Koei Tecmo

Game Co.

212 documents

Japanese developer/publisher. Dynasty Warriors, Nioh, Dead or Alive, Atelier, Romance of the Three Kingdoms.

Documents

Financial

Regarding SDGs/ESG FY2021

Koei Tecmo’s fiscal year 2021 strategy emphasizes a commitment to sustainable growth through a materiality matrix focused on environmental stewardship, social responsibility, and robust corporate governance. By transitioning to electronic manuals and migrating to cloud-based server infrastructure, the organization achieved significant resource conservation, including the saving of 49 tons of paper. These environmental efforts are paired with a sophisticated governance overhaul designed to meet the Tokyo Stock Exchange’s Prime Market listing criteria. This transition was facilitated by innovative financial maneuvers, such as the issuance of Zero Coupon Convertible Bonds and a strategic tender offer to improve the tradable share ratio, earning industry recognition for capital market transparency. Human capital remains a central pillar of the corporate mission, evidenced by a substantial 23% increase in base salaries and a low employee separation rate of 4.2%. The organization fosters diversity and long-term retention through a 100% return rate from childbirth leave and significant financial incentives for family growth, such as a 2 million yen bonus for a third child. Leadership diversity is also a priority, with women occupying nearly one-third of CG division leadership roles and 16.7% of the Board of Directors. These internal improvements are matched by a commitment to product responsibility, including strict adherence to global rating systems and the utilization of proprietary technology like the Katana Engine™ to ensure operational efficiency and quality. The scope of these initiatives extends to global social contributions and regional revitalization within Japan. The group provided $500,000 in humanitarian aid for Ukraine and collaborated with local governments to leverage historical intellectual properties for public safety and tourism campaigns. By integrating intellectual property protection with educational outreach and disaster relief, the organization aligns its commercial success with broader societal value. This comprehensive approach to ESG and SDG integration reflects a long-term vision for transparent communication and value creation within the global gaming industry.

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Koei TecmoApr 2022

Financial

Summary of Consolidated Financial Results for the Year Ended March 31, 2022

Koei Tecmo Holdings achieved substantial financial growth during the fiscal year ended March 31, 2022, characterized by a 20.5% increase in net sales to ¥72.76 billion and a 41.5% surge in operating profit to ¥34.53 billion. This performance was bolstered by strong operational cash flows of ¥24.82 billion, contributing to a rise in cash and cash equivalents to ¥19.50 billion. Despite these gains, total net assets decreased from ¥165.13 billion to ¥138.10 billion, a shift primarily driven by a strategic ¥38.53 billion expenditure on treasury share purchases. The company’s capital structure underwent significant changes during this period, marked by the issuance of ¥48.10 billion in convertible bonds. This influx of capital supported an aggressive investment strategy, with ¥146.63 billion directed toward the purchase of investment securities. Total assets climbed to ¥219.80 billion, reflecting a portfolio heavily weighted toward cash and securities. While the company maintained a robust profit attributable to owners of ¥35.36 billion, it also distributed ¥14.93 billion in dividends, balancing shareholder returns with large-scale reinvestment. Looking toward the 2023 fiscal year, the outlook remains cautious despite the previous year's momentum. Projections suggest a modest 5.8% increase in sales alongside a forecasted 5.9% decline in operating profit. This conservative guidance indicates a transition period following a year of record-breaking financial expansion and significant capital reallocation. The overall fiscal health remains stable, supported by high liquidity and a diversified asset base, even as the company prepares for potential fluctuations in profitability in the near term.

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Koei TecmoApr 2022

Financial

Financial Highlights for the 1st Half of the Fiscal Year Ending March 2022 (FY2021)

Koei Tecmo Holdings Co., Ltd. reported significant growth across all major financial metrics for the first half of the fiscal year ending March 2022. Net sales reached 37.22 billion yen, representing a 60.8% increase compared to the same period in the previous year. This growth was mirrored in profitability, with operating income nearly doubling to 16.42 billion yen, a 94.4% year-over-year increase. Net income also saw a substantial rise of 53.2%, totaling 18.14 billion yen. The entertainment segment remains the primary driver of the company’s performance, contributing 35.25 billion yen in sales and 16.12 billion yen in operating income. While the amusement segment is smaller in scale, it demonstrated the highest relative growth in profitability, with operating income surging 461.8% to 191 million yen. Real estate and other smaller segments also showed positive sales trends, though their impact on the overall bottom line remains secondary to the core gaming business. The consolidated balance sheet as of September 30, 2021, shows a stable financial position with total assets of 190.8 billion yen. A significant portion of the company's asset base is held in investment securities, valued at 107.29 billion yen. Total net assets stood at 164.98 billion yen, maintaining a strong equity ratio despite a slight decrease in accumulated other comprehensive income due to fluctuations in unrealized gains on securities. Looking ahead to the full fiscal year, the company forecasts total net sales of 65 billion yen and an operating income of 24.5 billion yen. While the first-half results were exceptionally strong, the full-year forecast suggests a more conservative outlook for the second half, with projected year-over-year declines in net income and income before taxes, estimated at 10.3% and 7.1% respectively.

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Koei TecmoMar 2022

Financial

FY2022 Annual Presentation Materials

Koei Tecmo Holdings outlines a strategic framework for fiscal year 2022 centered on the global expansion of its intellectual properties and the diversification of its revenue streams. The primary objective is to leverage established franchises across multiple platforms and genres while aggressively pursuing international markets. This strategy is supported by a robust release schedule featuring high-profile titles such as Wild Hearts, Wo Long: Fallen Dynasty, Atelier Ryza 3, and Winning Post 10, alongside mobile offerings like Blue Reflection Sun and Dragon Quest Champions. A significant component of the growth model involves a multi-layered collaboration strategy. This includes licensing intellectual property to global partners and engaging in co-development projects with leading industry players. By collaborating with external entities, the organization aims to mitigate development risks, gain technical expertise from partners, and create new opportunities for series growth. These efforts extend beyond traditional gaming into peripheral markets, including movies, apparel, food, and various merchandise tie-ins, reflecting a holistic approach to brand management. The operational focus emphasizes strengthening development capabilities to produce new global IPs while maintaining the longevity of existing series through consistent updates and multi-platform availability. By balancing internal development with strategic licensing and collaborative ventures, the company seeks to maximize the value of its portfolio. This analytical outlook suggests a transition toward a more globally integrated business model, prioritizing high-quality production and strategic partnerships to drive long-term financial performance and brand recognition in the competitive gaming landscape.

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Koei TecmoJan 2022

Financial

Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2021 (Based on Japanese GAAP)

Koei Tecmo Holdings Co., Ltd. reported significant growth in its consolidated financial results for the nine-month period ending December 31, 2021. The findings demonstrate a strong upward trend in profitability and scale, with net sales reaching 55.3 billion yen, a 25.9% increase over the same period in the previous year. Operating profit rose by 40.1% to 27.1 billion yen, while ordinary profit climbed 29.7% to 38.7 billion yen. Profit attributable to owners of the parent reached 28.2 billion yen, representing a 27.4% year-on-year increase. The financial position of the company expanded considerably during this timeframe. Total assets grew from 190.6 billion yen at the end of March 2021 to 252.5 billion yen by December 31, 2021. This growth was supported by a substantial increase in current assets, particularly in securities and cash holdings. On the liabilities side, the company issued over 48 billion yen in convertible-bond-type bonds with share acquisition rights. Despite the increase in total liabilities, the equity ratio remained robust at 70.4%, and net assets per share increased to 1,067.91 yen. Non-operating activities contributed heavily to the bottom line, characterized by 15.1 billion yen in gains from the sale of investment securities. However, these were partially offset by 11.1 billion yen in non-operating expenses, including a 6.3 billion yen loss on the valuation of derivatives. Looking forward, the company maintains a positive full-year forecast for the fiscal year ending March 31, 2022, projecting net sales of 71 billion yen and a profit of 32 billion yen. The results were prepared in accordance with Japanese GAAP and reflect the company's performance across its global entertainment and investment operations.

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Koei TecmoJan 2022

Financial

Financial Highlights for the 1st Quarter of the Fiscal Year Ending March 2022 (FY2021)

Koei Tecmo Holdings reported significant growth in its financial results for the first quarter of the fiscal year ending March 2022. The primary thesis of the data indicates a period of rapid expansion, with net sales reaching 20.52 billion yen, an 80.6% increase compared to the same period in the previous year. This growth was mirrored in profitability, as operating income surged by 121.5% to 9.72 billion yen, and net income doubled to 13.38 billion yen. The entertainment segment remains the dominant driver of the company’s performance, accounting for 19.65 billion yen in sales and 9.64 billion yen in operating income. Other segments, including amusement and real estate, showed more modest contributions but generally trended upward in revenue. Geographically, the results reflect the consolidated global operations of the Japanese firm, covering the three-month period ending June 30, 2021. The balance sheet reveals a stable financial position with total assets valued at 190.84 billion yen. While current assets increased to 42.36 billion yen, driven by higher marketable securities and receivables, investment securities remained a substantial component of the company's long-term assets at 104.17 billion yen. Despite the strong quarterly performance, the full-year forecast remains conservative, projecting a slight decline in net income and income before taxes compared to the previous fiscal year's total results, suggesting an anticipation of normalizing growth rates or increased costs in the coming quarters.

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Koei TecmoJan 2022

Financial

Financial Results for the First Quarter of the Fiscal Year Ending March 2022

Koei Tecmo Holdings reported record-high performance for the first quarter of the fiscal year ending March 2022, characterized by significant year-over-year growth across all primary financial metrics. Net sales reached 20.52 billion yen, an 80.6% increase over the previous year, while operating profit surged 121.5% to 9.72 billion yen. This growth was driven by a robust console software lineup, including the launch of Samurai Warriors 5 and various remastered titles, alongside strong performance in the online and mobile segments. The entertainment segment remained the primary revenue driver, contributing 19.65 billion yen to total sales. Within this segment, smartphone and social game revenues nearly doubled, bolstered by the success of Romance of the Three Kingdoms Ha-do and lucrative IP licensing-out agreements, such as Three Kingdoms Tactics in Japan. Geographically, the company maintained a balanced revenue split, with overseas markets accounting for 51.3% of total sales, though Japan saw the most dramatic year-over-year growth at 129.8%. Digital sales continued to gain prominence, with the digital download ratio for console units rising to 61.2% from 49.1% in the prior year. Based on these strong results, the company issued an upward revision for its half-year earnings estimates. However, it maintained its original full-year forecast due to potential volatility in the global securities market affecting non-operating income and uncertainties regarding the timing of IP licensing revenue in the second half of the year. Future growth strategies focus on a multi-platform approach and the global expansion of key mobile titles into markets such as Taiwan and China.

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KOEI TECMO HOLDINGS CO., LTD.Jul 2021

Financial

Financial Results: For the Fiscal Year Ending March 2021

Koei Tecmo achieved record-breaking financial performance during the fiscal year ending March 2021, characterized by a 41.6% increase in net sales to ¥60.37 billion and a 93.1% surge in net profit to ¥29.55 billion. This growth was primarily catalyzed by the Entertainment segment, where overseas sales nearly doubled and mobile revenue rose by 80.9%. Success was driven by high-profile releases such as Hyrule Warriors: Age of Calamity and the strategic licensing of core intellectual properties, particularly the Romance of the Three Kingdoms series, which bolstered the company’s presence in the global smartphone market. The strategic framework relies on a multi-layered revenue cycle that maximizes the lifecycle of established intellectual property through cross-platform expansion and international collaborations. By leveraging console-originated IP into mobile spin-offs and licensing agreements, the company has reached 99 million cumulative downloads with a 70% overseas ratio. The successful establishment of the Nioh franchise, which reached 5 million units sold, serves as a blueprint for future growth. The medium-term management plan through fiscal year 2023 targets ¥90 billion in sales and ¥30 billion in operating profit, supported by the development of new high-budget IP and a robust pipeline of smartphone titles. For the upcoming fiscal year, projections indicate a 7.7% increase in total net sales to ¥65 billion, though net profit is expected to moderate slightly to ¥26.5 billion due to increased competition and shifting market conditions. While overseas console unit sales are forecasted to decline, a 14.5% increase in digital downloads and mobile engagement is expected to offset these losses. The company remains committed to a shareholder-focused financial policy, maintaining a 50% consolidated payout ratio while reinvesting in global IP expansion to ensure long-term sustainability across the Japanese and international markets.

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KOEI TECMO HOLDINGS CO., LTD.Apr 2021

Financial

FY2020 3rd Quarter Presentation Materials

Koei Tecmo Holdings reported record-high financial performance for the third quarter of fiscal year 2020, ending December 31, 2020. Driven by strong global software sales and high non-operating income, the company achieved an operating profit of 10.9 billion yen in a single quarter. Year-to-date sales reached 43.9 billion yen, a 64.7% increase over the previous year, while operating profit surged by 201.2% to 19.3 billion yen. This growth was balanced across geographic regions, with overseas sales increasing by 124.7% to account for over 50% of total revenue. The primary drivers of this performance were major console releases and successful mobile IP licensing. Hyrule Warriors: Age of Calamity emerged as a significant hit, selling over 3.5 million units globally. Other notable contributors included Atelier Ryza 2 and the continued performance of the back-catalogue title Nioh 2, which surpassed 1.4 million units. In the mobile and online segment, Romance of the Three Kingdoms Ha-do and the licensed title Romance of the Three Kingdoms Senryaku-ban maintained strong momentum, contributing to an 86.5% year-over-year increase in smartphone and social game revenue. Based on these results, the company upwardly revised its full-year earnings estimates and dividend forecasts. The full-year operating profit outlook was raised from 17 billion yen to 22 billion yen. Future growth strategies focus on multi-platform global expansions, including the Western release of Persona 5 Strikers and the launch of Dynasty Warriors mobile titles in Japan and China. The company maintains a policy of a 50% consolidated payout ratio, reflecting its strengthened financial position and commitment to shareholder returns.

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Koei TecmoJan 2021

Financial

Financial Results for the First Half of the Fiscal Year Ending March 2021

Koei Tecmo achieved record-high financial performance during the first half of the fiscal year ending March 2021, characterized by a 39.7% increase in sales to ¥23.1 billion and a 145.6% surge in operating profit to ¥8.4 billion. This growth was primarily catalyzed by a multi-tiered revenue structure that emphasizes high-margin royalty income from intellectual property licensing and robust performance in the mobile segment. Notably, the licensed title Romance of the Three Kingdoms Senryaku-ban maintained a top-three sales ranking in the Chinese market for seven consecutive months, illustrating the success of the company’s global expansion strategy. The entertainment segment further benefited from steady back-catalog sales of established titles such as Nioh 2 and Atelier Ryza. While the company incurred a minor extraordinary loss of ¥124 million due to COVID-19 impacts on physical amusement facilities, the overall digital and licensing momentum more than offset these pressures. Strategic management decisions included shifting the launch of a major new IP, targeted for five million units in sales, to fiscal year 2022 to maximize quality and align with the capabilities of next-generation hardware. Based on these results, the full-year ordinary profit forecast has been upwardly revised to ¥25 billion. Management intends to sustain this positive growth cycle through a combination of internal game engine optimization, multi-platform global releases, and the transition of successful new IPs into long-term series. To reflect this strong financial position and enhance shareholder value, a 1:1.3 stock split is scheduled for April 2021, signaling confidence in the company’s ability to meet its mid-term management objectives through continued international scaling and high-quality project management.

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Koei TecmoOct 2020

Financial

Financial Results for the First Quarter of the Fiscal Year Ending March 2021

Koei Tecmo Holdings reported record-high financial performance for the first quarter of the fiscal year ending March 2021, characterized by significant growth in profitability despite a lack of major new title launches. Net sales reached 11.36 billion yen, a 57.2% increase year-over-year, while operating profit surged by 358.6% to 4.38 billion yen. This performance was primarily driven by high-margin royalty income from the IP licensing-out title Romance of the Three Kingdoms Senryaku-ban in China and robust back-catalogue sales for Nioh 2, which surpassed one million total units sold during the period. The geographic scope of the results highlights a shift toward international markets, with overseas sales accounting for 61.7% of total revenue, up from 39.5% the previous year. Asia, excluding Japan, emerged as a dominant region, contributing 40.6% of total sales. While the entertainment segment flourished, the amusement segment suffered due to COVID-19, with facility operations temporarily shut down in April and May, resulting in an extraordinary loss of 124 million yen. The methodology for these results involves consolidated financial reporting across the company’s entertainment, amusement, and real estate segments for the period of April to June 2020. Looking forward, the company declined to provide a full-year earnings estimate due to ongoing pandemic uncertainties. However, strategic priorities include the development of a console title aimed at five million sales and the expansion of mobile titles, such as the upcoming Dynasty Warriors: Ha published by Tencent, to maintain momentum in the licensing and digital markets.

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Koei TecmoJul 2020

Financial

Financial Results for the Fiscal Year Ending March 2020

Koei Tecmo achieved record-breaking financial performance for the fiscal year ending March 2020, characterized by a 9.4% increase in net sales to ¥42.6 billion and a 16.6% rise in operating profit to ¥14.1 billion. This growth was primarily catalyzed by the Online/Mobile segment, where high-performing IP licensing titles, most notably Romance of the Three Kingdoms Senryaku-ban in the Chinese market, generated significant royalty income. The console segment also contributed robustly through the successful launch of Nioh 2 and a steady shift toward digital distribution, which accounted for nearly 40% of total console unit sales. The geographic footprint of the business continues to expand, with overseas sales rising to 37% of total revenue. This international growth is supported by a multi-platform strategy designed to leverage established intellectual properties through both internal development and high-profile external collaborations. By diversifying revenue streams across mobile royalties and traditional software sales, the company exceeded its initial fiscal targets, leading to an increased dividend of 61 yen per share. This multi-tiered revenue structure provides a stable financial foundation even as the industry faces broader macroeconomic shifts. Looking ahead, the outlook remains cautious due to the operational uncertainties introduced by the COVID-19 pandemic, leading to the omission of specific earnings estimates for the following fiscal year. Instead, the strategic focus shifts toward long-term sustainability, emphasizing global IP development and a commitment to environmental, social, and governance goals. While forward-looking projections remain subject to market risks and volatility, the current trajectory underscores a successful transition toward a digitally-driven, globally-oriented business model.

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Koei TecmoApr 2020