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Relationship with Customers
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 rating system is an initiative for the healthy development of young people that calls for voluntary restrictions on home video game content and sales methods to limit access by young people to sexual and violent content. In addition, recent 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.
Guidelines Issued by the Computer Entertainment Suppliers’ Association (CESA)
|Name of Guidelines||Implementation Date|
|Guidelines for Real Money Trade Measures||May 11, 2017|
|Guidelines for the Protection of Minors||January 5, 2017|
|Operating Guidelines for Random Item Distribution in Network Games||April 27, 2016|
|Guidelines for Advertisements, Etc. in Home Video Game Software Targeting Only Those 18 and Over||April 1, 2008
Revised June 20, 2012
|Code of Ethics Concerning Computer Entertainment Software, 2nd Revision||Revised October 1, 2002|
Please refer to CESA’s website for the content of each set of guidelines. https://www.cesa.or.jp/index_e.html
Community Building Support for Senior Citizens
Regular Video Game Arcade Tours
Today, amusement facilities 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.
Relationship with Regional Communities
Contributions to Regional Revitalization
Social Contribution Activities Using Popular Games’ Appeal and Recognition
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 that supports the local tourism industries; 2) cultural promotion that 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 2016 Capcom provided support for a digital stamp rally in Kofu (Yamanashi Prefecture), a city with which Capcom entered into a Comprehensive Agreement to Promote Vitalization of the Local Economy. The rally used Capcom’s characters while utilizing the city’s free Wi-Fi, and was part of Capcom’s efforts to help achieve regional development by 2019. We also committed energy to being a force for regional revitalization. In Wakayama Prefecture, which is working to boost tourism while drawing inspiration from a historical drama series on NHK TV, we provided a character for inclusion in a pamphlet containing Wakayama sightseeing and gourmet dining information. We also helped to develop a sightseeing guide app using a Capcom character in Hamamatsu, Shizuoka Prefecture, among other efforts. In October 2016, Monster Hunter series characters Felyne and Melynx were used for the first time in materials to promote efforts by the Osaka Prefectural Police Department to prevent the theft of valuables from unattended cars. Non-slip vehicle mats featuring the characters were distributed to promote the campaign.
Message from a Capcom Stakeholder
Kofu City Hall, Industry Department,
Industrial Development Office,
Sightseeing Section, Manager
2019 and 2021 will mark 500 years since the founding of Kofu and 500 years since the birth of Takeda Shingen (a feudal lord of the region in the Sengoku period), and will provide golden opportunities for Kofu to boost tourism. In its searc for new ways to accomplish this, the city found the Sengoku BASARA series, in which Takeda Shingen appears as a character.
Following the comprehensive partnership agreement signed between Capcom and the city in 2015, we have held a stamp rally and launched a treasure hunting game using free Wi-Fi, opened a special website, and appointed the Shingen character as the local mascot for tourism promotion. Seeing how much fun was being had by the participants gave a real sense of the power of popular games. Both returning participants and people new to the event came in droves, with many of them asking us to do it again. The next event will see us also working with other businesses as we work to revitalize communities.
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 2,722 children as part of 343 different field trips into its offices (as of the end of March 2017). Capcom has also held 119 on-site classes for 10,948 students at schools (as of March 2017) such as Ritsumeikan Primary School in Kyoto.
Capcom School Visit Feedback(for Part of the Fiscal Year)
- The gaming theme was met with great acclaim among students. The use of worksheets in every class would have further heightened the experience. (Middle school instructor)
- I learned that it’s not good to play games too much. This is something I want to talk to my sister about because she’s always playing with her cell phone at home. (Elementary school student)
- There was a different sort of twinkle in their eyes, and even children who rarely ask questions spoke up. This is something children are interested in, so it was actually a good learning experience for me, too. (After-school childcare worker)
- This was an excellent program not only because primary and middle school children of all ages were interested in the topic but also because it prompted them to talk about what they would need to do for their futures. (City hall employee)
Relationship with Employees
Promotion of Diversity
Initiatives Aimed at Promoting an Environment for Women’s Success and Proactively Hiring Non-Japanese
In terms of the environment for women’s success, 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 2016, 26 employees took childcare leave, three of whom were men, and 100% of women took childcare leave (fiscal 2015: 0 men and 100% of 24 women took leave).
A high percentage of women returned to work afterwards: 22 returned in fiscal 2016 — 95.6% if those still on leave are excluded. This is an increase over last fiscal year (94.4%, or 17 women, returned to work in fiscal 2015). As a result, despite it being said that Japan’s gaming industry is generally dominated by men, women account for roughly 20% of Capcom’s workforce, and 25 (11.4%) of Capcom’s managers are women. Furthermore, in accordance with the execution of the Act on Promotion of Women’s Participation and Advancement in the Workplace, in 2016 we formulated the General Employer Action Plan which seeks to achieve two things: (1) having women comprise at least 20% of all regular employees, and (2) having women comprise at least 15% of managers.
As a further measure to maximize female workplace participation, we opened "Capcom Juku" as an internal daycare facility in April 2017. In recognition of Capcom’s efforts toward improving the workplace environment for women, since 2014 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 99 non-Japanese workers (representing 4.3% of our employees). Going forward, we will create a system for improving motivation in an attempt to increase the ratio of foreign employees, including support for career advancement and the promotion of non-Japanese individuals to management positions.
Delivering New Games Developed Primarily by Women
Fiscal year 2016 saw the launch of Toraware no Paruma, a romance game for women developed primarily by female Capcom employees. Chosen from among 150 proposals solicited within the company, the title carries a distinctiveness among our games, which are primarily action-orientated games for men. It was ultimately selected for development by virtue of tenacious presentations given by female Capcom staff. The game is imbued with the team’s unique sensibilities, which can be seen in things like the characters’ 3D models and gestures. It also captured the top spot in the paid App Store’s app ranking, evidence of the high acclaim it received from many users as a new Capcom IP.
Toraware no Paruma
Message from a Capcom Developer
Section 3, Department 1, Consumer Games Development Division 1
About 20% of Capcom’s developers are women. Although I believe this will increase even more in the future, it still feels quite low. As our users diversify, there are benefits to having many women working for the company, not the least of which is shining the spotlight on minority views.
When my children were little, I made use of the company’s shortened working hour program. It is difficult to work under time or other constraints when you are raising children. But even then, it is motivating to be recognized for making a contribution, regardless of your personal situation. The important thing is working within your own circumstances and figuring out how to achieve something.
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 offers the following training.
Major Training Programs
Proactive personnel hiring
Boosting Jobs by Hiring 100 or More New Graduates Every Year
With a view to developing ever higher quality game software, Capcom places an emphasis on in-house development. We are hiring at least 100 new graduates every year to expand development resources from 1,500 development staff members in fiscal 2011 to 2,500 in fiscal 2021, and thereby contribute to job growth. We also help developers find greater satisfaction in their work by providing a state-of-the-art game development environment that features a 3D scanning studio and Foley stage.
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 an understanding of these concepts, we created the Capcom Group Code of Conduct Handbook, which is available on the company intranet and contains illustrated case studies in an easily understandable Q&A format.
We also conduct e-learning compliance training and Personal Information Protection Act compliance training for all employees.
Action criteria and compliance are the lynchpin of corporate governance and the foundation of our 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 Build a Comfortable Work Environment
Monthly Health and Safety Committee meetings include the attendance of an employee representative, an observer and a company representative. Participants discuss employee overtime, workload optimization workplace injuries and the state of each business site. This helps make our workplaces more pleasant.
Promoting better utilization of paid leave
Establishment of the Paid Leave Promotion Day
Capcom has established a Paid Leave Promotion Day. This company-led effort to encourage the taking of long-term paid leave promotes richer private lives for our employees. This initiative has helped us beat the paid leave utilization target (70% of annual paid leave taken by all employees by fiscal 2020) set by the government.
Relationship with Business Partners
Basic Policies Regarding Business Transactions
Promotion of Fair Business Transactions Based on Regulations
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. Capcom fairly evaluates conditions such as capability and cost to select suppliers and outsourcers. In addition, for business transactions with specified involved parties such as subsidiaries, Capcom compares such transactions with standard conditions and does not engage in those which would be disadvantageous to Capcom or which would unfairly profit the specified involved party.
Relationship with Shareholders and Investors
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.
Also, voting rights can be exercised via computer, smartphone, mobile phone and the Internet. In addition, we have participated from an early stage in a platform for the digital exercise of voting rights, so 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 the day following the end of a fiscal period and ending on the day that financial information for that period is announced. During this period, we refuse all inquirie 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 Excellence Prize at the Nikkei Annual Report Awards 2016 in the fiscal year ended March 2017, our IR website was selected by Daiwa Investor Relations for the 2016 Internet IR Grand Prize and we ranked first overall in the Fiscal 2016 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 2016 Third Party Evaluations
|Integrated Reports||Capcom’s integrated report chosen for excellence by asset management companies contracted with GPIF|
|19th Nikkei Annual Report Awards, Excellence Prize|
|LACP 2015 Vision Awards
Bronze Award, Technology/Software category
|IR Website||Daiwa Investor Relations Co., Ltd.
2016 Internet IR Grand Priz
|Morningstar Inc./Gómez Consulting Ranked 2nd overall in Gomez IR Website Ranking 2016|
|Nikko Investor Relations Co., Ltd. Ranked 1st overall in the Fiscal 2016 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 362 points of contact with investors.
In fiscal 2016, we set up a small meeting between external directors and investors where candid discussions were held concerning the necessity of transitioning to being a company with an audit and supervisory committee, the role of outside directors under the new system, and other matters concerning governance. We also had interested investors experience our virtual reality technologies during individual meetings to give them a better idea of Capcom’s technical prowess. Furthermore, in contrast to the kinds of briefings that are often held in Tokyo, we held an online individual investor briefing to allow all investors to take part—regardless of where they live—as one of a variety of new pursuits informed by sock market views 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 and KPI revisions, (2) enhanced business strategies, (3) shareholder return methods and levels, and (4) reviews of the content and timing of information disclosures.
Fiscal 2016 IR Measures
|Visited domestic investors||99|
|Visited overseas investors||94|
|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|
|Online individual investor briefing||Posted information sessions online for individual investors|
|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|
Perception Gap Study Investor Feedback(Excerpts)
- Since I see sales of catalog titles increase when new entries in a series are released, I have a positive impression of how Capcom has strengthened its digital download sales. Additional DLC is a recurring model, and it will be interesting to see how much this content will improve sales.
- It may be a good idea to also use outside help when developing mobile games. Partnering with other companies can teach Capcom how to improve earnings in the mobile space, which could help it produce hits in-house.
- With Capcom’s numerous popular IPs, the company should seek out new partnerships in order to aggressively monetize its products in Asia, and China in particular.
- Although dividend yield currently stands at around 2%, a solid balance sheet suggests there may be room for an increase.
- Some of the company’s shares need to be retired. This would send a strong message that Capcom values achieving shareholder returns.
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.
Full-Time Staff Engaged in a Wide Variety of Activities
Capcom IR activities are conducted by four full-time staff members in addition to the chairman, the president, and the director overseeing IR for 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
(excluding weekends and public holidays)
ESG-based Value Creation (PDF:2.43MB/ 20 pages)