BANDAI NAMCO Group ANNUAL REPORT 2013
Total Page:16
File Type:pdf, Size:1020Kb
BANDAI NAMCO Group Group NAMCO BANDAI ANNUAL REPORT 2013 REPORT ANNUAL BANDAI NAMCO Group ANNUAL REPORT 2013 PROFILE The BANDAI NAMCO Group develops entertainment-related products and services in a wide range of fi elds, including toys, arcade game machines, home video game software, visual content, network content, and amusement facilities. In accordance with our Mid-term Plan, which includes the vision of “empower, Gain Momentum, Accelerate evolution,” we are aiming to be No. 1 with strong conviction. On that basis, we are committed to being “the leading Innovator in Global entertainment” and recording strong growth. OUR MISSION DREAMS, FUN STATEMENT AND INSPIRATION Through our entertainment products and services, BANDAI NAMCO will continue to provide “Dreams, Fun and Inspiration” to people around the world, based on our boundless creativity and enthusiasm. THE LEADING OUR VISION INNOVATOR IN GLOBAL ENTERTAINMENT As an entertainment leader across the ages, BANDAI NAMCO is constantly exploring new areas and heights in entertainment. We aim to be loved by people who have fun and will earn their trust as “the Leading Innovator in Global Entertainment.” CONTENTS 02 The Strengths of the BANDAI NAMCO Group 23 Review of Strategic Business Unit (SBU) Operations and Focus Strategies 04 Board of Directors and Audit & Supervisory Board Members 26 The BANDAI NAMCO Group’s CSR Initiatives 06 Consolidated Financial Highlights 28 Corporate Governance 08 Mid-term Plan 31 Financial Section 10 Top Message 65 Corporate Data 13 Special Feature: IP AXIS STRATEGY: 66 Overview of Main Group Companies Maximizing the Value of Our Intellectual Property —Explanations and examples of our Groupwide strategies OVERVIEW Net Sales: OF THE GROUP ¥487.2 billion (FY2013.3) Operating Income: ¥48.6 billion ROE: % Number of 14.1 Employees: 6,983 Group Organization Strategic Business Units (SBUs) Core Company TOYS AND HOBBY Bandai NAMCO BANDAI HOLDINGS CONTENT NAMCO BANDAI Games AMUSEMENT FACILITY NAMCO AFFILIATED BUSINESS COMPANIES (supporting the Group) Net Sales by Segment Reference: Contributions to Net Sales by Geographic Region Other Asia, excluding Japan Europe 4.9% 3.9% Amusement Facility 5.8% Americas 11.5% Toys and Hobby 6.9% 33.1% 2013 2013 Content Japan 50.5% 83.4% Note: Percentage fi gures are calculated based on sales before Note: Percentage fi gures are calculated based on external sales. elimination of internal transactions. Figures are estimates based on management accounting. Forward-Looking Statements The forward-looking statements in this annual report are based on the information available to management as of August 2013 and include various risks and uncertainties. Accordingly, Notes actual results may differ materially from these projections for a variety of reasons. Major 1. All fi gures in this annual report are rounded to the nearest unit. factors that could infl uence actual results include changes in the BANDAI NAMCO Group’s 2. FY2013.3 and the year under review represent the one-year period ended March 31, 2013. operating environment, market trends, and exchange rate fl uctuations. 3. Figures in this annual report are as of August 2013. 01 THE STRENGTHSSTRENGTHS OFOF THE BANDAIBANDAI NAMCONAMCO GROUP GROUP Toys Visual content Apparel Home video Network content game software Business development capabilities Distribution of video on demand Technology Live (VOD) content performances Vending Prizes for machine Strong Content amusement capsule machines toys (IP*) Planning and Human Development Resources Amusement Plastic facilities models Business development capabilities Cards Music content Arcade game Web machines Candy toys * IP: Characters and other intellectual property In a wide range of business areas, the BANDAI NAMCO Group is conducting speedy development of its IP (characters and other intellectual property), which has fans around the world. The full potential of our IP is brought out by our advanced planning and development capabilities, our high levels of technical skill, and our employees, who are passionate about entertainment. Leveraging these distinctive strengths of the Group, we will strive to realize sustained growth in the years ahead. 02 STRATEGIC BUSINESS UNIT (SBU) The BANDAI NAMCO Group comprises NAMCO BANDAI Holdings Inc., which is a pure holding company, three strategic business units (SBUs), and affi liated business companies that support the work of the SBUs. The SBUs, which encompass the operating companies in each fi eld, formulate and implement business strategies and provide a diverse range of entertainment in Japan and overseas. TOYS AND HOBBY Net Sales Operating Income ¥ billion ¥ billion MID-TERM VISION True Globalization 178.0 173.0 158.4 Towards globalization, we are striving to become the premier company in the character merchandising business. 16.1 13.8 11.3 Apparel Plastic Toys models Vending Candy Cards machine toys capsule 2011 2012 2013 2011 2012 2013 toys CONTENT Net Sales Operating Income ¥ billion ¥ billion 263.6 36.4 MID-TERM Become the No. 1 Content Company VISION in Japan and Borderless Development 225.5 179.9 We are implementing borderless operations, targeting a range of exits,including overseas markets. 17.0 Prizes for Arcade Network Live amusement Music game content Performances machines content machines 3.1 Distribution Home of video on Web video Visual demand (VOD) game content 2011 2012 2013 2011 2012 2013 content software AMUSEMENT FACILITY Net Sales Operating Income ¥ billion ¥ billion MID-TERM Become an Overwhelming Leader VISION in the Market We provide amusement facilities that leverage BANDAI NAMCO’s distinctive strengths in order to provide value. 62.3 61.0 60.2 1.8 2.4 1.7 Amusement facilities 2011 2012 2013 2011 2012 2013 For the years ended March 31 03 BOARD OF DIRECTORS AND AUDIT & SUPERVISORY BOARD MEMBERS (Back, from left) Tomohisa Tabuchi, Nobuo Sayama, Yuji Asako, Masahiro Tachibana, Satoshi Oshita (Front, from left) Manabu Tazaki, Shuji Ohtsu, Kazunori Ueno, Shukuo Ishikawa 04 BOARD OF DIRECTORSAND AUDIT AUDIT & SUPERVISORY& SUPERVISORY BOARD MEMBERSMEMBERSAs of June 24, 24 2013 DIRECTORS President and CEO, Representative Director Shukuo Ishikawa Executive Vice President, Representative Director Kazunori Ueno (President and Representative Director, Bandai Co., Ltd.) Director Shuji Ohtsu Director Yuji Asako Director (Part-time) Satoshi Oshita (President and Representative Director, NAMCO BANDAI Games Inc.) Director (Part-time) Masahiro Tachibana (President and Representative Director, NAMCO LIMITED) Director (Outside) Manabu Tazaki Director (Outside) Nobuo Sayama Director (Outside) Tomohisa Tabuchi AUDIT & SUPERVISORY BOARD MEMBERS Audit & Supervisory Board Member (Full-time) Koichiro Honma Audit & Supervisory Board Member (Full-time, Outside) Katsuhiko Kohtari Audit & Supervisory Board Member (Outside) Osamu Sudoh Audit & Supervisory Board Member (Outside) Kouji Yanase (From left) Kouji Yanase, Osamu Sudoh, Katsuhiko Kohtari, Koichiro Honma 05 CONSOLIDATED FINANCIAL HIGHLIGHTS NAMCO BANDAI Holdings Inc. and Consolidated Subsidiaries For the Years Ended March 31 FY2013.3 NET SALES OPERATING INCOME Up 7.3% YOY Up 40.6% YOY ¥487.2 billion ¥48.6 billion OPERATING INCOME MARGIN Net Sales Overseas Sales Proportion ¥ billion / % FY2012.3 7.6% 10.0 % 487.2 454.2 426.4 Operating Income Operating Income Margin 394.2 ¥ billion / % 378.5 48.6 25.1 24.4 10.0 21.9 34.6 18.0 18.1 7.6 22.3 5.2 16.3 4.1 1.9 0.5 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 GROSS PROFIT RETURN ON EQUITY (ROE) Up 9.3% YOY FY2012.3 9.1% ¥183.1 billion 14.1 % Gross Profi t Gross Profi t Margin Total Net Assets ROE ¥ billion / % ¥ billion / % 183.1 167.5 146.0 139.4 260.6 248.8 128.8 229.0 213.7 213.1 37.6 36.9 14.1 35.4 4.3 9.1 34.2 34.0 0.8 –12.4 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 NET INCOME RETURN ON ASSETS (ROA) Up 67.8% YOY ¥32.4 billion FY2012.3 10.7% 14.0% Net Income (Loss) 32.4 Total Assets ROA ¥ billion ¥ billion / % 19.3 11.8 374.2 363.4 342.2 325.9 308.3 –29.9 1.8 14.0 10.7 6.3 0.6 5.2 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 06 CASH FLOWS FROM OPERATING ACTIVITIES SALES OF MAJOR CHARACTERS (Group total) Mobile Suit Gundam series Down 6.9% YOY ¥36.4 billion Free Cash Flows* ¥65.2 billion ¥ billion 23.8 21.6 KAMEN RIDER series 15.2 9.0 ¥34.0 billion 0.7 2009 2010 2011 2012 2013 ONE PIECE * Free cash fl ows = Net cash provided by operating activities + Net cash used in investing activities ¥33.9 billion Interest-Bearing Debt Debt/Equity Ratio* Power Rangers series ¥ billion / times 20.8 19.8 ¥20.8 billion 12.5 13.3 0.08 0.09 0.06 0.05 3.7 0.02 UNIT SALES OF HOME VIDEO GAME SOFTWARE 2009 2010 2011 2012 2013 * Debt/equity ratio = Interest-bearing debt / Total shareholders’ equity 97 titles 24,585 thousand Note: After elimination of localized versions CASH DIVIDENDS PER SHARE Unit Sales by Region Up ¥19 YOY ¥45 Europe 22.5% Japan NET INCOME PER SHARE (BASIC) 2013 38.4% North America Up ¥61.78 YOY ¥147.40 39.1% Cash Dividends per Share Yen 45 SALES OF EXISTING AMUSEMENT FACILITIES 26 24 24 24 IN JAPAN Down 4.5% YOY 2009 2010 2011 2012 2013 95.5% 07 MID-TERM PLAN Mid-term Plan of the BANDAI NAMCO Group (From April 2012 to March 2015) The BANDAI NAMCO Group aims at the vision of becoming “the Leading Innovator in Global Entertainment” under a mission to bring “Dreams, Fun and Inspiration” to the world. Since the management integration in 2005, we have promoted the development of our management base under the Mid-term Plan from April 2006 to March 2009 and of a business base for global growth under the Mid-term Plan from April 2009 to March 2012.