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Environment/ Social

ESG Information

Enviromental

New Building Innovations

10% Reduction in CO2 Emissions Throughout Our New Buildings

The new R&D Building #2 and Capcom Technical Center utilize the energy-conserving equipment indicated below. As a result, we expect to reduce CO2 emissions by approximately 10%*overall.

Energy-Conserving Effects of R&D Building #2 and Technical Center Equipment*

1. Exterior thermal insulation 5% reduction
2. LED lightings 40% reduction
3. Motion/daylight sensors
(Only motion sensors installed in R&D Building #2)
20
%削減
4. Air conditioning/heating monitors 30

%削減
5. Displacement air conditioning system
(Motion capture studio)
40% reduction

* Assumes energy consumption of 100% without introduction of this equipment.

Innovations in Product Distribution

Sharing Distribution Networks with Other Companies in the Industry

Sharing distribution networks with other companies in the same industry when shipping products enables the efficient supply of products. As a result, we are able to realize reductions in packing materials, fuel and emissions.

Paperless Instruction Manuals

Older game consoles included a printed instruction manual inside the package, but with current game consoles, manuals are now included as data within the software as a way to save paper. This enables us to eliminate approximately 15 million game units' worth of paper manuals shipped annually.

社会 Social

For the Healthy Development of Young People

Compliance with the CERO Rating System and Endorsement of Guidelines

The NPO Computer Entertainment Rating Organization (CERO) was created to provide age-appropriate ratings for video games. Capcom complies with the CERO rating system and rules.

The video game industry voluntarily restricts game content and sales methods to limit access to sexual and violent content for the healthy development of young people. Age ratings on game packaging provides purchasers with information pertaining to the age appropriateness of game content, classified into one of five categories in Japan: All ages (category A), 12 years or older (category B), 15 years or older (category C), 17 years or older (category D) and restricted to 18 years or older (category Z). CERO members voluntarily prohibit sales of category Z games to users under 18 years old, with 99.6% of retailers separating game displays by ratings category and checking purchaser identification to confirm age.*

In addition, the latest home video game consoles include a parental control function that enables parents to limit the online purchase and use of certain games according to their ratings.

Further, in regards to problems concerning paying for items in social games, an issue which has gained attention in recent years, Capcom endorsed the "Administrative Guidelines for Random Item Provision Systems in Smartphone Games" released by the Computer Entertainment Suppliers' Association (CESA) in 2016. As such, in regards to paid random item provision systems (paid gacha) widely used in the field of games provided over the internet via smartphone, Capcom has made the decision to provide environments which can be easily understood by users, such as generally displaying all items which can be acquired and their rates of appearance.

* From the results of "The 4th CERO Age-Based Ratings System Field Survey."

Basic Policies Regarding Business Transactions

Promotion of Fair Business Transactions Based on Each Regulation

Capcom has established its own "Regulations Concerning the Management of Purchasing Transactions" and "Regulations Concerning the Management of Outsourced Transactions" in order to carry out free competition and fair business transactions. In line with this, Capcom fairly evaluates conditions such as capability and cost to select suppliers and development outsourcers. In addition, as regards business transactions with specified involved parties such as subsidiaries, Capcom compares such business transactions with standard conditions and does not engage in transactions which would be disadvantageous to Capcom or which would unfairly profit the specified involved party.

Promotion of Diversity

Initiatives Aimed at Improving the Work Environment for Women, Promoting Gender Equality and Proactively Hiring Foreigners

Capcom is currently engaged in initiatives aimed at improving the work environment for women, promoting gender equality and proactively hiring foreigners.

In terms of improving the work environment for women, we introduced systems enabling women to take a leave of absence before and after giving birth, childcare leave and shortened working hours, and promote their use throughout the company. In fiscal 2015, 24 employees utilized the childcare leave system. The utilization rate among women was 100% (in fiscal 2014, 21 employees utilized this system, of which five were men and the utilization rate among women was 100%). The return rate after childcare leave was also high. In fiscal 2015, 17 employees returned to the workplace. Excluding those still on leave, 94.4% returned (in fiscal 2014, 17 employees returned, a return rate of 94.4%). As a result, in the Japanese game industry, known for being a male-dominated industry, nearly 16% of Capcom’s developers are women, and we have 24 female managers (representing 10.3% of managers overall). Further, Capcom has drawn up a "General Employer Action Plan" based on the "Act for the Promotion of Women's Success" which aims for 1) women comprising no less than 20% of regular employees and 2) women in no less than 15% of management positions within a five year period by the end of fiscal 2021. To further increase the proactive involvement of women, we are hastening the establishment of a daycare facility in fiscal 2016. In recognition of Capcom’s efforts toward improving the workplace environment for women, since 2012 we have earned the "Kurumin" mark, the symbol of a "company supporting childcare," from the Ministry of Health, Labor and Welfare.

In terms of the proactive employment of non-Japanese citizens, Capcom is making efforts to strengthen overseas expansion capabilities including creating an English hiring website. We currently employ 91 foreigners (representing 4.0% of our employees). Going forward, we will create a system for improving motivation in an attempt to increase the ratio of foreign employees, including the support for career advancement and the promotion of non-Japanese citizens to management positions.

Graph: Ratio of Female Employees and Number of Female Managers

Providing Career Paths for Employees and Improving the Work Environment

Company-wide Training and Level-based Training

To provide career paths and improve the work environment, Capcom provides the following training.

Major Training Programs

Level-based training Early Career
  • Training for new hires
  • Mentor training
  • Follow-up training
Mid-level
  • Training for management candidates
Management-level
  • Management by Objectives (MBO)
Company-wide training Compulsory
  • Mental healthcare
  • Compliance training
  • Personal information training
Optional
  • English instruction

Corporate Governance and CSR

Action Criteria and Compliance-related Employee Education

The Capcom Code of Conduct calls for "free competition and fair trade," "respect for human rights and individuality and the prohibition of discrimination" and "environmental conservation and protection." To ensure a concrete understanding of these concepts, we created the Capcom Group Code of Conduct Handbook, which is distributed to all employees and contains illustrated case studies presented in an easily understandable Q&A format.

Images:Capcom Group Code of Conduct Handbook

Capcom Group Code of Conduct Handbook

We also make use of the company intranet to provide e-learning sessions on legal compliance and disseminate personal information protection rules to all employees.

Action criteria and compliance are the lynchpin of corporate governance and the foundation upon which we fulfill CSR. Capcom will continue to instill this understanding in all its officers and employees.

Occupational Health and Safety

Monthly Health and Safety Committee Meetings in Order to a Comfortable Work Environment

Monthly Health and Safety Committee meetings include the attendance of an employee representative, an observer and a company representative.

At these meetings, the results of hours worked are analyzed in terms of overtime and workload appropriateness, causal factors and improvement policies are discussed and occupational injuries and workplace environment conditions are reported to the committee to promote the creation of a comfortable working environment. Attention is also focused on prevalent illnesses and ailments common among game creators, with public health and industrial doctors regularly invited to perform physical exams and reexaminations to ascertain employee health conditions.

These activities have resulted in a steady increase in the number of employees submitting medical certificates for physical examinations and reexaminations each year.

Contributions to Regional Revitalization

Support Activities Using Popular Games to Attract Customers and Raise Awareness

Utilizing the power of our content to capture the attention of people, Capcom is engaged in the following four regional revitalization activities: 1) Economic promotion which supports the promotion of tourism industries; 2) cultural promotion which supports education concerning local history and culture; 3) the improvement of public order through coordination with the police; and 4) raising awareness about voting in elections in coordination with the Committee for Election Administration.

In 2015, Capcom supported historical and cultural education. Capcom concluded the Comprehensive Agreement to Promote Vitalization of Local Economy with the city of Kofu in Yamanashi Prefecture and implemented a variety of plans whose goal is to support the promotion of industry in the city as part of regional revitalization efforts until 2019, including providing the city with characters for premium gift certificates and the design for a character called "Kofu BASARA Shingen-kun" who will be the honorary head of a group for promoting Kofu tourism PR. (For details concerning the Comprehensive Agreement to Promote Vitalization of Local Economy, please see the separate booklet, The Latest Development Report.) Capcom also jointly sponsored a special exhibition of arms and armor connected to famous military commanders appearing in Sengoku BASARA at the Saitama Prefectural Museum of History and Folklore. In addition, Capcom collaborated in activities to spread awareness of the Kochi prefectural governor's election announced in November by offering Chosokabe Motochika, who appears in Sengoku BASARA, as a character for education on the election.

(Left) Kofu BASARA Shingen-kun / (Right) Commercials for Kochi Capcom Group Code of Conduct Handbook prefectural governor's election

Educational Assistance as a Game Company

Company Visits for Children and On-site Classes at Schools

Video games are a comparatively new cultural phenomenon about which there is little academic research. Rather than examining the educational aspects, discussions tend to focus on the detrimental effects of violent content. For example, some local municipalities have designated certain games to be harmful to the healthy development of young people. At the same time, the idea of a future career as a video game creator is very popular among children, and some schools have even begun to incorporate handheld video game consoles into the classroom in recent years.

As part of its social responsibility (CSR) efforts as a video game software producer and based around a desire to promote understanding in society of video games, Capcom accepts student visits to its offices, with a focus on elementary and junior high school students, and also actively conducts on-site classes at schools. At these events, Capcom conducts a program with two sessions: one is a career education support session which introduces the work done in a game software company and the difficulty and rewards of that work, and the other is a game literacy education support session which helps students use their own judgement to establish a healthy relationship with games. These programs have in turn been well-received in educational environments. Capcom has also incorporated opinions from educators to improve its educational efforts. In fiscal 2011, Capcom launched its second educational program, focused on the educational theme of career education support. In fiscal 2013, Capcom started a new class program on work and mathematics targeted towards elementary and junior high school students to help prevent children from losing interest in math, a challenge in recent years.

As a result of these efforts, Capcom has welcomed 2,437 children as part of 313 different field trips into its offices (as of the end of March 2016). Capcom has also held 91 on-site classes for some 9,095 students at schools such as Nara Prefectural Seisho Junior High School (as of the end of March 2016).

Images:An on-site class

An on-site class

Capcom School Visit Feedback

We received a wide range of comments after our Capcom school visits and student company visits.

  • "I realized that I was playing games too much. In the future, I want to decide how long I will play." (Elementary school student)
  • "Hearing my studies now will help me in the future makes me want to keep trying hard." (Junior high school student)
  • "Some parts were hard for a fourth grader, but everyone seemed really interested, such as students talking about it between each other after." (Elementary school teacher)
  • "As there are limited ways to get information on the game industry, from the perspective of career education I felt it was useful even for high school students." (Junior high school teacher at an integrated junior and senior high school)

Community Building Support for Senior Citizens

Regular Video Game Arcade Tours

Today, amusement facilities, otherwise known as video game arcades, are becoming increasingly popular among retired senior citizens as spaces for communication with other people. Since 2012, Capcom has held video game arcade tours on long public holidays and Respect-for-the-Aged Day for senior citizens where they can try out coin-operated games and crane games so that more people can make use of such facilities.

In addition, as part of efforts to create arcades where senior citizens can comfortably enjoy themselves, since 2012 Capcom has encouraged arcade staff to get the Service Assistant certification. Currently, 27 staff have received this certification.

Initiatives for the General Shareholders' Meeting

Making Shareholders' Meetings Lively and Facilitating the Exercise of Voting Rights

To ensure our General Shareholders' Meetings are lively, we hold our meeting about 10 days before the period when most Japanese companies typically hold their meetings in an attempt to encourage the attendance of as many shareholders as possible.

In addition, voting rights can be exercised via computer, smartphone, mobile phone and Internet. Participating in the digital exercise of voting rights platform, institutional investors are ensured a sufficient amount of time to consider proposals starting on the day the convocation notices are distributed. We also post convocation notices in English on our corporate website to promote the exercise of voting rights by shareholders in Japan and overseas.

Basic Policies Regarding IR Activities

1. Disclosure Policies

Capcom believes that the timely and appropriate disclosure of information is the duty of every listed company, and that accountability to our shareholders and investors is indispensable from the perspective of corporate governance.

To this end, Capcom is promoting highly transparent management via the implementation of a basic policy for IR activities which involves (1) the establishment of a responsible investor relations framework, (2) the thorough disclosure of information, and (3) the creation of a system for the timely disclosure of information.

2. Disclosure Criteria

Capcom provides timely disclosure in accordance with the Securities and Exchange Law and other regulations including the "Rules on Timely Disclosure of Corporate Information" by Issuer of Listed Security (hereinafter Timely Disclosure Rules) stipulated by the Financial Instruments and Exchange Act and the Tokyo Stock Exchange.

It is our policy to disclose as much information as possible, including the disclosure of information not required by the Timely Disclosure Rules and other regulations, to accommodate our investors' needs. We also disclose information through our corporate website in an attempt to provide quick and fair disclosure. Shareholders are informed of operating results and business conditions through shareholder letters.

3. Quiet Period

To prevent the unauthorized disclosure of quarterly earnings information prior to official announcements, Capcom has established a quiet period starting approximately one month prior to the scheduled earnings announcement. During this period, we refuse all inquiries relating to our business performance. However, if significant changes to our earnings outlook are anticipated during the quiet period, we will disclose this information pursuant to the Timely Disclosure Rules and other regulations.

Third-Party Assessment of IR Activities

High Praise for Proactive IR Initiatives

In recognition of our ongoing pursuit of timely and appropriate information disclosure, our IR activities and various IR tools have received a number of awards from third-party organizations. In addition to receiving the Special Prize at the Nikkei Annual Report Awards 2015 in the fiscal year ended March 2016, our IR website was selected by Daiwa Investor Relations for the Internet IR Grand Prize and we ranked second overall in the Fiscal 2015 Listed Company Website Quality Ranking.

With an awareness of the importance of accountability, we will continue our efforts to earn the trust of investors and provide timely disclosure.

Fiscal 2015 Third Party Evaluations

Integrated Reports 18th Nikkei Annual Report Awards Special Prize
League of American Communications Professionals (LACP)
2014 Vision Awards Annual Report Competition,
Bronze Award, Technology/Software category
IR Website Daiwa Investor Relations Co., Ltd. 2015 Internet IR Grand Prize
Morningstar Inc./Gómez Consulting Ranked 4th overall in
Gomez IR Website Ranking 2015
Nikko Investor Relations Co., Ltd.
Ranked 2nd overall in the Fiscal 2015 Listed Company Website Quality Ranking

Making Use of Shareholder and Investor Opinions

Reflecting Results of Dialogues with Investors and Analysts in Management

Through meetings with investors and analysts, Capcom's IR Department attempts to promote an understanding of management policies, strategies and future outlook with them. Furthermore, their opinions are gathered and provided to management, and are utilized for corporate management going forward. As a company based in Osaka, proactive IR meetings with these parties enables us to minimize asymmetric information as we strive to achieve appropriate corporate value. This fiscal year, meetings with investors in Japan and overseas and conference calls amounted to 370 points of contact with investors.

In addition, we conducted various initiatives in accordance with our adoption of our Corporate Governance Code. Specifically, our General Affairs Section collaborated with the Investor Relations Section on takeover defense measures, engaged in numerous discussions with shareholders in Japan and overseas concerning the validity of their content, and made changes where necessary while promoting understanding of the necessity of these measures.
Furthermore, we set up small meetings between external directors and investors to facilitate frank discussions pertaining to governance. We also arranged opportunities for senior management to exchange opinions directly with investors, who were provided with a chance to experience the latest virtual reality (VR) technologies. At our earnings presentation, we showed videos of developer interviews related to titles of interest to investors, as well as a variety of other new initiatives aimed at reflecting stock market opinions and demands.

In addition, Capcom conducts a perception gap study every year targeting investors and analysts in Japan and overseas. Being aware of investor perception gaps with regard to management objectives, business strategy and shareholder's return enables us to fine-tune corporate management and IR activities. Questionnaires are also given to attendees at our semiannual Presentation of Financial Results and individual investor briefing sessions, allowing us to make proactive use of market opinions as one criterion in management decisions. Specific examples of how this information is used include (1) medium-term business goal revisions, (2) enhanced business strategies, (3) information disclosure content and timing reviews and (4) group meetings with management.

Fiscal 2015 IR Measures

By category Frequency
Visited by requests 186
Visited domestic investors 99
Visited overseas investors 85
Total 370

IR Events

Event Details
CEO small meeting Speaker: Kenzo Tsujimoto, Chairman and CEO
COO small meeting Speaker: Haruhiro Tsujimoto, President and COO
External director small meetings Speaker: Takayuki Morinaga, External Director
Supplementary explanatory earnings administrative officer conference call Conference call before/after earnings announcement to explain the results
Latest technology experience-based event Conducted experience-based demonstration of latest VR technologies, promoted understanding of Capcom development technologies
Showed developer interviews during earnings presentation Used developer videos to explain development status of latest titles of high interest to the market
Conducted perception gap study Conducted assessment survey targeting investors and analysts in Japan and overseas regarding Capcom's management targets, strategies and IR activities, provided feedback to management

Image:A discussion with shareholders

A discussion with shareholders

Image:Our earnings presentation

Our earnings presentation

Perception Gap Study Investor Feedback (Excerpts)

  • Even though you had popular IPs, no results were seen in mobile. I have the impression that not many measures are being taken towards further reinforcement, including outsourcing.
  • In terms of shortening the development period for popular series titles, other than Monster Hunter the lineup was not mentioned, so I am uneasy about its progress.
  • Leaving treasury stock on the balance sheet long term is a problem. I understand keeping it for M&As, etc., but in principle, it should be retired.
  • I would like to know the state of the development system, so I would like a meeting to be held with developers.
  • How about releasing catalog sales ratios as material for evaluating strategies for anchoring long-term users.

IR Activities on Our Website

Utilizing a Website That Anyone Can Access

Since 2001, Capcom has made proactive use of its corporate website as a tool for disseminating information pertaining to IR activities. The main reasons for this are to ensure fairness for a wide range of stakeholders, including investors, analysts, the mass media and job-seekers, and because it easily ensures information is available for inspection immediately in about 200 countries worldwide. Capcom’s corporate website is also positioned as our most cost-effective tool.

IR Team

Full-Time Staff Engaged in a Wide Variety of Activities

Capcom IR activities are conducted by five full-time staff members in addition to the chairman, the president and the IR director on behalf of shareholders and investors in Japan and overseas. For earnings information and other IR-related inquiries, please use the contact information below.

Public Relations & Investor Relations Section

PHONE: +81-6-6920-3623
E-mail: ir@capcom.co.jp
Business Hours:
  9:00–12:00, 13:00–17:30 (JST)
(excluding weekends and public holidays)

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