Mid-term Plan

In accordance with the Bandai Namco’s Purpose, which is the ultimate definition of the Group, the Bandai Namco Group aims to connect with Fans including IP fans, a wide range of business partners, shareholders, Group employees, and society around the world. We will strive to connect more broadly with current fans and more deeply with new fans. In addition, we will aim to foster multifaceted connections among communities that emerge from both new and existing Fans. In fostering connections with and among various fans, our highest priority will be the quality of the connections. Under the Mid-term Plan from April 2025 to March 2028, we will advance a variety of strategies and initiatives focusing on broad, deep, and multifaceted connections with fans and on the quality of those connections.

Mid to Long-term Vision

Under the Mid-term Plan, we position “Connect with Fans,” which is a commitment we continued to aim for under the previous Mid-term Plan and is based on our Purpose, as our Mid- to Long-Term Vision. As the second chapter and action phase of our pursuit of this vision begins, we will make greater efforts than ever before to establish 360° connections with fans around the world (IP fans, our wide range of business partners, shareholders, Group employees, and society), that are broad, deep, and multifaceted, by boldly taking on new challenges.

Mid-term Plan

We have established three common themes for the next Mid-term Plan with the aim of achieving the sustainable growth of the Bandai Namco Group: “Further expansion of business scale,” “Acquisition of new business pillars,” and “Establishment of structure for generating long-term profits.” Based on the common themes, we formulated the four key themes of “Creative Quality,” “Expansion, “Growth,” and “Strengthen,” as well as eight key initiatives that build on these themes. In this way, we aim to expand the potential of IP and develop businesses that create a chain of smiles with fans around the world.

1. Creative Quality

Content creation, development, and production; new IP creation

• Create new experience-based value unique to Bandai Namco
• Continue to take on the challenge of new IP creation
• Pursue greater efficiency

Positioning Monozukuri as the Starting Point of the Group and Creating Products and Services Unique to Bandai Namco

The starting point of the Bandai Namco Group is Monozukuri (craftsmanship). To deliver experience-based value unique to Bandai Namco to our fans across the globe, we develop games, produce animated series, plan and produce products, and create new services. At the same time, we take a multifaceted approach to new IP creation, including initiatives driven by visual content, products, services, and Groupwide projects. As part of these initiatives, we will strengthen IP co-creation by working more closely with external creators, studios, and IP holders from new perspectives. We will also pursue greater efficiency in terms of content creation, development, and production as we work to realize even-higher-quality Monozukuri.

2. Expansion

Category expansion and area expansion<

• Expand areas in which we roll out existing businesses
• Establish robust local sales networks
• Expand scope of products and services and offer them to fans

Aim to Increase Fans Around the World by Expanding Our Area of Rollouts as Well as Product Categories

As the popularity of Japanese IP continues to grow across the globe, we still have many opportunities to expand our business worldwide. To that end, in the Toys and Hobby Business, we are expanding rollouts of products for the mature fanbase, trading card games, capsule toys, and other products. The Business is also collaborating with the Amusement Business to open official stores and hold workshops and other hands-on events. In these ways, we are working to enhance engagement with our products and services and deepen connections with fans.

Furthermore, in addition to Japanese IP, we are actively pursuing collaborations with local IP and corporations. With regard to expanding our area of operations, we are stepping up the rollout of e-commerce services in each country and region.

In the Digital Business, we have further refined the structure introduced in 2024 to oversee worldwide marketing activities in Japan and the United States, thereby working to accelerate decision-making and information sharing.

In the Visual and Music Business, we established a visual and music works operating company in North America. Through this company, we concluded an agreement with Legendary Entertainment to co-invest in the production of a live-action adaptation of the Mobile Suit Gundam series and have now entered the stage of full-scale production. With a view toward a worldwide release of the film, the new operating company will serve as an investment hub for live-action films while also working to strengthen the overseas licensing, promotions, and events for the Mobile Suit Gundam series. By doing so, we will maximize the value of the Gundam IP.

3. Growth

Brand enhancement (IP, labels, products, services)

• Strengthen licensing business
• Create worldviews together with IP fans, thereby enhancing brand power

Fostering Brands That Are Deeply Loved by Many Fans Over Time by Recognizing the Importance of Continuously Nurturing the IP We Create

IPs serve as the key element of the IP axis strategy, which is our greatest strength as a Group, and we understand the importance of not only creating IPs but also growing them.

Under the current Mid-term Plan, we will strengthen the licensing business for Group IP, such as Tamagotchi from the Toys and Hobby Business, THE IDOLM@STER and PAC-MAN from the Digital Business, and Gundum from the Visual and MusicBusiness. At the same time, we will expand the worldview of our IP in manner that transcends our business domains. For game titles, we will focus on expanding the popularity of titles within our series and continuing to release new titles in the same series, while making effective use of them. By doing so, we will establish a strong presence for such titles and strengthen our brand power.

Also, products in the Toys and Hobby business, such as Gundam model kits, which are the flagship product of the Gundam IP, use various raw materials, including plastics. Amid growing concerns regarding the environmental impact of plastics, we have established the Bandai Namco Group Plastic Environmental Consideration Policy. We have been pursuing such efforts as recycling programs involving fans and the utilization of alternative materials. Moving forward, under the Plastic Environmental Consideration Policy, we will continue to reduce plastic usage to the greatest extent possible while utilizing renewable plastics and alternative materials and promoting recycling. As a member of society, promoting Groupwide environment-friendly initiatives will help us enhance the brand value of IPs and products.

4. Strengthen

Data utilization

• Utilize the Data Universe concept
• Leverage new technologies

New technology utilization Utilizing Accumulated Data to the Greatest Extent Possible to Evolve Our Business Through “Strengthen”

Under the previous Mid-term Plan, we promoted the Data Universe, which connects, integrates, and utilizes Groupwide data, and began to utilize it across numerous businesses. Under the current Mid-term Plan, we will begin the genuine utilization of accumulated data and further deepen our application of it. By doing so, we will formulate optimized marketing plans and enhance the accuracy of our product planning and demand forecasting, thus refining our operations in each business.
In addition, primarily in the fields of game development and visual content production, we will actively promote the research and application of new technologies through discussions and collaborations between external partners and our internal studios and research and development departments.. Through such efforts, we will realize our goals for the theme “Strengthen.”

5. Strengthening of Alliances

• Strengthen cooperation with external partners
• Promote efforts by CW360

Establishment of CW360 With the Aim of Strengthening Alliances With Partner Companies

In each business, we will continue to promote collaborations and alliances with various business partners, as we have done in the past. As a new initiative, we have established the CW360 (Connect with 360) Division at Bandai Namco Holdings Inc., embodying our desire to establish 360° connections with fans, based on our Mid - to Long-term Vision of “Connect with Fans.” To date, there have been areas we wished to pursue but could not due to time, budget, and other restrictions. Through CW360, we aim to approach these areas from a Groupwide perspective, embracing challenges without fear of failure and fostering connections with external partners through projects, collaborations, and alliances. These types of efforts to support business growth will lead to the further growth of the Group over the long term.

6. Utilization of Diverse Human Resources

• Secure and develop human resources based on the characteristics of each business
• Develop talent who can play an active role across the Group
• Pursue work-friendly environments that cater to the characteristics of each business (engagement)
• Secure and develop corporate talent who can play an active role across the Group

Development of Human Resources Through Efforts to Strengthen Alliances, Including via Equity Investment

Initiatives led by CW360 to strengthen alliances with external partners will also provide an excellent opportunity for human resource development.

Opportunities created by CW360, such as the promotion of projects and alliances with external partners and the establishment of joint-venture companies, will help us to cultivate the talent of the next generation.

In addition, we will promote a broad range of initiatives to ensure that our diverse group of employees can work in a lively manner and with peace of mind. These include developing global talent to support the Group’s business growth, reinforcing our corporate personnel and divisions, and establishing employee-friendly environments and systems. By doing so, we will lay a solid foundation for our business.

Mid-term Plan Diagram

The two central circles in the Mid-term Plan diagram below comprise the four key themes of “Creative Quality,” “Expansion,” “Growth,” and “Strengthen,” as well as eight key initiatives that build on these themes. These two circles embody various complementary dynamics, including “digital and physical,” “offense and defense,” and “centrifugal and centripetal forces.”

Guided by our Purpose, “Fun for All into the Future,” and our Mid to Long-term Vision, “Connect with Fans,” we will expand the potential of IP and strengthen the various multifaceted omnidirectional connections we have with our fans around the world (IP fans, wide range of business partners, shareholders, Group employees, and society.) By doing so, we will achieve the further Growth of the Bandai Namco Group.

Capital Policy

Under the current Mid-term Plan, we will enhance corporate value by maximizing IP potential with the aim of achieving sustainable growth. We will also focus on increasing ROE with an awareness of EPS and equity spread in order to generate long-term profits.
At the same , we will strive to engage in communication with the stock market. At the 2024 fiscal year, we recognize that capital cost is approximately 8%, and we aim to maintain an equity spread 5% or more on an ongoing basis.

Capital Allocation

Under the Mid-term Plan, we will realize business growth and shareholder returns, based on our capital allocation policy.

Growth investments largely comprise investments recorded as costs, such as those related to game and visual works production; investments necessary for business operations, such as the acquisition of molds; and strategic investments, referred to as "360 Investments," under the Mid-term Plan.

With these investments, we will focus not only on producing results during the current Mid-term Plan but also on contributing to growth over the medium to long term.