Koei Tecmo Holdings Annual Report 2017

Key insights

7 takeaways

01
Koei Tecmo achieved its seventh consecutive year of net income growth, reaching ¥11,624 million despite a decline in net sales to ¥37,034 million.See it on page 6
02
The company maintains a strong financial foundation with total assets of ¥83,941 million, including a substantial marketable securities portfolio valued at ¥63.9 billion.See it on page 4
03
Comprehensive income improved significantly, shifting from a loss of ¥8,181 million in the previous fiscal year to a gain of ¥1,146 million in 2017.See it on page 23
04
Segment income fell to ¥8,781 million during the 2017 fiscal year, primarily due to the postponement of key game releases.See it on page 25
05
The company reorganized its business into four segments—Entertainment, SP, Amusement Facilities, and Real Estate—to better align with its brand-based strategy and mitigate development cycle volatility.See it on page 25
06
Strategic growth initiatives in 2017 included the global launch of the Nioh intellectual property and investment in the VR SENSE arcade platform.See it on page 3
07
The firm demonstrated commitment to shareholder value by distributing ¥5.9 billion in dividends while maintaining a workforce of 1,654 employees.See it on page 19

Summary

Koei Tecmo Holdings navigated a transitional fiscal year in 2017, characterized by a strategic shift toward a brand-based organizational structure and a reorganization of its business segments into Entertainment, SP, Amusement Facilities, and Real Estate. While the company experienced a decline in net sales to ¥37,034 million and a reduction in segment income to ¥8,781 million due to the postponement of key game releases, it successfully maintained its long-term financial stability. Notably, the firm achieved its seventh consecutive year of net income growth, reaching ¥11,624 million, and saw a significant improvement in comprehensive income, which shifted from a loss of ¥8,181 million in the previous year to a gain of ¥1,146 million.

The company’s financial health remains anchored by a robust investment portfolio, with total assets valued at approximately ¥83,941 million and marketable securities totaling ¥63.9 billion. This fiscal strength supports ongoing initiatives in new intellectual property development, such as the global launch of Nioh, and investments in emerging technologies like the VR SENSE arcade platform. Corporate governance remains a priority, evidenced by a stable dividend distribution of ¥5.9 billion and a commitment to rigorous quality and cost controls across its global workforce of 1,654 employees.

Operating under Japanese accounting standards, the company maintains a transparent financial position, as confirmed by an unmodified audit opinion from KPMG AZSA LLC. By aligning its operational segments with its core brand strategy, the organization is positioning itself to mitigate the volatility inherent in game development cycles. Moving forward, the focus remains on leveraging its diverse asset base and intellectual property portfolio to drive sustainable growth across its entertainment and real estate divisions, ensuring continued value for shareholders despite the cyclical nature of the global gaming industry.