Bandai Namco Holdings Consolidated Financial Report: Fiscal Year Ended March 31, 2022

Key insights

6 takeaways

01
Bandai Namco achieved significant fiscal growth for the year ended March 31, 2022, with net sales rising 20% to 889.27 billion yen and operating profit surging 48.2% to 125.5 billion yen.See it on page 2
02
The company has set a mid-term financial target for the fiscal year ending March 31, 2025, of 1.1 trillion yen in net sales and a return on equity of at least 12%.See it on page 10
03
A 40 billion yen investment is being directed toward the development of an IP metaverse as part of a three-year plan to maximize long-term intellectual property value.See it on page 10
04
Operational performance was bolstered by the global success of major titles including Elden Ring and Tales of Arise, contributing to a doubling of net cash from operating activities to 121.2 billion yen.See it on page 6
05
The group is undergoing a structural reorganization into three primary segments—Entertainment, IP Production, and Amusement—which includes the formation of Bandai Namco Filmworks Inc. and Bandai Namco Music Live Inc.See it on page 32
06
The company maintains a shareholder return policy targeting a total return ratio of 50% or more to support its long-term growth strategy.See it on page 11

Summary

Bandai Namco Holdings achieved significant financial growth during the fiscal year ended March 31, 2022, characterized by a 20 percent increase in net sales to 889.27 billion yen and a 48.2 percent surge in operating profit to 125.5 billion yen. This performance, which reflects a successful recovery from previous pandemic-related disruptions, was primarily driven by the company’s IP axis strategy and the strong global market reception of major home video game titles such as Elden Ring and Tales of Arise. Across the Digital, Toys and Hobby, and Visual and Music business segments, the organization demonstrated robust operational efficiency and increased cash flow, with net cash provided by operating activities doubling to 121.2 billion yen.

To sustain this momentum, the company has initiated a comprehensive three-year mid-term plan aimed at maximizing long-term IP value. Central to this strategy is a 40 billion yen investment dedicated to the development of an IP metaverse, alongside a structural reorganization that consolidates business units into three primary segments: Entertainment, IP Production, and Amusement. These changes, which include the formation of Bandai Namco Filmworks Inc. and Bandai Namco Music Live Inc., are designed to better align the group’s internal operations with its overarching strategic goals.

Looking toward the fiscal year ending March 31, 2025, the organization has established ambitious financial targets, including 1.1 trillion yen in net sales and a return on equity of at least 12 percent. Supported by a shareholder return policy that targets a total return ratio of 50 percent or more, the company is positioning itself to leverage its intellectual property portfolio through enhanced digital integration and corporate restructuring. These efforts, coupled with a refreshed corporate purpose and leadership adjustments, underscore a commitment to long-term growth and global market competitiveness.