Financial · January 1, 2013

Management Policy & Strategy: Fiscal Year Ended March 2013 Financial Results

Summary

Tecmo Koei Holdings presents a comprehensive analysis of its financial performance for the fiscal year ended March 2013 and outlines its strategic management policy for the 2013 fiscal year. The primary thesis centers on the company’s achievement of record-breaking profits and its transition toward a growth model driven by intellectual property (IP) creation and multi-platform expansion. Financial data reveals that while sales slightly decreased by 2.5% to 34.6 billion yen in FY2012, operating profit rose by 7.8% to 6.2 billion yen, and ordinary profit surged by 18.2% to 8.8 billion yen. This represents the third consecutive year of profit increases. The game software segment remained the primary driver, though the company noted a strategic need to rebuild its online, mobile, and media rights businesses. Geographically, Japan remains the dominant market, accounting for over 83% of sales, though overseas unit sales saw a significant 47.3% year-over-year increase, particularly in North America. The strategic outlook for FY2013 targets 37 billion yen in sales and 7 billion yen in operating profit. Key initiatives include the 30th anniversary of the Nobunaga’s Ambition franchise, support for new hardware such as the Wii U and PlayStation 4, and an expansion of the download business. In the mobile sector, the company plans to shift focus from feature phones to smartphones and native applications while prioritizing the Asian market for social game expansion. The overarching methodology emphasizes cost-of-goods improvements and the integration of IP across various media, including animation, events, and toys, to ensure long-term profitability and market share growth.

From the report

20 Sales /Operating Profit/Ordinary Profit Ratio Profit increase for the third consecutive year. 25 Achieving the highest profit ever! (Units: Millions of Yen) 20 Sales FY2011 FY2011 FY2012 FY2012 YoY YoY Change Change 15 Ordinary Profit 10 Amount Ratio Amount Ratio Amount Ratio Sales 35,525 100.0% 34,639 100.0% 886 2.5% 50,000 20,000 Operating 5,758 16.2% 6,208 17.9% 450 7.8% Profit 40,000 15,000 Ordinary 7,472 21.0% 8,835 25.5% 1,363 18.2% Profit 10 30,000 4,640 5,656 1,01610,000 Net Income 13.1% 16.3% 21.9% Includes approximately 1.4 billion Yen of SG&A expenses from 5,000 goodwill amortization. 0 FY2010 FY2011 FY2012 FY2013(Plan)

20 (%) Sales /Operating Profit/Ordinary Profit Ratio Collaborative title(Development) Tecmo Koei Social Game 30 Over 900 Million Users 20 Sales 15 Operating Profit Ordinary Profit (Millions of Yen) (Millions of Yen) 50,000 20,000 40,000 15,000 10 30,000 10,000 20,000 ® 10,000 5,000 EVENT PS3/PS Vita PS3 PS3/Xbox 360/Wii U AKB48 no Yabou ONE PIECE: DYNASTY WARRIORS 8 Fist of the North Star: Shin Sangoku Musou SLASH Neo Romance Event PIRATE WARRIORS 2 Ken’ FY2010 FY2011 s Rage 2 Hyakuman nin no 400,000 Units 450,000 Units Winning Post Special 80,000<sub>Participants</sub> 開発：㈱コーエーテクモゲームス /Japan /Worldwide ※English name is tentative

> **[Chart page]** This page contains visual data — view in PDF for the best experience. 20 (%) Sales /Operating Profit/Ordinary Profit Ratio FY2012 25 (Units:Millions of Yen) Game Online & Media & Pachislot & Amusement Corporate & Consolidated Software Mobile Rights Pachinko Facilities Others TotalSalesElimination Total 23,718 5,480 1,741 2,195 1,932 234 Operating Profit Sales 35,303 664 34,639 Ordinary Profit Operating 106,229 549 17 642 157 52 7,614 1,405 6,208 Profit (Millions of Yen) (Millions of Yen) 50,000 20,000 FY2011 (Units:Millions of Yen) 40,000 15,000 Game Online & Media & Pachislot & Amusement Others Total Corporate & Consolidated Software Mobile Rights Pachinko Facilities Elimination Total 10 30,000 10,000 Sales 24,883 5,635 1,838 1,701 1,887 216 36,162 637 35,525 20,000 Operating 4,905 1,097 164 558 133 13 6,873 1,115 5,758 Profit 10,000 ※Changed a portion of our management accounting system in FY2012, the segment information of FY2011 is described based on the new standard. 0 FY2010 FY2011 FY2012 FY2013(Plan)

> **[Chart page]** This page contains visual data — view in PDF for the best experience. (%) Sales /Operating Profit/Ordinary Profit Ratio (Units:Millions of Yen) 20 FY2011 Sales FY2011 FY2012 FY2012 YoY YoY Change Change Area15 Amount Ratio Amount Ratio Amount Ratio Japan 10 29,918 84.2% 28,942 83.6% 976 3.3% (Millions of Yen) (Millions of Yen) Overseas50,000 5,606 15.8% 5,697 16.4% 91 1.6% North America 2,784 7.8% 2,585 7.5% 199 7.1% 15,000 30,000 1,356 1,664 308 Europe 3.8% 4.8% 22.7% 10 1,466 1,448 10,000 Asia 20,000 4.1% 4.2% 18 1.2% 35,525 34,639 5,000 Grand Total 100.0% 100.0% 886 2.5% 0 FY2010 FY2011 FY2012 FY2013(Plan)

> **[Chart page]** This page contains visual data — view in PDF for the best experience. (%) Sales /Operating Profit/Ordinary Profit Ratio 25 (Thousands of Units) 20 FY2011 Sales FY2011 FY2012 FY2012 YoY YoY Change Change Area 15 Units Ratio Units Ratio Units Ratio Japan 10 4,100 66.9% 3,595 54.6% 505 12.3% (Millions of Yen) (Millions of Yen) Overseas 50,000 2,030 33.1% 2,990 45.4% 960 47.3% North America 950 15.5% 1,635 24.8% 685 72.1% 15,000 Europe30,000 730 11.9% 860 13.1% 130 17.8% 10 350 495 10,000 Asia 20,000 5.7% 7.5% 145 41.4% 6,130 6,585 5,000 Grand Total 100.0% 100.0% 455 7.4% 10,000 0 FY2010 FY2011 FY2012 FY2013(Plan)

> **[Chart page]** This page contains visual data — view in PDF for the best experience. Depreciation Expenses (FY2012) 20 (%) Sales /Operating Profit/Ordinary Profit Ratio 30 Expenses to Sales Ratio Capital Expenditure and （％） 25 (Millions of Yen) Depreciation Expenses 70 20 COG 2,500 Sales Depreciation SG&A Expenses Operating Profit Capital 60 15 62.0% 2,043 Expenditure 50 10 59.8% 2,000 Ordinary Profit (Millions of Yen) Improved 2.2 points (Millions of Yen) 40 50,000 1,500 20,000 30 40,000 975 15,000 10 30,000 1,000 931 20 20,00021.8% 22.3% 500 10,000 Increased 0.5 points 292 10 10,000 5,000 0 0 FY2011 FY2012 0 FY2011 FY2012 FY2010 FY2011 FY2012

Pages: 27
Words: 2,179
Format: PDF
Type: Financial

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