Koei Tecmo Holdings Co., Ltd. · TSE:3635
Koei Tecmo — Tecmo Koei Holdings — FY2010 Earnings Presentation
34 slides from Koei Tecmo's earnings presentation, May 18, 2011
Slide 1: Fiscal Year Ended March 2011 Financial Results
TECMO KOEI HOLDINGS CO., LTD. Fiscal Year Ended March 2011 Financial Results
Slide 2: Financial Summary (FY 2010)
Financial Summary (FY 2010) （Units：Millions of Yen） FY 2009 FY 2010 YoY Change Amount Ratio Amount Ratio Amount Ratio Sales 34,502 100.0% 32,081 100.0% (2,421) (7.0%) Operating 641 1.9% 3,305 10.3% 2,664 415.5% Profit Ordinary 3,023 8.8% 4,788 14.9% 1,765 58.4% Profit Net Income 2,604 7.5% 2,741 8.5
Slide 3: Major Titles and Events (FY 2010)
Major Titles and Events (FY 2010) 3
Slide 4: Sales and Operating Profit by Business Segment (FY 2010)
Sales and Operating Profit by Business Segment (FY 2010) FY2010 （Units：Millions of Yen） Game Online & Media & Pachislot & Amusement Corporate & Consolidated Others Total Software Mobile Rights Pachinko Facilities Elimination Total Sales 21,594 4,610 1,483 1,896 2,972 278 32,835 (753) 32,081 Operatin
Slide 5: Net Sales by Region (FY 2010)
Net Sales by Region (FY 2010) （Units：Milllions of Yen） FY 2009 FY 2010 YoY Change Area Amount Ratio Amount Ratio Amount Ratio Japan 29,068 84.2% 27,563 85.9% (1,505) (5.2%) Overseas 5,433 15.8% 4,518 14.1% (915) (16.8%) North America 3,046 8.9% 2,500 7.8% (546) (17.9%) Europe 1,515 4.4% 1,498 4.7% (
Slide 6: Sales Units by Region (FY 2010)
Sales Units by Region (FY 2010) FY 2009 FY 2010 YoY Change Area Units Ratio Units Ratio Units Ratio Japan 3,631 62.9% 3,350 58.2% (281) (7.7%) Overseas 2,142 37.1% 2,410 41.8% 268 12.5% North America 1,260 21.8% 1,395 24.2% 135 10.7% Europe 608 10.5% 860 14.9% 252 41.4% Asia 274 4.7% 155 2.7% (119)
Slide 7: Major Expenses, Capital Expenditure and Depreciation Expenses (FY 2010)
Major Expenses, Capital Expenditure and Depreciation Expenses (FY 2010) Capital Expenditure and Major Expenses Depreciation Expenses (Millions of Yen) （％） (Millions of Yen) Advertising & Promotion Depreciation Expenses 8,000 Amount Paid to Subcontractors 20.0% 2,000 Capital Expenditure Ratio to Net
Slide 8: Consolidated Plan (Fiscal Year Ending March 31, 2012)
TECMO KOEI HOLDINGS CO.,LTD. Consolidated Plan (Fiscal Year Ending March 31, 2012) 8
Slide 9: Financial Summary (Plan FY 2011)
Financial Summary (Plan FY 2011) （Units：Millions of Yen） FY2010 FY2011(Plan) YoY Change Amount Ratio Amount Ratio Amount Ratio Sales 32,081 100.0% 35,000 100.0% 2,919 9.1% Operating 3,305 10.3% 5,000 14.3% 1,695 51.3% Profit Ordinary 4,788 14.9% 6,500 18.6% 1,712 35.8% Profit Net Income 2,741 8.5% 3
Slide 10: Sales and Operating Profit by Business Segment (Plan FY 2011)
Sales and Operating Profit by Business Segment (Plan FY 2011) FY 2011(Plan) （Units：Millions of Yen） Game Online & Media & Pachislot & Amusement Corporate & Consolidated Others Total Software Mobile Rights Pachinko Facilities Elimination Total Sales 21,700 7,300 2,300 1,800 1,800 100 35,000 0 35,000
Slide 11: Net Sales by Region (Plan FY 2011)
Net Sales by Region (Plan FY 2011) （Units：Millions of Yen） FY 2010 FY 2011(Plan) YoY Change Area Amount Ratio Amount Ratio Amount Ratio Japan 27,563 85.8% 29,500 84.3% 1,937 7.0% Overseas 4,518 14.2% 5,500 15.7% 982 21.7% North America 2,500 7.9% 3,500 10.0% 1,000 40.0% Europe 1,498 4.7% 1,500 4.3%
Slide 12: Sales Units by Region (Plan FY 2011)
Sales Units by Region (Plan FY 2011) （Thousands of Units） FY 2010 FY 2011(Plan) YoY Change Area Units Ratio Units Ratio Units Ratio Japan 3,350 58.2% 4,000 68.4% 650 19.4% Overseas 2,410 41.8% 1,850 31.6% (560) (23.2%) North America 1,395 24.2% 1,000 17.1% (395) (28.3%) Europe 860 14.9% 750 12.8% (1
Slide 13: Major Expenses, Capital Expenditure and Depreciation Expenses (Plan FY 2011)
Major Expenses, Capital Expenditure and Depreciation Expenses (Plan FY 2011) Capital Expenditure & Major Expenses （％） Depreciation Expenses （Millions of Yen） （Millions of Yen） 8,000 20.0% 2,000 Advertising & Promotion Expenses Depreciation Expenses Amount Paid to Subcontractors Ratio to Net Sales Ca
Slide 14: Koei Tecmo Group Management Policy and Strategy
Koei Tecmo Group Management Policy and Strategy 14
Slide 15: Ethos & Vision
Ethos & Vision Ethos Creativity & Contribution Enrich the minds and lives of people worldwide by creating unique entertainment. Vision To become the World’s Number 1 Entertainment Content Provider 15
Slide 16: Management Principles
Management Principles ① Provide the most emotionally moving experiences to customers ② Contribute to the global community ③ Operate as a vibrant, energetic company ④ Maximize shareholder value 16
Slide 17: Management Strategy
Management Strategy ① Content Creation Create new and innovative entertainment ② Content Expansion Develop content for use in multiple markets ③ Globalization Promote globalization ④ Portfolio Management Optimize business resource allocation 17
Slide 18: Management Policy for FY 2011: Achieving Growth and Profitability
Management Policy for FY 2011 Achieving Growth and Profitability 18
Slide 19: Group Consolidated Sales & Profit Plan for FY 2011
Group Consolidated Sales & Profit Plan for FY 2011 （Units：Millions of Yen） FY 2010 FY 2011(Plan) YoY Change Amount Ratio Amount Ratio Amount Ratio Sales 32,081 100.0% 35,000 100.0% 2,919 9.1% Operating Profit 3,305 10.3% 5,000 14.3% 1,695 51.3% Ordinary Profit 4,788 14.9% 6,500 18.6% 1,712 35.8% Net
Slide 20: Achieving Growth
Achieving Growth ① Aim to double growth in the social gaming sector ② Support new platforms with packaged games Creation of further growth through the synergy of social and packaged games 20
Slide 21: Doubling growth in the social gaming sector: Strengths
① Doubling growth in the social gaming sector （1） Tecmo Koei’s strengths in the social gaming market ● Well-known IPs（DYNASTY WARRIORS, SAMURAI WARRIORS, NINJA GAIDEN, DEAD OR ALIVE etc） , brand of Koei and Tecmo bring awareness and reliable play to the customer ● Skills in creating, maintaining and
Slide 22: Titles based on well-known IPs for release
① Doubling growth in the social gaming sector （2） Titles based on well-known IPs for release ● Dynasty Warriors ● Monster Rancher ● Nobunyaga no Yabou ● Love Love Tenshisama Angelique ※All English names above are tentative. 22
Slide 23: Social game release schedule
① Doubling growth in the social gaming sector （2） Titles based on well-known IPs for release Release schedule Mobile Browser Smartphone 2010/08 2011/01 Nobunaga's Ambition - Mobage Yahoo!Mobage 2010/10 2011/01 Romance of The Three Kingdoms - GREE GREE 2011/01 2011 Spring Monster Rancher - Mobage Mob
Slide 24: Global social game strategy
① Doubling growth in the social gaming sector （3） Global social game strategy ● Actively target developing smartphone market ● Enter overseas market with Facebook titles ● International expansion and networking of our own SNS “my GAMECITY” ● Synergy among social, online and packaged games ● Shift gr
Slide 25: Global social game strategy (continued)
① Doubling growth in the social gaming sector （3） Global social game strategy ● Active expansion of social games for China, Southeast Asia, North America and Europe ● Strengthening of relationships with providers such as DeNA and GREE 25
Slide 26: Supporting new platforms with packaged games
② Supporting new platforms with packaged games Packaged game market trends (Japan) New Platform 3DS NGP 2008 2009 2010 2011 Source：2009-2010:fism.net 2011:Estimate Though the realities of the domestic market are harsh, the arrival of a new platform in 2011 has 26 begun to turn things around
Slide 27: Supporting new platforms with packaged games: actions
② Supporting new platforms with packaged games ● Actively support new platforms ● Promote collaborative titles ● Strengthen marketing for overseas titles ● Expand social elements as well as synergy between packaged and social games Achieve positive growth with effective release of new titles into th
Slide 28: Achieving Profitability
Achieving Profitability ① Enhancement of series titles ② Creation of group synergy ③ Continuing cost reduction 28
Slide 29: Enhancement of series titles
① Enhancement of series titles ● Expansion of titles based on Koei and Tecmo IPs ● Enhancement of resource allocation to highly profitable titles ● Support new platforms 29
Slide 30: Creation of group synergy
② Creation of group synergy In the two years since business integration, the corporate structure has been streamlined and efficiency increased From now on, our priorities will lie with increasing group synergy at an individual product level From a “defensive” attitude to an “aggressive” one 30
Slide 31: Continuing cost reduction
③ Continuing cost reduction Major Expenses Labor Cost Advertising & Promotion Expenses Amount Paid to Subcontractors Ratio to Net Sales （Millions of Yen） （％） 20,000 49% 50% 42% 41% 39% 2,099 40% 15,000 2,280 1,130 3,996 1,130 3,160 3,300 30% 2,560 10,000 20% 5,000 10,250 10,670 9,800 10,000 10% 0 0%
Slide 32: Toward high growth and profitability
Toward high growth and profitability ● Growth of packaged and social games, based on the foundation of established IPs and game development know-how ● Aim to achieve high profitability - an ordinary profit ratio of over 20% 32
Slide 33: Toward high growth and profitability
Toward high growth and profitability Ordinary profit ratio 35% Sales・Operating Profit・Ordinary Profit comparison 30% 25% 20% 15% Sales 10% Ordinary profit ratio Operating Profit (Millions of Yen) (Millions of Yen) Sales 50,000 Ordinary Profit 20,000 Operating Profit Ordinary Profit 40,000 15,000 30,
Slide 34: Forward-looking statements notice
This document contains statements regarding future objectives, beliefs and current expectations of TECMO KOEI HOLDINGS CO.,LTD. with respect to its financial results. Such statements imply risks and uncertainties and no guarantee of future performance. 34