Koei Tecmo Holdings Co., Ltd. · TSE:3635

Koei Tecmo — H1 FY2016 Earnings Presentation

34 slides from Koei Tecmo's earnings presentation, Nov 19, 2015

  1. Slide 1: Fiscal Year Ending March 2016 1st Half Financial Results

    ® KOEI TECMO HOLDINGS CO., LTD. Fiscal Year Ending March 2016 Ist Half Financial Results .@

  2. Slide 2: Financial Summary (FY2015 1st Half)

    Financial Summary (FY2015 1st Half) Sales Operating Profit Ordinary Profit Net Income Term ended Sep.2014 Amount Ratio 16,110; 100.0% 3,293, 20.4% 6,166) 38.2% 4,205; 26.1% Term ended Sep.2015 Amount Ratio 15,159 100.0% 2,477 16.3% 5,653 37.3% 4,061 26.8% (Units:Millions of Yen) Change from YoY Chan

  3. Slide 3: Major Titles and Events (FY2015 1st Half)

    Major Titles and Events (FY2015 1st Half) Aw \ £ Mit Ft Ait TA ~ aun / a \ BODO. Empires PS4/ PS3 PS4/ PS3/ PS Vita PS4/ PS3/ PS Vita { _ 100,000 Copies 90,000 Copies 1 Japan/Asia Japan/Asia Events 60,000 Copies (150,000 Copies asof (100,000 Copies as of 30,000 Participants Japan/Asia end of Oct 201

  4. Slide 4: Sales and Operating Profit by Business Segment

    Sales and Operating Profit by Business Segment (FY2015 1st Half) Term ended Sep.20 T 5 (Units:Millions of Yen) Game Online & Media & Pachislot & Amusement Corporate & |Consolidated Software Mobile Rights Pachinko Facilities RealEstate) Others Total Elimination Total Sales) 8,873 3,459 1,097 964 690

  5. Slide 5: Net Sales by Region (FY2015 1st Half)

    Net Sales by Region (FY2015 Ist Half) Japan Overseas North America Europe Asia Grand Total Term ended Sep. 2014 Amount 12,601 3,509 1,681 1,101 727 16,110 Ratio 78.2% 21.8% 10.4% 6.8% 4.5% 100.0% Term ended Sep. 2015 Amount 11,350 3,809 1,588 942 1,279 15,159 Ratio 74.9% 25.1% 10.5% 6.2% 8.4% 100.0%

  6. Slide 6: Sales Units by Region (FY2015 1st Half)

    Sales Units by Region (FY2015 Ist Half) (Units:Thousands of Units) Term Se Sep. Term Ole Sep. YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 1,200 41.5% 810 38.6% A390 A32.5% Overseas 1,695 58.5% 1,290 61.4% A405 A23.9% Rneica 930 = 32.1% 570 27.1% A360 A38.7% Europe 535 18.5% 185

  7. Slide 7: Major Expenses, Capital Expenditure and Depreciation Expenses

    Major Expenses, Capital Expenditure and | Depreciation Expenses (FY2015 1st Half) : —¢coG Capital Expenditure and a Sales Ratio _._scea Depreciation Expenses Operating (Units:Millions of Yen) so - Profit Ratio 5,000 - 4,530 || Depreciation Expenses 70 + Increased 1.Opoint li Capital Expenditure a 58

  8. Slide 8: Consolidated Plan (Fiscal Year Ending March 31, 2016)

    KOEI TECMO HOLDINGS CoO., LTD. Consolidated Plan (Fiscal Year Ending March 31, 2016)

  9. Slide 9: Financial Summary (Plan FY2015)

    Financial Summary (Plan FY20I5) (Units:Millions of Yen) FY2014 YoY Change Amount Ratio Amount Rate of Sales| 37,799) 100.0% 2,201 5.8% Operating 9652 25.5% 348 3.6% Profit Ordinary Profit 13,568 35.9% Net Income 9,434 25.0% 432 3.2% 66 0.7%

  10. Slide 10: Sales and Operating Profit by Business Segment (Plan FY2015)

    Sales and Operating Profit by Business Segment (Plan FY2015) FY2015 (Units:Millions of Yen) Game Online & Media & Pachislot & Amusement Corporate & Consolidated Software | Mobile Rights Pachinko ‘Facilities RealEstate Others Total Elimination Total Sales 26,200 7,700 2,900 2,000 1,200 700 80 40,780

  11. Slide 11: Net Sales by Region (Plan FY2015)

    Net Sales by Region (Plan FY2015) (Units:Millions of Yen) FY2014 FY2015 YoY Change Amount Ratio Amount Ratio Amount _ Rate of change Japan 29,877 79.0%, 32,100 80.2% 2,223 7.4% Overseas 7,922 21.0% 7,900 19.8% Ae2 A0.3% North a 3,728 9.9% 3,200 8.0% A528 A14.2% Europe 2,431 6.4%, 2,400 6.0% A3l A1.3

  12. Slide 12: Sales Units by Region (Plan FY2015)

    Sales Units by Region (Plan FY2015) (Units: Thousands of Units) FY2014 FY2015 YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 3,790 53.8% 4,000 57.1% 210 5.5% Overseas 3,255 46.2% 3,000 42.9% A255 A7.8% Ter tlca 1,680 238% 1,400 20.0% A280 AI16.7% Europe 71,055 15.0% 1,000 14.3% A55

  13. Slide 13: Major Expenses, Capital Expenditure and Depreciation Expenses (Plan FY2015)

    Major Expenses, Capital Expenditure and | Depreciation Expenses (Plan FY2015) (%) 60 50 40 30 20 10 Sales Ratio Increase 0O.2points =" 54.8% 55.0% ~~ —o- Decrease O.5points 25.5% 25.0% === ————— 19.7% 20.0% Increase O.3points COG SG&A Operating Profit Ratio FY2014 FY2015 (Plan) Capital Expenditure a

  14. Slide 14: Management Policy & Future Business Deployment

    Koei Tecmo Group Management Policy & Future Business Deployment

  15. Slide 15: 1st Half Review

    Ist Half Review: Operating profit, Ordinary Profit, Net Profit exceeded Forecast! eGame release postponed ( Units:Millions of Yen) . . Change for quality improvement. Resties (gon oF Aor) rete Rate of (30th of April) Sales| 15,159] 15,500 A341) A2.2% eRoyalty revenue has been . . . Operating) 2.477|

  16. Slide 16: Growth of download sales

    Growth of download sales Profitability improving due to growth of download sales. Free-to-Play[DEAD OR ALIVE 5 Last Round] Over 4 million downloaded! Transition of download sales ( Units:Millions of Yen) ™ Downloadable Contents 2,500 5 2,000 1,500 1,000 500 O @) Full-game Download 5,000 4,000 3,000

  17. Slide 17: Management Policy FY2015

    Management Policy FY2015 IP Creation and Expansion Multi-platform Expansion into a many genres Tie-ups : = > collaborative efforts Animation Comics Toys Food i Ichi service Movies | Publishing , Apparel Goods TV Music rood Local Global Expansion community

  18. Slide 18: IP Creation and Expansion

    IP Creation and Expansion fEROIC LEGEND OF AR THE HEROIC LEGEND OF ARSLAN Pr a) TNMARVY PS4 / PS3/ PS Vita PS4 / PS3 Nintendo 3DS ©2015 J-I-7F7EF—LAZ All rights reserved. ©2015 Fil lloh - APB - RL /(PIVAD—LV Bic] RFRA MBS ©2015 I-L-FIEF—-hA ONintendo ©I-L—-FI7EF—LzZ All rights reserved, Licensed by

  19. Slide 19: Multi-Platform

    Multi-Platform 1. Hardware Platform PlayStation®4, PlayStation®s3, PlayStation®Vita, PlayStation®VR., Wii U. Nintendo SDS, Xbox One and on 2. Software Platform DeNA, GREE, d Game, Yahoo!Mobage., PC browser and on 3. Own platform my GAMECITY ©2015 Sony Computer Entertainment Inc. All Rights Reserved.

  20. Slide 20: Expansion into many genres

    Expansion into many genres or big hit in native app market va =VwbtFLyIA Other new titles are scheduled for release! ©1-L—-FI7EF—LZ All rights reserved

  21. Slide 21: Collaborative efforts

    Collaborative efforts I Vice WA | eUtilizing Koei Tecmo's technical and developmental capabilities, several major collaborative titles have been realized. Number of titles increases yearly. eWorking on collaboration with major overseas IPs PME / RUA EBOBA| GERtH)) Omelet EROBA|RFBSR CI-I-FOEF—-AA GL

  22. Slide 22: Tie-ups

    Tie-ups e"Samurai Warriors 4 Empires" XLeopalace 21 eJin yashiki -"Samurai Warriors" X TBI Group "Winning Post" X Tokyo City Keiba e"Haruka naru toki no nakade 6" Cafe e¢Neo Romance festival X Karaoke no Tetsujin Stage "Geten no Hana" Stage "Samurai Warriors" Stage "Nobunyaga no Yabou" bd ©Leopalace

  23. Slide 23: Global Expansion

    Global Expansion Also adapt games to PS4/PS Vita/Xbox e in China." Expand smartphone games and browser gam att nto Asian market! { Korea ) _ Uncharted Waters V « China ) Uncharted Waters V Nobunyaga no Yabou Dynasty Warriors Blast PS4/PS Vita Dynasty Warriors 8 Xtreme Legends » Toukiden: Kiwami { Ta

  24. Slide 24: Romance of the Three Kingdoms 30th Anniversary Project (1)

    Romance of the Three Kingdoms 30th Anniversary Project (1) QP ee = A : nh ive! #P>=1)-7377-L - ———=* ©D-I—-F 9ET—LAZ Allrights reserved.

  25. Slide 25: Romance of the Three Kingdoms 30th Anniversary Project (2)

    Romance of the Three Kingdoms 1 30th Anniversary Project (2) Anniversary. Aiming to maximize IP value through 2 collaborations and tie-ups 3 gl Zl ¥ e"Yokai Sangokushi" "RTK Tsuku-ru" "RTK Legion" 4I-W "Sangokushi Sousouden Online (tentative)" e"Sangokushi DVD & Data file" Eiji Yoshikawa’'s novel "S

  26. Slide 26: Enhance Digital Business

    Enhance Digital Business _ (Units:Millions of Yen) Fransition of Digital Business sales and ratio (%) 12,500 - 1 40 !) Download Sales fi Online & Mobile Sales 10,000 | ~® Sales Ratio 7 30 7,500 fF 720 5,000 r +110 2,500 r O FY2011 FY2012 FY2013 FY2014 FY2015 (Plan)

  27. Slide 27: Over 800,000 users!

    Over 800,000 users! es Users -®@ Titles Mar. 2015 ©2003 SQUARE ENIX Co., LTD. All Rights Reserved. CI-T—79EF—/Z All rights reserved. (Titles) My cameciry 35 30 25 20

  28. Slide 28: PS4 / PS3 / PS Vita

    PS4 /PS3/ PS Vita ©1-L—F7EF—LA2 All rights reserved.

  29. Slide 29: Sales Ratio

    (%) Sales Ratio —e— Operating Profit Ratio 62.0% 59.8% 57.0% 564.8% 55.0% f Compared with ) FY2011 Improved 7.Opoints 25.5% 25.0% Compared with FY2011 Improved 8.8points 17.2% 17.9% 19.0% Compared with } FY2011 16.2% 16.3% 16.1% 15.4% 15.2%| 2qove" FY2011 FY2012 FY2013 FY2014 FY2015 (Plan)

  30. Slide 30: Sales and Operating Profit / Ordinary Profit

    Sales (Units:Millions of Yen) 40,000 30,000 20,000 10,000 Sales/Operating Profit/Ordinary ™ Sales W®) Operating Profit Wi Ordinary Profit FY2011 FY2012 Operating Profit/Ordinary Profit (Units:Millions of Yen) 15,000 FY2013 FY2014 FY2015 (Plan) 10,000 5,000

  31. Slide 31: Aiming for Operating Profit Ratio 30%!

    Aiming for Operating Profit Ratio 30%! (%) 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 Operating Profit Ratio & Ordinary Profit Ratio 35.9% 35.0% 25.5% 25.0% 16.2% <® Ordinary Profit Ratio ~® Operating Profit Ratio | | l l | FY2011 FY201e FY2013 FY2014 FY2015 (Plan)

  32. Slide 32: Stock Split delivered

    Stock Split delivered Effective date : October 1st, 2015 Split Ratio: 1: 1.2 Purpose : To enhance the trading liquidity of our stock and expand the investor base, by lowering the amount per investment unit.

  33. Slide 33: Dividend Policy: Payout ratio 50% or Yen per stock

    Dividend Policy: Payout ratio 50% or 50 Yen per stock (Dividend : Yen) 60 50 40 30 20 10 FY2011 Transition of dividend October Ist, 2015 Stock Split FY2012 FYe20O13 FY2014 FY2015 (Plan) FY2015: 55.20 Yen if converted before Stock Split

  34. Slide 34: Statements regarding future objectives and expectations

    ® This document contains statements regarding future objectives, beliefs and current expectati on KOEI TECMO HOLDINGS CO., LTD. with respect to its financial results. “a Such statements imply risks uncertainties and no guarantee of future perfor The Other company name, product

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