Overview of Strategies and Plans Fiscal Year Ending March 31, 2010

Capcom Co., Ltd. Tokyo and Osaka Exchanges, First Section, 9697 Overview of Strategies and Plans Fiscal Year ending March 31, 2010 Capcom Public Relations & Investor Relations Section 0 Capcom Public Relations & Investor Relations Section 0 Forward-looking Statements Information in these materials concerning strategies, plans, outlooks and all other items except historical facts are forward-looking statements. These statements are based on certain assumptions that use reasonable judgments in accordance with information that is currently available. Actual performance may differ significantly from these statements for a variety of reasons. The operating results of all companies in the video and arcade game business may be highly volatile due to shifts in market conditions caused by changing user needs and other factors. Factors that may affect operating results include, but are not limited to: 1) the ability to introduce hit products, and the volume of sales, in the home video games business, which accounts for the majority of sales; 2) progress in developing new home video games; 3) the popularity of home video game players; 4) sales outside Japan; 5) changes in stock prices and foreign exchange rates; 6) alliances with other companies concerning product development, sales and other operations; and 7) changes in market conditions. 1 Capcom Public Relations & Investor Relations Section 1 < Contents > 1. The Strategy of Capcom ・・・P3 2. Home Video Games ・・・P8 3. Arcade Operations ・・・P19 4. Arcade Game Sales ・・・P24 5. Contents Expansion ・・・P27 6. Other Businesses ・・・P32 7. Forecasts for Fiscal 2009 ・・・P34 2 Capcom Public Relations & Investor Relations Section 2 11.. TThhee SSttrraatteeggyy ooff CCaappccoomm 3 Capcom Public Relations & Investor Relations Section 3 1-1. The Businesses of Capcom The Capcom business sphere is centered on content for home video and arcade games and encompasses many peripheral activities. % of Net Sales ：3% Home Video Games Business % of Net Sales： 68% ・Deepen relationships ※ Deepen relationships Development and sale of games for ・Content linked to with core fans home video game units Home Video Games ・increase brand value ※ Creation of new brands by developing original content Publishing, Video and Characters Online Games Business Business ※ Uses transplants of popular home video games ※ Products using characters in games ※ Movies, animation and plays based on games % of Net Sales ：15% Capcom’s Content Portfolio Arcade operations Business Mobile Contents Business ※ Uses transplants of games suitable for cell phones ・Feedback of data from operations ・Installation of Capcom products Pachinko & Pachislo Business Arcade Games Sales Business ※ developing machines internally using our game Contents ※developing the software for other companies ※ Development of arcade machines using Capcom content % of Net Sales ：5% % of Net Sales ：9% 4 Capcom Public Relations & Investor Relations Section 4 1-2. Example : Expansion of the contents “Street Fighter” Capcom can use its collection of powerful original game content for home video consoles as well as in many other businesses. Extensions to For casual game peripheral players businesses Arcade Video Game For cell phones The Home Video Games “Street Fighter Ⅳ” Developed and sold the original game Targeting Targeting people core fans The Content Brand other than game “Street Fighter” players Expansion/Revitalization The Hollywood movie Pachislo Machine © CAPCOM CO., LTD. / Based on Capcom's Street Fighter Video Games 5 Capcom Public Relations & Investor Relations Section 5 1-3. Capcom’s Competitive Edge Global popularity backed by many well-known brands for home video games ■ 1. A lineup of powerful titles (1) Successful home video games along with a large volume of proprietary content, the key to horizontal growth ・”Resident Evil” series: 40 million units ・”Street Fighter” series: 27 million units ・”Devil May Cry” series: 10 million units ・”Monster Hunter” series: 8.5 million units ・”Lost Planet” series: 2.7 million units ・”Dead Rising” series: 1.9 million units ※as of March 31, 2009 ■ ２. Strong Expansion in overseas market (1) Consistent release of double-platinum hits in North America and Europe, which have excellent growth prospects. (2) Sales of major game titles in FY2008 are 90% overseas, 10% Japan (as of March 31, 2009) ■ ３. A world leader in game development and technology (1) Rather than relying solely on our major game titles, we create original content every year to establish new sources of growth. (2) Basic research involving game development is another strength; we are now using the MT Framework, a highly advanced software development tool that we created to facilitate producing games for multiple platforms. 6 Capcom Public Relations & Investor Relations Section 6 1-4. Financial Results for 5 years Structural reforms have helped produce three years of consecutive growth in sales and earnings. We expect more growth in FY2009 from the multiple use of content. ■Financial Result for 5 years 【Medium-term goals】 FY2009 forecast: Record sales of Annual growth of 10% for Net Sales ¥95bn and operating income of ¥15.5bn Operating margin of at least 15% （100 Million Yen）（100 Million Yen） 1000 950 180 18.0% 918 155 900 160 16.0% 830 146 800 745 140 131 14.0% 702 700 120 12.0% 600 96 Operating 100 10.0% Income 500 Operating 80 8.0% 400 65 Margin 60 6.0% 300 40 4.0% 200 100 20 2.0% 0 0 0.0% 2006/3 2007/3 2008/3 2009/3 2010/3（E） 2006/3 2007/3 2008/3 2009/3 2010/3（E） 7 Capcom Public Relations & Investor Relations Section 7 22.. HHoommee VViiddeeoo GGaammeess 8 Capcom Public Relations & Investor Relations Section 8 2-1 . Market Overview – Size of the Video Game Software Market In 2008, growth overseas supported expansion of the home video game market despite a market contraction in Japan. ■ Total Sales of Home Video Game Software （Unit: US$ 100 Million） 300 Growth expected in 2009 because of market expansion outside Japan. 28 250 32 29 43 30 200 119 110 31 110 Japan 35 27 99 105 Europe 150 27 North America 24 71 63 100 55 66 18 43 19 31 126 128 112 50 27 100 100 70 75 77 70 79 49 33 0 （Year) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E 2010E 2011E （ 79 98 137 156 175 163 181 242 269 276 252 236 annual totals in US$ 100 millions） ※E: Estimate ※Source ： International Development Group 9 Capcom Public Relations & Investor Relations Section 9 2-2 . Market Overview – Market Share in Japan (2008) Market share and ranking in Japan increased as “Monster Hunter Freedom 2G” was the number-one hit among video games in Japan. ■ Market Share in Japan (CY2008) （Million Yen） Sales Share Growth Rate 1. Nintendo 95,000 28.9% 0.5% 2. Namco Bandai 47,000 14.2% 3.6% 3. Konami 29,000 8.7% 1.3% 4. Capcom 24,000 7.3% 0.3% 5. Square-Enix 20,000 6.1% -4.4% 6. Sega 15,000 4.6% 0.4% 7. Pokemon 15,000 4.6% 1.1% 8. SCE 9,000 2.8% - 9. Koei 9,000 2.7% -0.5% 10. Level Five 6,000 1.7% - Others - 18.4% -1.1% Total - 100.0% - ※Source: EnAternbrnauinal Console Research Data 10 Capcom Public Relations & Investor Relations Section 10 2-3 . Market Overview – Market Share in North America and Europe(2008) Market share and ranking in overseas markets declined due to the absence of introductions of major titles during the calendar year. ■ Market Share in North America (CY2008) ■ Market Share in Europe (CY2008) （Unit: $1000）（Unit: $1000） Sales Share Growth Rate Sales Share Growth Rate 1. Nintendo 587,908 17.7% 1.9% 2. Electronic Arts 476,150 14.4% -3.8% 3. Activision 326,700 9.9% 1.4% 4. UBI Soft 294,080 8.9% -0.5% 5. Sega 234,558 7.1% 1.8% 6. Take two 233,832 7.1% - 7. THQ 164,527 5.0% -1.4% 8. Microsoft 133,678 4.0% -2.0% 18 Capcom 102,353 0.93% -0.50% 20 Capcom 27,237 0.8% -0.6% - Others 25.1% - Total 100.00% - Total 100.0% - Source: The NPD Group/ Retail Tracking Service compiled by Chart-Track, copyright ELSPA (UK) Ltd. ＊Data for other companies not shown due to request from company supplying this information. 11 Capcom Public Relations & Investor Relations Section 11 2-4. Objectives of the Home Video Games Business Capcom has established three business strategies in order to achieve its objective, and will execute these strategies by leveraging the many strengths created by reforming business operations. ■ Medium-term goal Aiming for overseas sales ratio of 65% in line with the scale of overseas markets 1. Hardware strategy 2. Brand strategy 3. Global strategy ・・・Conduct development activities Multi-platform approach Create new franchises Couotnsdiduec tJ adpeavnelopment activities ・Enlarge the range of game genres o・uRtesindfeo Jracpe atnhe framework for overseas sales ・Reinforce the framework for overseas sales ■ The 60 Month Map ■ Reinforce the sales organization ・・PPoossititioionn tthhee aabboovvee ssttrraatteeggieiess oonn tthhee mmeeddiiuumm--tteerrmm ttititlele mmaapp wwitithh ・・BBuuiilldd aa ppoowweerrffuul l oorrggaanniizzaattioionn bbyy eexxppaannddiinngg ddirireecctt ssaaleless aanndd PPRR aa ffiivvee--yyeeaarr oouuttloloookk,, aanndd ccoonnssttaannttllyy uuppddaattee ggooaallss aaccttiivvititiieess tthhaatt mmaattcchh tthhee iinnfflluueennccee ooff rreettaaiil l ssttoorreess aanndd ggaammee ttititlleess.. ■ MT framework ■ Two-stage development approval system ・・・CCoonndduucctt uunniiffiieedd ddeevveeloloppmmeenntt aanndd ssiimmuultltaanneeoouuss llaauunncchheess ooff ・SSeeppaarraattee aapppprroovvaal l mmeeeettiinnggss ffoorr ddeevveeloloppmmeenntt ooff pprroottoottyyppeess aanndd ooff commercial products to rigorously examine quality and profitability. ttititlleess ffoorr t thhee XXbbooxx 336600,, PPSS33 aanndd PPCC pplalattffoorrmmss.. commercial products to rigorously examine quality and profitability. 12 Capcom Public Relations & Investor Relations Section 12 2-5. Home Video Games – Previous Fiscal Year Targeting a broad range of users by selling strategic titles in Japan and overseas ■ 1. Success of major game franchises outside Japan Increased overseas sales volume by launching strategic titles ・ “Street Fighter IV” and “Resident Evil 5” generated combined shipments of about 7 million units; overseas markets were 90% of sales of these titles, matching the overseas market share of the video game market.

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