[Company analysis] Bandai Namco Holdings Inc. (バンダイナムコホールディングス)

「Bandai Namco Holdings Inc. (バンダイナムコホールディングス)」was established in 2005 after the management integration of「Bandai」and「Namco」, which were toy companies and game companies. This company develops not only toys, but also cards, gachas, food products, daily necessities, clothing, and other IPs in various fields. The number of consolidated employees is approximately 7,391.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	BANDAI NAMCO Holdings Inc.
Company name (Japanese)	バンダイナムコホールディングス
Date of establishment	Thursday, September 29, 2005
Headquarters location	〒108-0014 東京都港区芝5-37-8 バンダイナムコ未来研究所
Capital	10,000
Consolidated sales	732,347
Consolidated operating profit	84,045
Consolidated total assets	612,955
Consolidated capital	429,644
Capital adequacy ratio	70.1%
Consolidated number of employees	7,391

 

 

 

2. Summary and Features

 
In the 1950s,「Bandai」Began as a small toy manufacturing company. Thanks to the great success of Gundam model, this company become the Japan's largest toy manufacturing company. The other predecessor,「Namco」, started in 1955, under the name of「Nakamura Seisakusho, Ltd.(中村製作所)」and it was a major player in video game industry. In 2005, the two companies conducted business integration, and current「Bandai Namko Holdings」was established.

 

「Bandai Namko」is a toy manufacturing company as well as a game company, so it has relatively stable business structure. Especially, game and toy business is ideal for producing synergy effects. For example, they often make games with characters that were popular in the toys department, and conversely, they make characters that were popular in games into toys.

As for the scale of sales, "Network Entertainment" is at the top, and it was followed by "Toy Hobby" and "Visual Music Production". In terms of profits rate, "Visual music production" is the highest. In the case of competitors「Sony Interactive Entertainment(ソニーインタラクティブエンターテインメント)」and「Nintendo(任天堂)」, the both companies are also engaged in hardware manufacturing. But「Bandai Namco」is only concentrated in game software for mobile, PC and home game console. 

Compared to the above two competitors,「Bandai Namco」has relatively small overseas sales. So this company are trying to increase overseas sales to 30% by 2021. For this reason, they are planning to start full-scale business expansion in the Chinese market as well as expanding sales of network contents and home video games in Europe.

 

 

 

3. Major Business

 

■ Toy Hobby business

■ Network entertainment business

■ Visual music production business

■ Real entertainment business

■ IP Creation business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		620,061	678,312	732,347
Consolidated operating profit		63,238	75,024	84,045
Consolidated total assets		488,032	540,490	612,955
Consolidated net assets		348,784	387,354	429,644
Breakdown of sales	Toy Hobby business	218,098	222,417	242,865
	Network entertainment business	355,585	326,537	340,927
	Visual music production business	56,290	40,691	45,518
	Real entertainment business	0	90,549	101,493
	IP Creation business	0	16,970	22,464
	Others	26,797	27,640	29,764
	Adjustments	-36,710	-46,493	-50,687