CAPCOM Investor Relations

Font Size

  • font size reset
  • font size up
IR Top Page > Financial Information > Financial Review

Financial Review (Japan GAAP)

(as of May 10, 2021)

Here we breakdown our consolidated business results for the nine months ended March 31, 2021 with graphs and diagrams.

1. Operating results overview

Net sales Operating income Ordinary income Net income attributable to owners of the parent Earnings per share
95,308
million yen
( 16.8%
increase YoY)
34,596
million yen
( 51.6%
increase YoY )
34,845
million yen
( 51.8%
increase YoY )
24,923
million yen
( 56.3%
increase YoY )
116.74 yen

Net sales (cumulative)

Operating income (cumulative)

Ordinary income (cumulative)

Net income attributable
to owners of the parent (cumulative)

During the fiscal year ended March 31, 2021, amid broad social restrictions stemming from the widening global spread of COVID-19, the business environment in the industry continued to be one that required adaptation to change, such as the utilization of new technology and modifying activities during the pandemic.

In such an environment, the Company worked to minimize the impact of the pandemic on the Capcom Group. Specifically, the Company revised its work systems while also improving its office environment with the aim of business continuity.

Further, the Company’s core Digital Contents business drove profitability with growth in sales of major new titles and catalog titles in addition to greater digital distribution, which the Company has been actively pursuing in recent years. Elsewhere, while Arcade Operations and Other Businesses were subject to the effects of the COVID-19 pandemic, the Company endeavored to secure profits by reviewing its selling, general and administrative expenses.

As a result, under a business strategy focused primarily on digital sales, overseas revenue grew in conjunction with expansion of geographical sales areas and products with long lifecycles. For the year ended March 31, 2021, consolidated net sales were 95,308 million yen (up 16.8% from the previous fiscal year), operating income was 34,596 million yen (up 51.6% from the previous fiscal year), ordinary income was 34,845 million yen (up 51.8% from the previous fiscal year), and net income attributable to the owners of the parent was 24,923 million yen (up 56.3% from the previous fiscal year). Operating income grew for the eighth consecutive year.

Status of business by operating segment

1. Digital Contents business

Net sales (cumulative)

Operating income (cumulative)

Operating margins (cumulative)

In this business segment, new series title Monster Hunter Rise (for Nintendo Switch) delivered strong sales of over 4 million units shipped worldwide following its release in March 2021 while Resident Evil 3 (for PlayStation 4, Xbox One and PC) also saw favorable growth, reaching 3.9 million units shipped. Meanwhile, high-margin catalog titles demonstrated their long product lives and drove up profits, including the continued growth of Monster Hunter World: Iceborne (for PlayStation 4, Xbox One and PC), which was released in the previous fiscal year, and Resident Evil 2 (for PlayStation 4, Xbox One and PC), released prior to the previous fiscal year. Further, Devil May Cry 5 Special Edition (for PlayStation 5, Xbox Series X|S) also performed well on next-generation platforms.

In Mobile Contents, in addition to the launch of Rockman X Dive (for Android, iOS) in Japan, licensing revenue from the alliance title Street Fighter: Duel (for Android, iOS) in China contributed to profits.

The resulting net sales were 75,300 million yen (up 25.6% from the previous fiscal year) and operating income was 37,002 million yen (up 53.1% from the previous fiscal year).

2. Arcade Operations business

Net sales (cumulative)

Operating income (cumulative)

Operating margins (cumulative)

In this business, after the state of emergency was lifted in Japan in May 2020, the Company began to reopen its stores in due order and worked toward the resumption of normal operations. During the fiscal year, the Company pursued the expansion and operation of regionally established stores. This began with opening the Capcom Store Osaka (Osaka Prefecture), a showroom featuring merchandise for popular characters, and included carrying out major renovations of its existing Plaza Capcom Kochi location as well.

As a result, the total number of stores was 41, while net sales were 9,871 million yen (down 18.4% from the previous fiscal year) and operating income was 149 million yen (down 87.7% from the previous fiscal year).

3. Amusement Equipments business

Net sales (cumulative)

Operating income (cumulative)

Operating margins (cumulative)

In this business, demand was generally weak amid the spread of COVID-19 due to the suspension of operations of amusement halls and the extension of deadlines for the removal of game machines manufactured before the rule revisions of 2017. In such an environment, Monster Hunter: World performed well while the release of titles Ring-ni-Kakero1 -World champion carnival version- and Resident Evil 7 biohazard worked to support revenue.

The resulting net sales were 7,090 million yen (up 8.5% from the previous fiscal year) and operating income was 2,407 million yen (up 15.4% from the previous fiscal year).

4. Other Businesses

Net sales (cumulative)

Operating income (cumulative)

Operating margins (cumulative)

In Other Businesses, the Company focused on promoting film adaptations and the sales of character merchandise using our flagship intellectual property to enhance the brand value of our titles worldwide. This included the first live-action film adaptation in the Monster Hunter series, which was released in December 2020 beginning with markets outside of Japan, while in Japan its release was timed for the same day as the launch of the game Monster Hunter Rise in March 2021.

In eSports, the Company brought events online due to the spread of COVID-19. Many players participated in heated battles in the 1-on-1 format Capcom Pro Tour Online 2020, which began in June 2020, as well as in the team-based leagues Street Fighter League: Pro-JP 2020 and Street Fighter League: Pro-US 2020, which began in autumn, further expanding the user base.

As a result, net sales were 3,045 million yen (up 0.9% from the previous fiscal year) and operating income was 987 million yen (up 81.2% from the previous fiscal year).

2. Financial position overview for the fiscal year under review

Assets

Total assets as of the end of the fiscal year ended March 31, 2021 increased by 20,246 million yen from the end of the previous fiscal year to 163,712 million yen. The primary increases were 9,137 million yen in notes and accounts receivable - trade, 5,582 million yen in cash on hand and in banks and 3,220 million yen in work in progress for game software.

Liabilities

Total liabilities as of the end of the fiscal year ended March 31, 2021 decreased by 812 million yen from the end of the previous fiscal year to 42,918 million yen. The primary increase was 2,272 million yen in long-term borrowings, while the primary decrease was 3,401 million yen in current portion of long-term borrowings.

Net assets

Net assets as of the end of the fiscal year ended March 31, 2021 increased by 21,058 million yen from the end of the previous fiscal year to 120,794 million yen. The primary increase was 24,923 million yen in net income attributable to owners of the parent. The primary decrease was 5,337 million yen in dividends from retained earnings.

3. Cash flow overview for the fiscal year under review

Cash and cash equivalents as of the end of the fiscal year ended March 31, 2021 increased by 4,371 million yen from the end of the previous fiscal year to 64,043 million yen.

Cash flow positions of each activity and their factors are described on the following page.

[Financial Information] Consolidated Statements of Cash Flows

4. Forecast and Outlook

Earnings forecast for the fiscal year ending March 31, 2022
(From April 1, 2021 to March 31, 2022)

  Net sales Operating income Ordinary income Net income attributable to owners of the parent Earnings per share
Year ending March 31, 2022 100,000 million yen
( 4.9% increase YoY )
42,000 million yen
( 21.4% increase YoY )
42,000 million yen
( 20.5% increase YoY )
30,000 million yen
( 20.4% increase YoY )
140.52 yen

Note: 1. Capcom discloses only full year business forecasts, as it manages its business performance on an annual basis.

2. With an effective date of April 1, 2021, Capcom performed a 2-for-1 stock split of its common stock.
For earnings per share for the fiscal year ending March 31, 2022 forecast, Capcom took the stock split into consideration.

Outlook

Regarding the outlook going forward, the business environment is undergoing great change: the transition to high-speed, high-capacity new mobile communication-standards, an increased number of distribution channels for game content, diversification of devices and the expansion of the global gaming user base. In such an environment, the Company is working to achieve its medium-term management goal of 10% operating income growth per annum by increasing the value of its brand globally, expanding its number of customers through the proactive use of its intellectual property and growing its core Digital Contents business.

Specifically, the Company is working to bolster its development personnel, strengthen its development capabilities and expand its pipeline of games by both utilizing its major intellectual properties and creating new intellectual properties. In addition, it will focus on growing the total number of units shipped by steadily launching new titles and strengthening the digital sales of its catalog titles.