Bandai Namco Group Mid-term Plan: April 2012–March 2015

Key insights

6 takeaways

01
Bandai Namco targets record financial performance by March 2015, aiming for 480 billion yen in consolidated net sales and 42.5 billion yen in operating income.See it on page 10
02
The strategy focuses on three core business areas: Toys and Hobby, Content, and Amusement Facilities, utilizing a group-wide network to integrate arcade games, social media, and visual content.See it on page 17
03
The company plans to restructure video game operations in the U.S. and Europe to drive profit recovery while treating Asia as a primary growth region for localized product development.See it on page 15
04
Namco Bandai Studio was established to streamline development processes, improve market responsiveness, and maximize the commercial value of the group's intellectual property portfolio.See it on page 15
05
Financial policy prioritizes shareholder returns, specifically maintaining a consolidated dividend payout ratio of 30% throughout the 2012–2015 period.See it on page 22
06
The group intends to solidify its Japanese market leadership by leveraging cross-category IP utilization and strengthening established character products.See it on page 16

Summary

The Bandai Namco Group’s mid-term plan for April 2012 through March 2015 outlines a strategic roadmap to transition from a period of recovery to sustainable growth. The primary objective is to achieve record financial performance, specifically targeting consolidated net sales of 480 billion yen and operating income of 42.5 billion yen by the fiscal year ending March 2015. The plan emphasizes the acceleration of global expansion, the enhancement of intellectual property (IP) value, and the implementation of a more integrated business model to drive profitability.

The strategy is categorized into three core business areas: Toys and Hobby, Content, and Amusement Facilities. In Japan, the company aims to solidify its market-leading position by strengthening long-established character products and leveraging cross-category IP utilization. Conversely, in the United States and Europe, the focus shifts to profit recovery through integrated brand management and the restructuring of video game software operations. Asia is identified as a key growth region, where the company intends to replicate its successful Japanese business models, including localized product development and the expansion of character-themed amusement facilities.

Methodologically, the plan relies on a functional strategy that prioritizes a group-wide network to facilitate horizontal integration across various media platforms, such as arcade games, social networking services, and visual content. Furthermore, the company is investing in human resources to cultivate global leadership and improve operational efficiency. Financial policy remains focused on shareholder returns, maintaining a consolidated dividend payout ratio of 30%. By streamlining development through initiatives like the creation of the Namco Bandai Studio, the group seeks to improve responsiveness to market changes and maximize the commercial potential of its diverse IP portfolio.