fiscal year 2019 financial results presentation · capcom public relations & investor relations...

0Capcom Public Relations & Investor Relations SectionCapcom Public Relations & Investor Relations Section

Capcom Co., Ltd.

May 12, 2020

Fiscal Year 2019Financial Results Presentation

1Capcom Public Relations & Investor Relations SectionCapcom Public Relations & Investor Relations Section

President and Chief Operating OfficerHaruhiro Tsujimoto

Capcom Co., Ltd.

May 12, 2020

Fiscal Year 2019Financial Results Presentation

2Capcom Public Relations & Investor Relations Section

We would like to offer up our most heart-felt sympathies to all who have been affected by COVID-19


1. Medium-term Management Objective


123

101 102 105 120

136

160

181

228

255

67

29 34

66 77

88

109125

159

180

0

25

50

75

100

125

150

175

200

225

250

275

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3(Plan)

Operating Income

Net Income

Medium-term Management Objective• Aim for annual OP growth, supported by a stable earnings foundation

1-1. Growth Strategies (Medium-Term Goals)

(100 million)


0

100

200

300

400

500

600

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3（計画）

• Increase digital earnings each year

Strengthen digital sales

Digital net sales (Consumer)

(hundred million yen)

FY3/21 PlanBreak 45 billion yenDigital ratio 73.9%

1-2. Medium-Term Goals (1)

(plan)


• Titles contribute long-term, starting at launch and continuing into high-margin catalog sales• Sowing seeds for the future, capture new customers through pricing strategies

Realize stable growth through extended lifetimes for high-quality titles

2017/3 2018/3 2019/3 2020/3 2021/3(plan)

Resident Evil 7 biohazard 350 160 125 100

Continue to contribute to

profit as catalog titles

Monster Hunter: World 790 450 320

Resident Evil 2 420 240

Devil May Cry 5 210 130

Monster Hunter World: Iceborne 520

Cumulative unit sales

1,940 2,440 2,530 2,550 2,800New 1,060 1,340 1,110 730 1,000

Catalog 880 1,100 1,420 1,820 1,800


(ten thousand units)


• Build user-retention based on player characteristics gathered from play data• Pursue a global-orientated, regional strategy from four locations:

the Americas, Europe, Japan, Asia• Integrate operations for business planning, marketing and sales

Strengthen global sales via advances in digital marketing

Japan

AsiaThe

Americas

Europe



123

101 102 105 120

136

160

181

228

255

67

29 34

66 77

88

109125

159

180

0

25

50

75

100

125

150

175

200

225

250

275

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3(Plan)

Operating Income

Net Income

Medium-term Management Objective• Aim for annual OP growth of 10%, supported by a stable earnings foundation

1-2. Growth Strategies (Medium-Term Goals) (4)

(100 million)


2. Market Overview


244 299 315 341 386 435 471 532

384 416 384 401 412

424 425 433

594

753 920

1,039 1,143

1,215 1,266

1,299

0

500

1,000

1,500

2,000

2,500

2017 2018 2019 2020E 2021E 2022E 2023E 2024E

Mobile content

PC online

Console

Global game market continuing to expandMobile and Consumer markets driving growth

2. Growth Strategies (Market Overview)

Video Game Market

Market set to break $220 billion

(100 million USD)

（CY）

1,222

2,264

1,981

2,198

1,812

1,4681,655

2,113

E: Estimate *Source ： Data prepared from International Development Group


3. Forecast for FY3/21

*In as much as possible, forecasts have been calculated using reasonable estimates at the present time and with consideration given to the international

situation surrounding the spread of COVID-19.


2020/3 2021/3 Plan Difference

Net sales 81,591 85,000 3,409Operating income 22,827 25,500 2,673Operating margin 28.0% 30.0% -Ordinary income 22,957 25,500 2,543

Net income attributable to owners of the parent 15,949 18,000 2,051

Aim for eight consecutive years operating income growthdriven by stable growth of the Digital Contents business

Expect sales and profit growth YoY due to contributions such as major new releases and catalog sales in the Consumer business

Earnings per share forecast: ¥168.62 Dividend forecast: interim dividend of ¥20 and year-end dividend of ¥25

resulting in a ¥45 dividend for the fiscal year

3-1. Forecasts for FY3/21

(million yen)


1. Undetermined factors that may affect our outlook for this fiscal year1) Effect on content development process2) Timing of reopening for our stores/arcades and impact on demand3) Impact on demand at pachinko/pachislo halls due to voluntary suspension of

operations4) Delay/cancellation of esports tournaments and events

2. Actions by Capcom1) Implementing preventative measures such as work from home, as well as hand-

washing, gargling, and mask-weaning for employees2) Thoroughly streamlining content development process to minimize impact

Focus on growing sales for already-released new titles and catalog titles by further promoting digital sales, which exceeded 20 million units last fiscal year.

Concerning FY3/21 Consolidated Business Forecast

3-2. COVID-19 Impact and Response


4. Business Segments Highlights


4-1. Digital Contents


Actively leverage major brandsBolster catalog earnings through pricing strategies

• Expand pipeline with multiple major new releasesResident Evil 3 unit sales break cumulative 2.5 million

• Monster Hunter: World now exceeds cumulative 15.5 million units sold; along with Monster Hunter World: Iceborne, aim to grow ongoing sales

• Work to maximize catalog sales through digital strategy

4-1. Digital Contents – Strategic Objectives and Plan (1)

Consumer Strategies

Mobile Strategies

• Work to grow ongoing titles from previous fiscal year as well as launch new titles

• Pursue research into 5G technologies in preparation for wider adoption

Resident Evil 3


2018/3 2019/3 2020/3 2021/3 Plan50 61 35 13

24,400 25,300 25,500 28,00019,400 21,600 21,450 24,95012,900 15,300 20,550 23,50011,000 14,200 18,200 18,000

Major titles

New Monster Hunter: WorldMarvel vs. Capcom: Infinite

Resident Evil 2Devil May Cry 5 Monster Hunter World: Iceborne Resident Evil 3

(more)

Catalog Resident Evil 7 biohazardMonster Hunter Generations Ultimate

Monster Hunter: WorldResident Evil 7 biohazard

Monster Hunter: WorldResident Evil 2Devil May Cry 5Street Fighter V

Resident Evil 7 biohazard

Monster Hunter World: IceborneResident Evil 2

Monster Hunter: World

Catalog unitsDigital units

New Titles (SKU)Total unit sales

Overseas units

Expect increase in unit sales from bothmultiple major new titles and back-catalog sales


FY3/21 Unit Sales Plan for the Consumer business(units in thousands)

*Includes distribution titles


2019/3 2020/3 2021/3 Plan Difference829 599 669 70

Breakdown Consumer

359 129 159 30410 426 450 24

Digital license only 26 20769 555 609 54

23 44 60 1637

233 241 283 4228.1% 40.3% 42.3% -

Net sales

Operating margin

PackageDigital (incl. digital license)

Consumer total

Mobile ContentsPC Other

Operating income

Digital Contents Plan

(100 million yen)


Release multiple major new titlesAnticipate increase in sales and profit driven by Consumer business

*Digital license indicates one-time income from providing content etc. to online platforms*The PC Others sub-segment has been merged with Consumer as of FY3/20


4-2. Arcade Operations


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2013 2014 2015 2016 2017 2018

over 101machines

51～100 machines

under 50 machines

4,564

4,222 4,338

4,620

4,859

5,201

3,000

3,500

4,000

4,500

5,000

5,500

2013 2014 2015 2016 2017 2018

Overall size of market recoveringHowever, expect COVID-19 impact to manifest going forward

7,732arcades63.5％

4,435 arcades 36.5％

Number of arcades slowly decreasing

Market size recovering

7,450arcades46.4％

8,619arcades53.6％

4-2. Arcade Operations – Market Overview

*Source: Amusement Industry Survey *Source: Amusement Industry Survey（FY）（FY）

(100 million yen)

(stores)

Amusement Arcade Market Sales Number of Amusement Arcadesby number of machines


2019/3 2020/3 2021/3 Plan Difference

Net sales 110 120 105 -15Operating income 10 12 0 -12Operating margin 9.9% 10.0% 0.0% -Same store sales ＋2% ＋3% -18% -

Arcade Operations Strategy Streamline existing operations while exploring new store formats Plan: same store sales: -18%; openings: 3, closings: 0, total: 43 stores Expand merchandising stores to raise brand awareness and generate revenue

opportunities

Adhere to call for temporary closures due to spread of COVID-19Monitor situation while considering operations going forward

4-2. Arcade Operations – Strategic Objectives and Plan

Arcade Operations Plan (100 million yen)

Capcom Store Tokyo


4-3. Amusement Equipments


6,571 6,524 6,130 5,258 5,157 5,039

4,774 4,274

3,697

3,576

2,434 1,684

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

PachisloPachinko

7,591

8,834

6,723

10,798

9,827

11,345 The pachinko and pachislo markets shrank

Pachislo market continues downward trend, howeveranticipate turnaround in FY19 market from impact of current models

4-3. Amusement Equipments – Market Overview

Pachinko & Pachislo Machines Market(100 million yen)

（FY）*Source: Manufacturer sales base complied by Capcom using Pachinko Maker

Trends (2018, 2019); Yano Research Institute Ltd.


Aim to optimize number of new releasesbased on operational status of pachislo halls

4-3. Amusement Equipments – Strategic Objectives and Plan

Pachinko & Pachislo Strategy Release models utilizing our popular IP

Pachislo Machine Unit Sales Plan: one model; 15,000 units(one model sold 20,000 units in previous year)

Amusement Equipments Plan

(100 million yen)

2019/3 2020/3 2021/3 Plan Difference

Net sales 34 65 45 -20Operating income -26 20 17 -3Operating margin - 31.9% 37.8% -

2019/3 2020/3 2021/3 Plan Difference

Models 5 1 1 -Unit sales 7.8 20 15 -5

(units in thousands)


4-4. Other Businesses


Pursue Single Content Multiple Usage Strategy backed bysales growth of globally-established major IP

4-4. Other Businesses – Strategic Objectives and Plan (1)

Character Contents Strategy Expand earnings through merchandising and collaborations

Release merchandise such as apparel and figures featuring popular IP

Release Biohazard RE:3 Special Soundtrack with launch of game

Grow brand awareness through visual media and theme park collaborations

Hollywood film adaptation Monster Hunter scheduled for September 2020 release

©CONSTANTIN FILM Production Services GmbH.


2019/3 2020/3 2021/3 Plan Difference

25 30 31 1Character Contents 27 30 3

eSports 3 1 -2

8 5 7 2Character Contents 15 19 4

eSports -10 -12 -2

31.5% 18.3% 22.6% -

Net sales

Operating income

Operating margin

Continue activities to grow esportsInvest with an eye toward future monetization of business

4-4. Other Businesses – Strategic Objectives and Plan (2)

Other Businesses Plan(100 million yen)

eSports Strategy Expand activities for growing stakeholder base with medium- to long-term mindset

Hold domestic and overseas tournaments online because of COVID-19

Aim to hold tournaments for female players to further grow demographics

fiscal year 2019 financial results presentation · capcom public relations & investor relations...

Documents