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 theIP 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

Would you provide an overview of
the results for the first nine months of
FY2021.3?
Taguchi: For the nine-month period, we achieved
net sales of ¥543.4 billion and operating profitof ¥72.9 billion. This marks the achievementof record high sales and profits for the first ninemonths of a fiscal year.
The Group has businesses that have beensignificantly affected by the spread of COVID19, as seen with the closure of amusement
facilities and the cancellation of live events.
On the other hand, we also have businesses thathave benefited from demand associated withpeople staying at home, such as products forthe mature fan base in the Toys and Hobby
business and home video games in the Network
Entertainment business. In difficult circumstances, all of our employees have worked hard
to confront the unprecedented COVID-19 situation, to implement countermeasures on thefront lines to help prevent the spread of theinfection, and to aggressively address the trend
toward digitalization.
Please discuss the situation in eachbusiness. First, what are thecircumstances in the
Toys and Hobby business?
Taguchi: In the Toys and Hobby business, products for the mature fan base, such as Gundam
plastic models and collectible figures, were
popular around the world. We responded rapidly
to digitalization, and as a result we captured
demand from existing users, as well as fromprevious users and new customers. Moreover,in Japan, in addition to established IP, contributions to results were also made by the rapid
commercialization of new IP*, such as Demon
Slayer: Kimetsu no Yaiba and Disney: Twisted-Wonderland. Favorable results were also
recorded in toy-related items, such as in theconfectionery category, where the Charapaki
series became a hit. Products sold at amusement
facilities were affected by the closure of facilities,
especially in the first quarter, but nonethelessthe Toys and Hobby business overall achieved
record-high results.
In the fourth quarter, we will launch newseries for established IP, such as Super Sentai
and PRETTY CURE!, and will continue to address
the mature fan base, where we have secured
demand associated with the trend toward people
staying at home. In addition, we will strengthen
measures to address digitalization in each region
and category. In these ways, we will work to
implement initiatives that will foster growth in
FY2022.3 and thereafter.
What is the situation in the
Network Entertainment business?
Taguchi: As a result of continued measures toaddress demand from customers around theworld, the Network Entertainment Businessregistered favorable results with mainstay
network content titles, including titles in the
DRAGON BALL series and THE IDOLM@
STER series, and network content sales increased
year on year. In home video games, there were
only a few new title launches, but nonetheless

Mitsuaki Taguchi
President & Representative Director,
BANDAI NAMCO Holdings Inc.

unit sales of repeat titles for the nine-month
period reached 20.69 million units, comparedwith 11.25 million units in the same period of
the previous fiscal year. We were able to effectively meet demand associated with the trend
toward people staying at home.
Moving forward, in both network content
and home video games, we will continue tofocus on the high-quality titles that are supported
by customers and to maintain communications
with customers through events and updates.
We will also advance the development of major
home video game titles, such as SCARLET
NEXUS and Elden Ring, which we are planningto launch in the future. In addition, we will
advance marketing measures and implement
future-focused investment, such as research
into new technologies.
What is the situation in theReal Entertainment business?
Taguchi: In the Real Entertainment business,amusement facilities around the world wereclosed or had shortened operating hours due tothe spread of COVID-19, and this affected theamusement facility business as well as sales ofamusement machines.
Looking at game centers in Japan, the various measures implemented from the first halfof the fiscal year are showing results. Goingforward, the COVID-19 environment is
expected to remain challenging, and accordingly we will implement structural reforms
in the Real Entertainment business.

* IP: Characters and other intellectual property

March 2021

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(Information in this section is as of the end of February 2021.)

Interview with the President

The Real Entertainment business will work tobuild a strong foundation by collaborating withother Group businesses even more closely.
Would you discuss the situation in the
Visual and Music Production and IP
Creation businesses?
Taguchi: The Visual and Music Production
business was also significantly affected by
the spread of COVID-19. Even in this setting,
we achieved a solid performance in sales ofmusic CDs, but results were affected by suchfactors as the cancellation and delay of live
events and the postponement of launches ofvisual products, which in turn delayed salesof packaged products. Currently, to respondto changes in the operating environment, we
are working with new ways of interacting withfans, such as streaming of live events with nocustomers in attendance at the event venue.
In the IP Creation business, as seen at the
GUNDAM FACTORY YOKOHAMA, wetook steps to create buzz about mainstay IP,
such as the Gundam and Love Live! series.
In addition, we produced a variety of new
visual products.
The stay-at-home trend is advancing, andlooking at products related to Visual and Music
Production and IP Creation, there are an increasing number of customers who have reconsidered
a product, or taken a look at it for the first time.
We will approach this as an opportunity andcontinue working to create buzz and to provide
high-quality products.
The Group is advancing a variety of
Gundam projects around the world.
Taguchi: For Gundam, the Group is working
together across the value chain, from IP creation to the roll-out of products and services.
The opening of the Moving Gundam Statue
at GUNDAM FACTORY YOKOHAMA is

also having a positive knock-on effect on salesof products, such as Gundam plastic models.
Moving forward, in addition to on-line
streaming and releases of visual products, wewill continue to take steps to create buzz aroundthe world. These initiatives will include installing a life-size Freedom Gundam statue inShanghai, China; having Gundam serve asambassador of the Japan Pavilion at the Dubai
Expo; and participating in the production ofa live-action Gundam film.
Looking at products and services, a newversion of a popular arcade game, Mobile Suit
Gundam: Senjo no Kizuna II, is currently indevelopment, and we are expanding the worldwide roll-out of Gundam plastic models, suchas in Asia and North America. All of our regions
will work together under the ALL BANDAI
NAMCO concept, and we will strive to maximize IP value by fostering close collaboration
between visual products and other products
and services.
What is the outlook forfull-year results?
Taguchi: For the fiscal year, as of August 2020
our forecasts were for ¥650.0 billion in net
sales, ¥50.0 billion in operating profit, and¥33.0 billion in profit attributable to ownersof parent. In comparison, as of February 2021
we have increased our forecasts to ¥720.0
billion in net sales, ¥72.0 billion in operating
profit, and ¥36.0 billion in profit attributableto owners of parent.
The revision of the full-year forecasts was
based on our results in the first nine months,
the current trends in each business, and themarketing plans for the products and services▲We are planning to install the life-size Freedom Gundam Statue in front of
the LaLaport Shanghai Jinqiao in Shanghai, China.

©創通・サンライズ

2

BANDAI NAMCO NEWS

that we are planning for the fourth quarter,
as well as the assumption that the spread of
COVID-19 would continue around the world.
Furthermore, in the Real Entertainment business,
which is the most significantly affected by
COVID-19, in the fourth quarter we will record
an extraordinary loss of approximately ¥13.0
billion for expenses associated with structuralreforms. Specifically, this will include impairment losses on fixed assets in the facilities
business around the world, as well as otherlosses. In addition to these accounting allowances, we are also working to reduce fixed
expenses and increase operational efficiency.
In business operations, we are implementing
the principles of selection and concentrationfor operations that leverage IP and the resourcesof the Group’s businesses, such as Capsule Toy
Stores and Torumo. By further enhancing unity
among the Group’s businesses, we will work
to build a strong business foundation that cangenerate profits even in environments thatlack transparency.

In the Entertainment Unit, BANDAI NAMCOEntertainment Inc. will oversee the Digital
Business, including network content, home
video games, etc., and BANDAI CO., LTD.,
will oversee the Toys and Hobby business, suchas toys, plastic models, etc. These two companies
will work together to manage the overall Unit.
In the IP Production Unit, BANDAI
NAMCO Arts Inc. will oversee the Visualand Music Business, including visual andmusic content, live entertainment, etc., and
SUNRISE INC. will oversee the Creation
Business, such as animation production, etc.
These two companies will work together tomanage the overall Unit. In the Amusement
Unit, BANDAI NAMCO Amusement Inc.
will manage the business.
In addition, a director of BANDAI NAMCO
Holdings Inc. will be responsible for andsupervise each Unit. This will reduce thedistance between management and businessexecution and enable us to leverage the synergies from these combinations.

Please discuss the dividend forecast.
Taguchi: Our basic policy for shareholder returncalls for both stable dividends over the longterm and an enhanced emphasis on cost ofcapital. Specifically, ‍our basic policy is toimplement shareholder return with target of a
total return ratio of 50% or more based onstable dividend payments of 2% of DOE (dividends on equity). In accordance with this basic
policy, the dividend forecast for FY2021.3,
on an annual per-share basis, is a base dividendof ¥42 per share and a performance-based
dividend of ¥40 per share, for a total of ¥82
per share. We have already paid an interim
dividend of ¥21 per share, and accordingly
the year-end dividend forecast is ¥61 per share.

What direction will the Group takeunder the new system?
Taguchi: Under the new Unit system, we willstrongly advance the IP axis strategy by stepping up collaboration among our businesses
and unifying the efforts in each region underthe ALL BANDAI NAMCO concept.
In the Entertainment Unit, by leveraging
a wide range of outlets for digital and physicalproducts and dynamically rolling out the IP

The Unit system will be changed.
Taguchi: The BANDAI NAMCO Group has
positioned FY2022.3 as a period for formulating
our strategy for the next Mid-term Plan, which
will start from FY2023.3, and for bolstering
our foundation. Accordingly, we decided tochange the Unit structure and officer system
one year in advance of the next Mid-term Plan.
There will be three business Units. The
Toys and Hobby Unit and the Network Entertainment Unit will be combined to form theEntertainment Unit, while the Visual and Music
Production Unit and the IP Creation Unit will
be combined to form the IP Production Unit.
The Real Entertainment Unit will change its
name to the Amusement Unit.

axis strategy, we will aim to enhance ourpresence in global markets. The IP Production
Unit will consolidate the studio and production functions and aim to step up the creationof a wide range of IP. The Amusement Unit
will work to create a strong business foundation for the next Mid-term Plan.
Please discuss the director system
for BANDAI NAMCO Holdings Inc.
Taguchi: On April 1, Masaru Kawaguchi,
who is currently BANDAI NAMCO Holdings’
Executive Vice President and Director, will
become the Company’s President and Representative Director. I will become Chairman
and Director, and from that position I will
support Mr. Kawaguchi from an optimal
overall perspective. Mr. Kawaguchi has astrong track record as a leader, including
the repeated achievement of record-highresults as the leader of the Toys and Hobby
Unit. In addition, he has a wide range ofexperience, including Groupwide management
experience as Executive Vice-President of
BANDAI NAMCO Holdings and Directorof BANDAI NAMCO Entertainment. Moreover, Mr. Kawaguchi excels not only indelegating authority but also in drawing out
the front-line capabilities of young employees,
encouraging them to work with a sense of
responsibility as they tackle their jobs. In
this way, employees on the front lines canwork in a free and open-minded manner.
Among employees and organizations, he ishighly skilled at linking one successful initiative to the next. Mr. Kawaguchi has acheerful personality and enjoys the confidenceof those around him. I believe that he is an
excellent choice for the leader of the BANDAI
NAMCO Group.

BANDAI NAMCO Group Organization Chart
Current

April 2021~

Toys and Hobby UnitEntertainment Unit

Core Company: BANDAI CO., LTD.

<Business Management Companies>
Digital Business: BANDAI NAMCO Entertainment Inc.
Toys and Hobby Business: BANDAI CO., LTD.

Network Entertainment Unit
Core Company: BANDAI NAMCO Entertainment Inc.

IP Production Unit
Real Entertainment Unit
Core Company: BANDAI NAMCO Amusement Inc.

<Business Management Companies>
Visual and Music Business: BANDAI NAMCO Arts Inc.
Creation Business: SUNRISE INC.

Visual and Music Production Unit
Core Company: BANDAI NAMCO Arts Inc.

Amusement Unit

IP Creation Unit

<Business Management Company>
BANDAI NAMCO Amusement Inc.

Core Company: SUNRISE INC.

Affiliated Business Companies

Affiliated Business Companies

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 Groupwill work together to achieve further growth
and to guide the Group into a new era.
In addition, plans call for Toshio Shimada to
become a new outside director following theOrdinary General Meeting of Shareholders. Mr.
Shimada has worked in such positions as thepresident and representative director of CAC
Holdings Corporation. He has experience as acorporate leader, and is also well-versed in IT.
Accordingly, we felt that Mr. Shimada would
be able to provide appropriate advice, etc., as
the Group strongly advances digitalization.
There will also be changes in the
representative directors of thebusiness companies.
Taguchi: In the Entertainment Unit, BANDAI
NAMCO Entertainment Inc. will transition toa system of two representative directors. Yasuo
Miyakawa, who will continue as president andrepresentative director, and Naoki Katashima,
who will become representative senior managing
director. Mr. Katashima will leverage abundant
experience in global business and take steps
to advance business expansion on a global
basis, such as strengthening IP originating
overseas. By transitioning to a system of two
representative directors, BANDAI NAMCOEntertainment Inc. will implement more-rapid
decision-making and implementation in anindustry marked by rapid changes in the operating environment.
Kazuhiro Takenaka, who has a wide rangeof experience, including in the departments
handling products for the mature fan base andcollaboration initiatives with IP rights holders,will become president and representative
director of BANDAI CO., LTD. Nao Udagawa,
who has contributed to the growth of BANDAI
NAMCO Entertainment Inc. as a managing
director, will become president and representative director of BANDAI SPIRITS CO., LTD.
In the IP Production Unit, Satoshi Kono,
who has abundant experience in visual andmusic operations, will become president andrepresentative director of BANDAI NAMCO
Arts Inc. In the Amusement Unit, Hiroshi
Kawasaki, who has a wide range of experiencein such areas as toys and facilities, will
become president and representative directorof BANDAI NAMCO Amusement Inc.
These new representative directors are all
excellent choices to lead BANDAI NAMCO

4BANDAI NAMCO NEWS

into a new era. As a result of the advancementof personnel exchanges at the level of representative directors and directors, extending
across business lines, I expect to see further
activation of combinations and collaborative
activities in the future.
Do you have a message
for stakeholders?
Taguchi: Even during the next Mid-term Plan,
there will be no change to the Group’s strategyof leveraging the IP axis strategy to expand
our business in global markets. Nonetheless,with the operating environment undergoingsignificant change, we have to compete in new
ways rather than simply extend previous waysof doing things. Under the new system, we
will aim for sustained growth and formulate astrategy of leveraging new ways for BANDAI
NAMCO to compete in a new era.
In the midst of the COVID-19 crisis, I believethat entertainment that enriches people’s lives
is increasingly important. We will continue tomaintain a sense of pride and responsibility
for our mission of providing “Dreams, Funand Inspiration” through the Group’s products
and services. On that basis, we will strive toforge connections with fans in global markets
and contribute to the creation of a world thatis full of smiles and happiness.

New Presidents andRepresentative Directors
Taking office on April 1, 2021 (planned)

BANDAI NAMCO Entertainment Inc.

Naoki Katashima
Representative
Senior Managing
Director

BANDAI CO., LTD.

Message from Masaru Kawaguchi, who is scheduled to become the President and Representative
Director of BANDAI NAMCO Holdings Inc.

In April 2021, BANDAI NAMCO Holdings Inc. will commence full-scale preparations forthe next Mid-term Plan. As the new president, my mission will be to advance collaborationand combinations among our businesses so that the BANDAI NAMCO Group can achievesustained growth.
With a spirit of independence, the businesses in the BANDAI NAMCO Group have drawn
on each company’s distinctive characteristics to develop distinctive management skills. However, our operating environment is changing rapidly. Moving forward, our principal strategy
will entail advancing the ALL BANDAI NAMCO concept while maintaining respect for theindividual characteristics of each company. By combining the Group’s wide-ranging businessfields and the extensive know-how of our diverse employees, we will expand opportunities
for the Group. Going forward, the BANDAI NAMCO Group will aim to further strengthen
collaboration between management and business execution and to encourage people on thefront lines to take action with an even greater degree of independence.

Directors at Major Companies in the BANDAI NAMCO Group (as of April 1, 2021)
Kazuhiro Takenaka
President andRepresentative
Director

BANDAI SPIRITS CO., LTD.

Nao Udagawa
President andRepresentative
Director

BANDAI NAMCO Arts Inc.

BANDAI NAMCO Holdings Inc.

BANDAI NAMCO Entertainment Inc.

BANDAI NAMCO Arts Inc.

Chairman and Director

Mitsuaki Taguchi *Yasuo Miyakawa

President and Representative Director

Satoshi Kono *President and Representative Director

President and Representative Director

Masaru Kawaguchi *Representative Senior Managing Director

Naoki Katashima *Director

Hideyuki Kurita

Director

Yuuka Sakurai

Director

Kenji Hamada

Director

Kimikazu Ueyama

Director

Shuji Ohtsu

Director

Yuji Asako

Scheduled to take office after approval at theOrdinary General Meeting of Shareholders
planned for June 2021

Toshio Shimada
Director (Outside)

Satoshi Kono
President andRepresentative
Director

BANDAI NAMCO Amusement Inc.

Hiroshi Kawasaki
President andRepresentative
Director

Koji Fujiwara

Director

Toru Konno

Director

Masahiro Shimizu

Director (Part-time)

Daisuke Uchiyama

Director (Part-time)

Masaru Kawaguchi

Director (Part-time)

Yasuo Miyakawa

Director (Part-time)

Makoto Asanuma

Director (Part-time)

Hitoshi Hagiwara

Director (Part-time)

Kazumi Kawashiro

Director (Outside)

Yuzuru Matsuda

BANDAI CO., LTD.

Director (Outside)

Satoko Kuwabara

Chairman and Director

Masaru Kawaguchi *President and Representative Director

Director (Outside)

Mikiharu Noma

President and Representative Director

Kazuhiro Takenaka

Managing Director

Shin Sasaki

Managing Director

Nobuhiko Momoi *Director

Naoya Masaki

Director (Part-time)

Masayuki Ozaki

Director (Part-time)

Daiki Miyatani

Director (Outside)BANDAI NAMCO Holdings Inc.
New Outside Director Candidate

Managing Director

Koichi Kawana

Following the General Meeting of
Shareholders scheduled for June 2021

Shinjiro Kaji

Director

Akira Togashi

Director (Part-time)Taro Tsuji
Yasuo Miyakawa

Chairman and Director

Mitsuaki Taguchi

Director (Part-time)

President and Representative Director

Masaru Kawaguchi

BANDAI SPIRITS CO., LTD.

Shuji Ohtsu

President and Representative Director

Director

Yuji Asako

Director (Part-time)

Takaaki Suzuki

Director (Part-time)

Makoto Asanuma

SUNRISE INC.

Director

Director

Director (Part-time)

Makoto Asanuma

Director (Part-time)

Hirofumi Inagaki

Director (Part-time)

Yoshiyasu Horiuchi

Director (Part-time)

Satoshi Kono

BANDAI NAMCO Amusement Inc.

Nao Udagawa

Chairman and Director

Hitoshi Hagiwara *Director

Hiroshi Sakakibara

Yasuo Miyakawa

Hiroshi Kawasaki

Director

Takahiro Mizuno

President and Representative Director

Director (Part-time)

Satoshi Kono

Director

Daiki Miyatani

Director (Part-time)

Makoto Asanuma

Director

Akira Togash

Director (Part-time)

Hiroshi Kawasaki

Director (Part-time)

Kazuhiro Takenaka *Director (Outside)

Koichi Kawana

Director (Part-time)

Shin Sasaki

Director (Outside)

Satoko Kuwabara

Director (Outside)

Mikiharu Noma

Director (Outside)

Toshio Shimada

Managing Director

Seiji Kagawa

Director

Haruo Iwayaguchi

Director

Yoshiyasu Horiuchi

Director (Part-time)

Takahiro Mizuno

Director (Part-time)

Yuji Asako

Newly appointed* Change in position

March 20215