I am committed to providing effective oversight and
pertinent advice to help evolve Bandai Namco into a
company that can create the future.
Bandai Namco Holdings Inc.
Revision of the Board of Directors' Effectiveness Evaluation Process
The Board of Directors’ evaluations over the past several fiscal years have consistently yielded high scores, which I believe accurately reflect the strong business performance achieved during that period. Corporate performance and Board effectiveness scores are generally perceived to be correlated. Such a correlation makes sense as the effectiveness scores are an assessment of the Board of Directors, which steers management in its pursuit of performance. However, we must not limit ourselves to viewing Board effectiveness from the perspective of performance. Identifying the root causes of management risks, promoting, and sounding the alert at the first sign of initiatives or actions that do not align with the Company's Purpose are, after all, also important functions of the Board of Directors.
With this in mind, we have continued to revise the criteria examined in evaluations of Board effectiveness in step with changes in corporate governance-related trends since these evaluations commenced. In FY2027.3, we will enhance our Board effectiveness evaluation process by introducing one-on-one meetings with each director in addition to the existing questionnaire-based assessment. This initiative is intended to generate more practical and actionable proposals for improvement.
The effectiveness evaluations are a self-evaluation process each Board member undertakes, and we all understand how difficult it can be to evaluate yourself. This is why we intend to continue evolving the evaluation process to prevent it from becoming stale, avoid undue influence from performance trends, and constantly inject new perspectives to make the evaluations themselves more effective.
Appointment of New Outside Directors
The Ordinary General Meeting of Shareholders held in June 2026 saw three of the Company's five outside directors pass the baton to new members. This change resulted in a particularly large shift in the membership of the Independent Directors Committee and the Personnel Committee.
Personally, I began my sixth year as an outside director at Bandai Namco in June 2026. Over the years, I have endeavored to maintain an independent perspective as I take part in various meetings. Nevertheless, I cannot deny that I have become more attuned to the internal logic of the Company. I am encouraged by the fact that a majority of our outside directors are newly appointed. Going forward, I hope to serve as a bridge between the executive team and these directors, ensuring that their fresh and independent perspectives are effectively leveraged to enhance management and governance. I anticipate that the appointment of new outside directors will help drive further improvements in the Company’s corporate value. Recognizing the importance of my role as a bridge, I will work tirelessly to support Bandai Namco’s evolution into a company that creates the future and look forward to being part of that journey.
Long-Term Directives and the IP Axis Strategy
An ongoing series of discussions led by the Independent Directors Committee has been taking place with regard to the Group’s short-term measures and long-term outlook. Nowadays, many Japanese companies have been taking an approach of starting from their long-term outlook and using backcasting to decide their short-term measures. At Bandai Namco, we are taking the approach of setting our Mid-term strategies based on our long-term vision. However, as an entertainment company, our role is not only to respond to the future but also to help create it. To do so, we must remain proactive and take action based on a deep understanding of current challenges, market changes, and the evolving desires of our fans.
To make our discussions in this area more concrete, we identified our approach to implementing the IP axis strategy as a key discussion topic for FY2027.3. We plan to explore this topic in greater depth at forums such as off-site Vision Meetings. Through these discussions, we aim to build a shared understanding of the IP axis strategy among all directors while considering how the strategy should evolve in response to changes in the business environment and society. We believe these discussions will help shape our long-term strategic direction and outlook.
Role and Key Issues of the Personnel Committee
The Personnel Committee meets as needed to discuss executive appointments and compensation and other matters. Executive compensation systems continue to be refined with each coming year, and I believe they are coming in line with our ideals. In FY2026.3, for example, we introduced earnings per share among the evaluation indicators used for determining compensation to better encourage executives to share the interests of shareholders. In this manner, we have continued to diligently evolve our executive compensation systems. Looking ahead, I believe that the refinement of sustainability evaluations might be among the topics brought up in discussions of how to further improve these systems. We have continued to review and fine-tune sustainability evaluation criteria since they were first introduced. However, given the importance of sustainability to management, I believe there is room for us to further strengthen our approach in this area from the perspective of creating business opportunities while managing risks. I therefore hope the newly appointed outside directors will evaluate the appropriateness of our criteria and provide frank, independent perspectives.
The Personnel Committee is not directly involved in the selection of executive candidates. While some governance discussions have advocated giving outside directors a more direct role in executive appointments, our approach is different. At Bandai Namco, discussions on executive candidate development programs are conducted by the Personnel Committee independently of individual personnel decisions. The Committee is therefore not currently involved in discussions regarding the executive candidate selection process itself. While the Personnel Committee has opportunities to engage with selected candidates, its limited role in the final selection process may leave some room for concern about increasing homogeneity among management leaders. Taking these points into account, I would also like to deepen discussions, from a future-oriented perspective, on the role of the Personnel Committee.
Management Engagement with Fans and Investors
In an era of ingrowing uncertainty, businesses face an ever-expanding array of risks. Excluding geopolitical risks, the greatest risk to the Group is the disparity between the direction chosen by management and the expectations of fans. Bandai Namco aspires to create the trends of tomorrow. To do so, we must avoid becoming constrained by internal logic or overly focused on short-term business performance. It is therefore essential that the Company remain humble in its engagement with fans. I intend to provide oversight and guidance to support this objective.
In terms of our relationship with the capital markets, I take seriously the fact that strong business performance does not always translate into a corresponding increase in our share price. It is my belief that, in corporate management, outside directors and investors are like different wheels on the same car. I am committed to engaging in constructive dialogue with investors to foster mutual understanding, ensuring that the Group’s strengths and potential are properly recognized while also incorporating investor perspectives into management. Ultimately, I believe the ideal outcome is a relationship in which both parties remain humble and receptive to reconsidering their own viewpoints.
Bandai Namco Group 1 YEAR OF RESULTS
Integrated Report 2026
Integrated Report 2026
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IP LINEUPFact Book 2026
What Our Purpose Means to Me