Koei Tecmo Holdings Co., Ltd. · TSE:3635
Koei Tecmo — FY2011 Earnings Presentation
34 slides from Koei Tecmo's earnings presentation, May 10, 2012
Slide 1: Fiscal Year Ended March 2012 Financial Results
Fiscal Year Ended March 2012 Financial Results
Slide 2: Financial Summary (FY 2011)
Financial Summary (FY 2011) Achieved the highest sales and profit ever! Units:Million of Yen FY2010 FY2011 YoY Change Amount Ratio Amount Ratio Amount Ratio Sales 32,081 100.0% 35,525 100.0% 3,444 10.7% Operating 3,305 10.3% 5,758 16.2% 2,453 74.2% Profit Ordinary 4,788 14.9% 7,472 21.0% 2,684 56.1%
Slide 3: Major Titles and Events (FY2011)
Major Titles and Events (FY2011)
Slide 4: Sales and Operating Profit by Business Segment (FY2011)
Sales and Operating Profit by Business Segment (FY2011) FY2011 (Units:Millions of Yen Game Online & Media & Pachislot & Amusement Corporate & Consolidated Others Total Software Mobile Rights Pachinko Facilities Elimination Total Sales 24,883 5,635 1,838 1,701 1,887 216 36,162 637 35,525 Operating 4,
Slide 5: Net Sales by Region (FY2011)
Net Sales by Region (FY2011) (Units:Millions of Yen FY2010 FY2011 YoY Change Area Amount Ratio Amount Ratio Amount Ratio Japan 27,563 85.9% 29,918 84.2% 2,355 8.5% Overseas 4,518 14.1% 5,606 15.8% 1,088 24.1% North America 2,500 7.8% 2,784 7.8% 284 11.4% Europe 1,498 4.7% 1,356 3.8% 142 9.5% Asia 52
Slide 6: Sales Units by Region (FY2011)
Sales Units by Region (FY2011) (Thousands of Units FY2010 FY2011 YoY Change Area Units Ratio Units Ratio Units Ratio Japan 3,350 58.2% 4,100 66.9% 750 22.4% Overseas 2,410 41.8% 2,030 33.1% 380 15.8% North America 1,395 24.2% 950 15.5% 445 31.9% Europe 860 14.9% 730 11.9% 130 15.1% Asia 155 2.7% 350
Slide 7: Major Expenses, Capital Expenditure and Depreciation Expenses (FY2011)
Major Expenses, Capital Expenditure and Depreciation Expenses (FY2011) Capital Expenditure and Expenses to Sales Ratio Depreciation Expenses Millions of Yen 80 COG 2,500 Depreciation Expenses SG & A Capital Expenditure 70 2,043 2,000 60 64.0% 62.0% 50 Improved 2.0 points 1,500 40 990 975 30 1,000 77
Slide 8: Consolidated Plan (Fiscal Year Ending March 31, 2013)
TECMO KOEI HOLDINGS CO., LTD. Consolidated Plan (Fiscal Year Ending March 31, 2013)
Slide 9: Financial Summary (Plan FY2012)
Financial Summary (Plan FY2012) (Units:Millions of Yen FY2011 FY2012 YoY Change Amount Ratio Amount Ratio Amount Ratio Sales 35,525 100.0% 39,000 100.0% 3,475 9.8% Operating 5,758 16.2% 7,000 17.9% 1,242 21.6% Profit Ordinary 7,472 21.0% 8,300 21.3% 828 11.1% Profit Net Income 4,640 13.1% 5,000 12.8
Slide 10: Sales and Operating Profit by Business Segment (Plan FY2012)
Sales and Operating Profit by Business Segment (Plan FY2012) FY2012 (Plan) (Units:Millions of Yen Game Online & Media & Pachislot & Amusement Corporate & Consolidated Others Total Software Mobile Rights Pachinko Facilities Elimination Total Sales 26,000 6,750 2,400 1,900 1,900 250 39,200 200 39,000
Slide 11: Net Sales by Region (Plan FY2012)
Net Sales by Region (Plan FY2012) (Units:Millions of Yen FY2011 FY2012(Plan) YoY Change Area Amount Ratio Amount Ratio Aount Ratio Japan 29,918 84.2% 32,200 82.6% 2,282 7.6% Overseas 5,606 15.8% 6,800 17.4% 1,194 21.3% North America 2,784 7.8% 3,400 8.7% 616 22.1% Europe 1,356 3.8% 1,900 4.9% 544 40
Slide 12: Sales Units by Region (Plan FY2012)
Sales Units by Region (Plan FY2012) (Thousands of Units FY2011 FY2012 YoY Change Area Units Ratio Units Ratio Units Ratio Japan 4,100 66.9% 3,950 60.8% 150 3.7% Overseas 2,030 33.1% 2,550 38.1% 520 25.6% North America 950 15.5% 1,250 18.7% 300 31.6% Europe 730 11.9% 950 14.2% 220 30.1% Asia 350 5.7%
Slide 13: Major Expenses, Capital Expenditure and Depreciation Expenses (Plan FY2012)
Major Expenses, Capital Expenditure and Depreciation Expenses (Plan FY2012) Capital Expenditure & Expenses to Sales Ratio Depreciation Expenses Millions of Yen 80 COG 2,500 Depreciation Expenses Capital Expenditure SG & A 70 2,000 2,043 60 62.0% 61.5% 50 Improved 0.5 points 1,500 40 975 950 1,000 30
Slide 14: Management Policy & Strategy
Tecmo Koei Group Management Policy & Strategy
Slide 15: Ethos & Vision
Ethos & Vision Ethos Creativity & Contribution Contribute to society through the creation of new value instilled within our products and services. Vision To Become the World’s No.1 Entertainment Content Provider
Slide 16: Management Principles
Management Principles Create the Best Content Available Provide the most emotionally-moving experiences to customers through the creation of superior content. Realize Continual Growth and Profitability Stabilize the management base and aim for continued growth. Improve Employee Welfare Become a vibr
Slide 17: Long-Term Strategy / Product Concept
Long - Term Strategy / Product Concept Long - Term Strategy Content Creation Develop creative entertainment content in various fields to increase the fanbase of Tecmo Koei products across a variety of age ranges. Content Expansion Expand our intellectual property across a wide range of different are
Slide 18: Management Policy for FY2012: Achieving further Growth and Profitability
Management Policy for FY2012 Achieving further Growth and Profitability
Slide 19: Achieving further Growth and Profitability
Management Policy for FY2012 Achieving further Growth and Profitability Millions of Yen Sales Millions of Yen 50,000 Operating Profit 10,000 40,000 8,000 Operating Profit 30,000 6,000 Sales 20,000 4,000 10,000 2,000 0 0 FY2009 FY2010 FY2011 FY2012(Plan)
Slide 20: Plan to realize growth
Plan to realize growth Extension of series titles and challenge new title Expansion of collaboration business Support for new platform
Slide 21: Extension of series titles and challenging new title
Extension of series titles and challenging new title Worldwide simultaneous launch in September 2012 Target a million sales! Plan to release more well-known series titles. Aim to increase sales with each new version. Challenge new title.
Slide 22: Big hit of "ONE PIECE KAIZOKU MUSOU"
Expansion of collaboration business Big hit of “ONE PIECE KAIZOKU MUSOU” (English name is tentative)
Slide 23: Expansion of collaboration business
Expansion of collaboration business “Pokemon Nobunaga no Yabou”(English name is tentative) Collaborate with “Virtua Fighter”at “DEAD OR ALIVE 5” Achieve continued growth by using Tecmo Koei’s development capabilities and well-known IPs in collaboration with other companies! Expand collaboration busi
Slide 24: Support for new platform
Support for new platform Released launch titles for 3DS and PSVita 3DS “ SAMURAI WARRIROS: Chronicles” PSVita “ DYNASTY WARRIORS NEXT” “NINJA GAIDEN ! Plus” Target launch of new hardware as a business opportunity, proactively releasing titles. Continue to support new platform launches in the future.
Slide 25: Plan to realize profitability
Plan to realize profitability Maximize profitability through the selection of and focus on each business area Expansion of new business and strengthen synergy Further cost reductions
Slide 26: Maximize profitability through selection and focus on each business area
Maximize profitability through the selection of and focus on each business area Review low profitability projects and shift resources to high profitability projects. Social game : Concentrate on high profitability projects “Hyakuman nin no Nobunaga no Yabou” “Hyakuman nin no Winning Post” etc. Manag
Slide 27: Expansion of new business and strengthen synergy
Expansion of new business and strengthen synergy Strengthen download business “DYNASTY WARRIORS 7” 250 million yen “WARRIORS OROCHI 3” 45 million yen Expand to all titles, include “DEAD OR ALIVE 5” Expand new business and enhance monetization within Media &Rights, achislot & Pachinko and Amusement F
Slide 28: Gust - integration into the Tecmo Koei Group and future development
Gust - integration into the Tecmo Koei Group and future development GUST CO., LTD. The latest sales1,251 million yen/Operating Profit 486 million yen High profitability ratio - over 35% operating profit Holds well-known IP, such as the “Atelier” series. Strong development talent/skilled, especially
Slide 29: Gust - Create group synergy
Gust - integration into the Tecmo Koei Group and future development Create group synergy Expand business opportunities by employing well-known IP, such as the “Atelier” series, not just in games, but in other areas of the Tecmo Koei group Planning to hold first official Gust event in July 2012 Impro
Slide 30: Further cost reductions
Further cost reductions Expenses to Sales Ratio COG 80 Compare with FY2009 SG & A Improved 7.3 points 70 60 68.8% 64.0% 62.0% 61.5% 50 40 Compare with FY2009 Improved 8.9 points 30 20 29.4% 25.7% 21.8% 20.5% 10 0 FY2009 FY2010 FY2011 FY2012(Plan)
Slide 31: Growth and Profitability of Online Mobile business
Growth and Profitability of Online Mobile business Social Game direction FY2011 FY2012 FY2013 Released 9 social games Business Big Growth Restructure Created new pillars, such as “Hyakuman nin no Winning Post” my GAMECITY Grown to same scale as Online business Collaborations Taiwan Good start of Con
Slide 32: Exchange risk management
Exchange risk management Policy to reduce foreign currency rate of financial assets from 80% to 50%, targeted by FY2014 Investigate allocation to low risk assets other than financial assets Foreign currency rate of financial asset Yen currency 100 Foriegn currency 80 60 40 80% 50% 20 0 FY2011 FY2014
Slide 33: Toward high growth and profitability
Toward high growth and profitability Sales/Operating Profit/Ordinary Profit Ratio Ordinary Profit Ratio 30 25 20 Sales 15 Operating Profit/Ordinary Profit Operating Profit Ordinar y Profit 10 5 Millions of Yen Millions of Yen 50,000 20,000 40,000 15,000 Sales 30,000 10,000 20,000 5,000 10,000 0 0 FY
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