Capcom Co., Ltd. · TSE:9697

Capcom — Q3 FY3/21 Earnings Presentation

21 slides from Capcom's earnings presentation, January 2021

1. Slide 1: Capcom 3rd Quarter Report, Fiscal Year Ending March 31, 2021

   Capcom Co., Ltd. (Tokyo Stock Exchange, First Section, 9697) 3rd 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 Q3 Results • Digital sales for major new title and catalog titles contributed to YoY sales and profit growth. • Impact of COVID-19 on businesses and development currently negligible. • Currently there is limited impact from the data security incident on this quarter’s bus

3. Slide 3: Contents and Forward-looking Statements

   Contents page 1. Forecasts for FY3/21 3 2. Financial Highlights 4 3. Business Segments 7 4. Business Segment Plans & Strategies 13 5. Supplement 19 Summary of Major Financial Information / Our Major IP Forward-looking Statements Strategies, plans, outlooks and other statements that are not historica

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

   1. Forecasts for FY3/21 Aiming for eight years of increased operating income and highest profit in company history, driven by Digital Contents performance (million yen) 2020/3 2021/3 Plan Difference Net sales 81,591 92,000 10,409 Operating income 22,827 30,500 7,673 Operating margin 28.0% 33.2% - Or

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

   2-1. Financial Highlights – Consolidated Business Results (1)  9 Months Results in FY12/19 vs. FY12/20 (million yen) 2019/12 2020/12 Difference Net sales 52,908 64,867 11,959 Operating income 18,448 24,382 5,934 Ordinary income 18,702 24,088 5,386 Net income attributable to owners of the parent 13,

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

   2-1. Financial Highlights – Consolidated Business Results (2)  FY12/20 Net Sales/Operating Income (by segment) (million yen) 2019/12 2020/12 Difference 2021/3 Plan Net sales 52,908 64,867 11,959 92,000 Digital Contents 40,589 48,966 8,377 71,500 Arcade Operations 9,201 7,018 -2,183 10,000 Amusement

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

   2-2. Financial Highlights – Financial Position  FY12/20 Balance Sheet/Statement of Cashflows (Summary) Balance Sheet (million yen) Statement of Cashflows (million yen) Assets 2020/3 2020/12 Difference 2019/12 2020/12 Difference Current Assets 108,829 104,433 -4,396 Cash flows from operating activit

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

   3-1. Business Segments – Digital Contents (1) Sales and profit up from growth of digital sales in Consumer and launch of new titles in Mobile Contents  Digital Contents Performance for the 9 Months (100 million yen) 2018/12 2019/12 2020/12 2021/3 Plan Net sales 478 405 489 715 Breakdown Package 165

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

   3-1. Business Segments – Digital Contents (2) Unit sales on par with same period of previous year driven by catalog sales of major titles  Unit Sales for the 9 Months (Consumer) (units in thousands) 2018/12 2019/12 2020/12 2021/3 Plan New Titles (SKU) 50 22 11 14 Total unit sales 16,600 16,500 19,8

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

    3-1. Business Segments – Digital Contents (3) Focused on supporting next-generation platforms and growing long-term sales of catalog titles  9 Months Highlights (Consumer)  Monster Hunter World: Iceborne topped cumulative 7.2 million units  Resident Evil 3 achieved cumulative 3.6 million units 

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

    3-2. Business Segments – Arcade Operations Same store sales showed signs of recovery while sales and profit declined due to COVID-19  9 Months Business Results (100 million yen) 2018/12 2019/12 2020/12 2021/3 Plan Net sales 80 92 70 100 Operating income 8 11 0 0 Operating margin 10.7% 12.9% 1.2% 0.

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

    3-3. Business Segments – Amusement Equipments Sales and profit increased due to release of new model utilizing major IP  9 Months Business Results (100 million yen) 2018/12 2019/12 2020/12 2021/3 Plan Net sales 32 6 67 70 Operating income -6 3 24 24 Operating margin - 56.7% 36.2% 34.3%  9 Months H

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

    3-4. Business Segments – Other Businesses Character Contents generally performed on par YoY; Costs down in eSports following events going online during pandemic  9 Months Business Results (100 million yen) 2018/12 2019/12 2020/12 2021/3 Plan Net sales 21 24 21 35 Character Contents 20 34 eSports 1

14. Slide 14: 4-1. Business Segment Plans & Strategies – Digital Contents (1)

    4-1. Business Segment Plans & Strategies – Digital Contents (1) Aim to grow both sales and profit driven primarily by contributions from Consumer  FY3/21 Digital Contents Plan (100 million yen) 2019/3 2020/3 2021/3 Plan Difference Net sales 829 599 715 116 Breakdown Package 359 129 185 56 Digital (

15. Slide 15: 4-1. Business Segment Plans & Strategies – Digital Contents (2)

    4-1. Business Segment Plans & Strategies – Digital Contents (2) Look to increase unit sales through release of major new titles as well as growth of digital sales for catalog titles  Consumer: FY3/21 Unit Sales Plan (units in thousands) 2018/3 2019/3 2020/3 2021/3 Plan New Titles (SKU) 50 61 35 14

16. Slide 16: 4-1. Business Segment Plans & Strategies – Digital Contents (3)

    4-1. Business Segment Plans & Strategies – Digital Contents (3) Release new title Monster Hunter Rise Continue focus on expanding digital sales for catalog titles  Consumer: Outlook for FY 3/21  Monster Hunter Rise for Nintendo Switch, the latest title in the series, scheduled to release Mar. 26,

17. Slide 17: 4-2. Business Segment Plans & Strategies – Arcade Operations

    4-2. Business Segment Plans & Strategies – Arcade Operations Aim to achieve full-year plan while taking measures for COVID-19 prevention  Arcade Operations: Outlook for FY3/21  Plan to open 1 new store and close no stores for the full-year (resulting in a total 41 stores)  Full-year same store sa

18. Slide 18: 4-3. Business Segment Plans & Strategies – Amusement Equipments

    4-3. Business Segment Plans & Strategies – Amusement Equipments Expect increased sales and profit for the full year due to release of new machines  Pachinko & Pachislo: Outlook for FY3/21  New pachislo machine Resident Evil 7 biohazard scheduled for February 2021 release  Full-year plan: 3 models

19. Slide 19: 4-4. Business Segment Plans & Strategies – Other Businesses

    4-4. Business Segment Plans & Strategies – Other Businesses Enhance brand value by promoting Single Content Multiple Usage Focus on building out eSports foundation with online events  Character Contents: Outlook for FY3/21  Hollywood film adaptation Monster Hunter scheduled to release March 2021 i

20. Slide 20: 5-1. Supplement: Summary of Major Financial Information

    5-1. Supplement: Summary of Major Financial Information ●Profit and Loss Sheet （million yen） 2019/3 2020/3 2021/3 Plan % 2020/12 Net Sales 100,031 81,591 92,000 112.8% 64,867 Gross Profit 37,222 40,947 49,000 119.7% 35,810 Margin (%) 37.2% 50.2% 53.3% - 55.2% Sales and G&A Expenses 19,078 18,119 18,

21. Slide 21: 5-2. Supplement: Our Major IP

    5-2. Supplement: Our Major IP Capcom owns a wealth of brands originating from its games that boast worldwide popularity  Cumulative Unit Sales and Examples of Brand Utilization • Resident Evil series: 107 million units • Monster Hunter series: 66 million units Resident Evil live action film reboot

Capcom — Q3 FY3/21 Earnings Presentation on 6ix