Capcom Co., Ltd. · TSE:9697
Capcom — FY2023 Earnings Presentation
23 slides from Capcom's earnings presentation, May 13, 2024
Slide 1: Fiscal Year 2023 Financial Results Presentation
Fiscal Year 2023 Financial Results Presentation Capcom Co., Ltd. May 13, 2024 Capcom Public Relations & Investor Relations Section Capcom Public Relations & Investor Relations Section 0
Slide 2: Fiscal Year 2023 Financial Results Presentation
Fiscal Year 2023 Financial Results Presentation Capcom Co., Ltd. Haruhiro Tsujimoto, President and COO May 13, 2024 Capcom Public Relations & Investor Relations Section Capcom Public Relations & Investor Relations Section 1
Slide 3: 1. Capcom's Philosophy
1. Capcom’s Philosophy Capcom Public Relations & Investor Relations Section 2
Slide 4: Corporate Philosophy
1. Capcom’s Philosophy Corporate Philosophy: We are creators of entertainment culture that stimulates your senses Capcom Public Relations & Investor Relations Section 3
Slide 5: 40th Anniversary: From Osaka, to the World
1. Capcom’s Philosophy Celebrating the 40th anniversary of Capcom’s founding with our motto: “From Osaka, to the World” Capcom Public Relations & Investor Relations Section 4
Slide 6: 2. Market Overview
2. Market Overview Capcom Public Relations & Investor Relations Section 5
Slide 7: Global video game market forecast to grow
2. Market Overview (1) Global video game market forecast to grow Video Game Market Market set to break $250 billion (100 million USD) 2,588 2,445 2,507 2,500 2,359 2,263 2,223 2,034 2,000 1,638 Mobile Contents 1,592 1,462 1,534 Game apps for mobile 1,362 1,392 phones, tablets, etc. 1,500 1,226 モ
Slide 8: Global game player population expected to grow
2. Market Overview (2) Global game player population expected to grow beyond 3.3 billion people • Video games now mainstream entertainment • Estimate 1.5 billion people in Capcom’s primary target markets of PC and Console Global game player population （million people） 4,000 3,168 3,305 3,064 3,000
Slide 9: 3. Medium-term Goals
3. Medium-term Goals Capcom Public Relations & Investor Relations Section 8
Slide 10: Medium-Term Management Objective
3. Medium-Term Goals (1) Medium-term Management Objective • Maintain goal of annual OP growth (10%), driven by strengthened global sales • Develop peripheral and stable businesses to create synergies with Consumer business (100 million yen) 800 700 Operating Income Net Income 640 600 570 508 500 4
Slide 11: Consumer sales volume growth
3. Medium-Term Goals (2) Consumer sales volume growth • Grow via enhanced digital sales; maintain high ratio of catalog title sales • Long-term goal: 100 million annual unit sales Total unit sales (ten thousand units) 6,000 79.1% Physical unit sales 73.6% 74.0% 71.4% 70.3% Digital unit sales 68.1%
Slide 12: Global catalog title growth via PC platform support
3. Medium-Term Goals (3) Global catalog title growth via PC platform support and digital marketing • Sold 292 titles in 235 countries/regions via leveraging the PC platform (*FY24/3) • Steadily grew sales volume in each area compared to FY20/3 • Promoting sales growth strategy by enhancing data an
Slide 13: Unit sales volume by area (5 years)
3. Medium-Term Goals (4) Reference: Unit sales volume by area (5 years) • All areas steadily growing • Developing areas such as Asia, Middle and South America, and the Middle East in particular grew more than double (thousand units) 20/3 21/3 22/3 23/3 24/3 5yr Growth Results Share vs. prev. Resul
Slide 14: Long-term sales of high-quality titles
3. Medium-Term Goals (5) Long-term sales of high-quality titles • Major IP contribute long-term, both as new titles and on into high-margin catalog sales (ten thousand units) Cummulative 25/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 unit sales (Plan) Resident Evil 7 biohazard 350 160 120 100 150 18
Slide 15: Catalog title growth drives profit growth
3. Medium-Term Goals (6) Catalog title growth drives profit growth (1) Sales region expansion ＋ (2) Long-term sales of high-quality titles Catalog title sales volume grew 6X in 10 years (36 million units in FY24/3 vs. 5.7 million units in FY14/3) Growth of high-margin catalog titles has beco
Slide 16: 4. Strategy for Sustainable Growth
4. Strategy for Sustainable Growth Capcom Public Relations & Investor Relations Section 15
Slide 17: Personnel Investment Strategy
4. Strategy for Sustainable Growth (1) Personnel Investment Strategy Pursuing personnel investment strategy under direction of CHO in working toward mid-to-long term sustainable growth (Carried out since FY22) (1) Increased average annual employee salary by 30%; introduced stock-grant ESOP progr
Slide 18: Strengthening our brands worldwide
4. Strategy for Sustainable Growth (2) Strengthening our brands worldwide Accelerating reach of our brands into more than 230 countries/regions by pursuing in-house movie production, esports promotions and sponsorships Games mean ！ ！ Games...? Courtesy of Netflix Established Capcom Pictures Netf
Slide 19: Bolstering related businesses
4. Strategy for Sustainable Growth (3) Bolstering related businesses Building base support for consolidated earnings by bolstering related businesses such as Arcade Operations and Amusement Equipments Capsule Lab Takeshita Street store opened Enhance online claw crane games December 15, 2023 Pur
Slide 20: 5. Forecasts for FY25/3
5. Forecasts for FY25/3 Capcom Public Relations & Investor Relations Section 19
Slide 21: Forecasts for FY25/3 (1)
5. Forecasts for FY25/3 (1) Aim for 12 consecutive years of increased operating income driven by stable growth of the Digital Contents business (100 million yen) 24/3 Results 25/3 Plan H1 YoY H2 YoY FY YoY H1 YoY H2 YoY FY YoY Net sales 749 53% 774 1% 1,524 21% 570 -24% 1,080 39% 1,650 8% Operating
Slide 22: Forecasts for FY25/3 (2)
5. Forecasts for FY25/3 (2) Digital Contents business drives growth Anticipate increased sales and profit across all business segments (100 million yen) 20/3 21/3 22/3 23/3 24/3 25/3 Plan Difference Digital Contents Net sales 599 753 875 981 1,198 1,250 51 Operating income 241 370 453 535 598 669 70
Slide 23: Capcom Public Relations & Investor Relations Section
Capcom Public Relations & Investor Relations Section 22