Koei Tecmo Holdings Co., Ltd. · TSE:3635
Koei Tecmo — FY2016 Earnings Presentation
31 slides from Koei Tecmo's earnings presentation, May 30, 2017
Slide 1: Fiscal Year Ending March 2017 Financial Results
Fiscal Year Ending March 2017 Financial Results
Slide 2: Financial Summary (FY2016)
Financial Summary (FY2016) FY2015 FY2016 YoY Change Amount Ratio Amount Ratio Amount Rate of change Sales 38,332 100.0% 37,034 100.0% △1,298 △3.4% Operating Profit 11,069 28.9% 8,781 23.7% △2,288 △20.7% Ordinary Profit 15,755 41.1% 15,221 41.1% △534 △3.5% Net Income 10,855 28.3% 11,624 31.4% 769 7.1
Slide 3: Major Titles and Events (FY2016)
Major Titles and Events (FY2016)
Slide 4: Sales and Operating Profit by Business Segment (FY2016)
Sales and Operating Profit by Business Segment (FY2016) Entertainment Pachislot & Amusement Real Estate Others Subtotal Corporate & Total Pachinko Facilities Elimination Sales 33,025 1,992 1,266 788 336 37,410 △376 37,034 Operating Profit 7,815 736 27 248 243 9,071 △290 8,781 Entertainment Pachislot
Slide 5: Net Sales by Region (FY2016)
Net Sales by Region (FY2016) FY2015 FY2016 YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 28,768 75.0% 27,089 73.1% △1,679 △5.8% Overseas 9,564 25.0% 9,945 26.9% 381 4.0% North America 3,404 8.9% 4,411 11.9% 1,007 29.6% Europe 2,108 5.5% 2,159 5.8% 51 2.4% Asia 4,052 10.6% 3,375 9.
Slide 6: Sales Units by Region (FY2016)
Sales Units by Region (FY2016) FY2015 FY2016 YoY Change Units Ratio Units Ratio Amount Rate of change Japan 2,670 47.9% 3,060 48.3% 390 14.6% Overseas 2,905 52.1% 3,270 51.7% 365 12.6% North America 1,275 22.9% 1,320 20.9% 45 3.5% Europe 790 14.2% 880 13.9% 90 11.4% Asia 840 15.1% 1,070 16.9% 230 27
Slide 7: Consolidated Plan (Fiscal Year Ending March 31, 2018)
KOEI TECMO HOLDINGS CO., LTD. Consolidated Plan (Fiscal Year Ending March 31, 2018)
Slide 8: Financial Summary (Plan FY2017)
Financial Summary (Plan FY2017) FY2016 FY2017 YoY Change Amount Ratio Amount Ratio Amount Rate of change Sales 37,034 100.0% 42,000 100.0% 4,966 13.4% Operating Profit 8,781 23.7% 11,500 27.4% 2,719 31.0% Ordinary Profit 15,221 41.1% 16,000 38.1% 779 5.2% Net Income 11,624 31.4% 11,700 27.9% 76 0.6%
Slide 9: Sales and Operating Profit by Business Segment (Plan FY2017)
Sales and Operating Profit by Business Segment (Plan FY2017) Entertainment Pachislot & Amusement Real Estate Others Subtotal Corporate & Total Pachinko Facilities Elimination Sales 37,200 2,000 2,100 730 120 42,150 △150 42,000 Operating Profit 10,200 750 200 300 50 11,500 0 11,500 Entertainment Pach
Slide 10: Net Sales by Region (Plan FY2017)
Net Sales by Region (Plan FY2017) FY2016 FY2017 YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 27,089 73.1% 31,500 75.0% 4,411 16.3% Overseas 9,945 26.9% 10,500 25.0% 555 5.6% North America 4,411 11.9% 4,300 10.2% △111 △2.5% Europe 2,159 5.8% 2,500 6.0% 341 15.8% Asia 3,375 9.1% 3,
Slide 11: Sales Units by Region (Plan FY2017)
Sales Units by Region (Plan FY2017) FY2016 FY2017 YoY Change Units Ratio Units Ratio Amount Rate of change Japan 3,060 48.3% 2,650 41.4% △410 △13.4% Overseas 3,270 51.7% 3,750 58.6% 480 14.7% North America 1,320 20.9% 1,500 23.4% 180 13.6% Europe 880 13.9% 1,050 16.4% 170 19.3% Asia 1,070 16.9% 1,20
Slide 12: Capital Expenditure and Depreciation Expenses (Plan FY2017)
Capital Expenditure and Depreciation Expenses (Plan FY2017) Capital Expenditure and Depreciation Expenses Depreciation Expenses Capital Expenditure (real estate) Capital Expenditure (development equipment, etc.) 8,417 4,394 924 846 715 468 437 252 650 350
Slide 13: KOEI TECMO Group Management Policy & Strategy
KOEI TECMO Group Management Policy & Strategy
Slide 14: FY2016 Review
FY2016 Review Operating Profit Net Income Sales •Some game releases have been postponed for quality improvement purposes. •We will thoroughly control quality, delivery dates, and costs. •We will redouble our efforts to recover user trust and aim for record-high profits.
Slide 15: Reflecting on FY2016 and Future Action
Reflecting on FY2016 and Future Action *Thoroughly control quality, pete delivery dates, and costs regareing ‘Improve the development release dates : approval process and delivery Pe P =>Recover user trust ink ere -Forming plans according to Achieve Gee of market conditions record-high units *Enhanc
Slide 16: FY2016 Review
FY2016 Review Highly acclaimed: Received a Metacritic score of 88 Ranked 8th place in sales on the App Store! and a user score of 9.0! We expect this title to raise revenue for our smartphone Succeeded in creating a new IP for the global market! business throughout the year.
Slide 17: IP Creation and Expansion
Management Policy FY2017 Management Policy: IP Creation and Expansion 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: IP Creation and Expansion
IP Creation and Expansion
Slide 19: IP Creation and Expansion
IP Creation and Expansion We have planned various campaigns to celebrate the anniversaries of "Tecmo" ,"ω-Force", and the "Atelier" series.
Slide 20: Platform Expansion: Release titles on Nintendo Switch
Platform Expansion Release titles on Nintendo Switch™.
Slide 21: Platform Expansion: VR mode for DEAD OR ALIVE Xtreme 3
Platform Expansion Release a VR mode for "DEAD OR ALIVE Xtreme 3" on PlayStation®VR.
Slide 22: Platform Expansion: VR SENSE
Platform Expansion "VR SENSE" has functions that stimulate the five senses.
Slide 23: Platform Expansion: More smartphone games to come
Platform Expansion More and more smartphone games to come!
Slide 24: We have founded a new brand, midas
Platform Expansion We have founded a new brand,"midas". Leading development with free ideas by creators in their twenties and thirties, we will make hit games for smartphone.
Slide 25: Collaborative efforts
Collaborative efforts Also planned to release other collaboration titles, both in Japan and worldwide.
Slide 26: Tie-ups
Tie-ups •Yokohama DeNA Baystars × "WARRIORS ALL-STARS" •Wrestling organization "DDT" × "Nobunaga's Ambition Oretachi no Sengoku ” •"FINAL FANTASY XV" × "BLUE REFLECTION” •"Oda Cinnamon Nobunaga" × "Nobunaga's Ambition Online" & "Nobunaga's Ambition 201X" Tie-ups with industries we have not collabora
Slide 27: Global Expansion: Planned to launch in Japan
Global Expansion "DYNASTY WARRORS UNLEASHED" Over 3 million downloads! Ranked as one of the top 10 in sales for Taiwan, Hong Kong, and South Korea! Planned to launch in Japan
Slide 28: Global Expansion
Global Expansion
Slide 29: Enhance digital business
Enhance digital business Increasing digital business sales proportion contributes to profit. Transition of the digital business sales proportion Sales Sales Proportion
Slide 30: Transition of dividend and net income
70 60 50 40 30 20 10 Transition of dividend Netinaome (Dividend of Yen) (Units: Millions of Yen) 14,000 67.2Yen 67.2Yen 62.4Yen ara 4 October Ist, 2015 Stock oneeies 1:1.2 | 2,000 ie) §) Dividend | =<@ Net Income FY2012 FY2013 syeola PvE FY2015 FY2016 PlanFY2017 12,000 10,000 8,000 6,000 4,000
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