Medium-Term Business Goals Goals for the five-year period beginning FY2014 (cumulative)
Cumulative Operating Income (Cumulative totals for the period between |
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Operating Margin (FY ending March 31, 2018) |
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Plans and Achievements by Business | Projected | Results of the First Two Fiscal Years | |||
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FY2014–2018 (ending March 31) |
FY2018 (ending March 31) |
FY2014–2018 (ending March 31) |
FY2018 (ending March 31) |
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Cumulative Operating Income |
Operating Margins |
Cumulative Operating Income |
Operating Margins |
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■ Digital Contents business | 57.0 billion yen | 22% | 14.7 billion yen | 22.5% | |
■ Arcade Operations business | 8.5 billion yen | 15% | 2.5 billion yen | 10.2% | |
■ Amusement Equipments business | 20.0 billion yen | 27% | 9.8 billion yen | 36.3% | |
■ Other Businesses | 5.5 billion yen | 45% | 1.6 billion yen | 30.8% | |
Total | 70.0 billion yen | 20% | 20.8 billion yen | 16.5% |
With Single Content Multiple Usage as the basic strategy underpinning Capcom's business overall, we make the development of highly creative content the source of our corporate value creation, and via multifaceted and global expansion of this content into multiple businesses, we have built a business model that enjoys repeated earnings. At the same time, the creation of content (upstream) and subsequent deployment in each business (downstream) is not a seamless process, and at present, we have not yet maximized our earning potential.
Business Portfolio (Stability/Profitability)
I believe Capcom's strength lies in its development capabilities that create highly creative content. Furthermore, our Single Content Multiple Usage strategy enabling the multifaceted and global use of IP across multiple businesses places us in a highly advantageous competitive position.
Capcom possesses a wealth of IPs, including a total of 60 titles that have each sold over a million units. The multifaceted use of this content enables us to expect the following three effects:
First, it creates a synergetic effect between businesses. Multifaceted development creates new profit opportunities in businesses beyond Consumer, while drawing customers acquired through other businesses to home video games as new users.
Second, it has a promotional effect. Leveraging IP across multiple mediums at once enables us to cultivate fads while gaining wide-ranging exposure.
Third, it enables us to hedge risks. The formation of a business portfolio enables us to control earnings volatility.
Specifically, in terms of the first point (creating a synergetic effect between businesses), in addition to focusing efforts on rolling out PC Online and Mobile content, wide-ranging development involving pachislo machines and arcade games, movies, TV animation and toys, and food and beverages enables us to further improve brand value and profitability. Making use of digital content strengths, such as resilience against illegal copying, we can maintain our competitive position through expansion in growing Asian markets, enabling the cultivation of new business opportunities.
With this basic strategy, I want to focus efforts on driving our growth strategy to expand the Consumer, Mobile Contents and PC Online sub-segments. In the next fiscal year, we will realize results incrementally to ensure achievement of our medium-term business goals.
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