Fiscal Year Ending March 2014 Financial Results Financial Summary (FY2013)
Profit increased for the fourth consecutive year ! Achieved all-time high financial results !! (Units:Millions of Yen)
FY2012 FY2013 YoY Change
Amount Ratio Amount Ratio Amount Ratio
Sales 34,639 100.0% 37,576 100.0% 2,937 8.5%
Operating 17.9% 19.0% 15.0% Profit 6,208 7,140 932
Ordinary 25.5% 28.6% 21.4% Profit 8,835 10,728 1,893 Net Income 5,656 16.3% 6,936 18.5% 1,280 22.6%
Includes approximately 1.2 billion Yen of SG&A expenses from goodwill amortization.
2 Major Titles and Events(FY2013)
Development
EVENT 70,000 Participants
Tecmo Koei Online Game / Social Game PS3/PS Vita Windows/PS4/PS3 PS3/PS Vita Over 26 Million Users SENGOKU Dynasty Warriors Nobunaga no MUSOU 4 Gundam : Reborn Yabou Souzou Uncharted Waters V 340,000 Units 220,000 Units Gallop Racer Animation Japan / Asia Japan / Asia 開 発:(株)コーエーテクモゲームス 3 ※English name is tentative 発売元:(株)バンダイナムコゲームス ©創通・サンライズ 戦国無双SP© ~真田の章~製作委員会 TECMO© KOEI GAMES CO., LTD. All rights reserved. Sales and Operating Profit by Business Segment (FY2013)
FY2013 (Units:Millions of Yen)
Game Online & Media & Pachislot & Amusement Corporate & Consolidated Others Total Software Mobile Rights Pachinko Facilities Elimination Total
Sales 25,441 6,423 2,071 2,278 1,796 448 38,460 884 37,576
Operating Profit 6,017 1,073 202 923 90 76 8,382 1,242 7,140
FY2012 (Units:Millions of Yen)
Game Online & Media & Pachislot & Amusement Corporate & Consolidated Others Total Software Mobile Rights Pachinko Facilities Elimination Total
Sales 23,718 5,480 1,741 2,195 1,932 234 35,303 664 34,639
Operating Profit 6,229 549 17 642 157 52 7,614 1,405 6,208
4 Net Sales by Region (FY2013)
(Units: Millions of Yen) FY2012 FY2013 YoY Change
Area Amount Ratio Amount Ratio Amount Ratio Japan 28,942 83.6% 31,311 83.3% 2,369 8.2% Overseas 5,697 16.4% 6,265 16.7% 568 10.0% North America 2,585 7.5% 2,610 6.9% 25 1.0% Europe 1,664 4.8% 1,726 4.6% 62 3.7% Asia 1,448 4.2% 1,929 5.1% 481 33.2% Grand Total 34,639 100.0% 37,576 100.0% 2,937 8.5%
5 Sales Units by Region (FY2013)
(Thousands of Units) FY2012 FY2013 YoY Change
Area Units Ratio Units Ratio Units Ratio Japan 3,595 54.6% 3,730 57.2% 135 3.8% Overseas 2,990 45.4% 2,795 42.8% 195 6.5% North America 1,635 24.8% 1,210 18.5% 425 26.0% Europe 860 13.1% 835 12.8% 25 2.9% Asia 495 7.5% 750 11.5% 255 51.5% Grand Total 6,585 100.0% 6,525 100.0% 60 0.9%
6 Major Expenses, Capital Expenditure and Depreciation Expenses (FY2013)
Capital Expenditure and Sales Ratio Depreciation Expenses
(%) (Millions of Yen) COG Depreciation 70 2500 Expenses SG&A Capital 59.8% Expenditure Operating Profit 60 57.0% Ratio 2000 1,862 50 Improved 2.8 points
1500 40 Increased 1.7 points
30 24.0% 1000 931 22.3% 894 20
500 10 Increased 1.1 points 292 17.9% 19.0% 0 0 FY2012 FY2013 FY2012 FY2013
7 TECMO KOEI HOLDINGS CO.,LTD. Consolidated Plan (Fiscal Year Ending March 31, 2015)
8 Financial Summary (Plan FY2014)
(Units:Millions of Yen) FY2013 FY2014 YoY Change
Amount Ratio Amount Ratio Amount Ratio
Sales 37,576 100.0% 38,000 100.0% 424 1.1%
Operating 19.0% 21.1% 12.0% Profit 7,140 8,000 860
Ordinary 28.6% 28.9% 2.5% Profit 10,728 11,000 272 Net Income 6,936 18.5% 7,000 18.4% 64 0.9%
Includes approximately 0.4 billion Yen of SG&A expenses from goodwill amortization.
9 Sales and Operating Profit by Business Segment (Plan FY2014)
FY2014 (Units:Millions of Yen)
Game Online & Media & Pachislot & Amusement Corporate & Consolidated Others Total Software Mobile Rights Pachinko Facilities Elimination Total
Sales 25,500 7,000 2,200 2,000 1,800 500 39,000 1,000 38,000
Operating Profit 6,100 1,150 250 700 100 100 8,400 400 8,000
FY2013 (Units:Millions of Yen)
Game Online & Media & Pachislot & Amusement Corporate & Consolidated Others Total Software Mobile Rights Pachinko Facilities Elimination Total
Sales 25,441 6,423 2,071 2,278 1,796 448 38,460 884 37,576
Operating Profit 6,017 1,073 202 923 90 76 8,382 1,242 7,140
10 Net Sales by Region (Plan FY2014)
(Units: Millions of Yen) FY2013 FY2014 YoY Change Area Amount Ratio Amount Ratio Amount Ratio Japan 31,311 83.3% 31,400 82.6% 89 0.3% Overseas 6,265 16.7% 6,600 17.4% 335 5.3% North America 2,610 6.9% 2,700 7.1% 90 3.4% Europe 1,726 4.6% 1,900 5.0% 174 10.1% Asia 1,929 5.1% 2,000 5.3% 71 3.7% Grand Total 37,576 100.0% 38,000 100.0% 424 1.1%
11 Sales Units by Region (Plan FY2014)
(Thousands of Units) FY2013 FY2014 YoY Change Area Units Ratio Units Ratio Units Ratio Japan 3,730 57.2% 4,320 69.0% 590 15.8% Overseas 2,795 42.8% 1,940 31.0% 855 30.6% North America 1,210 18.5% 1,030 16.5% 180 14.9% Europe 835 12.8% 550 8.8% 285 34.1% Asia 750 11.5% 360 5.8% 390 52.0% Grand Total 6,525 100.0% 6,260 100.0% 265 4.1%
12 Major Expenses, Capital Expenditure and Depreciation Expenses (Plan FY2014)
Capital Expenditure and Sales Ratio Depreciation Expenses
(%) (Millions of Yen) COG Depreciation 60 2,500 Expenses Capital SG&A Expenditure Operating Profit 50 57.0% 55.6% Ratio 2,000 1,862 Improved 1.4 points
40 1,500 Improved 0.7 points 30 24.0% 23.3% 1,000 894 850 20 19.0% 21.1% 500 450 10 Increased 2.1 points
0 0 FY2013 FY2014(Plan) FY2013 FY2014(Plan)
13 Tecmo Koei Group Management Policy & Strategy
14 Profit increase for the fourth consecutive year. Achieved the highest sales and profit ever!
(Millions of Yen) Achieved “IP Creation and Expansion”!! (Millions of Yen) 40,000 10,000
売上高Sales Operating Profit 37,500 Operating 8,000 営業利益Profit
35,000 6,000 Sales
32,500 4,000 30,000
2,000 27,500
25,500 0 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014(Plan) • Success of “Nobunaga’s Ambition” 30th anniversary project. • New “TOUKIDEN” IP became a 550,000 units hit • Media & Rights segment : Remains in the black • Pachislot & Pachinko segment : Original IP in good shape (CRYuhouRUSH)
15 Management Policy FY2014 Further IP Creation and Expansion In order to achieve growth and profitability, aim for integrated progress focused on IP through the creation of new IP and expansion into multi areas.
Multi-platform Expansion into many genres IP
Tie-ups Collaborative efforts Animation Comics Toys Food service
Movies Publishing Apparel Goods Local TV Music Food community 16 Further IP creation and Expansion
PS Vita / PSP iOS / Android 17 TECMO© KOEI GAMES CO., LTD. All rights reserved. Further IP creation and Expansion
• Strengthened IP through IP expansion centered on animation • Expanded business through synergy between Game and Animation
18 ©TECMO KOEI GAMES CO., LTD. All rights reserved. 戦国無双SP© ~真田の章~製作委員会 星奏学院オーケストラ部 ガスト/エスカ&ロジーのアトリエ製作委員会 © © Priority Policy-1 Make a big hit in smartphone games!
iOS / Android iOS / Android iOS / Android Strongly promoted “IP Creation and Expansion” in the smartphone market! 19 TECMO© KOEI GAMES CO., LTD. All rights reserved. Priority Policy-2 Promote and success at New and Major collaboration “Hyrule Warriros”(temp.) Wii U Scheduled for release on 2014 Summer in JAPAN
Prepare for another major collaborative title in the second half !! 20 ©Nintendo © TECMO KOEI GAMES CO., LTD. All rights reserved. Licensed by Nintendo Priority Policy-3 To achieve long-term growth and profitability With controlling profitability from series titles, strengthening long and mid- term activities in all business segments under the idea of “Further IP Creation and Expansion”
Multi-platform Creation Expansion into many genres
Tie-ups Expansion Collaborative efforts
Expand wide ! Series tiles
Present Future 21 Prepare to achieve long-term growth and profitability
• Expand into the Asian market for Smartphone / Browser games Beginning with “Uncharted waters V”, release titles successively into the Asian market, including China and Taiwan • Prepare collaborative titles for Western market
Collaborative titles for Western market
More to come!
22 TECMO TECMO© KOEIKOEI GAMESGAMES CO.,CO., LTD.LTD. AllAll rightsrights reserved.reserved. Achieving growth and profitability
• Extension of series titles and collaborative titles • Support new platform PS4 “WARRIORS OROCHI3 Ultimate” Xbox One • Expansion of download business “DEAD OR ALIVE 5 Ultimate” Free to Play over 1million downloads! • Promote multi-platform
23 TECMO© KOEI GAMES CO., LTD. / Team NINJA All rights reserved. Achieving growth and profitability
• Promote our own platform
(Ten thousands) 90 80 Over 500,00 0 Users 70
60
50
40
30
20
10
0 March March March 2012 2013 2014 Expanded contents to various internal and external platforms and
achieved growth and profitability 24 ©TECMO KOEI GAMES CO., LTD. All rights reserved. Cost reduction / Business efficiency
Expenses to Sales Ratio COG Ratio (%) 70 Net SG&A Ratio Operating Profit Ratio 60 62.0% 59.8% Compare with FY2011 50 57.0% 55.6% Improve 6.4 points
40
Compare with FY2011 30 Improve 4.9 points 17.2% 19.0% 21.1% 17.9% 20
Compare with FY2011 Improve 1.2 points 10 16.1% 16.0% 16.2% 16.3%
0 FY2011 FY2012 FY2013 FY2014(Plan)
25 Foreign currency rate of Investment Assets
Foreign currency rate of Investment Assets
Foreign currency Yen (%) 100
80 80% 70% 60 65% 60%
40 50%
20
0 FY2011 FY2012 FY2013 FY2014(Plan) Future In consideration of the underlying weak yen trend and the contribution of financial income, the schedule of reducing foreign currency rate to 50% is under review. 26 Toward high growth and profitability
Sales / Operating Profit / Ordinary Profit Ratio
Ordinary (%)
30 経 Sales 常 25.5% 28.6% 28.9% Pro fi Operating Profit 利 25 益 Ordinary Profit 率t Ratio ( 21.0% % 20 ) Ordinary (Millions of Yen) (Millions of Yen) 50,000 20,000
売 40,000 Profi
Sales 15,000 上 高 30,000 / t ( 10,000 Ordinary Pro 百 万 20,000 円 5,000 ) 10,000
0 0 f
FY2011 FY2012 FY2013 FY2014(Plan) it Aim to promptly achieve higher growth and profitability - an ordinary profit ratio of over 30% 27 Toward high growth and profitability
Dividend Policy:50% payout ratio or dividend of 50 yen Dividend / Net Income 経 (Dividend:Yen) (Net Income:Millions of Yen) 常 80 10,000 利 Dividend 益 70 Net Income 率 ( 8,000 % 60 ) 50 6,000 40 Yen 41 Yen 40 売 33 Yen 上 4,000 高30 27 Yen ( 百20 万 2,000 円10 )
0 0 FY2011 FY2012 FY2013 FY2014(Plan) Aim to increase annual dividend to the level of 50 yen!! 28 This document contains statements regarding future objectives, beliefs and current expectations of TECMO KOEI HOLDINGS CO., LTD. with respect to its financial results. Such statements imply risks and uncertainties and no guarantee of future performance.
※The Other company name, product name, logo mark, and service name in this document are trademarks or registered trademarks of each company.