Top page > Capcom's Value Creation Activities > Main Financial and Non-Financial Highlights

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Main Financial and Non-Financial Highlights

Financial Capital

(1)Net Sales 37.1%DOWN 64,277 million yen

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Capcom's capital investment is mainly used to (1) purchase development equipment, (2) expand business offices in Japan and overseas and (3) open new amusement arcade facilities. The reason investment increased between the fiscal years ended in March 2007 and 2009, and again in March 2013 was to upgrade our development environment in line with the transition to next generation game consoles in the Consumer area. In the fiscal years ended in March 2015, investment temporarily increased due to the construction of two new development buildings to accommodate the increase in developers required to expand our title lineup.

(2)Operating Income 2.7%UP 10,582 million yen / Operating Margins 6.4 point UP 16.5%

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As with sales, structural reforms in the fiscal years ended in March 2004 caused operating income to grow steadily until the fiscal years ended in March 2009. Despite a temporary decline in income due to postponed sales of major titles in the fiscal years ended in March 2010, we have promoted significant improvements to our earnings composition since in the fiscal years ended in March 2011 aimed at enhancing DLC sales and efficient development investment. During these reforms, until in the fiscal years ended in March 2014 there was little growth in operating income and operating margins. In the fiscal years ended in March 2015, despite a substantial decline in sales, earnings increased due to improved cost ratios, mainly in Consumer and Pachinko & Pachislo business, resulting in dramatically improved earnings and an operating margin of 16.5%.

(3)Net Income (Loss) 92.1% UP 6,616 million yen

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The main reasons for the decline in income during in the fiscal years ended in March 2010, 2013 and 2014 include (1) a complete overhaul to the Amusement Equipments' underperforming profit structure, (2) development structure revisions in line with enhanced Consumer business digital download and (3) strengthened Mobile Contents business management capabilities in line with development organization integration, which resulted in the recognition of special losses on restructuring and business restructuring expenses. In the fiscal years ended in March 2015, we began seeing results of development organization reforms conducted during the previous three years and special losses were eliminated, resulting in a significant increase in income.

(4)Dividend per Share/ Dividend Payout Ratio Dividend per share (yen) ±0 40.00円,  Dividend Payout Ratio (%) 31.5 point DOWN 34.0%

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Capcom has its fundamental dividend policy of providing a continued and stable dividend to the shareholders. In accordance with its policy, an annual dividend of 20 yen per share was paid from the fiscal year ended March 1998 to that ended March 2006. Cash dividend per share for the fiscal year ended March 2007 to 2008 was raised to 30 yen thanks to its stable revenue base brought by its structural reform. Moreover, we continued to incrementally increase dividend payments in line with earnings based on our policy of providing stable dividends aiming for a payout ratio of 30%; from the fiscal year ended March 2009, the annual dividend was increased to 35 yen and again up to 40 yen since the fiscal year ended March 2011.

(5)Capital Investments Costs 147.1% UP  5,564 million yen

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Capcom's capital investment is mainly used to (1) purchase development equipment, (2) expand business offices in Japan and overseas and (3) open new amusement arcade facilities. The reason investment increased between the fiscal years ended in March 2007 and 2009, and again in March 2013 was to upgrade our development environment in line with the transition to next generation game consoles in the Consumer area. In the fiscal years ended in March 2015, investment temporarily increased due to the construction of two new development buildings to accommodate the increase in developers required to expand our title lineup.

(6)R&D Investment Costs 5.2% DOWN  25,301 million yen, Internal R&D Ratio(%) 5.9 point UP 70.0%

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The creation of unique and innovative content is the source of Capcom's corporate growth, thus we place a priority on business investment. To achieve our medium-term business goals, 80% of more of our annual investment costs are allocated to the Digital Contents business to expand the lineup of major titles. In the past few years, although development costs have been increasing in the Consumer area due to the rise of high-performance game consoles, we have been promoting development efficiency through improved employee utilization rates, enabling us to control investment cost expansion. As a result, major increases in investment costs since the fiscal year ended in March 2008 have been gradually decreased from a peak of 30 billion yen. Going forward, we aim to contain investment costs to around 30 billion yen.

(7)(Millions of yen) 4.4 point UP 9.8%

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From the fiscal years ended in March 2005 to 2011, although net assets grew due to increases in retained earnings and common stock through the exercise of conversion rights of convertible bonds, we had been able to maintain ROE around 14% due to stable growth in net income. From the fiscal years ended in March 2010, 2013 and in the fiscal year ended in March 2014, this figure declined due to decreases in net income from the recognition of special losses on restructuring and business restructuring expenses. The elimination of special losses in the fiscal year ended in March 2015 caused income to grow and ROE to once again increase.

Main Capital Support for Capcom's Business

Financial Capital

Funds procured from stock markets and financial institutions and funds generated from business activities

Fund procurement (Shareholders' equity/commitment lines)
Creation of net cash (Net sales/operating income/net income/ROE)
Alllocation/reinvestment (Dividends/payout ratio/capital investment/ development investment)

Production Capital

Buildings and equipment that underpin business activities; the social infrastructure required for business

Hardware manufacturer's game consoles
Smartphones and PCs Game platform expansion in line with adoption of high-performance devices
Cutting-edge development environment (capital investment) Construction of a new development base containing the latest equipment

Intellectual Capital

Software and branding used to create value

Number of million-seller titles Using cumulative total of 65 million-seller titles to create series
Content brand power Multimedia deployment of popular content (Single Content Multiple Usage)

Human Capital

The human skills, experience, drive and governance structures required to create value

Developers Promoting internal development through aggressive recruitment and cultivation of human resources
Proprietary development structure Enhanced development efficiency via increased employee utilization rates Creation of an environment where “staff can concentrate on development”
Promoting employee diversity Global utilization of the skills of women and foreigners

Society-Related Capital

Relationships, trust and mutual benefits with main stakeholders

Assessments from game users Recognition from Japan Game Awards, etc.
Membership in game industry associations
Relationships with a variety of stakeholders Educational support and other social responsibility activities Collaborations with local municipalities and other public institutions
Business partners Make use of one another's strengths to create new product value

Nature Capital

Environmental resources necessary for business activities

Energy conservation Reduce CO2 emissions, reduce energy consumption
Reducing waste and conserving resources Amusement equipment parts recycling Resources conservation through game digitization
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