Updated Mar 21, 2026 by Bandai Namco
Financial · March 1, 2007
Published by Bandai Namco
The 2007 annual report presents Bandai Namco’s first full fiscal year after the 2005 merger, emphasizing the financial and strategic outcomes of the integration. Net sales reached ¥459 billion, a modest 1.8 % increase year‑on‑year, while operating income rose 18.4 % to ¥42.2 billion and net income surged 71.4 % to ¥24.3 billion, lifting return on equity to 9.4 %. Although the ¥470 billion sales target was missed, profitability exceeded internal goals, and overseas revenue grew to 22.4 % of total sales, reflecting a deliberate push into international markets. Performance varied across the five strategic business units. The Amusement Facility unit posted ¥88.2 billion in sales (+8.5 %) and more than doubled its operating profit, while the Game‑Contents unit generated ¥139.2 billion (+6.4 %) with an 18.6 % rise in operating income. Geographic analysis shows a 22.4 % jump in Americas sales to ¥53.99 billion, turning a loss into a ¥3.38 billion profit, whereas Japan sales slipped 1.8 % and operating income fell 11.9 %; Europe and other Asian markets delivered double‑digit growth. The balance sheet strengthened, with total assets climbing to ¥408.5 billion
2007 Report Annual Inc. Holdings BANDAI NAMCO BANDAI Holdings Inc. Annual Report 2007
The BANDAI NAMCO Group creates exciting The BANDAI NAMCO Group creates exciting and attractive entertainment around the world. and attractive entertainment around the world. The BANDAI NAMCO Group was established in September 2005 through the management integration of Bandai and NAMCO. The Group is developing entertainment-related products and services in a wide range of fields, including toys, amusement facilities, arcade game machines, video game software, network services, and visual products, in Japan and overseas. Since our establishment, we have worked to open up new possibilities and made steady progress. As we move forward, we will strive to accurately track changes in our markets around the world and to create movements with exciting entertainment that showcases our distinctive strengths. The BANDAI NAMCO Group will endeavor to achieve further growth in accordance with its mission of providing “Dreams, Fun and Inspiration” to people around the world.
Our Vision To Become the World’s Most Inspiring Entertainment Group The BANDAI NAMCO Group will constantly strive to be a pioneer, aiming to deepen and widen the appeal of entertainment and winning the hearts of people worldwide who enjoy having fun. Our ultimate goal is to become the World’s Most Inspiring Entertainment Group. The Business Portfolio of the BANDAI NAMCO Group Visual Toys and Hobby Visual and Toys and Hobby CHARACTER Music Content Networks Life-Style Network Life-Style Amusement Video Game Integration of CHARACTER Software Complementary TECHNOLOGY Strengths LOCATION Video Game Software TECHNOLOGY Amusement LOCATION Facility Game Contents Amusement Operations Arcade Facility Machines C o n t e n t s Consolidated Financial Highlights ......................... 02 Directors and Corporate Auditors ......................... 25 SYNERGY EFFECT: Pursuing Group Synergies ........ 03 Corporate Governance .......................................... 26 To Our Shareholders ............................................. 06 The BANDAI NAMCO Group’s CSR Initiatives ........ 28 An Interview with the President ........................... 08 Overview of Main Group Companies .................... 30 Special Feature: Medium-Term Strategies Business Risks ........................................................ 32 in the Game Contents SBU................................ 12 Financial Section.................................................... 33 Medium-Term Management Plan ......................... 16 Corporate Data ...................................................... 69 Business Strategies by Strategic Business Unit (SBU) ......... 18
.......................... 12 Financial Section.................................................... 33 Medium-Term Management Plan ......................... 16 Corporate Data ...................................................... 69 Business Strategies by Strategic Business Unit (SBU) ......... 18 Forward-Looking Statements The forward-looking statements in this annual report are based on the information currently available to management 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 business environments, market trends, and exchange rate fluctuations relevant to the businesses of the BANDAI NAMCO Group. Notes: 1. All figures in this report are rounded to the nearest unit. 2. Fiscal 2007 or FY2007.3, the year under review, represents the one-year period ended March 31, 2007.
Consolidated Financial Highlights NAMCO BANDAI Holdings Inc. and Consolidated Subsidiaries Millions of yen except per share data and main financial indicators Thousands of U.S. dollars*<sup>1</sup> except per share data For the years ended March 31 2006 2007 2007 For the Year Net sales ¥450,829 ¥459,133 $3,889,310 Gross profit 156,565 168,080 1,423,804 Operating income 35,669 42,224 357,679 Recurring income*<sup>2</sup> 37,122 45,616 386,413 Net income 14,150 24,252 205,438 Capital expenditures 24,020 27,925 236,554 Depreciation 19,144 21,201 179,593 At Year-End Total assets ¥386,651 ¥408,490 $3,460,313 Total Net assets 252,244 284,254 2,407,911 Per Share Data (yen and U.S. dollars*<sup>1</sup> ) Net income ¥54.39 ¥95.73 $0.81 Cash dividends 12.00 28.00 0.24 Main Financial Indicators (%) Return on equity*<sup>3</sup> 5.8% 9.4% Return on assets*<sup>3</sup> 9.6 11.5 Overseas sales proportion 18.8 22.4 Operating income margin 7.9 9.2 Shareholders’ equity ratio 63.0 67.1 *1 U.S. dollar amounts have been translated, for convenience only, at the rate of ¥118.05=U.S.$1, the approximate exchange rate on March 31, 2007. *2 Recurring income is a Japanese accounting term denoting income before extraordinary items. *3 Figures for total shareholders’ equity and total assets as of March 31, 2006, are used in calculating ROE and ROA for the fiscal year ended March 2006.
the approximate exchange rate on March 31, 2007. *2 Recurring income is a Japanese accounting term denoting income before extraordinary items. *3 Figures for total shareholders’ equity and total assets as of March 31, 2006, are used in calculating ROE and ROA for the fiscal year ended March 2006. Net Sales / Operating Income / Net Income / ROE (%) Total Net Assets / Overseas Sales Proportion (%) Operating Income Margin (%) Shareholders’ Equity Ratio (%) (Billions of yen) (%<sub>)</sub> (Billions of yen) (%<sub>)</sub> (Billions of yen) (%<sub>)</sub> (Billions of yen) (%<sub>)</sub> 500 459.1 40.0 50 15.0 25 24.3 25.0 300 284.3 100.0 400 40 42.2 20 20.0 250 80.0 30.0 9.2 10.0 200 67.1 300 22.4 30 15 15.0 60.0 20.0 150 200 20 10 9.4 10.0 40.0 5.0 100 10.0 100 10 5 5.0 50 20.0 0 2003.3 2004.3 2005.3 2006.3 2007.3 0.0 0 2003.3 2004.3 2005.3 2006.3 2007.3 0.0 0 2003.3 2004.3 2005.3 2006.3 2007.3 0.0 0 2003.3 2004.3 2005.3 2006.3 2007.3 0.0 BANDAI NAMCO NAMCO BANDAI Holdings
The 2006 annual report presents the first full‑year results of the joint holding company formed by the September 2005 merger of Bandai and Namco, outlining a strategy that leverages cross‑business synergies across toys, hobby products, visual media, network services, amusement facilities and game software. Financial performance for fiscal 2006 reached ¥450.8 billion in net sales, ¥35.7 billion in operating profit and ¥14.2 billion in net income, delivering earnings of ¥54.4 per share and a ¥12 dividend, while return on equity fell to 5.8 % for Bandai and 9 % for Namco. The report notes that weaker amusement‑facility and game‑software markets forced inventory write‑downs and a deferred‑tax‑asset allowance, causing the group to miss its internal targets. Revenue concentration remained heavily Japan‑centric, with roughly 81 % of sales generated domestically and 19 % from overseas markets. The medium‑term management plan targets a rise in overseas sales to 25 % of total revenue by FY 2009 and ultimately 50 % long‑term, supported by the “Entertainment Hub” model that integrates character merchandising with technology to create and distribute content across multiple channels. Projected additions include ¥5 billion in new toys and hobby sales and ¥30 billion from new amusement‑facility formats, with operating‑margin goals of 15‑20 % across the five Strategic Business Units. Governance is structured around a ten‑member board, a four‑member statutory auditor board and a series of standing committees that oversee strategy, personnel, CSR, compliance and crisis management, complemented by ten internal‑control policies introduced from FY 2007. The consolidated balance sheet shows shareholders’ equity of ¥243.6 billion, strong operating cash generation of ¥31.8 billion, and a year‑end cash balance of ¥113.2 billion after
Bandai Namco faced a severe financial downturn for the fiscal year ending March 31, 2010, reporting a net loss of ¥29.9 billion and a 91.6% collapse in operating income. This decline was primarily driven by a global economic recession, a stagnant DVD market, and a lack of hit software titles, with half of the company’s 86 video game releases failing to achieve profitability. Significant special losses, including a ¥12.75 billion goodwill impairment and ¥21.2 billion in inventory devaluations, further strained the balance sheet. While the Toys and Hobby unit remained resilient through core franchises like Gundam and Masked Rider, the Game Contents and Amusement Facility segments suffered heavy losses across Japan, Europe, and the Americas. In response, the Group initiated the "Restart Plan" in April 2010 to restore profitability and operational agility. Central to this strategy is a shift from a vertical, outlet-based structure to a horizontal "content first" model. This reorganization merged the previously separate game, visual, and music units into a single Content Strategic Business Unit (SBU) designed to maximize Intellectual Property (IP) value across multiple platforms simultaneously. Structural reforms also included a workforce reduction of 800 employees, the closure of 63 unprofitable amusement facilities, and a streamlined management hierarchy that more closely links the holding company to core operations. Looking forward, the Group aims to achieve ¥6.5 billion in cost reductions by fiscal year 2011 while targeting ¥400 billion in net sales. Strategic priorities include a "selection and concentration" approach to game development, expanding into mobile and social networking markets, and leveraging global IP projects such as the 30th anniversary of PAC-MAN. Despite the significant net loss, the Group maintained a stable dividend policy and reinforced its corporate governance and CSR frameworks to ensure long-term stability and global growth.
Bandai Namco’s 2009 annual review presents a candid assessment of a fiscal year dominated by the global financial crisis, which eroded consumer spending and forced the group to miss the objectives of its 2006‑2009 mid‑term plan. Consolidated net sales fell 7.4 % to ¥426.4 billion, operating income dropped 33.1 % to ¥22.3 billion, and net income plunged 63.8 % to ¥11.8 billion, driving a sharp decline in return on equity. All three core segments recorded double‑digit contractions: Toys & Hobby sales fell 8 % with a 19 % fall in operating profit, Game Contents declined 4 % while operating profit fell 26 %, and Amusement Facilities slumped 14 % with operating profit down 76 %. Character‑merchandising contributed ¥13 billion in sales, and the Game Contents SBU generated ¥150.3 billion in net sales and ¥11.6 billion in operating income, though a further decline to ¥5.5 billion in FY 2010 was forecast. The report underscores a strategic pivot toward medium‑ to long‑term growth, anchored in overseas expansion and structural reform. Japan’s share of external sales fell from 81 % in FY 2006 to 74 % in
Bandai Namco’s 2017 integrated report presents a comprehensive account of the company’s financial, strategic, and governance performance, emphasizing the central role of its “IP‑axis” strategy in achieving record results. By leveraging core intellectual properties across games, toys, visual media, and music, the group generated ¥620.1 billion in net sales and ¥63.2 billion in operating profit, a 27.7 % year‑on‑year increase, while free‑cash flow rose 47.7 %. The Network Entertainment segment contributed 57.9 % of sales and 63.8 % of profit, with flagship franchises such as Mobile Suit Gundam (¥74 billion) and Dragon Ball (¥61 billion) underpinning cross‑media expansion and overseas growth in Asia, Europe, and the Americas. Strategic outlook is framed by the newly launched three‑year “NEXT STAGE” plan, which targets global IP expansion, regional autonomy, and continued innovation to meet mid‑term objectives a year ahead of schedule. Governance is reinforced through a ten‑member board—including three independent directors—and an audit‑supervisory board meeting Japanese Corporate Governance Code standards. A robust compliance and risk‑management framework, performance‑linked director compensation, and extensive investor‑relations activities underscore the company’s commitment to transparency and stakeholder trust. Corporate‑social‑responsibility initiatives achieved a 27 % reduction in CO₂ emissions since FY2012 and introduced universal‑design products and supplier audits. Financially, profit attributable to owners reached ¥44.2 billion, EPS rose to ¥201, and dividends of ¥15.4 billion were declared. Acquisitions such as