Fiscal Year 2019 Financial Results Presentation · Capcom Public Relations & Investor Relations...
Transcript of 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
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President and Chief Operating OfficerHaruhiro Tsujimoto
Capcom Co., Ltd.
May 12, 2020
Fiscal Year 2019Financial Results Presentation
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We would like to offer up our most heart-felt sympathies to all who have been affected by COVID-19
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1. Medium-term Management Objective
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101 102 105 120
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29 34
66 77
88
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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)
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100
200
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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)
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• 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
1-2. Medium-Term Goals (2)
(ten thousand units)
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• 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
1-2. Medium-Term Goals (3)
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123
101 102 105 120
136
160
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67
29 34
66 77
88
109125
159
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0
25
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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)
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2. Market Overview
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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
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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.
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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)
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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
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4. Business Segments Highlights
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4-1. Digital Contents
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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
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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
4-1. Digital Contents – Strategic Objectives and Plan (2)
FY3/21 Unit Sales Plan for the Consumer business(units in thousands)
*Includes distribution titles
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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)
4-1. Digital Contents – Strategic Objectives and Plan (3)
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
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4-2. Arcade Operations
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2,000
4,000
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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
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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
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4-3. Amusement Equipments
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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.
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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)
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4-4. Other Businesses
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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.
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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
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