We classify the four business segments of the Group into Business with Dynamic Growth for which we will make proactive investment and Business with Profit Improvement for which we aim at increasing profitability, by clarifying our missions based on the market attractiveness and our competitive advantage in each area.

Businesses with Dynamic Growth	Making up-front investment proactively, mainly in the U.S. and European markets, to expand our businesses.	Toys and Hobby business Game Contents business
Businesses with Profit Improvement	Taking measures to increase profitability, concentrating on the domestic market, through changing missions and bolstering selection and focus.	Visual and Music Content business Amusement Facility business

Our Toys and Hobby business has a stable market scale both in Japan and overseas and still leave many categories yet to be entered in overseas markets. We will globally expand "character merchandising," a model for the series of processes from content creation and product development to product sales.

Strategy for U.S. region :
Strengthen existing businesses that hold a competitive edge, and expand product categories

• Optimize use of characters originating from Japan
• Strengthen foundation for creation of characters originating from the United States through collaboration with local media
• Horizontally expand into product categories yet to be entered
• Market more products originating from Japan
• Enter new businesses, including M&A in markets we have yet to enter, through which synergy can be expected

Strategy for European region :
Realize dynamic growth in collaboration with the U.S. and expand sales area

• Accelerate marketing of contents originating from the United States in Europe
• Expand sales area

Strategy for Japan : Establish an dominant No. 1 position

• Establish a No. 1 position in all operating categories

Strategy for Asian region : Strengthen collaboration with Japan

• Accelerate marketing of characters originating from Japan in Asia

For our Game Contents business, we will develop business strategy by taking into account market characteristics and the competitive edge of individual businesses. Especially, overseas video game software market is larger than the domestic market and has more growth potential. Thus we will improve worldwide structures for development and sales of video game software.

Strategy for video game software business

Enhancement of worldwide structures for development and sales

• Implement a development structure by coordination between bases in Japan and the United States with overall control in Japan.
• Strengthen product development in specific categories based on marketability and our superiority.
• Expand sales area in Europe

Strengthen measures to maintain the top share among third-party software makers in Japan

• Improve profitability by narrowing down the number of titles based on marketability and our competitive edge

Strategy for arcade machines

• Improve development capability to meet next-generation needs, such as online gaming
• Horizontal expansion in Asian region

Strategy for mobile content

• Expand through synergies resulting from the organizational restructure of the Group

The domestic animation software package market is medium size and has been stable. Due to the advancement of hardware specification, however, the profitability of the software business has reduced. In our Visual and Music Content business, we will focus our efforts on improving profitability as well as on creating high-quality content that will be the source of the Group's businesses. We will also take measures to build next-generation business models aimed at responding to changes in the operating environment.

In our Amusement Facility business, we aim to increase profitability through the focus and selection of businesses, and by streamlining in response to the environment of a shrinking domestic market and small overseas markets.

The Entertainment-Hub function, which adds a series of functions (from content creation and acquisition through development to use of the content) inside the Group and aims to further strengthen the functions through synergies with external partners, is the greatest strength of the BANDAI NAMCO Group. In the Mid-term Business Plan, we will enhance this model, which used to be applied mainly in the domestic market, to evolve into a global model through coordination with strategy for each business.

Measures for creating and acquiring IP

• Enhance the structure of the worldwide studio for our Game Contents business
• Reinforcing the foundation for the creation of characters by strengthening cooperation with our partners including media companies
• Investment in, and acquisition of, large-scale content that can be marketed globally

Measures for IP marketing

• Release content simultaneously worldwide through strengthened coordination with TV, films, and websites in the United States and Europe, in addition to domestic TV and films.

Measures for merchandising

• Increase profitability through the horizontal expansion of content in terms of regions and business categories

Measures for accelerating the implementation of our strategies

• To carry out the creation and acquisition of IP, marketing, and merchandising across the Group, strategies will be implemented as Group strategies, with the leading role played by the "Content Business Strategy Meetings" consisting of members from each business unit.