Koei Tecmo Holdings Co., Ltd. · TSE:3635
Koei Tecmo — H1 FY2019 Earnings Presentation
28 slides from Koei Tecmo's earnings presentation, Oct 25, 2019
Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 2020
Financial Results for the First Half of the Fiscal Year Ending March 2020 KOEI TECMO HOLDINGS CO., LTD. October 25, 2019 1 ©KOEI TECMO GAMES CO., LTD. All rights reserved.
Slide 2: Financial Summary
Financial Summary First Half Results (Million Yen) FY18 Results FY19 Results Vs Previous Year FY19 Plan Vs Plan Component Component Percent Component Percent Amount Amount Amount Amount Amount Ratio Ratio Change Ratio Change Sales 17,407 100.0% 16,564 100.0% △ 843 -4.8% 18,000 100.0% △ 1,436 -8.0% O
Slide 3: Major Titles (Console)
Major Titles (Console) April May June July August September *Launch dates in Japan Jul 4 Attack on Titan 2: Final Battle Jul 19 MARVEL ULTIMATE ALLIANCE 3: The Black Order Jul 26 Fire Emblem: Three Houses Sept 26 Atelier Ryza Continuous sale of Nioh Developer Developer PlayStation(R)4/Nintendo Switc
Slide 4: Major Titles (Online/Mobile & Events)
Major Titles(Online/Mobile & Events) April May June July August September Uncharted Waters VI 『三国志・战略版』 New Romance of the Three Kingdoms (Romance of the DISSIDIA FINAL FANTASY OPERA OMNIA Three Kingdoms Senryaku-ban(*)) DEAD OR ALIVE Xtreme Venus Vacation Licensing-out Licensing-out Developer/ Oper
Slide 5: Results by Business Segment
Results by Business Segment First Half Results (Million Yen) • Entertainment – In comparison with the previous year, whilst FY18 FY19 Change Online/Mobile sales had increased, sales for Console had decreased. Entertainment Sales 15,654 14,873 △ 781 – Expecting revenues from bigger titles scheduled t
Slide 6: Sales Amounts and Units Sold by Region
Sales Amounts and Units Sold by Region Sales: First Half Results (Million Yen) FY18 Component FY19 Component Vs Previous Year Percent • Sales by Region Amount Amount Amount – Ratio Ratio Change Japan 11,479 65.9% 10,750 64.9% △ 729 -6.4% Ratio of Overseas sales: 35.1% Overseas 5,928 34.1% 5,814 35.1
Slide 7: Breakdown on the Sales for Entertainment Business
Breakdown on the Sales for Entertainment Business First Half Results (Million Yen) FY18 FY19 Change % Change Console Package（*1） 7,044 5,553 △ 1,491 -21.2% Decrease in sales for packages, commission fees DL（*2） 2,330 2,450 120 5.2% DLC（*3） 680 970 290 42.6% DLC for DEAD OR ALI VE 6 10,054 8,973 △ 1,
Slide 8: Major Costs/ Number of Personnel
Major Costs/ Number of Personnel First Half Actuals (Million Yen/Headcount) FY18 FY19 Change % Change Employment COGS 5,410 5,685 275 5.1% Cost SGA 1,380 1,540 160 11.6% 6,790 7,225 435 6.4% Expansion in development structure Subcontracting COGS 1,480 1,900 420 28.4% Increase in upfront investment C
Slide 9: Consolidated Plan for the Fiscal Year Ending March 31, 2020 (FY2019)
Consolidated Plan for the Fiscal Year Ending March 31, 2020 (FY2019) 9 ©KOEI TECMO GAMES CO., LTD. All rights reserved.
Slide 10: Summary of the FY2019 Plan
Summary of the FY2019 Plan Full-Year Plan (Million Yen) FY18 Results FY19 Plan Vs Previous Year Component Component Percent Amount Amount Amount Ratio Ratio Change Sales 38,968 100.0% 43,000 100.0% 4,032 10.3% Operating Profit 12,092 31.0% 12,000 27.9% △ 92 -0.8% Ordinary Profit 18,307 47.0% 16,000
Slide 11: Plan by Business Segment
Plan by Business Segment Full-Year Plan (Million Yen) • Entertainment FY19 FY18 Change – Big titles for Console are scheduled to launch in (Plan) the second half. Entertainment Sales 35,120 39,040 3,920 – A new title for Mobile is scheduled to be Operating Profit 11,078 11,130 52 released in the sec
Slide 12: Plan for Sales Amounts and Units Sold by Region
Plan for Sales Amounts and Units Sold by Region Sales: Full-Year Plan (Million Yen) FY18 FY19 (Plan) Vs Previous Year Component Component Percent Amount Amount Amount Japan 26,541 Ratio 68.1% 26,900 Ratio 62.6% 359 Change 1.4% • Sales by Region Overseas 12,427 31.9% 16,100 37.4% 3,673 29.6% – Planne
Slide 13: Investment/Depreciation Cost Plan
Investment/Depreciation Cost Plan Full-Year Plan (Million Yen) FY16 FY17 FY18 FY19 • Investment (Plan) – Expecting Expenditure for the remaining balance Investment Real Estate 8,417 3,570 0 13,866 for Minato-Mirai Office/Music Hall. Equipment 252 284 240 460 Depreciation Cost 715 701 738 830 • Depre
Slide 14: Management Policy and Strategy
Management Policy and Strategy KOEI TECMO HOLDINGS CO., LTD. President & CEO (Representative Director) Yoichi Erikawa 14 ©KOEI TECMO GAMES CO., LTD. All rights reserved.
Slide 15: Mid-Term Management Plan (FY2018-FY2020)
Mid-Term Management Plan (FY2018-FY2020) Sales 3-year Mid-Term Management Plan Profit • Aim to achieve sales of 51 billion yens, operating （Billion Yen） （Billion Yen） 60 30 profit of 17 billion yens, and ordinary profit of 21 Jan. 2020 billion yens in FY2020 through: New Minato-Mirai Office 51 – a C
Slide 16: Management Policy FY2020
Management Policy FY2020 1. Create and develop global IPs 2. Effectively expand global business Minato-mirai Office (scheduled to be completed in Jan. 2020) ©KOEI TECMO GAMES CO., LTD. All rights reserved. 16
Slide 17: Global IPs
Management Policy FY2020 Create and develop global IPs Multi-Platform Expansions into many genres Tie-ins Global Collaborative IPs Efforts Animation Comics Toys Food Service Movies Publishing Apparel Goods TV Global Expansions Local Music Food Community ©KOEI TECMO GAMES CO., LTD. All rights reserve
Slide 18: Our Strengths
Our Strengths Leading Powers for Development, Technology, and Project Management Recent Examples • Creation of new IPs • Success of Nioh • Strength in creation of playability • High scores on Metacritic(*) Power of (Action/Simulation/RPG) • Success of Romance of the Three Kingdoms IP Development • O
Slide 19: Our Strengths: Multi-tiered Revenue Structure
Our Strengths Multi-tiered Revenue Structure • Multi-tiered Revenue Structure – Positive growth cycle: Creation of New IPs Grow into Series Collaboration – Licensing-out of IPs as a new source of revenue • Creation of New IPs New Titles – Success of Nioh – Creation of a title with sales of 5 mil
Slide 20: Future Business Deployment
Future Business Deployment KOEI TECMO HOLDINGS CO., LTD. Executive Vice President (Representative Director) Hisashi Koinuma KOEI TECMO GAMES CO., LTD. President & CEO (Representative Director) 20 ©KOEI TECMO GAMES CO., LTD. All rights reserved.
Slide 21: Review on the First Half of 2019
Review on the First Half of 2019 Overview ・ Steadily progressing toward the achievement of the targets for the Mid-term Management Plan ・ Although some titles in the first half did not meet the target, no influence to the full-year plan Console ・ Strong sales for Atelier Ryza: Ever Darkness & the Se
Slide 22: Title Lineup (Console)
Title Lineup (Console) • Warriors Orochi 4 Ultimate – Upgraded version of Warriors Orochi 4 launched and sold more than 700K copies last year • Romance of the Three Kingdoms XIV – The latest addition to the series of our simulation game which reenacts the Romance of the Three PlayStation(R)4/Nintend
Slide 23: Title Lineup (Console)
Title Lineup (Console) Developer • Persona 5 Scramble: The Phantom Strikers – Atlus and Koei Tecmo Games are teaming up to bring the first action RPG game ever in the Persona series – Schedule to launch on Feb 20 2020! (in Japan) PlayStation(R)4/Nintendo SwitchTM Persona 5 Scramble: the Phantom Stri
Slide 24: Title Lineup (Online/Mobile/Cloud)
Title Lineup (Online/Mobile/Cloud) End of 19/9 iOS/Android Sangokushi: Heroes(*) Scheduled to be released in Fall 2019 Sangokushi: Heroes(*) ・Forming a capital & business alliance New with HEROZ (known for AI New Title development) to develop the title Collaboration DISSIDIA FINAL FANTASY OPERA OMNI
Slide 25: Title Lineup (Online/Mobile/Cloud)
Title Lineup (Online/Mobile/Cloud) • Sales for Online/Mobile for the first half of this year （Million yen） Sales Transition of Online/Mobile by Quarter 3,500 had remained steady on QoQ basis, though have increased comparing to last year. Royalty income 3,000 from New Romance of the Three Kingdoms ha
Slide 26: The Effect of Upfront Investment
The Effect of Upfront Investment （Million yen） 25,000 • First of all: we record our costs on accrual basis Profit from the titles launched in the year – No recording as WIP on BS 20,000 Upfront Investment • Increase in upfront investment Operating Profit – Upfront investment* has increased as our ti
Slide 27: Progress of Mid-Term Plan
Progress of Mid-Term Plan Console title with sales of 5 million ・Development is in good progress ・AAA title targeting the global market ・Oriental worldview as Koei Tecmo is well- known for ・Games full of originality making the best use of each brand’s unique characteristics Mobile title which genera
Slide 28: KOEI TECMO HOLDINGS CO., LTD.
KOEI TECMO HOLDINGS CO., LTD. This document contains statements regarding future objectives, beliefs and current expectations of KOEI TECMO HOLDINGS CO., LTD. with respect to its financial results. Such statements imply risks and uncertainties and no guarantee of future performance. *The Other compa
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