INTEGRATED REPORT 2022

www.bandainamco.co.jp

Printed in Japan

Bandai Namco's Purpose

Bandai Namco exists to share dreams,

fun and inspiration with people around the world. Connecting people and societies in the enjoyment of 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 a life-sizeGundam making a strong impression as it walks through the community. Bandai Namco's Purpose Movie can be seen on the Company's website at https://www.bandainamco.co.jp/en/about/purpose.html

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CONTENTS

04 ORGANIZATIONAL STRUCTURE AND IP AXIS STRATEGY

06 THE BANDAI NAMCO GROUP- OUR VALUE CREATION PROCESS

08 MAJOR IP IN GROUP PRODUCTS AND SERVICES

10 RISKS AND OPPORTUNITIES FOR THE BANDAI NAMCO GROUP

12 THE BANDAI NAMCO GROUP- 1 YEAR OF RESULTS

14 DIRECTORS, BANDAI NAMCO HOLDINGS

16 PRESIDENT'S MESSAGE

20 CFO/CISO'S MESSAGE

22 ROUNDTABLE DISCUSSION AMONG OUTSIDE DIRECTORS

IR

Sustainability

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

https://www.bandainamco.co.jp/

en/index.html

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28 SPECIAL FEATURE:

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

34 MESSAGES FROM THE PRESIDENTS OF THE BUSINESS MANAGEMENT COMPANIES

42 MAIN STRATEGIES:

IP AXIS STRATEGY / PERSONNEL STRATEGY / SUSTAINABILITY

68 CORPORATE GOVERNANCE

78 DIRECTOR SYSTEM

82 FINANCIAL SECTION

  1. CORPORATE DATA
  2. OVERVIEW OF MAIN GROUP COMPANIES

About Integrated Report 2022

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 the information available to management as of August 2022 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:

  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 your reference and convenience only and does not guarantee its accuracy or otherwise. In the event of any discrepancies, the Japanese original inte- grated report shall have precedence.

Formulating the Purpose and Introducing a New Corporate Logo

Connecting people and societies in the enjoyment

of uniquely entertaining­products 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 the meaning of our existence for society, the reason why we conduct business operations and corporate activities, and the significance 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 from around 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 of aiming for the same future has become an established part of Bandai Namco's corporate culture. We redefined that concept in the Purpose. As we cooperate with people around the world, the result of "connecting and working together to create things" will be "Fun for All into the Future," which is linked to providing fun and inspiration to people around the world 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, and we changed the logo to incorporate the idea that Bandai Namco is moving on to the next stage. The new logo, which has 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 the world 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 business while 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.

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ORGANIZATIONALSTRUCTURE AND IP AXIS STRATEGY

With a system of three Units, the Bandai Namco Group is creating a diverse range of entertainment under the ALL BANDAI NAMCO concept. In addition, 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) in order to provide the optimal products and services in the optimal regions at

the optimal times.

ORGANIZATIONAL STRUCTURE

Regional headquarters

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

* Operating holding company

STRATEGY AXIS IP AND STRUCTURE ORGANIZATIONAL

ENTERTAINMENT UNIT

Digital Business

Business Management Company:

Bandai Namco Entertainment Inc.

Planning, development, and distribution of network content; planning, develop- ment, and sales of home video games

Toys and Hobby Business

Business Management Company:

BANDAI CO., LTD.

IP PRODUCTION UNIT

Business Management Company:

Bandai Namco Filmworks Inc.

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

AMUSEMENT UNIT

Business Management Company:

Bandai Namco Amusement Inc.

Planning, development, production, and sales of amusement machines; planning and operation of amusement facilities, etc.

AFFILIATED BUSINESS COMPANIES

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

The optimal

time

Maximizing

IP Value

Planning, development, production, and sales of toys, capsule toys, cards, confectionery and foods, apparel, sundries, plastic models, prizes, stationery, and other products

IP AXIS STRATEGY

CARDS

HOME VIDEO

GAMES

The optimal

AMUSEMENT

TOYS

outlet

FACILITIES

CONFECTIONERY

and FOODS

VISUAL and

VIDEO ON

The optimal

MUSIC PACKAGE

DEMAND (VOD)

region

CONTENT

LIVE

NEW

Introducing products DEVICES and services that leverage

the worldviews of IPs

AMUSEMENT

ENTERTAINMENT

MACHINES

NETWORK

PLASTIC

MOVIES

CONTENT

MODELS

Cultivation

Creation

Co-creation

IP investment

Accumulated know-how

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

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5

THE BANDAI NAMCO GROUP-

OUR VALUE CREATION PROCESS

Working Together with Fans Around the World to Create the Future

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

tive management resources to implement the global rollout of the IP axis strategy, which is the Group's greatest strength and business

VALUE

model, and to provide products and services that leverage the appeal of IP. Moreover, through those products and services, we are

CREATION

striving to fulfill our responsibility to contribute to a sustainable society and aiming to realize sustained growth over the medium to

long term. In these ways, the Bandai Namco Group is working to meet the expectations of its stakeholders. Through these initiatives,

PROCESS

we will strive to provide fun and inspiration to people around the world, to create smiles and happiness into the future, and to achieve

THE BANDAI

NAMCO GROUP'S

OPERATING

Bandai Namco's Purpose:

growth in our corporate value.

ENVIRONMENT

AND ISSUES FACING THE GROUP

INPUT (KEY MANAGEMENT RESOURCES)

Number of consolidated

Strategic investment to

Annual number

Corporate

strengthen the IP axis strategy:

Diverse

employees:

Planning and

of IP utilized:

culture of

40.0

human

development

Open

OUTCOME

VALUE CREATION

Changes in

customer

lifestyles and

preferences

Intensifying

competition in global markets

Changes in technology, such as network adoption

Platform

diversification

Dependence on

specific IP, businesses, or regions

Securing

human

resources

Addressing climate

change and

environmental

change

Threats, such as

disasters,

epidemics,

and terrorism

9,886people

taking on

¥

billion

More than

resources

challenges

over three years

capabilities

300

(As of March 31, 2022)

(FY2023.3 to FY2025.3)

Game content R&D

Advertising expenses:

Shareholders'

investments:

Sales and

Stable

equity ratio:

Technical

¥53.5billion

¥95.1billion

67.7%

marketing

financial

capabilities

capabilities

position

(FY2022.3)

(FY2022.3)

(FY2022.3)

ADVANCING

Connect with Fans

THE MID-TERM PLAN

MAIN STRATEGIES

IP Axis Strategy

Personnel Strategy

IP×Fan (Connecting with fans through IP)

IP×Value (Enhancing IP value)

Developing diverse human resources

IP×World (Connecting the world through IP)

BUSINESS MODEL (IP AXIS STRATEGY)

Introducing products

and services

that leverage the worldviews of IPs

CORPORATE GOVERNANCE

partnerships

Sustainability

Connecting to a smile

into the future

Maximizing

IP Value

Strengthening

the IP axis

strategy

Expanding

business on

a global basis

Bolstering

financial position

Creating new entertainment

Strengthening connections with customers

Utilizing

diverse human

resources

Advancing

sustainability

activities

Shareholders

Local

communities

Customers

Increasing

Increasing

economic value

social value

Employees

Partners

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Disclaimer

Bandai Namco Holdings Inc. published this content on 28 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 October 2022 16:11:43 UTC.