Koei Tecmo Holdings Annual Report 2019

Key insights

6 takeaways

01
Koei Tecmo achieved record-breaking financial performance in fiscal year 2018, marking nine consecutive years of net income growth.See it on page 6
02
The Entertainment segment is the primary revenue driver, accounting for nearly 90 percent of the company's ¥38,968 million in total net sales.See it on page 26
03
The company is executing a three-year medium-term management plan aiming to reach ¥51 billion in sales by 2020 through global IP expansion.See it on page 3
04
As of fiscal year 2019, the firm held ¥70.26 billion in available-for-sale securities, reflecting a strategy of high-yield asset management.See it on page 14
05
Revenue remains heavily concentrated in the Japanese market, though the company is strategically prioritizing the strengthening of international business operations.See it on page 3
06
Corporate governance actions included a 1.2-for-1 stock split in October 2018 and a planned transition to updated revenue recognition standards by April 2021.See it on page 20

Summary

Koei Tecmo Holdings achieved record-breaking financial performance in fiscal year 2018, marking nine consecutive years of net income growth. This sustained success is primarily driven by the robust performance of the company’s core Entertainment segment, which accounted for nearly 90 percent of the total ¥38,968 million in net sales. The organization is currently executing a three-year medium-term management plan that targets ¥51 billion in sales by 2020, with a strategic emphasis on global intellectual property expansion and the strengthening of international business operations.

The company maintains a conservative yet proactive financial strategy, characterized by rigorous internal controls and a diversified investment portfolio. As of the 2019 fiscal year, the firm held ¥70.26 billion in available-for-sale securities, reflecting a commitment to high-yield asset management. Corporate governance remains a priority, evidenced by the implementation of a 1.2-for-1 stock split in October 2018 and a clear roadmap for adopting updated revenue recognition standards by April 2021. Financial operations are further supported by stable retirement benefit plans and transparent management of real estate joint ventures and executive stock options.

Geographically, the company’s revenue remains heavily concentrated within the Japanese market, though the strategic focus on global IP suggests a long-term intent to diversify its regional footprint. Independent audits conducted by KPMG AZSA LLC have provided an unqualified opinion, confirming that the consolidated financial statements accurately reflect the company’s financial position in accordance with Japanese accounting standards. By balancing core creative output with disciplined fiscal management, the organization continues to solidify its market position while preparing for future growth cycles.