Capcom Co., Ltd. · TSE:9697

Capcom — H1 FY2020 Earnings Presentation

19 slides from Capcom's earnings presentation, November 2019

  1. Slide 1: First Half Report, Fiscal year ending March 31, 2020

    Capcom Co., Ltd. (Tokyo Stock Exchange, First Section, 9697) First Half Report Fiscal year ending March 31, 2020 Capcom Public Relations & Investor Relations Section Capcom Public Relations & Investor Relations Section 0

  2. Slide 2: Contents page and Forward-looking Statements

    Contents page 1. Forecasts for FY3/20 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: Forecasts for FY3/20

    1. Forecasts for FY3/20 Aiming for seven consecutive years of operating income growth and highest profit in company history, driven by Digital Contents business (million yen) 2019/3 2020/3 Plan Difference Net sales 100,031 85,000 -15,031 Operating income 18,144 20,000 1,856 Operating margin 18.1% 23

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

    2-1. Financial Highlights – Consolidated Business Results (1)  6 Months Results in FY9/18 vs. FY9/19 (million yen) 2018/9 2019/9 Difference Net sales 43,327 37,272 (6,055) Operating income 10,508 13,992 3,484 Ordinary income 10,297 14,002 3,705 Net income attributable to owners of the parent 6,849

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

    2-1. Financial Highlights – Consolidated Business Results (2)  FY9/19 Net Sales/Operating Income (by segment) (million yen) 2018/9 2019/9 Difference Net sales 43,327 37,272 -6,055 Digital Contents 34,195 29,163 -5,032 Arcade Operations 5,504 6,233 729 Amusement Equipments 2,224 241 -1,983 Other Bus

  6. Slide 6: Financial Highlights – Consolidated Balance Sheet

    2-2. Financial Highlights – Consolidated Balance Sheet  Balance Sheet (Summary) (million yen) Assets 2019/3 2019/9 Difference Liabilities 2019/3 2019/9 Difference Current Assets 90,817 98,219 7,402 Current Liabilities 23,212 24,377 1,165 Notes and accounts payable - trade 5,141 2,713 -2,428 53,004

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

    3-1. Business Segment Results – Digital Contents (1) Profit up from growth of high-margin catalog sales in the Consumer sub-segment  Digital Contents Performance (100 million yen) 2017/9 2018/9 2019/9 2020/3 Plan* Net sales 201 341 291 668 Breakdown Package 97 114 75 154 Digital download contents 5

  8. Slide 8: Digital Contents (2): Monster Hunter World: Iceborne off to a solid start

    3-1. Business Segment Results – Digital Contents (2) Monster Hunter World: Iceborne off to a solid start Results driven by digital sales, including those of major catalog titles  Unit Sales for the 6 Months (Consumer) (thousands of units) 2017/9 2018/9 2019/9 2020/3 Plan New Titles (SKU) 20 32 15 3

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

    3-1. Business Segment Results – Digital Contents (3) Focused on sales of new major title and long-term sales of titles released in previous fiscal years  6 Months Highlights (Consumer)  Monster Hunter World: Iceborne shipped 2.8 million units while Monster Hunter: World broke cumulative 14 million

  10. Slide 10: Business Segment Results – Arcade Operations

    3-2. Business Segment Results – Arcade Operations Existing stores performed well resulting in increased sales and profit  6 Months Business Results (100 million yen) 2017/9 2018/9 2019/9 2020/3 Plan Net sales 51 55 62 112 Operating income 6 7 9 7 Operating margin 12.2% 13.3% 14.7% 6.3% Same store s

  11. Slide 11: Business Segment Results – Amusement Equipments

    3-3. Business Segment Results – Amusement Equipments Stable results due to licensing revenue despite decrease in net sales following lower unit sales  6 Months Business Results (100 million yen) 2017/9 2018/9 2019/9 2020/3 Plan Net sales 73 22 2 40 Operating income 19 -6 0 1 Operating margin 26.3%

  12. Slide 12: Business Segment Results – Other Businesses

    3-4. Business Segment Results – Other Businesses Sales and profit up due to licensing revenue growth Pursuing expansion of esports player base  6 Months Business Results (100 million yen) 2017/9 2018/9 2019/9 2020/3 Plan Net sales 10 14 16 30 Operating income 5 6 7 3 Operating margin 52.9% 48.8% 44

  13. Slide 13: Business Segment Plans – Digital Contents (1): FY3/20 Plan

    4-1. Business Segment Plans & Strategies – Digital Contents (1) Aim to increase profit via contribution of Consumer digital sales Profit outlook for Mobile Contents has been slightly lowered  FY3/20 Digital Contents Plan (100 million yen) 2020/3 2020/3 2018/3 2019/3 Initial Plan Revised Plan Differ

  14. Slide 14: Digital Contents (2): Continued focus on Monster Hunter World: Iceborne

    4-1. Business Segment Plans & Strategies – Digital Contents (2) Continued focus on sales of Monster Hunter World: Iceborne Expect increase in unit sales due to digital growth  Consumer: FY3/20 Unit Sales Plan (thousands of units) 2017/3 2018/3 2019/3 2020/3 Plan New Titles (SKU) 42 50 61 30 Total u

  15. Slide 15: Digital Contents (3): Plan to launch Iceborne for PC

    4-1. Business Segment Plans & Strategies – Digital Contents (3) Plan to launch Monster Hunter World: Iceborne for PC Look to expand digital sales of both new and catalog titles  Consumer: Second Half Strategy  Monster Hunter World: Iceborne (for PC) Release date: January 9, 2020 global simultaneou

  16. Slide 16: Business Segment Plans – Arcade Operations

    4-2. Business Segment Plans & Strategies – Arcade Operations Monitor impact of consumption tax increase while continuing efficiency-driven operations  Second Half Strategy  Aim to increase revenue and profit through stabilizing operations at existing stores as well as with opening new stores  Cap

  17. Slide 17: Business Segment Plans – Amusement Equipments

    4-3. Business Segment Plans & Strategies – Amusement Equipments Aim to launch models to current certification standards and achieve full-year plan  Pachinko & Pachislo: Second Half Strategies  Plan to release 3 models in 2H  Full-year plan: altogether 3 models, total 15 thousand units  FY3/20 Am

  18. Slide 18: Business Segment Plans – Other Businesses

    4-4. Business Segment Plans & Strategies – Other Businesses Strengthen brand value through leveraging use of content Look to expand into regional cities by accelerating spread of esports  Character Contents: Second Half Strategies  Monster Hunter Festa scheduled for November 2019 in Tokyo, January

  19. Slide 19: Summary of Major Financial Information

    5-1. Summary of Major Financial Information ●Profit and Loss Sheet （million yen） 2018/3 2019/3 2020/3 Plan % 2019/9 Net Sales 94,515 100,031 85,000 85.0% 37,272 Gross Profit 34,619 37,222 38,000 102.1% 22,520 Margin (%) 36.6% 37.2% 44.7% - 60.4% Sales and G&A Expenses 18,582 19,078 18,000 94.3% 8,52

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