu Igarashi

2 BANDAI NAMCO NEWS Interview with New President Mitsuaki Taguchi

Swinging the Bat Without Fearing Failure project, which involves linked visual and I joined Bandai, I have failed many music elements, has become a major hit times, and I tell younger employees IP. For example, it enjoyed strong success that “I was a leader in failing.” with the June release of the theatrical film However, I definitely want to say Love Live! The School Idol Movie, which “Don’t be afraid of failure.” If you was No. 1 in number of viewers on the are afraid of failure you cannot accom- weekend for three consecutive weeks. In plish anything. If you learn from the addition, the Mobile Suit Gundam THE experience of failure then it is not a ORIGIN series has been a hit from the first waste. I would like to create a corpo- work, and we are planning to launch the rate culture in which we watch over second work in fall 2015. We have also our failures and make sure to turn had hits with live action films, such as Ryuzo them into food for the future. and the Seven Henchmen. Moving forward, I would like the Visual and Music Production Would you discuss the Group’s SBU to rapidly take on new challenges, for future policies? offer new Gundam products and services both established and new work. Taguchi: Under the current Mid-term Plan, in Asia at the same time as in Japan, and the major themes are strengthening the furthermore we will take steps to lever- You have talked about establishing IP axis strategy and implementing busi- age these initiatives in order to break a corporate culture where people ness development in Asia. To those ends, through to worldwide launches. I con- take on challenges. a major issue will be what we do to max- sider these aggressive IP strengthening Would you comment on this goal? imize IP value. I think that Mobile Suit initiatives to be my mission, and I plan Taguchi: I would like to create a corporate Gundam will play a leading role in these to swing the bat decisively. I would like culture where young people are even initiatives. Gundam is very popular in to ask for everyone’s continued guidance more eager to take on challenges. Since Asia, and enjoys strong demand. We will and encouragement in the future.

Profile of President Assignment to plastic model department More than 10 transfers Mitsuaki Taguchi After he entered the company he was assigned After about two years in the plastic model to the plastic model department. This was the department, he transferred to the fashion height of the boom in Gundam plastic models. department, which was a new business He worked in sales, but the department’s department. He subsequently gained experience philosophy for employees was not to go outside with more than 10 business projects. As indicated Hobbies and interests the company on sales visits until they became by the statement “I was a leader in failing,” he Golf, baseball, mountain climbing, boating full-fledged employees, so he did not go out on launched a new original children’s fashion brand, sales calls for a year. His initial intention was to but cumulative losses totaled ¥600 million over Books and movies that made stay for just a year, but he then thought he would six years and eventually the Company shut it an impression on President Taguchi “not quit until he affirmed his own independence down. He failed many times, but he accumulated Kokou no Hito (The Climber), Hula Girls as a person.” On that basis, he worked hard in many valuable experiences, and subsequently his department. The sales manual that he prepared he successfully expanded the vending machine Ambition to be a teacher at the end of his first year earned him praise capsule products business and the lifestyle- When he was a student, President Taguchi aimed from the department chief for the first time. related products business. to be a teacher in his hometown of Akita, and he enrolled in a teacher training course. He Words that he remembers Self-evaluation and reputation within obtained teaching certificates for junior and His boss in the plastic model department had the company senior high school social studies and Japanese high expectations, both of him and of others, President Taguchi says, “In business, I delegate language, but there were no openings for new and he was influenced by his boss in many ways. authority, but on the other hand, it’s ok even if teachers. As a result, he entered Bandai with In particular, the words “always consider the worst strike out, so I stand in the batter’s box and take the intention of staying just one year and once possible outcome” became one of his policies in my swings.” Within the Company, he is known again trying to become a teacher the following his subsequent work starting up a variety of new as someone who “steadily advances work” and year. He says that the reason he chose Bandai businesses. He began to always take an optimistic who “encourages others to take on challenges.” is that it was “a company that provides dreams outlook while simultaneously considering the to children.” potential loss from the worst case scenario.

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