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Business Performance (Japan GAAP)

Here we breakdown our consolidated business results for fiscal year ended March 31, 2022 with graphs and diagrams.

1. Operating results overview

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Net sales Operating income Ordinary income Net income attributable to owners of the parent Earnings per share
110,054
million yen
( 15.5%
increase YoY)
42,909
million yen
( 24.0%
increase YoY )
44,330
million yen
( 27.2%
increase YoY )
32,553
million yen
( 30.6%
increase YoY )
152.48 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, 2022, the Company actively invested for future growth centered on stronger digital sales in order to respond to the continuous evolution and growth of the market.

Following its philosophy of being a Creator of Entertainment Culture that Stimulates Your Senses and in line with the Capcom Corporate Governance Guidelines of December 16, 2021, the Company works to enhance its corporate governance system in a sustained manner in order to realize steady growth over the mid- to long-term and pursue the enhancement of corporate value. In order to respond to the changing business environment and to secure stable and sustainable growth, during the fiscal year under review the Company has started pursuing specific measures including revising its compensation system and has worked to enhance corporate value with its human resources investment strategy, a management issue of particular importance.

Guided by this management policy, the Company increased its sales volume in the global market through the launch of major new titles in its flagship series and continued pursuit of sales of catalog titles via expanding digital sales, significantly contributing to enhanced value of the Company’s content. The Company also made efforts to increase earnings through leveraging these major brands in films, licensed products and in eSports, as well as in its Arcade Operations and Amusement Equipments businesses.

As a result, for the year ended March 31, 2022, consolidated net sales were 110,054 million yen (up 15.5% from the previous fiscal year). In terms of profitability, operating income was 42,909 million yen (up 24.0% from the previous fiscal year), ordinary income was 44,330 million yen (up 27.2% from the previous fiscal year), and net income attributable to the owners of the parent was 32,553 million yen (up 30.6% from the previous fiscal year).

Status of business by operating segment

1. Digital Contents business

  • Net sales (cumulative)

  • Operating income (cumulative)

  • Operating margins (cumulative)

This business segment gave a solid performance, with global unit sales of Resident Evil Village (for PlayStation 5, PlayStation 4, Xbox Series X|S, Xbox One, PC), the latest title in the series, reaching 6.1 million units, while sales of Monster Hunter Stories 2: Wings of Ruin (for Nintendo Switch, PC), an RPG title in the Monster Hunter series, also topped 1.5 million units worldwide. For FY20 release Monster Hunter Rise (for Nintendo Switch), the Company stimulated further growth of its user base by releasing the PC version in January 2022. In addition, the sales growth of catalog titles, such as the 2019 release Monster Hunter World: Iceborne, and the 2017 release Resident Evil 7 Biohazard, contributed to revenues supported by their consistent popularity.

As a result, annual sales volume reached 32.6 million units, which exceeded the 30.1 million units of the previous fiscal year. In particular, the continued growth of digital sales, which are highly profitable, boosted revenue.

In the Mobile Contents sub-segment, the Company focused on operations of existing titles. Alliance title performance also remained stable. In addition, Devil May Cry: Peak of Combat began service in China in June of last year, and its license revenue contributed to profit.

The resulting net sales were 87,534 million yen (up 16.2% from the previous fiscal year) and operating income was 45,359 million yen (up 22.6% from the previous fiscal year).

2. Arcade Operations business

  • Net sales (cumulative)

  • Operating income (cumulative)

  • Operating margins (cumulative)

In this business, some stores were either temporarily closed or operated under reduced business hours during the state of emergency declared in Japan due to COVID-19. However, the number of visitors recovered following the lifting of the declaration, and the Company worked to increase revenue through efficient operations of existing stores and openings of new store formats.

During the fiscal year under review, the Company pursued scrap-and-build and regional community-based store expansion strategies, opening two stores and closing one. Store openings were: Plaza Capcom Mitten Fuchu (Tokyo) and Miraino Aeon Mall Hakusan (Ishikawa Prefecture), which features the interactive amusement facility Crazy Banet, and is part of the Company’s efforts to draw in new visitors while being one of the largest amusement complexes in the region.

As a result, the total number of stores was 42, and the resulting net sales were 12,404 million yen (up 25.7% from the previous fiscal year) and operating income was 652 million yen (up 336.8% from the previous fiscal year).

3. Amusement Equipments business

  • Net sales (cumulative)

  • Operating income (cumulative)

  • Operating margins (cumulative)

In this business, amidst a challenging market environment, Monster Hunter: World Gold Hunting and Pachislo Devil May Cry 5 both delivered solid sales. The Company also launched Hyakka Ryoran Samurai Girls to bolster revenue. Further, repeat sales grew for the previous fiscal year release Resident Evil 7 Biohazard, which has enjoyed long-term operation in the market.

The resulting net sales were 5,749 million yen (down 18.9% from the previous fiscal year) and operating income was 2,348 million yen (down 2.5% from the previous fiscal year).

4. Other Businesses

  • Net sales (cumulative)

  • Operating income (cumulative)

  • Operating margins (cumulative)

In Other Businesses, the Company continued to focus on leveraging its flagship intellectual property in screen adaptations and character merchandise to enhance the brand value of its titles. This includes the exclusive global distribution through Netflix of CG animation titles that leverage the Company’s flagship intellectual property and the world-wide theatrical release of the live-action movie Resident Evil: Welcome to Raccoon City.

In eSports, the Company promoted measures to expand the user base on a global scale. More specifically, Capcom Pro Tour Online 2021 was held in 19 regions around the world in an online format. In addition, heated competitions took place in the team-based Street Fighter League: Pro-JP 2021, which saw the introduction of a new team-ownership system, as well as in Street Fighter League: Pro-US 2021.

The resulting net sales were 4,366 million yen (up 43.4% from the previous fiscal year) and operating income was 1,517 million yen (up 53.7% from the previous fiscal year).

2. Financial position overview for the period under review

Assets

Total assets as of the end of the fiscal year ended March 31, 2022, increased by 23,653 million yen from the end of the previous fiscal year to 187,365 million yen. The primary increases were 36,022 million yen in cash on hand and in banks and 6,749 million yen in work in progress for game software. The primary decrease was 17,093 million yen in accounts receivable – trade.

Liabilities

Total liabilities as of the end of the fiscal year ended March 31, 2022, decreased by 2,028 million yen from the end of the previous fiscal year to 40,890 million yen. The primary decreases were 947 million yen in accrued income taxes, 727 million yen in current portion of long-term borrowings and long-term borrowings, and 494 million yen in notes and accounts payable – trade.

Net assets

Net assets as of the end of the fiscal year ended March 31, 2022, increased by 25,681 million yen from the end of the previous fiscal year to 146,475 million yen. The primary increase was 32,553 million yen in net income attributable to owners of the parent. The primary decrease was 8,753 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, 2022, increased by 31,592 million yen from the end of the previous fiscal year to 95,635 million yen.

Please refer to "Cash Flows."

4. Forecast and Outlook

Earnings forecast for the fiscal year ending March 31, 2023
(From April 1, 2022 to March 31, 2023)

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Net sales Operating income Ordinary income Net income attributable to owners of the parent Earnings per share
Year ending March 31, 2023 120,000 million yen
( 9.0% increase YoY )
48,000 million yen
( 11.9% increase YoY )
48,000 million yen
( 8.3% increase YoY )
34,500 million yen
( 6.0% increase YoY )
161.59 yen
  • Note: The Company discloses a full year business forecast, as it manages its business performance on an annual basis.

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 recognizes the important management challenge of establishing a corporate structure that enables us to secure stable profit.

In order to respond to a market where the business environment is continually changing, the Company has actively worked to improve its earnings and financial structures. It has done this through the promotion of its digital strategy and evolution of how it manages development progress and costs, such as collecting and analyzing user trend data, and the steady hiring of new people and training them as quickly as possible.

Furthermore, in order to make certain steady, sustainable growth, the Company has made the issue of human resources investment a top priority and will work to enhance corporate value through the following measures.

A. Enhancing the structure by which management approaches personnel issues

  • Streamlining of human resources operations
  • Creation of Chief Human Resources Officer (CHO) position

B. Acquiring and cultivating the talent to support the future, and improving the work environment

  • Review of the compensation system
  • Increase in average base salary
  • Payment of bonuses more closely tied to performance
  • Enhancing employee welfare and benefits program

C. Stronger management capabilities

  • Diversity of Board of Directors and stronger effectiveness

The Company will continue to work on further enhancement and expansion of its brand value and user base on a global basis, strengthening its personnel activities while actively creating and leveraging its intellectual property.

With these efforts, the Company will aim to achieve growth in its core Digital Contents business and thereby to achieve 10% growth in operating income consistently every year, which is our medium-term management target.

As the driving force to achieve this, the Company will reinforce its development workforce, improve its development workplace environment, and strive to enhance the pipeline by creating new intellectual property and leveraging its major intellectual property. The Company will also focus on increasing the total unit sales by continuing to launching new titles and strengthening the digital sales of catalog titles.