FY2022 Annual Presentation Materials

Key insights

6 takeaways

01
Koei Tecmo’s FY2022 strategy centers on global expansion and revenue diversification by leveraging established intellectual properties across multiple platforms and genres.See it on page 35
02
The company’s release pipeline includes major titles such as Wild Hearts, Wo Long: Fallen Dynasty, Atelier Ryza 3, and Winning Post 10, alongside mobile games like Blue Reflection Sun and Dragon Quest Champions.See it on page 3
03
A core growth pillar involves a multi-layered collaboration strategy, utilizing licensing and co-development with external partners to mitigate risk and acquire technical expertise.See it on page 35
04
The organization is pursuing a holistic brand management approach by extending its gaming intellectual properties into peripheral markets including movies, apparel, food, and merchandise.See it on page 24
05
Operational focus is directed toward strengthening internal development capabilities to create new global IPs while ensuring the longevity of existing franchises through consistent updates and multi-platform releases.See it on page 24
06
The company is transitioning toward a globally integrated business model that balances internal production with strategic partnerships to maximize long-term financial performance.See it on page 24

Summary

Koei Tecmo achieved record-breaking financial results for the fiscal year ending March 2023, characterized by a 7.8% increase in sales to 78.4 billion yen and a 13.3% rise in operating profit to 39.1 billion yen. This growth trajectory is underpinned by a significant shift toward international markets, which now represent over half of total sales and nearly 70% of console unit volume. The successful launch of major titles such as Wild Hearts and Wo Long: Fallen Dynasty served as primary catalysts for this performance, validating the company’s focus on high-quality console and mobile game development.

The organization is currently executing its Third Medium-Term Management Plan, which targets 100 billion yen in sales and 40 billion yen in operating profit by the end of fiscal year 2024. To reach these objectives, the company is prioritizing a multi-layered revenue cycle that integrates in-house intellectual property development, strategic licensing, and collaborative projects. While management projects a 21.1% increase in total sales for the upcoming fiscal year, operating profit is expected to experience a slight contraction as the firm increases investment in development and marketing to sustain its competitive position.

Long-term stability is maintained through the integration of proprietary technology, specifically the Katana Engine, and a commitment to human capital investment. By leveraging over four decades of industry expertise and rigorous project management, the company ensures a consistent output of AAA titles across multiple platforms. This balanced approach to innovation and operational efficiency positions the firm to navigate the evolving global gaming landscape while maintaining its commitment to consistent profitability and intellectual property expansion.