Bandai Namco Holdings Inc. · TSE:7832
Bandai Namco — Investor Presentation (February 2018)
31 slides from Bandai Namco's investor presentation, Feb 9, 2018
Slide 1: BANDAI NAMCO Group Mid-term Plan
BANDAI NAMCO Group Mid-term Plan April 2018 to March 2021 February 9, 2018
Slide 2: Results in the First Nine Months of the Fiscal Year
Results in the First Nine Months of the Fiscal Year billion yen Vs. previous FY 2017.3 FY 2018.3 year’s results First nine First nine Full-year First nine Full-year Full-year months months forecast months Net Sales 459.1 620.0 483.1 630.0 +24.0 +10.0 Operating Profit 60.1 63.2 53.4 57.0 -6.7 -6.2 Re
Slide 3: Trends by Business
Trends by Business (compared with the same period of the previous fiscal year) Toys and Hobby billion yen ・Steady performance of mainstay IPs in all regions Segment sales -1.3 Japan: KAMEN RIDER, DRAGON BALL Segment profit -2.1 Japan and greater Asia: Gundam, etc. Network Entertainment ・Network cont
Slide 4: Results by Segment
Results by Segment (Vs. previous year’s results) billion yen Vs. previous FY 2017.3 FY 2018.3 year’s results First nine First nine Full-year First nine Full-year Full-year months months forecast months Segment sales 165.6 218.0 164.3 215.0 -1.3 -3.0 Toys and Hobby Segment profit 15.3 13.3 13.2 15.0
Slide 5: Full-year Results (Dividend)
Full-year Results (Dividend) billion yen FY 2018.3 FY 2017.3 YOY Forecast Net Sales 620.0 630.0 +10.0 Operating profit 63.2 57.0 -6.2 Recurring Profit 63.2 58.0 -5.2 Profit Attributable to Owners of Parent 44.1 41.5 -2.6 Dividend (Forecast) Apply the shareholder returns policy of the new Mid-term Pl
Slide 6: The BANDAI NAMCO Group Thus Far
The BANDAI NAMCO Group Thus Far billion yen Net Sales Operating profit 700 7000 70 6000 600 60 5000 500 50 4000 400 40 3000 300 30 2000 200 20 1000 10 100 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 forecast Current mid- Restart Plan term plan
Slide 7: Review of Current Mid-term Plan
Review of Current Mid-term Plan Corporate Dreams, Fun and Inspiration Philosophy To become the Leading Innovator in Global Entertainment Mid-term Vision Business Strategies Region Strategies Accelerate evolution in the Through the IP axis strategy, IP axis strategy gain momentum in global markets Cu
Slide 8: Results under Current Mid-term Plan
Results under Current Mid-term Plan Product and service innovation for IP creation and cultivation established IPs Expansion of target customer base Growth of IP outlets Overseas video games Successful overseas events Live events Japan and overseas network contents
Slide 9: Challenges under Current Mid-term Plan
Challenges under Current Mid-term Plan New IP creation Drive new IP creation ◎ Establish structure for IP creation ◎ Invest aggressively in IP creation ◎ Expand collaborations with external partners More IP could have been created. Overseas expansion Change methods for adopting Performance in Europe
Slide 10: Opportunities under the New Mid-term Plan
Opportunities under the New Mid-term Plan Expansion of Japanese IP in New technologies + IP axis strategy worldwide markets Overseas network contents Overseas live events Products for mature fan base Chinese market
Slide 11: What We Aim to Be in 10 Years
What We Aim to Be in 10 Years Leading entertainment company - A company that earns the trust of children and fans around the world - A group of highly individual companies and employees that create products and services respected by fans for their quality and excitement
Slide 12: Direction of the New Mid-term Plan
Direction of the New Mid-term Plan Initiatives for becoming what we aim to be in 10 years Leading entertainment company Initiatives for becoming what we aim to be in 10 years CHANGE to an IP creation company CHANGE to new business models CHANGE to an ALL BANDAI NAMCO system CHANGE to a corporate gro
Slide 13: Dreams, Fun and Inspiration
Corporate Philosophy MISSION STATEMENT Dreams, Fun and Inspiration VISION The Leading Innovator in Global Entertainment
Slide 14: New Mid-term Vision
New Mid-term Vision CHANGE tor tre NEXT
Slide 15: Numerical Targets
Numerical Targets FY2018.3 forecasts FY2021.3 targets Net Sales ¥630.0 billion ¥750.0 billion Operating Profit ¥57.0 billion ¥75.0 billion Operating 9.0% 10.0% profit margin or more ROE 11.4% 10.0% or more
Slide 16: New Organizational Framework
New Organizational Framework Starting from April 2018 Toys and Hobby Unit Five-unit structure Core company：BANDAI CO., LTD. Network Entertainment Unit Core company ：BANDAI NAMCO Entertainment Inc. Real Entertainment Unit Core company ： BANDAI NAMCO Amusement Inc. (Name changed from NAMCO LIMITED) Vi
Slide 17: Outline of the New Mid-term Plan
Outline of the New Mid-term Plan Corporate Dreams, Fun and Inspiration Philosophy The Leading Innovator in Global Entertainment Mid-term Vision IP axis Accelerate evolution in IP axis strategy strategy Boost capability to create IP (structural changes) Invest aggressively in IP creation Business Emp
Slide 18: Correlation Diagram for Key Strategies and Units
Correlation Diagram for Key Strategies and Units Toys Visual and Network Real IP and Music Entertain- Entertain- Creation Hobby Production ment Unit ment Unit Unit Unit Unit IP axis Boost capability to create IP (structural changes) ◎ ◎ strategy Invest aggressively in IP creation ◎ ◎ Establish and e
Slide 19: Correlation diagram for each strategy
Correlation diagram for each strategy Business and regional coordination IP axis strategy Business strategy Region strategy Business Regional Empower push into coordination coordination Gain momentum Accelerate evolution in IP new entertainment with ALL axis strategy Establish and enhance business B
Slide 20: Accelerate Evolution in IP Axis Strategy
IP axis strategy Accelerate Evolution in IP Axis Strategy Boost capability to create IP(structural changes) Drive IP creation Collaborate in an open manner to New establishment create IP IP Creation Unit Create and expand optimal IP combinations that External connect with each business and service p
Slide 21: Accelerate Evolution in IP Axis Strategy: Invest in IP creation
IP axis strategy Accelerate Evolution in IP Axis Strategy Invest aggressively in IP creation ● Investment in the creation of original IP FY2019.3 to FY2021.3 Invest in IP creation ・IP Creation Unit ・Original IP development 6.0 billion * Does not include investment (financing) to strengthen partnersh
Slide 22: Empower Push into New Entertainment
Business strategy Empower Push into New Entertainment Establish and enhance business infrastructure Establishment of the new Real Entertainment Unit Creation of new digital services Accelerate the creation of new digital services through Through the integration with the amusement business, the integ
Slide 23: Empower Push into New Entertainment
Business strategy Empower Push into New Entertainment Expand and strengthen business fields：①Strengthen businesses aimed at mature fan base Establishment of BANDAI SPIRTS CO., LTD. Collectors figures Plastic models Lottery business Online Marketing New businesses BANDAI IP location BANDAI SPIRITS BA
Slide 24: Empower Push into New Entertainment
Business strategy Empower Push into New Entertainment Expand and strengthen business fields：② Strengthen the live entertainment business Establishment of Strengthen live events overseas BANDAI NAMCO Arts Inc. Strengthening of live events aimed at overseas fans of Japanese IP and anime songs Creation
Slide 25: Gain Momentum with ALL BANDAI NAMCO
Region strategy Gain Momentum with ALL BANDAI NAMCO Initiatives for a regional axis structure Full-scale expansion in Establish system the Chinese market Establish a structure to promote the Promote business expansion in the Chinese ALL BANDAI NAMCO concept in Market and undertake efforts under each
Slide 26: Make Personnel the Core of the Group
Personnel strategy Make Personnel the Core of the Group Becoming a corporate group where employees with various personalities can work in a lively and energetic manner A group centered on human resource management, particularly on entertainment and imagination IP creation and support for Cultivation
Slide 27: Capital Policy (Shareholder Returns Policy)
Capital Policy (Shareholder Returns Policy) Revise shareholder returns policy to place more emphasis on capital costs and ROE 【Current policy】 Based on stable annual per share dividend payments of ¥24, aiming for a consolidated dividend payout ratio of 30% 【Revised policy】 Based on stable annual div
Slide 28: Aim for 10 Years in the Future
Aim for 10 Years in the Future Take on new challenges with a sense of urgency and a high level of curiosity
Slide 29: Note on Projections
Note on Projections This document contains forward-looking statements and information related to the BANDAI NAMCO Group that are based on our knowledge as well as various assumptions made on the basis of information currently available. The words “forecast,” “plan,” “target,” “estimation,” “projecti
Slide 30: BANDAI NAMCO Group Mid-term Plan
BANDAI NAMCO Group Mid-term Plan April 2018 to March 2021
Slide 31: Reference: Numerical Targets (by unit)
Reference: Numerical Targets (by unit) FY2021.3 billion yen Full-year targets for FY2021.3 FY2018.3 Segment sales 275.0 Toys and Hobby Forecast Segment profit 20.0 Segment sales 215.0 Segment sales 310.0 Toys and Hobby Network Segment profit 15.0 Entertainment Segment profit 41.0 Network Segment sal
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