Integrated Report 2019

Integrated Report 2019 – Bandai Namco Group – Executive Summary

| Topic | Key Highlights (FY 2019) | Strategic Implications | |-------|--------------------------|------------------------| | Financial Performance | • Net sales: ¥732.3 bn (+8 % YoY) <br>• Operating profit: ¥84.0 bn (+12 % YoY) <br>• Free‑cash flow: ¥54.9 bn <br>• Shareholders‑equity ratio: 70 % <br>• Interest‑bearing debt: virtually nil | Strong cash generation and a solid balance‑sheet give the Group flexibility to invest in IP‑driven growth, overseas expansion, and ESG initiatives. | | Core Business Structure | • Re‑organized from a three‑SBU model to five specialized Units: <br>  – Toys & Hobby <br>  – Network Entertainment <br>  – Real Entertainment <br>  – Visual & Music Production <br>  – IP Creation <br>• Mid‑term initiatives of Real Entertainment, Visual‑Music Production, and IP‑Creation all outperformed forecasts. | The unit‑based architecture aligns resources around the “IP axis” and the 2010 Restart Plan, enabling faster cross‑unit collaboration and clearer performance accountability. | | Flagship IP Portfolio | • THE IDOLM@STER, IDOLiSH 7, Ultraman, Mobile Suit Gundam, Kamen Rider, Super Sentai, Anpanman, PAC‑MAN, Tamagotchi, PRETTY CURE <br>• Gundam & Dragon Ball singled out for global‑scale pushes. | A diversified IP mix reduces reliance on any single franchise and fuels growth across toys, games, visual media, live experiences, and licensing. | | IP‑Driven Global Expansion | Gundam <br>• “Chief Gundam Officer” & cross‑unit Gundam Project created. <br>• Simultaneous roll‑outs of visual products, plastic models (> 500 M cumulative shipments), and large‑scale experiences (e.g., 18‑m moving Gundam slated for 2020). <br>• Target markets: China, North America (localised content). <br><br>Dragon Ball <br>• YouTube masthead campaign → 17 M+ views in one day. <br>• Net‑sales surge +932 % to ¥129 bn. <br>• 2018 North‑America tour → 300 k+ visitors, strong limited‑edition sales. | Demonstrates the power of a coordinated, “ALL BANDAI NAMCO” approach: IP‑centric content, merchandising, and experiential activations reinforce each other, driving exponential revenue lift. | | ESG & Governance Enhancements | • Board independence: 1/3 of 12 members are outside directors; Personnel Committee chaired by an outside director (4/5 members external). <br>• Outside director Koichi Kawana appointed (June