Slide 1: Fiscal Year 2022 Financial Results Presentation
Fiscal Year 2022 Financial Results Presentation Capcom Co., Ltd. May 16, 2023 Capcom Public Relations & Investor Relations Section Capcom Public Relations & Investor Relations Section 0
Slide 2: Fiscal Year 2022 Financial Results Presentation
Fiscal Year 2022 Financial Results Presentation Capcom Co., Ltd. Haruhiro Tsujimoto, President and COO May 16, 2023 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: 1. Capcom's 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: 1. Capcom's Philosophy
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. Medium-term Goals
2. Medium-term Goals Capcom Public Relations & Investor Relations Section 5
Slide 7: 2. Medium-Term Goals (1)
2. Medium-Term Goals (1) ◼ Medium-term Management Objective ⚫ Maintain goal of annual OP growth (10% or more), driven by strengthened global sales ⚫ Develop peripheral and stable businesses to create synergies with Consumer business (100 million yen) 600 560 500 Operating Income 508 Net Income 429 4
Slide 8: 2. Medium-Term Goals (2)
2. Medium-Term Goals (2) ◼ Consumer sales volume growth ⚫ Growth via enhanced digital sales, improved catalog title ratio ⚫ Long-term goal: 100 million annual unit sales 79.3% (ten thousand units) 73.6% 71.4% 70.3% 4,500 68.1% 4,500 4,170 Total unit sales 4,000 Digital unit sales 56.1% Catalog sales
Slide 9: 2. Medium-Term Goals (3)
2. Medium-Term Goals (3) ◼ Global catalog title growth via PC platform support and digital marketing ⚫ Sold 307 titles in 230 countries/regions via leveraging the PC platform (*FY22) Steady growth in sales regions and unit volume over past 5 years ⚫ Promoting sales growth strategy based on analysis
Slide 10: 2. Medium-Term Goals (4)
2. Medium-Term Goals (4) ◼ 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 2024/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 unit sales* (Plan) Resident Evil 7 biohazard 350 160 12
Slide 11: 2. Medium-Term Goals (5)
2. Medium-Term Goals (5) ◼ Catalog title growth drives profit growth ⚫ (1) Sales region expansion ＋ (2) Long-term sales of high-quality titles ➢ Catalog title sales volume grew 7X in 10 years (29.3 million units in FY22 vs. 3.9 million units in FY12) ➢ Growth of high-margin catalog titles has become
Slide 12: 3. Strategy for Sustainable Growth
3. Strategy for Sustainable Growth Capcom Public Relations & Investor Relations Section 11
Slide 13: 3. Strategy for Sustainable Growth (1)
3. 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 in FY22) (1) Increased average annual employee salary by 30%, introduced stock-grant ESOP program
Slide 14: 3. Strategy for Sustainable Growth (2)
3. Strategy for Sustainable Growth (2) ◼ Strengthening our brands worldwide ⚫ Accelerating reach of our brands into more than 200 countries/regions by pursuing in-house movie production, esports promotions and sponsorships Games mean Games...? ！ ！ Established Capcom Pictures Monster Hunter Now (lice
Slide 15: 3. Strategy for Sustainable Growth (3)
3. 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 Preopening of Miraino Aeon Mall Enhance online claw crane games Toyokawa Store in March 2023 Es
Slide 16: 4. Market Overview
4. Market Overview Capcom Public Relations & Investor Relations Section 15
Slide 17: 4. Market Overview
4. Market Overview Global game market expected to grow ◼ Video Game Market (100 million USD) 2,366 2,421 2,284 2,188 2,179 2,062 2,102 2,034 Mobile content PC Online Consumer （CY） E: Estimate *Source ： Data prepared from International Development Group Capcom Public Relations & Investor Relations Se
Slide 18: 5. Forecasts for FY3/24
5. Forecasts for FY3/24 Capcom Public Relations & Investor Relations Section 17
Slide 19: 5. Forecasts for FY3/24 (1)
5. Forecasts for FY3/24 (1) Aim for 11 consecutive years of increased operating income driven by stable growth of the Digital Contents business (million yen) 2023/3 2024/3 Plan Difference Net sales 125,930 140,000 14,070 Operating income 50,812 56,000 5,188 Operating margin 40.3% 40.0% - Ordinary in
Slide 20: 5. Forecasts for FY3/24 (2)
5. Forecasts for FY3/24 (2) Digital Contents business drives growth Anticipate increased sales and profit across all business segments (million yen) 2022/3 2023/3 2024/3 Plan Difference Digital Contents Net sales 87,534 98,158 106,300 8,142 Operating income 45,359 53,504 58,900 5,396 Unit sales (tho
Slide 21: Capcom Public Relations & Investor Relations Section
Capcom Public Relations & Investor Relations Section 20