Koei Tecmo Holdings Annual Report 2020

Key insights

6 takeaways

01
Koei Tecmo achieved record-high financial performance for the fiscal year ending March 31, 2020, marking ten consecutive years of net profit growth.See it on page 3
02
The company generated ¥42,645 million in net sales and ¥15,306 million in net income, driven by global IP expansion and licensing strategies.See it on page 6
03
Financial stability is underpinned by a robust asset base of ¥89.9 billion, consisting primarily of cash, deposits, and securities.See it on page 15
04
The company executed a major real estate expansion through a ¥21,933 million acquisition of composite facilities in partnership with affiliated entities.See it on page 24
05
Koei Tecmo operates with a workforce of 1,835 employees and ¥15 billion in paid-in capital, maintaining international subsidiaries across Asia, North America, and Europe.See it on page 32
06
Management is committed to adopting updated accounting standards for revenue recognition and fair value measurement by 2022 to refine financial reporting.See it on page 12

Summary

Koei Tecmo Holdings achieved record-high financial performance during the fiscal year ending March 31, 2020, marking a decade of consecutive net profit growth. Driven by a strategic focus on global intellectual property expansion and licensing, the company generated net sales of ¥42,645 million and a net income of ¥15,306 million. This growth trajectory underscores the effectiveness of a diversified business model that balances new IP development with the cultivation of established franchises, even amidst the operational challenges introduced by the global pandemic.

The company operates through three primary business segments: Entertainment, Amusement, and Real Estate. Financial stability is supported by a robust asset base, including ¥89.9 billion in financial assets comprised largely of cash, deposits, and securities. Risk management is prioritized through rigorous internal controls, separation of duties, and active monitoring of investment portfolios. Furthermore, the company maintains a significant real estate footprint, highlighted by a major ¥21,933 million acquisition of composite facilities executed in partnership with affiliated entities.

Corporate governance remains a central pillar of the organization, supported by a workforce of 1,835 employees and a paid-in capital of ¥15 billion. With international subsidiaries spanning Asia, North America, and Europe, the company continues to refine its operational structure and accounting practices. Looking ahead, management is committed to adopting updated accounting standards for revenue recognition and fair value measurement by 2022. By maintaining a disciplined approach to financial reporting and corporate oversight, the company sustains its long-term commitment to the ethos of creativity and contribution within the global gaming industry.