Koei Tecmo Holdings Annual Report 2018

Key insights

6 takeaways

01
Koei Tecmo achieved eight consecutive years of net income growth, with the Entertainment division generating ¥35,180 million in net sales for the fiscal year ending March 31, 2018.See it on page 6
02
The company’s 2018–2020 medium-term management plan targets 5 million console unit sales and ¥1 billion in monthly smartphone revenue by the end of the period.See it on page 3
03
The Board of Directors approved a 1:1.2 stock split effective September 2018 to enhance shareholder value and improve market liquidity.See it on page 28
04
Koei Tecmo maintains a significant real estate portfolio, with the fair value of rental properties reaching ¥17.2 billion as part of its diversified asset management strategy.See it on page 4
05
The firm is actively preparing for the transition to updated international revenue recognition standards, with full compliance scheduled for April 2021.See it on page 12
06
Financial statements for the 2018 fiscal year received an unqualified audit opinion from KPMG AZSA LLC, confirming the accuracy of the company's consolidated reporting.See it on page 29

Summary

Koei Tecmo Holdings achieved record financial performance during the fiscal year ending March 31, 2018, marking eight consecutive years of net income growth. This success was primarily driven by the robust performance of the Entertainment division, which generated ¥35,180 million in net sales, alongside a strategic increase in intellectual property licensing revenue. To sustain this momentum, the company established a medium-term management plan for 2018–2020, setting ambitious targets to reach 5 million console unit sales and ¥1 billion in monthly smartphone revenue by the end of the period.

The company maintains a conservative and stable financial foundation, characterized by rigorous internal controls and proactive risk management regarding credit, market, and liquidity exposures. Surplus capital is strategically deployed into compound financial products and significant real estate investments, with the fair value of rental properties reaching ¥17.2 billion. While the company monitors global regulatory shifts, such as the impact of U.S. tax reform, these factors have remained immaterial to overall operations. Furthermore, the firm is preparing for the transition to updated international revenue recognition standards by April 2021, ensuring long-term compliance and transparency.

Operational oversight remains disciplined, as evidenced by an unqualified audit opinion from KPMG AZSA LLC confirming the accuracy of the consolidated financial statements. To further enhance shareholder value and improve market liquidity, the Board of Directors approved a 1:1.2 stock split effective September 2018. By balancing core software development with diversified asset management and a commitment to global IP expansion, the company continues to solidify its position within the international gaming market while optimizing its corporate structure for future scalability.