CAPCOM : Integrated Report2020

CAPCOM INTEGRATED REPORT

2020

Code Number: 9697

CONNECTING

Continuing to create financial and non-financial value

Achieving seven consecutive years of increased operating income

In the constantly evolving game industry, Capcom sees change as opportunity, and as a result of the progress we have made with business reforms such as strengthening digital sales and switching to in-house production, the fiscal year ended March 2020 marks seven years of consecutive increased operating income. Our stock price has also risen as our performance

improves, even following the stock split we conducted on April 1, 2018 in order to improve the liquidity of our stock and expand our investor base, and it now exceeds the level it was at prior to the split, reaching a record high. We will continue to increase our corporate value (market capitalization) with sustainable business growth so that we can reward our stockholders' loyalty.

Market	Stock price	Operating	Stock split	August 31, 2020
696.2 billion yen
capitalization	(yen)	Income	1:2
(billion yen)		(million yen)	March 31, 2018
			4,985 yen	August 31, 2020
				5,140 yen
March 31, 2013			25,500
1,476 yen
		million yen

				March 31, 2018			22,827
				337.6 billion yen
March 31, 2013					18,144
99.9 billion yen				16,037
				13,650
	10,299	10,582	12,029
10,151
2013	2014	2015	2016	2017	2018	2019	2020	2021
								(plan)

(Years ended March 31)

01 CAPCOM INTEGRATED REPORT 2020

Providing smiles and moving hearts all across the globe

Since Capcom's founding in 1983, we have continued to move hearts and deliver smiles through the entertainment of games. In recent years, the spread of the internet, PCs, and smartphones has made it possible to enjoy games even without game consoles, while at home, and anywhere around the world. As a result, Capcom's game software distribution volume, and more

specifically, digital sales have increased significantly. We aim to continue providing even more game software to an even greater extent of the world's countries and regions in order to bring smiles to as many people around the globe as possible.

Total	Digital							28,000
units sold	units sold							thousand units
(thousand units)	(thousand units)					25,300	25,500
						24,400	23,500
									thousand units
					19,400			20,550
16,700	17,500
		15,000			15,300
			13,000			12,900
					9,000
		4,800	5,000	6,100
2,700
2013	2014	2015	2016	2017	2018	2019	2020	2021

(plan)

(Years ended March 31)

CAPCOM INTEGRATED REPORT 2020 02

CAPCOM INTEGRATED REPORT

2020

Value Creation Story

Medium- to Long-Term Growth Strategy

Latest Creative Report

Foundation for Sustainable Growth (ESG)

Financial

Analysis and

Corporate Data

1. History of Value Creation

1. Value Creation Model

1. Major Intellectual Properties (IP)

1. Effectively Leveraging IP

1. Financial Highlights

1. ESG Highlights

1. Business Segments Highlights

19 Risks and Opportunities / Medium- to Long-Term Vision

21 CEO Commitment

1. The COO's Discussion of Growth Strategies

1. Financial Strategy According to the CFO

43 The Head of Development Discusses Development Strategy

45 Resident Evil Village

1. ESG Information
2. Capcom and the Environment
3. Society and Capcom

57 Corporate Governance

57 Directors

59 Corporate Governance Structure and Initiatives

66 Message from a Member of the Audit and Supervisory Committee

1. An Analysis of the Market and Capcom

1. Market Analysis

71 11-Year Summary of Consolidated Financial Indicators

73 Segment Information

1. Stock Data
2. Corporate Data

Subject index for reference

External environment P67, P69-70

Senior management perspectives P21-30,P31-38,P39-42,P43-44 Growth strategy P19-20,P25-27,P31-38

Performance and financial condition P13-14,P39-42,P71-77 Business details P07-08,P11-12,P17-18, P68, P73-77

Relationship with stakeholders P15-16,P49-56 Company and market analysis P19, P67-70World-class development capabilities P43-44,P45-48

Editorial policy

Capcom's Integrated Report conveys initiatives aimed at improving corporate value over the medium- to long-term to all stakeholders. This report is issued with the intent of creating opportunities for further dialogue. Furthermore, we aim to express ideas in a simple and easily understood manner and visually represent important items to aid understanding. Details are available online.

Period and scope

This report reviews the fiscal year ended March 31, 2020 (April 1, 2019-March 31, 2020). When necessary, it also includes references to fiscal periods before and after this timeframe. Unless otherwise indicated, the scope of data presented in this report is on a consolidated basis.

03 CAPCOM INTEGRATED REPORT 2020

Corporate Philosophy

Capcom:

Creator of

entertainment

culture that

stimulates

your senses

Our principle is to be a creator of entertainment culture.

Through development of highly creative software contents that excite people, stimulate their senses,

and bring smiles to their faces we aim to offer an entirely new level of game entertainment.

Since Capcom's establishment in 1983,

we have leveraged our strength in world-class development capabilities to create a plethora of products.

Game content is an artistic product that fascinates people,

consisting of highly creative, multi-faceted elements such as characters, stories, worlds and music.

This content can be deployed in a variety of media while being used to support the creation of a richer society.

Going forward, Capcom aims to become a company that brings happiness to people and society

by offering the most entertaining content in the world.

CAPCOM INTEGRATED REPORT 2020 04