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Cover of Integrated Report 2018

Bandai Namco

Integrated Report 2018

The Bandai Namco Group’s 2018 Integrated Report outlines a strategic pivot toward becoming a global intellectual property (IP) development powerhouse. Following a record-breaking fiscal year in 2018, which saw consolidated net sales reach ¥678.3 billion and operating profit climb to ¥75.0 billion, the organization has transitioned to a new mid-term plan spanning through 2021. The core thesis centers on the "IP Axis Strategy," which seeks to maximize the value of properties like Dragon Ball and Mobile Suit Gundam by leveraging cross-unit collaboration and digital transformation to extend the lifecycle of entertainment content across global markets. To facilitate this growth, the group underwent a significant structural reorganization, moving from three strategic business units to five specialized segments: Toys and Hobby, Network Entertainment, Real Entertainment, Visual and Music Production, and IP Creation. This restructuring is supported by a ¥25 billion strategic investment fund aimed at fostering original IP creation and accelerating expansion into key growth regions, particularly China. The company is also prioritizing the "ALL BANDAI NAMCO" branding concept, which integrates regional and business-axis operations to provide cohesive, long-term entertainment experiences for a diverse, international fan base. Financial stability and corporate governance remain central to the group’s operational philosophy. The company has adopted a shareholder-friendly return policy, targeting a total return ratio of 50% or more, and has strengthened its oversight through an independent board structure and rigorous internal controls. While the group anticipates a temporary performance plateau in 2019 due to heavy reinvestment in infrastructure and new IP, the long-term objective remains a sustainable increase in corporate value, supported by robust risk management and a commitment to transparency in its Japanese GAAP-compliant financial reporting.