Capcom Co., Ltd. · TSE:9697

Capcom — H1 FY2018 Earnings Presentation

43 slides from Capcom's earnings presentation, 2017

  1. Slide 1: Capcom Co., Ltd. First Half Report

    Capcom Co., Ltd. (Tokyo Stock Exchange, First Section, 9697) First Half Report Fiscal year ending March 31, 2018 Capcom Public Relations & Investor Relations Section Capcom Public Relations & Investor Relations Section 0

  2. Slide 2: Forward-looking Statements

    Forward-looking Statements Strategies, plans, outlooks and other statements that are not historical facts are based on assumptions that use information currently available and reasonable judgments. Actual performance may be significantly different from these statements for a number of reasons. In th

  3. Slide 3: Contents

    Contents page 1. Forecasts for FY3/18 3 2. FY2017 First Half Financial Highlights 5 3. Business Segment Plans & Strategies 26 4. Additional Information 39 Summary of Major Financial Information Capcom Public Relations & Investor Relations Section 2

  4. Slide 4: 1. Forecasts for FY3/18

    1. Forecasts for FY3/18 Capcom Public Relations & Investor Relations Section 3

  5. Slide 5: 1. Forecasts for FY3/18 (1)

    1. Forecasts for FY3/18 (1) Five consecutive years of operating income growth driven by Digital Contents; 1H in line with initial forecasts (millions of JPY) 2017/3 2018/3 Plan Difference 2017/9 Net sales 87,170 93,000 5,830 33,729 Operating income 13,650 14,500 850 5,001 Operating margin 15.7% 15.6

  6. Slide 6: 2. FY2017 First Half Financial Highlights

    2. FY2017 First Half Financial Highlights Capcom Public Relations & Investor Relations Section 5

  7. Slide 7: 2-1. Consolidated Statements of Income

    2-1. Consolidated Statements of Income Capcom Public Relations & Investor Relations Section 6

  8. Slide 8: 2-1. Consolidated Statements of Income

    2-1. Consolidated Statements of Income  Results Comparison: Sept. 2016 vs Sept. 2017 (millions of JPY) 2016/9 2017/9 Difference Net sales 28,676 33,729 5,053 Operating income 1,715 5,001 3,286 Ordinary income 514 5,016 4,502 Net income attributable to owners of the parent 405 3,481 3,076  Increase

  9. Slide 9: 2-1. Consolidated Statements of Income Summary (1)

    2-1. Consolidated Statements of Income Summary (1)  FY9/17 Net Sales: Increases and Decreases • In Consumer, sales of recent catalog titles overseas and new releases drove increased revenue for Digital Contents. ( billions of JPY) • Increased revenue in Amusement Equipments due to growth in pachisl

  10. Slide 10: 2-1. Consolidated Statements of Income Summary (2)

    2-1. Consolidated Statements of Income Summary (2)  FY9/17 Operating Income: Increases and Decreases • Profit grew in the Digital Contents business, driven primarily by increased sales of new titles in Consumer. ( billions of JPY) • Profit up in the Amusement Equipments business from increased 70 s

  11. Slide 11: 2-2. Consolidated Balance Sheets

    2-2. Consolidated Balance Sheets Capcom Public Relations & Investor Relations Section 10

  12. Slide 12: 2-2. Consolidated Balance Sheets

    2-2. Consolidated Balance Sheets  Major Changes in Balance Sheet Items (millions of JPY) Assets 2017/3 2017/9 Difference Work-in-progress for game software 30,150 37,353 7,203 Notes and accounts receivable, trade 20,175 11,156 -9,019 1. Work-in-progress for game software • Increased due to product

  13. Slide 13: 2-3. Consolidated Cash Flows

    2-3. Consolidated Cash Flows Capcom Public Relations & Investor Relations Section 12

  14. Slide 14: 2-3. Consolidated Cash Flows

    2-3. Consolidated Cash Flows  FY17/9 Consolidated Cash Flows: Increases and Decreases ( billions of JPY) CF from Operating Activities CF from CF from ＋ ¥6.9 bn. Investing Financing Activities Activities - ¥1.6 bn. -¥7.2 bn. 450 45.0 Decrease in inventories Net income before income taxes +0.9 −1.0 4

  15. Slide 15: 2-4. Business Segment Highlights

    2-4. Business Segment Highlights Capcom Public Relations & Investor Relations Section 14

  16. Slide 16: 2-4-1. Digital Contents

    2-4-1. Digital Contents Capcom Public Relations & Investor Relations Section 15

  17. Slide 17: 2-4-1. Digital Contents – First Half Highlights (1)

    2-4-1. Digital Contents – First Half Highlights (1) Stable growth of recent catalog title sales overseas New titles released in the first half also contributed  Consumer: First Half Highlights  New title Marvel vs. Capcom: Infinite shipped 900 thousand units  Cumulative sales of Resident Evil 7 b

  18. Slide 18: 2-4-1. Digital Contents – First Half Highlights (2)

    2-4-1. Digital Contents – First Half Highlights (2) Both new and recent catalog title sales grow Total unit sales increased year-over-year  Consumer: Unit Sales for the First Half (thousands of units) 2015/9 2016/9 2017/9 Difference Titles (SKU) 20 22 20 -2 Package Japan 1,000 700 950 250 North Ame

  19. Slide 19: 2-4-1. Digital Contents – First Half Highlights (3)

    2-4-1. Digital Contents – First Half Highlights (3) Moved forward with Mobile alliances targeting medium-term growth Continued stable operations of existing titles  Mobile Contents: First Half Highlights  Monster Hunter Explore contributed stable profit  Booked license revenue from alliance effor

  20. Slide 20: 2-4-1. Digital Contents – First Half Performance

    2-4-1. Digital Contents – First Half Performance Revenue and profit up due primarily to stable growth in Consumer Moving forward with efforts to improve Online business  First Half Digital Contents Performance (hundreds of millions of JPY) 2015/9 2016/9 2017/9 Difference Net sales 143 163 201 38 Op

  21. Slide 21: 2-4-2. Arcade Operations

    2-4-2. Arcade Operations Capcom Public Relations & Investor Relations Section 20

  22. Slide 22: 2-4-2. Arcade Operations – First Half Highlights

    2-4-2. Arcade Operations – First Half Highlights Popular prizes drove sales at existing stores Outperformed year-over-year via efficient operational structure  First Half Highlights  Sales at existing stores up 3% YoY (Q1: down 1%; Q2: up 5%)  Opened 2 new stores (Tokushige and Tsudanuma); closed

  23. Slide 23: 2-4-3. Amusement Equipments

    2-4-3. Amusement Equipments Capcom Public Relations & Investor Relations Section 22

  24. Slide 24: 2-4-3. Amusement Equipments – First Half Highlights

    2-4-3. Amusement Equipments – First Half Highlights Increased sales and profit driven primarily by higher unit sales in Pachinko & Pachislo  Pachinko & Pachislo: First Half Highlights  Phoenix Wright: Ace Attorney pachislo machine, operating since April, sold 4 thousand units  Resident Evil: Reve

  25. Slide 25: 2-4-4. Other Businesses

    2-4-4. Other Businesses Capcom Public Relations & Investor Relations Section 24

  26. Slide 26: 2-4-4. Other Businesses – First Half Highlights

    2-4-4. Other Businesses – First Half Highlights Drove forward the Single Content Multiple Usage strategy with diverse licensing  Character Contents: First Half Highlights  Expanded licensing for character merchandise coordinated with home video games  Raised awareness among non-game users via TV,

  27. Slide 27: 3. Business Segment Plans & Strategies

    3. Business Segment Plans & Strategies Capcom Public Relations & Investor Relations Section 26

  28. Slide 28: 3-1. Digital Contents

    3-1. Digital Contents Capcom Public Relations & Investor Relations Section 27

  29. Slide 29: 3-1. Digital Contents – Second Half Strategies (1)

    3-1. Digital Contents – Second Half Strategies (1) Major global title scheduled for release Expand digital download sales for new and catalog titles  Consumer: Second Half Strategy  Monster Hunter: World, the latest title under the Monster Hunter brand, scheduled to launch on January 26  Resident

  30. Slide 30: 3-1. Digital Contents – Second Half Strategies (2)

    3-1. Digital Contents – Second Half Strategies (2) Expect increase in digital download unit sales due to expanding lineup of rereleases for current-generation hardware  Consumer: FY2017 Unit Sales Plan (thousands of units) 2016/3 2017/3 2018/3 Plan Difference Titles (SKU) 45 42 37 -5 Package Japan

  31. Slide 31: 3-1. Digital Contents – Second Half Strategies (3)

    3-1. Digital Contents – Second Half Strategies (3) New title sales on par with previous year due to major release Expect unit sales growth for catalog titles  Breakdown of FY3/18 New and Catalog Consumer Unit Sales (thousands of units) 2015/3 2016/3 2017/3 2018/3 Plan Consumer New Titles （SKU） 33 4

  32. Slide 32: 3-1. Digital Contents – Second Half Strategies (4)

    3-1. Digital Contents – Second Half Strategies (4) Bolster use of our IP in line with changes to the mobile market environment; focus on running existing titles in PC Online  Mobile Contents: Second Half Strategy  Aim to produce hit titles both in Japan and overseas  Strengthen development of new

  33. Slide 33: 3-1. Digital Contents Full-year Plan

    3-1. Digital Contents Full-year Plan Aim to increase sales and profit year-over-year, driven by stable growth in Consumer  Digital Contents: FY2017 Plan (hundreds of millions of JPY) 2016/3 2017/3 2018/3 Plan Difference Net sales 525 587 650 63 Operating income 121 110 137 27 Operating margin 23.1%

  34. Slide 34: 3-2. Arcade Operations

    3-2. Arcade Operations Capcom Public Relations & Investor Relations Section 33

  35. Slide 35: 3-2. Arcade Operations – Second Half Strategies

    3-2. Arcade Operations – Second Half Strategies Revitalize revenue through new business expansion and continued efficient operations  Second Half Strategy  Firm up earnings with new business models, e.g. Capcom Café (restaurant) and Chara Cap (merchandise stores)  Increase customer satisfaction,

  36. Slide 36: 3-3. Amusement Equipments

    3-3. Amusement Equipments Capcom Public Relations & Investor Relations Section 35

  37. Slide 37: 3-3. Amusement Equipments – Second Half Strategies

    3-3. Amusement Equipments – Second Half Strategies Plan to release new models featuring popular IP Full-year plan stands  Pachinko & Pachislo: Second Half Strategies  Plan to release 2 new models in 2H  Full-year plan: altogether 4 models, total 50 thousand units  Arcade Game Sales: Second Half

  38. Slide 38: 3-4. Other Businesses

    3-4. Other Businesses Capcom Public Relations & Investor Relations Section 37

  39. Slide 39: 3-4. Other Businesses – Second Half Strategies

    3-4. Other Businesses – Second Half Strategies Explore potential of eSports business Maximize brand revenue by expanding licensing  Character Contents: Second Half Strategies  Increase awareness via coordinating title launches with TV and movies  Monster Hunter Stories RIDE ON, an animated TV sho

  40. Slide 40: 4. Additional Information

    4. Additional Information Summary of Major Financial Information Capcom Public Relations & Investor Relations Section 39

  41. Slide 41: Summary of Major Financial Information (1)

    Summary of Major Financial Information (1) ●Profit and Loss Sheet （millions of JPY ） 2016/3 2017/3 2018/3 Plan ％ 2017/9 Net Sales 77,021 87,170 93,000 106.7% 33,729 Gross Profit 29,846 30,731 33,000 107.4% 13,181 Margin (%) 38.8% 35.3% 35.5% - 39.1% Sales and G&A Expenses 17,816 17,080 18,500 108.3%

  42. Slide 42: Summary of Major Financial Information (2)

    Summary of Major Financial Information (2) ●Promotional Expense （millions of JPY ） 2016/3 2017/3 2018/3 Plan ％ 2017/9 Capcom Japan 1,930 1,886 2,000 106.0% 947 Consolidated 3,832 4,764 6,000 125.9% 2,444 ●Number of Stores （facilities） 2016/3 2017/3 2018/3 Plan Difference 2017/9 Consolidated 34 36 40

  43. Slide 43: Summary of Major Financial Information (3)

    Summary of Major Financial Information (3) ●Sales Units Shipped <platform> (t housands of unit s) 2016/3 2017/3 2018/3 Plan Difference 2017/9 PlayStation 3 Titles (SKU) 19 16 - - 4 PlayStation 4 Units 3,500 4,700 - - 1,900 PSP Titles (SKU) 8 5 - - - PS Vita Units 300 150 - - - Wii, WiiU Titles (SKU)

Capcom — H1 FY2018 Earnings Presentation on 6ix