Koei Tecmo Holdings Integrated Report 2023

Koei Tecmo Holdings aims to establish itself as the world’s leading digital entertainment company by synthesizing creative innovation with disciplined financial management. The organization operates under a multi-brand structure, including KOU SHIBUSAWA, Team NINJA, and Gust, which allows for a diverse portfolio of intellectual properties. By leveraging proprietary technology like the Katana Engine™ and focusing on historical themes, the company maintains a competitive edge in the global gaming market. This strategic vision is supported by a commitment to human capital, evidenced by an industry-leading 4.6% turnover rate, achieved through comprehensive training, competitive compensation, and a culture that balances artistic vision with business acumen.

Financial performance remains a cornerstone of this strategy, with the company achieving record-high sales of 78.4 billion yen in fiscal year 2022, a significant increase from 37.6 billion yen in 2013. This growth is sustained by a multi-layered revenue model that balances new IP development, series expansion, and highly profitable licensing agreements. To mitigate the inherent risks of the gaming industry, the company employs a conservative financial approach, expensing development costs as they occur to prevent future impairment losses. This fiscal prudence, combined with a 50% total distribution ratio for shareholders, ensures long-term stability and consistent profitability.

Corporate governance serves as the framework for these operations, characterized by a board with significant outside representation and a rigorous skill matrix covering finance, risk management, and entertainment expertise. The company actively manages risks related to market volatility, intellectual property, and technological shifts such as artificial intelligence. Through a combination of strict project-based profitability management, a robust internal control system, and a focus on global expansion, the company continues to scale its operations while maintaining high standards of quality and operational transparency.