Here you can find an itemized listing of our directors' fundamental management policies, which include our basic corporate philosophy, management performance metrics, dividend policy, mid- to long-term strategies and challenges faced by management.
1. Fundamental Management Policy
We are creators of entertainment culture who aim to develop software content that excites and stimulates the senses. Management's criterion is mutual prosperity; we work to build trust and improve satisfaction with our stakeholders.
2. Key Performance Indicators
Capcom's objective is to enhance corporate value by expanding our businesses. We measure performance from a capital efficiency perspective and strive to enhance corporate value by improving return on equity (ROE). At the same time, we focus on cash flow management and securing profits.
3. Medium- and Long-Term Management Strategies
Establishing a corporate structure capable of securing stable profits regardless of changes in the environment is a critical challenge facing management in promoting growth. As such, we aim to improve business performance via the following measures.
Management Strategy: Five Measures (Market Overview and Capcom's Activities)
- Steadily grow our fan base by releasing numerous million-selling hit series, such as Resident Evil, Monster Hunter and Street Fighter
- Focus on building the Capcom brand by leveraging our highly recognizable game characters
- Bolster our Single Content Multiple Usage strategy through our global copyright business with movies, animation, publishing, theater, toys and restaurants
- Recently, network infrastructure advancements and online monetization models have been established in the home video game market
- The market for full-game and add-on downloads is growing
- We will remain flexible in the face of evolving distribution methods and focus on expanding digital download sales
- We will grow revenue by expanding our business based around the three pillars of development, marketing and sales
- Sell and distribute in-demand titles that leverage our rich library of popular contents
- Strengthen this business by developing synergies between superior content and game operations (i.e., analyze player behavior and update game content accordingly)
- Despite future uncertainty brought on by recent model certification method revisions, we will develop this segment to be a stronger revenue source via synergies with popular IPs
- We will move forward with strategic business expansion and the development of machines compliant with new standards
- In Japan, we face a maturing domestic market and demographic changes
- We will leverage brands popular overseas, such as Resident Evil and Street Fighter, both of which were made into Hollywood movies, to take on markets like North America, Europe and Asia
4. Our Business Environment and Issues to Address
The market environment in our industry is changing drastically. Drivers of this include the launch of the new Nintendo Switch home console in March 2017, the rise of new business areas utilizing virtual reality (VR) and augmented reality (AR), as well as greater adoption of online games and growth in mobile contents.
Five Issues to Address
- In addition to our core home video game software business, we will focus management resources on strengthening mobile contents development and our marketing division
- We are committed to expanding our game content offerings, with games for smartphones and tablets
- We will concentrate on expanding our contents business, through measures such as strengthening our Pachinko & Pachislo business
- We will work to grow digital downloads in order to address increasingly diverse distribution channels
- As the domestic Japanese market matures we will move forward, aided by overseas subsidiaries, in developing new markets while further cultivating existing ones
- As part of efficiently using development resources, we will focus on quick management and providing a clear vision
- In order to better exercise Capcom's comprehensive strengths, we will enhance corporate value through a process of selecting and concentrating resources for business investment
- Via corporate innovation, we will enhance management efficiency and flexibility
- We will build a corporate structure to fortify our revenue base
- We will coordinate a strategic restructuring of Capcom's operations and finance across all domestic and overseas affiliates