Namco Bandai Holdings Annual Report 2011

Bandai Namco’s 2011 financial results demonstrate a decisive turnaround after the sizable loss recorded in the previous year. Net sales rose 4% to ¥394 billion, while operating income surged 767% to ¥16.3 billion and a modest profit of ¥1.8 billion was posted after a ¥29.9 billion deficit. The recovery was anchored by a revitalised Toys & Hobby segment, whose sales increased 6% to ¥158 billion, and a newly profitable Content segment, which posted a 7.4% sales increase to ¥179.9 billion and swung to ¥3.1 billion in segment income. Although the Amusement-Facility segment saw sales dip 4.6% to ¥62.3 billion, efficiency measures lifted its segment income by more than five-fold to ¥1.8 billion.

Growth drivers included long-standing character franchises such as Mobile Suit Gundam, Kamen Rider and POWER RANGERS, alongside a new adult-collectible line projected to generate ¥10 billion in FY2012. Cross-divisional initiatives, exemplified by the successful Kamen Rider OOO launch, reinforced the domestic market, which still accounts for roughly 90% of revenue, while overseas performance lagged.

The company’s governance framework features nine directors—three independent—and four statutory auditors, supported by committees overseeing internal control, risk-compliance, information security and CSR. Environmental, social and economic responsibilities are pursued through projects like “BANDAI NAMCO Forest,” packaging-reduction efforts, disability employment and cultural support.

Financially, total assets contracted 5.4% to ¥308 billion and the equity ratio slipped to 68.8%, yet cash flow from operations more than doubled to ¥22.6 billion, delivering a current ratio of 245% and an interest-coverage ratio