Koei Tecmo Holdings Co., Ltd. · TSE:3635
Koei Tecmo — H1 FY2013 Earnings Presentation
33 slides from Koei Tecmo's earnings presentation, Nov 7, 2012
Slide 1: Fiscal Year Ending March 2013 1st Half Financial Results
® TECMO KOEI HOLDIGS Co.,LTD. Fiscal Year Ending March 2013 1st Half Finacial Results
Slide 2: Financial Summary (FY2012 1st Half)
Financial Summary (FY2012 1°‘ Half) (Units:Millions of Yen) Term ended Sep. 2011 Term ended Sep. 2012 YoY Change Amount Ratio Amount Ratio Amount Ratio Sales 13,635 100.0% 13,724 100.0% 89 0.7% Operaiats 712 5.2% 897 6.5% 185 26.0% Profit pie 862 6.3% 1,225 8.9% 363 42.1% Net Income 412 3.0% 554 4.0
Slide 3: Major Titles and Events (FY2012 1st Half)
Major Titles and Events (FY2012 1% Half) perp or nuve & Artelior Avesht @ REOAMOMSH+ oe ASSIST nd Age ‘Spe Online ONLINE GAME Sng pegigeg ad Uncharted Waters SOCIAL GAME peak DEAD OR ALIVE 5 Atelier Ayesha Online 2nd Age Hyakuman nin no Musou OROCHI Neo Egeance Evert 580,000 units 120,000 units Impl
Slide 4: Sales and Operating Profit by Business Segment
st Sales and Operating Profit by Business Segment Term ended Sep.2012 (Uitte ate) software “Mobile, ants’ "Pachinko “Pacitities | Others Total Fon ration eed Sales 3820 2,365 618 1.20 1,010 110 14,046 Aanil 13,724 pss i il eed ae ph is 1,501 Ka rofit | | | | | | | Term ended Sep.2011 sisson a adaall
Slide 5: Net Sales by Region (FY2012 1st Half)
Net Sales by Region (FY2012 1* Half) Net Sales by Region (Units: Millions of Yen) Term ended Sep. 2011 Term ended Sep. 2012 YoY Change Area Amount Ratio Amount —_Ratio Amount Ratio Japan 11,815 86.7% 10,849 79.1% A\966 A8.2% Grae a 1,820 13.3% 2,875 20.9% 1,055 58.0% North America 831 6.1% 1,443 10.
Slide 6: Sales Units by Region (FY2012 1st Half)
Sales Units by Region (FY2012 1*t Half) Sales Units by Region (Thousands of Units) Term ended Sep. 2011 Term ended Sep. 2012 YoY Change Area Amount | Ratio Amount Ratio Amount Ratio Japan 1,610 68.2% 1,230 41.0% A\380 A23.6% veri 7 750 - 31.8% 1,770 59.0% 1,020 136.0% North America 280 11.9% 990 33.
Slide 7: Major Expenses, Capital Expenditure, Depreciation Expenses (FY2012 1st Half)
Major Expenses,Capital Expenditu e Depreciation Expenses(FY2012 1°t Ha! Capital Expenditure and Expenses to Sales Ratio Depreciation Expenses (%) (Millions of Yen) ad 0 800 - —@ coG §) Depreciation Expenses 70 , % —& SG&A > Capital Expenditure 60 L 68.2% 69.0% ot i 50 L Increased 0.8 points 40 L 400
Slide 8: Consolidated Plan (Fiscal Year Ending March 31, 2013)
TECMO KOEI HOLDINGS Co., LTD Consolidated Plan (Fiscal Year Ending March 31, 2013)
Slide 9: Financial Summary (Plan FY2012)
Financial Summary (Plan FY2012) (Units:Millions of Yen) FY2011 FY2012(Plan) YoY Change Amount Ratio Amount Ratio Amount Ratio Sales 35,525 100.0% 39,000 100.0% 3,475 9.8% piste 5,758 16.2% 7,000 17.9% 1,242 21.6% ag Sree 7,472 21.0% 8,300 21.3% 828 11.1% Net Income 4,640 13.1% 5,000 12.8% 360 7.7% I
Slide 10: Sales and Operating Profit by Business Segment
Sales and Operating Profit by Business Segment Plan FY2012 z FY201 2(Plan) (Units:Millions of Yen) Game, pling Malin Myce Amusement Ons Taal pare Comal Sales 26,000 6,750 2400 1,900 1,900 250 39,200 A200, 39,000 bi ae 5700 1400 35000170 80 8,300 -A1,300 7,000 rofit | | | | | FY20 1 1 (Units: Million
Slide 11: Net Sales by Region (Plan FY2012)
Net Sales by Region (Plan FY2012) Net Sales by Region (Units:Millions of Yen) FY2011 FY2012 YoY Change Area Amount Ratio Amount Ratio Amount Ratio Sapiin 29,918 84.2% 32,200 82.6% 2,282 1.6% Overseas 5,606 _ 15.8% 6,800 17.4% 1,194 21.3% North America 2,784 7.8% 3,400 8.7% 616 22.1% Europe 1,356 3.8
Slide 12: Sales Units by Region (Plan FY2012)
Sales Units by Region (Plan FY2012) Sales Units by Region (Thousands of Units) FY2011 FY2012 YoY Change Area Amount Ratio Amount Ratio Amount Ratio Japan 4,100 66.9% 3,950 60.8% A150 A3.7™% Overseas 2,030 as 33.1% 2,550 39.2% 520 _ 25.6% North America 950 15.5% 1,250 19.2% 300 31.6% Europe 730 11.9%
Slide 13: Major Expenses, Capital Expenditure, Depreciation Expenses (Plan FY2012)
Major Expenses,Capital Expendit Depreciation Expenses(Plan FY2012) | Capital Expenditure & Expenses to Sales Ratio Depreciation Expenses (%) (Millions of Yen) sor —@ coc 2,500 - ifs| Depreciation Expenses —H SG&A ' Capital Expenditure 70 2,043 (a eee 2,000 60 F 62.0% 61.5% 50 F 2 Improved 0.5 points
Slide 14: Management Policy and Future Business Deployment
Management Policy and Future Business Deployment
Slide 15: Management Policy for FY2012
Management Policy for FY2012 = Achieving further Growth and Profitability 1S
Slide 16: Plan to realize growth
Plan to realize growth (DExtension of series titles and challenge new title (2)Expansion of collaboration business (3)Support for new platform @©TECMO KOEI GAMES CO., LTD. All rights resei
Slide 17: (1) Extension of series titles and challenge new title
(1) Extension of series titles and challenge new title
Slide 18: (1) Extension of series titles and challenge new title
(1) Extension of series titles and challenge new title a | @ Original new title from @-force, developers of the Dynasty Warriors sereies © Scheduled for release in 2013 for PS Vita and PSP TOUKIDEN 18 @©TECMO KOEI GAMES CO., LTD. All rights reserved.
Slide 19: (1) Extension of series titles and challenge new title
(1D) Extension of series titles and challenge new title @ “Geten no Hana” Original new title from Ruby Party, developers of the Neoromance series @ Scheduled for release in 2013 for PSP (English name is tentative.) :" & , Character Design/Hayate Kuku ©TECMO KOEI GAMES CO., =the 4a
Slide 20: (2) Expansion of collaboration business
(2)Expansion of collaboration business @ “Fist of the North Star:Ken’s Rage 2” Following a 3 year wait,a sequel to the popular collaborative title e PS3/Xbox 360/Wii U ©1983 Buronson & Tetsuo Hara / North Stars Pictures Inc., Approved number KOI-021 ©TECMO KOE! GAMES CO., LTD. All rights reserved.
Slide 21: (2) Expansion of collaboration business
(2)Expansion of collaboration business MUL GAUDEN B @ Collaboration between Keiji Inafune and Team NINJA ©KOEI TECMO GAMES CO., LTD. All rights reserved. Co-developed by comcept Inc. Spark Unlimited.
Slide 22: (3) Support for new platform titles announced for Wii U
(3)Support for new platform 4 titles announced for Wii U (2 to be Wii U launch titles) eNINJA GAIDEN 3: Razor’s Edge (Dec.8) e WARRIORS OROCHI 3 Hyper (Dec.8) eRomance of the Three Kingdoms 12 (Dec.13) eFist of the North Star: Ken’s Rage 2 (2013 Spring) (Japan schedule quoted. English name is tentat
Slide 23: Plan to realize profitability
Plan to realize profitability (Maximize profitability through the selection of and focus on each business area (Expansion of new business and strengthen synergy (3)Further cost reductions oF 7) te, hootet ryereys hae ©GUST CO.,LTD.2012 All rights reserved.
Slide 24: Maximize profitability through selection and focus on each business area
(Maximize profitability through the selection of and focus on each business area Social games e Focus on high profitability projects, such as “Hyakuman nin no Nobunaga no Yabou” and “Hyakuman nin no Winning Post” e Review low profitability projects and discontinue some titles =p Shift resources to h
Slide 25: (2) Expansion of new business and strengthen synergy
(2)Expansion of new business and strengthen synergy e Strengthen download business Sales of downloadable content, including “NINJA GAIDEN 3”, 300 million yen e Synergy with Gust Held first official Gust event, “Gust Gara~Atelier Series & Ciel nosurge”
Slide 26: (3) Further cost reductions
(3)Further cost reductions (%) Expenses to Sales Ratio —@ coG —H SG&A Compare with FY2009 Improved 7.3 points Fe ee Compare with FY2009 Improved 8.9 points lat ree et 25.7% 21.8% 20.5% lL i] j j FY2009 FY2010 FY2011 FY2012(Plan) 26
Slide 27: Expansion of social games
Expansion of social games e New dimensions on smartphone Shin Sangoku Musou SLASH Hyakuman nin no NINJA GAIDEN (English name is tentative.)
Slide 28: Expansion of social games
Expansion of social games e Collaborations also in social games “Hyakuman nin no Musou OROCHI” : Over 100,000 users in 3weeks after launched! gumi Inc. participates in development! New collaborative title planned for release! >) ak ioFeqyo KOEI cuted AS Hevelo)
Slide 29: Expansion of social games
Expansion of social games e Global expansion of social games North America : “SAMURAI CATS” (Japanese name “Nobunyaga no Yabou”) (Launch Oct.2012) Taiwan : “Fi Bs AMY =a Special” Japanese name “Hyakuman nin no Sangokushi Specialy Launch Nov.2012 = Ls tse 0 « 5 TECMO KOEMGAMES CO.,LTD. All ri > \ \\
Slide 30: Market on an upturn! Realize further growth
Market on an upturn! Realize further growth Home video games market in Japan Game content market in Japan (FY: Apr. to Mar.) (CY:Jan. to Dec.) (Billions of Yen) (Billions of Yen) eas 6,000 F om | el a | a 4,000 | is Be 1,000 [ ie L 3,000 | : ; 2,000 |- ' 500 |. ; . 1,000 |- ‘ ; 0 7 f i 1 0 1 1 1 : :
Slide 31: Social games / Online games
Social games Vv (Worldwide) J@ © — 3 Online games ” ~ (Worldwide) ® c=, e e 41983 2013 > @ Next year “Nobunaga’s Ambition” is 30th anniversary @ Back to basics, growing the business by utilizing stong IP! © 2012 Pokémon. ©1995-2012 Nintendo/Creatures Inc./GAME FREAK inc. ©TECMO KOEI GAMES CO., LTD.
Slide 32: Sales/Operating Profit/Ordinary Profit Ratio
ez) pe] = 19") wn 30 F Sales/Operating Profit/Ordinary Profit Ratio (Millions of Yen) 50,000 [- 10,000 Hl Sales §)) Operating Profit > Ordinary Profit y; 40,000 |- 30,000 | | 10,000 20,000 |- — | (Millions of Yen 7 20,00 + 15,000 1 0 FY2009 FY2010 FY2011 FY2012(Plan) Aim to prompty achieving higher
Slide 33: 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.
Koei Tecmo Holdings — H1 FY2013 Earnings Presentation on 6ix