{"id":9617,"date":"2021-10-13T00:07:46","date_gmt":"2021-10-12T15:07:46","guid":{"rendered":"https:\/\/www.capcom.co.jp\/ir\/?page_id=9617"},"modified":"2021-11-05T18:37:14","modified_gmt":"2021-11-05T09:37:14","slug":"cfo","status":"publish","type":"page","link":"https:\/\/www.capcom.co.jp\/ir\/english\/data\/oar\/2018\/growth\/cfo.html","title":{"rendered":"Financial Strategy According to the CFO"},"content":{"rendered":"\n<div class=\"oarBnWrapper\">\n\t<div class=\"oarBnBody\">\n\n<div class=\"fixedHeader\">\n\t<section class=\"fixedTop\">\n\t\t<div class=\"container\">\n\t\t<h1><a href=\"\/ir\/english\/data\/oar\/2018.html\"><img decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/img_title01.png\" alt=\"Integrated Report 2018\"><\/a><\/h1>\n\t\t\t<div class=\"ticker\">\n\t\t\t<img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/img_title01-1.png\" alt=\"Aiming for the Top\">\n\t\t\t<\/div><!--\/\/ticker-->\n\t\t<\/div><!--\/\/container-->\n\t<\/section>\t<!--\/\/section-->\n\n\t<section class=\"globalnav\">\n\t<ul>\n\t<li><span class=\"openPopup\">Capcom&#8217;s Value Creation<\/span>\n\t<div class=\"navPopup\">\n\t<div class=\"container\">\n\t<nav>\n\t\t<div class=\"unit\">\n\t\t\t<h2><img decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/Menu\/title_value.png\" alt=\"Capcom's Value Creation:\"><\/h2>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/value\/business.html\"><img decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/Menu\/value_01.jpg\"><br>Value Creation Model<\/a><\/li>   \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/value\/history.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/value_02.jpg\"><br>\n\t\t\t  History of Value Creation<\/a><\/li>     \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/value\/ip.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/value_03.jpg\"><br>Major Intellectual Properties (IP)<\/a><\/li>\n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\t<\/nav>\n\n\t<nav>\n\t\t<div class=\"unit\">\n\t\t<ul> \n\t\t\t<li>&nbsp;<\/li> \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul> \n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/value\/finance.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2017\/Menu\/know_05.jpg\"><br>Financial and ESG Highlights<\/a><\/li> \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t <ul> \n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/value\/segment.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/value_05.jpg\"><br>Business Segments Highlights<\/a><\/li> \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t <ul> \n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/value\/segment.html#vision\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/value_06.jpg\"><br>Medium- to Long-Term Vision<\/a><\/li> \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\t<\/nav>\n\t<!--div class=\"banners\">\n\t<ul>\n\t\t<li><a href=\"#\"><img decoding=\"async\" src=\"images\/banner_02.png\" alt=\"\"><\/a><\/li>\n\t<\/ul>\n\t<\/div--><!--\/\/banners-->\n\n\t<\/div><!--\/\/container-->\n\t<\/div><!--\/\/navPopup-->\n\t<\/li>\n\n\t<li><span class=\"openPopup txt12\">Medium- to Long-Term<br>Growth Strategy<\/span>\n\t<div class=\"navPopup\">\n\t<div class=\"container\">\n\t<nav>\n\t\t<div class=\"unit\">\n\t\t\t<h2><img decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/Menu\/title_growth.png\" alt=\"Medium- to Long-Term Growth Strategy\"><\/h2>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/growth\/ceo.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/growth_01.jpg\"><br>CEO Commitment<\/a><\/li>        \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/growth\/coo.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/growth_02.jpg\"><br>The COO&#8217;s Discussion of Growth Strategies<\/a>\n\t\t\t\t<ul class=\"mT10\">\n\t\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/growth\/analysis_gr-hit.html\">Case Study: Analysis of a Global Hit<\/a><\/li>\n\t\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/growth\/analysis_pdca.html\">Analysis of Successful PDCA Examples<\/a><\/li>\n\t\t\t\t<\/ul>\n\t\t\t<\/li>\n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/growth\/cfo.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/\/growth_03.jpg\"><br>Financial Strategy According to the CFO<\/a><\/li>\n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\t<\/nav>\n\n\t<!--div class=\"banners\">\n\t<ul>\n\t\t<li><a href=\"#\"><img decoding=\"async\" src=\"\/ir\/liquid\/images\/banner_02.png\" alt=\"\"><\/a><\/li>\n\t\t <li><a href=\"#\"><img decoding=\"async\" src=\"\/ir\/liquid\/images\/banner_02.png\" alt=\"\"><\/a><\/li>\n\t<\/ul>\n\t<\/div--><!--\/\/banners-->\n\n\t<\/div><!--\/\/container-->\n\t<\/div><!--\/\/navPopup-->\n\t<\/li>\n\n\t<li><span class=\"openPopup\">The Heart of<br>Value Creation<\/span>\n\t<div class=\"navPopup\">\n\t<div class=\"container\">\n\t<nav>\n\t\t<div class=\"unit\">\n\t\t\t<h2><img loading=\"lazy\" decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/Menu\/title_develop.png\" alt=\"The Heart of Value Creation\" width=\"180\" height=\"151\"><\/h2>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/develop.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/develop_01.jpg\"><br>The Passion and the Prowess to Compete Globally<\/a><\/li>  \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/develop\/re2.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/develop_02.jpg\"><br><em>Resident Evil 2<\/em><\/a><\/li>  \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/develop\/dmc.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/develop_03.jpg\"><br><em>Devil May Cry 5<\/em><\/a><\/li>\n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t<\/nav>\n\n\t<nav>\n\t\t<div class=\"unit\">\n\t\t <ul>\n\t\t <li>&nbsp;<\/li>\n\t\t  <\/ul> \n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/develop\/rock11.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/develop_04.jpg\"><br><em>Mega Man 11<\/em><\/a><\/li>\n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t &nbsp;\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t&nbsp;\n\t\t<\/div><!--\/\/unit-->\n\t<\/nav>\n\n\t<!--div class=\"banners\">\n\t<ul>\n\t\t<li><a href=\"#\"><img decoding=\"async\" src=\"images\/banner_02.png\" alt=\"\"><\/a><\/li>\n\t<\/ul>\n\t<\/div--><!--\/\/banners-->\n\n\t<\/div><!--\/\/container-->\n\t<\/div><!--\/\/navPopup-->\n\t<\/li>\n\n\t<li><span class=\"openPopup\">ESG-Based<br>Value Creation<\/span>\n\t<div class=\"navPopup\">\n\t<div class=\"container\">\n\t<nav>\n\t\t<div class=\"unit\">\n\t\t\t<h2><img decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/Menu\/title_esg.png\" alt=\"ESG-Based Value Creation\"><\/h2>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/esg\/devtop.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/esg_01.jpg\"><br>The Head of Development Discusses Human Resources Strategy<\/a><\/li>        \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/esg\/social.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/esg_04.jpg\"><br>Society and Capcom<\/a><\/li>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/esg\/env.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/esg_03.jpg\"><br>Capcom and the Environment<\/a><\/li>\n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/esg\/governance.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/esg_05.jpg\"><br>Corporate Governance<\/a>\n\t\t\t<ul class=\"mT10\">\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/esg\/governance.html\">Directors<\/a><\/li>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/esg\/features.html\">Features of Capcom Corporate Governance<\/a><\/li>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/esg\/system.html\">Corporate Governance Structure and Initiatives<\/a><\/li>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/esg\/brd_mtg.html\">Major Discussions at Board of Directors Meetings and Audit and Supervisory Committee Meetings Held in Fiscal 2017<\/a><\/li>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/esg\/risk.html\">Risk Management<\/a><\/li>\n\t\t\t<\/ul>\n\t\t<\/li>\n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\t<\/nav>\n\n\t<!--div class=\"banners\">\n\t<ul>\n\t\t<li><a href=\"#\"><img decoding=\"async\" src=\"images\/banner_02.png\" alt=\"\"><\/a><\/li>\n\t<\/ul>\n\t<\/div--><!--\/\/banners-->\n\n\t<\/div><!--\/\/container-->\n\t<\/div><!--\/\/navPopup-->\n\t<\/li>\n\n\t<li><span class=\"openPopup\">Financial Analysis<\/span>\n\n\t  <div class=\"navPopup\">\n\t<div class=\"container\">\n\t<nav>\n\t\t<div class=\"unit\">\n\t\t\t<h2><img decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/Menu\/title_finance.png\" alt=\"\u8ca1\u52d9\u60c5\u5831\"><\/h2>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t<div class=\"unit\">\n\t\t<ul>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/finance\/market.html\"><img decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/Menu\/finance_01.jpg\"><br>An Analysis of the Market and Capcom<\/a><\/li>   \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t\t <div class=\"unit\">\n\t\t <ul>\n\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2018\/finance\/market02.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/Menu\/finance_02.jpg\"><br>Market Analysis<\/a><\/li>   \n\t\t<\/ul>\n\t\t<\/div><!--\/\/unit-->\n\n\t<\/nav>\n\n\n\t<div class=\"banners\">\n\t<ul>\n\t\t<li class=\"titlebox\">Financial data (PDF)<\/li>\n\n\t\t<li><img decoding=\"async\" src=\"\/ir\/assets\/images\/cms_contents\/ico_pdf.svg\" width=\"15\"> <a href=\"\/ir\/english\/assets\/pdf\/oar\/2018\/finance\/oar_finance01.pdf\" target=\"_blank\" rel=\"noopener\">11-Year Summary of Consolidated Financial Indicators (408KB)<\/a><br>\n\t\t\t<img decoding=\"async\" src=\"\/ir\/assets\/images\/cms_contents\/ico_pdf.svg\" width=\"15\"> <a href=\"\/ir\/english\/assets\/pdf\/oar\/2018\/finance\/oar_finance02.pdf\" target=\"_blank\" rel=\"noopener\">Financial Review (440KB)<\/a><br>\n\t\t\t<img decoding=\"async\" src=\"\/ir\/assets\/images\/cms_contents\/ico_pdf.svg\" width=\"15\"> <a href=\"\/ir\/english\/assets\/pdf\/oar\/2018\/finance\/oar_finance03.pdf\" target=\"_blank\" rel=\"noopener\">Segment Information (468KB)<\/a><br>\n\t\t\t<img decoding=\"async\" src=\"\/ir\/assets\/images\/cms_contents\/ico_pdf.svg\" width=\"15\"> <a href=\"\/ir\/english\/assets\/pdf\/oar\/2018\/finance\/oar_finance04.pdf\" target=\"_blank\" rel=\"noopener\">Game Series Sales (864KB)<\/a>\n\t\t<\/li>\n\n\t\t<li>\n\t\t\t<img decoding=\"async\" src=\"\/ir\/assets\/images\/cms_contents\/ico_pdf.svg\" width=\"15\"> <a href=\"\/ir\/english\/assets\/pdf\/oar\/2018\/finance\/oar_finance05.pdf\" target=\"_blank\" rel=\"noopener\">Consolidated Financial Statement (420KB)<\/a><br>\n\t\t\t<img decoding=\"async\" src=\"\/ir\/assets\/images\/cms_contents\/ico_pdf.svg\" width=\"15\"> <a href=\"\/ir\/english\/data\/pdf\/annual\/2018\/annual_2018_06.pdf\" target=\"_blank\" rel=\"noopener\">Notes to Consolidated Financial Statements and Independent Auditor&#8217;s Report (408KB)<\/a>\n\t\t<\/li>\n\t<\/ul>\n\t<\/div><!--\/\/banners-->\n\n\t<\/div><!--\/\/container-->\n\t<\/div><!--\/\/navPopup-->\n\n\n\t<\/li>\n\t<\/ul>\t\n\n\t<\/section>\t<!--\/\/section-->\n<\/div><!--\/\/fixedHeader-->\n<div id=\"hideGnav\"><\/div>                    \n                    \n<main id=\"rs_read\" class=\"cfo oarMain\">\n<div class=\"message_past\">\r\n\t<p class=\"ms\"><a href=\"\/ir\/english\/data\/oar\/2025.html\">Latest version is available on the \"Online Integrated Report 2025\" top page.<\/a><\/p>\r\n<\/div>\n\n<div class=\"fullBox\">\n\n<div class=\"container\">\n<section class=\"intr\">\n<h2 class=\"oar_h2Style\">Financial Strategy According to the CFO<\/h2>\n<\/section>\n<!--\/\/intr-->\n<\/div><!--\/\/container-->\n\n\n<section class=\"vi mT15\">\n<div class=\"container\">\n<h2><img decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/growth\/img_cfo_01.png\" alt=\"Realizing Flexible Investment Responsive to Market Changes with a Stable Financial Base\"><\/h2>\n\n<div class=\"cfoprof\">\n<p class=\"posi\">Director, Executive Corporate Officer<br>and Chief Financial Officer (CFO)<\/p>\n<p class=\"mT10 ceoname\">Kenkichi Nomura<\/p>\n<\/div><!--\/\/ceoprof-->\n<\/div><!--\/\/container-->\n<\/section><!--\/\/vi-->\n\n\n<section class=\"viexp\">\n<div class=\"container clearfix\">\n<p class=\"title\">Financial Strategy<br>Overview<\/p>\n\n<div class=\"fsBox b01\">\n<div class=\"inner\">\n<p class=\"stitle01 mT15\">Strategy <span class=\"circle\">1<\/span><\/p>\n<p class=\"sbtitle mT5\">Improving Net Cash<\/p>\n<p class=\"mT15 exp\">Thoroughly track the Return on Investment (ROI) status for each title and streamline working capital<\/p>\n<\/div><!---\/\/innner-->\n<\/div><!--fsBox-->\n<p class=\"shadowb01\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/growth\/img_cfo_bg02.png\"><\/p>\n\n\n<div class=\"fsBox b02\">\n<div class=\"inner\">\n<p class=\"stitle01 mT15\">Strategy <span class=\"circle\">2<\/span><\/p>\n<p class=\"sbtitle mT15\">Increasing Capital Efficiency<\/p>\n<p class=\"mT15 exp\">Stably Increase Return on Equity (ROE) <\/p>\n<\/div>\n<\/div><!--fsBox-->\n<p class=\"shadowb02\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/growth\/img_cfo_bg02.png\"><\/p>\n<p class=\"pictxt\"><img decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/growth\/img_cfo_04.png\" alt=\"Investing for Our Growth Strategy\"><\/p>\n\n<\/div><!--\/\/container-->\n<\/section><!--\/\/viexp-->\n\n\n\n\n<section class=\"cfo_finance q01\">\n<div class=\"container\">\n\n\n<dl>\n<dt>Having achieved record profits, are there any changes to the financial strategy?<\/dt>\n<dd>We will maintain efforts to increase capital efficiency and improve net cash.<\/dd>\n<\/dl>\n\n<p class=\"p mT25\">Capcom is executing a growth strategy aimed at enhancing corporate value over the medium-to-long term. We are conducting R&#038;D investment amounting to approximately 30 billion yen each fiscal year, to enhance our development environment and strengthen the title lineup in our core Digital Contents business. <br>\nWe have been engaged in increasing capital efficiency and improving net cash to build a strong and flexible financial base to make this investment possible.<\/p>\n\n<p class=\"p\">In the fiscal year ended March 31, 2018, investments based on this growth strategy led to record-breaking major title hits, resulting in all-time high profits that increased cash on hand. In our industry, which continues to rapidly advance, the rise of numerous new technologies and services is also increasing our investment options.<\/p>\n\n<p class=\"p\">That being said, I will maintain the standards we have established for investment decisions and strive for selection and concentration while engaging in a thorough review of the cost of sales, selling, general and administrative expenses and other costs to achieve an even leaner financial foundation. Moreover, we will  stably secure a financial base at a level commensurate with the scale of investment to enable flexible investment in projects with high strategic priority, such as the development of major titles contributing to enhanced IP value, and growth areas including esports.<\/p>\n<\/div><!--\/\/container-->\n<\/section>\n\n\n\n<section class=\"cfo_finance q02\">\n<div class=\"container\">\n<dl>\n<dt>How have you increased capital efficiency?<\/dt>\n<dd>We are making progress with our growth strategy and steadily improving ROE.<\/dd>\n<\/dl>\n\n<p class=\"p mT25\">We focus on ROE as an indicator of capital efficiency, which is steadily increasing with performance growth. Of the three components of ROE, we place emphasis on (1) the net income margin, which has seen further improvement following the progress of our growth strategy. In addition, total assets and shareholders&#8217; equity have remained at an appropriate level, with (2) Total Asset Turnover (TAT) and (3) financial leverage generally maintaining their upward trends.<\/p>\n\n<div class=\"table_color\">\n<table class=\"a01\">\n<thead>\n<tr>\n<th>ROE components <\/th>\n<th>3\/2016<\/th>\n<th>3\/2017 <\/th>\n<th>3\/2018<\/th>\n<th>3\/2019 (Plan)<\/th>\n<\/tr>\n<tr>\n<th colspan=\"5\"><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>(1)  Net margin (%)<\/td>\n<td>10.1<\/td>\n<td>10.2<\/td>\n<td>11.6<\/td>\n<td>12.5<\/td>\n<\/tr>\n<tr>\n<td>(2) TAT (%)<\/td>\n<td>68.1<\/td>\n<td>73.3<\/td>\n<td>75.3<\/td>\n<td>&#8211;<\/td>\n<\/tr>\n<tr>\n<td>(3) Financial leverage (times)<\/td>\n<td>1.50<\/td>\n<td>1.53<\/td>\n<td>1.47<\/td>\n<td>&#8211;<\/td>\n<\/tr>\n<tr>\n<td>ROE (%)<\/td>\n<td>10.6<\/td>\n<td>11.6<\/td>\n<td>13.4<\/td>\n<td>13.4<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div><!--\/\/table_color-->\n\n<p class=\"p mT25\">We forecast ROE of 13.4% in the next fiscal year. We will perform composite checks comparing ROE to net sales, to the forecast, as well as year-over-year in order to continue improving these three factors.<\/p>\n<\/div><!--\/\/container-->\n<\/section><!--\/\/q02-->\n\n\n\n<section class=\"cfo_finance q03\">\n<div class=\"container\">\n<dl>\n<dt>How will Capcom secure net cash and manage risks?<\/dt>\n<dd>We will carefully manage ROI for each title and visualize working capital efficiency.<\/dd>\n<\/dl>\n\n<p class=\"p mT25\">For Capcom to efficiently generate net cash, we formulated two financial strategies focused on generating cash flows through process management. The first is to thoroughly manage return on investment. Accordingly, we manage a database housing the ROI status of each title while ascertaining and analyzing investment profitability. The second strategy is to maximize working capital efficiency. To this end, we are creating a framework to manage our investment turnover period and turnover ratio in a more visible manner.<\/p>\n\n<p class=\"p\">Moreover, net cash in the fiscal year under review was 36.7 billion yen, constituting a substantial increase. Further, &quot;effective net cash,&quot; which was adjusted for accounts receivable and the balance of obligations at the end of the fiscal year accompanying the release of a major title in the second half of the fiscal year&mdash;a unique feature of our industry\u2014increased to 46.2 billion yen. Although the balance of work in progress for game software declined due to the release of major titles at the end of the fiscal year and revisions to the valuation of some balances, overall assets that contribute to future growth continued to steadily increase.<\/p>\n\n<p class=\"txtC mT25\"><img decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/growth\/img_cfo_05.png\" alt=\"Effective Net Cash on a Historical Basis (billion yen)\"><\/p>\n\n<\/div><!--\/\/container-->\n<\/section><!--\/\/q03-->\n\n\n\n\n\n\n<section class=\"cfo_finance q04\">\n<div class=\"container\">\n<dl class=\"mT45\">\n<dt>What is the status of internal reserves and fund procurement?<\/dt>\n<dd>We have secured levels enabling us to respond to the increasing scale of game development and longer investment recovery periods.<\/dd>\n<\/dl>\n\n<p class=\"p\">Consumer game software development expenses have been on the rise since the current-generation of high performance, multifunctional game consoles arrived.<br>\nIn addition to requiring a development period of two or more years for a major title, greater penetration of digital download sales has enabled a longer lifecycle for games, resulting in a longer investment payback period. Furthermore, even online games require ongoing investments for regular post-release updates and network infrastructure maintenance, thus we are required to keep a certain amount of cash on hand.<\/p>\n\n<p class=\"p\">Given these conditions, to simplify our ability to procure funds, and in consideration of reserves for the investment plan and risk management, we have set the level of cash and cash equivalents that must be maintained to be approximately one to two years&#8217; worth of the amount we annually invest in development. This amount is supplemented with cash on hand (46,539 million yen) as well as an unused 26.7 billion yen commitment line of credit (total contract value: 26.7 billion yen) to maintain an appropriate range.<\/p>\n<\/div><!--\/\/container-->\n<\/section>\n\n\n\n\n\n<section class=\"cfo_finance q04\">\n<div class=\"container\">\n<dl class=\"mT45\">\n<dt>Specifically, what kind of growth strategy investments do you make?<\/dt>\n<dd>We invest 84% of management resources in the core Digital Contents business.<\/dd>\n<\/dl>\n\n<p class=\"p\">To achieve stable medium- to long-term growth, we recognize that it is critical to secure a sufficient amount of investment for the Digital Contents business, the source for our original IP. Specifically, in addition to an enhanced title lineup and new technologies, we must invest in hiring more developers and improving our development environment. Accordingly, we will allocate 84% of management resources (R&#038;D investment and capital expenditure totaling 34.5 billion yen in the fiscal year ending March 31, 2019), amounting to an investment of 29.0 billion yen, in the Digital Contents business. Moreover, we use the asset in-development turnover rate as an indicator measuring investment level adequacy. In the fiscal year under review, the asset in- development turnover rate was 3.7 times, an increase compared to 2.9 times in the previous fiscal year.<\/p>\n\n<p class=\"txtC mT45\"><img decoding=\"async\" src=\"\/ir\/english\/assets\/images\/data\/oar\/2018\/growth\/img_cfo_06.png\" alt=\"In-Development Asset Turnover Ratio (times)\"><\/p>\n<\/div><!---\/\/container-->\n\n<\/section><!--\/\/cfo_finance-->\n\n\n\n\n<\/div><!--\/\/fullBox-->   \n\n\n\n<div class=\"container mT25\">\n\n<section>\n\t<div class=\"pdfDownload\">\n\t\t<h3>PDF download<\/h3>\n\t\t<ul>\n\t\t\t<li>\n\t\t\t\t<h4>Medium- to Long-Term Growth Strategy <span>(PDF:3.28MB\/22 pages)<\/span><\/h4>\n\t\t\t\t<p><a href=\"\/ir\/english\/data\/pdf\/annual\/2018\/annual_2018_04.pdf\" target=\"_blank\" rel=\"noopener\">DOWNLOAD<\/a><\/p>\n\t\t\t<\/li>\n\t\t<\/ul>\n\t<\/div>\n<\/section>\n\n<section class=\"related\">\n<h4 class=\"relatedLink mT25\">Related Pages<\/h4>\n\n<div class=\"relatedLink c02 clearfix\">\n<div class=\"cont c01 clearfix\" style=\"height:210px;\">\n<div class=\"pic\"><a href=\"coo.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/related\/thumb_coo.jpg\"><\/a><\/div>\n<div class=\"txt\">\n<p class=\"title\">[Medium- to Long-Term Growth Strategy]<br>The COO&#8217;s Discussion of Growth Strategies<\/p>\n<p class=\"txt mT10\"><a href=\"coo.html\">Capcom COO Haruhiro Tsujimoto discusses our growth strategies; &quot;Consumer&quot;, &quot;Mobile&quot; and &quot;Esports&quot;.<\/a><\/p>\n<\/div><!--\/\/txt-->\n<\/div><!--\/\/cont01-->\n\n\n<div class=\"cont c02 clearfix\" style=\"height:210px;\">\n<div class=\"pic\"><a href=\"..\/value\/finance.html\"><img decoding=\"async\" src=\"\/ir\/assets\/images\/data\/oar\/2018\/related\/thumb_finance.jpg\" border=\"0\"><\/a><\/div>\n<div class=\"txt\">\n<p class=\"title\">[Capcom&#8217;s Value Creation]<br>Financial Highlights<\/p>\n<p class=\"txt mT10\"><a href=\"..\/value\/finance.html\">Capcom explains our financial highlights in past 11 years.<\/a><\/p>\n<\/div><!--\/\/txt-->\n\n<\/div><!--\/\/cont02-->\n\n<\/div><!--\/\/relatedLink-->\n\n<\/section>\n\n<\/div><!--\/\/container-2-->\n\n\n<\/main>\n\n    <div class=\"f_bknumber\">\r\n        <div class=\"box clearfix\">\r\n            <p>Online Integrated Report Archives<\/p>\r\n            <ul class=\"mT10\">\r\n\t\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2025.html\" target=\"_blank\">2025<\/a><\/li>\r\n\t\t\t\t<li><a href=\"\/ir\/english\/data\/oar\/2024.html\" target=\"_blank\">2024<\/a><\/li>\r\n                <li><a href=\"\/ir\/english\/data\/oar\/2023.html\" target=\"_blank\">2023<\/a><\/li>\r\n                <li><a href=\"\/ir\/english\/data\/oar\/2022.html\" target=\"_blank\">2022<\/a><\/li>\r\n                <li><a href=\"\/ir\/english\/data\/oar\/2021.html\" target=\"_blank\">2021<\/a><\/li>\r\n                <li><a href=\"\/ir\/english\/data\/oar\/2020.html\" target=\"_blank\">2020<\/a><\/li>\r\n                <li><a href=\"\/ir\/english\/data\/oar\/2019.html\" target=\"_blank\">2019<\/a><\/li>\r\n                <li><a href=\"\/ir\/english\/data\/oar\/2018.html\" target=\"_blank\">2018<\/a><\/li>\r\n                <li><a href=\"\/ir\/english\/data\/oar\/2017.html\" target=\"_blank\">2017<\/a><\/li>\r\n            <\/ul>\r\n        <\/div>\r\n        <!--\/\/box-->\r\n    <\/div>\n\t<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Capcom&#8217;s Value Creation Value Creation Model History of Value Creation Major Intellectual Properties (IP [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"parent":9607,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"template\/other_onecol.php","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-9617","page","type-page","status-publish","hentry"],"acf":[],"aioseo_notices":[],"lang":"english","translations":{"english":9617,"ja":6502},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/www.capcom.co.jp\/ir\/wp-json\/wp\/v2\/pages\/9617"}],"collection":[{"href":"https:\/\/www.capcom.co.jp\/ir\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.capcom.co.jp\/ir\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.capcom.co.jp\/ir\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.capcom.co.jp\/ir\/wp-json\/wp\/v2\/comments?post=9617"}],"version-history":[{"count":5,"href":"https:\/\/www.capcom.co.jp\/ir\/wp-json\/wp\/v2\/pages\/9617\/revisions"}],"predecessor-version":[{"id":11350,"href":"https:\/\/www.capcom.co.jp\/ir\/wp-json\/wp\/v2\/pages\/9617\/revisions\/11350"}],"up":[{"embeddable":true,"href":"https:\/\/www.capcom.co.jp\/ir\/wp-json\/wp\/v2\/pages\/9607"}],"wp:attachment":[{"href":"https:\/\/www.capcom.co.jp\/ir\/wp-json\/wp\/v2\/media?parent=9617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}