Bandai Namco Group Mid-term Plan: April 2018 to March 2021

Key insights

7 takeaways

01
Bandai Namco targets consolidated net sales of 750 billion yen and an operating profit of 75 billion yen by March 2021, up from 630 billion yen and 57 billion yen in fiscal year 2018.See it on page 15
02
The group is allocating 25 billion yen through 2021 specifically for the creation and development of original intellectual property.See it on page 21
03
A new five-unit organizational structure has been implemented, featuring the Toys and Hobby, Network Entertainment, Real Entertainment, Visual and Music Production, and a newly established IP Creation Unit.See it on page 16
04
The company is shifting its shareholder returns policy to a dividend payout ratio of 50% or higher to prioritize capital efficiency and return on equity.See it on page 27
05
Strategic expansion efforts include a full-scale entry into the Chinese market and the implementation of an 'All Bandai Namco' global branding initiative.See it on page 25
06
The group is diversifying its business portfolio by increasing investments in live entertainment, e-sports, and digital services.See it on page 24
07
Specialized entities such as Bandai Spirits have been established to better target and serve mature fan bases.See it on page 23

Summary

The Bandai Namco Group Mid-term Plan for April 2018 to March 2021 outlines a strategic shift toward becoming a global leader in entertainment by evolving its core IP axis strategy. The primary objective is to transition into an IP creation-focused organization that leverages new business models and an integrated corporate structure. By the end of the three-year period, the group targets consolidated net sales of 750 billion yen and an operating profit of 75 billion yen, representing a significant increase from the 630 billion yen and 57 billion yen forecasts for the fiscal year ending March 2018.

To achieve these goals, the group is implementing a five-unit organizational structure: Toys and Hobby, Network Entertainment, Real Entertainment, Visual and Music Production, and a newly established IP Creation Unit. A central pillar of this plan is the aggressive investment in original IP, with 25 billion yen allocated for creation and development through 2021. This includes structural changes to boost internal IP capabilities and expanded collaborations with external partners. Furthermore, the group is prioritizing regional growth, specifically targeting a full-scale entry into the Chinese market and the implementation of an "All Bandai Namco" concept to unify branding and operations across global territories.

Operational strategies also emphasize the expansion of business fields, such as strengthening live entertainment, e-sports, and digital services. The group is also refining its approach to mature fan bases through the establishment of specialized entities like Bandai Spirits. Complementing these business initiatives is a revised shareholder returns policy, which shifts toward a dividend payout ratio of 50% or higher, reflecting a stronger focus on capital efficiency and return on equity. These measures are designed to foster a corporate culture that empowers employees and drives innovation, ensuring the group remains competitive in a rapidly evolving global entertainment landscape.