Capcom Co., Ltd. · TSE:9697

Capcom — Q1 FY2021 Earnings Presentation

15 slides from Capcom's earnings presentation, 2020

  1. Slide 1: Capcom Co., Ltd. 1st Quarter Report, Fiscal year ending March 31, 2021

    Capcom Co., Ltd. (Tokyo Stock Exchange, First Section, 9697) 1st Quarter Report Fiscal year ending March 31, 2021 Capcom Public Relations & Investor Relations Section Capcom Public Relations & Investor Relations Section 0

  2. Slide 2: Major Takeaways

    Major Takeaways  Regarding Q1 Results • Digital sales, including major new titles, contributed to YoY sales and profit growth • Followed regulatory directives to temporarily close stores in our Arcade Operations business to prevent spread of COVID-19 • In general, implemented WFH policy during the

  3. Slide 3: Contents page / Forward-looking Statements

    Contents page 1. Forecasts for FY3/21 3 2. Q1 Financial Highlights 4 3. Business Segments 7 4. Supplement 13 Summary of Major Financial Information / Our Major IP Forward-looking Statements Strategies, plans, outlooks and other statements that are not historical facts are based on assumptions that u

  4. Slide 4: 1. Forecasts for FY3/21

    1. Forecasts for FY3/21 Targeting eight consecutive years of OP growth and highest profit in company history, driven by Digital Contents business (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

  5. Slide 5: 2-1. Q1 Financial Highlights – Consolidated Business Results (1)

    2-1. Q1 Financial Highlights – Consolidated Business Results (1)  3 Months Results in FY6/19 vs. FY6/20 (million yen) 2019/6 2020/6 Difference Net sales 17,938 23,722 5,784 Operating income 7,703 10,711 3,008 Ordinary income 7,699 10,619 2,920 Net income attributable to owners of the parent 5,420 7

  6. Slide 6: 2-1. Q1 Financial Highlights – Consolidated Business Results (2)

    2-1. Q1 Financial Highlights – Consolidated Business Results (2)  FY6/20 Net Sales/Operating Income (by segment) (million yen) 2019/6 2020/6 Difference 2021/3 Plan Net sales 17,938 23,722 5,784 85,000 Digital Contents 13,977 21,476 7,499 66,900 Arcade Operations 2,710 1,184 -1,526 10,500 Amusement

  7. Slide 7: 2-2. Q1 Financial Highlights – Financial Position

    2-2. Q1 Financial Highlights – Financial Position  FY6/20 Balance Sheet/Statement of Cashflows (Summary) Balance Sheet (million yen) Statement of Cashflows (million yen) Assets 2020/3 2020/6 Difference 2019/6 2020/6 Difference Current Assets 108,829 104,139 -4,690 Cash flows from operating activiti

  8. Slide 8: 3-1. Business Segments – Digital Contents (1)

    3-1. Business Segments – Digital Contents (1) Sales and profit up due to major new Consumer title and digital sales growth  Digital Contents Performance (100 million yen) 2018/6 2019/6 2020/6 2021/3 Plan Net sales 137 139 214 669 Breakdown Package 61 33 60 159 Digital (incl. digital license) 60 101

  9. Slide 9: 3-1. Business Segments – Digital Contents (2)

    3-1. Business Segments – Digital Contents (2) Digital sales of major titles and catalog titles drove results Major increase of unit sales YoY  Unit Sales for the 3 Months (Consumer) (units in thousands) 2018/6 2019/6 2020/6 2021/3 Plan New Titles (SKU) 14 7 6 13 Total unit sales 4,350 4,350 9,200 2

  10. Slide 10: 3-1. Business Segments – Digital Contents (3)

    3-1. Business Segments – Digital Contents (3) Bolstered pipeline with new title release Leveraged major brands to strengthen catalog sales  3 Months Highlights (Consumer)  Resident Evil 3 exceeds cumulative 2.7 million units sold  Resident Evil series surpasses cumulative worldwide 100- million-s

  11. Slide 11: 3-2. Business Segments – Arcade Operations

    3-2. Business Segments – Arcade Operations Sales down due to temporary closure of stores amid COVID-19 pandemic  3 Months Business Results (100 million yen) 2018/6 2019/6 2020/6 2021/3 Plan Net sales 23 27 11 105 Operating income 1 2 -5 0 Operating margin 6.0% 11.0% - 0.0% Same store sales -2% +13%

  12. Slide 12: 3-3. Business Segments – Amusement Equipments

    3-3. Business Segments – Amusement Equipments Continued development of machines designed to current regulations  3 Months Business Results (100 million yen) 2018/6 2019/6 2020/6 2021/3 Plan Net sales 3 2 1 45 Operating income -1 1 0 17 Operating margin - 59.1% 39.2% 37.8%  3 Months Highlights  No

  13. Slide 13: 3-4. Business Segments – Other Businesses

    3-4. Business Segments – Other Businesses eSports holding global online events in order to avoid the spread of COVID-19  3 Months Business Results (100 million yen) 2018/6 2019/6 2020/6 2021/3 Plan Net sales 6 10 8 31 Character Contents 8 30 eSports 0 1 Operating income 4 6 5 7 Character Contents 6

  14. Slide 14: 4-1. Supplement: Summary of Major Financial Information

    4-1. Supplement: Summary of Major Financial Information ●Profit and Loss Sheet （million yen） 2019/3 2020/3 2021/3 Plan % 2020/6 Net Sales 100,031 81,591 85,000 104.2% 23,722 Gross Profit 37,222 40,947 43,500 106.2% 14,624 Margin (%) 37.2% 50.2% 51.2% - 61.6% Sales and G&A Expenses 19,078 18,119 18,0

  15. Slide 15: 4-2. Supplement: Our Major IP

    4-2. Supplement: Our Major IP Capcom owns a wealth of globally popular brands originating from its games  Cumulative Unit Sales and Examples of Brand Utilization • R esident Evil series: 103 million units • M onster Hunter series: 64 million units Launched Resident Evil 3 to Monster Hunter World: I

Capcom — Q1 FY2021 Earnings Presentation on 6ix