Koei Tecmo Holdings Co., Ltd. · TSE:3635

Koei Tecmo — Tecmo Koei Holdings — H1 FY2011 Earnings Presentation

34 slides from Koei Tecmo's earnings presentation, Nov 21, 2011

  1. Slide 1: Tecmo Koei Holdings Fiscal Year Ending March 2012 1st Half Financial Results

  2. Slide 2: Financial Summary (FY 2011 1st half)

    Financial Summary (FY 2011 1st half) （Units：Millions of Yen） Term ended Sep.2010 Term ended Sep.2011 YoY Change Amount Ratio Amount Ratio Amount Ratio Sales 11,069 100.0% 13,635 100.0% 2,566 23.2% Operating △ 1,656 △15.0% 712 5.2% 2,368 - Profit Ordinary △ 1,097 △9.9% 862 6.3% 1,959 - Profit Net Inc

  3. Slide 3: Major Titles and Events (FY 2011 1st half)

    Major Titles and Events (FY 2011 1st half) ©TECMO KOEI GAMES CO., LTD. All rights reserved. 3

  4. Slide 4: Sales and Operating Profit by Business Segment (FY 2011 1st half)

    Sales and Operating Profit by Business Segment (FY 2011 1st half) Game Online & Media & Pachislot & Amusement Corporate & Consolidated Others Total Software Mobile Rights Pachinko Facilities Elimination Total Sales 8,906 2,835 509 563 952 116 13,884 △ 248 13,635 Operating 514 524 △ 191 195 93 13 1,1

  5. Slide 5: Net Sales by Region (FY 2011 1st half)

    Net Sales by Region (FY 2011 1st half) Net Sales by Region （Units：Millions of Yen） Term ended Sep.2010 Term ended Sep.2011 YoY Change Area Amount Ratio Amount Ratio Amount Ratio Japan 9,468 85.5% 11,815 86.7% 2,347 24.8% Overseas 1,601 14.5% 1,820 13.3% 219 13.7% North America 1,146 10.4% 831 6.1% △

  6. Slide 6: Sales Units by Region (FY 2011 1st half)

    Sales Units by Region (FY 2011 1st half) Sales Units by Region （Thousands of Units） Term ended Sep.2010 Term ended Sep.2011 YoY Change Area Units Ratio Units Ratio Units Ratio Japan 1,020 42.0% 1,610 68.2% 590 57.8% Overseas 1,410 58.0% 750 31.8% △ 660 △46.8% North America 960 39.5% 280 11.9% △ 680

  7. Slide 7: Major Expenses, Capital Expenditure and Depreciation Expenses (FY 2011 1st half)

    Major Expenses, Capital Expenditure and Depreciation Expenses (FY 2011 1st half) Major Expenses Transition Capital Expenditure & Depreciation Expenses （Millions of Yen） （％） （Millions of Yen） 4,000 20.0% 1,000 Advertising & Promotion Expenses Amount Paid to Subcontractors Depreciation Expenses Ratio

  8. Slide 8: Consolidated Plan (Fiscal Year Ending March 2012)

    TECMO KOEI HOLDINGS CO.,L1 yh Consolidated Plan | (Fiscal Year Ending March

  9. Slide 9: Financial Summary (Plan FY 2011)

    Financial Summary (Plan FY 2011) （Units ：Millions of Yen） FY2010 FY2011(Plan) YoY Change Amount Ratio Amount Ratio Amount Ratio Sales 32,081 100.0% 35,000 100.0% 2,919 9.1% Operating 3,305 10.3% 5,000 14.3% 1,695 51.3% Profit Ordinary 4,788 14.9% 6,500 18.6% 1,712 35.8% Profit Net Income 2,741 8.5%

  10. Slide 10: Sales and Operating Profit by Business Segment (Plan FY 2011)

    Sales and Operating Profit by Business Segment (Plan FY 2011) FY2011(Plan) （Units：Millions of Yen） Game Online & Media & Pachislot & Amusement Corporate & Consolidated Others Total Software Mobile Rights Pachinko Facilities Elimination Total Sales 21,700 7,300 2,300 1,800 1,800 100 35,000 0 35,000 O

  11. Slide 11: Net Sales by Region (Plan FY 2011)

    Net Sales by Region (Plan FY 2011) Net Sales by Region （Units：Millions of Yen） FY2010 FY2011(Plan) YoY Change Area Amount Ratio Amount Ratio Amount Ratio Japan 27,563 85.8% 29,500 84.3% 1,937 7.0% Overseas 4,518 14.2% 5,500 15.7% 982 21.7% North America 2,500 7.9% 3,500 10.0% 1,000 40.0% Europe 1,49

  12. Slide 12: Sales Units by Region (Plan FY 2011)

    Sales Units by Region (Plan FY 2011) Sales Units by Region （Thousands of Unitis） FY2010 FY2011(Plan) YoY Change Area Units Ratio Units Ratio Units Ratio Japan 3,350 58.2% 4,000 68.4% 650 19.4% Overseas 2,410 41.8% 1,850 31.6% △ 560 △23.2% North America 1,395 24.2% 1,000 17.1% △ 395 △28.3% Europe 860

  13. Slide 13: Major Expenses, Capital Expenditure and Depreciation Expenses (Plan FY 2011)

    Major Expenses, Capital Expenditure and Depreciation Expenses (Plan FY 2011) Major Expenses Transition Capital Expenditure & （Millions of Yen） （％） （Millions of Yen） Depreciation Expenses 8,000 20.0% 2,000 Advertising & Promotion Expenses Depreciation Expenses Amount Paid to Subcontractors Ratio to N

  14. Slide 14: Management Policy and Future Business Deployment

    Management Policy and Future Business Deployment

  15. Slide 15: Management Policy for FY 2011: Achieving Growth and Profitability

    Management Policy for FY 2011 Achieving Growth and Profitability 15

  16. Slide 16: Profit and loss transition

    Profit and loss transition Achieved first half profit for first time since merger （Millions of yen） First/second half operating profit transition 6,000 4,961 5,000 4,288 4,000 Operating Profit 3,000 2,000 712 1,282 1,000 0 △ 641 △ 1,656 △ 1,000 Operating △ 2,000 641 3,305 5,000（Plan） Profit First ha

  17. Slide 17: Achieving Profitability

    Achieving Profitability ① Aim to double growth in the social gaming sector ② Support new platforms with packaged games ③ Promote collaborative titles ©TECMO KOEI GAMES CO., LTD. All rights reserved. 17 17

  18. Slide 18: Aim to double growth in the social gaming sector: Release Schedule

    ① Aim to double growth in the social gaming sector Release Schedule As of 2011/11 Japan North America Asia Feature phone Smartphone Browser Europe Hyakuman nin no Nobunaga's Ambition 2010/08 Mobage 2011/08 Mobage 2011/01 Yahoo!Mobage Hyakuman nin no Romance of The Three Kingdoms 2010/10 GREE 2011/01

  19. Slide 19: Global social games strategy

    ① Aim to double growth in the social gaming sector Global social games strategy ● China： “Hyakuman nin no Romance of The Three Kingdoms” will soon release through GREE and Tencent ● North America：“My Monster Rancher” will start on Mobage （November,2011） ● “Hyakuman nin no Uncharted Waters” plan to d

  20. Slide 20: Expand user base through interaction between social and packaged games

    ① Aim to double growth in the social gaming sector Expand user base through interaction between social and packaged games! Projection of Tecmo Koei user base expansion ① “Nobunaga’s ambition” in Packaged game Social game social game reaches 6 times 6 million units a year 4.5 million users more numbe

  21. Slide 21: Support new platforms with packaged games

    ② Support new platforms with packaged games Active support for new platforms 3DS： “DEAD OR ALIVE Dimensions” “SHIN SANGOKUMUSOU VS” “FabStyle” PSVita： “Dynasty Warriors NEXT” （Launch title） “NINJA GAIDEN ∑” WiiU： “NINJA GAIDEN 3: Razor’s Edge（working title）” 21 21 ©TECMO KOEI GAMES CO., LTD. All rig

  22. Slide 22: Promote collaborative titles

    ③ Promote collaborative titles ● “ONE PIECE KAIZOKU MUSOU”※ ● Furthermore, collaboration with another major title planned near future ※English name is tentative. 開発：㈱コーエーテクモゲームス 発売元：㈱バンダイナムコゲームス 22 22 ©尾田栄一郎／集英社・フジテレビ・東映アニメーション ©2011 NBGI

  23. Slide 23: Achieving Profitability

    Achieving Profitability ① Enhancement of series titles ② Creation of group synergy ③ Continuing cost reduction ©TECMO KOEI GAMES CO., LTD. All rights reserved. 23 23

  24. Slide 24: Enhancement of series titles

    ① Enhancement of series titles Released titles in first half Release titles in future Dynasty Warriors 7 Xtreme Legends （PS3） NINJA GAIDEN 3 （PS3/Xbox360） Samurai Warriors 3 Empires （PS3） DEAD OR ALIVE 5 （PS3/Xbox360） DEAD OR ALIVE Dimensions （3DS） MUSOU OROCHI 2 （PS3/Xbox360） SHIN SANGOKUMUSOU VS （

  25. Slide 25: Creation of group synergy

    ② Creation of group synergy Create group synergy at individual product level ● “Champion Jockey: Gallop Racer & G1Jockey” （PS3/Xbox360/Wii） Sep. 2011 released New horseracing game crossover with Tecmo’s “Gallop Racer” series and Koei’s “G1Jockey” series ● Kou Shibusawa × TeamNINJA developing “NI-OH”

  26. Slide 26: Continuing cost reduction: Major Expenses Transition

    ③ Continuing cost reduction Major Expenses Transition Labor Cost Amount Paid to Subcontractors Advertising & Promotion Expenses Ratio to Net Sales （Millions of Yen） First half （％） （Millions of Yen） Full business year （％） 10,000 58% 60% 20,000 49% 50% 42% 52% 50% 38% 8,000 2,099 40% 45% 15,000 939 40

  27. Slide 27: Continuing cost reduction: SG&A expenses transition

    ③ Continuing cost reduction Selling, general and administrative expenses transition Selling, general and administrative expenses Ratio to Net Sales （Millions of Yen） First half （％） (Millions of Yen) Full business year （％） 15,000 30% 7,000 40% 37.1% 25.7% 29.4% 6,000 31.3% 35% 12,500 22.9% 25% 4,782

  28. Slide 28: Future business development

    Future business development ① In order to achieve growth and profitability ● Enhance product development capability ● Enrich multiplayer elements ● Key themes ② Future game development targets 28 ©TECMO KOEI GAMES CO., LTD. All rights reserved.

  29. Slide 29: Enhance product development capability

    ① In order to achieve growth and profitability Enhance product development capability Extent of product development Media & Rights Worldwide Platform Expansion Collaborative titles “Fist of the North Star: Ken’s Rage” PS3 Xbox360 Japan Wii Series titles North America Content 3DS “Dynasty Warriors 7”

  30. Slide 30: Enrich multiplayer elements

    ① In order to achieve growth and profitability Enrich multiplayer elements Change in “play style” “Play alone” “Play together” “Play style” has been changed by expanded user connection through networks Aim to expand user base by enhancing “Play together”, multiplayer functions! 30

  31. Slide 31: Key themes

    ① In order to achieve growth and profitability Key themes Achieving growth and Profitability With adapting to rapid changes in business environment, promote strengthening of branding, cost reduction, also develop business model to foster innovation, and achieve growth and profitability 31

  32. Slide 32: Target of game development

    ② Target of game development 32

  33. Slide 33: Toward high growth and profitability

    Toward high growth and profitability Sales/Operating Profit/Ordinary Profit comparison Ordinary Profit Ratio (%) 35% 30% 25% 20% 15% 10% Ordinary Profit Ratio Sales Operating Profit (Millions of Yen ) 50,000 Ordinary Profit 20,000 (Millions of Yen) Sales Operating Profit 40,000 Ordinary Profit 15,00

  34. Slide 34: 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. 34

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