Namco Bandai Holdings Annual Report 2009

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