NEWSLETTER March 2021
BANDAI NAMCO Holdings Inc. BANDAI NAMCO Mirai-Kenkyusho 5-37-8 Shiba, Minato-ku, Tokyo 108-0014
Interview with the President
Going forward, the Group’s businesses will work together under the ALL BANDAI NAMCO concept and strongly advance the IP axis strategy around the world.
BANDAI NAMCO Holdings Inc. has announced its results for the first nine months of FY2021.3 (April to December, 2020), as well as the Group’s new organizational structure from FY2022.3. In this issue of the newsletter, BANDAI NAMCO Holdings’ President Mitsuaki Taguchi discusses the Group’s FY2021.3 results, as well as the new Unit structure and officer system, which will take effect from FY2022.3 Mitsuaki Taguchi President & Representative Director, BANDAI NAMCO Holdings Inc. Would you provide an overview of previous users and new customers. Moreover, the results for the first nine months of in Japan, in addition to established IP, contri- unit sales of repeat titles for the nine-month FY2021.3? butions to results were also made by the rapid period reached 20.69 million units, compared Taguchi: For the nine-month period, we achieved commercialization of new IP*, such as Demon with 11.25 million units in the same period of net sales of ¥543.4 billion and operating profit Slayer: Kimetsu no Yaiba and Disney: Twist- the previous fiscal year. We were able to effec- of ¥72.9 billion. This marks the achievement ed-Wonderland. Favorable results were also tively meet demand associated with the trend of record high sales and profits for the first nine recorded in toy-related items, such as in the toward people staying at home. months of a fiscal year. confectionery category, where the Charapaki Moving forward, in both network content The Group has businesses that have been series became a hit. Products sold at amusement and home video games, we will continue to significantly affected by the spread of COVID- facilities were affected by the closure of facilities, focus on the high-quality titles that are supported 19, as seen with the closure of amusement especially in the first quarter, but nonetheless by customers and to maintain communications facilities and the cancellation of live events. the Toys and Hobby business overall achieved with customers through events and updates. On the other hand, we also have businesses that record-high results. We will also advance the development of major have benefited from demand associated with In the fourth quarter, we will launch new home video game titles, such as SCARLET people staying at home, such as products for series for established IP, such as Super Sentai NEXUS and Elden Ring, which we are planning the mature fan base in the Toys and Hobby and PRETTY CURE!, and will continue to address to launch in the future. In addition, we will business and home video games in the Network the mature fan base, where we have secured advance marketing measures and implement Entertainment business. In difficult circum- demand associated with the trend toward people future-focused investment, such as research stances, all of our employees have worked hard staying at home. In addition, we will strengthen into new technologies. to confront the unprecedented COVID-19 sit- measures to address digitalization in each region uation, to implement countermeasures on the and category. In these ways, we will work to What is the situation in the front lines to help prevent the spread of the implement initiatives that will foster growth in Real Entertainment business? infection, and to aggressively address the trend FY2022.3 and thereafter. Taguchi: In the Real Entertainment business, toward digitalization. amusement facilities around the world were What is the situation in the closed or had shortened operating hours due to Please discuss the situation in each Network Entertainment business? the spread of COVID-19, and this affected the business. First, what are the Taguchi: As a result of continued measures to amusement facility business as well as sales of circumstances in the address demand from customers around the amusement machines. Toys and Hobby business? world, the Network Entertainment Business Looking at game centers in Japan, the var- Taguchi: In the Toys and Hobby business, prod- registered favorable results with mainstay ious measures implemented from the first half ucts for the mature fan base, such as Gundam network content titles, including titles in the of the fiscal year are showing results. Going plastic models and collectible figures, were DRAGON BALL series and THE IDOLM@ forward, the COVID-19 environment is popular around the world. We responded rapidly STER series, and network content sales increased expected to remain challenging, and accord- to digitalization, and as a result we captured year on year. In home video games, there were ingly we will implement structural reforms demand from existing users, as well as from only a few new title launches, but nonetheless in the Real Entertainment business. * IP: Characters and other intellectual property March 2021 1 (Information in this section is as of the end of February 2021.)
Interview with the President
The Real Entertainment business will work to that we are planning for the fourth quarter, In the Entertainment Unit, BANDAI NAMCO axis strategy, we will aim to enhance our as well as the assumption that the spread of Entertainment Inc. will oversee the Digital presence in global markets. The IP Production build a strong foundation by collaborating with COVID-19 would continue around the world. Business, including network content, home Unit will consolidate the studio and produc- other Group businesses even more closely. Furthermore, in the Real Entertainment business, video games, etc., and BANDAI CO., LTD., tion functions and aim to step up the creation which is the most significantly affected by will oversee the Toys and Hobby business, such of a wide range of IP. The Amusement Unit Would you discuss the situation in the also having a positive knock-on effect on sales COVID-19, in the fourth quarter we will record as toys, plastic models, etc. These two companies will work to create a strong business foun- Visual and Music Production and IP of products, such as Gundam plastic models. an extraordinary loss of approximately ¥13.0 will work together to manage the overall Unit. dation for the next Mid-term Plan. Creation businesses? Moving forward, in addition to on-line billion for expenses associated with structural In the IP Production Unit, BANDAI Taguchi: The Visual and Music Production streaming and releases of visual products, we reforms. Specifically, this will include impair- NAMCO Arts Inc. will oversee the Visual Please discuss the director system business was also significantly affected by will continue to take steps to create buzz around ment losses on fixed assets in the facilities and Music Business, including visual and for BANDAI NAMCO Holdings Inc. the spread of COVID-19. Even in this setting, the world. These initiatives will include install- business around the world, as well as other music content, live entertainment, etc., and Taguchi: On April 1, Masaru Kawaguchi, we achieved a solid performance in sales of ing a life-size Freedom Gundam statue in losses. In addition to these accounting allow- SUNRISE INC. will oversee the Creation who is currently BANDAI NAMCO Holdings’ music CDs, but results were affected by such Shanghai, China; having Gundam serve as ances, we are also working to reduce fixed Business, such as animation production, etc. Executive Vice President and Director, will factors as the cancellation and delay of live ambassador of the Japan Pavilion at the Dubai expenses and increase operational efficiency. These two companies will work together to become the Company’s President and Rep- events and the postponement of launches of Expo; and participating in the production of In business operations, we are implementing manage the overall Unit. In the Amusement resentative Director. I will become Chairman visual products, which in turn delayed sales a live-action Gundam film. the principles of selection and concentration Unit, BANDAI NAMCO Amusement Inc. and Director, and from that position I will of packaged products. Currently, to respond Looking at products and services, a new for operations that leverage IP and the resources will manage the business. support Mr. Kawaguchi from an optimal to changes in the operating environment, we version of a popular arcade game, Mobile Suit of the Group’s businesses, such as Capsule Toy In addition, a director of BANDAI NAMCO overall perspective. Mr. Kawaguchi has a are working with new ways of interacting with Gundam: Senjo no Kizuna II, is currently in Stores and Torumo. By further enhancing unity Holdings Inc. will be responsible for and strong track record as a leader, including highly skilled at linking one successful ini- fans, such as streaming of live events with no development, and we are expanding the world- among the Group’s businesses, we will work supervise each Unit. This will reduce the the repeated achievement of record-high tiative to the next. Mr. Kawaguchi has a customers in attendance at the event venue. wide roll-out of Gundam plastic models, such to build a strong business foundation that can distance between management and business results as the leader of the Toys and Hobby cheerful personality and enjoys the confidence In the IP Creation business, as seen at the as in Asia and North America. All of our regions generate profits even in environments that execution and enable us to leverage the syn- Unit. In addition, he has a wide range of of those around him. I believe that he is an GUNDAM FACTORY YOKOHAMA, we will work together under the ALL BANDAI lack transparency. ergies from these combinations. experience, including Groupwide management excellent choice for the leader of the BANDAI took steps to create buzz about mainstay IP, NAMCO concept, and we will strive to max- experience as Executive Vice-President of NAMCO Group. such as the Gundam and Love Live! series. imize IP value by fostering close collaboration Please discuss the dividend forecast. What direction will the Group take BANDAI NAMCO Holdings and Director In addition, we produced a variety of new between visual products and other products Taguchi: Our basic policy for shareholder return under the new system? of BANDAI NAMCO Entertainment. More- visual products. and services. calls for both stable dividends over the long Taguchi: Under the new Unit system, we will over, Mr. Kawaguchi excels not only in The stay-at-home trend is advancing, and term and an enhanced emphasis on cost of strongly advance the IP axis strategy by step- delegating authority but also in drawing out looking at products related to Visual and Music What is the outlook for capital. Specifically, our basic policy is to ping up collaboration among our businesses the front-line capabilities of young employees, Production and IP Creation, there are an increas- full-year results? implement shareholder return with target of a and unifying the efforts in each region under encouraging them to work with a sense of ing number of customers who have reconsidered Taguchi: For the fiscal year, as of August 2020 total return ratio of 50% or more based on the ALL BANDAI NAMCO concept. responsibility as they tackle their jobs. In a product, or taken a look at it for the first time. our forecasts were for ¥650.0 billion in net stable dividend payments of 2% of DOE (div- In the Entertainment Unit, by leveraging this way, employees on the front lines can We will approach this as an opportunity and sales, ¥50.0 billion in operating profit, and idends on equity). In accordance with this basic a wide range of outlets for digital and physical work in a free and open-minded manner. continue working to create buzz and to provide ¥33.0 billion in profit attributable to owners policy, the dividend forecast for FY2021.3, products and dynamically rolling out the IP Among employees and organizations, he is high-quality products. of parent. In comparison, as of February 2021 on an annual per-share basis, is a base dividend we have increased our forecasts to ¥720.0 of ¥42 per share and a performance-based The Group is advancing a variety of billion in net sales, ¥72.0 billion in operating dividend of ¥40 per share, for a total of ¥82 BANDAI NAMCO Group Organization Chart Gundam projects around the world. profit, and ¥36.0 billion in profit attributable per share. We have already paid an interim Taguchi: For Gundam, the Group is working to owners of parent. dividend of ¥21 per share, and accordingly Current April 2021~ together across the value chain, from IP cre- The revision of the full-year forecasts was the year-end dividend forecast is ¥61 per share. Toys and Hobby Unit Entertainment Unit ation to the roll-out of products and services. based on our results in the first nine months, The opening of the Moving Gundam Statue the current trends in each business, and the The Unit system will be changed. Core Company: BANDAI CO., LTD.
our strategy for the next Mid-term Plan, which Core Company: BANDAI NAMCO Entertainment Inc. will start from FY2023.3, and for bolstering IP Production Unit our foundation. Accordingly, we decided to Real Entertainment Unit
2 BANDAI NAMCO NEWS March 2021 3 (Information in this section is as of the end of February 2021.)
Interview with the President
The leaders of the BANDAI NAMCO Group New Presidents and Message from Masaru Kawaguchi, who is scheduled to become the President and Representative will work together to achieve further growth Representative Directors Director of BANDAI NAMCO Holdings Inc.
and to guide the Group into a new era. Taking office on April 1, 2021 (planned) In April 2021, BANDAI NAMCO Holdings Inc. will commence full-scale preparations for In addition, plans call for Toshio Shimada to into a new era. As a result of the advancement BANDAI NAMCO Entertainment Inc. the next Mid-term Plan. As the new president, my mission will be to advance collaboration become a new outside director following the of personnel exchanges at the level of repre- and combinations among our businesses so that the BANDAI NAMCO Group can achieve Ordinary General Meeting of Shareholders. Mr. sentative directors and directors, extending sustained growth. Shimada has worked in such positions as the across business lines, I expect to see further With a spirit of independence, the businesses in the BANDAI NAMCO Group have drawn president and representative director of CAC activation of combinations and collaborative on each company’s distinctive characteristics to develop distinctive management skills. How- Holdings Corporation. He has experience as a activities in the future. Naoki Katashima ever, our operating environment is changing rapidly. Moving forward, our principal strategy corporate leader, and is also well-versed in IT. Representative will entail advancing the ALL BANDAI NAMCO concept while maintaining respect for the Accordingly, we felt that Mr. Shimada would Do you have a message Senior Managing individual characteristics of each company. By combining the Group’s wide-ranging business be able to provide appropriate advice, etc., as for stakeholders? Director fields and the extensive know-how of our diverse employees, we will expand opportunities the Group strongly advances digitalization. Taguchi: Even during the next Mid-term Plan, for the Group. Going forward, the BANDAI NAMCO Group will aim to further strengthen there will be no change to the Group’s strategy BANDAI CO., LTD. collaboration between management and business execution and to encourage people on the There will also be changes in the of leveraging the IP axis strategy to expand front lines to take action with an even greater degree of independence. representative directors of the our business in global markets. Nonetheless, business companies. with the operating environment undergoing Taguchi: In the Entertainment Unit, BANDAI significant change, we have to compete in new NAMCO Entertainment Inc. will transition to ways rather than simply extend previous ways Directors at Major Companies in the BANDAI NAMCO Group (as of April 1, 2021) a system of two representative directors. Yasuo of doing things. Under the new system, we Kazuhiro Takenaka Miyakawa, who will continue as president and will aim for sustained growth and formulate a President and BANDAI NAMCO Holdings Inc. BANDAI NAMCO Entertainment Inc. BANDAI NAMCO Arts Inc. Representative representative director, and Naoki Katashima, strategy of leveraging new ways for BANDAI Chairman and Director Mitsuaki Taguchi * President and Representa- President and Representa- Director Yasuo Miyakawa Satoshi Kono * who will become representative senior managing NAMCO to compete in a new era. tive Director tive Director President and Representa- Masaru Kawaguchi * Representative Senior Man- director. Mr. Katashima will leverage abundant In the midst of the COVID-19 crisis, I believe tive Director Naoki Katashima * Director Hideyuki Kurita BANDAI SPIRITS CO., LTD. aging Director experience in global business and take steps that entertainment that enriches people’s lives Director Shuji Ohtsu Director Yuuka Sakurai to advance business expansion on a global is increasingly important. We will continue to Managing Director Koji Fujiwara Director Yuji Asako Director Kenji Hamada basis, such as strengthening IP originating maintain a sense of pride and responsibility Director Toru Konno Director (Part-time) Yasuo Miyakawa Director Kimikazu Ueyama overseas. By transitioning to a system of two for our mission of providing “Dreams, Fun Director Masahiro Shimizu representative directors, BANDAI NAMCO and Inspiration” through the Group’s products Director (Part-time) Makoto Asanuma Director (Part-time) Takaaki Suzuki Director (Part-time) Daisuke Uchiyama Entertainment Inc. will implement more-rapid and services. On that basis, we will strive to Director (Part-time) Hitoshi Hagiwara Director (Part-time) Makoto Asanuma Nao Udagawa Director (Part-time) Masaru Kawaguchi decision-making and implementation in an forge connections with fans in global markets President and Director (Part-time) Kazumi Kawashiro Representative SUNRISE INC. industry marked by rapid changes in the oper- and contribute to the creation of a world that Director (Outside) Yuzuru Matsuda BANDAI CO., LTD. Director President and Representa- ating environment. is full of smiles and happiness. Makoto Asanuma Director (Outside) Satoko Kuwabara Chairman and Director Masaru Kawaguchi * tive Director Kazuhiro Takenaka, who has a wide range President and Representa- Director (Outside) Mikiharu Noma Kazuhiro Takenaka Managing Director Shin Sasaki of experience, including in the departments BANDAI NAMCO Arts Inc. tive Director handling products for the mature fan base and Director (Outside) Koichi Kawana Director Naoya Masaki Managing Director Nobuhiko Momoi * collaboration initiatives with IP rights holders, Director (Part-time) Masayuki Ozaki Director Shinjiro Kaji will become president and representative Director (Part-time) Daiki Miyatani Director Akira Togashi director of BANDAI CO., LTD. Nao Udagawa, Following the General Meeting of Director (Part-time) Hirofumi Inagaki who has contributed to the growth of BANDAI Shareholders scheduled for June 2021 Director (Part-time) Taro Tsuji BANDAI NAMCO Holdings Inc. Satoshi Kono Director (Part-time) Yoshiyasu Horiuchi NAMCO Entertainment Inc. as a managing Chairman and Director Mitsuaki Taguchi Director (Part-time) Yasuo Miyakawa New Outside Director Candidate President and Director (Part-time) Satoshi Kono director, will become president and represen- Representative President and Representa- tative director of BANDAI SPIRITS CO., LTD. Masaru Kawaguchi BANDAI SPIRITS CO., LTD. Scheduled to take office after approval at the Director tive Director BANDAI NAMCO Amusement Inc. President and Representa- In the IP Production Unit, Satoshi Kono, Ordinary General Meeting of Shareholders Nao Udagawa Director Shuji Ohtsu tive Director Chairman and Director Hitoshi Hagiwara * who has abundant experience in visual and planned for June 2021 BANDAI NAMCO Amusement Inc. Director Yuji Asako President and Representa- Director Hiroshi Sakakibara Hiroshi Kawasaki music operations, will become president and tive Director Director (Part-time) Yasuo Miyakawa representative director of BANDAI NAMCO Director Takahiro Mizuno Managing Director Seiji Kagawa Arts Inc. In the Amusement Unit, Hiroshi Director (Part-time) Satoshi Kono Director Daiki Miyatani Director Haruo Iwayaguchi Kawasaki, who has a wide range of experience Director (Part-time) Makoto Asanuma Director Akira Togash in such areas as toys and facilities, will Director Yoshiyasu Horiuchi Director (Part-time) Hiroshi Kawasaki Director (Part-time) Kazuhiro Takenaka * become president and representative director Hiroshi Kawasaki Director (Part-time) Takahiro Mizuno Director (Outside) Koichi Kawana Director (Part-time) Shin Sasaki of BANDAI NAMCO Amusement Inc. President and Director (Part-time) Yuji Asako Director (Outside) Satoko Kuwabara These new representative directors are all Toshio Shimada Representative Director (Outside) Director Director (Outside) Mikiharu Noma excellent choices to lead BANDAI NAMCO Newly appointed * Change in position Director (Outside) Toshio Shimada
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