Koei Tecmo Holdings Co., Ltd. · TSE:3635
Koei Tecmo — FY2017 Earnings Presentation
28 slides from Koei Tecmo's earnings presentation, May 30, 2018
Slide 1: Fiscal Year Ending March 2018 Financial Results
Fiscal Year Ending March 2018 Financial Results
Slide 2: Financial Summary (FY2017)
Financial Summary (FY2017) Record high profits were achieved! FY2016 FY2017 YoY Change Amount Ratio Amount Ratio Amount Rate of change Sales 37,034 100.0% 38,926 100.0% 1,892 5.1% Operating Profit 8,781 23.7% 11,711 30.1% 2,930 33.4% Ordinary Profit 15,221 11,711 41.1% 18,293 47.0% 3,072 20.3% Net I
Slide 3: Major Titles and Events (FY2017)
Major Titles and Events (FY2017) Development
Slide 4: Major Titles and Events (FY2017)
Major Titles and Events (FY2017)
Slide 5: Major Titles and Events (FY2017)
Major Titles and Events (FY2017) Development
Slide 6: Sales and Operating Profit by Business Segment (FY2017)
Sales and Operating Profit by Business Segment (FY2017) Entertainment Pachislot & Amusement Real Estate Others Subtotal Corporate & Total Pachinko Facilities Elimination Sales 35,389 945 1,536 784 584 39,240 313 38,926 Operating Profit 10,938 289 362 348 496 11,711 0 11,711 Entertainment Pachislot &
Slide 7: Net Sales by Region (FY2017)
Net Sales by Region (FY2017) FY2016 FY2017 YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 27,089 73.1% 26,000 66.8% △1,089 △4.0% Overseas 9,945 26.9% 12,926 33.2% 2,981 30.0% North America 4,411 11.9% 4,419 11.4% 8 0.2% Europe 2,159 5.8% 3,334 8.6% 1,175 54.4% Asia 3,375 9.1% 5,172
Slide 8: Net Sales by Region (FY2017)
Net Sales by Region (FY2017) FY2016 FY2017 YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 3,060 48.3% 2,250 31.1% △810 △26.5% Overseas 3,270 51.7% 4,990 68.9% 1,720 52.6% North America 1,320 20.9% 2,120 29.3% 800 60.6% Europe 880 13.9% 1,670 23.1% 790 89.8% Asia 1,070 16.9% 1,200 1
Slide 9: Consolidated Plan (Fiscal Year Ending March 31, 2019)
KOEI TECMO HOLDINGS CO., LTD. Consolidated Plan (Fiscal Year Ending March 31, 2019)
Slide 10: Financial Summary (Plan FY2018)
Financial Summary (Plan FY2018) FY2017 FY2018 YoY Change Amount Ratio Amount Ratio Amount Rate of change Sales 38,926 100.0% 41,000 100.0% 2,074 5.3% Operating Profit 11,711 30.1% 12,000 29.3% 289 2.5% Ordinary Profit 18,293 47.0% 17,500 42.7% 793 4.3% Net Income 13,017 33.4% 12,500 30.5% 517 4.0% F
Slide 11: Sales and Operating Profit by Business Segment (Plan FY2018)
Sales and Operating Profit by Business Segment (Plan FY2018) Entertainment Pachislot & Amusement Real Estate Others Subtotal Corporate & Total Pachinko Facilities Elimination Sales 37,200 1,500 1,500 800 150 41,150 150 41,000 Operating Profit 11,000 500 100 350 50 12,000 0 12,000 Entertainment Pachi
Slide 12: Net Sales by Region (Plan FY2018)
Net Sales by Region (Plan FY2018) FY2017 FY2018 YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 26,000 66.8% 27,500 67.1% 1,500 5.8% Overseas 12,926 33.2% 13,500 32.9% 574 4.4% North America 4,419 11.4% 5,000 12.2% 581 13.1% Europe 3,334 8.6% 3,700 9.0% 366 11.0% Asia 5,172 13.3% 4,
Slide 13: Sales Units by Region (Plan FY2018)
Sales Units by Region (Plan FY2018) FY2017 FY2018 YoY Change Amount Ratio Amount Ratio Amount Rate of change Japan 2,250 31.1% 2,300 31.5% 50 2.2% Overseas 4,990 68.9% 5,000 68.5% 10 0.2% North America 2,120 29.3% 2,250 30.8% 130 6.1% Europe 1,670 23.1% 1,850 25.3% 180 10.8% Asia 1,200 16.6% 900 12.
Slide 14: Capital Expenditure and Depreciation Expenses
Capital Expenditure and Depreciation Expenses (Plan FY2017) Capital Expenditure and Depreciation Expenses Capital Expenditure (real estate) 8,417 Capital Expenditure (development equipment, etc.) Depreciation Expenses 3,570 846 715 660 437 701 380 252 284
Slide 15: KOEI TECMO Group Management Policy
KOEI TECMO Group Management Policy
Slide 16: FY2017 Sales and Profit
FY2017 Sales Profit Sales Operating Profit Ordinary Profit Succeeded in reaching the highest profit record with the three-point approach of "Quality, Delivery, and Cost." Aim to further improve the growth rate and profitability in 2018.
Slide 17: Medium-term Management Plan (FY2018-FY2020)
Medium-term Management Plan(FY2018-FY2020) Sales Profit 3-year Mid-term Management Plan Sales Operating Profit Ordinary Profit NEW Minato Mirai Office More than 10% average annual increase Aim to increase sales and profit rates yearly by at least 10%, and achieve sales of 51 billion yen, operating p
Slide 18: Management Policy for FY2018
Management Policy for FY2018 1. Create and develop global IPs. 2. Effectively expand global business.
Slide 19: Create and develop global IPs
Management Policy FY2018 Create and develop global IPs. Multi-Platform Expansion into many genres Collaborative Tie-ins Efforts Animation Comics Toys Food service Movies Publishing Apparel Goods TV Local Global Expansion Music Food Community
Slide 20: Effectively expanding global business
Management Policy FY2018 Effectively expanding global business. 1. Reevaluate the roles of our global offices. 2. Cultivate personnel for global business expansion 3. Full-scale entry into Chinese market.
Slide 21: Change to the next generation of management
Change to the next generation of management KTG President Hisashi Koinuma will also take the position of KTHD Vice-President Implement our 3-year mid-term plan with the next generation of upper management. Speed up the transfer of power and management decisions. Strengthen the management structure a
Slide 22: Dividend Policy
Dividend Policy Payout Ratio of 50% or 50 Yen Per Stock (Pividend'st ¥en) Transition of dividend Fy2015 FY2016 FY2017 Plan FY2018
Slide 23: KOEI TECMO Group Management Policy Strategy
KOEI TECMO Group Management PolicyStrategy
Slide 24: Creation and development of global IPs
Creation and development of global IPs. Our original IP "Nioh" has achieved great success and sold more than 1.9 million copies globally. We aim to rapidly expand on this success on the large-scale U.S. and European markets. "Dynasty Warriors 9" has reached the same number of sales in Japan and Asia
Slide 25: Creation and development of global IPs
Creation and development of global IPs. Comparison of the Japan vs. Overseas sales rates of our titles Ml Overseas [ll Japan 100 (%) ROT yh nt —Aisareypcov imedbnetanse— In future, we also intend to engage in collaborations with leading overseas IPs. 1983 REMAKE KOI-021 Ga— “eet 12 All rights EYE /
Slide 26: Creation and development of global IPs
Creation and development of global IPs. Summary of smartphone game operations < Titles developed/managed by our company > Japan Overseas New title Japan New title < IP license titles > Overseas Overseas Increase in profits on multiple layers Earn additional profit by increasing the number of new sma
Slide 27: Effectively expanding global business
Effectively expanding global business. Reevaluate the roles of our global offices. Aim to strengthen global digital marketing, and maintain and improve global community activities. Cultivate global-oriented personnel. Train global producers and directors. Develop a 3-year plan for a full-scale expan
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