統合レポート
BandaiGroup
REPORT
BANDAINamco
NAMCO
GroupINTEGRATED
2021 2022
オンプロダクト-スタンドードタイプ 英語版

オンプロダクト-ミニラベル

英語版（印刷スペースが無い場合）

1C

1C

4C

www.bandainamco.co.jp

INTEGRATED REPORT 2022
4C

Printed in Japan

色指定 / 特色 : Pantone 626C

CMYK : C100 M60 Y100 K20

公和印刷株式会社

Bandai Namco’s Purpose

Bandai Namco exists to share dreams,
fun and inspiration with people around the world.
Connecting people and societies in the enjoymentof uniquely entertaining products and services,
we’re working to create a brighter future for everyone.

Note: The images are from Bandai Namco’s Purpose Movie, which depicts a world
filled with dreams that reflect Bandai Namco’s strengths, including alife-size Gundam making a strong impression as it walks through thecommunity. Bandai Namco’s Purpose Movie can be seen on the Company’s
website at https://www.bandainamco.co.jp/en/about/purpose.html

1

CONTENTS
04

	ORGANIZATIONAL STRUCTURE

28

AND IP AXIS STRATEGY	SPECIAL FEATURE:
MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

06	THE BANDAI NAMCO GROUP—

34

	MESSAGES FROM THE PRESIDENTS OF THE BUSINESS

42

	MAIN STRATEGIES:OUR VALUE CREATION PROCESS
08

MANAGEMENT COMPANIES	MAJOR IP IN GROUP PRODUCTS

IP AXIS STRATEGY / PERSONNEL STRATEGY /SUSTAINABILITY

AND SERVICES
10	RISKS AND OPPORTUNITIES

68	CORPORATE GOVERNANCEFOR THE BANDAI NAMCO GROUP
1278

DIRECTOR SYSTEM

82

	FINANCIAL SECTION

	THE BANDAI NAMCO GROUP—
1 YEAR OF RESULTS

14	DIRECTORS, BANDAI NAMCO HOLDINGS

89

	CORPORATE DATA

16	PRESIDENT’S MESSAGE

90

	OVERVIEW OF MAIN GROUP COMPANIES

20

	CFO/CISO’S MESSAGE

22

	ROUNDTABLE DISCUSSION

Formulating the Purpose and Introducing a New Corporate Logo

Connecting people and societies in the enjoymentof uniquely ­entertaining products and services,
we’re working to create a brighter future for everyone.
In April 2022, we established the Purpose, which is the ultimate definition of the Group. The Purpose expresses themeaning of our existence for society, the reason why we conduct business operations and corporate activities, and thesignificance of our working at Bandai Namco. In formulating the Purpose, we held repeated deliberations based on
opinions that were identified through questionnaires distributed to all employees and discussions with employees fromaround the world, etc.
In the Purpose, we place a special importance on the key phrase “connecting and working together to create things.”
Through our history of pursuing the realization of smiles and dreams for fans and staying close to those fans, the concept

AMONG OUTSIDE DIRECTORS

of aiming for the same future has become an established part of Bandai Namco’s corporate culture. We redefined thatconcept in the Purpose. As we cooperate with people around the world, the result of “connecting and working together
to create things” will be “Fun for All into the Future,” which is linked to providing fun and inspiration to people around theworld and striving to create smiles and happiness into the future.
We also changed the Group’s logo. Our previous logo was created at the time of the management integration of BANDAI
and NAMCO in 2005, and accordingly it expressed the concept of “fusion.” It has been 17 years since the integration, andwe changed the logo to incorporate the idea that Bandai Namco is moving on to the next stage. The new logo, which has
About Integrated Report 2022

IR

Sustainability

In editing this report, we made reference to the IFRS Foundation’s
Integrated Reporting Framework and SASB Standards on Toys &Sporting Goods and Software & IT Services, as well as the TCFD
recommendations.
Forward-Looking Statements
The forward-looking statements in this report are based on theinformation available to management as of August 2022 andinclude various risks and uncertainties. Accordingly, actual results
may differ materially from these projections for a variety of reasons.
Major factors that could influence actual results include changes in
the Bandai Namco Group’s operating environment, market trends,
and exchange rate fluctuations.

Our website provides a variety of information about
the Bandai Namco Group, such as IR informationand sustainability initiatives. Please utilize thewebsite in conjunction with this report.

https://www.bandainamco.co.jp/
en/index.html

2

Notes:
1. Figures in this report have been rounded down.
2. Unless otherwise noted, figures in this report are as of August 2022.
3. This is an English translation of the Japanese original Bandai Namco Group
Integrated Report 2022. The Company provides this translation for yourreference and convenience only and does not guarantee its accuracy orotherwise. In the event of any discrepancies, the Japanese original integrated report shall have precedence.

a speech bubble motif, expresses the potential of the brand to connect with people around the world through dreams,
fun and inspiration and inspire them with amazing ideas. The new logo will be displayed on all of the Group’s products
and services. Going forward, we will strengthen our branding initiatives in order to make the logo known around theworld as the emblem of Bandai Namco, which aims for global growth.
In accordance with the Purpose, the Bandai Namco Group will leverage the individual characteristics of each businesswhile increasing the sense of unity and comprehensive strength under the ALL BANDAI NAMCO concept.

Masaru KawaguchiPresident and Representative Director
Group CEO
Bandai Namco Holdings Inc.



3

ORGANIZATIONAL STRUCTURE AND IP AXIS STRATEGYORGANIZATIONAL STRUCTURE
AND IP AXIS STRATEGYWith a system of three Units, the Bandai Namco Group is creating a diverse range of entertainment under the ALL BANDAI NAMCO concept.
Regional headquarters

In addition, the strength of the Bandai Namco Group is the IP axis strategy, under which we work to maximize the value ofcharacters and other intellectual property (IP) in order to provide the optimal products and services in the optimal regions at

Bandai Namco Holdings USA Inc.

the optimal times.

Bandai Namco Holdings UK Ltd.
Bandai Namco Europe S.A.S.*
Bandai Namco Holdings Asia Co., Ltd.

ORGANIZATIONAL STRUCTURE

Bandai Namco Holdings China Co., Ltd.
* Operating holding company

ENTERTAINMENT
UNIT
Digital BusinessBusiness Management Company:
Bandai Namco Entertainment Inc.
Planning, development, and distributionof network content; planning, development, and sales of home video games

IP PRODUCTION
UNIT

AMUSEMENTUNIT

Business Management Company:
Bandai Namco Filmworks Inc.

Business Management Company:
Bandai Namco Amusement Inc.

Planning, production, and use of visualand music content, such as animations;management and use of copyrights;
discovery and development of artists; live
entertainment business

Planning, development, production, andsales of amusement machines; planningand operation of amusement facilities, etc.

AFFILIATED BUSINESSCOMPANIES
Supporting the Units in such areas as
distribution, logistics, and administrative
services

The optimal
time

Maximizing
IP Value

Toys and Hobby BusinessBusiness Management Company:
BANDAI CO., LTD.
Planning, development, production, andsales of toys, capsule toys, cards, confectionery and foods, apparel, sundries,
plastic models, prizes, stationery, andother products

HOME VIDEOGAMESAMUSEMENTFACILITIESTOYSCONFECTIONERY
and FOODSCARDSIntroducing products
and services that leverage
the worldviews of IPs

Cultivation

Creation

Note: This illustration shows one example of IP axis development.

4

Co-creationNEW
DEVICESLIVEENTERTAINMENT

AMUSEMENT
MACHINESNETWORKCONTENTThe optimal
regionVIDEO ON
DEMAND (VOD)
CONTENTVISUAL andMUSIC PACKAGE

IP AXIS STRATEGYThe optimal
outletPLASTICMODELS

MOVIESIP investment
Accumulated know-how

5

THE BANDAI NAMCO GROUP—

Working Together with Fans Around the World to Create the Future
tive management resources to implement the global rollout of the IP axis strategy, which is the Group’s greatest strength and businessmodel, and to provide products and services that leverage the appeal of IP. Moreover, through those products and services, we are
striving to fulfill our responsibility to contribute to a sustainable society and aiming to realize sustained growth over the medium tolong term. In these ways, the Bandai Namco Group is working to meet the expectations of its stakeholders. Through these initiatives,
we will strive to provide fun and inspiration to people around the world, to create smiles and happiness into the future, and to achieve

Bandai Namco’s Purpose:

THE BANDAI
NAMCO GROUP’SOPERATING
ENVIRONMENT
AND ISSUESFACING THE
GROUP

Changes incustomerlifestyles andpreferences

Number of consolidated
employees:

9,886 people(As of March 31, 2022)

Technical
capabilities
Intensifying
competition in
global markets

Game content R&D
investments:

94.8 billion¥

Platform
diversification

OUTCOME
Corporate
culture oftaking on
challenges

Sales andmarketingcapabilities(FY2022.3)

ADVANCING
THE MID-TERM PLAN
Changes intechnology,
such as network
adoption

growth in our corporate value.

INPUT (KEY MANAGEMENT RESOURCES)

Diversehuman
resources

Strategic investment tostrengthen the IP axis strategy:

40.0¥billionover three years

Planning anddevelopment
capabilities(FY2023.3 to FY2025.3)

Advertising expenses:¥

53.5 billion(FY2022.3)

Stablefinancial
position

Annual numberof IP utilized:

More than300

Shareholders

67.7%

Expandingbusiness ona global basis(FY2022.3)

Personnel Strategy

Developing diverse human resources

Strengthening
the IP axis
strategy

Shareholders’equity ratio:

MAIN STRATEGIESIP Axis Strategy

VALUE CREATION

Open

partnerships

Connect with Fans

IP×Fan (Connecting with fans through IP)
IP×Value (Enhancing IP value)
IP×World (Connecting the world through IP)

VALUE CREATION PROCESSOUR VALUE CREATION PROCESSIn accordance with the Purpose, the Bandai Namco Group is taking steps to address the issues that we face. We are combining distinc-

Sustainability

Localcommunities

Bolstering
financial
position

Connecting to a smile
into the future

Creating newentertainment

Customers

Increasing
economic value

Increasingsocial value

BUSINESS MODEL (IP AXIS STRATEGY)
Dependence on
specific IP,
businesses,
or regions

Securing
human
resources

Introducing products
and services
that leverage theworldviews of IPs

Maximizing
IP Value

Strengthening
connections
withcustomers

Employees
Utilizing
diverse humanresources

Partners

Addressing climatechange andenvironmental
changeThreats, such as
disasters,
epidemics,
and terrorism

6

CORPORATE GOVERNANCE

Advancingsustainability
activities

7Annual Number of IP UtilizedMore than300

IDOLiSH7EIAThe Bandai Namco Group utilizes more than 300 IP per year to roll out
products and services. This section introduces examples of established IP.

Tamagotchi Series

E

E

A

A

Anpanman has been popularThis inhouse IP was created asamong parents and children fora portable nurturing toy in 1996

more than 30 years. The Bandai

and today is supported by two

Namco Group provides Anpanman

generations—parents and theirproducts and services, centered onchildren. We are implementing

toys for infants.

a wide range of rollouts, such as
Tamagotchi products based on

Units Developing IP
Products and Services

E

Entertainment UnitI

IP Production Unit

A

collaboration with the IP of otherAmusement Unit

companies.

THE IDOLM@STER Series

DRAGON BALL Series

PAC-MAN

E

E

E

I

A

Since the launch of a game app forThis IP was introduced in 2005.

smartphones in 2015, IDOLiSH7 hasCentered on idol production gameachieved a high level of popularity,content for smartphones and home

especially among women. The

video games, it has earned popular-

Bandai Namco Group is rolling out

ity among a wide range of fans,a wide range of products andwithout regard to gender. We areservices, including animations, live

rolling out a variety of products andevents, music CDs, and goods.

services, such as music CDs, live
events, animations, comics, web
radio, and merchandise.

A

MAJOR IP IN GROUP PRODUCTS AND SERVICES

MAJOR IP IN GROUPPRODUCTS AND SERVICES

AnpanmanA

Launched in 1984, DRAGON BALL

With a theme of “eating,” PAC-MAN

comics and animations have earned

was created in 1980 as a game thatthe support of customers around

could be enjoyed by all, without

the world for many years. The

regard to age or gender. Since then,Bandai Namco Group provides

in addition to game development,a wide range of DRAGON BALL

PAC-MAN has been used in characterproducts and services, such as

merchandising and has appeared inhome video games, network con-a variety of company commercials.

tent, card products, and figures.

Even today, it is popular aroundthe world. PAC-MAN is one of theinhouse IPs that is representativeof Bandai Namco.

Ultraman Series

KAMEN RIDER Series

PRETTY CURE! Series

BORUTO / NARUTO

E

E

E

E

I

A

Since its launch in 1966, Ultraman
has earned the support of a wide
range of age groups, extending to
two or even three generations. The
Bandai Namco Group provides
Ultraman products and services,such as toys and visual products.

A

A

A

The KAMEN RIDER series has been

The PRETTY CURE! series has beenThis IP was introduced in 1999, andpopular for more than 50 years andpopular for more than 15 years,

its comics and animations have

has earned the support of a wide

centered on children ages three tobeen popular around the world forrange of age groups around thesix. The Bandai Namco Groupmany years. The Bandai Namcoworld. The Bandai Namco Group

provides a wide range of PRETTY

Group is providing a wide range ofprovides various KAMEN RIDER

CURE! products and services,

products and services, centeredproducts and services, centeredcentered on toys.

on home video games andon toys.

network content.

Mobile Suit Gundam Series

Super Sentai Series

Love Live! Series

ONE PIECE

E

E

E

E

I

A

A

Since the launch of Mobile Suit

The Super Sentai series has main-

Gundam in 1979, Mobile Suit Gundam

tained its popularity with more than

products have earned support

45 products and has also earned

among a wide range of age groups.

support in Asia. The Bandai Namco

Centered on visual products, theseGroup provides a wide range ofinclude plastic models, home video

Super Sentai products and services,games, network content, andcentered on toys.

amusement machines. In addition to

I

AThis IP, which was created froma project linking magazines, visual
products, and music, was introduced in 2010. In addition to magazine pages and visual and music
packaged products, live events arehighly popular.

A

Launched in 1997, ONE PIECE
comics and animations have been
popular around the world for many
years. The Bandai Namco Group
provides a wide range of ONE PIECE
products and services, such ashome video games, network content, and figures.

Japan, Mobile Suit Gundam initiatives
are being rolled out around theworld, including Hollywood films.
Note: IPs are listed in the order of the Japanese syllabary

8

9

RISKS AND OPPORTUNITIESFOR THE BANDAI NAMCO GROUP

Major Groupwide Risks and Opportunities

10• Lower electricity costs due to energy-saving• Lower costs due to the introduction of efficient
production/transportation processes• Creation of new markets due to changes in customer
preferences• Disasters, such as natural disasters and accidents• Changes in political situation• Revision of laws, regulations, etc.
• Exchange rate fluctuations• Cyber-risks, such as cyberattacks on core systems, etc.

• Spreading Bandai Namco’s Purpose, enhancing brand value• Advancing main strategies in the Mid-term Plan
• Implementing initiatives for new business models, businesses, andplatforms• Strengthening collaboration among Units and cooperation withexternal partners• Establishing balanced IP, business, and regional portfolios• Strengthening quality control/inspection systems, strengthening
employee training and supply chain management• Strengthening development system with focus on quality• Implementing strategic investment• Appropriately utilizing and protecting IP, including the elimination ofcounterfeit products and services• Taking steps to achieve workplace environments that foster mutual
respect, including the introduction of systems and frameworks thatfacilitate active careers for diverse human resources• Bolstering sound financial position• Expanding global rollouts, implementing organizational restructuring

Opportunities

All businesses

Entertainment
Unit
Digital BusinessEntertainment
UnitToys and Hobby
Business

IP Production
Unit• Advancing initiatives for harmonious coexistence with thenatural environment• Advancing energy-saving measures; increasing efficiency measures• Using low-carbon energy, such as renewable energy• Advancing recycling• Introducing new technologies and materials; implementing
capital investment

Amusement
Unit• Promoting activities and implementing continued reevaluations
based on the BCP and BCM• Strengthening risk management system• Strengthening system for the collection and sharing of the latest
information about each business and region• Strengthening cybersecurity, such as collecting the latest informationand implementing regular verification• Advancing initiatives for harmonious coexistence with communities, withthe objective of forging connections with fans and local communities

Measures• Spreading/expanding network environment• Technological progress• Expansion of customer touchpoints throughdigitalization•U sing online measures to strengthen initiatives to enhance IP
recognition as well as global rollouts•A ggressively using new technologies•S trengthening digital initiatives, such as online eventsand e-commerce•P latform diversification•T echnological progress• L engthening development periods and increasing
investment amounts•A ggressively addressing new technologies and new platforms• Strengthening technical research• Strengthening development system with focus on quality
and increasing efficiency• Continuing communication with fans after title releases•T rend toward fewer children in Japan•O
 il price increases; strengthened regulations
regarding the trend away from the use of plastic•R ising distribution costs•C oncentration of production regions; quality control• Expanding target customer groups and regions• Reforming value chain in development and production• Promoting initiatives for recycling and initiatives to address the trend
away from the use of plastic, such as new material R&D• Dispersing manufacturing bases, strengthening quality control
system (continued reevaluation of quality standards, implementationof Code of Conduct (COC) audits, etc.)• I ntensification of competition in IP creation•D eveloping and securing human resourcesin production•C onsolidating studio and production functions•C ollecting know-how regarding visual products, music products,
and live events•E nhancing production environment, strengthening humanresources development• I nvesting to enhance production technologies•S trengthening collaboration with all partners inside and outside
the Company•D iversification of entertainment utilizing real venues•S trengthening collaboration with Group resources, such as IP,
products, and services•S trengthening stable business foundation

Risks• Managing hygiene thoroughly• Implementing initiatives in accordance with the requests of national
and local governments in each country/region• In accordance with the business continuity plan (BCP) and business
continuity management (BCM), collecting information, discussing
policies, and promoting awareness in the Group through periodic
meetings of the Crisis Management Committee, which is dedicated topreventing the spread of COVID-19• Strengthening the use of digital technologies products, services,and marketing• Implementing social support, such as through the contribution of
support funds and business-based measures• Introducing new working styles, enhancing environments
and systems

Risks and Opportunities

Risks• Higher raw materials costs as well as production andprocurement costs due to carbon regulations andplastic use regulations• Higher costs due to the introduction of newtechnologies, investment in R&D, or capital investment• Property damage, supply chain interruption, or
resource depletion due to natural disasters

Measures

Risks

Risks
Opportunities
Opportunities• Promoting collaboration among regions andbusinesses• Expanding potential for the creation of new markets,businesses, and IP

Major Risks and Opportunities in Each Business

Risks

Items
accompanying
other external
factors• Rapid changes in markets and customers;
technological progress• Dependence on specific IP• Increased investment related to IP creation/acquisition• Intensifying competition• Problems with quality, etc., in products and services
that utilize IP• Damage to IP value, such as IP infringement• Securing and developing the human resources whowill advance the IP axis strategy

Risks

Changesin the naturalenvironment,such asclimate change• Increase in digital demand, such as online events anduse of e-commerce• Enhancement of work–life balance through theintroduction of new working styles

Opportunities

Items
accompanying
the advancement of the IP
axis strategy• Influence on consumption due to retail store closures, etc.
• Event postponement/cancellation and accompanying
influence on promotions, etc.
• Influence on development, production, anddistribution of products and services• Influence on production and release schedules forvisual products• Influence resulting from amusement facility closureand reduced operating hours

Risks

Items
accompanying
the spread of
COVID-19

Risks

Risks and Opportunities

RISKS AND OPPORTUNITIESFor the Bandai Namco Group to record sustained growth over the medium to long term, we will need to reduce risks andmake the most of opportunities by responding rapidly to changes in the environment, identifying risks and opportunities
for the Group, and considering and implementing measures to address them. At top management meetings and various
committees, we are analyzing and sharing information about risks and opportunities and considering measures. In theseways, we will maintain an appropriate risk management system. In addition, we will strive to leverage new opportunities
arising from changes in the business environment and to implement a range of initiatives going forward.

11

FY2022.3

THE BANDAI NAMCO GROUP—

1 YEAR OF RESULTS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries
For the Fiscal Years Ended March 31

Overview
of Results

Operating Profit

889.2 billion

125.4 billion¥¥+20.0%YoY

YoY+48.2%

889.2
678.3

732.3 723.9 740.9
75.0

Net Sales(¥ billion)

29.7

20.5

Overseas
Sales Ratio
(%)

125.4

18.7
2018

2019

20.0
2020

11.1

11.5

(¥ billion)

78.7

84.6

14.1

10.9 11.4

Operating
Profit Margin

22.3

2021

Operating
Profit

84.0

2022

(%)

2018

2019

2020

2021

2022

In FY2022.3, results increased fromthe previous fiscal year, when eachbusiness was significantly influenced by the spreadof COVID-19. In each business, we rapidly advanced
various measures aligned with changes in customer
lifestyles and preferences. In addition, the Group’s
wide-ranging business portfolio generated results.
In the Digital Business, in addition to the favorable results of new home video game titles, repeat
sales of existing titles were strong throughout theyear. In the Toys and Hobby Business, favorable
results were registered by products for the mature
fan base, core IP products, toy-related items, andothers. The Visual and Music Business and theAmusement Business* achieved recoveries in theirresults due not only to the market recovery but also
to their front-line initiatives to address changes inthe business environment. In the Creation
Business*, we worked to produce new visual products, and licensing revenues increased.

Shareholders’ Equity Ratio

Cash Dividends per Share

67.7%

¥

212
YoY

394.1

Total
Shareholders’ 71.5
Equity

453.0

429.3

123*

72.5

69.7

67.7

Shareholders’Equity Ratio

Total Payout
Ratio

(%)

2019

2020

2021

(%)

2022

8.7%

Debt/Equity Ratio*2

Amusement

Others0.05 times

Others

3.0%

2.9%

0.3%

27.3

IP Production

8.5%

DigitalDigitalToys and
Hobby

Debt/Equity
Ratio*2(times)38.7%

Contributions to Net Salesby Geographic Region

9.3%

Asia, excluding Japan

9.2%

Return on Equity (ROE)

Return on Assets (ROA)

16.9%

16.7%



862.6

511.4
387.3

Americas

11.2%

Japan

70.3%

Note: Percentage figures are calculated based on
external sales. Figures are estimates based on
management accounting.

12

1.4
0.00

0.00

2018

2019

0.9

0.05

0.05

0.01
2020

2021

2022

429.6

13.1

(¥ billion)

16.9

10.2

Total Assets 14.7(¥ billion)

15.1

12.9

16.7

13.0

(%)
2021

2021

2022

2018

2019

2022

2019

2020

2021

2022

2021

2022

Number of Consolidated Employees

168 people

9,886 people

Ratio of Female Managers to
Total Managers*

Industrial Waste

21.5%

2,712 tNumber of Independent Directors

CO2 Emissions

5/14

52,016 t-CO

2

* Figures are totals for the five business management companies in FY2022.3.

Game Content R&D Investments andCapital Investments

Mobile Suit Gundam series
2021

2022

28.9 billion¥¥

95.0 billion¥¥

29.5 billion

101.7 billion

94.8

2022

2021

127.4 billion

¥

¥

¥

127.6 billion 8.6

2022

billion

80.4

16.8 billion¥

Game Content
R&D
Investments

54.8(¥ billion)

22.0

2021

2022

38.0 billion¥

44.1 billion

82.0

71.0

Ultraman series

2021

¥
2018

2020

Number of Female Managers*

2022

DRAGON BALL series

ROA

(%)

2020

2020

50.2

81.5

612.9 619.8

ROE
2019

2019

2021

ONE PIECE

201850.3 50.3

262.39222.58

732.7

454.6
540.4

14.7 15.5

50.3

Sales of IP* Products and Services (Group Total)
KAMEN RIDER series

584.2

Total Net
Assets6.1*1 From FY2020.3, certain overseas consolidated subsidiaries
applied IFRS 16 “Leases.”
Increase in long-term borrowings in FY2021.
*2 Debt/bequity ratio = Interest-bearing debt / Total shareholders’ equity

Note: Percentage figures are calculated based on sales before elimination of intersegment transactions.
Calculated on the basis of FY2023.3 segment classifications

Europe29.3(¥ billion)

Toys and
Hobby

39.7%

246.29(For detailed data, please refer to FACT BOOK 2022, a separate publication.)Interest-Bearing Debt*1

51.5%

40.2%

288.40

132

ESG

6.5%

IP Production

422.09* FY2018.3 includes a special dividend of ¥25.

Segment Profit Ratio

Amusement

2018

¥

(Yen)

112

Cash
Dividends per 49.9
Share (Yen)+199.51

YoY
212* From FY2023.3, the Visual and Music Business and theCreation Business have been combined to establish the IP
Production Business.

Segment Sales Ratio

+100

472.8

(¥ billion)

2018

422.09

¥

145
70.0

Basic Earnings per Share

¥

542.5

1 YEAR OF RESULTS

Net Sales

27.3

22.7

27.9

CapitalInvestments(¥ billion)

2018

2019

2020

2021

2022

* IP: Characters and other intellectual property

13

DIRECTORS, BANDAI NAMCO HOLDINGSAs of June 20, 2022

DIRECTORS, BANDAI NAMCO HOLDINGS

14

MasaruKawaguchi

Yuji
Asako

Nobuhiko
Momoi

Yasuo
Miyakawa

Kazuhiro
Takenaka

MakotoAsanuma

HiroshiKawasaki

Shuji
Ohtsu

KoichiKawanaToshioShimadaMasataka
NagaikeToru
ShinodaSatokoKuwabara

Takayuki
KomiyaPresident andRepresentative
Director
Group CEO

Director

Director

Director (Part-time)

Director (Part-time)

Director (Part-time)

Director (Part-time)

Director (Part-time)

Director(Part-time, Outside)

Director(Part-time, Outside)

Director
Audit & Supervisory
Committee Member

Director
Audit & Supervisory
Committee Member(Outside)

Director
Audit & Supervisory
Committee Member(Part-time, Outside)

Director
Audit & Supervisory
Committee Member(Part-time, Outside)

President andRepresentative Director ofBandai Namco
Entertainment Inc.

President andRepresentative Directorof BANDAI CO., LTD.

President andRepresentative Directorof Bandai Namco
Filmworks Inc.

President andRepresentative Directorof Bandai Namco
Amusement Inc.

President andRepresentative Director ofBandai Namco Business
Arc Inc.

15

PRESIDENT’S MESSAGE

also advance the creation of open venues for connections

were strong throughout the year. In the fourth quarter, ELDEN

among fans and partners.

RING became a global hit. In the Toys and Hobby Business,

President and Representative Director
Group CEO
Bandai Namco Holdings Inc.

PRESIDENT’SMESSAGE
Evaluation of results

New record highs for both sales and profits

and leveraging Bandai Namco’s distinctive strengths. We will

video games sales of new titles and repeat sales of existing titles



the Gundam Metaverse. Gundam is an in-house IP, and therefore it

mature fan base, core IP products, and toy-related items. The

is an IP that we can control. It is also an IP that extends to all busi-

Visual and Music Business and the Amusement Business, which

nesses and regions. First, we will work to make the Gundam

were significantly affected by the spread of COVID-19 in FY2021.3,

Metaverse a solid success, and then, based on those results, we willachieved recoveries in their results. The Amusement Businessconsider creating metaverses for other IP in the future.

realized a return to profitability due to increased efficiency andIn the past, fan data has been dispersed in each businessstructural reform initiatives. In the Creation Business, we worked

category. Going forward, we will advance the Data Universe

to produce new visual products, including products in the Mobile

concept, under which this data will be collected under shared

Suit Gundam series, and licensing revenues increased.

Group accounts (Bandai Namco IDs). Through coordination of

For the Group as a whole, in the past year we made solid

the front-yard metaverse and the back-yard Data Universe, we

progress with results and with various foundation strengthening

will be able to implement a variety of measures that will contrib-

measures as we prepared for the start of the new Mid-term Plan.

ute to enhancing fan satisfaction. In these ways, we will promote
the IP Metaverse concept.

Starting the Mid-term Plan with a focus on­realizing the Purpose

IP axis strategy: IP×Value (Enhancing IP value)

In April 2022, we started the Mid-term Plan, with a focus on

Mid-term Plan, while further enhancing those individual com-realizing the Purpose. The key phrase is “connecting and work-pany strengths, we will further deepen Group collaboration anding together to create things.” Our Mid-term Vision is “Connect

work together under the ALL BANDAI NAMCO concept. In thiswith Fans,” and on that basis we will aim to forge deeper con-way, we will aim to evolve into a globally competitive group.

In the past, each individual business company leveraged its
strengths, leading to growth for the Group. Under the current

nections with existing fans and broader connections with newFirst, we have redefined the positioning of the IP axis strategy.

fans. From a range of perspectives, we will enhance the quality

Rather than simply “growing individual businesses through theof connections and strive to foster more multifaceted connec-

use of IP,” we will aim to “maximize the value of IP itself” fromtions, such as connections between one fan and multiple IPs,a longer-term perspective. Going forward, this IP value maximi-

and connections with communities of fans. In other words, wezation might result in issues that have a higher priority thanwill focus on the quality of connections.

business maximization.

As numerical targets for the fiscal year ending March 31, 2025,

In regard to the content outlet strategy, we will aggressively

In FY2022.3, the market recovered and our frontline employees

which will be the final year of the Mid-term Plan, the Company

advance collaboration with external partners as we target IP value

responded rapidly to the changes in the environment. As a result

is aiming for net sales of ¥1,100 billion, operating profit ofmaximization. We will not close ourselves off within the Group.

of their hard work, we achieved record-high net sales and operat-¥125 billion, and ROE of 12% or more. For FY2023.3, the first yea ofRather, by opening up the outside perspective in business, we willing profit, with net sales of ¥889.2 billion and operating profit of

the plan, we are aiming for net sales of ¥880 billion and operating

increase IP value and pursue a more aggressive growth strategy.

¥125.4 billion. Looking at profitability, the operating profit margin

profit of ¥100 billion. Operating profit of ¥100 billion has been

increased to 14.1%, and ROE rose to 16.9%. These are levels

a major target for us since the management integration of BANDAI

higher than what we recorded prior to the spread of COVID-19. To

CO., LTD., and NAMCO LIMITED in 2005. There are uncertain ele-

respond to the dramatic changes in markets and customer life-

ments, such as market changes and the presence or absence ofstyles, we delayed the start of the Mid-term Plan, which had been

hit products. However, going forward we will continue to strongly

scheduled for April 2021, by one year. We positioned FY2022.3 as

focus on the achievement of operating profit of ¥100 billion.

a period for thoroughly reinforcing our foundation. Over that
period, we repeatedly discussed and considered a variety of

Next, I will provide an overview of our main strategies.

Mid-term Plan with a focus 10 years into the future. Another major

IP axis strategy: IP×Fan(Connecting with fans through IP)

factor contributing to our favorable results in FY2022.3 was

As a new framework for connecting with fans, we will roll out theaggressive action on the front lines, with an emphasis on where

IP Metaverse, a virtual space that is close to fans. Through thewe want to be in the mid-term.

metaverse, we will provide a wide range of entertainment, such

issues, and I think that we were able to formulate a substantial

By business, the Entertainment Unit’s Digital Business andToys and Hobby Business worked hard together, and both16

As the first initiative, we are currently focusing on the creation of

results were led by favorable performances by products for the

PRESIDENT’S MESSAGE

Under the ALL BANDAI NAMCO concept,
we will work to foster wide
recognition of the meaning ofBandai Namco’s
Masaru Kawaguchi
existence for society.

achieved record-high results. In the Digital Business, in homeas games, toys, anime, e-sports, and events. In addition, we arealso planning initiatives fusing digital and physical elements

17

PRESIDENT’S MESSAGE

region, we will accelerate initiatives targeting growth, such as

repeated discussions from a wide range of viewpoints in variety

a major strength in its ability to connect with fans in digital andexpanding IP and categories, further strengthening collaborationof venues, including top management meetings, and advancephysical business fields. To fully leverage this strength, we willamong businesses, and rolling out products based on local IP.

initiatives that leverage Bandai Namco’s distinctive strengths.

The Group, which has a wide range of business fields, has

implement strategic investment and establish an IP platform
perspective that leverages our distinctive strengths. As one part ofthose measures, in April 2022 we integrated the IP Production

Through these initiatives, we will strive to increase our overseas
sales ratio to 35% in FY2025.3 and to 50% as rapidly as possible.

In June 2022, we transitioned from a company with an Audit &know-how and human resources of both businesses will further

In advancing the new Mid-term Plan, we will need diverse humanSupervisory Board to a company with an Audit & Supervisory

strengthen IP creation, which is the core of the IP axis strategy.

resources, such as marketing personnel, creators, and engineers

Committee. We took this step in order to strengthen governance

who will advance the IP axis strategy, and personnel in administra-and further enhance management transparency. In addition,

tive units who will advance management strategies and businessin order to further increase corporate value through speedy

strategies. We will not simply nurture internal employees; we will

decision-making and business execution, we delegated certain

also step up mid-career hiring and external collaboration initiatives.

authorities related to business execution to the Full-TimeIn this way, we will realize a balanced, optimal workforce.

Officers Committee. Unlike the previous Audit & Supervisory

Entertainment Unit
Digital Business
Toys and Hobby Business

IP Production Unit
Visual and Music Business
Creation Business

Integration

Amusement Unit
Affiliated Business Companies

The Bandai Namco Group uses the phrase “same spirit,

Board members, under the new organizational structure the

The Group has grown through the cumulative effects of thediverse talents.” We have inherited a culture that welcomes

directors who are Audit & Supervisory Committee members

strategies of individual companies. However, in advancing thedifferent personalities, talents, and values; encourages people

have voting rights at meetings of the Board of Directors. In

current Mid-term Plan, for the metaverse, the Data Universe,

to take on individual challenges; and tolerates forward-looking

addition, we increased the number of outside directors to fiveglobal strategy, etc., we have encountered problems and issues

failures. I myself failed multiple times in my career. In our indus-

out of the total of 14, and the composition of the Board ofthat need to be addressed but cannot be handled at the indi-try, if we fear differences among people, or failure, then we will

Directors now reflects an enhanced focus an external viewpoint.

vidual level. We will delegate authority to the front lines, but on

Our outside directors, who have high levels of expertise andthe other hand these difficult issues require strong leadership to

not be able to create anything.
From April 2022

make final decisions and move things forward.

This approach is also applicable to the promotion of diversity

insight, include corporate managers with extensive knowledge andand inclusion. For example, the ratio of female managers is moreexperience, an attorney, and individuals with such qualifications asthan 20% at major business companies in the Group.

certified public accountant and certified public tax accountant. In

position of Group CEO was added to my responsibilities,

IP Production Unit

I think that the ideal circumstances would involve a natural

daily management, we have to consider a wide range of factors

clarifying my role in leading cooperation among the businessincrease in the number of female managers as the Company

and risks. These are checked carefully from an outside perspective,

companies. Going forward, Bandai Namco Holdings will need toAmusement Unit

promotes work environments that support women’s careers.

and as a result I believe that this is linked to enhanced objectivity

build a solid management foundation as a pure holding com-

And, as a matter of fact, that is what is happening now. In addi-

and transparency in management decision-making.

pany, and to fulfill its responsibility to play a central leadershipEntertainment Unit
Digital Business
Toys and Hobby Business

Affiliated Business Companies

IP axis strategy: IP×World(Connecting the world through IP)

tion, accompanying the Group’s overseas development, we arealso actively promoting local employees. Promoting people withdiverse values will be indispensable for the promotion of ourbusinesses. Accordingly, we will accelerate the creation of envi-

In overseas business development, we have implemented

ronments in which diverse people can have active careers, andorganizational restructuring and base consolidation initiatives.

we will promote and nurture appropriate personnel. In these

As a result, in each key area our operations are now in a single

ways, we will accelerate the growth of the Group’s businesses.

location. Based on this system, under the current Mid-term Plan
we will further accelerate collaboration among businesses inaccordance with the ALL BANDAI NAMCO concept.
One important, ongoing theme will be taking steps to strengthen

Sustainability
Connecting to a smile into the future
Sustainability is an important management issue, and in the

TRANSITION TO A COMPANY WITH AN AUDIT &SUPERVISORY COMMITTEE IN ORDER TO
STRENGTHEN GOVERNANCE
Board of Directors

Delegation ofcertain authority

Up to March 2022

PRESIDENT’S MESSAGE

ing them into the IP Production Business. The consolidation of the

REORGANIZATION OF THE IP PRODUCTION UNIT

18

Further strengthening governance

Personnel strategy
Developing diverse human resources

Unit’s Visual and Music Business and Creation Business, combin-

Audit & Supervisory Committee
Directors who are Audit & Supervisory Committee members(Majority are outside, three or more)

With consideration for these circumstances, in April 2022 therole in advancing the Group’s overall strategies. The current
Mid-term Plan will be the litmus test for those initiatives. I
strongly believe that our results will depend on how I do my job,
and the title of Group CEO incorporates my determination inthis regard.
The Group achieved record-high results in FY2022.3.
Nonetheless, we will not be satisfied with this performance. We
will strive to ensure that we earn a widely recognized reputation
as an entertainment company that always aggressively takes on

Full-Time Officers Committee

Newly established in April 2022

challenges. We will aim to continually address the needs of stakeholders, including IP fans and partners around the world; forge

business development initiatives that position North America andcurrent Mid-term Plan we listed sustainability as our main

deep, broad, multifaceted connections; and realize further strong

China as key markets. In FY2022.3, we recorded strong sales growth­strategy for the first time. We will advance a detailed action plan

growth on the global stage. I would like to ask for the continued

in both North America and China. In North America, we combined

based on the Sustainability Policy and five material issues

the company handling the Toys and Hobby Business for the maturealigned with the policy, which were established in April 2021.

Accelerating reform under strong leadershipfan base and the company handling the Toys and Hobby BusinessIn addition, in April 2022 we reorganized the Group CSR

It has been more than one year since I became president, but

for mass market retailers. We also consolidated these businesses

Committee as the Group Sustainability Committee, and thisthe time has gone by very quickly. I fully realize how my respon-and the Digital Business into one office. In China, we implemented

committee, which used to be under the president, is now

sibilities are different from when I was vice president or when I

a company combination for the Digital Business and the Toys anddirectly under the Board of Directors. Furthermore, looking at

was a business company president. I have tried to incorporate

Hobby Business. We have also taken this step in Europe, moving

directors’ remuneration, for variable remuneration we added

into the Mid-term Plan the awareness of issues that I have devel-

the Digital Business and the Toys and Hobby Business into a single

an evaluation of sustainability, in addition to the degree of

oped since taking this position. On that basis, I will now strive tooffice. Going forward, with these systems as the foundation in eachcompletion of numerical targets. Going forward, we will holdachieve tangible results over three years.

support of our stakeholders as we take on those challenges.


September 2022

19

CFO/CISO’S MESSAGE

Director
CFO (Chief Financial Officer)
CISO (Chief Information Security Officer)
Bandai Namco Holdings Inc.

Achieving Operating Profit of ¥100 Billion

information security, and (3) reinspecting the initial response

will aim to expand profits through business growth. Our approach tomanual. Looking at the second of these, in April 2022 we estab-the cost of capital is also reflected in our shareholder return policy,

lished the Sustainability Management Department in thewhich is mentioned in a subsequent section of the report.

Corporate Planning Division of the holding company. This depart-In regard to cross-shareholdings, every period the Board ofment includes a specialized information security unit. In addition

Directors carefully considers the appropriateness and effects of theseto information security, the Sustainability Management

holdings. At the end of FY2021.3, our cross-shareholdings were 15.8%

Department will also advance sustainability initiatives.

of consolidated net assets, down from 19.8% at the end of FY2021.3.



Please refer to the section on sustainability initiatives, starting on page 58

On the other hand, on a strategic, limited basis, we continue to holdshares that are necessary for advancing the IP axis strategy.
In regard to shareholder return, our basic policy calls for a focus
on the maintenance of stable dividends over the long term and on
the cost of capital, targeting a total return ratio of 50% or more based

Contributing to the Creation of Environments
That Enable Employees to Take On Challenges

on stable dividend payments of 2% of DOE (dividends on equity).

In the world of entertainment, it is necessary to continually provide

Based on this policy, we set the annual dividend for FY2022.3 at ¥212

future-focused products and services. For companies to achieve

per share (base dividend of ¥48, performance-based dividend ofsustainable growth, it is important to create environments in which¥164), for a total payout ratio of 50.2%. The return continues to be

front-line employees have the freedom to take action in an open andcentered on dividends, but with comprehensive consideration forenthusiastic manner, and in which people can always take on chal-extends over a longer term of five to 10 years and has effects that

our stock price, cash on hand, etc., we will continue to consider thelenges. Going forward, I will work to support those initiatives from theextend throughout the Group. Accordingly, this type of investment

acquisition of our own shares as one of our options.

perspectives of both finance and security, and to live up to the trustof our shareholders through growth in our corporate value.

is led by the holding company.
In FY2022.3, Bandai Namco achieved record-high results, led by

In the current Mid-term Plan, this strategic investment was

the Digital Business and the Toys and Hobby Business. In theincreased to a cumulative three-year total of ¥40 billion. This includes

Digital Business, home video games registered favorable results¥25 billion to maximize IP value, such as new IP creation, IP projects,

with new titles, such as ELDEN RING, and with repeat sales ofand open innovation, and ¥15 billion for IP Metaverse-related initia-

existing titles. In the Toys and Hobby Business, products for thetives. The IP Metaverse will be a structure for rolling out various

mature fan base recorded a strong performance. In addition,

metaverse projects on a foundation of the Data Universe concept,

despite the adverse influence of COVID-19, we saw a recovery inunder which customer data is collected and utilized. Data Universe

the live event business and the amusement facility business,development funding accounts for more than half of strategic

which had been significantly affected by COVID-19 in FY2021.3.

­investment, and development investment (ordinary investment) for

For the Group as a whole, our rapid response to change and ourvarious ­metaverse-related services will be led by each business.

CFO/CISO’S MESSAGE

From the perspectives of both finance andsecurity, we will aim toenhance corporate value and to create
Yuji Asako
environments that enable
employees to take on challenges.

regard to ROE, rather than aiming to decrease the denominator, we

212

Cash Dividends per Share andTotal Payout Ratio
145
123*
Cash Dividends per
Share
(Yen)

Total Payout Ratio
(%)

132
112

49.9

50.3

50.3

50.3

2018

2019

2020

2021

50.2

2022

For the fiscal years ended March 31* FY2018.3 includes a special dividend of ¥25.

broad business portfolio proved to be effective.
At the time of the management integration in 2005, the Groupannounced a medium- to long-term target of operating profit of¥100 billion. We have encountered some twists and turns up to
this point, but we were able to reach this target in the end. We

Strengthening Information Security Measuresfrom Tangible and Intangible Perspectives

consider this achievement to be a major step forward. In the

People are the Group’s greatest management resource, and

future, if we can maintain this level of performance, I think thatmaintaining the workforce is an important management issue.

Strengthening information security measures is a key to thewe will see a variety of favorable results, such as the enhance-

We would like to secure one year of labor costs (approximately

realization of the Data Universe concept. For some time, we havement of motivation among employees and the promotion of¥80 billion). In addition, for stable operational administration,

implemented network equipment vulnerability countermeasures,

collaboration with external partners.

including our cooperating partners, one to one-and-a-halfmeasures to strengthen post-event response on the assumption ofmonths of working capital (approximately ¥100 billion) will bemalware intrusions, and 24-hour monitoring through a security

necessary. Furthermore, an important principle of our financial

operations center. Nonetheless, in July 2022 we experienced an

strategy is to always have cash on hand for flexible implementa-

unauthorized access to Group companies in Asian regions (exclud-tion of necessary investment, such as funds for the strategic

ing Japan). We are already working in cooperation with an external

investment in the Mid-term Plan.

organization to further strengthen security throughout the Group

Investment Strategy in the Current Mid-term Plan
The Group operates a wide range of businesses, and the business

20

Balance Between Financial Soundness andCapital Efficiency

companies have handled the majority of investment activities

On the other hand, as a measure reflecting awareness of the cost

and take measures to prevent a recurrence. Going forward, we will(ordinary investment). The reason is that the earnings structure,of capital, we have used ROE in the Mid-term Plan, and in the current

continue to focus on implementing strengthening measures while

investment scale, and investment recovery cycle differ by busi-

Mid-term Plan we increased the target to 12% or more. In regard toalways incorporating the latest information.

ness field, and centralized management is not appropriate. On

financial soundness and capital efficiency, we do not believe thatAs Groupwide initiatives, we will advance such measures as

the other hand, strategic investment to accelerate evolution in

there is a need to make a choice between one or the other. Rather,(1) enhancing the literacy of employees through computer security

the IP axis strategy, which is of vital importance for the Group,

we will work to achieve the optimal balance between the two. In

training, (2) enhancing the functionality of units that deal with

CFO/CISO’SMESSAGE
21

ROUNDTABLE DISCUSSION AMONG OUTSIDE DIRECTORSD I A LO G U EROUNDTABLE DISCUSSION AMONG OUTSIDE DIRECTORS

We will strive to support thesustainable growth of the Groupby strengthening the monitoring
function and maintaining
sound management.

In FY2022.3, the Bandai Namco Group reached a turning point toward further
strong growth. We started the Mid-term Plan in accordance with the Purpose.
In addition, we made a transition to a company with an Audit & Supervisory
Committee in order to strengthen corporate governance. In this way, we
implemented a new management system.
Five outside directors, who have an important role in governance, met ina roundtable format to freely discuss a wide range of topics.

KoichiKawanaToshioShimadaToru
ShinodaSatokoKuwabara

Takayuki
KomiyaOutside Director

Outside Director

Outside Director
Audit & Supervisory
Committee Member

Outside Director
Audit & Supervisory
Committee Member

Outside Director
Audit & Supervisory
Committee MemberFrom a company with an Audit &Supervisory Board to a company with
an Audit & Supervisory CommitteeCommittee members and the directors

Committee. These employees also work

period, in order to support growth in

who are not Audit & Supervisoryconcurrently at the Internal Auditing

corporate value, I principally worked toCommittee members, I will strive to con-Division. This system facilitates thecontribute to defensive governance,

tribute to the reinforcement of the Board

advancement of stronger monitoring as

based on my knowledge and experience

monitoring function.

a result of strengthened collaboration
between audits by the Audit & Supervisory

as an attorney in the area of corporate
legal affairs. Having been appointed as an
Audit & Supervisory Committee member,

ShinodaWhile drawing on my knowledge

Committee and internal audits.

as a CPA, I have been a full-time,

I have reconfirmed my responsibilities

outside Audit & Supervisory Committee

regarding my own role.

member since 2018. The Company’s sales

With the Group recording significant

are now about 1.3 times the level in FY2018.3,

FY2022.3:
Evaluation and future issues
and the Company will be required towith us to enhance governance. In addi-

growth in global markets, I believe thatand operating profit is about 1.7 times. I haveboth record business growth and further

tion, in conjunction with the transition,

the shift to a company with an Audit &worked on auditing matters with a constantstrengthen governance. With consider-

the topics discussed at Board meetings

Supervisory Committee, which enables

awareness of whether the Group’s gover-ation for these circumstances, thehave been organized, and certain Board

the reinforcement of the monitoring

nance is appropriate for this business scale.

at Bandai Namco Amusement Inc. for four

KomiyaI served as an Audit &Supervisory Committee member

Company decided to transition toauthority has been delegated to the newly

function, was the correct decision. My

Going forward, based on my experience notterms, or 16 years. As a CPA and certified

It has been three years since Ia ­company with an Audit & Supervisory

established Full-Time Officers Committee.

role changed from an outside director atonly in accounting and finance but also in

public tax accountant, I was involved withbecame an outside director ofCommittee. Directors who are Audit &In this way, I expect that the speed of

a company with an Audit & Supervisory

such areas as internal control and auditing ofsuch matters as settlement-related work,

the Company, and over that period theSupervisory Committee members havedecision-making and business execution

Board to an Audit & Supervisory

overseas corporations, I will strive to contrib-

corporate revitalization, M&A, and corpo-

Group has recorded notable growth andthe right to vote at meetings of the Board

will be further increased.

Committee Member. Accordingly,

ute to discussions at meetings of the Board

rate evaluation. That company faced

development. In April 2022, Bandai

of Directors. The audit and supervisory

approaching this as an opportunity, andof Directors.

a challenging period due to COVID-19,

Namco transitioned to the TSE Prime

functions have been strengthened, andMarket under the market reorganization,

our fellow directors will work closely

Kawana22

years as an outside director. Over that

Kuwabara

I became an Audit & Supervisory

working to foster cooperation among the

In auditing, the Company has assigned

but on the other hand, there were also

Committee member after six

directors who are Audit & Supervisory

employees to assist the Audit & Supervisorybusiness companies with favorable

23

ROUNDTABLE DISCUSSION AMONG OUTSIDE DIRECTORS

results, and during the past year I recon-

not become a bottleneck for growth. In

the hard work of the executive directors

a strong message about aiming to grow as

firmed how well balanced the Group isregard to monitoring human capital, one

and the front-line employees. I think thata Group by not only focusing on connec-

overall, even though individual compa-

issue will be the establishment of moni-collaboration within the Group in order totions with fans through products andnies might be facing different conditions.

toring indicators that can be referred toleverage the Group’s wide-ranging busi-

services but also working internally towhen evaluating the current circum-

ness portfolio is steadily deepening. One

further strengthen collaboration among

In FY2022.3, the Group achieved

stances. I think that it will be necessary to

noteworthy point is how the Group hasvarious departments.

record-high consolidated results,

deepen discussions about the issues ofsteadily addressed issues by advancing

despite the influence of COVID-19. This iswhether resources are currently sufficientcollaboration among businesses andlikely the result of how the Group firmly

and the situation regarding targets forreorganization initiatives in accordanceallocated management resources to

10 years into the future, based on measur-with the IP axis strategy.

growth fields while rapidly implementing

able indicators for each evaluation item.

Kawanagoing forward will be the extent to which
the Group establishes and develops
this trend.

ShinodaI have the impression that theGroup’s business portfolio has

expanded considerably. On the other
hand, in addition to steady development

The Purpose was created with
the involvement of the entire

Group, including the outside directors.
This became an excellent opportunity to
The Purpose incorporates the spiritof Bandai Namco

redefine and focus attention on the mean-

In the recent formulation of theconsideration for the characteristics of the

Purpose, repeated, fundamental

languages, the detailed expressions are

Kawanaing of Bandai Namco’s existence. It was
prepared in two languages—a Japaneseversion and an English version—and with

It has been a year since I becameof established IP, the creation of new IP

an outside director, and over

could be considered to be an issue. Also,

discussions were held regarding thedifferent in the two versions. The essentialthat period I have been very satisfied within FY2022.3, ELDEN RING was a worldwide

meaning of the Group’s existence formeaning has been solidly incorporated

advance. We were able to confirm thattaken a serious approach to the imple-

the operating results. I would like to see

hit, but in general there is room for growthsociety. The conclusion was that the

into both versions. I think that this reflects

the executives did a solid job withmentation of initiatives. Nonetheless,the executives continue to accelerate

in the area of overseas rollouts. I thinkmeaning of the Bandai Namco Group’s

Bandai Namco’s approach, with prioritythat process.

in July 2022 the Group experienced

initiatives as they move forward. However,that there is a need for further initiatives

existence is to make people happy, andgiven to solidly deepening the under-

this is a period in which results are favor-

targeting globalization, including in regard

the Purpose expressed that meaning. We

standing of overseas employees, without

exist. It is necessary to implement

The Company has already begun to work

able, and there are also matters that needto governance.

were also able to provide a variety ofinsisting on a direct translation.

­information-gathering measures so thatout measures to bolster security andinformation can be acquired as rapidly as

prevent a recurrence. Information security

When the formulation of thepossible and necessary measures can be

is a never-ending task, and there is no

Purpose was discussed, I was at

implemented. Moreover, in expanding

such thing as perfect security. On thata business company. When I saw the new

business operations on a global basis,

basis, I will work to implement firm

Shimadato be discussed precisely for that reason.
For example, thinking about the business
10 years or 20 years into the future,

opinions regarding draft versions. I think
Kuwabara

The Group achieved thesethat the words of the completed Purpose

results even though it also has

go beyond just form to include the spirit

a major topic will be how to expand thebusiness formats that were adversely

workforce so that human resources doaffected by COVID-19. This is a result ofof Bandai Namco.

ShimadaKomiyaan unauthorized access from a third party.

logo, I felt that the Group was progressing to

one also has to carefully take into account­monitoring from the position of ana new stage. I think that giving concrete

potential risks in regard to such factors as­outside director.

employees with the comprehen-shape to a new concept sends a strong

religion, ethics, and education in products

message both inside and outside the Group.

and services. It is important to create

I think that the Purpose itself expresses
the true nature of Bandai Namco. Goingforward, the Purpose will be steadily
spread and connected to daily activities.
The Group is also planning to investigate
the extent to which the Purpose haspermeated the workforce, and I think that

“The meaning of the Bandai Namco Group’s
existence is to make people happy. I think thatthe words of the completed Purpose go beyond
just form to include the spirit of Bandai Namco.”

Nonetheless, unexpected risks always

The Purpose was created bysive strength of the Group. Accordingly,

24

ROUNDTABLE DISCUSSION AMONG OUTSIDE DIRECTORS

necessary measures. One important issue

Kuwabara“When I saw the new logo, I felt that
the Group was progressing to a newstage. I think that giving concrete
shape to a new concept sends a strong
message both inside and outside
the Group.”

frameworks that make it possible to
Risk management in
the Mid-term Plan
KawanaIn the formulation of the Midterm Plan, the one-year delay in

ShinodaLooking at the personnel strategy in the Mid-term Plan, there

prevent problems from arising, while

are three types of human resources:

paying careful attention to differences inmarketing personnel, creators and engi-

regions and cultures.

neers, and personnel in administrative
units. In expanding business overseas, inShimadaIt is not clear how the metaverse

particular, I would like to see the Groupwill grow as social infrastructure

do a good job in securing and nurturing

the monitoring of that progress should

the start of the plan facilitated deeper

in the future. In this market environment,

administrative personnel, who will

include measures to ensure that employ-

discussions about the quality of connec-

it will likely be necessary for Bandai

support the overseas regional headquar-ees do not develop the attitude that “thetions, maximizing IP value, the metaverse,

Namco to decide on its core approach toters functions.

Purpose is the Purpose, but the numbers

and the best approach to investment. In

the metaverse as a Group. As one facet of

are the numbers.”

addition, appropriate, repeated discus-that process, it might become necessary

management, I am also emphasizing

In addition, from the perspective of risk

sions were held about overseas businessto build, on a daily basis, venues formeasures to address the progress of digital

The key phrase in the Purpose

risk. In addressing risk, it is important to­discussions with fans about the best

technologies. In addressing that progress,—connecting and working

identify distinctive risks for each businessapproach to wholesome Internet spaces.

business growth cannot be expected if

together to create things—emphasizes

in line with importance classifications, toIn addressing digitalization, infor­mation

development and production expenses inrelationships among various people

grasp their impact, and to move ahead

security issues are also important. Looking

the game and visual product fields are notaround the world. I think that this iswith countermeasure preparations inat security measures, Bandai Namco has

incurred. On the other hand, if wrong

Shinoda25

ROUNDTABLE DISCUSSION AMONG OUTSIDE DIRECTORS

director was appointed at Bandai Namco

forward to seeing women from within theEntertainment, a business management

Group be appointed as officers at the hold-company. This person is concurrently

ing company.

working as CEO at Bandai Namco Europe

To increase opportunities for active

S.A.S., an operating holding company incareers for women, it will be necessary toEurope. The Personnel Committee con-abandon the fixed idea that life events areducted an interview online. I hope thatthe responsibility of women and to havethis appointment of a non-Japanese

men and women work together on han-director fosters a shared understanding ofdling life events. For companies too, there

what is needed in order to support active

will be a need for working styles thatcareers for non-Japanese personnel, andfacilitate support for these initiatives. In

I would like to see it lead to further diver-response to the spread of COVID-19, thesity within the Group.

Group aggressively implemented measures to support new working styles, suchas promoting remote work within theGroup. I think that these initiatives aredecisions are made, then it is possible that

conducting rapid improvement, such as

an important step forward in the promo-

the only thing that remains will be substan-

implementing detailed reports by region.

tion of diverse working styles.

tial expenses. Moving forward, I would like

However, with consideration for theto continue to pay close attention to

rapidly changing social environment,

expenses, including the share of assets

it will likely be necessary to further

accounted for by work in process.

strengthen overseas risk monitoring.

Kuwabara

There were thorough, repeateddiscussions regarding the

KawanaKawanaabout such matters as future directions
and initiatives, based on a shared under-

ShinodaTo meet our responsibilities tosociety in regard to carbon, I

standing regarding sustainability. In

would like to see everyone strive to makeIn the evaluation of the effective-

response to these issues, from FY2023.3

steady progress toward the announced

ness of the Board of Directors

the Vision Meeting has been establishedtargets. At the same time, the Group alsothat was conducted in FY2022.3, theas a meeting in which all officers

needs to actively advance steady initia-

In regard to diversity, the pro-Independent Directors Committee

participate. The participants discuss whattives linked to operations that leveragemoting of non-Japaneseoffered two opinions. The first was that

the Group aims to be in 10 years andthe Group’s distinctive strengths, such as

employees is also important. For Bandai

there is a need to strengthen discussions

other matters.

the Gunpla Recycling Project, which is

KawanaNamco to grow as a global enterprise, itfrom an overall optimization viewpoint in

One major risk is a situation

will be important to have local employees

regard to the direction that the entire

where “you don’t know what

leading business from local regions. For

Group needs to take. The second was that

implemented with the cooperation
Kuwabara

It was decided to add sustain-of fans. 

See page 62 for further information

ability to the evaluation items fornumerical targets in the Mid-term Plan. In

you don’t know.” Based on the assump-that reason as well, it will be necessary toin order for the Group to fulfill its respon-

directors (excluding outside directors and

FY2022.3, ELDEN RING was a major hit,tion that there are areas that we do notdevelop non-Japanese employees and tosibility in regard to the realization of adirectors who are Audit & Supervisory

and the Group was able to achieve oper-

know much about, it is necessary toenhance the work environment. In

sustainable society, there is a need for theCommittee members) from FY2023.3. It

framework for directors, including theating profit of ¥125.4 billion. What will befocus on those areas in some way. To thatFY2022.3, for the first time, a non-Japanese

Board of Directors to conduct discussions

was thought that incorporating this into

sustainability evaluation. With the Group

important is achieving the ¥100 billion

end, connections with diverse people

evaluations would be a strong message

reaching a turning point toward dramaticlevel in a stable, ongoing manner. As

with differing genders, nationalities, andfor both directors and employees about

growth, it was thought that this would be

operating profit targets that can beages are important. That is because ifearnestly addressing sustainability, and it

a suitable incentive for a stage of newachieved in a stable manner, the targeta group of people all have similar back-was recommended by the Personnel

challenges. The setting of the remunera-

was ¥50 billion two plans ago, and ¥60

grounds, their view of the world will

Committee. The detailed evaluation

tion standards also took into account thebillion in the previous plan. The fact thatnaturally be limited.

method will be determined going forward.

employment of human resources for

It will be important to enhance

expanding global business. The outside

Groupwide awareness about sustainabil-

directors will do their utmost to provide

ity by making the process transparent andsupport so that talented people from

communicating information.

around the world can join Bandai Namco

the Group has been able to achieve thismuch of an increase is a major accomplishment. However, going forward it will
be necessary to continue to steadily
reinforce the business foundation.
In regard to risk management, there are
two important points—advance expectation and preparation, and rapid response26


Sustainability and governanceCreating environments in whichpeople can work actively without
regard to gender and nationality

Kuwabara

Currently, there is one female
officer at the holding company,in the event that something happens.

which is me. However, the Group has

Looking at the former, the Independent

continued to develop female executive

Directors Committee has provided thecandidates, and accordingly the number of

opinion that understanding overseas risks

female officers is steadily increasing in theis an issue. In response to this opinion,business companies, including women who

the Group Business Report Meeting ishave been appointed as president. A little“In addition, from the perspectiveof risk management, I am alsoemphasizing measures toaddress the progress of digitaltechnologies. On the other hand,
if wrong decisions are made,then it is possible that the only
thing that remains will besub­stan­tial expenses. Moving
forward, I would like to continue
to pay close attention to
expenses, including the share ofassets accounted for by workin process.”

ROUNDTABLE DISCUSSION AMONG OUTSIDE DIRECTORS“Information security isa never-ending task. Going forward,
I will work to implement firm
monitoring from the position ofan outside director.”

more time might be required, but I look

“It was thought that incorporating
sustainability into evaluations of
directors would be a strong
message for both directors andemployees about earnestly
addressing sustainability.”

KawanaIn FY2022.3, there were majorchanges to the remunerationand demonstrate their capabilities.
ShimadaLooking at the establishmentof the Sustainability Policy,

including targets for decarbonization,
there are areas in which the Group hastaken the lead over other companies.
Going forward, a key point will be how
this is implemented, and how the Board
conducts monitoring.

27

SPECIAL FEATURE
MID-TERM PLAN OF THE BANDAI NAMCO GROUP (APRIL 2022 TO MARCH 2025)
The Bandai Namco Group commenced a new three-year Mid-term Plan in April 2022.

CONTENTS

28

48	Progress in North America
under the ALL BANDAI NAMCO concept

MID-TERM PLAN OF THE BANDAI NAMCO GROUP
30 HISTORY OF OUR MID-TERM PLANS

50	Moving ahead with business in China
under the ALL BANDAI NAMCO concept

32 DETAILS OF THE MAIN STRATEGIES IN THE MID-TERM PLAN

34	MESSAGES FROM THE PRESIDENTS
OF THE BUSINESS MANAGEMENT COMPANIES

52

38 IP PRODUCTION UNIT
40 AMUSEMENT UNIT

54 HUMAN RESOURCES INITIATIVES

34 ENTERTAINMENT UNIT

In accordance with the newly formulated Purpose, “Fun for All into the Future,” as42

we work toward what we aim to be, we will strive to always meet the needs of IP

58

MAIN STRATEGIES: IP AXIS STRATEGY
42 DIALOGUE: Fusing Digital and Physical Elements

fans, a wide range of business partners, Group employees, and regions/communities

46	Building businesses underthe ALL BANDAI NAMCO concept

around the world and to foster deep, broad, multifaceted connections.

MAIN STRATEGIES: PERSONNEL STRATEGY
52 MESSAGE: Cultivating human resources who
demonstrate the distinctive strengths of
the Bandai Namco Group60 SUSTAINABILITY MANAGEMENT

For further information, P.32

IP×FanConnecting with fansthrough IP

IP Axis Strategy

Mid-term Vision

Enhancing IP value

IP×World

Connecting the world
through IP

Connect with Fans
In accordance with the Purpose, the Bandai Namco Group aims to connect with

IP×Value
P.42–51

New framework for connecting with fans

Accelerating evolution in the IP axis strategy
Building businesses under the ALL BANDAI
NAMCO concept

Personnel Strategy

P.52–57

Developing diverse human resourcesSustainability

P.58–67

Connecting to a smile into the future

SPECIAL FEATURE:
MID-TERM PLAN OF THE BANDAI NAMCO GROUP

Main Strategies

MAIN STRATEGIES: SUSTAINABILITY
58 DIALOGUE: Sustainability Activities—Connecting to a Smile into the Future

Numerical targets for the fiscal year ending March 31, 2025

IP fans, business partners, Group employees, and regions/communities around

Consolidated Net Sales:

the world. We will strive to connect more deeply with current fans and more¥

1,100 billion

Consolidated Operating Profit:

125 billion

¥

ROE:

12% or more

broadly with new fans. In addition, we will aim to foster multifaceted
connections among current fans and new fans as well as communities of fans.
In fostering connections with and among various fans, our highest priority willbe the quality of the connections. Under the Mid-term Plan, we will advancea variety of initiatives focusing on deep, broad, and multifaceted connections
with fans and on the quality of those connections.

Promotion System
Strengthening governance systems ⇒ Transition to company with an Audit & Supervisory Committee• We have established an Audit & Supervisory Committee and directors who are members of the Audit & Supervisory
Committee have the right to vote at meetings of the Board of Directors. Accordingly, the Board auditing and supervisory
functions have been strengthened.
• Through the delegation of Board authority for certain matters, we are implementing more rapid decision-making and business execution in rapidly changing entertainment markets.
Certain changes to Unit system ⇒ Reorganizing within the IP Production Unit

• We combined the Visual and Music Business and the Creation Business to establish the IP Production Business.

Shareholder Return• Basic policy: We will continue to follow a basic policy of providing a return to shareholders that targets a total return ratio of
50% or more based on stable dividend payments of 2% of DOE (dividends on equity).

28

29

SP E C IA

SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

Mid-term Vision

HISTORY OF
OUR MID-TERM PLANS

2021.4–2022.32016.3-2018.3 Mid-term Plan

Theme: Developing a global base for growth• Investments in growing business areas• Improving profitability of each business

Mid-term Vision:
NEXT STAGE: EMPOWER, GAIN MOMENTUM,
ACCELERATE EVOLUTION

Mid-term Vision:
CHANGE for the NEXT: EMPOWER, GAIN
MOMENTUM, ACCELERATE EVOLUTION• Accelerate evolution in the IP axis strategy• Through the IP axis strategy, gain momentum
in global markets• Empower and innovate business model throughBandai Namco market advantages• Accelerate evolution in IP axis strategy• Empower push into new entertainment• Gain momentum with ALL BANDAI NAMCO• Make personnel the core of the Group

889.2
125.4

Mid-term Vision: EMPOWER,
GAIN MOMENTUM, ACCELERATE EVOLUTION

732.3• Transformation into a speedy Group• Adoption of IP axis strategy by the Group

620.0
84.6

575.5

565.4

Reduction in speed
Unable to address changes in society

450.8

459.1

84.0
78.7

507.6

75.0

454.2

460.4

(¥ billion)

63.2
426.3

394.1

378.5

56.3
49.6

48.6

Operating
Profit

42.2

35.6

740.9
723.9

678.3

Introduction of the Restart Plan

487.2

Net Sales

2023.3–2025.3Mid-termPlan

IP axis strategy: From adoption to acceleration

We advanced three business area strategies, which were applied
to businesses, and two functional strategies, which were applied
on a Groupwide basis.

RESTART!

• Strengthening corporate governance• Effectively utilizing human resources• Building optimal management system• Entertainment Hub Concept• Strengthening overseas businesses

Management
Integration

2019.3–2021.3 Mid-term Plan

2013.3–2015.3 Mid-term Plan

2010.3–2012.3 Mid-term Plan

Theme: Strengthening, Enriching, and Expanding
Portfolio Management

Enhancing
Business
Foundations
and Systems
for the Next
Mid-term Plan

SPECIAL FEATURE:
MID-TERM PLAN OF THE BANDAI NAMCO GROUP

The Bandai Namco Group was created in September 2005 through the management integration of BANDAI CO., LTD. and
NAMCO LIMITED.
After the integration, the Group moved quickly to leverage synergy effects by implementing a range of internal measures.
However, we were not able to respond adequately to changes in our markets and customers. Our operational speed declined
and we did not effectively utilize the strengths of each Group company. As a result, our performance was sluggish. In April
2010, we launched the Restart Plan with the objective of transforming ourselves into a speedy Group under the IP axis strategy. The Group worked together to maximize the shared value of IP, and in this way we achieved a recovery in our results.
In response to COVID-19, we positioned FY2022.3 as a period for enhancing our business foundation and organizational
structure. We started a new Mid-term Plan from FY2023.3.

2007.3–2009.3 Mid-term Plan

Connect with Fans

44.6

34.6
33.4

(¥ billion)

16.3
22.3
For the Fiscal Years
Ended March 31

1.8

2006
30

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023
31

SP E C IA

SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

DETAILS OF THE MAIN STRATEGIESIN THE MID-TERM PLAN
Point

01

IP Axis Strategy

The IP axis strategy, which is the Group’s strength, is the core of the current Mid-term Plan. We are aiming forsustainable growth by implementing new initiatives to foster deep, broad, and multifaceted connections
with fans around the world; by accelerating evolution in the IP axis strategy; and by working to build businesses as we work together under the ALL BANDAI NAMCO concept in regions around the world.

Connecting with fans through IP

New framework for connecting with fans
We will develop a metaverse for each IP (pages 42 to 45) as a new framework for connecting with fans. We are
anticipating virtual spaces that will enable customers to enjoy a wide range of entertainment on an IP axis, as

IP×World
Connecting the world through IP

well as frameworks that leverage Bandai Namco’s distinctive strengths to fuse physical products and venues

Building businesses under the ALL BANDAI NAMCO concept
To work together and advance our strategies under the ALL BANDAI NAMCO concept in global markets,
we have implemented such initiatives as organizational restructuring and base consolidation in regions
around the world. Under this ALL BANDAI NAMCO concept, we work to build businesses in each region.

with digital elements. We are aiming for open frameworks that provide venues for connections with andamong fans and business partners.

IP×Value
Enhancing IP value

Accelerating evolution in the IP axis strategy
We will leverage outlets for a wide range of products and services as well as our strengths in facilitating
collaboration among digital and physical elements, and we will redefine the optimal IP axis strategy for IP

Targets for the final year of
the Mid-term Plan
Group overseas
sales ratio: 

35%

SPECIAL FEATURE:
MID-TERM PLAN OF THE BANDAI NAMCO GROUP

IP×Fan he new logo will be displayed on all Group products and services. In this way, we will strive to leverage theTappeal of the ALL BANDAI NAMCO brand.
I n the development and marketing of products and services with an IP axis, we will take steps to further
bolster collaboration among businesses.
For IP that is rolled out worldwide, the Group will implement projects that extend across businesses and regions.
We will focus on creating and nurturing IP originating in each region.

fans and for IP itself. In these ways, we will aim to accelerate evolution in the IP axis strategy.

Strengthening IP creation
By reorganizing the IP Production Unit and collecting/integrating know-how related to visual, music,
and live events, we will further reinforce our IP
creation and production capabilities. In addition, we
will implement strategic investment for the purposeof IP creation. We will strive to create IP froma variety of perspectives, including from products
and services, through Groupwide initiatives, throughthe Bandai Namco Content Fund, and throughinitiatives with external business partners. In theseways, we will work to nurture IP creation.

Point

02

Personnel
StrategyWorking to maximize IP value on an IP axis
• In working on a business axis, we aim to maximize business operations by leveraging IP witha wide range of outlets for products and services. In addition, we also work from an IP platform
perspective, where we emphasize the IP axis with the objective of maximizing the value of the IP
itself. We will build IP platforms that foster connections between Bandai Namco and fans, andamong fans themselves, through a wide range of products and services.
• Aiming to maximize the value of IP, from a longer-term perspective, we will emphasize IP value
maximization and implement open collaboration with a wide range of partners.
• For IP rolled out across regions and multiple businesses, we will aim for IP value maximization
through Groupwide projects that extend across businesses and regions. With IP producers as thecontrol towers, we will focus on IP value maximization and work to roll out IP from a long-term
viewpoint of overall optimization.

Developing diverse human resources e will work to develop diverse human resources in a variety of fields, such as marketing personWnel, creators and engineers, and personnel in administrative units.
 e will strive to be a group that demonstrates the concept of “same spirit, diverse talents” andW
fosters active participation by employees with varied talents, individual characteristics, and values.
 e will support employees as they take on challenges and develop human resources to advanceW
the IP axis strategy on a global basis.
We will work to address new and diverse working styles.

Investment plan for accelerating evolution in the IP axis strategy

Three-year period
covered by the current Midterm Plan

40.0 billion

Total: ¥

Point

03

SustainabilityS trategic investment to maximize

Investment to develop the IP Metaverse:

IP value: ¥¥→ New IP creation, Groupwide IP projects,→ Establishment of data foundation (Data

25.0 billion

open innovation, etc.

15.0 billion

Universe), development of content, etc.

Connecting to a smile into the future
In accordance with our Purpose, we will work together with fans to advance sustainability activities
for the realization of a sustainable society.
The Bandai Namco Group Sustainability Policy		 pecification of Material Issues
S(Verifying the Appropriateness of the Important CSR Themes)		

P.61• Harmonious coexistence with the natural environment

P.62–63• Provision of appropriate products and services• Appropriate utilization and protection of intellectual property

P.66• Establishment of work environments that facilitate mutual respect• Harmonious coexistence with communities

P.67

Medium- to long-term targets for decarbonization		

32

P.60

P.64–65

P.54–57

P.63

33

SP E C IA

SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

MESSAGES FROM THE PRESIDENTS
OF THE BUSINESS MANAGEMENT COMPANIESENTERTAINMENT

UNIT
Digital Business:

Advancing the metaverse concept for a new era
Unit Mid-term Vision

Connect with Fans
Unit Main Strategies• Acquiring a focus on maximizing IP value

As with the Group as a whole, the Mid-term Vision of theEntertainment Unit is “Connect with Fans.” We aim to forge stronger
connections with fans from both digital and physical perspectives,with IP as the axis.
The Unit’s main strategies are “large-scale, long-term investment ×
short-cycle, rapid investment” and “acquiring a focus on maximizing
IP value.”First, we will aim to implement investment aligned with businesscharacteristics and to foster mutual collaboration. In this way, we
will work to utilize and demonstrate the full effects of the different
characteristics and business models of the digital business (content)
and the physical business (tangible goods). In the Digital Business,to respond to changes in markets and customer preferences, largescale growth investment is necessary. On the other hand, in the Toysand Hobby Business, we will implement large numbers of short-cycle
investments in order to further strengthen rapid product development and rollouts.
Then, we will work to maximize IP value itself from a variety of
directions. We need to think as a manufacturer, maximizing businessearnings by rolling out IP products and services, and we also need tothink as a platformer, pursuing increases in the value of IP itself.
Through these two ways of thinking, we will consider and implement
the optimal measures for maximizing IP value.
For example, with Mobile Suit Gundam, visual products, andservices are rolled out on a Groupwide basis for a wide range oftargets. Furthermore, we work to maximize IP value by leveraging
new concepts and business development initiatives through­collaboration and cooperation with external partners. We will also
develop the Gundam Metaverse as the first stage in the IP Metaverse,
a new framework for connecting with fans. Moreover, in addition to
expanding overseas business development initiatives, together
with external partners we will work to address social issues throughGundam Open Innovation. Through these types of measures, weYasuo Miyakawa
Director (Part-time)
In charge of Digital Business,
Entertainment Unit
Bandai Namco Holdings Inc.
President and CEO
Bandai Namco Entertainment Inc.

34

will work to maximize IP value over the medium to long term froma variety of perspectives.

multifaceted connections with fans. We have commenced metaverse
development, and will advance the Data Universe concept with theobjective of implementing integrated management of the fan data thatwill be the foundation for our operations in this area. In addition, ourbasic policy is to exceed the expectations of fans around the world withhigh-quality content and diverse entertainment that fans can enjoy
over long periods of time. In accordance with this policy, we will work to

SPECIAL FEATURE:
MESSAGES FROM THE PRESIDENTS OF THE BUSINESS MANAGEMENT COMPANIES• Large-scale, long-term investment × short-cycle,
rapid investment

Forging stronger connections with fans from both
digital and physical perspectives

In the Digital Business, we will aim to forge deeper, broader, and moreadvance quality-focused development by both expanding titles originating in Japan and creating titles originating overseas. In addition, we
will strengthen the marketing function in each region. Furthermore, wewill take on challenges that transcend the framework of games, such as
collaboration with the Toys and Hobby Business and taking on thechallenge of new entertainment.
In the Digital Business, we are already actively implementing investment and technical research with a focus on the arrival of the Web 3.0
era and the full-scale progress of the metaverse. We are pursuingentertainment that will provide even more enjoyment to fans. We willleverage the Group’s strengths and work from both digital and physicalperspectives to deliver a new world that no one has experienced
before, a world that is only available from Bandai Namco.

Toys and Hobby Business:

Maintaining dedication to manufacturing,
accelerating global rollouts
In the Toys and Hobby Business, a large number of IP andproduct categories have the potential for global growth. For
established IP, multiple new media rollout initiatives areplanned during the period of the Mid-term Plan, and the Toysand Hobby Business will work to maximize product and service
rollouts while cooperating with the Digital Business.
By region, in North America, we will make full use of a newcompany that was created through the integration of a company
with strengths in distribution for the mature fan base anda company with strengths in mass market distribution. We will
work to cultivate specialty stores, strengthen e-commerce anddigital marketing, and enhance our presence. In China, centeredon a new company combining the Digital Business and the Toysand Hobby Business, we will increase the categories in which
we have a presence with locally originated IP and expand the
distribution network. At the same time, we will strengthen
collaboration among businesses and further reinforce the IP axis
strategy. In addition, we will link this to significant growth in
the entire Asian region, centered on development initiatives
in China.
In the Toys and Hobby Business, we will focus on manufacturing and, as a global challenge, aim to have an irreplaceable
presence for fans around the world.

Kazuhiro Takenaka
Director (Part-time)
In charge of Toys and Hobby Business,
Entertainment Unit
Bandai Namco Holdings Inc.
President and CEO
BANDAI CO., LTD.

35

SP E C IA

SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUPMESSAGES FROM THE PRESIDENTS
OF THE BUSINESS MANAGEMENT COMPANIES(APRIL 2022 TO MARCH 2025)

ENTERTAINMENT UNIT
Example of Business Model in the Digital Business (When In-House IP Is Used)

Example of Business Model in the Toys and Hobby Business (When Another Company’s IP Is Used)

Customers

Customers
Promotion androllout of media
Game content

Provision of products and services
Promotion androllout of media

Platforms
Downloadable content,
updates, events

Stores / e-commerce

Media

Game content
Provision of products and services

Creators
Development partners

TV
MoviesPublishing
Internet
Eventsetc.

Promotion androllout of media

Collaboration

Digital BusinessMedia

IP usage approval

TV
MoviesPublishing
Internet
Eventsetc.

Development /production partner

Collaboration

Program provision /investment

IP usageapproval

Merchandisingpermission

Toys and Hobby
Business

Rights holders

SPECIAL FEATURE:
MESSAGES FROM THE PRESIDENTS OF THE BUSINESS MANAGEMENT COMPANIES

Downloadable content,
updates, events

Other companies

FY2022.3 RESULTS AND RELATED DATA

MAIN STRATEGIES	Realizing the metaverse concept	Worldwide title organization, large-scale
development
	Strengthening content originating overseas

	Global IP merchandising rollouts

Sales by Major Category
Network content

Home video games

	Strengthening business in North America
and China¥¥

	Global strategy for digital marketing anddirect marketing

185.5 billion

174.4 billion

FY2025.3 NUMERICAL TARGETS
Network Content
Segment Sales

Segment Profit

480.0 billion¥

58.0 billion¥

Results forecasts are as of May 2022.

36

Overseas sales
ratio*

39%* Percentage of network content
sales contributed by transactions
arising overseas

FY2022.3 RESULTS AND RELATED DATA

MAIN STRATEGIESFY2025.3 NUMERICAL TARGETS

Home Video Games
Unit sales of home video games

56,847 thousand units

Segment Sales

Full package download
sales ratio

Segment Profit

66%




450.0 billion

Sales of IP Products and Services (Toys and Hobby Business in Japan)
Anpanman

8.7 billion¥

Ultraman series

Mobile Suit Gundam series

PRETTY CURE! series¥

44.2 billion¥

Super Sentai series

Pokémon

8.0 billion

4.4 billion¥¥

5.7 billion
5.9 billion¥¥

59.0 billion¥

KAMEN RIDER series

DRAGON BALL series

ONE PIECE

22.8 billion¥

19.7 billion¥¥

10.0 billion

Results forecasts are as of May 2022.

37

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SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

MESSAGES FROM THE PRESIDENTS
OF THE BUSINESS MANAGEMENT COMPANIESIP PRODUCTION

UNIT
Example of Business Model in the IP Production Unit

Unit Mid-term Vision

 volving into the leading IP production group thatE
continues to provide a wide variety of stories that bring theworld together

Provision of
products
Provision of products
and services

Packaged products,
live events,
etc.

The Mid-term Vision of the IP Production Unit is “Evolving into thePromotion androllout of media

Media

Sales ofproducts

leading IP production group that continues to provide a wide variety
of stories that bring the world together.” Our main strategies are“accelerating the creation of hits by strengthening multifaceted
production capabilities,” “maximizing product value by strengthen-Provision of
products andservices

Promotion androllout of media
Visual
Products

Other companies

ing multifaceted management capabilities,” and “establishing strong

Promotion androllout of media

TV
MoviesWebcastPublishing
Internetetc.

Unit structure for the implementation and continued development

IP usage approvalof strategies.”
In April 2022, we implemented a reorganization. Three companies
in the visual products business were integrated to establish Bandai

Collaboration

Coordination

IP Production
Unit

Other UnitsLive
EventsMusic

Namco Filmworks Inc., and three companies in the music and live

SPECIAL FEATURE:
MESSAGES FROM THE PRESIDENTS OF THE BUSINESS MANAGEMENT COMPANIES

Becoming a strong group that integrates visual
products and music to foster connections
among IP and fans

Customers

Bandai Namco Group

events business were integrated to establish Bandai Namco Music

External partners, creators, artists

Live Inc. As a result of this reorganization, we have a stronger system
connecting IP and fans in the visual and music businesses, from thecreation of IP to the provision of products and services. Under the new
system, the Unit’s abundant know-how and personal connections
have been consolidated, and we can flexibly leverage the optimal
combinations of creators, staff, artists, etc., for each product. In thisIn addition, our business in overseas markets has an enhanced
potential for growth through increased online distribution and salesof products as well as increased provision of licenses. Going forward,
we will accelerate IP creation, with an assumption of global rollouts.
Moreover, we will collaborate within the Group as well as withexternal partners. In this way, we will also focus on expanding theregions. Through these initiatives, we will connect IP and fans around

FY2022.3 RESULTS AND RELATED DATA

MAIN STRATEGIES

way, we will work to strengthen the creation of nurturing of hit IP.

	Accelerating the creation of hits by strengthening multifaceted production capabilities isual and Music Business
V
Number of Copyrighted Products	Maximizing product value by strengthening
multifaceted management capabilities(As of March 2022)

Number of copyrighted products /Total number of hours

	Establishing strong Unit structure for the
implementation and continued development of strategies

BANDAI NAMCO Arts Inc.

1,218 products /4,508 hours

the world and further increase IP value.
Our mission is to create and maximize IP itself, which is the key to

FY2025.3 NUMERICAL TARGETS

the IP axis strategy. Up to this point, we have created a large numberof IP over many years. However, the environment has changed

Segment Sales

Makoto Asanuma

In order to continue to generate hit IP, we will also need to change

Director (Part-time)
In charge of IP Production Unit
Bandai Namco Holdings Inc.

significantly. While addressing changes in the environment andSegment Profit

diversification of fan preferences, we will aim to be a strong organiza-

substantially, and competition has intensified on a global scale.

President and CEO
Bandai Namco Filmworks Inc.

tion that can steadily create new IP that touches the hearts of fans,
and then deliver that IP around the world.



100.0 billion
17.0 billion¥

Results forecasts are as of May 2022.

Number of works with master license recordings

66,700

Number of works published
Approx.

35,700600 times* Number of performances heldby BANDAI NAMCO Live Creative Inc.

(As of March 2022)

BANDAI NAMCO Arts Inc.

Approx.

Number of performances* umber of Copyrighted
N
Products

Number of musical works¥

Number of Live Events Held

Number of copyrighted products /Total number of hours
SUNRISE INC. and BANDAI NAMCO Pictures INC.

345 products /2,780 hours

Note: Company names are as of FY2022.3.

38

39

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SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

MESSAGES FROM THE PRESIDENTS
OF THE BUSINESS MANAGEMENT COMPANIESAMUSEMENTUNIT
Example of Business Model in the Amusement Unit

Unit Mid-term Vision

 esponsive to Change—Becoming a Unit that can addressRchange as we move into the future

Provision of products
and services

Customers

leverages real venues

Amusement machine development

Revenue-sharing
facilities*

The Mid-term Vision of the Amusement Unit is “Responsive toSales / new versions

Change—Becoming a Unit that can address change as we move into

Facilities operated
by other companies

the future.” We will provide customers with experience value thatdraws on our real venues. In addition, from our position supporting

Amusement Unit

content outlets for the Group’s IP axis strategy, we will work to

Collaboration

enhance the Unit’s presence.
In formulating the Mid-term Plan, we envisioned what we wanted
the Amusement Unit to be like in 10 years. With consideration for

IP usage approval

the rapidly changing business environment, we will work to bothstrengthen our business foundation through structural reforms and

SPECIAL FEATURE:
MESSAGES FROM THE PRESIDENTS OF THE BUSINESS MANAGEMENT COMPANIESProvision of products
and services

Providing customers with experience value that

Directly operated facilities

plant seeds for the realization of future growth in cooperation with

Production partners

the Group. With consideration for the issues in the previous Mid-term
Plan and for current circumstances, we will aim to be a Unit that fully
leverages its strengths.
We have formulated three main strategies: Transform: Change

Rights holders* Revenue-sharing facilities:
Revenues from the operation ofamusement machines are shared.

method of implementing businesses; Unite: Continually work
together as a Unit to foster optimization; and Control: Address
circumstances rapidly and flexibly. In the future, we will work with
two types of amusement facilities. Commodity amusement will beamusement will involve fully leveraging the Group’s strengths toTransform:	Change method of
implementing businesses

provide amusement that cannot be provided by any other company.
Under the Mid-term Plan, commodity amusement will be a pillar of
our earnings, and we will nurture high-value-added brand amusement by investing the earnings that are generated in commodity
amusement.
We offer real experiences in which friends and family share fun and

Directly managed facilities

Control:	Address circumstances rapidly
and flexibly¥

20.8 billion

Revenue-sharing facilities*

ties to purchase items but also providing experience through a process

Hiroshi Kawasaki
Director (Part-time)
In charge of Amusement Unit
Bandai Namco Holdings Inc.
President and CEO
Bandai Namco Amusement Inc.

Segment Sales

the world of the IP, value is created that cannot be found anywhere

else. The customer experience value that can be provided by the

Segment Profit

necting with other people through IP and sharing experiences within

Amusement Unit involves advancing the IP axis strategy by leveraging
real venues that have direct customer contact points. Furthermore, bystrengthening collaboration with Group companies, we will work toNumber of Amusement Facilities(Global total)

Amusement machines

FY2025.3 NUMERICAL TARGETS

enhance the customer experience value by not just offering opportuni-

Sales by Major Category

Unite:	Continually work together as a
Unit to foster optimization

inspiration, and this is what leads to increases in content value. We canthat extends up to the point at which things are acquired. By con-

FY2022.3 RESULTS AND RELATED DATA

MAIN STRATEGIES

everyday amusement based on our existing facilities, while brandAmusement facilities

61.5 billion¥

100.0 billion¥

6.0 billion¥

Results forecasts are as of May 2022.



261 facilities

567 facilities
Other

5 facilities
Total

833 facilities* Revenue-sharing facilities: Revenues from theoperation of amusement machines are shared.

evolve into a unique, highly competitive businesses.

40

41

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SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

DIALOGUE
Fu s i n g D i g i ta l a n d P h y s i ca l E l e m e n t sLooking Back at FY2022.3
Fujiwara

By actually working in the Digital

Fusing Digital and Physical Elements

there is a great potential for the two busi-

potential in global markets. By deepening

deepen the understanding of the characteris-nesses to achieve many things together by

the fusion with the Digital Business, which hastics of each business. Within the Digital

understanding their differences while shar-abundant know-how regarding worldwide

Business, I have worked to provide examples

ing the same spirit.

rollouts, and leveraging that knowledge,that foster an understanding of the character-I think that it will be possible to further

istics of the Toys and Hobby Business. A little

accelerate the pace of growth.

more time might be required until we see

Business, I have been able todirectly experience how the business modeland cycle are different from those in the Toysand Hobby Business. On the other hand, I
have also had the impression that the fundamental spirit is the same. The Digital
Business and the Toys and Hobby Businessshare the same spirit in the sense that they
make good products that are accepted bymarkets and fans. I have the feeling that

Udagawa

When I started in this position,
I realized once again the breadthof the product categories in the Toys andHobby Business, as well as the large numberof products. The speed of operations isresults, but I think that over the past year,

Fusion of Digital and Physical
Elements—Results and Response

within the Digital Business, there has been an
increase in people’s understanding of andinterest in the Toys and Hobby Business.

different from the Digital Business, witha cycle of products launching on what seems
almost like a daily basis. In addition, theToys and Hobby Business has high growth

Fujiwara

To advance the fusion of the Digital
Business and the Toys and Hobby

Business, it will be necessary to mutually

UdagawaWith the mission of expanding
BSP’s business globally, I havecontinued to implement communications
initiatives within the Group. Awareness ofglobal expansion has spread throughout
the company, and I think that global devel-

digital business (content) and the physical business(tangible goods). With the objectives of buildinga system that can leverage a wide range of content
outlets and of creating new entertainment, we estab-

opment has accelerated significantly overthe past year. In addition, progress is also
being made in collaboration with the Digital
Business, with IP as an axis. There has been
growing cooperation in marketing, such as
joint sponsorship of events, and increased

lished the Entertainment Unit, comprising the Digitaldevelopment of products from IP originating

Business and the Toys and Hobby Business. In thein BNE games. I have the sense that thearea of human resources, the Group is also advancing

fusion is steadily deepening.

personnel exchanges. Koji Fujiwara, who had worked
in the Toys and Hobby Business, has become themanaging director of Bandai Namco Entertainment Inc.
(BNE), and Nao Udagawa, who had worked in the

Fujiwara

In the creation of entertainment,
wide-ranging thinking and drive are

extremely important for the people working
in planning. It’s not an exaggeration to say

Digital Business, has become the president andthat in terms of achieving our goal, enthusi-­representative director of BANDAI SPIRITS CO., LTD.

asm is everything. With the Digital Business(BSP). Mr. Fujiwara and Ms. Udagawa were asked
about future initiatives in the fusion of digital andphysical elements in order to succeed in intenselycompetitive global markets.

MAIN STRATEGIES: IP AXIS STRATEGYIn April 2021, the Bandai Namco Group integrated the

SPECIAL FEATURE:

Demonstrating a Stronger
Presence throughthe Fusion of Digitaland Physical Elements

DIALOGUE

MAIN STRATEGIES: IP AXIS STRATEGY

and the Toys and Hobby Business in thesame Unit, we have established an environment in which the two businesses can sharegoals and motivate each other while directly
experiencing the other side’s enthusiasm.
I think that this is highly significant.

Koji Fujiwara	Chief Gundam Officer (CGO)Managing Director
Bandai Namco Entertainment Inc.

	Joined BANDAI CO., LTD., in 1998. Worked in the toy and plastic model
departments, and became Chief Gundam Officer (CGO) in 2018. After working asa director at BANDAI SPIRITS CO., LTD., moved to current position in April 2021.

42

Nao Udagawa	President and CEO

BANDAI SPIRITS CO., LTD.

	Joined BANDAI CO., LTD., in 1994. Worked in the mobile phone content andgame departments, and became a director at Bandai Namco Entertainment
Inc. in 2015. After working as managing director at BNE, moved to current
position in April 2021.

43

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SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

DIALOGUE

MAIN STRATEGIES: IP AXIS STRATEGY

to think about what the entire Group can do,

actually be purchased as visitors viewed

and what the Group aims to be. Going for-exhibitions, including a life-size virtual

ward, one issue will be how we can nurture

diorama and a gallery, as well as various

human resources with this wide-ranging

visual products and merchandise. I think the

viewpoint.

metaverse space will have combinations ofFusing Digital and Physical Elements

these services and will be a gathering site for
Udagawa

Personnel transfers between

Gundam fans. There is no finished form.

companies, businesses, and Units

Rather, I envision it continuing to grow andare no longer unusual at the Bandai Namco

expand. It will be important to advanceGroup. When someone demonstrates theirdevelopment in a manner that is aligned

skills and know-how in a new workplace,with the times.

they have a refreshing effect on thosearound them. They can also acquire newknowledge and experience and expand theirthink the core community should be formed

cycle. Our work is not just doing what has

first, then expanded in stages. First, inbeen assigned to us. It is important that we

FY2023.3, we plan to launch a colony forcreate work ourselves. I believe that an

Gundam plastic model fans within the Space

increase in the number of people who canColony, a Gundam virtual space. In FY2024.3,

enhance their own capabilities and continue

we plan to launch an e-sports colony, and toto create new value will lead to the develop-

subsequently launch colonies in a variety ofment of the business.

categories. We would also like to provide
venues where businesses utilizing Gundam

exchange has become an impor-tant opportunity in the sense of learning
about the entire Group. On the front lines,
personnel exchanges between the Digital
Advancing the IP Metaverse asa Groupwide Axis

forward I would like to see larger numbers of

can be rolled out, including not only within

Fujiwara

words, to maximize IP value by providing

IP Metaverse Development
With the objective of being close to fans, for each IPgo freely between colonies and therefore

a world in which users interact

enjoy the Gundam worldview even more.
It is Gundam plastic model fans who are

the Group working together.

also by collaborating openly with partners, con-

Udagawa

All regions and businesses are involved with
Gundam, and the first step is the Gundam
Metaverse. This IP metaverse will not entail the creation of a large space that is complete from the
beginning. Rather, in the Space Colony, a virtual space, we will launch colonies for each category,

The fact that we are rolling out
products and services in both thedigital and physical businesses is a major
competitive advantage for the Group. It is aunique strength. The Group has a variety of

employees able to gain experience in eachthrough avatars in virtual spaces created onother’s business operations. In this way,a network. However, the Bandai Namco

best able to identify with the feelings of

employees will be able to develop a stronger

Group’s metaverse is aimed at creatingother Gundam plastic model fans. The

awareness of what the Group can do, with-connections among fans, centered on IP. Fan

growing enthusiasm of fan communities willout being limited to the business scope ofcommunities will be activated as fansindividual companies. One issue is how

around the world connect through thelikely lead to the creation of new initiatives

That is why connecting with fans is important,record significant growth. I would like to see

Bandai Namco should interact with fansmetaverse. Then, in the real world we willthat had not previously been imagined. We

and is a point that we need to focus on.

the Group leverage its wide range ofaround the world. I look forward to seeingroll out products and services in a form thatneed to take these trends seriously, and weTargeting business growth on a global basis,

resources, discuss the best methods for fans,increases in the personnel who can thinkaddresses the increase in enthusiasm of thewill strive to have the Unit work together and

we need to increase the quality of connections

and build a system that can achieve the plan.

about this issue from a Groupwide

activated fan communities. This is the typelink them to the creation of new productswith fans under the ALL BANDAI NAMCO

viewpoint.

of metaverse that can only be provided byand services.

concept. This concept is spreading beyond

such as anime, Gundam plastic models, games, and music. These will be linked with the Bandai
Namco ID, which will be an account shared throughout the Group. We will build the Data Universe as

methods of expression. If everyone at thea framework for the integrated management of the Group’s fan data.

Group can understand these methods, freely
combine them, and roll out development
initiatives, then the Group will be able to

the Unit to reach the entire Bandai Namco

Bandai Namco, which has both digital andFujiwara

There is no doubt that mutualphysical businesses.

understanding is deepened whenpeople experience different companies andbusinesses. From a long-term viewpoint, the44

the Amusement Unit and move forward withthat leverage the Group’s internal know-how but

together to broaden the possibilities of IP.

In general, the metaverse indicatescollaborate with the IP Production Unit andmaximize IP value, not only by building metaverses

necting with fans around the world, and working

services. The fusion of the two businesses
within the Entertainment Unit. Rather, we willthat draws on the IP’s worldview. We will aim toGroup and fans. The concept is for spaces

what fans want in the form of products anddoes not mean that we will be closed up

the Bandai Namco Group will develop a metaverse

the Group but also companies outside thethat will enable Gundam fans to come andBusiness and the Toys and Hobby Businesshave been conducted in the past, and going

Gundam fans, and accordingly I

personal connections. This forms a type of

Udagawa

At BSP, in August 2021 we imple-

Targeting the Achievement of the
Mid-term Planmented a trial version in Japan of

implementation of personnel transfers acrossTHE GUNDAM BASE VIRTUAL WORLD,

businesses will result in employees having

a virtual space to which anyone from around

MAIN STRATEGIES: IP AXIS STRATEGY

Udagawa

I think that our recent personnel

There is very wide range of
SPECIAL FEATURE:

Effects of Personnel Exchanges inAdvancing Fusion

Fujiwara

Udagawa

The Purpose has been formulated,
and the Mid-term Plan has beenGroup. To achieve this increase in the quality

started. What we need to do has been set-of connections, I would like to support thetled. Now, we just have to do it. With a sensetransition to the implementation of detailedof pride and responsibility at being

measures.

a member of the Bandai Namco Group, we
will pursue the IP axis strategy fromThe Mid-term Vision of theEntertainment Unit is the same as

Fujiwara

Fujiwara

The Unit reorganization clarified thea Groupwide perspective. We will work

mission of each Unit. I would like totogether under the ALL BANDAI NAMCO

wide-ranging Group viewpoints. No matterthe world could go to have fun. Online, fansthe Group’s Mid-term Vision, “Connect withwhat Group company or business one is

could move about freely within the facility.

Fans.” We are advancing businesses thatsteadily fulfill the mission in the businesses

concept and do our utmost so that we canassociated with, it is necessary for everyone

Certain Gundam plastic models coulddeliver products and services directly to fans.

that the two of us are working in, in otherleverage the Group’s strengths.

45

SP E C IA

SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

MAIN STRATEGIES: IP AXIS STRATEGYU.K.

One office

The Americas

ShanghaiFranceSouth Korea

One office

One officeBusiness One officeIntegration

One office

One officeHong Kong Special
Administrative
RegionOne office

One office

Singapore

IP×World Connecting the world through IP

Building businesses under the
ALL BANDAI NAMCO concept
For the Bandai Namco Group, overseas business is an area where we can expect further growth. Up to this point, individual
businesses have conducted their own development initiatives, but for growth in the future it will be necessary to implement
initiatives under the ALL BANDAI NAMCO concept. In advance of the current Mid-term Plan, in each region we have combined­business companies, consolidated bases, and established systems to compete under the ALL BANDAI NAMCO concept. Moving
into the same office strengthens information exchange and collaboration and facilitates further cooperation among businesses.
The North American and Chinese markets have been positioned as key markets, and in the future in each of these markets
we will aim to approximately double sales from the current level.
Looking at overseas business as a whole, during the period of the Mid-term Plan we will aim to increase the overseas sales
ratio from 29.7% in FY2022.3 to 35% in FY2025.3. Furthermore, we will strive to increase it to 50% as soon as possible.

46

MAIN STRATEGIES: IP AXIS STRATEGY

Completing the establishment ofsystems to compete in regions
around the world
under the ALL BANDAI NAMCO concept

One officeTaiwan Region

IP Axis Strategy

SPECIAL FEATURE:

Spain

 iming for an overseas sales ratio of 35% during the period ofA
the Mid-term Plan
Long-term goals
FY2025.3 (target)
FY2022.3 (results)

Overseas sales ratio:

29.7%

Overseas sales ratio:

Overseas

35%

Overseas sales ratio:

Overseas
Japan

Japan

50%

Overseas

Japan

47

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SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

MAIN STRATEGIES: IP AXIS STRATEGYGroupwide Sales in Asia

In addition, we are also working to create and nurture IP originat-

For the Fiscal Years Ended March 31

ing in China. Most recently, we produced VG CAT, a short animation.
This anime was planned by BNESH and produced by our outside
partner in China. It was exclusively distributed online by a large

Aiming for­further growth

Chinese streaming company, and it became a popular product. For
example, during the streaming period it earned the number one
ranking for short animations. BNESH was able to achieve a certain

82.0¥
billionlevel of results. One example is VG CAT Blind Box, a digital closed box
product that we rolled out together with an external partner. When it

Sai EnGeneral Manager, Management Planning Department

was placed on sale through a lottery-based measure, more than

52.2¥
billion46.3¥
billion47.3¥
billion

2019

2020

2021

600,000 users participated.

Bandai Namco Entertainment (Shanghai) Co., Ltd.
2022

Achieving Original Growth with“IP × Business × Region”

2025

Note: Figures are estimates based on management accounting.

For BNESH to grow in the future, it will be necessary for the DigitalMoving ahead with business in China
under the ALL BANDAI NAMCO concept

Bandai Namco
Holdings China
Co., Ltd.

Digital Businessunder the ALL BANDAI NAMCO concept. To that end, I would like toToys and Hobby Businesswork on initiatives to unify standards and viewpoints, such as theBandai Namco Entertainment (Shanghai)Co., Ltd.

IP Production Business
SUNRISE (SHANGHAI) CO., LTD.

Amusement Business

Implementing business integration

Building businesses under the ALL BANDAI NAMCO concept

more closely and for the company to strive to expand its business

Bandai Namco Amusement (Shanghai)Co., Ltd.

establishment of common KPIs for the Digital Business and the Toysand Hobby Business, the unification of the evaluation systems, andthe alignment of viewpoints in management and administration. In

MAIN STRATEGIES: IP AXIS STRATEGYBusiness and the Toys and Hobby Business to work together even

Organizational Structure for Operations in China

SPECIAL FEATURE:

In 2015, joined Bandai Namco (Shanghai) Co., Ltd.
(currently, Bandai Namco Entertainment (Shanghai)Co., Ltd.) Moved to current position in 2022 afterworking in the Corporate Department at Bandai
Namco Holdings China Co., Ltd.

addition, I think that it will be important to aggressively implement
exchanges of information and opportunities for employees to interact and to build environments for mutual understanding.
Furthermore, aiming for growth in the Chinese market, we willemphasize “IP × business × region” as an important point in our
strategy. In addition to the “IP × business” viewpoint, under which

Creating New Entertainment by Advancing the IP Axis Strategy from a Chinese Viewpoint

Substantial Growth in Business Results in China

will also increase the incorporation of regional viewpoints that are

Advancing the IP Axis Strategy
by Fusing Digital and Physical Elements

unique to China and aim for growth through the multiplication ofIP, businesses, and regions. To that end, we will enhance theorganizational understanding of local cultures and businessbusiness models.
In FY2022.3, in the Digital Business, existing network content

As a result of the integration of the Digital Business and the Toys

practices. In addition, we will create frameworks to actively sup-In mainland China, the Group is rolling out the Digital, Toys andtitles recorded solid results, and the performance of new titles wasand Hobby Business, we were able to multiply the strengths ofport in-house startup ventures, and we will enhance internal

Hobby, IP Production, and Amusement Businesses under Bandaifavorable. In the Toys and Hobby Business, in conjunction with theeach business and build a foundation for the creation of new

training systems to nurture the capabilities of young and mid-

Namco Holdings China Co., Ltd., a regional holding company.

installation of a life-sized Freedom Gundam statue in Shanghai, we

entertainment that is aligned with the characteristics of the

career employees. Through these types of initiatives, we will work

Aiming to promote business under the ALL BANDAI NAMCO con-opened the second THE GUNDAM BASE flagship shop, which is

Chinese market. For the fans of each business, we will aim toto strengthen organizational capabilities to facilitate active

cept, in 2019 we consolidated business bases into a single office.

centered on Gundam plastic models, and we held events. Throughimplement measures through collaboration in various services,

careers for excellent human resources.

In addition, in January 2022 we implemented a company combi-

these types of initiatives, we focused further attention on Gundam.

products, and events and to demonstrate synergy effects.

50with the creation of IP originating in China and building new

we roll out IP worldviews in the optimal products and services, we

There are still a number of challenges that I want to take on.
These are to create IPs originating in China and nurture them into

nation for the Digital Business and the Toys and Hobby Business.

Furthermore, contributions to sales growth were made by charac-

Looking at specific initiatives by IP, for Gundam, which isI work in the Management Planning Department at Bandai

ter lottery products, collectible figures and toy products centeredin-house IP, we will continue to implement measures to grow it

hit IPs, to launch new businesses originating in China and contrib-

Namco Entertainment (Shanghai) Co., Ltd. (BNESH), whichon Ultraman. In addition, we aggressively took on the challenge

into the number one Japan-origin IP in China. In addition, forute to growth in scale of operations, and to realize environments

combines the Digital Business and the Toys and Hobbyof rolling out products in new categories, such as candy toys,

PAC-MAN, which is also in-house IP, in addition to rolling out

in which the staff members can take on a wide range of chal-Business. My job includes resolving management and opera-

apparel, and cosmetics, as well as China-original products.

Group products, such as games and toys, we will aggressively

lenges and have a sense of achievement. I am determined totional issues and acting as an intermediary between businesses.

Consequently, we were able to achieve record-high sales in bothprovide licenses to other companies and work to increaseaccomplish these challenges in order to enhance the presence ofIn addition, I am also involved in supporting business growth

the Digital Business and the Toys and Hobby Business.

awareness of the IP.

the Group’s business operations in China.

51

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SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

MESSAGE ultivating human resources who demonstrate the distinctiveCstrengths of the Bandai Namco Group

Enhancing the environment tofacilitate active participation
by diverse human resourcesin order to realize the Purpose
act with motivation and energy to leverage their varied talents, individual charac“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
their nationality. In addition, we will further focus resources on the establishmentof systems and environments that enable diverse human resources to actively
participate and to work in a manner that is healthy in body and mind.

Takashi Kaneko	Executive Officer

Division General Manager,
Group Administrative Headquarters
Bandai Namco Holdings Inc.

In the personnel strategy, our basic policy is
to link the entire process of formulating andimplementing various measures to the realization of the Purpose. While also including
the demands of society, more than anythingelse we will work to formulate a personnel
strategy that reflects the characteristics of the
Bandai Namco Group.
Under the current Mid-term Plan, we will
strive to develop diverse human resources ina variety of fields, such as marketing personnel who will advance the IP axis strategy on
a global basis, creators and engineers whowill be involved with the creation of IP and
the development of products and services,and personnel in administrative units who willbe the foundation for advancing management strategies and business strategies. The
key words will be “same spirit, diverse talents,” which we have emphasized for many
years. We believe that it is important todevelop human resources with abundant
individuality and diverse talents who will lead
the Group forward toward common goals.

The Concept of “Same Spirit, Diverse
Talents” in Diversity and Inclusion
The Bandai Namco Group provides a diverse
range of IP to fans around the world in theform of various products and services. To
advance our business operations, we ourselves must also be diverse. Accordingly, we
have emphasized the individuality and talentsof each person, without regard to such individual characteristics as gender or nationality.
This is the concept of “same spirit, diverse
talents,” which has already permeated deeply
throughout the Group.
The diversification of attributes leads toexpanded opportunities to secure and nurture
varied talents. As a result of initiatives that wehave implemented, the ratio of female managers in business management companies
increased from 17.4% at the end of FY2019.3
to 21.5% at the end of FY2022.3. In addition,
we are also actively implementing mid-careerhires in line with business needs. In FY2022.3,
we had 80 mid-career hires (this is the total forbusiness management companies. There
were 137 new graduate hires in the same
period). Furthermore, we are advancing thepromotion of foreign nationals to core humanresources, and as of the end of FY2022.3,
foreign nationals accounted for 15.5% of thedirectors in Group companies (calculated
based on the total number of directors in all
Group companies). Going forward, we willcontinue to advance the establishment ofenvironments in which employees can haveactive careers while making the most of theirindividual characteristics.

Koji Hamano	General Manager, Human Resources,
Group Administrative Headquarters
Bandai Namco Holdings Inc.

	Joined NAMCO LIMITED (currently, Bandai Namco

	Joined NAMCO LIMITED (currently, Bandai Namco

Entertainment Inc.) in 1996. Moved to current position

Entertainment Inc.) as a mid-career hire in 1998.

after working in amusement facility operations and in

Worked in Group administration, centered on account-personnel at various companies.

ing and finance. Moved to current position in April 2022.

52

Basic Approach to Personnel Strategy

Cultivating a Sense of Unity underthe ALL BANDAI NAMCO concept andNurturing Global Human Resources
The ALL BANDAI NAMCO concept is indispensable for the global promotion of the IP axis
strategy. Under the ALL BANDAI NAMCO
concept, we strive to transcend the barriers
between regions and Units and work together
as a unified Group. As a major precondition
for these efforts, it is important that each
employee accepts and respects the individual
differences of others. In accordance with thisapproach, “establishment of work environments that facilitate mutual respect” was set
as one of the Bandai Namco Group’s material
issues. Through such means as e-learning,
we are implementing educational activities
to foster a deeper understanding of humanrights and different cultures. In addition,
we plan to develop employee engagementrelated surveys, which have been
implemented by individual companies, into
Groupwide measures. Enhancing workplaceenvironments and increasing employee
engagement on a Groupwide basis will­contribute to the Group’s development.
In securing and developing global humanresources, we will not limit ourselves tomeasures implemented on a regional basis.
Rather, we think that it is necessary to moreaggressively implement training and personnel rotations that extend across regions, andwe are advancing a readjustment of theGroupwide personnel portfolio, with theGroup Administrative Headquarters serving
as the coordinator. In addition, by creating
frameworks for the collection of personnel
data on a global basis, and leveraging thisdata in global personnel management, we
will work to foster effective utilization ofhuman resources.
We recently started the Global NextGeneration Managers Development Program.
This is an enhanced version of the Global
Training that we have been implementing on
a worldwide basis. We are aiming to develop
human resources who will be able to handle
the Bandai Namco Group’s future business­activities around the world. It was first held
in FY2022.3, in an online format for humanresources in the Asian region, including
Japan. Going forward, while tracking the

COVID-19 circumstances, we will expand thescope of people the training is offered to, andwe will consider implementing it in venues
where people can meet directly and sharetime together.

Global Next-Generation Managers
Development ProgramThis training was started in FY2022.3 forpersonnel who are expected to support theGroup in the future. The objectives are toenhance awareness, offer opportunities tobuild personal connections, and provide
venues to consider the future of the Group.
It is offered to people selected from each
Unit and region, and positioned as a corelearning initiative involving studying theGroup’s current circumstances and thinking about the Group’s future. The principal
content involves utilizing group-based
work to foster consideration of specificaction plans regarding the Group’s future.

Targeting the Permeation of the
Purpose and the Growth of the GroupIn accordance with the Purpose, we would
like all employees to contribute to society
with a sense of pride and responsibility about
being part of the Bandai Namco Group. In
various training programs, we are creating
opportunities for employees to consider andexchange opinions about the Purpose. This
has already been implemented in the Group’s
combined new manager training, new graduate employee training, and training programsby years of experience, such as training forpeople in their fifth year since joining theGroup. We would like to see everyone deepen
their understanding of the Purpose and link itto their work activities.
The mission of the Group Administrative
Headquarters is to establish foundations
for the connection of individual growth toCompany development, and environments inwhich all of the Group’s human resources canhave active careers. By emphasizing Bandai
Namco’s unique strengths, which are firmly
established in the Group, and broadening thediversity of talent, we will develop humanresources who continue to take on challenges
around the world.

MAIN STRATEGIES: PERSONNEL STRATEGY

teristics, and values. In this way, we strive to be a group that utilizes the concept ofC u l t i vat i n g h u m a n r e s o u r ce s w h o d e m o n st rate t h e d i st i n c t i v e st r e n g t h s o f t h e B a n d a i N a m co G r o u p

SPECIAL FEATURE:

In accordance with the Purpose, we seek to be a group in which our personnel can

MESSAGE

MAIN STRATEGIES:PERSONNEL STRATEGY53

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SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

MAIN STRATEGIES:PERSONNEL STRATEGY

Initiatives to Facilitate Active Participation by Diverse Human Resources 

HUMAN RESOURCES INITIATIVESThe Bandai Namco Group is working to create environments in

The Bandai Namco Group has positioned the personnel strategy as a main strategy in the Mid-term Plan and is working to develop
diverse human resources in a variety of fields. In addition, the Group has announced “establishment of work environments thatfacilitate mutual respect” as one of its material issues. (For further information, please refer to pages 60 to 61.) We aim to support
sustained development for society and the Company by establishing workplace environments that facilitate mutual respect andenable everyone to work energetically, including not only employees but also everyone else associated with the Group.

which diverse human resources with abundant individuality canwork energetically. In regard to securing human resources, wehave announced a policy of striving to “secure and appoint highquality human resources, irrespective of whether they are newgraduates or mid-career hires, and regardless of gender, agegroup, or nationalities.” In addition, we systematically implement
training programs in line with a variety of ranks and characteristics, from newly hired employees to managers.

Initiatives to Support Employees Who Take On Challenges Principal companies in the Bandai Namco Group have intro-

establish foundations and a corporate culture that make it easier

duced performance-linked remuneration frameworks that cor-to address challenges with a positive attitude.

relate a company’s operating profit with employee profit sharing.
In this way, we are encouraging employees to take on challenges.
In addition, we have established systems for the proposal ofnies and other systems. In these ways, we have establishedframeworks that transcend boundaries between companies and• Providing new officer training, with the objective of developing
the next generation of leaders• Training by years with the Company and by position(first year, fifth year, new manager training)• The Global Next-Generation Managers Development Program is aimed
at developing human resources who will support the Group in the future• Exchange Initiatives for Young Employees, which aim to build an understanding of operations and personal contacts within the Group throughhuman resources rotations for young employees at Group companies

Initiatives to Promote Active Careers for Diverse Human Resources• Establishment of special subsidiary for promoting the employment ofpeople with disabilities• Employment of seniors (hiring people who are past the retirement age
but want to continue working as senior employees; introducing
a retirement age of 65 in certain companies; framework for the active
employment of seniors/experienced employees)

als. Furthermore, by introducing systems that give recognition toteams and employees for taking on challenges, we are working toThis team received the 2021 Best Innovator Award at theBandai Namco Awards, a Groupwide recognition system

Addressing Diverse Working Styles 
The Group is operating a variety of systems to achieve work–lifeEntertainment Inc., BANDAI CO., LTD., and Bandai Namcobalance, such as systems to support child-rearing with peace ofAmusement Inc. have received certification from the Minister ofmind. Other initiatives include the introduction of a system to pro-

Health, Labour and Welfare (Kurumin certification) in recognition ofvide congratulatory money for childbirth, the provision of facilities totheir support of child-rearing. In addition, in accordance with the Act

nursery schools certified by Tokyo Prefecture, and the introduction

on Promotion of Women’s Participation and Advancement in theof satellite offices. Furthermore, we have introduced systems that

Workplace, Bandai Namco Entertainment Inc., BANDAI CO., LTD., andaddress family circumstances, including not only child-rearing but

Bandai Namco Business Arc Inc., received the Eruboshi certification

also family nursing and caregiving, etc.

as companies with excellent initiatives in promoting the participa-

In accordance with the Act on Advancement of Measures to

Examples of Systems to Promote Achievement of Work–Life Balance (Programs That Surpass Legal Requirements)
SystemOverview

Childcare leave

Can be taken until the day the child turns two years old.

Childcare support

Available until March 31 of the year in which the child completes sixth grade. In addition to shorter working hours, includes
exemption from overtime and late-night work.

Childbirth leave for spouses

Employees can take up to five days of paid leave when their spouse gives birth.

Flextime system

Normal working hours are determined not on a daily basis but on a monthly basis.

Child-rearing flextime system

Up to March 31 of the year in which the child completes sixth grade, core time can be adjusted in linewith childrearing circumstances.

Lifestyle-support system

Data on Diversity at the Bandai Namco Group (FY2022.3)
Gender ratio for full-time, permanent
employees*

Provision of ¥200,000 at the birth of each of the first and second children.
Provision of ¥3,000,000 at the birth of each of the third and subsequent children.
(Acquisition of childcare leave for one continuous week or more and submission of a child-rearing report are requirements
for the receipt of this support.)
Introducing a lifestyle-support system with the objective of establishing supportive environments for employees ina variety of household circumstances.
Offering 30-day leave as well as shorter working hours/flextime, in accordance with the reason.
Examples of reasons: (1) truant children, (2) infertility treatment, (3) family nursing or caregiving for spouses andfirst- and second-degree relatives of employees, and (4) receiving outpatient care at medical facilities due to disease

Women:

Men:(33.3%)(66.7%)

1,146 people

2,297 people

Gender ratio for managers*

Job separation rate (men and women)*
Men:

Women:

3.29% 4.39%

Gender ratio for new hires*

Women:

Men:(21.5%)(78.5%)

168 people* Total for five business management companies

tion and advancement of female employees in the workplace.

Support Raising Next-Generation Children, Bandai Namco

Provision of support funds forchildbirth and childcare

MAIN STRATEGIES: PERSONNEL STRATEGY

departments and enable employees to make their own propos-

615 people* Total for five business management companies

Women:

54 people(39.4%)

Men:

83 people(60.6%)* Total for five business management companies

Number of non-Japanese employees*

Number of mid-career hires*

80 people

119 people* Total for five business management companies* Total for five business management companies

Employment rate for people withdisabilities*

Age structure of workforce*

Inclusion in indexes

2.30%

1.4%

50.6%

50 to 59

30 to 39

* Total for five business management companies. Numberof voluntarily retiring employees in FY2022.3 (excluding
permanent transfers to another company and thoseretiring at retirement age) divided by the number offull-time, permanent employees as of April 1, 2021

* For consolidated subsidiaries that entrust work to
special subsidiary Bandai Namco Will Inc.

60 and over

9.3%

Under 30

21.2%

40 to 49

17.5%

SPECIAL FEATURE:

ideas regarding IP, products, and services for Units and compa-

Bandai Namco Will Co., Ltd., a special subsidiary, supports the Group’s businesses in a variety
of ways, such as office management and toy and game development support

Examples of Groupwide Development Programs* Total for five business management companies

Included as a constituent stockin the MSCI Japan Empowering
Women Index (WIN),
which is composed of shares of companies
with superior gender diversity.

Note: Systems used by Group companies are different.

54

55

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MAIN STRATEGIES:PERSONNEL STRATEGY

Initiatives for New Working Styles That Draw On Bandai Namco’s Distinctive Characteristics 

Initiatives to Develop Human Resources Aligned with Business Characteristics

Initiatives for Working While Remaining Healthy in Body and Mind
We are implementing a variety of initiatives so that employees

working hour intervals. Moreover, as a mental health measure,can work while remaining healthy in body and mind. As

we have implemented stress checks and established a system forcountermeasures to long work hours, we have taken such steps

personal consultations with industrial physicians.

as establishing a limit for overtime hours and implementing

Initiatives to Prevent the Spread of the COVID-19 Infection

TOPIC

01

Toys and Hobby Business

Meister System—A Mission to Hand Down Skills in
Manufacturing

MeisterAt the BANDAI Hobby Center, which produces plastic models, BANDAI SPIRITS CO.,LTD.

From the perspective of preventing the spread of COVID-19, theMoreover, we have approached the changes resulting fromis working to enhance and pass down plastic model production skills in order to con-Bandai Namco Group continues to conduct its business activities

COVID-19 as opportunities to transition to new working styles,

tinue to meet customer expectations and increase the value of plastic models. In thewhile implementing necessary safety measures in accordance

and we have established the Bandai Namco Group New Working

production of plastic models, deep knowledge and experience in manufacturing pro-with the guidelines of national governments and local govern-

Style Guidelines. These guidelines recommend such measures as

cesses are indispensable. In order to continually hand down these skills, BANDAI

ments. We are strengthening the communications environment;

advancing work classification and efficiency; enhancing work–life

SPIRITS has introduced the Meister System.

taking steps to establish a work environment that facilitatesbalance; creating new forms of communication that integrate

remote participation, such as for meetings and training; andonline and real elements; introducing flexible working styles,

employees who pursue product quality and have developed knowledge and outstanding skills. Other aims include developing suc-promoting teleworking. In addition, we are implementing

such as working from home and rotation work; effectively using

cessors and further enhancing skills at the BANDAI Hobby Center. Employees are recognized as Meisters after fulfilling the require-a variety of initiatives to prevent the spread of COVID-19.

satellite offices; and moving away from the use of paper.

ments and going through an interview process, and these employees then work to achieve the objectives described above. There are

The Meister System was started in 2012. One aim of the system is to recognize

Junior Meister

Entry Meister

Meister System

We introduced an employee stock ownership plan with theJapan who contribute a set amount or more each month will

objectives of encouraging employees to aim to raise thereceive special incentive shares in accordance with each year’s

corporate value of the entire Group from the perspective of

operating profit. Moreover, proposal briefings are provided toshareholders, as well as cultivating a sense of unity within theemployee shareholders to explain the importance of the share-

Group. In addition, to further increase employee participation inholders’ meetings and the details of proposals. (For FY2021.3 andmanagement, over the period from FY2022.3 to FY2025.3, which

FY2022.3, there is an explanatory video.)ways, we are working to further enhance and improve the system.

TOPIC

02

IP Production Business

Developing the Creators Who Will Support the Next
Generation of Animations

MAIN STRATEGIES: PERSONNEL STRATEGY

further active work opportunities for Meisters who have reached retirement age and to promote the handing down of skills. In these

Initiatives That Use Stock 

SPECIAL FEATURE:

three levels of Meisters—Meister, Junior Meister, and Entry Meister. From 2019, we established the Matured Meister system to provide

will be the final year of the Mid-term Plan, Group employees in
Bandai Namco Filmworks Inc. has established the SUNRISE Drawing Academy and the
SUNRISE Art Academy, which aim to develop the human resources who will support theSupply Chain Initiatives 
In addition, BANDAI CO., LTD., implements BANDAI Factory Audits

Amusement only conducts business with suppliers that are not(BFAs), which combine quality audits and Code ofengaged in illegal activity.

Conduct (COC) audits, at overseas final packaging plants thatnext generation of animation. Under this system, each of these academies selects students from the applications received in accordance with the guidelines. These students
are then provided training related to animation drawing and art. The aim is for the
students to acquire skills and knowledge that will enable them to actively contribute to

make BANDAI products (180 plants in FY2022.3). The basic policy

actual work after six months to a year of practical training, with working animators, art

for BFAs is the BANDAI COC Declaration, which calls for strict

directors, and art staff serving as instructors. The training is provided for free, and we

observance of eight COC standards (forced labor, child labor,

have established a system for grants of ¥100,000 per month so that students can con-working hours, wages and allowances, punitive action, discrimi-

The SUNRISE Drawing Academy

centrate on acquiring skills. (There are conditions for these payments.) Students whonation, environmental protection, and origin of products). Audits

pass the graduation exam are given the opportunity to work as staff members at Bandai

are conducted in accordance with our original BFA manual. The

Namco Filmworks after graduation. The graduates include people who are working in

BANDAI COC Declaration, management manual, etc., are pre-such positions as director and animation director for products made by companies inpared in Japanese, English, and Chinese. They are also available

the IP Production Unit, such as the Mobile Suit Gundam series, the Love Live! series, andon websites for production partner companies. In these ways, we

the Aikatsu! series. We have also opened the Technical Directing School and theare working to promote understanding and awareness of the

Scenario School, where highly experienced technical directors and well-known script-

latest information.

writers give lectures to employees. Through these initiatives, we are working to build

Furthermore, when it starts to do business with a supplier,

The SUNRISE Art Academy

foundations for the industry to support the continued provision in the future of high-Bandai Namco Amusement Inc. implements a CSR Procurement

quality animation products, and to develop the creators who will support the Group’s

Questionnaire that includes human rights (prevention of forced

future IP creation.

labor, discrimination, harassment, etc.). Bandai Namco
BANDAI COC Declaration

56

57

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SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

DIALOGUE

MAIN STRATEGIES:SUSTAINABILITY

Sustainability Activities—Connecting to a Smile into the Future

DIALOGUE
Sustainability Activities—Connecting to a Smile into the Future

Deepening connections inside and outside
the Group, implementing sustainability
activities that leverage
our distinctive strengths

Koji Tsuyuki	General Manager, Sustainability Management

Yuji Asako	Director and CSO (Chief Sustainability Officer)

Department, Corporate Planning Division
Bandai Namco Holdings Inc.

Bandai Namco Holdings Inc.

	Joined BANDAI CO., LTD., in 1992. After working in toys,	Joined BANDAI CO., LTD., in 1986. Since 2005, hasapparel, general affairs, and other areas, became

worked in internal and external communications at

Sustainability, which is one of the main strategies in the Mid-term Plan, is extremely signifi-

director at Bandai Namco Business Arc Inc. in 2021

Bandai Namco Holdings Inc., including IR, PR, SR,(current position). Became general manager of theand other areas. In addition, is responsible for

Sustainability Management Department in April 2022.

sustainability activities.

the Group’s sustainability activities met to discuss the status of a series of initiatives andfuture-focused issues from their perspectives as CSO and a frontline executive.

To address the demands of society
Asako
and realize the Purpose, the Grouphas redefined the activities that it has implemented as corporate social responsibility(CSR) initiatives. These are now defined assustainability activities that target the realization of a sustainable society, and they
have been incorporated into the current
Mid-term Plan. In addition, the Group CSR
Committee, which reported directly to thepresident, has been reorganized into theGroup Sustainability Committee, which is
The Group CSR Committee has been renamed
the Group Sustainability Committee andupgraded to a committee that is directly underthe Board of Directors
From April 2022
Independent Directors Committee
Board ofDirectors

Personnel Committee
Group Sustainability Committee

Group Risk Compliance Committee
Representative
director

Group Information Security
Committee
Internal Control Committee

58

under the Board of Directors. Participants inthe committee include full-time directors of
the holding company and presidents andrepresentative directors of business management companies. The committee aims to
make prompt decisions and implement
measures reflecting cooperation between
management and operations. Furthermore,sustainability-related evaluation has been
added to the officer remuneration systemfrom FY2023.3. This has clarified the responsibility of leaders in this area. My role as CSO
is to oversee this series of initiatives andmake sure that they are on track.
The Sustainability Management
Department, which I am responsible
for, was established in April 2022. In addition
to advancing initiatives related to material
issues (important themes, for further information please refer to pages 60 to 61), We covera wide range of fields that are necessary forincreasing the Group’s sustainability, such ascrisis management, information security, andcompliance. We are providing support for theformulation of Group policies in each field
and the establishment of road maps and KPIs
for each business company. In accordancewith the instructions of the CSO, I am working
as a liaison between management and thefront lines.
Tsuyuki
Current Status of Initiatives
In advance of the start of the current Mid-term Plan, we once again
considered the appropriateness of theimportant CSR themes that we had been
implementing, and we specified material
issues, which are important themes that
we must address on a priority basis. We are
now in the phase of spreading throughout
the Group the material issues specified in
the current Mid-term Plan and advancing
initiatives. The Independent Directors
Committee, which is composed only of
independent outside directors, has provided
the opinion that there is a need to further
deepen discussion about sustainability at
meetings of the Board of Directors. Withconsideration for that opinion, at an off-site
meeting in which all directors participated,
we are taking steps to deepen deliberations,such as making sustainability one of thethemes. Furthermore, on the front lines, wewill thoroughly reconsider current systems
and initiatives and quickly establish initiatives to address issues. We will also further
strengthen educational activities forthe human resources who implement
activities.
Asako

I think that fostering awarenessabout sustainability activities is anurgent issue. We distributed a sustainabilityrelated questionnaire to Group employees.
The results showed that employees arehighly interested in the SDGs and sustainability activities using IP, etc. On the other
hand, we also realize that there are differences in employee awareness between
businesses, companies, and regions. I think
we should carefully reflect on this employee
feedback, strengthen educational activities
within the Group, and strive to enhanceawareness on a Groupwide basis.
Tsuyuki

IP is a strong advantage for theGroup in the implementation ofsustainability activities. The Gunpla
Recycling Project (for further information
please refer to page 62) is a good example.
Activities based on the use of IP and connections with fans are extremely important fromthe perspective of realizing the Purpose.
Going forward, we will highlight this example
throughout the Group and implement
various measures that utilize IP.
AsakoAddressing Climate Change
The Bandai Namco Group is currently working aggressively to
reduce Scope 1* and Scope 2* CO2 emissions
world wide. The Group has a wide range ofbusinesses and engages in transactions withan extremely large number of suppliers.
Accordingly, addressing Scope 3* will be anissue for the future. However, we recognizethat reducing CO2 emissions is an important
duty of companies, and accordingly we plan
to implement activities to calculate andreduce these emissions. Addressing climatechange will be essential in order to make theGroup’s operations sustainable. Goingforward, we will approach this issue witha sense of mission.
Asako* Scope 1: Direct emissions from in-house activities(fuel consumption, industrial processes)
Scope 2: Indirect emissions accompanying the purchaseand use of electricity, heat, and steam
Scope 3: Emissions of other companies related tobusiness activities


Sustainability throughout the GroupFor the Sustainability Management
Department, the most important
issues right now are increasing the Group’s
Tsuyukiawareness and creating environments thatfacilitate the implementation of activities
while connecting with Group companies. Thisis because connections extending across theGroup make it possible to transition to activities that are more effective. We will work tofirmly fulfill our own role so that sustainability
can be pursued on a Groupwide basis froma comprehensive perspective, including risk
management, information security, andcompliance.

MAIN STRATEGIES: SUSTAINABILITY


Transition from CSR to Sustainability—Background and Principal Missions

SPECIAL FEATURE:

cant in relation to the Purpose. Two members of the Group who work in the promotion of

The business companies, which
actually implement and manage
operations, and the holding company, whichworks to raise the level of the entire Group,
are both essential for Bandai Namco.
Through solid collaboration between thebusiness companies and the holding company, we can make great strides with oursustainability initiatives. Moving forward, we
will enhance those frameworks and steadily
advance initiatives targeting the major areaof realizing a sustainable society. We will
always return to our Purpose—connecting
and working together to create things—andconnect in an open manner with diverse
stakeholders inside and outside theCompany. Together with our stakeholders,we will strive to make progress towarda brighter future.
Asako

59

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SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

MAIN STRATEGIES:SUSTAINABILITYSUSTAINABILITY MANAGEMENT

Specification of material issues 
Aiming to enhance the effectiveness of CSR activities, since 2010

a sustainable world as a member of society. In that process, we

Our Purpose, “Fun for All into the Future,” has been positioned as the ultimate definition of the Group. In accordance with

the Group has taken steps to address the Bandai Namco Group’s

specified the Group’s material issues (reviewed the appropriateness

Important CSR Themes, which have been periodically reviewed. Inof important CSR themes) based on the Bandai Namco GroupFY2022.3, with consideration for recent changes in the business

Sustainability Policy. Since April 2022, based on the specified

environment as well as the expanding expectations and demands

material issues, we have been working to establish targets andof communities, we implemented a revision of CSR activities with

implement initiatives. The Group's material issues were decided

the objective of developing them into sustainability activities inthrough the process shown below.

the purpose, we have formulated the Sustainability Policy for implementing initiatives that use the IP axis strategy and leverage our distinctive strengths. To implement that policy, five themes that will need to be addressed by focused initiatives
have been identified as material issues (important themes), and on that basis we are implementing activities.

order to fulfill our responsibility in regard to the realization ofBandai Namco’s Purpose

Listing

The ultimate definitionof the Group

STEP

1

Major SDGs targets that the Groupwill focus on

Specification

Mapping

From the perspectives outlined below, we created a listof social issues to be analyzed
and narrowed the list to
20 items.

STEP

2

We mapped these items on
two axes: importance tostakeholders and importanceto the Bandai Namco Group.

STEP

3

We incorporated the content
of management deliberations
and specified the material
issues. We obtained comments from outside experts.

Sustainability Policy
Extremely Important

Perspectives that are emphasized
during specification/verification
The Bandai Namco Group’s Purpose
The Bandai Namco Group Sustainability Policy
The Bandai Namco Group Compliance CharterAt business segments and affiliated business companies, we have formulated major
initiatives and KPIs, and through business operations we are advancing sustainability
activities in alignment with material issues.

The Bandai Namco Group Mid-term Plan
Related Group policies/guidelines

Extremely Important

Trends and Demands of Society in Japan and Around the World

Various policies and guidelines from international institutions, research institutions, and governments

Sustainability Promotion System 
The Bandai Namco Group has established the Group SustainabilityGroup Sustainability Committee. The manager of the Group

Committee, which comprises the Company’s full-time directors,

Sustainability Subcommittee is a director of Bandai Namco

the presidents of business management companies, and others.

Holdings with related responsibilities (chief sustainability officer),

The committee is chaired by the Company’s president and repre-

and the participants include the people in charge of sustainability

sentative director. In this way, the Group is advancing ­sustainability

at each business management company and at major affiliatedactivities rapidly and in a manner that is integrated with opera-

business companies. The subcommittee’s activities include shar-tions. In addition, in accordance with the idea that the promotion

ing the status of progress with initiatives that address materialof sustainability activities is an important initiative from theissues in each business, exchanging information, and discussing

perspective of management strategy, the status of activities isvarious issues. The specific measures formulated by the Group

periodically reported to the Company’s Board of Directors.

Sustainability Subcommittee are implemented after being dis- xample: Sustainable Development Goals (SDGs), Ministry of the Environment’s Environmental Reporting Guidelines, GRI Guidelines, TCFD recommendaEtions, SASB Standards, ESG evaluation institution guidelines and reports (CDP, MSCI, Sustainalytics, FTSE), etc.
Interviews with outside experts
Consumer surveys (implemented at irregular intervals)
Initiatives of companies that are advanced in regard to sustainability

Five material issues Harmonious
coexistence with
the naturalenvironment

cussed by the Group Sustainability Committee.

Moreover, we have established the Group Sustainability
Subcommittee, which is a subordinate organization under the

P.67

Board of Directors

Harmonious
coexistence with
communities

President and Representative Director, Masaru Kawaguchi

Participants	Full-time directors; presidents and representative directors of business
management companies, etc; other designated individuals
Schedules

SemiannuallyGroup Sustainability Subcommittee

60

Five

P.62–63

Provision of
appropriate
products
and services

P.64–65

material issues

Group Sustainability Committee
Chair

Importance to the Bandai Namco Group

MAIN STRATEGIES: SUSTAINABILITY

Material Issues (Important Themes)

Material Issues

Importance to Stakeholders

The Bandai Namco Group’s Approach and Policies

SPECIAL FEATURE:

Based on the IP axis strategy, the Bandai Namco Group will work
together with fans to advance sustainability activities that focus
on the social issues that the Group should address.

Agenda / Purpose	Discussions and sharing of information related to the Group’s importantsustainability strategies; consideration of matters to be resolved andmatters to be reported at meetings of the Board of Directors as well asother deliberations; overall supervision of the Group Sustainability
Subcommittee; overall supervision of progress with material issues foreach Unit and affiliated business company

P.54–57

Establishment ofwork environmentsthat facilitate
mutual respect

Appropriate
utilization andprotection of
intellectual
property

P.66

Unit sustainability projects

61

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SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

MAIN STRATEGIES:SUSTAINABILITY

Harmonious coexistence with the natural environment
We believe that the promotion of business operations that reflect consideration for the natural environment is essential forthe achievement of sustainability for society and for companies. Together with a variety of stakeholders, the Group is aiming
for harmonious coexistence with the natural environment.

Initiatives to Reduce CO2 Emissions 
The Bandai Namco Group is working to reduce CO2 emissions andamusement facilities, we are successively switching to renewable

has set objectives for the reduction of CO2 emissions each year inenergy. We are also implementing energy-saving initiatives oneach business Unit. As a result, the Group’s overall emissions in

a Groupwide basis, such as increasing operational efficiency at

FY2022.3 were 52,016 t-CO2, a reduction of 10.6% in comparison

plants, aggressively utilizing LEDs at events and amusementwith FY2020.3 (reduction of 29.7% in comparison with FY2014.3).

facilities, and pro-As initiatives targeting decarbonization, in certain buildings inmoting eco-driving

which Group companies are occupants, nearly all of the electricity

at logistics

used has been switched to electricity from renewable energy

subsidiaries.

The Bandai Namco Group believes that measures to address climate change are necessary for the realization of a sustainable society and forbusiness continuity. Accordingly, in April 2021 we formulated the Bandai Namco Group Sustainability Policy and established medium- to longterm targets for the transition to a decarbonized society. As we aim for the realization of a sustainable society, we will link these initiatives tosustained growth for the Group.

GovernanceRisk Management

Under our sustainability promotion system, following deliberationand consideration by the Group Sustainability Committee, which isled by the president and representative director, reports are made to
the Board of Directors, which handles supervision.

In regard to risks and opportunities, following deliberation andconsideration by the Group Sustainability Committee, the Group
formulates and implements various measures. Furthermore, in regard
to energy-related emissions of carbon dioxide, we have formulated
numerical reduction targets for each business segment and are
advancing measures in line with business characteristics. Each year,
we calculate* and analyze emissions volumes for the Group as awhole and for each business segment, and we use this information
to improve measures in subsequent years. The status of reductions
and the results of analyses are discussed by the Group Sustainability
Committee, and then reports are made to the Board of Directors,
which handles supervision.

GUNDAM FACTORY YOKOHAMA

We are working to reduce materials used in, and promote recy-

greenhouse gas emissions in the processes from manufacturing

cling of, packaging and containers. For example, regarding theto incineration by approximately 30%, and we plan to expand its

capsule material for Gashapon capsule toys, in 2013, BANDAI CO.,use going forward.

LTD., introduced the “MONO capsule,” which is approximately

In addition, BANDAI SPIRITS

60% of the weight of previous capsules. This was achieved

CO., LTD., is actively switching

through the use of a single material and a reduction in thefrom plastic blister packaging toamount of plastic used. Currently, we have shifted to lighter

cardboard packaging for its

models for nearly all capsule containers. Moreover, from June

character lottery products.

2022 we introduced the “MAP capsule,” which used paper as its* Each year, the calculated environmental data is verified and reviewed by Bureau Veritas
Japan Co., Ltd., a third-party institution. The results are made available on our website as
an independent assurance report.

Bandai Namco Group CO2 emissions
For the Fiscal Years Ended March 31

52,016t-CO2

RISKS AND OPPORTUNITIES THAT COULD AFFECT THE GROUP’S BUSINESSES

Vs. FY2020.3: reduction of 10.6% (vs. FY2014.3: reduction of 29.7%)
73,996

MAIN STRATEGIES: SUSTAINABILITY

Reducing Materials Usage in Packaging and Containers 

In accordance with the Bandai Namco Group Sustainability Policy(page 60), we established targets regarding decarbonization. In setting
targets, at meetings of the Group CSR Committee (currently, theGroup Sustainability Committee) and the Board of Directors, discussions were held regarding the demands of society, including the TCFD
recommendations, and the impact of climate change on the Group.
In conjunction with the formulation of the Mid-term Plan, whichstarted from April 2022, we formulate and implement more specificmeasures to achieve our targets. Based on the transition risks underthe 2°C scenario and the physical risks under the 4°C scenario, we areconducting the following analyses regarding the Group’s risks andopportunities.

SPECIAL FEATURE:

that is displaying the Moving Gundam, switched to renewableenergy for the power used to exhibit the moving Gundam. In addi-

Climate Change Initiatives: Addressing TCFD Recommendations

Strategysources. In addition, GUNDAM FACTORY YOKOHAMA, the facilitytion, in collaboration with the commercial facilities that house our

COLUMN• Higher raw materials costs as well as production and procurement costs due to carbon regulations and plastic use regulations

Risks• Higher costs due to the introduction of new technologies,
investment in R&D, or capital investment

59,55059,551

58,169• Property damage, supply chain interruption, or resource depletion due to natural disasters

MAP capsule52,25652,0162021

2022

primary raw material. With this capsule, we can reduce2014• Lower electricity costs due to energy-saving

Expanding Recycling Opportunities• Lower costs due to the introduction of efficient production/transportation processes• Creation of new markets due to changes in consumer preferences due to natural disasters

In April 2021, we started the Gunpla Recycling Project, which is atarget. Also, for Gashapon, we

recycling initiative implemented together with fans. At approximately

are working to collect empty

200 directly operated amusement facilities, we are collecting

capsules from stores, and in

Gundam plastic model runners (part of the plastic model frame-

FY2022.3 we collected approxi-work) from fans. The collected runners are combined with themately 20 tons of capsules.

plastic leftover from the production process. A portion is used as

The empty capsules that are

a material for verification testing targeting the realization of chem-

collected are recycled andical recycling, and the rest is reused through material recycling orused for such applications as• Advancing energy-saving measures; increasing efficiency
measuresthermal recycling. In FY2022.3, the first year, we succeeded inrecycled eco-capsules.

• Using low-carbon energy, such as renewable energy

In addition, we are implementing the following measures toaddress these risks and opportunities.
THE GROUP’S MEASURES TO ADDRESS RISKS AND OPPORTUNITIES

Measurescollecting more than 11 tons of runners, exceeding our annual
Gundam plastic model runnercollection box• Advancing recycling

2018

2019

2020

Indicators and Targets
As shown below, we have established medium- to long-term targets
for decarbonization.
MEDIUM- TO LONG-TERM TARGETS FOR DECARBONIZATION
By 2050:

TargetReduce the amount of energy-related carbon dioxide emissions at
Group business sites (offices, own plants, directly operated
amusement facilities, etc.) to net zero
By 2030:

Mid-term
target• Introducing new technologies and materials; implementing
capital investment

Main
initiatives

A 35% reduction compared with FY2020.3 (a 50% reduction
compared with FY2014.3) in energy-related carbon dioxide
emissions at Group business sites
Further promotion of energy-saving measures and introduction ofrenewable energy, etc.

Recommendations by TCFD: The Task Force on Climate-related Financial Disclosures recommends efficient information disclosure that is consistent, comparable, reliable, and clear in orderto support appropriate investment judgments in regard to the main causes of climate change.

62

63

SP E C IA

SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

MAIN STRATEGIES:SUSTAINABILITY

Implementing a Variety of Audits Provision of appropriate products and services
With our priority on the safety and peace of mind of customers, based on appropriate ethical standards, we strive to increasecustomer satisfaction by working together with partners to provide safe, high-quality products and services.

Pursuing Products and Services with Consideration for Security and Safety 

The Bandai Namco Group strictly observes the laws and regulations

and information security. Bandai Namco Amusement only con-of each country. We also establish our own standards. In this way,ducts business with suppliers that are not engaged in illegal

the Group is working to strengthen supply chain management.

activity. Furthermore, audits of plant line production manage-

We are implementing audits at all final packaging plants that

assembly plants that are starting a new transaction relationshipFor example, we are implementing BANDAI Factory Audits (BFAs),

with Bandai Namco Amusement. (No new transactions in
FY2022.3.)

highest award, in the Large Manufacturer and Importer Category ofwhich combine quality audits and Code of Conduct (COC) audits.

children and a wide range of customer needs and is working to

the Awards for Best Contributors to Product Safety, which are(Further information about BFAs is available on page 56.)

further enhance safety management systems. As one part ofsponsored by the Ministry of Economy, Trade and Industry (METI).

Furthermore, BANDAI (SHENZHEN) CO., LTD., which handles

those initiatives, in addition to toy safety standards established by

We have received the award three times—in 2008, 2012, and 2015—

production management for core products for Europe and North

the Japan Toy Association (ST Standards), BANDAI CO., LTD., hasand accordingly we have been certified as a Product Safety

America, is conducting transactions with plants that havealso established original quality standards for approximately 260

Contributor Gold Company. After five years had passed, we werereceived certification under the ICTI Ethical Toy Program, which isitems in three major categories: safety, performance, and labeling/certified under a renewal examination, and a star symbol wasa unified standard for toy manufacturers from the International

instructions. In regard to the safety of materials, we conduct

added to the Product Safety Contributor Gold Company logo.

Council of Toy Industries (ICTI). (Looking at factories with whichanalysis and inspections, both in-house and through third-party

In addition, at Bandai Namco Entertainment Inc., we have

BANDAI (SHENZHEN) implemented transactions in FY2022.3, allinspection institutions, in order to confirm that the products doformulated internal regulations and guidelines for game produc-primary factories for products for Europe and North America had

not include poisonous heavy metals or regulated chemical sub-tion. These are periodically reevaluated and continually applied.

received certification.)stances that have the potential to harm the human body. We

In this way, we are working to see that customers can enjoy

implement new product inspections to confirm these productgames with peace of mind.

that products have been
manufactured to thedetermined specifications.
Fourier transform infrared spectrophotometer:
Determining the presence or absence of regulated
chemical substances that have the potential toharm the human body

BANDAI CO., LTD. hasreceived the METI

180

companies

Notes: Implemented at all suppliers subject to audits
Results for BANDAI CO., LTD.

In addition, when it starts to do business with a supplier,
Questionnaire related to seven major items—overall CSR; humanAward Results Related to Product Safety

rights (prevention of forced labor, discrimination, harassment,etc.); safety (work environment, emergency response, etc.); theenvironment (management of chemical substances in products,

Best Contributors to Product Safety
Awards program, sponsored by the METI

waste management, etc.); fair trade and ethics; quality and safety;

Certified as a Product
Safety Contributor Gold
Company

BFA

Initiatives in Cooperation with Suppliers 

BANDAI CO., LTD.

Minister’s Award, theBANDAI CO., LTD., which conducts business with a large number ofCode of Conduct, and quality control. In addition, suppliers that

suppliers, holds supplier conferences every year.* At thesereceive awards share their know-how by giving lectures to otherconferences, we share information about human rights and labor

suppliers about their initiatives on the front lines.*

standards that are called for around the world, as well as produc-

Security and Safety in Facilities 

MAIN STRATEGIES: SUSTAINABILITY

inspections, and confirm

Number of BANDAI Factory Audits implemented

Bandai Namco Amusement Inc. implements a CSR Procurement

specifications. In addition, when manufactured products are
we implement sampling

Results in FY2022.3

SPECIAL FEATURE:

For each product, the Bandai Namco Group anticipates misuse by

shipped from the plant,

ment systems, etc., are conducted at amusement machine

make products for BANDAI CO., LTD. or BANDAI SPIRITS CO., LTD.

Moreover, Bandai Namco Entertainment Inc. shares its originaltion environment safety standards. Furthermore, BANDAI CO., LTD.,

guidelines related to ease of play for game users (usability). We

To enable a wide range of age groups to enjoy facilities safely andhas established the BANDAI Supplier Awards, which recognize

are working together with supply chains to provide appropriate

with peace of mind, the Bandai Namco Group is conducting

suppliers that maintain high levels of performance in regard to

products and services.

facility design, safety reviews, checks, and employee education.

evaluation indicators. We are working together with suppliers to* Held online in FY2022.3, to prevent the spread of COVID-19

For example, at all facilities Bandai Namco Amusement Inc.

enhance compliance with laws, regulations, etc., including theimplements safety checks for building structure, electricity, fire
prevention, cabinets, installed play equipment, etc. In addition,with the objective of cultivating places for wholesome fun, we are

Inspection of electrical equipment at directly
operated amusement facility

Implementing Timely Training and Collecting and Sharing Information regarding Expression 

promoting the acquisition of AOU Youth Advisor certification, forthose with specialized knowledge and experience in youth development activities.

Results in FY2022.3
Number of checks/reviews related to facility safety*
Facility safety checks

233

facilities

Each Unit implements a variety of employee training related to

distributing mail magazines to employees and holding study

ethical expression in order to facilitate the provision of products

sessions throughout the Group. We are also working toand services in accordance with appropriate expression. In addi-

strengthen internal systems used to confirm that expression intion, based on the latest information and past examples, we areproducts and services is appropriate.

Play equipment checks

44

locations* Results for Bandai Namco Amusement Inc.

64

65

SP E C IA

SPECIAL FEATURE: MID-TERM PLAN OF THE BANDAI NAMCO GROUP(APRIL 2022 TO MARCH 2025)

MAIN STRATEGIES:SUSTAINABILITY

Appropriate utilization and protection of intellectual property

Establishment of work environments that facilitate mutual respect

The Group is working to contribute to the sustainable development of entertainment through the appropriate use and pro-

We aim to support sustained development for society and companies by establishing workplace environments that facilitate

tection of IP (characters and other intellectual property), which are important management resources.

mutual respect and enable everyone to work energetically, including not only employees but also everyone else associatedwith the Bandai Namco Group.

Advancing IP Infringement Countermeasures in Japan and Overseas 

For further information, please refer to “Personnel Strategy” on pages 54 to 57

The Bandai Namco Group is working closely with partners inside

collaboration with government institu-

and outside the Group and with governments to protect thetions and related organizations in each

image of its IP and to ensure that its customers can enjoy worry-

country to implement effective

free use of safe products and services. We are implementing

countermeasures.

Harmonious coexistence with communities

In addition, as one facet of measures

measures targeting counterfeit goods. We monitor Japanese and

The Bandai Namco Group aims to live and grow together with local communities in order continue to be a Group that isoverseas markets, including the online market, and ask customs

to address counterfeit products,

authorities to prohibit the import of counterfeit products. In these

BANDAI SPIRITS CO., LTD., are utilizing

ways, we are working to promptly detect counterfeit products,

special specification hologram seals

prevent their appearance on the market, and secure their prompt

with forgery prevention processing. These seals, which areremoval, if found. In addition, as a member of the International

applied to all TAMASHII NATIONS brand products for the matureIntellectual Property Protection Forum, we are working in

fan base, are used to verify that a product is genuine.

Hologram seals are applied to
TAMASHII NATIONS products

and anime. Furthermore, in China, Bandai Namco Holdings China

use of IP, such as patent and trademark seminars and copyrightCo., Ltd., together with the Shanghai Library, is holding online

seminars. By company, these are offered in new employee train-

lectures with the objective of enhancing IP awareness. In this way,

ing, training for managers, training by business division, etc. In

we are working to implement educational activities.

addition, we also offer compliance training for all employees

2021, in cooperation with the Shanghai Library and the Suzhou

activities for children in Japan and seminars for employees in

Library, we utilized Gundam in the implementation of an experi-

partnership with Save the Children Japan (SCJ). In addition, eachence-based event for intangible cultural assets. For this activity, atyear Bandai Namco and shareholders give a total of ¥10 million to

the 2022 Asia-Pacific Stevie® Awards*, Bandai Namco Holdings

SCJ through the use of complimentary shareholder gifts. The

China Co., Ltd., won the Gold Stevie® Award in the category of

donated funds are used for activities implemented by SCJ that

Innovation in Public Enterprise Events.

support children in Japan.

* Stevie® Awards: Business awards established in 2002 to honor and increase recognition of
the achievements of companies/organizations and working professionals around the worldthat are actively contributing to society

In North America, we concluded a sponsorship agreement with
the Los Angeles Angels, a baseball team in California, where we haveour U.S. headquarters. In the stadium, there is signage with theusing e-learning. In these ways, we are working to implement

Bandai Namco logo and a PAC-MAN design. In addition, informationinternal educational activities.

about Bandai Namco is provided on the Angels radio station andExternally, Bandai Namco Pictures Inc. is cooperating in thesocial media. In these ways, together with fans, we are working to

production of collaborative educational films: Sergeant Frog andcreate a buzz at the baseball field through a variety of means.

NO MORE Movie Thieves. The Content Overseas Distribution

In China, Bandai Namco Holdings China Co., Ltd., is imple-

Association is working as the secretariat office for this project,

Sergeant Frog × NO MORE Movie Thieves—collaborating in
the production of educational films

which establishes countermeasures for pirated versions of manga

menting activities to protect China’s intangible cultural assets. In

Concluding a sponsorship agreement witha baseball team in North America

Utilizing Gundam in activities to protect
intangible cultural assets in China

Utilizing IP in Initiatives and Community Support for the Next Generation 

Addressing Social Issues through the Active Utilization of IP 
The Bandai Namco Group is advancing the Gundam Openspace. At this point, we have chosen 13 teams as partners. Going

Innovation project, which aims for the resolution of social issues

forward, we will promote initiatives with each team as we workthrough the use by external partners of Gundam, which is thetoward the realization of future dreams.

Group’s IP. This project recruits a wide range of new ideas andtechnologies for forward-looking social development from outside the Group. These ideas and technologies address social
issues that are portrayed in Gundam visual products, such as
population and environmental problems and advances into

Since 2011, Bandai Namco Holdings Inc. has implemented

MAIN STRATEGIES: SUSTAINABILITY

The Group is implementing seminars related to the appropriate

Initiatives for Local Communities 

SPECIAL FEATURE:

Implementing Educational Activities Inside and Outside the Company appreciated by communities and fans and is necessary for society.

GUNDAM Open Innovation

Since October 2021, BANDAI SPIRITS CO., LTD., has implemented

animation. Moreover, members of the idol group Aqours, which

Gunpla Academia, a free lesson package for students in the upper

appears in the visual product, were selected as PR ambassadors forgrades of elementary school. This initiative combines the experi-

Nishiura Mikan, which are a special product of Numazu City. We areence of plastic model assembly with online videos. The activities

also cooperating inthat are introduced include the enjoyment of manufacturing, thea public transporta-

Gundam plastic model manufacturing processes, and plastic

tion train and bus

recycling. By March 2022, this lesson package had been used inwrapping initiative.

1,400 elementary schools around the country (approximately

In these ways, we

90,000 people).

are working to use IP

In addition, Bandai Namco Filmworks Inc. is utilizing IP to support community activation measures in Numazu City, Shizuoka
Prefecture, which is the setting of the Love Live! Sunshine!!

to create buzz in thecommunity.

Supporting community activation measures that utilize
Love Live! Sunshine!!

For more information about sustainability-related initiatives, please visit the Company’s website.
Sustainability, Bandai Namco Holdings Inc.: https://www.bandainamco.co.jp/en/sustainability/index.html

6667

CORPORATE GOVERNANCE

In order to realize Bandai Namco’s Purpose, the Company and the Group sufficiently understand the importance of various
stakeholders related to the Company and have a basic management policy of maximizing the corporate value of theCompany and its shareholders’ common interests over the medium to long term. In addition, the Company believes that
construction of a solid management foundation (corporate governance) is absolutely essential in order to emerge victoriously in the global competition of the fast-changing world of entertainment. In accordance with this philosophy, theCompany has established the Basic Philosophy on Corporate Governance.
Furthermore, we truly embrace the intent and spirit of Japan’s Corporate Governance Code, and our initiatives on eachprinciple of the Code are disclosed in Initiatives Related to Japan’s Corporate Governance Code.** For more information, please visit the Company’s website.

Transition to a Company with an Audit & Supervisory Committee 
Following a resolution at the 17th Ordinary General Meeting of
Shareholders, which was held on June 20, 2022, the Company
transitioned from a company with an Audit & Supervisory Board to
a company with an Audit & Supervisory Committee. As a result, whileworking to strengthen the corporate governance system, theCompany is working to further enhance its corporate value by carrying out swifter decision-making and business execution through thedelegation of partial authority related to business execution to the
Full-Time Officers Committee. In addition, to complement the management oversight function, the Company has a basic policy that

one-third or more of directors shall be outside directors, and that allof the outside directors shall be independent outside directors.
Directors who are Audit & Supervisory Committee members audit
and supervise the Board of Directors. In addition, independent outside directors, based on their high levels of independence and specialized knowledge, fulfill their own role from an objective, neutral
position. In this way, the Company has established a system thatenables them to contribute to the bolstering of its corporate governance systems.

https://www.bandainamco.co.jp/en/sustainability/governance/index.html

Board of Directors 
Corporate Governance System Strengthen the Management Oversight Function

Term of Office of Directors
Directors who are not Audit &Directors who are Audit &Supervisory Committee members Supervisory Committee members

Number of Audit & Supervisory
Committee members

1 Year or Less

Number of independent,
outside directors

5/14

Organization

All outside directors meet the Standards for the Independence of Outside
Directors established by the Company.

Company with an Audit &Supervisory Committee

Reason for adoption: Directors who are Audit & Supervisory Committee
members will have the right to vote at meetings of the Board of
Directors. Accordingly, the Company concluded that it would bepossible to strengthen the Board auditing and supervisory functions.

Of the four directors who are Audit & Supervisory Committee
members (including two who are full-time), three meet the conditions
for independent, outside directors. They work together and monitor
the Company’s internal control situation on a daily basis. Specifically,
through such means as attendance at meetings of the Audit &Supervisory Committee and the Board of Directors, they provide
opinions from viewpoints that are independent of business execution,and from specialist viewpoints. In these ways, they play an importantrole in the decision-making process. Their activities as outside directors play an important role in the Company’s management
decision-making, and the Company believes that their appointment
is appropriate.

CORPORATE GOVERNANCE

4/14

2 Years or Less

The president and representative director of each business management company responsible for each Unit holds concurrent positions
within the Group, such as serving as a director of the Company. This
contributes to strengthening the collaborative efforts between theholding company and the operating companies and between theoperating companies and to facilitating speedier decision-making as
a Group. Of the 14 directors on the Board of Directors, five meet theconditions for outside directors. They are working to strengthen the
management supervision function. Specifically, through such means
as attendance at meetings of the Board of Directors, they provide
opinions from viewpoints that are independent of business execution,and from specialist viewpoints. These opinions are based on theirextensive experience and wide-ranging knowledge. In these and otherways, they play an important role in the decision-making process.

Main Top Management Meetings As shown in the table below, the Company holds a variety of top management meetings and has established a system that facilitates rapidly
tracking and responding to Group management information.

General Meeting of Shareholders
Appointment /Dismissal

Appointment /Dismissal

Auditing /Supervision

Appointment /Dismissal

Board of Directors
Audit & Supervisory Committee
4 directors who are Audit & Supervisory
Committee members

10 directors who are not Audit &Supervisory Committee members(of whom 2 are outside directors)

Delegation

Meeting Name

Account auditing /Reports on results

Independent auditors(of whom 3 are outside directors)

Cooperation

Independent Directors
Committee

Reports
Appointment /Dismissal /Supervision

Full-Time Officers Committee
Reports

Independent Directors Committee

Reports
Auditing

Personnel Committee

Representative director
Directions

Directions

Reports

Reports

Cooperation /Directions

Reports

Group Sustainability Committee

Group Business Report MeetingGroup Sustainability
Committee

Committees
Group Risk Compliance Committee

SupportPersonnel Committee

Full-Time Officers
Committee

Internal Auditing Division
Reports

Group Management Meeting

Board of Directors

Auditing

Group Information Security Committee
Internal Control Committee

Vision Meeting

Policy directions

Policy directions

Waigaya MeetingGroup Business Report
Meeting
Group Management
Meeting

Reports

Vision Meeting

Bandai Namco Group Companies
As of June 20, 2022

68

Chair

Schedule

Agenda / Purpose

Participants

President andRepresentative Director

Monthly andotherwise asneededDecisions/reports on matters stipulated by law, matters to be resolved in accordancewith authority standards, reports on the status of business execution, reports
regarding sustainability, crisis management, and complianceDirectors, other designated individuals

Annually

From a position independent of the Board of Directors, provision of evaluations,
opinions, proposals, etc., regarding the effectiveness of the supervisory function overthe Board of Directors, reflecting the perspectives of enhancing corporate governanceand corporate value

Outside directors, secretariat (external, third-party
specialist organization)

As appropriate

Personnel matters for Group officers, officer compensation, reporting of evaluations
and opinions regarding human resources synergies

Outside directors (excluding outside directors who are
Audit & Supervisory Committee members), representatives from the Audit & Supervisory Committee,
representative director

Semiannually

Discussions and sharing of information related to the Group’s important sustainability
strategies; consideration of matters to be resolved and matters to be reported atmeetings of the Board of Directors as well as other deliberations; overall supervision of
the Group Sustainability Subcommittee; overall supervision of progress with material
issues for each Unit and affiliated business company

Full-time directors; presidents and representative
directors of business management companies, etc.;
other designated individuals

Twice per month

Decisions/reports on matters for which authority has been delegated from the Boardof Directors; decisions/reports in accordance with authority standards; reports on thestatus of business execution

Full-time directors; presidents and representative
directors of business management companies, etc.;
other designated individuals

WeeklyWeekly reports regarding the departments for which directors are responsible, etc.

Directors (excluding directors who are Audit &Supervisory Committee members and outside
directors), other designated individuals

4 times per year

Group numerical reports, Unit reports and regional headquarters reports, risk
information, other matters to be reported

Directors, representatives of regional headquarters,other designated individuals

8 times per year

Discussions about Group management issues and mid-term plans; deliberations
regarding issues extending across Units; deliberations regarding other Groupmanagement issues and strategies; deliberations regarding Groupwide policies,
medium to long term prospects, etc.

Full-time directors (excluding directors who are Audit &Supervisory Committee members and outside directors),presidents and representative directors of business
management companies, etc.; other designatedindividuals

2 times per year

Deliberations about what the Group aims to be and medium- to long-term targets;deliberations about addressing ongoing issues

Directors, other designated individuals

Masaru Kawaguchi
Director (Outside)

Koichi Kawana
Director (Outside)

Koichi Kawana
President andRepresentative Director

Masaru Kawaguchi
President andRepresentative Director

Masaru Kawaguchi
President andRepresentative Director

Masaru Kawaguchi
Director

Yuji Asako
President andRepresentative Director

Masaru Kawaguchi
President andRepresentative Director

Masaru Kawaguchi

Note: Planned to be held in FY2023.3

69

CORPORATE GOVERNANCE

Evaluations of Effectiveness of the Board of Directors 

Policies and Processes for Appointing Directors 
Policies and Processes for Appointing Directors
The appointment of directors is based on candidates possessing broad knowledge and experience required for decision-making on­company management, as well as possessing the track record and insight in the fields and businesses they have experience in that are
required in order to provide management oversight. In addition, the Company has a basic policy that one-third or more of directors will beoutside directors.
When appointing candidates for director, the Company considers the necessary abilities, experience, and personality, etc., according to
the role. Inquiries are made to the Personnel Committee and recommendations are received, and independent, outside directors holdinterviews with new director candidates. Decisions are then made by the Board of Directors.

Appointing Independent, Outside Directors
Appointments are made with consideration for an appropriatebalance of, for example, individuals who possess a wealth of experience as corporate managers, attorneys-at-law who have thoroughknowledge regarding compliance and other aspects of internal
control, and certified public accountants and certified public tax
accountants who are experts in accounting and tax affairs.

Policies and Processes for Appointing Candidates for Directors
who are Audit & Supervisory Committee Members
The necessary abilities, experience, and personality, etc., areconsidered, and decisions are made by the Board of Directors
after receiving consent from the Audit & Supervisory Committee.

analysis and verification based on the results and provides theiropinions to the Board of Directors. Based on these opinions, theBoard shares the results of the evaluation of present circumstances aswell as issues, and holds constructive discussions regarding future
action plans.

Roles and Duties of the Personnel Committee Related to Officer Remuneration, Etc. 
Independent, outside directors make up a majority of the Personnel
Committee, which is an optional committee that is chaired byan independent, outside director. The Personnel Committee holds
appropriate deliberations about the validity of systems for officer
remuneration, including the basic policy for the Group’s officer
remuneration system, the remuneration framework, the variable
remuneration framework, etc. These deliberations are based on
objective information related to officer remuneration (most recent
system status, trends at other companies, etc.). The committee thensubmits a report to the Board of Directors. The Company’s Board of
Directors accepts the report and makes the final decision on thedetails of the officer remuneration system. In addition, in the sameway, the board of directors for each of the business managementcompanies, etc., accepts the decision of the Company’s Board of
Directors and makes the final decision on the details of the officer
remuneration system for the business management company, etc.
In some cases, as necessary in the conduct of deliberations, external remuneration consultants, etc., attend meetings of the Personnel
Committee or provide information to the committee. This is intended
to provide support for effective deliberations and consensus formation. Opinions, etc., as to appropriateness regarding the details of thereport to the Board of Directors are not received.

established within a third-party specialist organization. This arrangement facilitates the maintenance of a more effective oversight function in the Board of Directors.

Composition of the Personnel Committee/Committee Chair
The Company’s Personnel Committee has a maximum of seven members, with independent, outside directors making up a majority ofthe members. The chair of the committee is an outside director elected by the outside directors.

CORPORATE GOVERNANCE

Activities of the Personnel Committee

Independent Directors Committee To evaluate from an objective standpoint whether the Board of
Directors is functioning appropriately, the Company has formed theIndependent Directors Committee. This committee comprises just fiveindependent outside directors, and its secretariat function has beenWith the objectives of heightening the effectiveness of the Board of
Directors and increasing corporate value, evaluations of the effectiveness of the Board of Directors are conducted periodically. Specifically,questionnaires regarding 10 evaluation items that have been determined in advance are implemented, and responses are obtained fromall directors. Then, the Independent Directors Committee conducts

Status of Activities of the Personnel Committee
Since the Ordinary General Meeting of Shareholders held in June 2022, the composition of the Personnel Committee is as follows.

Outside Directors 
Of the Company’s 14 directors, five are outside directors, and all of theoutside directors are independent, outside directors. In this way, theCompany is working to strengthen the management oversightfunction.
The Company has established Standards for the Independence ofOutside Directors, and outside directors are appointed in accordancewith those standards. In the Company’s judgment, the outside directors meet those standards, there is no concern that they will havea conflict of interest with general shareholders, and they possess highlevels of independence. Accordingly, the Company has notified theTokyo Stock Exchange (TSE) that they are all independent directors inaccordance with TSE regulations.
The status of audits by internal auditors, audits by the Audit &Supervisory Committee, and account audits are reported to the Boardof Directors. By attending meetings of the Board of Directors, theoutside directors (excluding directors who are Audit & Supervisory
Committee members) track the status of these audits and work tomaintain close ties.
In addition to tracking the status of internal audits reported atmeetings of the Board of Directors, outside directors who are Audit &Supervisory Committee members track the status of audits by the70

Audit & Supervisory Committee at meetings of the Audit &Supervisory Committee and work to maintain cooperative relationships with the internal audits and the Audit & Supervisory Committee
audits. In addition, all directors who are Audit & Supervisory
Committee members receive explanations from the independent
auditors of the status of account audits on a quarterly basis. In thisway, they track the status of these audits and maintain cooperative
relationships with the account audits.
Furthermore, through matters brought to the Board of Directors,
outside directors (including directors who are Audit & Supervisory
Committee members) track the status of internal control departments
within the Company and provide advice. In addition, they attend theGroup Business Report Meeting, where reports on the status of theGroup’s operations are made; work to strengthen the supervisionfunction; and provide advice as needed.
Moreover, as an outside director support system, the Corporate
Planning Division provides support. In regard to the communicationof information from the Corporate Planning Division, principally,materials are sent prior to meetings of the Board of Directors andexplanations are provided as needed.

People4 people (1 executive director and 3 outside directors)

Committee chair

Director (Outside) Koichi Kawana

Members

Director (Outside) Toshio Shimada, Director (Audit & Supervisory Committee member, Outside) Satoko Kuwabara,
President and Representative Director Masaru Kawaguchi

In the decision-making process for the amounts of compensation for FY2022.3, deliberations by the Personnel Committee were helda total of five times. The chair and the members all attended on each of these occasions, and the attendance rate was 100%. The major
agenda items were as follows.

Meeting dates

Major agenda items

May 31, 2021

Payment amounts for FY2021.3 performance-based bonuses and performance-based stock compensation for theCompany, Unit core companies, etc.
Calculation method for FY2022.3 performance-based stock compensation

August 2, 2021

Officer remuneration system from the fiscal years covered by the next Mid-term Plan (main points of system)

September 22, 2021

Officer remuneration system from the fiscal years covered by the next Mid-term Plan (details of system)

December 1, 2021

Officer remuneration system from the fiscal years covered by the next Mid-term Plan (final draft)

January 28, 2022

FY2023.3 officer remuneration for the Company, business management companies, etc.

71

CORPORATE GOVERNANCE

Matters Related to the Policy regarding Decisions about the Amountand Calculation Method for Remuneration, Etc., for Directors (From June 20, 2022) 

Fixed remuneration (base remuneration)
The base remuneration for directors of the Company (excluding
directors who are Audit & Supervisory Committee members) ismonthly fixed remuneration paid in cash and paid within a specifictime period every month. The limit is ¥450 million per year (including
a maximum of ¥100 million for outside directors) pursuant to a resolution at the 17th Ordinary General Meeting of Shareholders held on
June 20, 2022. In addition, Company directors, excluding directors
who are Audit & Supervisory Committee members and outside directors, contribute a fixed proportion of the base remuneration to theshareholding association for directors and officers to purchase theCompany’s shares. During his or her term of office, each director
continues to hold such shares, as well as shares acquired throughperformance-based stock compensation.
Variable remuneration (performance-based bonuses and­performance-based stock compensation)
As for variable remuneration of the Company, both performance-based
bonuses and performance-based stock compensation use consolidated
operating profit of the Group as an indicator with the aim of directlyreflecting the evaluation on management efforts by the management
team of the Group in the amount of remuneration to be paid.

72

Performance-based bonuses
Performance-based bonuses are calculated within a range of 0% to200% of the predetermined base amount based on the rates ofachievement of the mid-term targets, fiscal year targets, and year-onyear targets for the Group’s actual consolidated operating profit, foreach fiscal year, with the payment ratio changing within that range
depending on the results of sustainability evaluations that have been
newly adopted. If any of the rates of achievement is 50% or lower,
performance-based bonuses will not be paid. In accordance witha resolution of the 17th Ordinary General Meeting of Shareholders,which was held on June 20, 2022, performance-based bonuses will be
determined within a limit of the smaller of (i) ¥550 million per year as
the limit for cash bonuses or (ii) 1.5% of the “profit attributable toowners of parent for the period.” The remuneration is paid withina specific time period every year after the end of the relevant fiscal year.
Sustainability evaluations are conducted for the purpose of motivating the eligible directors to address sustainability, and the evaluations are determined by the Board of Directors by examining factors
such as the results of activities for the Group’s initiatives in line with its
materiality (including initiatives for decarbonization) and indicators
relating to employee engagement after deliberation by the Personnel
Committee, which is an optional committee chaired by an independent outside director and of which a majority of the members are
independent outside directors.
Performance-based stock compensation
Performance-based stock compensation is provided only when theGroup’s consolidated operating profit is ¥75 billion or higher, and thepayment ratio will be 100% if the consolidated operating profit reaches¥125 billion (the target for the last fiscal year under the Mid-term Plan).
In accordance with a resolution of the 17th Ordinary General Meeting of
Shareholders held on June 20, 2022, the upper limit is the amountobtained by multiplying 45,000 shares by the Delivery Share Price* per
year. Whether or not performance-based stock compensation will be paid
and the level of payment are decided each fiscal year. Under the framework, the number of reference share units is predetermined for each
officer rank, and shares of common stock of the Company and cash
corresponding to the number of payment share units, which are finalizedbased on the degree of attainment of the consolidated operating profit
target, will be delivered or paid. Furthermore, the performance-based
stock compensation will be paid within two months from the day following the day on which the figure of the performance based indicator(consolidated operating profit of the Group) is finalized.
* Delivery Share Price is the closing price of common stock of the Company on the Tokyo
Stock Exchange Prime Market on the business day immediately preceding the date of theresolution at the Board of Directors’ meeting to deliver the Company’s common stock
related to the performance-based stock compensation system held within two months fromthe date of the Ordinary General Meeting of Shareholders pertaining to each fiscal year
under evaluation (if the Company’s shares were not traded on that day, the closing price on
the last day the shares were traded prior to that).

Remuneration structure
The Company determines the remuneration structure by verifying thelevel of remuneration based on its performance results and objective
benchmarks for the management’s remuneration obtained fromexternal specialist organizations and comprehensively taking into

Procedure for determining compensation
The policy, framework, and performance-based mechanism for directors (excluding directors who are Audit & Supervisory Committee
members and outside directors), will be determined by the Board of
Directors after deliberation by the Personnel Committee, in order toseek the appropriate involvement and advice of the outside directors.
In the course of deliberations by the Personnel Committee, sufficient

information is provided to the outside directors so that they are able
to perform their analysis, including, for instance, by asking for advice
from external specialist organizations where necessary. In regard to
the method of calculating performance-based stock compensation,
the matter is submitted to the Personnel Committee. A precondition isthat among committee members, executive directors do not participate in deliberations regarding decisions on performance-based stockcompensation. When all outside directors have agreed and made adecision on performance-based compensation, the decision is finalized through a resolution of the Board of Directors. In addition, at thebusiness management companies, etc., in accordance with decisions
based on the resolution of the Company’s Board of Directors, decisions are made through resolution of the board of directors of each of
the business management companies, etc.

Reference

CORPORATE GOVERNANCE

Basic policy
The basic policy of the remuneration system for the Company’s
directors (excluding directors who are Audit & Supervisory Committee
members and outside directors), is to create a remuneration framework that promotes the Company’s continuous growth and improves
the Company’s corporate value over the medium to long term bypromoting the sharing of values with shareholders, ensuring­objectivity and transparency so that the Company can adequately
fulfill its accountability obligations, and fostering a healthy sense ofentrepreneurship in the directors while taking into account the levelof remuneration that will enable the Company to secure and retain
top-grade personnel.
Specifically, the remuneration framework comprises the baseremuneration as fixed remuneration and performance-based bonuses
and performance-based stock compensation as variable remuneration.
In addition, for the directors of the Group’s four business management companies (Bandai Namco Entertainment Inc., BANDAI CO.,LTD., Bandai Namco Filmworks Inc., and Bandai Namco Amusement
Inc.) and the directors of BANDAI SPIRITS CO., LTD., Bandai Namco
Music Live Inc., and Bandai Namco Business Arc Inc., the basic policy
is the same as that of the Company.
Remuneration for the Company’s directors who are Audit &Supervisory Committee members and the Company’s outside­directors comprises base remuneration only in light of their duties.
The amount of remuneration for each director who is an Audit &Supervisory Committee member is determined through discussions
among directors who are Audit & Supervisory Committee members,
and the amount of remuneration for each outside director (who is not
an Audit & Supervisory Committee member) is determined by the
Board of Directors.

consideration the ratio of fixed remuneration to variable remunerationin the annual total remuneration and the ratio of medium-to longterm remuneration in variable remuneration. If the target for the last
fiscal year under the Mid-term Plan has been achieved, the ratio of
fixed remuneration to variable remuneration in annual total remuneration
will be about 40:60. Also, the proportion in annual total remunerationof stock-based remuneration, that is, the sum of the contribution of
a fixed proportion of the base remuneration to the shareholding
association for directors and officers and performance-based stockcompensation will be approximately 40%.

Performance-based remuneration results
Performance-based remuneration KPI for FY2022.3
Consolidated operating profit: ¥60.0 billion
Consolidated operating profit in FY2022.3¥125,496 million

Achievement rate in regard to
standard results

Payment ratio
for performance-based bonuses

209%

200%

FY2022.3

Officer category

Directors(excluding outside directors)

Audit & Supervisory
Committee members(excluding outside Audit &Supervisory Committee
members)

Outside officers

Total amount ofcompensation, etc.

Total amount ofcompensation, etc., bytype (¥ million)

Payment ratio for performance-based
stock compensation

100%

Total amount of compensation, etc., by type(¥ million)
Number of eligible
officers

Of the amount on theleft, non-monetarycompensation, etc.

Number of eligible
officers(¥ million)

Fixed remuneration(People)Performance-based
stock compensation

720

251

5

468

165

4

24

24

1

—

—

—

97

97

8

—

—

—

(People)Notes:
1. Non-monetary compensation, etc., for directors (excluding outside directors) is performance-based stock compensation.
2. The amount of performance-based stock compensation is calculated based on the closing price of the common stock of the Company on the Tokyo Stock Exchange, First
Section, on March 31, 2022, and when making actual payment, the Delivery Share Price is applied.
3. FY2022.3 was a period for preparation for the next Mid-term Plan. Accordingly, based on advice from the Personnel Committee, in FY2022.3, for the remuneration system for
Company directors, excluding outside directors, the Company continued to adopt the details of the remuneration system under the previous Mid-term Plan (FY2019.3 toFY2021.3).

73

CORPORATE GOVERNANCE

Compliance and Risk Management 
objectives of the cross-shareholdings, etc. Specifically, reviews are
conducted in light of the following perspectives.
I. The necessity for the enhancement of the Company’s corporate
value going forward, such as the further strengthening of the IP
axis strategy through the creation of IP or the expansion of businesses fields.
II. The level of contribution to the enhancement of the Company’s
corporate value, such as the current status of transactions orbusiness alliances with the company in question.
III. The relationship between the benefit of ownership and theCompany’s cost of capital with respect to the acquisition price ofeach cross-shareholding.
As a result of the review in FY2022.3, the Company confirmed theappropriateness of holding all of the shares held.
In exercising the voting rights of cross-shareholdings, the Company
does not unconditionally agree with the proposals of the companies
whose shares it owns. Rather, voting rights are exercised based onwhether or not the proposals will contribute to increasing theCompany’s corporate value through the maintenance and/or bolstering of the business partnership and business relationship withsuch companies.

Should violations of compliance occur or risk arise, a meeting of theGroup Risk Compliance Committee, chaired by the president andrepresentative director, is convened immediately to ensure a quick
and appropriate response. Each month, the Group Risk Compliance

Committee secretariat reports to the Board of Directors any information on compliance and risk and how they have been managed in the
Company and its subsidiaries.

Flow of the Group’s Risk Compliance System

Group Risk Compliance Committee

President and representative
director (chair)

Full-time
directors

Secretariat

Designatedindividuals

Sustainability Management Department

Directions

Conveningof meeting

President and representative director

Number of issues

Total carrying amounton balance sheet(¥ million)

Unlisted shares

7

1,452

Shares other than unlisted shares

34

90,997

Total acquisition cost
related to the increasein the number of shares

Issues for which the number of shares increased in FY2022.3
Number of issues(¥ million)

Unlisted shares——

Shares other than unlisted shares——

Number of issues

Directions

Part-time
directors——

Shares other than unlisted shares

1

17

Directions

Reports

Information sharing

General manager, Corporate Planning Division

Reports

PR function
Directions

General manager, Sustainability Management Department
Reports

Information
sharing

Office for reception of risk compliance information

Reports(¥ million)

Unlisted shares

Director of the
Corporate Planning Division

Person incharge of PR

Total selling pricerelated to the decreasein the number of shares

Issues for which the number of shares decreased in FY2022.3

Information sharing

Reports

Bandai Namco Holdings Inc.

Number of issues and carrying amount on balance sheet

Full-time
directors

CORPORATE GOVERNANCE

Standards for and approach to the classificationof investment shares
The Company holds as investment shares only cross-shareholdingsthat can be recognized to contribute to increasing the corporate
value. The Company does not hold investment shares for pure investment purposes (investment shares held exclusively with the objectiveof obtaining profits through stock price fluctuations or stock-related
dividends).
Investment shares held for purposes other than pure investment
The Company has a basic policy of implementing cross-shareholdings
on a strategic, limited basis, provided that holding such shares can berecognized to contribute to increasing the Company’s corporate value
by further bolstering business partnerships and by maintaining and/or strengthening the stable business relationship with such companies.
Such a determination is based on factors including the companies’
business developments, the status of business with the companies,
and the market price of the shares.
Also, each year, the Company shall implement a sufficient review,
including whether or not to continue to hold cross-shareholdings, by
the Board of Directors of all cross-shareholdings from a medium- tolong-term perspective, taking into consideration the importance ofthe cross-shareholdings and economic rationale. The Company shallalso reflect the results of these reviews in explanations regarding the

Response evaluation/judgment/
decision-making

Shareholdings 

Person incharge of PR

Information
sharing

Management­Strategy Division

Directions
Reports

Group companies

Reports

Percentage of consolidated net assets

End of March 2021

19.8%

74

End of March 2022

15.8%

Person in charge of reporting information regarding crises or compliance violations forbusiness management companies, regional headquarters companies, and affiliated business companies
Directions

Reports

Person in charge of reporting information regarding crises or compliance violations for
Unit-affiliated companies other than business management companies

75

CORPORATE GOVERNANCE

operate a business continuity plan (BCP) and a business continuity
management (BCM) system for the Group. The Company is working toensure that directors, etc., and employees of the Company and its
subsidiaries are well aware of these guidelines and systems. Also, in
working to prevent the spread of COVID-19, we have established the
Crisis Management Committee, with a special focus on preventing the
spread of COVID-19. Participants include the Company’s directors andother people in charge from related departments. At these meetings,
we are periodically sharing information and deliberating on policies.
The results are made known within the Group, and initiatives areadvanced in accordance with the policies of each company.

Bandai Namco Group Compliance Charter
The Charter brings together matters that need to be strictly
observed in business execution by all Group officers andemployees. It clarifies principles related to the following:• Appropriate products and services/fair dealings• Protection of information andresources• Respect for all employees• Rejection of anti-society groups• Information disclosure• Harmony with the environment• Respect for and usage of intellectual
property• Harmony with society

Takeover Defenses 
At present, the Company has taken no specific measures as takeover
defenses. The Group regards implementing its management andbusiness strategies in accordance with the measures to increase thecorporate value of the Group and aiming to increase the corporate
value of the Group as a whole as a substantial defense against inappropriate takeovers.
That said, since the Group is entrusted by shareholders as the
management of the Group, we will work on studying and developing asystem of takeover defenses, with a close eye on legal and social
trends, in anticipation of situations in which an inappropriate entity or
person might emerge to have decision-making power over theCompany’s financial and business policies.

In concrete terms, in the event an inappropriate bidder emerges,
the management team will not take steps to guard its own interests
against the takeover offer by the bidder, but will sufficiently deliberate
the matter at the Board of Directors’ meetings after referring thematter to the Independent Directors Committee for their review fromobjective viewpoints, to enable the Company to make a judgmentfrom the perspective of improving corporate value first. The Company
will also work to collect sufficient information and secure necessarytime, so as to be conducive to appropriate judgment by theshareholders.

IR Activities 
Aiming to enhance corporate value, Bandai Namco Holdings is implementing a variety of investor relations (IR) activities in accordance withinformation disclosure standards and the IR policy related to IR opportunity enhancement, etc. In addition, the status of IR activities and thereactions of investors and analysts are shared with directors andcontinually communicated as feedback to the business managementcompanies and throughout the Group.
Also, Bandai Namco aims to be a highly transparent company thatclearly communicates management strategies and business policies
to shareholders and investors. Accordingly, the Company works toenhance opportunities for executives to speak directly to investors
and securities analysts, such as results presentations and telephone
conferences.

76

Internal Control System 

The Bandai Namco Group’s basic policy regarding its internal control system is as below:(1) Systems to Ensure That the Execution of the Duties by Directors, Etc.,
and Employees of the Company and Its Subsidiaries is in Compliancewith the Laws and Regulations and the Articles of Incorporation• The Company shall set in place Bandai Namco’s Purpose and the Bandai Namco
Group Compliance Charter to ensure that directors and employees of the Company
and its subsidiaries are familiar with them, and always pay due attention to ensure
they carry out their duties lawfully and fairly.
• Directors of the Company shall report periodically to the Board of Directors on the
structure and operating status of internal control systems.
• The Company shall install a director in charge of compliance who is responsible forsupervision of compliance overall based on its compliance regulations, and establish
a structure ensuring that the Company and the entire Group abides by the law,
behaves ethically, and complies with internal regulations.
• Should violations of compliance or suspicions thereof occur within the Group, theCompany shall immediately convene the Group Risk Compliance Committee with
the Company’s president and representative director as its chair to discuss anddecide how the issue should be handled.
• Overseas, an overseas regional headquarters shall be determined for each region to
manage risk and support compliance.
• Internal reporting systems including an internal consultation point, an external
consultation point comprising external legal advisors, and a hotline (email, etc.),
which enables reporting directly delivered to directors who are Audit & Supervisory
Committee members or Audit & Supervisory Board members of subsidiaries, shall be
put in place in the Company and its major subsidiaries.
• The Internal Auditing Division shall be established independently of the executive
sections in the Company and its major subsidiaries to work toward maintaining theproperness of execution of operations through internal audits.

(2) Systems for Preserving and Managing Information Related to Directors’
Execution of Their Duties• The Company shall establish regulations concerning document management andensure (i) the centralized management of documents circulated for approval,
minutes of various meetings, contracts, and other documents, and (ii) appropriate
safe-keeping and management of important documents in each department. The
Company shall also have a system to ensure that directors may peruse those
documents at any time.
• The Company shall establish regulations concerning information security as a part ofGroup management. These regulations will provide for a system to ensure appropriate safekeeping and preservation of information.

(3) Regulations concerning Management for Risk of Loss of the Company
and Its Subsidiaries and Other Systems• The Company shall establish regulations concerning risk management and compliance as a part of Group management. Throughout the Group, we will work to prevent
risk and to discover risk factors as rapidly as possible.
• When risk arises, the Company shall convene the Group Risk Compliance Committee
without delay to minimize the impact of risk on our business by responding to risk
quickly and in an appropriate manner.
• Anticipating the occurrence of situations that could cause drastic damage to the
management of the Group through a major disaster or the like, the Group shalldefine the basic policy for a business continuity plan (BCP) for the Group, andformulate a BCP for the Group and organize a business continuity management(BCM) system to achieve rapid recovery and restart of operations. Directors andemployees of the Company and its subsidiaries shall be made aware of this.

(4) Systems to Ensure That Directors, Etc., of the Company and Its
Subsidiaries Execute Their Duties Efficiently

Results of Major IR Activities in FY2022.3
Results presentations for investors andanalysts (held online)

3 times (463 people)

Results telephone conferences for investors
and analysts

1 time (132 people)

Overseas IR—*

Separate meetings for investors and analysts

507 people

Presentations for individual investors
in Japan—** In FY2022.3, due to the influence of the spread of COVID-19, there was no implementation
due to restraint in regard to overseas travel and events.

• The Company shall classify its subsidiaries into Units based on business segments,
and appoint a director and a business management company in charge of each
Unit to promote efficient business based on the division of duties, chain of command, authorities and decision-making, and other organizational regulations within
the Group.
• The Company shall formulate a Mid-term Plan with a period of three business years
for the entire Group and each Unit, and determine the budget for each business year
based on those Mid-term Plans.
• The Company shall establish a Full-Time Officers Committee consisting of full-time
directors and delegate authority from the Board of Directors to such committee tomake certain decisions on the execution of duties in order to expedite thedecision-making.

(5) Systems concerning reporting Matters Regarding Execution of Duties of
Directors, etc., of Subsidiaries to the Company• The Company shall establish meetings such as the Group Business Report Meetingand the Group Management Meeting, and put in place a system for reporting inside
the Group and decision-making.

(6) Other Systems to Ensure Proper Business Behavior by the Company
and Its Subsidiaries• The Company shall revise the Bandai Namco Group Compliance Charter as appropriate in response to revisions to laws and regulations and changes in the social context
surrounding the Group, and shall ensure that the contents of the Charter are madethoroughly known to directors, etc., and employees of the Company and its subsidiaries through distributing the Bandai Namco Group Compliance Handbook andthrough training. It shall also regularly conduct compliance awareness surveys of
directors, etc., and employees of the Company and its subsidiaries to ascertain theirlevel of familiarity, etc., with the said Charter and utilize the results for subsequent
compliance promotion activities of the Group.
• The Company and its subsidiaries shall endeavor to improve and standardize
business processes considering the importance of effectiveness and efficiency inbusiness operations, and shall evaluate and operate internal controls on financial
reporting based on related laws and regulations, etc.

(7) Matters regarding Employees Required by the Audit & Supervisory
Committee to Assist in Its Duties, and Matters regarding theIndependence of Such Employees from Directors (Excluding Directors
Who Are Audit & Supervisory Committee Members)• The Company shall provide a speedy response when the Audit & Supervisory
Committee asks the president and representative director to provide employees toassist in their duties. Where that employee simultaneously works for any othersection, his or her business duties pertaining to the Audit & Supervisory Committee
shall take priority.
• The Company shall carry out personnel matters relating to such employees based on
the consent of the Audit & Supervisory Committee, so as to ensure independence
from the Board of Directors.

(8) Matters concerning Ensuring the Effectiveness of Instructions to
Employees Who Are to Assist the Audit & Supervisory Committee• The Company shall keep directors and employees thoroughly informed that employees who are to assist in the duties of the Audit & Supervisory Committee will be
under the command of the Audit & Supervisory Committee.

(9) System for Directors (Excluding Directors Who Are Audit & Supervisory
Committee Members), Etc., and Employees of the Company and Its
Subsidiaries to Report to the Company’s Audit & Supervisory
Committee

CORPORATE GOVERNANCE

In order to ensure abidance of laws, respect of ethical behavior, andcompliance with internal regulations, the Company has set in place
the Bandai Namco Group Compliance Charter to define behavioral
guidelines for directors, etc., and employees of the Company and its
subsidiaries, and is working to ensure that they are familiar with theCharter through putting up posters and distributing the ComplianceBook. In addition, the director in charge of compliance of theCompany strives to enhance compliance awareness by carrying out
management of the overall compliance of the Group and periodical
training using e-learning tools and other programs. The Company also
investigates the degree of actual awareness through distributing
surveys on compliance awareness to all employees and strives tostrengthen the compliance systems by sharing the results of thesurvey with each subsidiary director in charge of compliance.
Furthermore, as a whistleblowing system, the Company has alsoestablished an internal consultation service, an external consultation
service provided by external legal advisors, and a hotline (email, etc.)
for employees to use to report directly to directors who are Audit &Supervisory Committee members or to Audit & Supervisory Board
members of subsidiaries. The Company and its major subsidiaries
have also included provisions in their internal regulations to ensure
the protection of whistleblowers.
For risk management, the Company and its subsidiaries haveestablished guidelines on risk management and have formulated and• Directors (excluding directors who are Audit & Supervisory Committee members),
etc., and employees of the Company and its subsidiaries shall report promptly to the
Audit & Supervisory Committee with regard to matters prescribed by laws andregulations, other matters that have a major impact on the Company and the Group,
implementation status of internal audits, and matters related to compliance.
• Directors (excluding directors who are Audit & Supervisory Committee members),
etc., and employees of the Company and its subsidiaries shall report promptly andappropriately when requested to do so by the Audit & Supervisory Committee
regarding the performance of their duties.
• The Company shall put in place a hotline (email, etc.) as an internal reporting system
to allow reports to be made directly to the Company’s directors who are Audit &Supervisory Committee members.

(10) System for Ensuring That Persons Making Reports to the Audit &Supervisory Committee Shall Not Be Treated Disadvantageously as a
Result of Making Such Report• The Company shall prohibit the disadvantageous treatment of persons who havereported to or consulted with the Audit & Supervisory Committee, and shall statethat clearly in the Group Risk Compliance Regulations and make it thoroughly known
to directors, etc., and employees of the Company and its subsidiaries.

(11) Matters regarding Policies Pertaining to Procedures for Advance
Payments or Reimbursement of Expenses Arising in the Performance ofDuties of Audit & Supervisory Committee Members and Other Payment
of Expenses or Liabilities Arising in the Performance of Said Duties• The Company shall immediately pay expenses or liabilities where an Audit &Supervisory Committee member has requested advance payments or reimbursement of expenses arising in the performance of his or her duties, excluding cases
where they were not considered necessary for the performance of the said duties of
the Audit & Supervisory Committee member.

(12) Other Systems to Ensure the Effectiveness of Audits Conducted by the
Audit & Supervisory Committee• Directors (excluding directors who are Audit & Supervisory Committee members) of
the Company shall formulate a system whereby Audit & Supervisory Committee
members can attend important meetings, and ensure that a system exists whereby
they can meet periodically or on an ad hoc basis with directors and employees, andcooperate with the Internal Auditing Division and accounting auditors.
• Subsidiaries of the Company shall install an appropriate number of Audit &Supervisory Board members according to their scale, business category, etc., andensure that there are systems in place wherein Audit & Supervisory Board members ofsubsidiaries report periodically to the Audit & Supervisory Committee of the Company.

77

DIRECTOR SYSTEM
As of June 20, 2022

The Company works to see that the Board of Directors has a good overall balance between executive directors, who execute agile business operations and havethorough knowledge of the Company’s businesses or company operations, etc., and outside directors, who possess advanced expertise and are capable of providing
management advice and oversight with a wide range of viewpoints. In addition, the Company strives to see that the directors have the knowledge, experience, andcapabilities to fulfill their duties and that the composition of the Board achieves both diversity and an appropriate scale.

Executive Directors
Attendance at meetings of theBoard of Directors(FY2022.3)

Major experience and expertise
Position,
name,and areas of responsibility

President and Representative Director
Group CEO

Number of Company shares
owned

Corporate Planning Division andGroup Administrative Headquarters

Director
Nobuhiko Momoi
General Manager of Group Business
Strategy Department

Director in charge of Digital Businessof Entertainment Unit

Director (Part-time)
Kazuhiro Takenaka
Director in charge of Toys and Hobby
Business of Entertainment Unit

Director (Part-time)
Makoto Asanuma
Director in charge of IP Production
Unit

Director (Part-time)
Hiroshi Kawasaki

Director in charge of Bandai Namco
Business Arc Inc.

DigitalVisual/music

IP creation/
development

Facilities/
machines

Finance, tax
affairs, andaccounting

Sustainability Internationality

Legal affairs

Digitaltechnology andinformation
security

Number of meetings attended/
Number of meetings held

57,40018/18

46,900Mr. Yuji Asako possesses extensive experience, achievements, and knowledge
relating to management and administration, including business planning andaccounting, and also has experience in roles where he was responsible for internaland external communications, such as IR, PR, and SR, as well as sustainability
activities and information security. He has been appointed as the Company
considers him capable of implementing the Group’s management strategies andseeking a sustained increase in corporate value.

18/18

5,100

Mr. Nobuhiko Momoi possesses extensive experience, achievements, andknowledge in the Toys and Hobby Business in Japan and overseas and has also
been engaged in building ties among the various businesses of the Group as
executive officer and general manager of the Group Business Strategies Division of
the Company since April 2022. He has been appointed as the Company considers
him capable of enhancing collaboration in Group management.

—

26,250Mr. Yasuo Miyakawa possesses extensive experience, achievements, and knowledge
from his wide-ranging involvement in multiple businesses in the Group. Since 2019,he has driven the business forward as the president and representative director ofBandai Namco Entertainment Inc., which is the current business managementcompany of the Digital Business of the Entertainment Unit in the Group. He has
been appointed as the Company considers him capable of building closer ties
between the Digital Business and Group management.

18/18

18,000

Mr. Kazuhiro Takenaka possesses extensive experience, achievements, andknowledge in the Toys and Hobby Business and, since 2019, has driven the businessforward as president and representative director of BANDAI CO., LTD., which isthe business management company of the Toys and Hobby Business of theEntertainment Unit in the Group. In addition to these factors, he has been
appointed as the Company considers him capable of building closer ties between
the Toys and Hobby Business and Group management.

—

19,400Mr. Makoto Asanuma possesses extensive experience, achievements, and knowledge from his wide-ranging involvement in multiple businesses in the Group. Since
2019, he has driven the business forward as the president and representative
director of SUNRISE INC. (currently Bandai Namco Filmworks Inc.), which is thecurrent business management company of the IP Production Unit in the Group. He
has been appointed as the Company considers him capable of building closer ties
between the IP Production Business and Group management.

18/18

23,950Mr. Hiroshi Kawasaki possesses extensive experience, achievements, and knowledge from his wide-ranging involvement in multiple businesses in the Group.
Since 2021, he has driven the business forward as the president and representative
director of Bandai Namco Amusement Inc., which is the business managementcompany of the Amusement Business in the Group. He has been appointed as theCompany considers him capable of building closer ties between the Amusement
Business and Group management.

14/14

44,400Mr. Shuji Ohtsu possesses specialist expertise as a certified public accountant, as
well as extensive experience and achievements. He has been appointed as theCompany considers him capable of strengthening Group management structuresand ensuring highly transparent management.

18/18

Director in charge of Amusement Unit

Director (Part-time)
Shuji Ohtsu

Operational experience
Toys andhobby

DIRECTOR SYSTEM

Director (Part-time)
Yasuo Miyakawa

Corporate
management

Mr. Masaru Kawaguchi has been supervising the management of the Company
appropriately since being appointed as executive vice president and director of theCompany in 2020 and as president and representative director of the Company in2021—by, for example, achieving the previous Mid-term Plan and record-highperformance—and possesses extensive experience, achievements, and knowledge.
He has been appointed as the Company considers him capable of ensuring that theGroup continues to grow.

Masaru Kawaguchi

Director
Yuji Asako

Reasons for appointment

Note: Number of shares held is as of the end of March 2022. Attendance rates at meetings of the Board of Directors are for FY2022.3.
Mr. Hiroshi Kawasaki was elected at the 16th Ordinary General Meeting of Shareholders held on June 21, 2021, and accordingly the number of Board of Directors’ meetings on which the attendance
rate is based differs from that of other directors.
Mr. Nobuhiko Momoi and Mr. Kazuhiro Takenaka were elected at the 17th Ordinary General Meeting of Shareholders held on June 20, 2022, and accordingly did not attend meetings ofthe Board of Directors in FY2022.3.
Member of the Personnel Committee

78

79

DIRECTOR SYSTEM
As of June 20, 2022

Outside Directors Who Are Not Audit & Supervisory Committee Members
Major experience and expertise
Positionand name

Director (Outside)
Koichi Kawana

Director (Outside)

Major concurrent positions

Attendance at meetings of theBoard of Directors(FY2022.3)

Number ofCompany shares
owned

Reasons for appointment—

Given Mr. Koichi Kawana’s extensive knowledge andexperience in corporate management, the Company
anticipates that he will be able to further strengthen
management oversight and checking functions, andintroduce a global managerial perspective based on
his extensive experience working overseas, and thus
he has been appointed.

18/18

—

Given Mr. Toshio Shimada’s extensive knowledge andexperience in corporate management, the Company
anticipates that he will be able to further strengthen
management oversight and checking functions, andintroduce his extensive knowledge concerning fusionof corporate management and digital technology
into the Company’s managerial perspective, andthus he has been appointed.

14/14

Outside director (Audit & Supervisory
Committee Member) of COMSYS Holdings
Corporation
Outside director of TOKYO ELECTRONDEVICE LIMITED
External director of RENOVA, Inc.

Special advisor of CAC Holdings Corporation

Toshio Shimada

Corporate
management

Operational experience
DigitalToys andhobby

Visual/music

IP creation/
development

Facilities/
machines

Finance, tax
affairs, andaccounting

Sustainability Internationality

Legal affairs

DigitalIndependence
technology andinformation
security

Number of meetings
attended/Number of meetings held

Note: Mr. Toshio Shimada was elected at the 16th Ordinary General Meeting of Shareholders held on June 21, 2021, and accordingly the number of Board of Directors’ meetings on which the attendance
rate is based differs from that of other directors.

Directors Who Are Audit & Supervisory Committee Members
Major experience and expertise
Major concurrent positions

Director (Full-time)
Masataka Nagaike

Director(Full-time, Outside)

Certified Public Accountant

Reasons for appointment

3,200

Given his many years of experience in engaging inwork in the administration divisions, and mastering
corporate legal affairs, the Company expects Mr.
Masataka Nagaike to utilize his knowledge andexperience for the audit & supervisory system of theCompany, and thus he has been appointed.

18/18

300

Given his many years engaged in audit practices, andgiven he is a certified public accountant, theCompany expects Mr. Toru Shinoda to utilize hisadvanced knowledge and experience in accounting
and auditing for the audit & supervisory system of
the Company, and thus he has been appointed.

18/18

—

Given her many years of experience as an attorneyat-law, the Company expects Ms. Satoko Kuwabara
to utilize her advanced knowledge and experiencefrom a legal risk perspective, and thus she has been
appointed.

18/18

—

Given his many years mastering accounting and tax
practices, and given he is a certified public accountant and a certified public tax accountant, theCompany expects Mr. Takayuki Komiya to utilize hisadvanced knowledge and experience in accounting,tax affairs, and auditing in order to strengthen theaudit and supervisory system of the Company, andthus he has been appointed.

—

Toru Shinoda

Director (Outside)
Satoko Kuwabara

Director (Outside)
Takayuki Komiya

Attorney-at-law partner of GAIEN PARTNERS
Outside auditor of Unicafe Inc.
Outside Audit & Supervisory Board memberof Nippon Yusen Kabushiki Kaisha
Outside director of Mitsubishi UFJ Financial
Group, Inc.
Certified public accountant
Certified public tax accountant
Representative director of KEY Consulting
Co., Ltd.

Attendance at meetings of theBoard of Directors(FY2022.3)

Number ofCompany shares
owned

Corporate
management

Operational experience
DigitalToys andhobby

Visual/music

IP creation/
development

Facilities/
machines

Finance, tax
affairs, andaccounting

Sustainability Internationality

Legal affairs

DigitalIndependence
technology andinformation
security

Number of meetings
attended/Number of meetings held

DIRECTOR SYSTEM

Positionand name

Note: Number of Company shares owned is as of the end of March 2022. Attendance at meetings of the Board of Directors is for FY2022.3.
Mr. Takayuki Komiya was elected at the 17th Ordinary General Meeting of Shareholders held on June 20, 2022, and accordingly did not attend meetings of the Board of Directors in FY2022.3.
Member of the Personnel Committee
Member of the Independent Directors Committee

80

81

CONSOLIDATED SIX-YEAR FINANCIAL SUMMARY
Bandai Namco Holdings Inc. and Consolidated Subsidiaries
For the Fiscal Years Ended March 31

Millions of yen, except per share data and main financial indicators

2017

2018

2019

2020

2021

2022

Net sales¥620,061¥678,312¥732,347¥723,989¥740,903¥889,270

Gross profit

223,759

241,581262,555

260,948

282,006

356,265

Selling, general and administrative expenses

160,520

166,557

178,510

182,172

197,352

230,769

Operating profit

63,23875,024

84,04578,77584,654125,496

Recurring profit*1

63,29075,38086,86379,797

87,612

133,608

Profit attributable to owners of parent

44,15954,10963,383

57,66548,89492,752Comprehensive income

43,10456,02469,95253,312

90,527

96,299

Capital expenditures

25,01660,50129,01633,40631,50736,554

Depreciation and amortization

21,85423,545

21,37023,23924,68425,726

Cash flows from operating activities

64,13655,13879,811

43,13160,483

121,212

Total assets¥488,032¥540,490¥612,955¥619,819¥732,782¥862,650

Total current assets

357,782

350,618

397,951

383,662455,210577,206

Total current liabilities

126,110

136,202

163,893

142,506

175,920

243,362

Total net assets

348,784

387,354429,644454,684

511,433

584,233¥201.03¥246.29¥288.40¥262.39¥222.58¥422.0982.00

123.00145.00132.00112.00212.00For the Year:Per Share Data (Yen):

83

CONSOLIDATED SIX-YEAR FINANCIAL SUMMARY

Basic earnings per share

84

CONSOLIDATED BALANCE SHEETSCash dividends

86C ONSOLIDATED STATEMENTS OF INCOME ANDCONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME

FINANCIAL SECTIONFINANCIAL				 SECTIONAt Year-End:

Main Financial Indicators:

 ONSOLIDATED STATEMENTS OF CHANGESCIN NET ASSETS

Return on equity (ROE)*2 (%)

13.3

14.7

15.5

13.1

10.2

16.9

87

Return on assets (ROA)*3 (%)

13.5

14.7

15.1

12.9

13.0

16.7

88

CONSOLIDATED STATEMENTS OF CASH FLOWS

Selling, general and admini­strative expenses to
net sales (%)

25.9

24.6

24.4

25.2

26.6

26.0

Operating profit margin (%)

10.2

11.1

11.5

10.9

11.4

14.1

Profit attributable to owners of parent margin (%)

7.1

8.0

8.7

8.0

6.6

10.4

Shareholders’ equity ratio (%)

71.3

71.5

70.0

72.5

69.7

67.7

Debt/equity ratio (Times)

0.00

0.00

0.00

0.01

0.05

0.05

Notes:*1 Recurring profit is a Japanese accounting term denoting income before extraordinary items.
*2 ROE = Profit attributable to owners of parent / Average total shareholders’ equity (= Total net assets – Stock acquisition rights – Non-controlling interests)*3 ROA = Recurring profit / Average total assets

Note: The consolidated financial statements are expressed in yen. However, solely for theconvenience of the reader, the consolidated financial statements as of and for the fiscal
year ended March 31, 2022, have been translated into U.S. dollars at the rate of¥122.39=U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market
on March 31, 2022. This translation should not be construed as an indication that theamounts shown could be converted into U.S. dollars at such rate.

82

83

CONSOLIDATED BALANCE SHEETS
Bandai Namco Holdings Inc. and Consolidated Subsidiaries
As of March 31, 2021 and 2022

2021

Millions of yen

Thousands of
U.S. dollars (Note)

2022

2022

Millions of yen

Thousands of
U.S. dollars (Note)

2021

2022

2022

¥ 82,474¥ 99,810$ 815,509

Short-term borrowings

385

10,81088,330Accrued income taxes

6,820

22,891

187,036—

22,912

187,211

AssetsLiabilities and net assets

Current assets:

Current liabilities:

Cash and time deposits

Trade payables¥204,326¥279,401$2,282,875

91,765——Trade receivables and contract assets—

122,742

1,002,877

Allowance for doubtful receivables(1,639)(2,001)(16,352)

Provisions

3,547

3,745

30,605Inventories

106,886

124,250

1,015,199

Other current liabilities

82,692

83,191

679,725

Other current assets

53,872

52,814

431,523

		 Total current liabilities

175,920

243,362

1,988,419

		 Total current assets

455,210577,206

4,716,123
20,234

10,236

83,635Trade receivables

Contract liabilities

Long-term liabilities:
Long-term borrowings
Property, plant and equipment:
38,64340,416330,224

Amusement facilities and machines

60,67559,298484,506Land

43,04742,869350,268

Other property, plant and equipment

139,509

151,528

1,238,080

281,875

294,1122,403,080(193,534)(201,662)(1,647,706)

88,341

92,450755,373

		TotalLess accumulated depreciation
		 Net property, plant and equipment

301

249

2,039

Net defined benefit liability

7,212

5,261

42,993

Deferred tax liabilities

4,639

4,148

33,896

Other long-term liabilities

13,04015,157

123,847

		 Total long-term liabilities

45,42835,053

286,411

		Total liabilities

221,348

278,416

2,274,830
FINANCIAL SECTION

Buildings and structures

Provisions

Net assets:
Shareholders’ equity:
Common stock		 Authorized: 1,000,000,000 shares
		 Issued: 222,000,000 shares

Intangible assets:
Goodwill

17,06914,887

121,637

Other intangible assets

15,944

19,540159,660

		 Total intangible assets

33,01434,428281,298

10,00010,00081,706

Capital surplus

52,232

52,574

429,567

Retained earnings

414,487

482,147

3,939,435

Treasury stock, at cost; 2,326,752 shares in 2021, and 2,023,206 shares in 2022

(3,905)(2,140)(17,487)

472,814542,581

4,433,221

51,58745,037367,983

988

901

7,367

		Subtotal
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities, net of tax

Investments and other assets:
Investment securities

121,208

113,261

925,417

Revaluation reserve for land, net of tax(4,016)(4,016)(32,819)

Deferred tax assets

16,31025,732

210,246

Foreign currency translation adjustments(7,438)1,886

15,409

407

525

4,290

Remeasurements of defined benefit plans, net of tax(3,419)(2,394)(19,563)

18,707

19,831

162,033

37,70141,413

338,377

(418)

(784)

(6,412)

917

237

1,942

		 Total net assets

511,433

584,233

4,773,540

		 Total investments and other assets

156,215

158,565

1,295,576

		Total assets¥732,782¥862,650$7,048,371

		 Total liabilities and net assets¥732,782¥862,650$7,048,371

Net defined benefit asset
Other investments and assets
Allowance for doubtful receivables

84

Deferred gains or losses on hedges, net of tax

		Subtotal
Non-controlling interests

85

CONSOLIDATED STATEMENTS OF INCOME ANDCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Bandai Namco Holdings Inc. and Consolidated Subsidiaries
Years Ended March 31, 2021 and 2022

Consolidated Statements of Income

Cost of sales
		Gross profit
Selling, general and administrative expenses
		Operating profit
Other income (loss):
Interest and dividend income
Interest expense
Foreign exchange gains (losses)
Loss on valuation of derivatives
Provision of allowance for doubtful accounts
Gain (loss) on sales and disposal of fixed assets, net
Loss on impairment of fixed assets
Extra retirement payments
Subsidies for employment adjustment and other related to COVID-19
Loss on liquidation of business
Other

Profit before income taxes
Income taxes

Bandai Namco Holdings Inc. and Consolidated Subsidiaries
Years Ended March 31, 2021 and 2022

Year ended March 31, 2021
Millions of yen

Net sales

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

Millions of yen

Thousands of
U.S. dollars (Note)

2021

2022

2022

¥740,903
458,897
282,006
197,352
84,654¥889,270
533,004
356,265
230,769
125,496$7,265,871
4,354,964
2,910,907
1,885,525
1,025,382

Shareholders’ equity

Balance at beginning of year		 Profit attributable to owners of parent

Retainedearnings¥10,000¥52,004¥394,699

1,546
(229)
480
(44)
(31)
(174)
(11,284)—
1,373(1,754)(2,594)(12,714)71,94023,074

1,454
(377)
5,519
(244)
(369)
2,310
(2,994)(1,257)
909
—
435
5,385
130,882
38,295

11,880(3,083)45,100(1,998)(3,020)18,878(24,469)(10,271)
7,428
—
3,562
44,005
1,069,387
312,895

48,86592,587756,492

(28)

(165)

(1,348)¥ 48,894¥ 92,752$ 757,841

Yen

U.S. dollars (Note)

2022

2022

¥2,323.98¥2,654.81$21.69222.58—112.00422.09—212.00

3.45
—
1.73

86

Millions of yen

Thousands of
U.S. dollars (Note)

2021

2022

2022

¥48,865¥92,587$756,492

34,636
736
4,892
1,220

(6,505)
(87)
9,323
1,025

(53,149)(714)
76,180
8,375

175

(44)

(363)

41,661¥90,527

3,711¥96,299

30,328$786,821¥90,48640¥96,464(165)$788,174(1,352)¥16,837¥250¥(3,902)¥(12,321)¥(4,639)¥ (3,776)¥ 5,392¥454,684(29,220)

Profit attributable to owners of parent

48,894

48,894

48,894

Change in ownership interest ofparent due to transactions with
non-controlling interests

5

Disposal of treasury stock

222

(309)

(303)

(9)

(9)

(9)

48

270

270

Change in treasury stock
accompanying changes to holdings
in companies to which the equity
method is applied

0

Reversal of revaluation reserve
for land113

Balance at end of year

¥10,000¥52,232¥414,487(4,823)¥(3,905)(5,127)0

0113

Net changes of items other thanshareholders’ equity¥472,814

(113)

(113)

—

34,749

738

—

4,883

1,220

41,592349

41,941¥51,587¥988¥(4,016)¥ (7,438)¥(3,419)¥37,701¥   917¥511,433

Year ended March 31, 2022
Millions of yen
Shareholders’ equity

Balance at beginning of year

Commonstock

CapitalsurplusRetainedearnings¥10,000¥52,232¥414,487

10,00052,232

414,666Cumulative effects of changes
in accounting policies

Accumulated other comprehensive income

Total
shareholders’equityTreasurystock¥(3,905)¥472,814(3,905)472,993

179

Valuationdifference on
Foreignavailable-for- Deferred gains
currency
or losses on
Revaluationsalehedges,reserve for land, translation
securities,
adjustments
net of tax
net of tax
net of tax

Total
accumulated
otherRemeasurementsof defined benefit comprehensive Non-controlincome
ling interests
plans, net of tax

Total net
assets atend of year

¥51,587¥988¥(4,016)¥(7,438)¥(3,419)¥37,701¥ 917¥511,433

51,587988(4,016)(7,438)(3,419)37,701

917

511,612

179

179

Cash dividends(25,271)(25,271)(25,271)Profit attributable to owners of parent

92,752

92,752

92,752Change in scope of consolidation foreign currency translation adjustment—

Change in ownership interest ofparent due to transactions with
non-controlling interests

(108)
451

¥52,574¥482,147

160

(482)

(591)

(8)

(8)

1,772

2,224

2,224

0

0

Net changes of items other thanshareholders’ equity¥10,000

160(8)Change in treasury stock accompanying
changes to holdings in companies towhich the equity method is applied

Balance at end of year

160

(108)

Purchase of treasury stock¥(2,140)¥542,581

0(6,549)

(87)

—

9,164

1,025

3,552

(197)

3,355

¥45,037¥901¥(4,016)¥ 1,886¥(2,394)¥41,413¥ 237¥584,233

Year ended March 31, 2022
Thousands of U.S. dollars (Note)
Shareholders’ equity

Commonstock

Consolidated Statements of Comprehensive Income¥453,069(29,220)

Purchase of treasury stock

2021

ProfitOther comprehensive income:
Valuation difference on available-for-sale securities, net of tax
Deferred gains or losses on hedges, net of tax
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests¥(3,634)

Total net
assets atend of year

(29,220)

Disposal of treasury stock

Per share data:
Net assets at March 31
Earnings per share:
Basic
DilutedCash dividends applicable to period

Treasury
stock

Total
accumulated
otherRemeasurementsof defined benefit comprehensive Non-controlincome
ling interests
plans, net of tax

FINANCIAL SECTION

Profit (loss) attributable to non-controlling interests

Capitalsurplus

Total
shareholders’equityCash dividends

Restated balance

ProfitCommonstock

Accumulated other comprehensive income
Valuationdifference on
Foreignavailable-for- Deferred gains
currency
or losses on
Revaluationsalehedges,reserve for land, translation
securities,
adjustments
net of tax
net of tax
net of tax

CapitalsurplusRetainedearnings

Balance at beginning of year

$81,706 $426,769 $3,386,608

Cumulative effects of changes
in accounting policies

1,466

Restated balance

81,706

426,769

3,388,075

Accumulated other comprehensive income

Treasury
stock

Total
shareholders’equityValuationdifference on
Foreignavailable-for- Deferred gains
currency
or losses on
Revaluationsalehedges,reserve for land, translation
securities,
adjustments
net of tax
net of tax
net of tax$(31,906)$3,863,178$421,497$8,080$(32,819)$(60,775)$(27,939)$308,044$ 7,497$4,178,719

421,497

8,080(32,819)(60,775)(27,939)

308,0447,497

4,180,186

1,466(31,906)

3,864,644

Cash dividends(206,481)(206,481)

Profit attributable to owners of parent

757,841

757,841

Change in scope of consolidation foreign currency translation adjustment
Change in ownership interest ofparent due to transactions with
non-controlling interests(890)

Disposal of treasury stock

3,688

Change in treasury stock accompanying
changes to holdings in companies towhich the equity method is applied(206,481)
757,841$81,706 $429,567 $3,939,435

1,308

1,308

(890)

1,308

(3,943)(4,833)

(67)

(67)

(67)

14,484

18,173

18,1731

1

1$(17,487)$4,433,221

Net changes of items other thanshareholders’ equity
Balance at end of year

Total net
assets atend of year

1,466

—

Purchase of treasury stock

Total
accumulated
otherRemeasurementsof defined benefit comprehensive Non-controlincome
ling interests
plans, net of tax(53,514)(712)—

74,876

8,375

29,024(1,611)

27,412$367,983$7,367$(32,819)$ 15,409$(19,563)$338,377$ 1,942$4,773,540

87

CONSOLIDATED STATEMENTS OF CASH FLOWSCORPORATE DATA

Bandai Namco Holdings Inc. and Consolidated Subsidiaries
Years Ended March 31, 2021 and 2022

As of March 31, 2022

Cash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Loss on impairment of fixed assets
Amortization of goodwill
Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in other provision
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expense
Foreign exchange losses (gains)
Loss (gain) on valuation of derivatives
Loss (gain) on sales and disposal of fixed assets, net
Loss on disposal of amusement facilities and machines
Loss (gain) on sales of investment securities, net
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Acquisition of amusement facilities and machines
Increase (decrease) in trade payables
Increase (decrease) in contract liabilities
Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
Other
		Subtotal
Interest and dividends received
Interest paid
Income taxes paid
		 Net cash provided by operating activities
Cash flows from investing activities:
Decrease (increase) in time deposits, net
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Proceeds from sales of shares of subsidiaries
Purchase of shares of subsidiaries and associates
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Other
		 Net cash used in investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid	Payments from changes in ownership interests in subsidiaries that do
not result in change in scope of consolidation
Other
		 Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting from merger with
non-consolidated subsidiaries
Cash and cash equivalents at end of year

Millions of yen

Thousands of
U.S. dollars (Note)

2021

2022

2022

¥ 71,940
24,684
11,284
2,309
163
(307)
(126)
(1,546)
229
(128)
44
174
1,607
(307)
(6,653)(29,053)(4,252)
11,308—(6,406)
20,674(1,797)
93,842
1,560(204)(34,714)60,483¥130,882
25,726
2,994
2,218
610
134
187
(1,454)
377
(359)
244
(2,310)105(91)(26,577)(15,534)(4,360)16,184
22,270(11,653)488(3,757)
136,3251,447(377)(16,182)
121,212$1,069,387
210,198
24,46918,127
4,988
1,094
1,528
(11,880)
3,083(2,938)
1,998(18,878)864(749)(217,156)(126,924)(35,628)
132,237
181,966(95,215)
3,990(30,699)
1,113,863
11,824(3,085)(132,222)
990,381593(16,032)863(7,816)(7,053)
522
—
(135)

(848)
(19,228)
3,874(7,569)(1,604)
624
49
(984)

(6,936)(157,111)
31,659(61,846)(13,106)
5,100
407(8,041)

(137)

—

—

(575)
(29,771)(1,449)(27,136)(11,844)(221,720)(500)
20,400(397)(9)—(29,220)

400
250
(223)
(8)
1,946
(25,271)

3,268
2,042
(1,824)(67)
15,901(206,481)(8,494)(591)(4,833)(815)(19,037)
3,357
15,031
188,667(1,952)(25,450)
5,328
73,954
203,698(15,954)(207,949)
43,540604,251
1,664,337

—

238

1,951

¥203,698¥277,891$2,270,541

Corporate Name:

Bandai Namco Holdings Inc.

Head Office:Bandai Namco Mirai Kenkyusho, 5-37-8, Shiba, Minato-ku, Tokyo 108-0014, Japan
URL: www.bandainamco.co.jp/

Capital:¥10 billion

Stock Exchange Listing:Tokyo Stock Exchange, Prime Market (Code number: 7832)

Main Business:

Planning and execution of medium- to long-term management strategies for the Bandai Namco Group;
provision of support for business strategy implementation by Group companies; and management ofbusiness activities

Stock Information:

Number of shares authorized:

1,000,000,000 shares

Number of shares issued:

222,000,000 shares

Number of shareholders of share units:

26,201

Number of shares per trading unit:
Shareholders:

100 shares
Number of shares(Thousands)% of total

The Master Trust Bank of Japan, Ltd. (Trust account)

47,797

21.72

Custody Bank of Japan, Ltd. (Trust account)

18,101

8.23

10,945

4.97

XIL, LTD.

6,000

2.73

Kyoko Nakamura

5,703

2.59

4,586

2.08

MAL Ltd.

4,400

2.00

Nintendo Co., Ltd.

3,845

1.75

3,347

1.52

3,345

1.52

Number of shares(Trading units)% of total——

Financial institutions

890,976

40.16

Brokerages

58,537

2.64

Other corporate entities

253,030

11.41

Foreign corporate entities and others

767,472

34.60

Individuals, etc.

248,115

11.18

Name

JP MORGAN CHASE BANK 380815(Standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division)

The Nomura Trust and Banking Co., Ltd. (Retirement and severance benefits
trust; MUFJ Bank, Ltd., account)

KOREA SECURITIES DEPOSITORY-SAMSUNG(Standing Proxy: Citibank, N.A., Tokyo Branch)
STATE STREET BANK WEST CLIENT - TREATY 505234(Standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Services Division)
Note: The shareholding ratio is calculated after reduction of the number of treasury stocks.

Ownership Breakdown:

Status of Inclusion in Indexes:

Public entities• Nikkei Stock Average (Nikkei 225)
• TOPIX 100• JPX-Nikkei Index 400• MSCI Japan Empowering Women Index (WIN)• FTSE Blossom Japan Sector Relative Index©創通・サンライズ ©バンダイナムコホールディングス ©アイドリッシュセブン ©BNOI/アイナナ製作委員会 ©窪岡俊之 THE IDOLM@STER™& ©Bandai Namco Entertainment Inc. ©円谷プロ ©ウルトラマンデッカー製作委員会・テレビ東京 ©2022 石森プロ・テレビ朝日・ADK EM・東映 ©創通・サンライズ・MBS ©テレビ朝日･東映AG･東映©やなせたかし／フレーベル館・TMS・NTV ©BANDAI ©バードスタジオ／集英社・東映アニメーション PAC-MAN™& ©Bandai Namco Entertainment Inc. ©ABC-A・東映アニメーション ©岸本斉史 スコット／集英社・テレビ東京・ぴえろ ©2022 プロジェクトラブライブ ! スーパースター!! ©尾田栄一郎／集英社・フジテレビ・東映アニメーション©創通・サンライズ PAC-MAN™& ©Bandai Namco Entertainment Inc. ©BANDAI ©創通・サンライズ ©吉崎観音／KADOKAWA・BNP・テレビ東京・NAS・BV ©「映画館に行こう!」実行委員会 ©創通・サンライズ ©2017 プロジェクトラブライブ ! サンシャイン!!

88

89

OVERVIEW OF MAIN GROUP COMPANIESAs of August 31, 2022

Bandai Namco Holdings Inc.	Planning and execution of the Bandai Namco Group’s medium- to long-term management strategies; provisionof support for business strategy implementation by Group companies; management of business activities(Tokyo Stock Exchange, Prime Market)
Bandai Namco Holdings USA Inc.	Regional headquarters in the Americas, providing support for the implementation of strategies by operating companies, etc.
Bandai Namco Europe S.A.S.	Regional headquarters in Continental Europe, providing support for the implementation of strategies by operating companies, etc.;
planning, development, and sales of home video games, and planning, development, and distribution of network content as an
operating holding company

IP Production Unit

IP Production Business

Bandai Namco Filmworks Inc.	Planning, production, and sales of animations and other visual content and of services related to visual products;
management and administration of copyrights and other rights
Bandai Namco Music Live Inc.	Planning, production, management, and administration of visual and music content; artist discovery and development;
production of live events

Bandai Namco Holdings Asia Co., Ltd.	Regional headquarters in Asia, providing support for the implementation of strategies by operating companies in Asia
(excluding China)

Bandai Namco Pictures Inc.	Planning and production of animations and other visual content; management and administration of copyrights and other rights

Bandai Namco Holdings China Co., Ltd.	Regional headquarters in China, providing support for the implementation of strategies by operating companies, etc.

Actas Inc.

Bandai Namco Holdings UK Ltd.	Regional headquarters in Europe, providing support for the implementation of strategies by operating companies in Europe

SOTSU CO., LTD.	Planning and production of TV animation programs; rights business; production and agency operations in sports entertainment

SUNRISE BEYOND INC.	Planning and production of animation products
Planning and production of animation

Evolving GUNDAM Inc.	Operation of entertainment areas; management of restaurants; sales of toys, models, daily use sundries, and other products; etc.

Entertainment Unit

SUNRISE (SHANGHAI) CO., LTD.	Planning and production of visual content; management and administration of copyrights and other rights, etc.

Bandai Namco Entertainment Inc.	Planning, distribution, and sales of entertainment content, such as network content and home video games

Amusement Unit

Bandai Namco Studios Inc.	Planning, development, and operation of home video games, network content, PC content, etc.

Bandai Namco Amusement Inc.

Planning, development, operation, and sales of facilities, machines, and services related to real entertainment

Bandai Namco Online Inc.	Planning, development, and operation of Internet-based online games, other software, and services

PLEASURECAST CO., LTD.

Planning and operation of entertainment facilities

D3PUBLISHER INC.	Planning, development, and sales of home video games; planning, development, and distribution of network content

HANAYASHIKI CO., LTD.	Planning, operation, etc., of ASAKUSA HANAYASHIKI amusement park and ASAKUSA KAGEKIJO multipurpose hall

B.B.STUDIO CO., LTD.	Planning and development of home video games, network content, and amusement machines

Bandai Namco Technica Inc. 	After-sales service operations related to amusement machines; stocking and sales of pre-owned amusement machines andproducts from other companies; development of original products

Digital Business

Bandai Namco Network Services Inc. 	In network services, providing content operation, distribution, digital marketing, localization, and technical support
Bandai Namco Sevens Inc.	Development and sales of pachinko and pachislot machines; development, manufacturing, and sales of visual substrates;
planning and operation of other new businesses
Bandai Namco Research Inc.	Development of technologies, demonstration and verification in new business fields for use in Groupwide services
for the Bandai Namco Group

Bandai Namco Amusement Lab Inc.	Operations related to research, planning, and development in areas related to content and amusement machines for realentertainment facilities
Bandai Namco Amusement America Inc. 	Planning and production of amusement machines; planning, production, and sales of indoor-use recreation products; exports to
Europe and Japan of amusement machines manufactured by other companies; repair of amusement machines
NAMCO UK LTD.

Planning and operation of entertainment facilities

Bandai Namco Aces Inc.	Planning, development, and operation of home video games, network content, PC content, etc.

Bandai Namco Amusement Europe Ltd.

Sales of amusement machines

Bandai Namco Europe S.A.S.	Regional headquarters in Continental Europe, providing support for the implementation of strategies by operating companies, etc.;
planning, development, and sales of home video games, and planning, development, and distribution of network content as an
operating holding company

NAMCO ENTERPRISES ASIA LTD.

Planning and operation of entertainment facilities

Bandai Namco Amusement (Shanghai) Co., Ltd.

Planning and operation of entertainment facilities

Bandai Namco Nexus Inc.	Development, operation, and analysis of online games, online distribution platforms, and services for IP fans, etc.

Bandai Namco Entertainment America Inc.	Planning, development, and sales of home video games; planning, development, and distribution of network content
Reflector Entertainment Ltd.

Planning and production of entertainment content, such as network content, home video games, etc.

Bandai Namco Mobile S.L.	Development and marketing of network content
Bandai Namco Studios Singapore Pte. Ltd. 	Planning and development of home video games, amusement machines, etc.
Bandai Namco Entertainment (Shanghai) Co., Ltd.	Planning, operation, and production of network content
Planning, development, production, and sales of toys, capsule toys, cards, candy toys, plastic models, prizes, etc.; production andsales of toys, etc., for China

Toys and Hobby Business
BANDAI CO., LTD.	Planning, development, manufacturing, and marketing of toys, capsule toys, cards, candy toys, confectionery,
and foods, apparel, sundries, and other products
BANDAI SPIRITS CO., LTD. 	Planning, development, manufacturing, and sales of toys and plastic models for the mature fan base as well as prizes,
sundries, etc.
MegaHouse Corporation

Planning, development, production, and sales of toys, candy toys, figures, etc.

CCP Co., Ltd.	Planning, development, production, and sales of consumer electronics and sundries
SUN-STAR STATIONERY CO., LTD.	Planning, development, production, and sales of character stationery, fancy stationery, schoolchildren’s stationery, creative
stationery, premium stationery, and other sundries

Affiliated Business Companies
BANDAI LOGIPAL INC.	International distribution, customs brokerage, amusement-related business, product inspection,
product ­manufacturing support, etc.
LOGIPAL EXPRESS INC.	Truck freight, industrial waste collection and transportation, logistics management, warehouse operations,vehicle maintenance, etc.
Bandai Namco Business Arc Inc.	Work related to the Bandai Namco Group’s general affairs, personnel, finance and accounting,and information systems
J·Broad Co., LTD. 	Consulting related to new graduate and mid-career hiring plans; planning, production, and publication of employment public
relations media; acquisition, analysis, and provision of employment-related information; sales of employment aptitude tests forcompanies; planning related to public relations and education for colleges, junior colleges, etc.; implementation of practice
employment tests for students; employment personnel referral business (Permit No.: 13-ユ-010991)

HAPPINET CORPORATION*	Distribution of toys, visual and music products, video games, and amusement products (listed on Tokyo Stock Exchange,
Prime Market)
Drecom Co., Ltd.*

Game business; advertising and media business

Italian Tomato Ltd.*	Management of restaurants; franchise operations; production, sales, and provision of production guidancefor pastries* Companies accounted for by the equity method

HEART CORPORATION	Planning, production, processing, and wholesale sales of seasonal special event candy and candy toys
PLEX CO., LTD.	Character design; product design, planning, and sales
Bandai Namco Craft Inc.	Planning, development, and manufacturing of toys, plastic models, medical equipment, pachinko and pachislot machines,
electronic-related equipment, etc.; contract operations for various types of inspecting and testing(ISO 17025-accredited testing organization)
Bandai Namco Prize Marketing Inc.	Sales of prizes, etc., for amusement facilities
ARTPRESTO CO., LTD.	Planning, design, and printing (packages, catalogs, posters, cards); website production, event planning, and administration
People Co., Ltd.*	Planning, development, and sales through outsourced contract production for toys, playground equipment,
bicycles, and furniture
Tsuburaya Productions Co., Ltd.*	Planning, production, and distribution of visual products, etc.
Bandai Namco Toys & Collectibles America Inc.	Sales/promotions, event sales, e-commerce, etc., for toys and products for the mature fan base, such as collectible figures
BANDAI S.A.S.	Sales of toy-related products in France
BANDAI UK LTD.	Sales of toy-related products in the U.K.
BANDAI ESPAÑA S.A.	Sales of toy-related products in Spain
Bandai Namco Entertainment (Shanghai) Co., Ltd.	Planning, operation, and production of network content
Planning, development, production, and sales of toys, capsule toys, cards, candy toys, plastic models, prizes, etc.; production andsales of toys, etc., for China
Bandai Namco Asia Co., Ltd.	Procurement, sales, importing, and exporting of toys, etc., in Asia (excluding Japan)
BANDAI (SHENZHEN) CO., LTD.	Production guidance and development support for cooperating plants; provision of services related to quality control, etc.;
provision of quality testing, plant auditing, and other services
Bandai Namco Korea Co., Ltd.	Planning and sales of toy-related products in South Korea
Bandai Namco (Thailand) Co., Ltd.	Production of Super Sentai series robot toys as well as molds
Bandai Namco Philippines Inc.	Manufacturing of toys (principally capsule toys, figures, and lower-priced toys)
Bandai Namco Trading (HK) Limited	Manufacturing and production management of prizes for amusement facilities, convenience stores, etc., and of products
for sale overseas
BANDAI CORPORACION MEXICO, S.A. de C.V.	Sales of toy-related products in Mexico

9091