Being a Group That is Full of Personality and Fixated on Quality and Appeal to Provide Dreams, Fun and Inspiration around the World
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NEWSLETTER December 2017
BANDAI NAMCO Mirai-Kenkyusho
BANDAI NAMCO Holdings Inc. 5-37-8 Shiba, Minato-ku, Tokyo 108-0014
Management
Interview with the President
Being a Group That is Full of Personality and
Fixated on Quality and Appeal to Provide
Dreams, Fun and Inspiration around the World
The BANDAI NAMCO Group announced consolidated operating results for
the first half (April to September 2017) of FY2018.3. Net sales reached record
highs for H1 performance, with operating profit also surpassing projections.
BANDAI NAMCO Holdings’ President Mitsuaki Taguchi had the following to
say about performance outlooks and activities of each SBU moving forward,
as well as on progress regarding the next Mid-term Plan.
How would you summarize the a new network service-related platform and in
first half? opening new facilities, including VR facilities,
Taguchi: As domestic and overseas network to increase. We will also conduct careful over-
content continued to perform strongly, core sight of release schedules for home video game
Mitsuaki Taguchi
IP* products and services for the Toys and and visual packaged product titles to ensure President & Representative Director,
Hobby, Network Entertainment, and Visual they correspond to environmental changes. BANDAI NAMCO Holdings Inc.
and Music Production SBUs gained in popu- We plan to take another look at full-year
larity. As such, net sales reached record highs projections when we begin to see results from What progress has been made
for H1 at ¥308.8 billion and operating profit, the year-end sales season and indications of regarding the next Mid-term Plan?
at ¥34.9 billion, outperformed projections made their effects. While bearing in mind the plan Taguchi: We are making steady progress in
at the time first quarter performance results for the second half devised in August, each developing the next plan. Our mission is to
were announced. business will work diligently on present oper- provide dreams, fun and inspiration to people
Interim dividends were ¥12 per share. ations. At the same time, I would like to start around the world. The desire to deliver products
Starting from our stable annual per share preparations in anticipation of the next Mid-term and services that meet the expectations of our
dividend payment amount of ¥24, we will Plan, aimed at achieving sustainable growth. fans worldwide remains unchanged moving
further examine year-end dividends based on forward. From here on out, as in the past, we
our fundamental policy for shareholder returns, Can you talk about establishing are not only aiming for business expansion,
which aims for a consolidated dividend payout companies in China? but are completely fixated on quality and appeal
ratio of 30%. Taguchi: The next Mid-term Plan calls for in our products and services and strive to be a
increased business development in China. As Group full of personality. To that end, we will
Could you describe the full-year such, we will be establishing the holding com- strengthen our IP axis strategy as well as
outlook for FY2018.3? pany—BANDAI NAMCO Holdings CHINA accelerate global development through collab-
Taguchi: We have not revised the full-year CO., LTD.—in Shanghai in December. This orative efforts between BANDAI NAMCO
outlook. Because the year-end sales season has business will be the head of Group holding Group companies. What I would like to promote
not yet begun and market conditions are chang- companies on the Chinese mainland, while our is additional creation of new IP and further
ing more dramatically, I believe we must keep holding company in Hong Kong will head the strengthening of our IP axis strategy, in par-
a cautious eye on the financial outlook. More- companies in the rest of Asia. In addition, we ticular. I want this Group to be one that drives
over, in comparison to when financial results have established holding companies in the IP creation and is capable of continuing to
for the first quarter were announced in August, Americas as well as the UK and other European produce and nurture IP.
we have also been seeing changes on the countries. These holding companies will aim to
business side. We expect prior investment costs both strengthen governance and bolster busi-
associated with intensifying advertising for ness support and cooperation in those regions.
network contents and those incurred in launching
*IP: Intellectual property, such as characters
December 2017 1
Management
Interview with the President
including DRAGON BALL Z DOKKAN BATTLE
Performance of network contents continues to and ONE PIECE Treasure Cruise, which are
Rather than simply “responding” to the
be strong being rolled out worldwide; NARUTO, which changes of the times, we aim to “adapt” and
Plans for the repeated introduction of is popular in China; and IDOLM@STER, which take on new challenges
is in high demand in Japan, are gaining a stable
high-profile home video game titles base of popularity. In addition to maintaining
the popularity of our current titles through How is the amusement business popular. In addition, an animated TV program
How is the Toys and Hobby SBU In addition, as a challenge with a focus on detailed measures and meticulous management performing? based on our original IP, IDOLiSH7, which
performing? the future, we exhibited our communication that make use of data analysis, we are also Taguchi: The large-scale VR facility we opened generated from BANDAI NAMCO Online
Taguchi: THE GUNDAM BASE TOKYO, a robot, Guncierge Haro, which represents a focusing on cultivating new titles. We are also in Shinjuku, Tokyo in July—VR ZONE Inc.’s game app, will begin in January. The
complex with the world’s largest selection of Groupwide project that utilizes AI, at a trade- planning to introduce new titles for NARUTO SHINJUKU—is performing well, which rein- boy band that appears in this title—TRIGGER—
Gundam plastic models, was opened in Diver show. This project garnered a significant amount x BORUTO: NINJA BORUTAGE and SWORD forces my conviction that VR and IP are highly is already gaining attention, with its debut
City Tokyo Plaza in Odaiba, Japan, in August of attention at the show. I would like to see ART ONLINE, which are marketed worldwide, compatible. We are gradually introducing new album, REGALITY, reaching number one
and has since drawn many visitors. A life-sized the Toys and Hobby SBU experiment with and are working on contents such as Project activities to ensure that this flagship store is a on the Oricon weekly albums chart for music
Unicorn Gundam statue was unveiled in Sep- combining such cutting-edge technology with LayereD, user-generated content which began place where people can enjoy themselves no CDs. Moving forward, we will develop products
tember, also attracting a large amount of atten- IP. as an effort to create new IP from game apps. matter when they choose to visit. While we and more to make this IP more appealing.
tion. The statue and facility each work together Beyond that, BXD Inc., established through a already have small-to-medium portal stores in Moreover, Actas Inc., which produces
to multiply visitors to the other, which has What is the approach to Europe and joint investment by BANDAI NAMCO cities such as Kobe, Japan and London, UK, GIRLS und PANZER among other titles, joined
stimulated more interest in Gundam plastic the Americas markets? Entertainment Inc. and Drecom Co., Ltd., will we plan to open a total of 20 stores in Japan BANDAI NAMCO Group. This will enable
models. Gundam plastic models have also been Taguchi: In Europe and the Americas, in addition begin distributing online games and managing and overseas. us to strengthen our IP axis strategy. In this
performing well in the rest of Asia, with a to Power Rangers products and services, we new platforms next spring. BXD’s work will In addition, NAMCO LIMITED opened way, the Group has grown by one more ani-
large-scale Gundam event being held from launched a card game for DRAGON BALL, an combine the digital and the real in a charac- Asobi Park PLUS in Hong Kong as its first mation studio with personality. Together, we
October to November in Taiwan. Moving IP which app for smartphones is popular, in teristically BANDAI NAMCO way, and we international development project. We have will focus on creating titles that satisfy our
forward, we will ramp up events, video distri- North America in July. Card game sales are look forward to what they will accomplish. garnered praise for development projects uti- fans and making high quality IP and high
bution, and store promotions to invigorate showing a good start in the region. The second lizing our IP as well as our fusion of VR and quality products.
interest in Gundam plastic models across Asia. round of launches will begin in November, What about home video games? AR (augmented reality) overseas, which led
In new IP, the initial response to the trans- with large-scale events planned in locations Taguchi: At the Tokyo Game Show 2017, held to our opening this store. Moving forward, we How is the outlook moving forward?
formation belt from Kamen Rider Build, which all over the United States next year. in September, we displayed DRAGON BALL will actively continue to open stores in prom- Taguchi: Digitalization is continuing in all
began broadcasting in September, has been the Demand for products for adult customers, FighterZ, SWORD ART ONLINE: FATAL ising locations both in and outside Japan. fields, leaving the market experiencing signif-
highest in Heisei Kamen Rider history and is such as collectable action figures is increasing BULLET, CODE VEIN, and other titles set to icant changes. Because “responding” to such
performing well. In the second half, we will not just in Japan, but worldwide. Along with be released in 2018. All games were well- How is the Visual and Music Production changes could cause us to fall behind, we must
be successively introducing IP targeted at boys, promoting our brands with events, we will received by fans. We are already selling titles SBU performing? stay one step ahead and “adapt,” much the
such as the Black Clover TV show, which be expanding our IP lineup, including Marvel for the popular Nintendo Switch and are moving Taguchi: The second season of Love Live! same way as organisms adapt to changes in
began broadcasts in October, and Mushinin, IP, and continue working for higher visibility forward with development of original titles Sunshine!! began broadcasting in October, their environment. Changes in the market give
an anime that is broadcasted on the BANDAI worldwide. specifically for the Switch. In addition, we are with the Mobile Suit Gundam: THE ORIGIN: us the opportunity to change our approach and
NAMCO YouTube channel, as well as the new actively looking into e-Sports, a promising Battle of Loum packaged product going on sale create products and services that are even more
program Pikachin-Kit, which will begin broad- How is the Network Entertainment new market for the sport of competing at video in November. GIRLS und PANZER: The Final fun and exciting. It is exactly because this is
casting in January. In this way, we are working SBU performing? games, in order to take serious action in the Chapter will open in December. In the second an age of accelerating market shifts that our
to refine our IP lineup. Taguchi: In network contents, our core titles, medium term. half, we will develop these new installments employees resolve to take on new challenges
of our major IP titles and accelerate work on and gain new experiences rather than remain
visual and music, live event, and other projects. restrained by the status quo. This will drive
We are also releasing a variety of other note- progress for the BANDAI NAMCO Goup. We
worthy products. Not only has the packaged strive to be a Group loved by fans worldwide
product of the widely lauded animated feature that always challenges itself in new ways. Our
film In This Corner of the World become a hit, stockholders can count on that.
the theatrical film Outrage Coda has also been
DRAGON BALL FighterZ, scheduled for release on
February 1, 2018
GUNDAM Docks at Taiwan event Love Live! Sunshine!! Aqours 2nd LoveLive!
HAPPY PARTY TRAIN TOUR
©バードスタジオ／集英社・フジテレビ・東映アニメーション
©創通・サンライズ ©BANDAI NAMCO Entertainment Inc. ©2017 プロジェクトラブライブ！サンシャイン ! !
2 BANDAI NAMCO NEWS December 2017 3
Business Angle
Introduction of Group Officers Prospects for the Visual and Music Production SBU
What is the status of Actas Inc., support from fans. In theatrical releases, Mobile
Offering visual and music entertainment which became a subsidiary
such activities, we hope to garner excitement
for GIRLS und PANZER and its fifth anniversary. Suit Gundam Thunderbolt: Bandit Flower and
through a variety of outlets in September? In addition, due to the positive reception of Mobile Suit Gundam Twilight Axis: Red Trace
Kawashiro: Actas Inc. produces the popular IP Princess Principal, which aired this summer were jointly launched on November 18th. The
The Visual and Music Production SBU is working to diversify entertainment, GIRLS und PANZER, among other animation and in whose production Actas was participating, fourth chapter of Space Battleship Yamato
expanding business fields beyond package-centric business models and
titles. Close collaboration with animation I would like to see further expansion of this 2202: Warriors of Love will be released in
tackling new ventures, such as the live event business. Kazumi Kawashiro,
production is essential in creating and cultivating program as new IP and development of relevant January 2018. Also in January, the animated
President and Representative Director of BANDAI VISUAL CO., LTD., speaks on
IP, including maintaining schedules for the promotional measures. TV program based on BANDAI NAMCO
the status of each business and IP creation efforts, as well as the inclination of
development of products and other items as In products the Group was involved in, the Online Inc.’s IDOLiSH7 game app for smart-
the next Mid-term Plan.
well as reviewing and reworking contents in second stage of the animated Love Live! Sun- phones will begin. We are releasing a lot of
response to trends among fans. The addition shine!! TV program, which began broadcasting key titles to look forward to.
What is the current status and future To successfully offer visual and music of Actas to the Group has made further inte- in October, is already receiving significant
outlook for the packaged product entertainment to our customers, in both video gration of animation production and related
market? packages and live event experiences, it is businesses in IP development possible. The
Kawashiro: Net sales for the market as a whole important to remain flexible while not vacillating significance of this is considerable. While Actas
have been declining for over ten years. On the more than necessary in response to media and is a small company, they are a studio committed
other hand, we have had a number of hit prod- market changes. to creating high quality products. In the pro-
Our biggest challenge is IP creation
ucts that have earned the support of our cus- duction of animation, there are times when Cultivating IP to take advantage of our
tomers. For instance, the animated feature film What is being done for IP fans overseas? quality must be set aside in the interest of abundant outlets Kazumi Kawashiro
President and Representative Director,
In This Corner of the World garnered high Kawashiro: We are expanding our live events efficiency, but studios that remain highly moti-
BANDAI VISUAL CO., LTD.
praise from all sides, winning the 40th annual in various countries by actively participating vated to create quality products under those
Japan Academy Prize for Animation of the in large events, such as trade fairs and Anime circumstances are priceless. Moving forward, What are the strengths of the Group What is your motto for the human rofile of President and Representative
P
I would like to see production that makes free Director Kazumi Kawashiro
Year and becoming a hit product for our com- Expo in the United States. We are also working as a whole in terms of IP creation? side of things?
pany, selling more than 100,000 movie packages. on improving live viewing mechanisms so fans use of the BANDAI NAMCO Group’s IP Kawashiro: We have many types of IP, including Kawashiro: I believe that when it comes to
April 1982 Starts at Canyon Records Inc.
There will always be a need for high quality that cannot attend live events can enjoy them outlets while maintaining quality. game IP, animated movie and TV program IP, human resources, “enjoyment predicts aptitude.” (currently Pony Canyon Inc.)
July 1989 Starts at BANDAI CO., LTD.
products. By further increasing the value added in real time. Such mechanisms have proven and a variety of others. As such, compatibility Liking what you do is important in everything April 1994 Starts at BANDAI VISUAL CO., LTD.
by bundling extras into movie packages, we incredibly popular, with tickets for Love Live! What are the key titles for the with outlets is highly important for both creation including production, utilization, management May 1999 Director at BANDAI VISUAL CO., LTD.
May 2003 President and Representative Director at
strive to offer an enjoyable experience not events selling out quickly in Asia after their second half? and utilization. Entertainment at the BANDAI and customer support. I want our employees BANDAI VISUAL CO., LTD.
available through other means. introduction. In Europe, Lantis Co., Ltd. joined Kawashiro: In Actas animation products, the NAMCO Group is a broad business, and its to take on the challenges that interest them. It June 2007 Director at BANDAI NAMCO Holdings Inc.
April 2010 Executive Vice President at BANDAI VISUAL CO., LTD.
with AMUSE INC. to establish a joint venture first stage of six of GIRLS und PANZER: The abundance of outlets is one of its strengths. By has always been my intention to ensure that April 2012 President and Representative Director at
How are the live event and music company that distributes contents, particularly Final Chapter will open in December. In con- that I mean not only the number of outlets for this is a company where employees like to BANDAI VISUAL CO., LTD. (current position)
April 2015 Executive Officer at BANDAI NAMCO Holdings Inc.
businesses performing as the focus animation and songs from animated movies junction with this release, we are planning to IP utilization, but that we possess ground fertile work. A top-down approach to making important June 2015 Director in charge of Visual and Music Production
SBU at BANDAI NAMCO Holdings Inc.
of initiatives to secure new outlets? and TV programs, in April 2016. I would like hold a large-scale exhibition of original GIRLS for producing IP befitting of those outlets. Each decisions is all well and good as a governance (current position)
Kawashiro: Both businesses are performing to work toward business expansion in Europe, und PANZER illustrations at Sunshine City in business has a unique soil in which it cultivates mechanism, but in terms of IP creation and
well. In line with the vision of the current where interest in Japanese anime is quite high. Ikebukuro, Japan, in late December. Through Group IP. The Visual and Music Production planning, I strongly believe that such an
Mid-term Plan, the Visual and Music Production SBU cultivates its own seeds, creating IP that approach tends to lead to complacency rather
SBU strives to be the “No. 1 Group in Anima- can be utilized by other SBUs laterally. These than a search for the interesting and challenges
tion, Visual, and Music Products.” In order to IP are then cultivated by each SBU, making to the status quo. In my mind, people who like
grow all our businesses, we are actively working the entire Group stronger. what they do build productive environments
to expand our business fields, with visual and on their own and I would like to see systems
music products at the center. Results have been What direction will the next suitable to that goal included in the next Mid-
promising. In particular, while creating con- Mid-term Plan take? term Plan. For that reason, I am advocating
ventional monetization mechanisms for the Kawashiro: Our biggest challenge is IP creation. bold changes, such as widespread decentral-
overseas live event business has not been easy, IP creation and utilization work hand in hand. ization of authority. I want to create an envi-
the live Anisong World Matsuri event for songs Without IP, the business as a whole cannot ronment where employees take responsibility
from animated movies and TV programs held expand. The influence gained in creating a for the projects they choose and where people
in Shanghai and two cities in the United States powerful new IP that generates buzz throughout are interested in and want to do what they are
had a positive impact on earnings. This con- society will likely be a significant theme in the working on.
tribution to earnings has been a significant step next Mid-term Plan.
forward in proving the great potential of the In This Corner of the World Love Live! Sunshine!! Princess Principal
©こうの史代・双葉社 / ©2017 プロジェクトラブライブ！サンシャイン! ! ©Princess Principal Project
overseas live event business. 「この世界の片隅に」製作委員会
4 BANDAI NAMCO NEWS December 2017 5You can also read
