NEWSLETTER

March 2022
Bandai Namco miraikenkyusho
5-37-8, Shiba, Minato-ku, Tokyo, 108-0014, JapanThe Bandai Namco Group’s New Mid-term Plan

Interview with the President

Under the new Mid-term Plan, we will aim
for deep, broad, and multifaceted connections with a wide variety of stakeholders.
The Bandai Namco Group has announced a Mid-term Plan that will startfrom April 2022. In this issue of the newsletter, Bandai Namco Holdings’
President Masaru Kawaguchi provides an overview of the new Mid-term
Plan and discusses the Group’s results in FY2022.3 and other matters.
 andai Namco Holdings’ President Masaru Kawaguchi announced
B
the new Mid-term Plan through an online presentation.

The results for FY2022.3 have beenannounced.
Kawaguchi: Looking at our results in thefirst nine months of FY2022.3 (April to
December 2021), net sales were ¥628.3 billion, operating profit was ¥92.1 billion,
recurring profit was ¥95.5 billion, and profit
attributable to owners of parent was ¥61.7
billion. We achieved record highs for sales
and for profits at all levels. In comparison
with the same period of the previous fiscal
year, the Toys and Hobby business improved
its results, with favorable performances byproducts for the mature fan base, such as
Gundam plastic models, and by toy-related
items, such as trading cards. As a result, theToys and Hobby business achieved recordhigh results. In addition, the Visual and Music
Production business and the Amusement business, which were significantly affected by the
spread of COVID-19 in the previous fiscal
year, recovered with year-on-year gains in thenine-month period. Overall, the Group wasable to demonstrate continued solid results in
its regional, business, and IP portfolios.
With consideration for results in each business in the nine-month period; current market
conditions; and products, services, and marketing plans in the fourth quarter, we decided
to revise the forecasts for FY2022.3. Goingforward, while planting seeds for the future,
we will work to steadily implement current
business initiatives, achieve the full-year forecasts for net sales of ¥810.0 billion andoperating profit of ¥96.0 billion, and prepare
for a solid start with the new Mid-term Plan.
* IP: Characters and other intellectual property

Looking at the dividend forecast for
FY2022.3, in accordance with our basic policyof providing a return to shareholders that targets a total return ratio of 50% or more basedon stable dividend payments of 2% of DOE,
we are expecting an annual per-share dividendof ¥153 per share, including a base dividendof ¥48 per share and a performance-based
dividend of ¥105 per share.
In conjunction with the start of the
new Mid-term Plan, the Group has
formulated its Purpose.
Kawaguchi: From April 2022, we will introduce the Purpose, which is the ultimate
definition of the Group. The Purpose expresses
the meaning of our existence for society, thereason why we conduct business operations
and corporate activities, and the significanceof our working at Bandai Namco. In formulating the Purpose, we held repeateddeliberations based on factors that were identified through questionnaires distributed toall employees, discussions among employees
from around the world, etc.
In the Purpose, we want to emphasize thekey phrase “connecting and working together
to create things.” Through our history of pursuing the realization of smiles and dreams forfans and staying close to those fans, the concept of aiming for the same future has become
an established part of Bandai Namco’s corporate culture. We redefined that concept in
the Purpose. As we cooperate with people
around the world, the result of “connecting
and working together to create things” willbe “Fun for All into the Future,” which willentail providing fun and inspiration to people
around the world and striving to create smiles
and happiness into the future.
The corporate logo will be changed.
Kawaguchi: Our previous logo was createdat the time of the management integration ofBandai and NAMCO in 2005, and accordingly
it expressed the concept of “fusion.” It has
been 16 years since the integration, and wewill change the logo to incorporate the ideathat Bandai Namco is moving on to the nextstage. The new logo expresses the key phraseof the Purpose — connecting and working
together to create things — and in line withthe concept of communication, it has a motifof a speech bubble like those used in manga,
etc. For the color, through questionnaires
answered by employees around the world, we
asked about words expressing images associated with the aims of the Group. From among
the words that were frequently mentioned, weselected candidate colors through scientificmethods linking words with colors. Then, fromamong these candidates, we selected red as acolor that creates an impression that is enthusiastic, fun, active, bold, etc.
The new logo will be displayed on all of
the Group’s products and services. Goingforward, we will strengthen our branding initiatives in order make the logo known aroundthe world as the emblem of Bandai Namco,
which aims for global growth.
(Continued on next page)

March 2022

1

(The information provided is as of the end of February 2022.)

Interview with the President
The Bandai Namco Group’s New Mid-term Plan

Working on an IP axis todevelop a metaverse for each IP
that is close to fans“Connections” is one of the key
words in the Mid-term Plan.
Kawaguchi: That’s right. Under the new
Mid-term Plan, we will target what we aim tobe, as expressed by the Purpose. First, we will
work to build an original Bandai Namco framework for connecting with fans. Bandai Namco
is supported by many fans who have long-lasting connections to the Group through our
products and services. Centered on the Purpose, we will aim to solidly strengthen ourconnections with all stakeholders, including
IP fans, partners, employees, communities,
and the world.
First, we will connect with IP fans. By
always staying close to IP fans and continuing
to provide products and services that they
enjoy, Bandai Namco will do its utmost to beconsidered essential by fans. Then, we willconnect with our business partners. With theknow-how that we have cultivated in a wide

range of business fields
and through the IP axis
strategy, which aims tomaximize IP value, wewill strive to be thechoice of business partThe IP metaverse
ners so that they wantto establish connections with Bandai Namco.
Furthermore, we will connect with communities. In addition to IP communities, wewill work on an IP axis to connect with communities throughout society, and together wewill strive to build a sustainable future. In
pursuing the aim expressed by the Purpose,
we must foster deeper, broader, and more-multifaceted connections with fans around theworld. We will connect deeply with current
fans and broadly with new fans. And then we
will foster multi-faceted connections withexisting fans and new fans, and with the communities that they form. Together with fans,< Bandai Namco's Purpose >Bandai Namco exists to share dreams, ­­­­fun and inspiration with people
around the world.
Connecting people and societies in theenjoyment of uniquelyentertaining products and services,
we’re working to createa brighter future for everyone.

< New logo >2

BANDAI NAMCO NEWS

Gundam plastic models and digital games.
Third, we will build communities. We
will provide the optimal venues for fansand business partners to gather and form
connections.

we will work to foster connections filled withdreams. What will be important in making
connections will be the quality of connections,in other words, how we connect.
Is this idea also linked to the main
strategies in the Mid-term Plan?
Kawaguchi: In regard to the “new framework
for connecting with fans,” which is a main
strategy of the IP axis strategy in the new
Mid-term Plan, on an IP axis, we will develop
a metaverse for each IP as a framework thatis close to fans. For the IP Metaverse, we areenvisioning a framework under which fanscan use avatars to become characters, watch
videos, and enjoy exciting live events, as well
as games, shopping, etc. Our greatest focus
will be the existence of various worlds(metaverses) that leverage the worldview of
each IP, with IP as the center of the framework.
This will be a fan-oriented metaverse that
fosters deep, broad, and multifaceted connections with fans.
Would you provide more detailabout the metaverse?
Kawaguchi: We will consider specific content and designs as we go forward, startingwith the use of Gundam, for which we are
implementing a worldwide rollout as originalGroup IP. Although the details are not yet
finalized, the Gundam metaverse will likely
offers spaces with dreams that fully leverage
the IP’s worldview, such as outer space andspace colonies. In working to advancemetaverse development, we will first collect
IP information, and we will enable fans toaccess a variety of that information. Second,
we will develop metaverse content. We will
provide unique services that draw on Bandai
Namco’s distinctive strengths, such as services that leverage a fusion of physicalPlease discuss “accelerating evolution in the IP Axis strategy.”
Kawaguchi: To advance to the next stage
under the IP axis strategy, Bandai Namco willneed to aim for lateral development with anincreased focus on an IP axis, and to changeover to a platformers’ mindset. Perhaps theword “platformer” might give the wrong
impression. I am referring not to the management of platforms but rather to a transition in
our mindset, from a business axis to an IP axis.
Bandai Namco’s strength is the ability to
use a wide range of outlets to connect withfans. For example, looking at Gundam, indigital operations our outlets include themetaverse, e-commerce sites, games, online
visual product distribution, etc. In physicaloperations, we can connect with fans throughvenues, such as directly operated stores for
Gundam plastic models, multipurpose amusement facilities, events, etc. We will build IP
platforms that facilitate connections with fansin both digital and physical operations. The
building of IP platforms that enable

connections between Bandai Namco and fans,as well as among fans themselves, will be thefirst step toward the acceleration of evolution
in the IP axis strategy.
Up to this point, the major flow of ourefforts with the IP axis strategy involved drawing on a wide range of products and services
while leveraging the worldviews of the IP. In
order to maximize businesses, we will continue to advance the utilization of IP in thismanner. In addition, going forward we will
increase measures to strengthen initiatives forthe maximization of the value of IP itself.
This raises the question of how we canmaximize IP value. In that regard, I think it
might be essential to increase the opportunities
for many fans to experience IP and to rapidly
broaden the potential of IP. In advancing­short-term and long-term initiatives while
maximizing businesses, it is possible that
there will be some cases in which we willprioritize initiatives from a long-term viewpoint in order to maximize IP value.
Furthermore, in areas where we cannot doeverything ourselves, we will need to promote
initiatives to maximize IP value in cooperation
with business partners.

Does the Mid-term Vision reflect­previous discussions?
Kawaguchi: The Mid-term Vision for the
next three years will be “Connect with Fans.”
This Mid-term Vision expresses our objective of working together under the ALL
BANDAI NAMCO concept to advance toward
the realization of what we aim to be as
expressed by the Purpose.
As indicated in the Mid-term Vision,
Bandai Namco will aim to continually address
the needs of our fans, and to maintain a uniqueexistence that connects with those fans in a
broad, deep, and multi-faceted manner.
(Continued on next page)< The Bandai Namco Group’s Mid-term Plan >Mid-term Vision
Main Strategies
IP×FanConnecting with fans through IP

IP Axis Strategy

IP×Value
Enhancing IP value

IP×World
Connecting withthe world through IP

A new framework for connecting with fans

Accelerating evolution in the IP axis strategy

Building businesses under the ALL BANDAI NAMCO concept

Personnel Strategy

Developing diverse human resources

Sustainability

Connecting to a smile into the future

March 2022

3

(The information provided is as of the end of February 2022.)

Interview with the President
The Bandai Namco Group’s New Mid-term Plan

Aiming to achieve an overseas sales ratio of 35% by strengthening
global business development under the ALL BANDAI NAMCO concept

BANDAI NAMCO NEWS

What are the Group’s investment
plans for advancing its strategies?
Kawaguchi: Under the previous Mid-term
Plan, we implemented ¥25.0 billion in strategic investment to strengthen the IP axis
strategy, and currently we are starting to see
the creation of IP resulting from Groupwide
initiatives, such as SCARLET NEXUS andAmaim Warrior at the Borderline.
Under the new Mid-term Plan, we will
implement ¥40.0 billion in strategic investment to accelerate evolution of the IP axis
strategy. Of this amount, we will invest ¥25.0
billion to maximize IP value, and we will
implement initiatives for new IP creation andprojects that extend across business lines. In
addition, we will invest ¥15.0 billion centeredon the construction of an IP metaverse data
platform. We will consolidate the Group’s fandata, build a framework for integrated management, etc.
The data of fans who have connections with
Bandai Namco is highly valuable. To makefull use of this resource, we will consolidate
the Group’s fan customer data in a storehouse
known as the Data Universe. We will analyze
the consolidated data in terms of such factors
as fan behavior, purchases, preferences, etc.,
and link it to increased satisfaction with products and services, the formation of communities
among fans, and the development of the
IP metaverse.
What is the Group’s view of themarket environment for IP?
Kawaguchi: Going forward, multiple major-IP
visual products will be released for a wide
range of regions and targets. For example,
the release of a new DRAGON BALL film
has been announced. For the previous film
release, together with the licensor and otherpartners, we held events around the world and

The Bandai Namco Group Sustainability Policy
Under the IP Axis Strategy, we will work with fans to promote sustainability activities
corresponding to social issues that should be addressed by the Group.

Material issues (important themes)• Harmonious coexistence with the natural environment• Provision of appropriate products and services• Appropriate utilization and protection of intellectual property• Establishment of work environments that facilitate mutual respect• Harmonious coexistence with communities
Medium- to long-term targets for decarbonization

TargetBy 2050:
Reduce the amount of energy-related carbon dioxide emissions
at Group business sites (offices, own plants, directly operated
amusement facilities, etc.) to net zero

Medium-termtargetBy 2030:
A 35% reduction compared with FY2020.3 (a 50% reduction
compared with FY2014.3) in energy-related carbon dioxide
emissions at Group business sites

Main initiatives

Further promotion of energy-saving initiatives and introductionof renewable energy, etc.

engineers involved with the creation of IP and
the development of products and services, andmanagers who will be the foundation foradvancing management strategies and business strategies. In this way, we will aim for aworkforce with a balanced composition.
Please explain the system foradvancing the new Mid-term Plan.
Kawaguchi: Bandai Namco Holdings Inc.
will transition to a new system. Following
approval at the shareholders’ meeting in June,
we will transition from a “company with anaudit and supervisory board” to a “company
with an audit and supervisory committee.”Through this transition, we will work tostrengthen corporate governance, delegate
certain authorities related to business execution to a newly established committee, andimplement rapid decision-making and business execution.

Announcing sustainability, which is an important management issue, as a main strategy
Sustainability was added as one of
the main strategies.
Kawaguchi: We consider sustainability to
be an important management issue, and forthe first time it has been included as a main
strategy in the Mid-term Plan. To support therealization of a sustainable society, we havealready announced the Bandai Namco Group
Sustainability Policy and medium to long term
targets for decarbonization. Looking at oursustainable activities, our objective is to work
together with fans toward the realization of asustainable society in the future. Moreover,
we have identified five of the most important
themes as material issues. For Gundam, weare already implementing multi-faceted activities on an IP axis, such as recycling andeducation. Moving forward, we will foster thistype of collaboration involving the IP axis
strategy and work together with fans toadvance a variety of activities. In addition, asa sustainability promotion structure, the GroupCSR Committee, which has reported directly
to the president, has been reorganized into theGroup Sustainability Committee and repositioned so that is is directly under the Board of
Directors. In addition to implementing businessstrategies, we will also conduct sustainable
activities and strive to create smiles and happiness into the future.
Please explain the personnel
strategy.
Kawaguchi: Our employees are the Group’s
greatest asset. In accordance with our Purpose,
we seek to be a group in which companies
and employees can act with motivation andenergy to leverage varied talents, individual
characteristics, and values. In this way, we
will strive to be a group that demonstrates theconcept of “same spirit, diverse talents.” We
will secure and promote human resources
without regard to whether they are new graduates or mid-career hires, their gender, or theirnationality. In addition, we will further focus
resources on the establishment of systems andenvironments that enable diverse humanresources to actively participate and to workin a manner that is healthy in body and mind.
Furthermore, we will advance initiatives
to support employees as they take on challenges, and we will work to address diverse
working styles and new working styles. In
addition, we will strive to develop diverse
human resources in a variety of fields, suchas marketing personnel who will advance theIP axis strategy on a global basis, creators and(Continued on next page)

System After Transition to a Company with an Audit
and Supervisory Committee (plan)
General Meeting of Shareholders
Appointment / Dismissal

Appointment / Dismissal

Appointment / Dismissal
Optional Committees

Board of Directors

Cooperation4

the mature fan base. Furthermore, to expand
business overseas, we will need to strengthen
our production system. With Gundam plastic
models, for which we are stepping up overseas
roll-out initiatives, we will work to further
expand the production system in order toaddress demand in each region.

products, and with other IP as well, we plan
to create buzz by continually launching new
visual products in order to foster excitement
about the IP itself and among fans. In the
Digital business, over the three years of
the new Mid-term Plan, we are planning a
total of approximately 30 worldwide titles
for home video games and network content.
Going forward, we will aim for worldwide
hits and conduct development with a focus
on quality.

Independent Auditors

Please discuss “building businesses
under the ALL BANDAI NAMCO
concept.”
Kawaguchi: The results of the Bandai Namco
Group have been stable over the past few
years, and we have the potential for growtharound the world. Overseas, the scale of ouroperations is small compared with our business in Japan, and consequently we will need
to work on an ALL BANDAI NAMCO basis
rather than on an individual business basis.
Accordingly, prior to the start of the new Midterm Plan, we have established systems tocompete under the ALL BANDAI NAMCO
concept in all regions.
In inland China, a new company integrating the Digital business and the Toys andHobby business started operations in January
2022. In addition, in the U.S. and France,
we have brought together the offices for the
Digital business and the Toys and Hobby
business and established systems for advancing our strategies under the ALL BANDAI
NAMCO concept. Moving forward, under
ALL BANDAI NAMCO, we will actively
implement collaboration among businesses,
and we will advance IP projects that extend
across business and regions. In this way, we
will work to maximize businesses and IP
value. Moreover, we will also focus on thecreation of IP from each region. Although it
is difficult to make a precise statement about
the timing, we must aim to achieve, as rapidly
as possible, a 50-50 balance between overseas sales and sales in Japan. Accordingly,
in the new Mid-term Plan, we have set theobjective of increasing the overseas sales
ratio from the current level of slightly morethan 20% to 35%. With sales in Japan growing,raising this ratio to 35% will not be an easytask, but we will aim to achieve it by working
together under the ALL BANDAI NAMCO
concept. Overseas, we have growth potential
in all regions, but North America and inland
China, which are currently recording growth,
are especially important markets. In the Digitalbusiness, we will launch titles for a variety ofregions and targets, and work to raise overseas
business as a whole. Also, in the Toys andHobby business, we will expand business forgenerated considerable excitement among
IP fans worldwide. In a wide range of IP, wewill work closely with partners and actively
roll out products and services to facilitatesynergy effects.
In the Group’s IP Production Unit, we areplanning to invest approximately ¥45.0 billion
in about 120 visual products over three years.
This will include taking on the challenge in
new IP creation of more than 10 products ayear. Moreover, with existing IP, we have alineup of multiple new Gundam visual

Audit and Supervisory
Committee
Directors who are Audit andSupervisory Committee members

Independent Directors andAudit & Supervisory Board
Members Committee

Directors who are not Audit andSupervisory Committee members

Delegation
Reports

Cooperation / Auditing
Directions

Auditing / Supervision

Representative Director
Reports

Internal Auditing Division

Directions

Group Sustainability
Committee*Newly established

Full-Time Officers Committee

Appointment / Dismissal /Supervision

Reports

Reports

Personnel Committee*Newly established
Reports

Group Risk Compliance
Committee
Group Information Security
Committee
Internal Control Committee

March 2022

5

Interview with the President
The Bandai Namco Group’s New Mid-term Plan

Aiming for sales of ¥1,100.0 billion in the
final year of the Mid-term Plan
Following the approval of the shareholders’meeting in June, we will transition to a company with an audit and supervisory committee.
Looking at the new director system, out of 14
directors, 5 will be outside directors.
In regard to the Unit system, we willcontinue to have three Units, but in the IP
Production Unit the IP production businesswill be consolidated through the integrationof the visual and music production businessand the creation business. For the organizational system, the three companies in thevisual products business and the three companies and the music and live events businesswill be integrated to form new companies.
What are the numerical targets in the
Mid-term Plan?
Kawaguchi: In FY2025.3, the final year of
the plan, we are targeting consolidated net

Directors at Major
Companies in the
Bandai Namco Group

Finally, do you have a message forreaders?
Kawaguchi: In accordance with the new
Purpose, Bandai Namco will work to give
concrete form to the Purpose in business, insustainability, and in the actions of individual

FY2025.3
Consolidated
net sales¥1,100 billion

Consolidated
operating profit¥125.0 billion

ROE

12% or more

employees so that we can provide fun andinspiration to people around the world andwork to create smiles and happiness into the
future. I would like to ask all of our shareholders for their continued support. Pleaselook forward to exciting developments forBandai Namco in the years ahead.

Bandai Namco Entertainment Inc.

Bandai Namco Filmworks Inc.

President and R­ epresentative
Director

Yasuo Miyakawa

President and R­ epresentative
Director

Senior Managing Director

Naoki Katashima *Managing Director
Director

Makoto Asanuma

Vice President and Director

Satoshi Kono *Koji Fujiwara

Director

Yoshitaka Tao

Toru Konno

Managing Director

Shin Sasaki

Daisuke Uchiyama

Director

Naoya Masaki

Director (Part-time)

Nao Udagawa

Director

Kenji Hamada

Bandai Namco Holdings. Inc.

Director (Part-time)

Arnaud Muller

Director

Kimikazu Ueyama

Following the General Meeting of ­Shareholders
scheduled for June 2022

BANDAI CO., LTD.

President and ­Representative
Director(as of April 1, 2022)

Masaru Kawaguchi

Director

Yuji Asako

Director

Nobuhiko Momoi

Director (Part-time)

Yasuo Miyakawa

Director (Part-time)

Kazuhiro Takenaka

Director (Part-time)

Makoto Asanuma

Director (Part-time)

Hiroshi Kawasaki

Director (Part-time)

Shuji Ohtsu *Director(Part-time, Outside)
Director(Part-time, Outside)
Director(Audit and Supervisory Committee Member)

6

sales of ¥1,100.0 billion, consolidated operating profit of ¥125.0 billion, and ROE of
12% or more. Net sales of ¥1,000 billion
and operating profit of ¥100 billion might
generally be said to be high targets, but wewill aim to achieve them in the final yearof the Mid-term Plan by implementing ourstrategies with everyone in the Group working together.
In regard to our shareholder return policy,
we will continue to implement a policy ofaiming a total payout ratio of 50% or higher,
with dividend payments of 2% of DOE.

Numerical targets

Director (part-time)

President and R­ epresentative
Director

Kazuhiro Takenaka

Director

Nobuhiko Momoi *Director

Shinjiro Kaji

Director

Daiki Miyatani

Director

Akira Togashi

Director

Satoko Kuwabara *Director(Audit and Supervisory Committee Member, Part-time,
Outside)Takayuki Komiya

Director (part-time)

Yoshiyasu Horiuchi

Bandai Namco Music Live Inc.
President and R­ epresentative
Director

Takaaki Suzuki *Director

Kazunori Goka

Director

Masayuki Ozaki

Director (Part-time)

Yasuo Miyakawa

Director

Yuka Sakurai

Director

Hideyuki Kurita

Toshio Shimada

Director(Audit and Supervisory Committee Member, Part-time,
Outside)Keisuke Furusawa

Taro Tsuji

President and R­ epresentative
Director

Toru Shinoda

Koji Fujiwara

Director (part-time)

Keisuke Furusawa

BANDAI SPIRITS CO., LTD.

Masataka Nagaike

Takaaki Suzuki

Director (part-time)

Director (Part-time)

Koichi Kawana

Director(Audit and Supervisory Committee Member, Outside)BANDAI NAMCO NEWS

Director (Part-time)

Nao Udagawa

Director

Hiroshi Sakakibara

Director

Takahiro Mizuno

Director

Akira Togashi

Director

Keisuke Furusawa

Director (Part-time)

Kazuhiro Takenaka

Director (Part-time)

Shin Sasaki

Director (part-time)

Kimikazu Ueyama *Director (part-time)

Kai Tanaka

Bandai Namco Amusement Inc.
President and R­ epresentative
Director

Hiroshi Kawasaki

Managing Director

Seiji Kagawa

Managing Director

Haruo Iwayaguchi *Director

Yoshiyasu Horiuchi

Director

Hiroshi Ikeda

Director (part-time)

Takahiro Mizuno

Director (part-time)

Yuji Asako

Newly appointed* Change in position