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Management Strategy

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.

Forward-looking statements in the text below are based on the judgment of the Capcom Group as of the end of the previous consolidated fiscal year.

1. Fundamental Management Policy

Fundamental Management Policy

The Capcom Group maintains the following strengths: 1) the developmental and technological prowess to continuously create content (IP) of world-class quality, and 2) a vast library of popular IPs that resonate with people throughout the world.

The Company aims to achieve stable growth and enhanced corporate value over the medium- to long-term. It will do so by enhancing its corporate governance on an ongoing basis, working towards mutual prosperity and building a relationship of trust with stakeholders (which include shareholders, customers, business partners employees and local governments) based on the following corporate philosophy.

[Corporate Philosophy]

Capcom is a creator of entertainment culture who aims to develop software content that excites and stimulates the senses.

[Activities the Support the Realization of Capcom’s Corporate Philosophy]

  • a. Strengthening management capabilities and succession training
  • b. Enhancing the organizational structure and function while striving to build diversity in gender, nationality, age, etc.
  • c. Building an effective risk control structure with the Board of Directors
  • d. Increasing transparency with timely information disclosure and discussion

2. Key Performance Indicators

At the Capcom Group, management’s objective is to increase corporate value through the sustainable growth of its businesses.

In addition to measuring performance with a medium-term management goal of 10% increased operating income per fiscal year, the Company strives to enhance corporate value from a capital efficiency perspective by improving return on equity (ROE), while at the same time focusing on cash flow management. Further, Capcom is working to maintain a consolidated dividend payout ratio of 30% as its basic policy while continuing to make stable dividend payouts, after giving due consideration to matters such as future expansion and changes in the business environment.

3. The Business Environment and Medium- to Long-Term Management Strategy

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 securing stable profit to enhance its long-term corporate value.

The Group has therefore made achieving 10% annual growth in operating income its medium-term management goal. The Group will make efforts to further increase brand value globally while endeavoring to better understand user needs and expand the user base, leading to growth for its core Digital Contents business. In order to achieve this sustainable growth, the Group will continue to promote its personnel investment strategy, which is its driving force.

Further, thanks to the ongoing support from all stakeholders, the Company will celebrate the 40th anniversary of its founding in June of this year. To mark this occasion, the Company will carry out a variety of celebratory activities, including the creation of a dedicated website and online destination, Capcom Town.

The Group will further work to make strides forward, aiming to achieve sustainable growth and enhance its corporate value over the long term.

4. Priority Business and Finance Issues

Capcom is working to address the following issues in order to pursue the strategies discussed in item 3 above.

(1) Personnel investment strategy

The Capcom Group positions initiatives regarding human capital, which is the source of corporate value creation, as a priority issue.

In order to enhance its development system—the source of its core competitiveness—and achieve its medium-term management goals, the Group recognizes the importance of bolstering its development workforce and enhancing productivity as it pertains to the investment and effective use of human capital in the areas of research and development and contents production.

As such, the Group has recruited more than 100 developers every year. At the end of the fiscal year ended March 2023, the Group has secured approximately 2,460 developers in its workforce.
In addition, to respond to changes in the business environment, the Group is investing in securing and developing diverse human resources through recruitment and evaluation, regardless of their gender, nationality, age, and so on.

The Group currently has 29 female managers (11.6% of all managers), 3 managers of foreign nationality (1.2% of all managers), and 140 managers who are midcareer hires (56.0% of all managers). Note that from the fiscal year under review, the Group changed the way it aggregates these figures in accordance with related laws and regulations.

In order to further promote its personnel investment strategy, the Group will enhance its corporate value in tandem with improving employee engagement by implementing the following measures:

  • A. Management support for personnel issues
    • Continuing an open dialogue between management and employees, such as with employee briefings
  • B. Acquiring and cultivating the talent to support the future, and improving the work environment
    • Promoting a corporate culture of respect for human rights
    • Reviewing the personnel evaluation systems
    • Reconstructing the recruitment strategy
    • Enhancing employee welfare and benefits programs, such as introducing a progressive program with a more inclusive definition for spouses/partners
  • C. Improving the office environment to support development activities and upgrading development facilities
    • Improving development studios with expanded offices
    • Establishing the new “Creative Studio,” outfitted with one of the largest motion capture studios in Japan

(2) Strategies by operating segment for the fiscal year ending March 2024

Based on the strategy laid out in 3 above, the Company will focus on the following areas in the next fiscal year:

A. Digital Contents business

In this business segment, the Company will work to enhance brand value and expand its customer base by launching new titles, including Street Fighter 6 (for PlayStation 5, PlayStation 4, Xbox Series X|S, PC), the latest title of the series released in June 2023, which is expected to drive eSports business expansion, and Exoprimal (for PlayStation 5, PlayStation 4, Xbox Series X|S, PC), a completely new IP released in July 2023. Further, the Company will strive to maximize revenue and continuously increase total sales volume by strengthening digital sales and executing pricing measures for catalog titles, such as Monster Hunter Rise: Sunbreak and Resident Evil 4, both of which were released in the previous fiscal year.

B. Arcade Operations business

In this business segment, while it is expected that the COVID-19 pandemic will draw to a close, the Company will continue to expand into new store formats while pursuing a flexible scrap and build strategy to move forward with efficient openings and operations of stores.

In the year ending March 2024, the Company plans to open four stores.

C. Amusement Equipments business

In this business segment, the Company will implement measures while taking market trends into account, such as by releasing digital “smart” pachislo machines, which are drawing significant expectations from the market.

In the year ending March 2024, the Company plans to sell 37 thousand units and release 4 new models.

D. Other Businesses

In Other Businesses, the Company will implement various measures in its eSports business in order to encourage participation from an even greater number of people throughout the world. These include offering a total prize pool of over 2 million dollars, the highest amount in the Company’s history, in the Capcom Pro Tour 2023, which features Street Fighter 6, the latest title in the series released in the 2023 fiscal year.

Additionally, the Company will promote strategies that maximally leverage its Single Content Multiple Usage strategy on a global basis. This will be done by adapting its content into movies and with cross-industry collaborations, including globally expanding brand recognition of Street Fighter through new live-action film and television series program adaptations.

Going forward, the Company will work to maximize corporate brand value while expanding the brand value of its content.

(3) ESG and SDGs initiatives

In conjunction with its corporate philosophy listed above in 1, the Capcom Group is undertaking a variety of activities.

During the fiscal year ended March 31, 2023, the Group continued its donations to three organizations that work for the healthy development of children and young adults, including the Fund to Support Children’s Future. Further, the Group also continued to commit money in aid to the United Nations High Commissioner for Refugees to support Ukrainian refugees, and newly donated money in aid to victims of the Türkiye-Syria earthquake.

<Support for children in need>

Donations to Amount
Fund to Support Children’s Future, Welfare and Medical Service Agency 50 million yen
Single Mothers Forum (an authorized nonprofit organization) 40 million yen
Child Center Nukku (specified nonprofit corporation) 10 million yen

<Support for Refugees from Ukraine>

Donations to Amount
UNHCR, the UN refugee agency
*Supported via Japan for UNHCR, a national partner of UNHCR in Japan for accepting aid
20 million yen

<Support for Türkiye-Syria Earthquake>

Donations to Amount
Save the Children Japan
*Türkiye-Syria Earthquake Children Support Desk
30 million yen

Meanwhile, the Group has been working for some time to limit its environmental impact by promoting digital sales of content to reduce the use of resources and CO2 emissions accompanying the manufacture and transport of discs, while also implementing energy saving measures and recycling certain parts in the manufacture and sale of pachislo machines.

In June 2022, the Group also introduced CO2-free electricity sourced from renewable energy in the buildings it owns in the Kansai area as part of its environmental measures. As a result, about 27% of its power usage in Japan is covered by such energy. In addition, the Group is carrying out initiatives such as utilizing its own data centers with energy saving features, as well as using major cloud and data center service companies that promote the use of renewable energy. The Group will work to further lessen its environmental impact, including with the introduction of green power at its Tokyo branch office in April 2023.

Going forward, the Group will proactively work to address the common challenges facing the environment and society. The Group will promote Environmental, Social and Corporate Governance (ESG) initiatives from such a standpoint, in consideration of the goal of developing a sustainable society as advocated by the Sustainable Development Goals (SDGs), and pursue sustained growth while building a relationship based on trust with stakeholders.

(4) Corporate governance initiatives

Recognizing the importance of diversity of the Board of Directors for sustainable growth, the Company strives to ensure that the Board of Directors consists of members with diverse perspectives, abundant experience, and advanced skills that are both diverse and specialized by selecting candidates based on their personal characteristics and insight regardless of their gender, nationality, age, and so on.

Furthermore, the Capcom Group’s strengths include its strong business foundation as well as its unique development system and business model established under the leadership of company representatives. The Company also strives to improve corporate governance by strengthening the supervisory function of the Board of Directors, such as in striving to increase opportunities for active participation of external directors, including participation in committees established on a voluntary basis.

In addition, based on an evaluation of the effectiveness of the Board of Directors and in order to further strengthen the Board of Directors’ function, in the year ended March 31, 2023, the Company made efforts to enhance its support system with a dedicated Board Operations team, while also providing expanded opportunities for information sharing with external directors by conducting site visits as well as meetings to exchange views with corporate officers.

In order to further enhance the effectiveness of the management supervisory function, the Company will work on the following issues during the fiscal year ending March 2024.

[Main issues]

  • Further enhancing information sharing with external directors, such as by holding meetings to exchange opinions
  • Carrying out discussion on the nomination and compensation of directors and other senior management members to build a management structure for next generation
  • Discussing medium- to long-term corporate value enhancement
    Going forward, the Company will strive to share and promote understanding of issues facing the Board of Directors and further enhance its functions.

(5) Initiatives for reinforcement of information security

The Capcom Group has been engaged in the enhancement of its information security systems, with the understanding that in addition to addressing information protection laws that deal with personal information, as well as legislation protecting minors, the establishment of which is being advanced in various countries, taking measures against diverse cyber risks from both Japan and overseas is indispensable in consideration of the significance of the impact that information has on company activities.

Going forward, the Company will continue to work to operate and monitor its systems and maintain and strengthen its structure for emergency responses on an ongoing basis based on, among others, the advice of the Security Oversight Committee, an external advisory organization.

(6) Basic policy for strategic holdings of publicly listed shares

Regarding strategic holdings of publicly listed shares, the Company eliminates habitual cross-holding, personal favoritisms, etc. By comprehensively taking into consideration the relevant advantages and disadvantages from medium- to long-term perspectives, including whether the shareholdings contribute to future business relationships and sustainable enhancement of corporate value, the Company keeps its strategic holdings to a minimum and currently holds only three securities. As of the end of the fiscal year under review, the amount of its strategic holdings of such publicly listed shares accounted for less than 0.5% of its net assets.

As the Board of Directors has decided to sell all such shares, and this being agreed upon with all such companies, the Company will implement the sale as appropriate going forward.

Security Name Purpose of Holding Capcom
Mitsubishi UFJ Financial Group, Inc. Maintaining favorable business relationship with issuer Yes
Mizuho Financial Group, Inc. Maintaining favorable business relationship with issuer Yes
AEONMALL Corporation Maintaining favorable business relationship with issuer No