NEWSLETTER

June 2019
BANDAI NAMCO Holdings Inc.

BANDAI NAMCO Mirai-Kenkyusho
5-37-8 Shiba, Minato-ku, Tokyo 108-0014

Interview with the President

In FY2019.3, we achieved record-high results.
Rather than simply aiming to extend ourprevious approaches, we always strive towork from the customer’s viewpoint.
In FY2019.3, the BANDAI NAMCO Group’s results reached a record-high. In thisissue of the newsletter, BANDAI NAMCO Holdings’ President Mitsuaki ­Taguchi
discusses the Group’s results, the progress with the Mid-term Plan, and thetrends in each business.
The results for FY2019.3 have beenannounced.
Taguchi: We were able to set new records for

What are your thoughts about thefirst year of the Mid-term Plan?
Taguchi: Under the Mid-term Plan, which started

sales and profits, with net sales of ¥732.3
billion and operating profit of ¥84.0 billion.
We are facing a wave of major changes on a
global scale, but nonetheless the core IP*
products and services in each business recorded
favorable results throughout the year. Looking
at our dividends for FY2019.3, we have given
consideration to our basic policy of providing
a return to shareholders that targets a total
return ratio of 50% or more based on stabledividend payments of 2% of DOE (dividends
on equity), as well as to our results in
FY2019.3. As a result, our annual per-share
dividend will be ¥145 per share (total payout
ratio of 50.3%), including a base dividend of¥36 per share and a performance-based dividend of ¥109 per share.

from April 2018, we are aiming to roll out global
business initiatives to further strengthen the IP
axis strategy, which is our greatest strength. At
the same time, we are advancing business operations in a wide range of areas under the ALL
BANDAI NAMCO concept, where Group
companies work together in all areas.
IP creation is the core of the IP axis strategy.
We are advancing IP creation in a range offorms, including not only the establishedmethods of creating IP from products andservices but also Groupwide projects, collaboration with outside partners, and otherinitiatives. In FY2019.3, we invested ¥6.0
billion in the IP axis strategy, centered on thecreation of original IP and on IP marketing.
Over the three years of the plan, we intend
to invest a total of ¥25.0 billion in this area.
In addition, we were able to implement initiatives that added new points of contact withcustomers, including the expansion of targeted
age groups, such as the mature fan base, andthe achievement of significant growth in thelive event business. From FY2020.3, we will
start operation of the BANDAI NAMCO
Content Fund. This fund was established withthe objective of facilitating rapid investment
in IP creation from the perspective of overall
Group optimization. Going forward, we willcontinue to collaborate in an open mannerwith a wide range of partners in Japan andoverseas as we work to create and nurtureappealing IP.

The composition of the board of
directors will be changed.
Taguchi: A new director system will be pro-

posed at the Ordinary General Meeting of
Shareholders scheduled for June 24. Koichi
Kawana, who has abundant experience as a
global corporate leader, will be a new candidatefor outside director. If all candidates are elected
at the shareholders’ meeting, then outside
directors will be one-third of our total of 12
directors. Moving forward, we will work tofurther enhance the management supervisionfunction and to increase transparency whileadvancing speedy management.

1

Mitsuaki Taguchi
President & Representative Director,
BANDAI NAMCO Holdings Inc.
One example of an ALL BANDAI NAMCO
initiative was the seven-city tour of North
America that was held in conjunction with therelease of the DRAGON BALL film in FY2019.3.
Participation in the tour extended across geographical and business lines, and we were able
to directly experience the enthusiasm of fans.
In FY2020.3, we will also participate in
DRAGON BALL WORLD ADVENTURE, which
will be held in eight cities around the world.
In this way, working together with our partners,
we will strive to make DRAGON BALL a topic
of conversation among fans around the world.
In addition, we have taken important steps
forward in China, which has high growth potential and which we have positioned as an important
geographical region for the Group. Under ourholding company in Shanghai, we establishedfour business companies for the Toys and Hobby,
Network Entertainment, Real Entertainment,
and IP Creation businesses. In this way, we
have prepared for full-scale operations in thismarket. Moving forward, these businesses will
collaborate each other and cooperate with local
partners as they work to provide products andservices that earn the support of local fans.
Under the Mid-term Vision — “CHANGE for
the NEXT: Empower, Gain Momentum, and
Accelerate Evolution” — we will not simply
extend our previous business practices into the
future. Rather, we will strive to provide entirely
new value to customers by rapidly responding
to changes in the times and continuing to fosterchange in all areas. In the second year of theplan and thereafter, the BANDAI NAMCO
Group will continue to change.

*IP: Characters and other intellectual property

BANDAI NAMCO NEWS

June 20191

Interview with the President

We will also invest in IP creation, establish a platform for global business expansion, and conduct
technical research for the next generation.
What is the Group’s view of theWould you discuss the trends in eachmarket environment?

business?
Taguchi: In the Toys and Hobby business, new

Taguchi: Our environment is undergoing dra-

matic evolution, and in this high-speed setting
the situation changes rapidly from day to day.
In this environment, we need to build a robust,strong platform for the stable generation of
earnings, and we must continually work froma customer-centric viewpoint. Furthermore,in the digital field, such as network content
and home video games, it is especially difficult
to formulate optimistic plans based simply
on the extension of past business practices.
We will also need to work aggressively toinvest in IP creation, establish a platform for
global business expansion, and conduct technical research for the next generation. We will
focus not only on the achievement of earnings
in a single fiscal year but also on the realizationof sustained growth over the medium to longterm, and to that end we will implement investment and plant seeds for the future.
Would you discuss the plan for
FY2020.3?
Taguchi: Our plan for FY2020.3 calls for net

initiatives will include the release this summerof ZENONZARD, a digital card game thatleverages AI. In this way, we plan to open up
new forms of card game entertainment andto establish new IP.
For the mature fan base, for the Gundam
40th Anniversary, we will implement collaborative initiatives with Gundam plastic models,
which have surpassed 500 million units incumulative total sales. We will strive to create
buzz surrounding Gundam with collaborative
products offered in cooperation with a varietyof companies, and we will launch Gundam
plastic models in coordination with a new
animation product. SD Gundam World Sangoku
Soketsuden, a new animation, was made withstrong focus on overseas markets. In Asia,
initiatives in the comics field have alreadybeen launched, and we plan to commence thevideo roll out from the summer. Prior to thelaunch, we are conducting advance sales of
Gundam plastic models in Japan and other
Asian markets, and these efforts are earninga solid response.
Looking at figures, which are another pillarof our products for the mature fan base, wehave a lineup that includes not only higher
priced items but also products in a wide rangeof other price ranges and specifications, suchas prizes for amusement facilities, character-based lottery-related products, and capsuletoys. We also offer a diverse IP lineup. We will
work to aggressively expand the sales of theseproducts in line with the special characteristics

sales of ¥720.0 billion and operating profit of¥70.0 billion. In the Toys and Hobby, RealEntertainment, Visual and Music Production,and IP Creation businesses, which recorded
favorable results in the previous fiscal year, we
are aiming for earnings at about the same levelyear on year. Looking at Network Entertainment,in network content we will not aim for an extension of the favorable results that were achieved
in FY2019.3. Rather, we will take further steps
to address customer needs for new value. In
home video games, due in part to the revisionof the development schedule with afocus on quality, this will be a period
before the worldwide launch of major
titles, and the plan incorporates differences in the title lineup.
In FY2020.3, we will work toachieve our plans and, with a focus
on the future, implement the necessary
initiatives from a medium to longterm viewpoint.
THE GUNDAM BASE SHANGHAI is currently inoperation in China

2

BANDAI NAMCO NEWS©創通・サンライズ

of each region, including overseas markets. In
North America, we established a company forthe sales and marketing of products for themature fan base, and we will aggressively
leverage this network as we move forward.
What is the situation in the Network
Entertainment business?
Taguchi: In network content, we will analyze
customer data and continually implement mea-sures to encourage customers to enjoy core
titles for long periods of time. We will also
launch new titles with a focus on quality. In
addition, to extend points of customer contact
beyond apps, we are actively working to create
new services that utilize networks, such as“enza” and on-line distribution of videos. In
home video games, the trend toward longer
product lives continues. To encourage theenjoyment of a title for a long period of time,
it is essential that the title itself is highly evaluated. Accordingly, in the same way as with
network content, we are conducting developmentwith a dedication to quality. FY2020.3 will bea period before the launch of major titles, but
we will roll out a diverse lineup, including a
new DRAGON BALL product, titles originating
overseas, and new IP titles for children.
The pace of change in network entertainment
industry is fast, even compared with the Group’s
other businesses, and the business model itself
has started to undergo significant change. To
adapt to this change, we will need to think froma customer-centric perspective. Currently,
launches of a number of new platforms havebeen announced, and in certain areas we havealready started to advance specific research
initiatives. In all areas, we will strive to thinkfrom a customer-centric perspective and to
focus our efforts on determining how we canentertain customers and how we can maximize
the appeal of IP.

DRAGONBALL Game Project Z (provisional name), a newhome video game
©バードスタジオ／集英社・フジテレビ・東映アニメーション©BANDAI NAMCO Entertainment Inc.

What is the situation in the RealEntertainment Unit?
Taguchi: In amusement machines, which had

favorable results in FY2019.3, we will work
to leverage our direct contact with customers
in our own facilities, which is a key strength,
as well as our technical capabilities. In
FY2020.3, we will continue to launch multiple
new products, such as JoJo’s Bizarre Adventure:
Last Survivor. At the same time, we will work
to boost our competitiveness by increasing

development speed and reducing development
costs. In amusement facilities, we will strive
to differentiate our operations through suchmeans as exclusive prizes and campaigns. In
addition, we are working to move forward withpopular new formats, such as TONDEMI, asports and athletic facility that leverages
BANDAI NAMCO’s distinctive technologies
and know-how. We are also moving forwardwith plans for a large-scale facility based ona new concept.

Through the Group’s products and services, wewant to build a world that fosters communicationtranscending national borders and languages.
What is the situation in the Visual andMusic Production business?
Taguchi: In this business, we are advancing

multiple plans to create IP through the integration of the three elements of visual, music,
and live. Looking at core IP, we are planning
the theatrical release of the second stage of
GIRLS und PANZER: The Final Chapter. In
addition, we have decided to go ahead withproduction of the second phase of the IDOLiSH7 TV animation. Recent initiatives include
a Groupwide project in which the Network
Entertainment Unit distributes an app, startingfrom an animation—The Magnificent Kotobuki.
Moreover, we are also currently working on
a new IP roll-out model under which the on-line
distribution of new Magnificent Kotobuki
animations will be handled through an app.
We also have products that are drawing
attention, such as packaged products for Mobile
Suit Gundam Narrative and the theatrical version
of Love Live! Sunshine!!, both of which opened
in FY2019.3. Highly anticipated live events
include the Lantis Festival, which is planned
to celebrate the 20th anniversary of the label.
We would like to make this an event that inspires
fans around the world through animation songs.
We have established a strong market presencein the live event business where our annual
sales have surpassed ¥10.0 billion. Moving
forward, the Visual and Music Production
business will continue to aggressively roll out
initiatives in Japan and overseas.
What is the situation in IP Creation?
Taguchi: Creating IP is the mission of the IP

Creation business, which is taking steps tostrengthen its systems. These include acquiring
the production function from external animation
studios, making equity investments in CG
animation studios, and enhancing the work
environment in order to secure outstanding
employees. We are also advancing multiple
new IP creation projects that leverage collaborative initiatives combining products andservices from across the Group’s businesses.
Next, this year we will celebrate the 40th
anniversary of Mobile Suit Gundam. Rather
than simply working to create buzz for a single
year, we will look ahead to the 50th and 60th
anniversaries and strive to communicate theappeal of Gundam to new groups of customers
and new geographical regions. We are producing
high-quality new videos for each generation,
and we will also roll out initiatives for overseas
markets. We are actively participating in largescale animation events in overseas markets.
At the same time, we are rolling out animations
that reflect a strong overseas focus, and weare creating theatrical versions through joint

initiatives with Hollywood companies. Moreover, in 2020, when Japan will be the subjectof attention from around the world, we will
set up a life-sized moving Gundam in Yokohama
as a new innovation. Moving forward, we will
implement strategic Gundam initiatives on aGroupwide basis.
Finally, do you have a message
for readers?
Taguchi: In FY2020.3, we will continue toadvance the main strategies in the Mid-term
Plan, and will work to build a strong foundation
for sustained growth in the future. Throughthe steady accumulation of results from thesetypes of initiatives, we will start to realize oneof our major dreams—“To provide Dreams,
Fun and Inspiration to fans around the world
through our products and services in order tohelp build a world that facilitates communication transcending national borders andlanguages.” Entertainment is indispensable
for bringing people together and helping themto enjoy energetic lifestyles. We will continue
to approach our work with a sense of pride
and responsibility about contributing to thefield of entertainment.

New outside director candidate: Koichi Kawana<Background>
April 1982 Joined JGC CORPORATION
July 1997	General Manager, Abu Dhabi Office andGeneral Manager, Kuwait Office of		
JGC CORPORATION
July 2001	General Manager, London Office and
JGC UK Managing Director of
JGC CORPORATION
July 2009	Managing Director, Senior General		Manager, Global ­Marketing Division of		
JGC CORPORATION

July 2011	Representative Director &President of JGC
		 CORPORATION
June 2017 Director, Vice Chairman of		
JGC CORPORATION
June 2018	Vice Chairman of
JGC CORPORATION(current position)

 omposition of the Board of Directors after the close of the Ordinary General Meeting ofCShareholders to be held on June 24, 2019
President and Representative Director
Director				
Director (Part-time)		
				

Mitsuaki Taguchi
Shuji Ohtsu
Yuji Asako
Masaru Kawaguchi
Yasuo Miyakawa
Hitoshi Hagiwara

Director (Part-time)
Director (Outside)

Kazumi Kawashiro
Makoto Asanuma
Yuzuru Matsuda
Satoko Kuwabara
Mikiharu Noma
Koichi Kawana

June 20193

Closeup

Guided by its vision of being “The Global
Leader in Hobby Entertainment”
BANDAI SPIRITS CO., LTD. will strive to achieve
further growth.
BANDAI SPIRITS handles the Toys and Hobby business for the mature fan base.
In April 2019, the company merged with BANPRESTO CO., LTD. with the objective of enhancing market initiatives and accelerating overseas business operations. On this basis, BANDAI SPIRITS is aiming to further expand its business. In
this section, BANDAI SPIRITS President Yusuke Fukuda discusses management
policies, focus products, and other issues.
Would you describe the major busi-

What are the strengths of BANDAI

ness activities of BANDAI SPIRITS?
Fukuda: The vision of BANDAI SPIRITS is to

SPIRITS?
Fukuda: First, we can roll out new products,

be “The Global Leader in Hobby Entertainment.”
On that basis, we focus on products for themature fan base, and we are active in a wide
range of areas in the entertainment industry.
Previously, our business activities were centeredon the hobby business, where we rolled out
Gundam and other plastic models, as well as
the collectible items business, such as figuresand robots, and the lottery-related products
business, which handles Ichiban Kuji and otherproducts. However, through the recent merger
with BANPRESTO, we have now added thecrane game machine prize business. Moving
forward, in each of our businesses, we will
aim to maintain and increase a No. 1 positionin Japan, while taking steps to bolster ourbusiness activities in overseas markets. For
example, the overseas action figures market
is more than 10 times the size of the Japanesemarket, and the rate of growth is high. Accordingly, we can look forward to substantial growth
opportunities. Moving forward, we will aggressively take on challenges in overseas markets.
In particular, we have positioned China andNorth America as markets where we will target
significant growth.

centered on IP, for a wide range of customer
groups. BANDAI SPIRITS previously specialized in IP products for male fans, such as
the Mobile Suit Gundam series, DRAGONBALL series, and ONE PIECE. On the other
hand, the former BANPRESTO rolled out IP
products that were also highly popular withfemale fans, such as Disney and Pokemon
products. In addition, the lower-priced products
handled by the former BANPRESTO werealso added to our lineup. We have expanded
our lineup to cover a broader range of prices,
and as a result we are now able to develop
products for all target customer groups, including a wide range of prices.
Our second strength is the ability to maximize our businesses by providing an integrated
range of products and services, in Japan andaround the world. For example, in the prizebusiness, we are implementing overseas salesof crane game machine prizes originally developed for the Japanese market. In addition, inthe collectible items business, our developmentof figure products reflects consideration for
global markets from the planning stage. We
are working to accelerate business growth by

Plastic models for SD Gundam World Sangoku Soketsuden©創通・サンライズ TAMASHII NATIONS TOKYO4

BANDAI NAMCO NEWSfostering a strong awareness on the front linesof business development with a worldwide
viewpoint.
Our third strength is the speed with which
we move through the cycle of product development, production, marketing, and sales. By
increasing the speed of the so-called value chain
cycle, we will not only be able to respond rapidly
to changes in the times or in customers, butalso be the first to notice issues with processes
and to quickly implement strategic changes.
In addition, we are working to bolster our
technical capabilities, our ability to deliver
quality, and the brand strength of each of our
products, and I believe that these initiatives
are one of the major reasons why we are earning
the support of the markets.
What specific approaches will betaken for Japanese and overseas
markets?

in Shanghai we launched ULTRA HEROESTAMASHII, an Ultraman event for the mature
fan base, in March 2019, and this event has beenhighly regarded. In addition, BANDAI NAMCO
Toys & Hobby (SHANGHAI) CO., LTD., wasestablished to strengthen the Toys and Hobby
business, and moving forward we plan to startfull-scale operations. We will aim to expand thisbusiness as we work to bolster our own capabilities and to establish partnerships with major
media companies, such as e-commerce sites andvideo sharing sites that have substantial influencein local markets.
In Europe and the Americas, from summer
to fall 2018 we worked together with rights
holders to offer the DRAGON BALL North
America Tour, which was held in seven sites
in North America. This tour was a major success. This year, we will expand the tour toeight cities and will strive to communicate

the appeal of DRAGON BALL worldwide.
Moreover, in October 2018, together witha local partner, we established BANDAI
NAMCO Collectibles LLC (known as
BLUEfin), in North America. This newcompany handles sales and marketingof products for the mature fan base.
Through BLUEfin, which has solid distribution capabilities and special strengths
in the sales of goods at events, we will
expand product roll-outs, implement
promotional measures through event
participation, etc.
In addition, PREMIUM BANDAI, theofficial on-line shop operated by the company, reached its 10th anniversary thisyear. We will leverage this opportunity
by accelerating measures to build an
e-commerce business overseas.

Yusuke Fukuda
President and Representative Director,
BANDAI SPIRITS CO., LTD.

Fukuda: The Japanese market has a high levelof needs not only for tangible products but also
for experiences. Accordingly, in the lottery-related products business, we are working to open
up new business areas that combine products
and experiences. To that end, for example, wehave launched Mellowtrill Nail character nailseals, which enable customers to order productswith a design that they like and a size thatmatches their own nails. In these ways, we areworking to create a market for mature womenfans, based on the experience-style business.
Overseas, we opened THE GUNDAM BASE
SHANGHAI, a comprehensive facility centeredon Gundam plastic models, in August 2018, andthis facility has been successful. In China, weare rolling out Gundam plastic models connectedwith SD Gundam World Sangoku Soketsuden,an original IP that was developed with consideration for China and other Asian markets, basedon comics and on-line distribution. In addition,

We are launching multiple new Gundam
plastic models to create a buzz around Gundam,
which will celebrate its 40th anniversary.
What products and services can welook forward to this year?
Fukuda: First, this year will be the 40th anniversary of the broadcast of the Mobile Suit
Gundam TV series. In response, we havecommenced a variety of commemoration plansthat draw on Gundam plastic models. Specifically, in April, in collaboration with 12
professional baseball teams in Japan, we began
to launch 12 Baseball Team Coloring Gundam
Plastic Models (total of 12 types). In addition,in 2019 we plan to produce a special movie
in which a Gundam appears. The Gundam in
the movie will be designed by KEN OKUYAMADESIGN, a company that is led by Ken
Okuyama, an industrial designer who is known
around the world. We will also launch a plastic
model of the Gundam that appears in the movie.
In April 2019, Gundam plastic models surpassed
500 million units in cumulative total sales,
and in 2020, we will reach the 40th year since
the start of sales of these products. Moving
forward, we will strive to further invigorate
the market. In the collectible items business,in which we have the No. 1 share in the ­Japanesemarket, we opened TAMASHII NATIONSTOKYO, a directly operated flagship store, in
Akihabara, Japan in April. Through this store,
we will communicate to the world the appealof our collectible items for the mature fan base.
In addition, in the prize business, we will
step up the development of products for the
crane game market in Asia, centered on mainland China and Taiwan.
What is your policy regarding work?
Fukuda: To accelerate the various cycles in thevalue chain, I would like to indicate the company’s
overall direction while entrusting the employeeswith individual work responsibilities.

and competitiveness.
My motto is that “steady, daily efforts areimportant.” Formulas and ideas for successare not found in some special location. Rather,
they are found in our ordinary, daily lives. If
we can keep that in mind, work with enthusiasm, and give concrete shape those formulas
and ideas, we will hold the key to success. We
will strive to do our utmost as we always remain
attuned to a wide range of environments andrespond to a variety of encouragements.

Moreover, as one part of activities toenhance communication with employees,
when a new product is launched, I receive a
presentation from the person in charge ofplanning/­development. The purpose of thesebriefings is not for me to offer my commentson specific planning details. Rather, I want
to sense the enthusiasm of the person in charge.
I believe that the enthusiasm of each employee
is the source of a company’s growth potential

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