Capcom Co., Ltd. · TSE:9697
Capcom — H1 FY2021 Earnings Presentation
21 slides from Capcom's earnings presentation, 2020
Slide 1: Capcom Co., Ltd. First Half Report, Fiscal Year Ending March 31, 2021
Capcom Co., Ltd. (Tokyo Stock Exchange, First Section, 9697) First Half Report Fiscal year ending March 31, 2021 Capcom Public Relations & Investor Relations Section Capcom Public Relations & Investor Relations Section 0
Slide 2: Major Takeaways
Major Takeaways Regarding H1 Results • Digital sales for major new title and catalog titles contributed to YoY sales and profit growth • Impact of COVID-19 on businesses and development currently negligible Regarding Full-Year Business Plan • Currently performing well compared to full-year plan;
Slide 3: Contents / Forward-looking Statements
Contents page 1. Forecasts for FY3/21 3 2. Financial Highlights 4 3. Business Segment Results 7 4. Business Segment Plans & Strategies 13 5. Supplement 19 Summary of Major Financial Information / Our Major IP Forward-looking Statements Strategies, plans, outlooks and other statements that are not hi
Slide 4: 1. Forecasts for FY3/21
1. Forecasts for FY3/21 Targeting eight consecutive years of OP growth and record profit driven by stable Digital Contents business contributions (million yen) 2020/3 2021/3 Plan Difference Net sales 81,591 85,000 3,409 Operating income 22,827 25,500 2,673 Operating margin 28.0% 30.0% - Ordinary inc
Slide 5: 2-1. Financial Highlights – Consolidated Business Results (1)
2-1. Financial Highlights – Consolidated Business Results (1) 6 Months Results in FY9/19 vs. FY9/20 (million yen) 2019/9 2020/9 Difference Net sales 37,272 42,059 4,787 Operating income 13,992 17,863 3,871 Ordinary income 14,002 17,571 3,569 Net income attributable to owners of the parent 9,846 12
Slide 6: 2-1. Financial Highlights – Consolidated Business Results (2)
2-1. Financial Highlights – Consolidated Business Results (2) FY9/20 Net Sales/Operating Income (by segment) (million yen) 2019/9 2020/9 Difference 2021/3 Plan Net sales 37,272 42,059 4,787 85,000 Digital Contents 29,163 35,378 6,215 66,900 Arcade Operations 6,233 4,031 -2,202 10,500 Amusement Equ
Slide 7: 2-2. Financial Highlights – Financial Position
2-2. Financial Highlights – Financial Position FY9/20 Balance Sheet/Statement of Cashflows (Summary) Balance Sheet (million yen) Statement of Cashflows (million yen) Assets 2020/3 2020/9 Difference 2019/9 2020/9 Difference Current Assets 108,829 104,751 -4,078 Cash flows from operating activities
Slide 8: 3-1. Business Segments – Digital Contents (1)
3-1. Business Segments – Digital Contents (1) Sales and profit up driven primarily by robust digital sales in Consumer Digital Contents Performance (100 million yen) 2018/9 2019/9 2020/9 2021/3 Plan Net sales 341 291 353 669 Breakdown Package 114 75 73 159 Digital (incl. digital license) 195 199 2
Slide 9: 3-1. Business Segments – Digital Contents (2)
3-1. Business Segments – Digital Contents (2) Sales volume up YoY Overseas, digital and catalog volumes grow Unit Sales for the 6 Months (Consumer) (units in thousands) 2018/9 2019/9 2020/9 2021/3 Plan New Titles (SKU) 32 15 7 14 Total unit sales 10,900 11,100 13,800 28,000 Overseas units 9,350 8,
Slide 10: 3-1. Business Segments – Digital Contents (3)
3-1. Business Segments – Digital Contents (3) Focused on expanding sales of new major title and long-term sales of titles released in previous fiscal years 6 Months Highlights (Consumer) Resident Evil 3 exceeds cumulative 3 million units sold Catalog titles Resident Evil 2 and Resident Evil 7
Slide 11: 3-2. Business Segments – Arcade Operations
3-2. Business Segments – Arcade Operations Sales and profit down due to temporary store closures amidst pandemic, however same store sales showed signs of recovery 6 Months Business Results (100 million yen) 2018/9 2019/9 2020/9 2021/3 Plan Net sales 55 62 40 105 Operating income 7 9 -2 0 Operatin
Slide 12: 3-3. Business Segments – Amusement Equipments
3-3. Business Segments – Amusement Equipments Sales up from launch of new model Income overall on par YoY 6 Months Business Results (100 million yen) 2018/9 2019/9 2020/9 2021/3 Plan Net sales 22 2 13 45 Operating income -6 0 0 17 Operating margin - 27.8% 1.4% 37.8% 6 Months Highlights Pachisl
Slide 13: 3-4. Business Segments – Other Businesses
3-4. Business Segments – Other Businesses Licensing revenue down slightly due to impact of COVID-19 6 Months Business Results (100 million yen) 2018/9 2019/9 2020/9 2021/3 Plan Net sales 14 16 13 31 Character Contents 12 30 eSports 1 1 Operating income 6 7 5 7 Character Contents 8 19 eSports -3 -1
Slide 14: 4-1. Plans & Strategies – Digital Contents (1)
4-1. Business Segment Plans & Strategies – Digital Contents (1) Aiming for increased sales and profit due to contributions from major title releases and digital sales in the Consumer business Digital Contents Plan (100 million yen) 2019/3 2020/3 2021/3 Plan Difference Net sales 829 599 669 70 Brea
Slide 15: 4-1. Plans & Strategies – Digital Contents (2)
4-1. Business Segment Plans & Strategies – Digital Contents (2) Expect higher sales volume from increase in major new title launches and digital growth Consumer: FY3/21 Unit Sales Plan (units in thousands) 2018/3 2019/3 2020/3 2021/3 Plan New Titles (SKU) 50 61 35 14 Total unit sales 24,400 25,300
Slide 16: 4-1. Plans & Strategies – Digital Contents (3)
4-1. Business Segment Plans & Strategies – Digital Contents (3) Focus on sales expansion for new and catalog titles including Monster Hunter Rise Consumer: Second Half Strategy New major title Monster Hunter Rise scheduled for March 2021 release Next-generation system title Devil May Cry 5 Spe
Slide 17: 4-2. Plans & Strategies – Arcade Operations
4-2. Business Segment Plans & Strategies – Arcade Operations Continue to expand new format stores while taking COVID-19 prevention into account in operations Second Half Strategy Second showroom in Japan, Capcom Store Osaka, scheduled to open November Full-year plan: openings: 3; closings: 0 (
Slide 18: 4-3. Plans & Strategies – Amusement Equipments
4-3. Business Segment Plans & Strategies – Amusement Equipments Aim to achieve plan via launch of new model utilizing major IP Second Half Strategy Plan to release new Monster Hunter: World pachislo model in November Full-year plan: altogether 2 models, 18 thousand units FY3/21 Amusement Equ
Slide 19: 4-4. Plans & Strategies – Other Businesses
4-4. Business Segment Plans & Strategies – Other Businesses Strengthen brand value with film adaptations of IP Hold online tournaments worldwide in eSports, due to COVID-19 Character Contents: Second Half Strategies Theatrical release for Hollywood film adaptation of Monster Hunter begins overse
Slide 20: 5-1. Supplement: Summary of Major Financial Information
5-1. Supplement: Summary of Major Financial Information ●Profit and Loss Sheet （million yen） 2019/3 2020/3 2021/3 Plan % 2020/９ Net Sales 100,031 81,591 85,000 104.2% 42,059 Gross Profit 37,222 40,947 43,500 106.2% 25,193 Margin (%) 37.2% 50.2% 51.2% - 59.9% Sales and G&A Expenses 19,078 18,119 18,0
Slide 21: 5-2. Supplement: Our Major IP
5-2. Supplement: Our Major IP Capcom owns a wealth of brands originating from its games that boast worldwide popularity Cumulative Unit Sales and Examples of Brand Utilization • Resident Evil series: 105 million units • Monster Hunter series: 65 million units Announced Monster Hunter Rise Featured