Koei Tecmo Holdings Co., Ltd. · TSE:3635
Koei Tecmo — FY2018 Earnings Presentation
36 slides from Koei Tecmo's earnings presentation, Apr 26, 2019
Slide 1: Fiscal Year Ending March 2019 Financial Results
Fiscal Year Ending March 2019 Financial Results April 26, 2019
Slide 2: Financial Summary (FY2018)
Financial Summary (FY2018) Record high profits were achieved! FY2017 FY2018 YoY Change Amount Ratio Amount Ratio Amount Rate of change Sales 38,926 100.0% 38,968 100.0% 42 0.1% Operating Profit 11,711 30.1% 12,092 31.0% 381 3.3% Ordinary Profit 18,293 11,711 47.0% 18,307 47.0% 14 0.1% Net Income 13,
Slide 3: Major Titles and Events (FY2018) - Development
Major Titles and Events (FY2018) Development
Slide 4: Major Titles and Events (FY2018) - IP License
Major Titles and Events (FY2018) IP License IP License
Slide 5: Sales and Operating Profit by Business Segment (FY2018)
Sales and Operating Profit by Business Segment (FY2018) Entertainment Pachislot & Amusement Real Estate Others Subtotal Corporate & Total Pachinko Facilities Elimination Sales 35,120 1,639 1,516 768 184 39,228 260 38,968 Operating Profit 11,078 587 99 273 52 12,092 0 12,092 Entertainment Pachislot &
Slide 6: Net Sales by Region (FY2018)
Net Sales by Region (FY2018) FY2017 FY2018 YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 26,000 66.8% 26,541 68.1% 541 2.1% Overseas 12,926 33.2% 12,427 31.9% △499 △3.9% North America 4,419 11.4% 3,926 10.1% △493 △11.2% Europe 3,334 8.6% 2,074 5.3% △1,260 △37.8% Asia 5,172 13.3% 6
Slide 7: Net Sales by Region (FY2018)
Net Sales by Region (FY2018) FY2017 FY2018 YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 2,250 31.1% 2,440 42.2% 190 8.4% Overseas 4,990 68.9% 3,340 57.8% △1,650 △33.1% North America 2,120 29.3% 1,390 24.0% △730 △34.4% Europe 1,670 23.1% 995 17.2% △675 △40.4% Asia 1,200 16.6% 955
Slide 8: Consolidated Plan (Fiscal Year Ending March 31, 2020)
KOEI TECMO HOLDINGS CO., LTD. Consolidated Plan (Fiscal Year Ending March 31, 2020)
Slide 9: Financial Summary (Plan FY2019)
Financial Summary (Plan FY2019) FY2018 FY2019 YoY Change Amount Ratio Amount Ratio Amount Rate of change Sales 38,968 100.0% 43,000 100.0% 4,032 10.3% Operating Profit 12,092 31.0% 12,000 27.9% 92 0.8% Ordinary Profit 18,307 47.0% 16,000 37.2% 2,307 12.6% Net Income 13,694 35.1% 13,000 30.2% 694 5.1
Slide 10: Sales and Operating Profit by Business Segment (Plan FY2019)
Sales and Operating Profit by Business Segment (Plan FY2019) Entertainment Amusement Real Estate Others Subtotal Corporate & Total Elimination Sales 39,040 3,300 650 130 43,120 120 43,000 Operating Profit 11,130 700 120 50 12,000 0 12,000 Entertainment Pachislot & Amusement Real Estate Others Subtot
Slide 11: Net Sales by Region (Plan FY2019)
Net Sales by Region (Plan FY2019) FY2018 FY2019 YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 26,541 68.1% 26,900 62.6% 359 1.4% Overseas 12,427 31.9% 16,100 37.4% 3,673 29.6% North America 3,926 10.1% 5,800 13.5% 1,874 47.7% Europe 2,074 5.3% 5,100 11.9% 3,026 145.9% Asia 6,427 1
Slide 12: Sales Units by Region (Plan FY2019)
Sales Units by Region (Plan FY2019) FY2018 FY2019 YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 2,440 42.2% 2,110 28.1% △330 △13.5% Overseas 3,340 57.8% 5,390 71.9% 2,050 61.4% North America 1,390 24.0% 2,440 32.5% 1,050 75.5% Europe 995 17.2% 1,930 25.7% 935 94.0% Asia 955 16.5%
Slide 13: Capital Expenditure and Depreciation Expenses (Plan FY2019)
Capital Expenditure and Depreciation Expenses (Plan FY2019) FY2016 FY2017 FY2018 Plan FY2019 Capital Expenditure (real estate) 8,417 3,570 0 13,866 Capital Expenditure (development equipment, etc.) 252 284 240 460 Depreciation Expenses 715 701 738 830
Slide 14: KOEI TECMO Group Management Policy
KOEI TECMO Group Management Policy President & CEO (Representative Director) Yoichi Erikawa
Slide 15: Medium-term Management Plan (FY2018-FY2020)
Medium-term Management Plan(FY2018-FY2020) Sales 3-year Mid-term Management Plan Profit Sales Operating Profit NEW Minato Mirai Ordinary Profit Office Aim to increase sales and profit rates yearly by at least 10%, and achieve sales of 51 billion yen, operating profit of 17 billion yen, and ordinary
Slide 16: Management Policy FY2019
Management Policy FY2019 1. Create and develop global IPs. 2. Effectively expand global business.
Slide 17: Create and develop global IPs
Management Policy FY2019 Create and develop global IPs. Multi-Platform Expansion into many genres Collaborative Tie-ins Efforts Animation Comics Toys Food service Movies Publishing Apparel Goods TV Local Global Expansion Music Food Community
Slide 18: Effectively expanding global business
Management Policy FY2019 Effectively expanding global business. 1. Create and release a title with sales of at least 5 million copies, and a smartphone title that generates 1 billion yen in sales monthly 2. Reevaluate the roles of our global offices (strengthen digital marketing and become a profit
Slide 19: Minatomirai office construction completion
Management Policy FY2019 January, 2020 Construction of office at Minatomirai will be completed.
Slide 20: Shareholder Return
Shareholder Return Basic policy Including acquistion of treasury stock, consolidated yearly overall payout 50% for dividends, or yearly dividend of 50 yen per stock Stock split As of October 1, 2018, performed a stock split at a 1.2 ratio to each common stock. Acquisition of treasury stock (1) Total
Slide 21: Shareholder Return
Shareholder Return Achieved 9 consecutive years of increased profits since the merger. To show our appreciation to all of our shareholders, we plan a special dividend of 5 yen per stock. Transition of dividend Dividend Net income Overall payout for FY2018: 62.03%
Slide 22: KOEI TECMO Group Management Policy Strategy
KOEI TECMO Group Management PolicyStrategy Executive Vice President (Representative Director) Hisashi Koinuma
Slide 23: Title Lineup (Console)
Title Lineup (Console) Worldwide release in March! Release of "Core Fighters" (free version)! Full scale start of global eSports!
Slide 24: Title Lineup (Console)
Title Lineup (Console) Includes recent anime stories from Season 1 to Season 3 Part 2 (Began broadcasting on April 28 in Japan)
Slide 25: Title Lineup (Console)
Title Lineup (Console) "Nioh 2", the sequel to "Nioh", which has sold over 2.5 million copies, is under development.
Slide 26: Title Lineup (Console) Development
Title Lineup (Console) Development
Slide 27: Title Lineup (Console) Development
Title Lineup (Console) Development
Slide 28: Title Lineup (Console)
Title Lineup (Console)
Slide 29: Title Lineup (Online/Mobile)
Title Lineup (Online/Mobile) Title Lineup (Online/Mobile)
Slide 30: Title Lineup (Online/Mobile)
Title Lineup (Online/Mobile) (Units: Millions of Yen) <cGDes Sales transition of online and mobile by quarter 2,500 2,000 1,500 1,000 500 ie) 16/06 16/09 16/12 17/03 17/06 17/09 17/12 18/03 18/06 18/09 18/12 19/03 Note: The total amount for online PC, social (including smartphone), and other mobile
Slide 31: Title Lineup (Online/Mobile)
Title Lineup (Online/Mobile) Change in revenue structure New Title Collaboration Series New Title New Title Collaboration Collaboration Increasing revenue Series Series New Title Series IP Licensing Up to now Current and going forward
Slide 32: Progress of the Mid-term Plan
Progress of the Mid-term Plan Image for growth in sales for the mid-term plan Console Online Mobile AM/Real Estate/Other
Slide 33: Progress of the Mid-term Plan
Progress of the Mid-term Plan Progress of the title with sales of at least 5 million copies AAA title targeting the global market New Title Oriental worldview, representative of KOEI TECMO Collaboration Games full of originality that Series make the best use of each brand's special characteristics N
Slide 34: Progress of the Mid-term Plan
Progress of the Mid-term Plan Smartphone title that generates 1 billion yen in sales monthly Make the best use of success in IP licensing and development/operating titles New Title Restart of the“midas” brand, Collaboration with development across multiple lines Series New Title Collaboration Series
Slide 35: Progress of the Mid-term Plan
Progress of the Mid-term Plan Strengthening digital marketing Reevaluate the roles Increased numbers of global operating titles from overseas of our global offices development subsidiary Developing new markets in Asia Continuing discussions with Full-scale entry into potential business partners Chin
Slide 36: Slide 36