Capcom Co., Ltd. · TSE:9697

Capcom — Q3 FY3/19 Earnings Presentation

19 slides from Capcom's earnings presentation, February 2019

  1. Slide 1: Capcom Co., Ltd. 3rd Quarter Report, Fiscal year ending March 31, 2019

    Capcom Co., Ltd. (Tokyo Stock Exchange, First Section, 9697) 3rd Quarter Report Fiscal year ending March 31, 2019 Capcom Public Relations & Investor Relations Section Capcom Public Relations & Investor Relations Section 0

  2. Slide 2: Contents and Forward-looking Statements

    Contents page 1. Forecasts for FY3/19 2 2. Financial Highlights 3 3. Business Segment Results 6 4. Business Segment Plans & Strategies 12 5. Supplement: Summary of Major Financial Information 18 Forward-looking Statements Strategies, plans, outlooks and other statements that are not historical facts

  3. Slide 3: 1. Forecasts for FY3/19

    1. Forecasts for FY3/19 Aiming for six consecutive years of operating income growth and highest profit in company history, driven by Digital Contents business (million yen) 2018/3 2019/3 Plan Difference Net sales 94,515 96,000 1,485 Operating income 16,037 17,000 963 Operating margin 17.0% 17.7% - O

  4. Slide 4: 2-1. Financial Highlights – Consolidated Business Results (1)

    2-1. Financial Highlights – Consolidated Business Results (1)  9 Months Results in FY12/17 vs. FY12/18 (million yen) 2017/12 2018/12 Difference Net sales 47,740 61,270 13,530 Operating income 7,009 13,461 6,452 Ordinary income 7,099 13,539 6,440 Net income attributable to owners of the parent 4,439

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

    2-1. Financial Highlights – Consolidated Business Results (2)  FY12/18 Net Sales/Operating Income (Reasons for Increases/Decreases) (million yen) 2017/12 2018/12 Difference Net sales 47,740 61,270 13,530 Digital Contents 30,844 47,855 17,011 Arcade Operations 7,632 8,082 450 Amusement Equipments 7,

  6. Slide 6: 2-2. Financial Highlights – Consolidated Balance Sheet

    2-2. Financial Highlights – Consolidated Balance Sheet  Balance Sheet (Summary) (million yen) Assets 2018/3 2018/12 Difference Liabilities 2018/3 2018/12 Difference Current Assets 92,511 83,093 -9,418 Current Liabilities 26,271 15,236 -11,035 Notes and accounts payable - trade 3,464 4,045 581 Cash

  7. Slide 7: 3-1. Business Segment Results – Digital Contents (1)

    3-1. Business Segment Results – Digital Contents (1) Sales and profit up from growth of digital sales, including catalog sales of a major Consumer title released the previous year  Digital Contents Performance (100 million yen) 2016/12 2017/12 2018/12 2019/3 Plan Net sales 284 308 478 790 Breakdown

  8. Slide 8: 3-1. Business Segment Results – Digital Contents (2)

    3-1. Business Segment Results – Digital Contents (2) Significant unit sales growth driven by catalog sales, including rereleases and major titles from the previous year  Unit Sales for the 9 Months (Consumer) (units in thousands) 2016/12 2017/12 2018/12 2019/3 Plan New Titles (SKU) 33 41 50 53 Tota

  9. Slide 9: 3-1. Business Segment Results – Digital Contents (3)

    3-1. Business Segment Results – Digital Contents (3) Consumer performing well, supported by PC version of major title from the previous year and other new titles  9 Months Highlights (Consumer)  PC version provided a tailwind to Monster Hunter: World sales, which now exceed 11 million units  Mons

  10. Slide 10: 3-2. Business Segment Results – Arcade Operations

    3-2. Business Segment Results – Arcade Operations Sales and profit up due to solid performance of both new and existing stores  9 Months Business Results (100 million yen) 2016/12 2017/12 2018/12 2019/3 Plan Net sales 70 76 80 110 Operating income 6 8 8 10 Operating margin 8.6% 10.7% 10.7% 9.1% Sam

  11. Slide 11: 3-3. Business Segment Results – Amusement Equipments

    3-3. Business Segment Results – Amusement Equipments Decrease in sales and profit due to lower unit sales in PS accompanying changes in the market environment  9 Months Business Results (100 million yen) 2016/12 2017/12 2018/12 2019/3 Plan Net sales 165 77 32 35 Operating income 54 21 -6 -5 Operati

  12. Slide 12: 3-4. Business Segment Results – Other Businesses

    3-4. Business Segment Results – Other Businesses Focusing on rapidly growing esports market with global events Promoting TV and film adaptations of IP to boost brand value  9 Months Business Results (100 million yen) 2016/12 2017/12 2018/12 2019/3 Plan Net sales 14 15 21 25 Operating income 5 7 9 6

  13. Slide 13: 4-1. Digital Contents (1): Full-year plan

    4-1. Business Segment Plans & Strategies – Digital Contents (1) Forecast an increase in sales and profit driven primarily by digital sales growth in Consumer  Digital Contents: Full-year plan (100 million yen) 2017/3 2018/3 2019/3 Plan Difference Net sales 587 741 790 49 Breakdown Package 337 383 3

  14. Slide 14: 4-1. Digital Contents (2)

    4-1. Business Segment Plans & Strategies – Digital Contents (2) Release two major titles worldwide Expect an increase in unit sales  Consumer: FY3/19 Unit Sales Plan (units in thousands) 2016/3 2017/3 2018/3 2019/3 Plan New Titles (SKU) 45 42 50 53 Total unit sales 15,000 19,400 24,400 25,000 Overs

  15. Slide 15: 4-1. Digital Contents (3)

    4-1. Business Segment Plans & Strategies – Digital Contents (3) Major, global releases planned Look to expand digital sales of both new and catalog titles  Consumer: Outlook for FY 3/19  Resident Evil 2 released on January 25, 2019  Achieved more than 3 million units sold in first week (as of Jan

  16. Slide 16: 4-2. Business Segment Plans & Strategies – Arcade Operations

    4-2. Business Segment Plans & Strategies – Arcade Operations Aim to achieve full-year targets through efficient operations of both new and existing stores  Arcade Operations: Outlook for FY3/19  Aim to increase sales and profit through stabilizing operations at existing stores as well as with new

  17. Slide 17: 4-3. Business Segment Plans & Strategies – Amusement Equipments

    4-3. Business Segment Plans & Strategies – Amusement Equipments Expect decreased sales for the full year due to the market environment  Pachinko & Pachislo: Outlook for FY3/19  Released Sengoku BASARA HEROES PARTY pachislo machine in January 2019  Full-year plan: altogether 5 models, total 8.5 th

  18. Slide 18: 4-4. Business Segment Plans & Strategies – Other Businesses

    4-4. Business Segment Plans & Strategies – Other Businesses Actively promote the eSports business with the aim of future monetization  eSports: Outlook for FY3/19  Promote eSports activities with aim of developing ecosystem  Plan to run the Capcom Street Fighter League powered by RAGE from Februa

  19. Slide 19: 5. Summary of Major Financial Information

    5. Summary of Major Financial Information ●Profit and Loss Sheet （million yen） 2017/3 2018/3 2019/3 Plan % 2018/12 Net Sales 87,170 94,515 96,000 101.6% 61,270 Gross Profit 30,731 34,619 38,000 109.8% 25,398 Margin (%) 35.3% 36.6% 39.6% - 41.5% Sales and G&A Expenses 17,080 18,582 21,000 113.0% 11,9

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