BANDAI NAMCO HOLDINGS INC. BANDAI NAMCO Group
INTEGRATED REPORT 2021
www.bandainamco.co.jp
OUR MISSION STATEMENT | OUR VISION | |||
"Dreams, Fun and Inspiration" are the Engine of Happiness.
Through our entertainment products and services, BANDAI NAMCO will continue to provide
"Dreams, Fun and Inspiration" to people around the world, based on our boundless creativity and enthusiasm.
As an entertainment leader across the ages, BANDAI NAMCO is constantly exploring new areas and heights in entertainment. We aim to be loved by people who have fun and will earn their trust as "the Leading Innovator in Global Entertainment."
CONTENTS
02 OUR GROWTH TRACK
04 THE BANDAI NAMCO GROUP-1 YEAR OF RESULTS
06 THE BANDAI NAMCO GROUP- ORGANIZATIONAL STRUCTURE AND OVERVIEW
08 MAJOR IP IN GROUP PRODUCTS AND SERVICES
26 MESSAGE FROM THE DIRECTOR IN CHARGE OF MANAGEMENT PLANNING AND ESG
28 MESSAGES FROM THE PRESIDENTS OF THE BUSINESS MANAGEMENT COMPANIES
38 REVIEW OF THE PREVIOUS MID-TERM PLAN (APRIL 2018 TO MARCH 2021)
The strength of the BANDAI NAMCO Group is the IP axis strategy, under which we work to maximize the value of characters and other intellectual property (IP) to provide the optimal products and services at the optimal time in the optimal region.
Based on the IP axis strategy, we will strive to forge connections with fans in global markets and contribute to the creation of a world that fosters happiness by providing "Dreams, Fun and Inspiration" through the Group's products and services.
10 THE GROUP'S GREATEST STRENGTH- THE IP AXIS STRATEGY
12 THE BANDAI NAMCO GROUP- OUR VALUE CREATION PROCESS
14 BOARD OF DIRECTORS AND AUDIT & SUPERVISORY BOARD MEMBERS
16 CHAIRMAN'S MESSAGE
18 PRESIDENT'S MESSAGE
22 RISKS AND OPPORTUNITIES FOR THE BANDAI NAMCO GROUP
24 MESSAGE FROM THE DIRECTOR IN CHARGE OF FINANCE AND INFORMATION
40 SPECIAL FEATURE
EMPOWER, GAIN MOMENTUM, AND ACCELERATE EVOLUTION IN A NEW ERA
56 ESG SECTION
ROUNDTABLE DISCUSSION AMONG OUTSIDE DIRECTORS / CORPORATE GOVERNANCE / OFFICER SYSTEM / HUMAN RESOURCES INITIATIVES / CSR INITIATIVES
84 FINANCIAL SECTION
- CORPORATE DATA
- OVERVIEW OF MAIN GROUP COMPANIES
IR | CSR | |||||||||||||||||||||
Our website provides a variety of information about the BANDAI
NAMCO Group, such as IR information and CSR initiatives. Please utilize the website in conjunction with this report.
www.bandainamco.co.jp/en/index.html
About Integrated Report 2021
In editing this report, we made reference to the Value Reporting Foundation's International Integrated Reporting Framework and SASB disclosure standards for Toys & Sporting Goods and for Software and IT Services, as well as the TCFD recommendations.
Forward-Looking Statements
The forward-looking statements in this report are based on the information available to management as of August 2021 and include 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.
Notes:
- Figures in this report have been rounded down.
- FY2021.3 represents the one-year period ended March 31, 2021.
- Unless otherwise noted, figures in this report are as of August 2021.
1
OUR GROWTH TRACK
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 response, 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 the fiscal year ended March 31, 2021, our businesses were affected by the spread of COVID-19, but the Group's wide-ranging business portfolio demonstrated its effectiveness, and we achieved record-high levels of net sales and operating profit.
Registered record-high
net sales for seven consecutive years.
Management
Integration
Net Sales
(¥ billion) | 450.8 |
459.1
Operating 42.2
Profit 35.6
(¥ billion)
For the Fiscal Years
Ended March 31
Restart!
Launched the Restart Plan and announced the IP axis strategy to | |||
transform ourselves into a speedy Group, improve our profitability, | |||
and strengthen our financial standing. | 620.0 | ||
575.5 | |||
565.4 | |||
507.6 | |||
487.2 | 63.2 | ||
460.4 | |||
426.3 | 454.2 | 56.3 |
378.5 | 394.1 | 48.6 | 49.6 |
44.6 |
34.6 | Reorganized our business | |
33.4 | ||
segments. Established | ||
the Network Entertainment | ||
and Visual and Music | ||
22.3 | Production Units. | |
16.3 |
1.8
Achieved record-high | Attained record-high |
operating profit | |
net sales and | |
for three | |
operating profit. | |
consecutive years. | |
740.9
732.3723.9
678.3 | 84.0 | 84.6 |
75.0 | 78.7 | |
Transitioned from a system | ||
of three business | segments | |
to a system of | five Units, | Changed to a system of three Units. |
including the newly | ||
The Toys and Hobby Unit and the | ||
established | ||
Network Entertainment Unit were | ||
Real Entertainment Unit and | ||
combined to form the Entertainment | ||
IP Creation Unit. | ||
Unit, while the Visual and Music | ||
Production Unit and the IP Creation Unit | ||
were combined to form the | ||
IP Production Unit. The Real | ||
Entertainment Unit changed its name to | ||
the Amusement Unit. |
TRACK GROWTH OUR
2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||
Reduction in speed | Introduction of | Transformation | Adoption of IP | IP axis strategy: | |||||||||||||||||||||||||||||
Unresponsive to operating | Restart Plan | into a speedy Group | axis strategy by | From adoption to acceleration | |||||||||||||||||||||||||||||
environment and trends | the Group | ||||||||||||||||||||||||||||||||
2021.4-2022.3 Enhancing
2007.3-2009.3Mid-term Plan2010.3-2012.3 Mid-term Plan2013.3-2015.3 Mid-term Plan 2016.3-2018.3Mid-term Plan2019.3-2021.3 Mid-term Plan Business Foundations andSystems for the Next Mid-term Plan
2 | 3 |
THE BANDAI NAMCO GROUP-
FY2021.31 YEAR OF RESULTS
BANDAI NAMCO Holdings Inc. and Consolidated Subsidiaries
For the Fiscal Years Ended March 31
Net Sales | Operating Profit | |||||||||
¥740.9billion | ¥84.6 billion | |||||||||
+2.3% | +7.5% | |||||||||
YoY | YoY | |||||||||
732.3 | 723.9 740.9 | 84.0 | 84.6 | |||||||
678.3 | 75.0 | 78.7 | ||||||||
620.0 | ||||||||||
Operating 63.2 | ||||||||||
Net Sales | Profit |
(¥ billion) | (¥ billion) | 10.2 | 11.1 | 11.5 | 10.9 | 11.4 |
Operating | ||||||||||
20.6 | 20.5 | 22.3 | Profit | |||||||
Overseas | 20.0 | Margin | ||||||||
18.7 | ||||||||||
(%) | ||||||||||
Sales | ||||||||||
Proportion | 2017 | 2018 | 2019 | 2020 | 2021 | 2017 | 2018 | 2019 | 2020 | 2021 |
(%) |
Overview of Results
In the fiscal year ended March 31, 2021, the spread of COVID-19 had an effect on the Real Entertainment Unit, the Visual and Music Production Unit, and other businesses. However, we advanced a variety of initiatives to adapt to the changes in customer lifestyles and preferences, such as strengthening sales and marketing through the use of digital technologies. In the Toys and Hobby Unit, multiple products enjoyed popularity with customers, such as products for the mature fan base and products utilizing new IP. In addition, in the Network Entertainment Unit, sales of network content and repeat sales of home video games were favorable. The Group's favorable overall results are attributable to the effectiveness of our wide-ranging business portfolio.
Shareholders' Equity Ratio | |||||
69.7% | |||||
429.3 | 453.0 472.8 | ||||
394.1 | |||||
357.6 | |||||
Total | 71.3 | 71.5 | 72.5 | 69.7 | |
Shareholders' | 70.0 | ||||
Equity | |||||
(¥ billion) |
Shareholders'
Equity Ratio
(%)
2017 2018 2019 2020 2021
RESULTS OF YEAR 1
Cash Dividends per Share | Basic Earnings per Share | |||||||||
¥112 | ¥-20 | ¥222.58 | ||||||||
YoY | YoY | ¥-39.81 | ||||||||
145 | 132 | 288.40 | ||||||||
(Yen) | ||||||||||
123*2 | 262.39 | |||||||||
112 | 246.29 | |||||||||
222.58 | ||||||||||
201.03 | ||||||||||
Cash | ||||||||||
82*1 | 49.9 | 50.3 | 50.3 | 50.3 | ||||||
Dividends | 40.8 | |||||||||
per Share | ||||||||||
(Yen) | ||||||||||
Total Payout | ||||||||||
Ratio | ||||||||||
(%) | 2017 | 2018 | 2019 | 2020 | 2021 | 2017 | 2018 | 2019 | 2020 | 2021 |
*1 FY2017.3 includes a special dividend of ¥20. | ||||||||||
*2 FY2018.3 includes a special dividend of ¥25. |
Segment Sales Ratio
Breakdown of Operating Profit (Loss) by Segment
Debt/Equity Ratio*2
ESG (For detailed data, please refer to FACT BOOK 2021, a separate publication.)
IP Creation | Others |
3.6% | 4.3% |
Visual and Music | Toys and Hobby |
Production | |
3.5% | 37.3% |
Real | Network |
Entertainment | Entertainment |
8.0% | 43.3% |
Note: Percentage figures are calculated based on sales before elimination of inter-segment transactions.
Toys and Hobby
Network Entertainment
Real Entertainment
Visual and Music Production
IP Creation
Others
Operating | Operating |
Profit (Loss) | Profit Margin |
¥38.2 billion | 12.9% |
¥57.3 billion | 16.7% |
¥-8.3 billion | - |
¥0.9 billion | 3.5% |
¥2.7 billion | 9.7% |
¥1.4 billion | 4.2% |
0.05 times
27.3 | ||
Interest-Bearing Debt*1 | ||
(¥ billion) | ||
Debt/Equity | 6.1 | 0.05 |
Ratio*2 | ||
(times) | 0.8 | 1.4 | 0.9 | 0.01 |
0.00 | 0.00 | 0.00 |
Number of Female Managers*
157 people
Ratio of Female Managers to Total Managers*
19.1%
Number of Independent Directors or Independent Audit & Supervisory Board Members
7 people
Number of Consolidated Employees
9,550 people
Industrial Waste
2,099t
CO Emissions
52,256t-co2
2017 | 2018 | 2019 | 2020 | 2021 |
*1 From FY2020.3, certain overseas consolidated subsidiaries applied IFRS 16 "Leases." Increase in long-term borrowings in FY2021.3
*2 Debt/equity ratio = Interest-bearing debt / Total shareholders' equity
* Figures are for the five Unit core companies in FY2021.3.
Contributions to Net Sales by Geographic Region
Asia, excluding Japan
Europe 7.0%
7.4%
Americas | Japan |
7.9% | 77.7% |
Note: Percentage figures are calculated based on external sales. Figures are estimates based on management accounting.
Return on Equity (ROE) | Return on Assets (ROA) |
10.2% | 13.0% |
511.4 | 732.7 | ||||||||
387.3 | 429.6 | 454.6 | 612.9 619.8 | ||||||
348.7 | 540.4 | ||||||||
15.5 | 488.0 | ||||||||
14.7 | |||||||||
13.3 | 13.1 | 14.7 | 15.1 | 13.0 | |||||
13.5 | 12.9 | ||||||||
10.2 | |||||||||
Total Net Assets | |||||||||
Total Assets | |||||||||
(¥ billion) | |||||||||
(¥ billion) | |||||||||
ROE | ROA | ||||||||
(%) | (%) | ||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2017 | 2018 | 2019 | 2020 | 2021 |
Sales of IP* Products and Services (Group Total)
KAMEN RIDER series | Mobile Suit Gundam series | ||||
2020 | 2021 | 2020 | 2021 | ||
¥28.9 billion | ¥95.0 billion | ||||
¥31.2 billion | ¥78.1 billion | ||||
DRAGON BALL series | BORUTO/NARUTO | ||||
2020 | 2021 | 2020 | 2021 | ||
¥134.9 billion | ¥127.4 billion | ¥13.0 billion | ¥21.4 billion | ||
ONE PIECE | |||||
2020 | 2021 | ||||
¥38.0 billion | |||||
¥34.9 billion | |||||
* IP: Characters and other intellectual property
Game Content R&D Investment and Capital Investment
83.5 | 83.2 | 84.7 | ||||
72.4 | ||||||
59.0 | 54.8 | |||||
Game Content | ||||||
R&D Investment | ||||||
(¥ billion) | ||||||
27.3 | 22.7 | |||||
19.5 | 22.0 | |||||
Capital | ||||||
Investment | ||||||
(¥ billion) | 2017 | 2018 | 2019 | 2020 | 2021 | |
4 | 5 |
The BANDAI NAMCO Group-
ORGANIZATIONAL STRUCTURE
AND OVERVIEW
In advance of the next Mid-term Plan, which starts in April 2022, we implemented a reorganization from the previous five-Unit system to a three-Unit system.
Purpose of Reorganization | Business Overview | Results in the Fiscal Year Ended March 31, 2021* |
AND STRUCTURE ORGANIZATIONAL
ENTERTAINMENT UNIT
Digital Business
Toys and Hobby Business
Through the combination of the Digital business (formerly the Network Entertainment Unit) and the Toys and Hobby business (formerly the Toys and Hobby Unit), the Entertainment Unit will promote closer coordination of business activities centered around the IP axis and cooperation and expansion that mutually utilize a wide range of outputs, while enhancing the creation of entertainment and strengthening the digitalization corresponding to customers' new sense of value.
With these changes, the Unit aims to increase competitiveness in global markets.
Digital Business
Business Management Company:
BANDAI NAMCO Entertainment Inc.
Planning, development, and distribution of network content; planning, development, and sales of home video games
Toys and Hobby Business
Business Management Company:
BANDAI CO., LTD.
Planning, development, production, and sales of toys, capsule toys, cards, confectionery and foods, apparel, sundries, plastic models, prizes, stationery, and other products
Digital Business | |
Net Sales | Operating Profit |
¥337.9 billion | ¥56.7 billion |
Toys and Hobby Business | |
Net Sales | Operating Profit |
¥300.8 billion | ¥39.0 billion |
OVERVIEW
IP PRODUCTION UNIT
Visual and Music Business Creation Business
The IP Production Unit will consolidate the studio and production function that creates IP, in order to strengthen the capabilities to create IP which enables it to produce more-diverse synergy effects through collaboration not only within the Unit but also with various businesses of the Group and external partners.
Visual and Music Business
Business Management Company:
BANDAI NAMCO Arts Inc.
Planning, production, and management of visual and music content; artist discovery and development; and live entertainment operations
Creation Business
Business Management Company:
SUNRISE INC.
Planning and production of animations; management and administration of copyrights and other rights; production of music related to animations and management and administration of music and masters related to animations
Visual and Music Business | |
Net Sales | Operating Profit |
¥34.2 billion | ¥1.5 billion |
Creation Business | |
Net Sales | Operating Profit |
¥28.2 billion | ¥2.7 billion |
AMUSEMENT UNIT
The Amusement Unit provides points of customer contact in the IP axis strategy. The Unit will select and focus on the strengths unique to the BANDAI NAMCO Group in such ways as utilizing IP and the Group's resources, and work to build a strong business foundation to generate earnings stably under a more unified framework for collaborating with the Group's other businesses.
Business Management Company:
BANDAI NAMCO Amusement Inc.
Planning, development, production, and sales of amusement machines; planning and operation of amusement facilities, etc.
Net Sales | Operating Loss |
¥63.9 billion | ¥-8.3 billion |
AFFILIATED BUSINESS | and administrative services | Net Sales | Operating Profit |
Supporting the Units in such areas as distribution, logistics, | ¥24.6 billion | ¥0.6 billion | |
COMPANIES |
* Due to the change in the Unit system, FY2021.3 results were reorganized to the business segment classifications after the change.
6 | 7 |
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Bandai Namco Holdings Inc. published this content on 01 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 September 2021 15:41:12 UTC.
