Capcom FY2023 H1 Earnings Release

Oct, 2023 0 Capcom Public Relations & Investor Relations SectionCapcom Public Relations & Investor Relations Section
Capcom Co., Ltd.
(TSE Prime, 9697)
First Half Report
Fiscal year ending March 31, 2024

1 Capcom Public Relations & Investor Relations Section
Major Takeaways
◼ H1 Results
• Sales and profit up due to digital sales, including major new titles
• Sales of Street Fighter 6 surpassed 2.47 million units
• Game sales grew YoY from 21.3 million units to 22.6 million units
• Sales and profit grew YoY in Amusement Equipments;
Arcade Operations business profit on par with previous year
◼ Full -Year Business Plan
• H1 performance in -line with plan; no change in full -year forecast
• Will focus on expanding sales in Digital Contents business as we
work to achieve our existing full -year guidance
*Table: YoY indicates percent change from the same term of the previous year
(million yen)2022/9 YoY 2023/9 YoY Difference 2024/3 Plan YoY
Net sales 49,067 -3 0 % 74,934 53% 25,867 140,000 11%
Operating income 21,895 -2 4 % 33,835 55% 11,940 56,000 10%
Operating margin 44.6% – 45.2% – – 40.0% –
Ordinary income 22,996 -2 3 % 36,164 57% 13,168 56,000 9%
Net income attr ibutableto owner s of the par ent 16,142 -2 7 % 25,287 57% 9,145 40,000 9%

2 Capcom Public Relations & Investor Relations Section
Summary of Major Financial Information / Our Major IP
Forward -looking Statements
Strategies, plans, outlooks and other statements that are not historical facts are based on assumptions that use information cur rently available
and reasonable judgments. Actual performance may be significantly different from these statements for a number of reasons.
In the entertainment industry, which includes Capcom, performance may be highly volatile because of diverging user needs and oth er changes
in market conditions.
Factors that can affect Capcom’s performance include: (1) the number of hit titles and sales volume of home video games, whic h a ccounts for
the majority of sales; (2) progress in developing home video games; (3) consumer demand for home video game consoles; (4) sal es outside
Japan; (5) changes in stock prices and exchange rates; (6) alliances with other companies concerning product development, sal es and other
operations; (7) changes in market conditions; (8) natural disasters, disease outbreaks, economic crises and other unforeseeab le events. Please
note that this is not a complete list of factors that can influence Capcom’s operating results.
4. Supplement 13
page Contents
2. Q2 Financial Highlights 4
1. Forecasts for FY3/24 3
3. Business Segment Results 7

3 Capcom Public Relations & Investor Relations Section
Aiming for 11 consecutive years of OP growth
driven by steady growth of Digital Contents business
(million yen)
1. Forecasts for FY3/24
◼ Expect increased sales and profit due to digital sales growth in the Consumer sub -segment
◼ Foreign exchange rate forecast (end of the period ): USD ¥125 、 Euro ¥135
◼ Earnings per share forecast: ¥191.28
◼ Dividend forecast: interim dividend of ¥27 and year -end dividend of ¥27
resulting in a ¥54 dividend for the fiscal year
*Table: YoY indicates percent change from the same term of the previous year2020/3 YoY 2021/3 YoY 2022/3 YoY 2023/3 YoY 2024/3 Plan YoY Difference
Net sales 81,591 -1 8 % 95,308 17% 110,054 16% 125,930 14% 140,000 11% 14,070
Operating income 22,827 26% 34,596 52% 42,909 24% 50,812 18% 56,000 10% 5,188
Operating margin 28.0% – 36.3% – 39.0% – 40.3% – 40.0% – –
Ordinary income 22,957 26% 34,845 52% 44,330 27% 51,369 16% 56,000 9% 4,631
Net income at t ribut ablet o owners of t he parent 15,949 27% 24,923 56% 32,553 31% 36,737 13% 40,000 9% 3,263

4 Capcom Public Relations & Investor Relations Section
⚫ Sales and profit up YoY due primarily to major new title release in
Consumer sub -segment in H1
⚫ Ordinary income includes foreign exchange gain of ¥1,832 million
◼ 6 Months Results in FY9/23 (consolidated)
2 -1. Q2 Financial Highlights – Consolidated Business Results (1)
(million yen)
*Table: YoY indicates percent change from the same term of the previous year2019/9 YoY 2020/9 YoY 2021/9 YoY 2022/9 YoY 2023/9 YoY Difference
Net sales 37,272 -1 4 % 42,059 13% 69,995 66% 49,067 -3 0 % 74,934 53% 25,867
Operating income 13,992 33% 17,863 28% 28,924 62% 21,895 -2 4 % 33,835 55% 11,940
Operating margin 37.5% – 42.5% – 41.3% – 44.6% – 45.2% – –
Ordinary income 14,002 36% 17,571 26% 29,723 69% 22,996 -2 3 % 36,164 57% 13,168
Net income attr ibutableto owner s of the par ent 9,846 44% 12,993 32% 22,219 71% 16,142 -2 7 % 25,287 57% 9,145

5 Capcom Public Relations & Investor Relations Section
◼ FY9/23 Net Sales/Operating Income (by segment)
2 -1. Q2 Financial Highlights – Consolidated Business Results (2)
(million yen)
*Adjustments include unallocated corporate operating expenses. The corporate operating expenses, which do not belong to any r epo rtable segment, mainly consist of administrative expenses.
*Table: YoY indicates percent change from the same term of the previous year2019/9 YoY 2020/9 YoY 2021/9 YoY 2022/9 YoY 2023/9 YoY Difference 2024/3 Plan YoY
Net sales 37,272 -14% 42,059 13% 69,995 66% 49,067 -30% 74,934 53% 25,867 140,000 11%
Digital Contents 29,163 -15% 35,378 21% 59,803 69% 36,062 -40% 61,275 70% 25,213 106,300 8%
A rcade Operations 6,233 13% 4,031 -35% 5,647 40% 7,323 30% 9,169 25% 1,846 18,000 15%
A musement Equipments 241 -89% 1,325 450% 1,611 22% 3,023 88% 2,598 -14% -425 10,000 28%
Other Businesses 1,633 16% 1,323 -19% 2,933 122% 2,657 -9% 1,891 -29% -766 5,700 31%
Operating income 13,992 33% 17,863 28% 28,924 62% 21,895 -24% 33,835 55% 11,940 56,000 10%
Digital Contents 14,503 23% 19,849 37% 30,216 52% 21,826 -28% 34,503 58% 12,677 58,900 10%
A rcade Operations 915 25% -262 – 71 – 677 854% 1,128 67% 451 1,300 6%
A musement Equipments 67 – 18 -73% 388 2056% 1,721 344% 1,781 4% 60 3,700 8%
Other Businesses 733 7% 552 -25% 1,370 148% 1,258 -8% 614 -51% -644 1,600 12%
A djustments* -2,227 – -2,294 – -3,121 – -3,588 – -4,192 – -604 -9,500 –

6 Capcom Public Relations & Investor Relations Section
◼ FY9/23 Balance Sheet/Statement of Cashflows (Summary)
2 -2. Q2 Financial Highlights – Financial Position
(million yen)
(million yen) Statement of Cashflows
Balance Sheet
*Deferred income of ¥1.1 billion consists primarily of revenue from Street Fighter 6 that was deferred until the release of DLC. We anticipate this revenue will gradually be recognized in net sales by the end of FY2024.
*YoY on the Balance Sheet indicates percent change from the end of the previous year2019/9 Yo Y 2020/9 Yo Y 2021/9 Yo Y 2022/9 Yo Y 2023/9 Yo Y Difference
Cash flows from operating activities 10,138 – 8,802 – 48,432 – 14,515 – 27,226 – 12,711
　　 Net income before income taxes 13,991 – 17,564 – 29,718 – 22,998 – 36,165 – 13,167
　　 Increase (decrease) in notes and accounts receivable – trade 866 – 10,156 – 18,992 – -3,498 – 13,448 – 16,946
　　 Decrease (increase) in work in progress for game software -5,263 – -2,604 – 2,592 – -9,221 – -2,123 – 7,098
　　 Decrease (increase) in deferred revenue 2,801 – -6,753 – 1,420 – 5,452 – -4,429 – -9,881
Cash flows from investing activities -1,350 – -2,451 – -6,174 – -1,931 – -3,250 – -1,319
Cash flows from financing activities -3,017 – -3,643 – -5,591 – -20,431 – -9,380 – 11,051
Cash and cash equivalents at beginning of year 53,004 – 59,672 – 64,043 – 95,635 – 89,470 – -6,165
Cash and cash equivalents at end of quarter 57,751 – 62,183 – 100,892 – 91,445 – 107,851 – 16,406 Assets 2020/3 Yo Y 2021/3 Yo Y 2022/3 Yo Y 2023/3 Yo Y 2023/9 Yo Y Difference
Cash on hand and in banks 65,657 24% 71,239 9% 107,262 51% 102,116 -5% 122,164 20% 20,048
Notes receivable – trade & Accounts receivable – trade 15,959 14% 25,096 57% 7,932 -68% 25,097 216% 11,788 -53% -13,309
Work in progress for game software 21,222 25% 24,443 15% 31,192 28% 38,510 23% 40,649 6% 2,139
Others 40,628 3% 42,934 6% 40,979 -5% 51,642 26% 52,093 1% 451
Total assets 143,466 16% 163,712 14% 187,365 14% 217,365 16% 226,694 4% 9,329
Liabilities
Notes and accounts payable – trade & Electronically recorded monetary liabilities 5,844 14% 3,702 -37% 3,601 -3% 5,529 54% 4,104 -26% -1,425
Deferred income 7,642 383% 6,673 -13% 8,932 34% 5,455 -39% 1,129 -79% -4,326
Others 30,245 8% 32,543 8% 28,357 -13% 45,252 60% 39,089 -14% -6,163
Total liabilities 43,731 26% 42,918 -2% 40,890 -5% 56,236 38% 44,322 -21% -11,914
Total net assets 99,735 12% 120,794 21% 146,475 21% 161,129 10% 182,372 13% 21,243
Total liabilities and net assets 143,466 16% 163,712 14% 187,365 14% 217,365 16% 226,694 4% 9,329

7 Capcom Public Relations & Investor Relations Section
3 -1. Business Segments – Digital Contents (1)
◼ Digital Contents Performance
(100 million yen)
Sales and profit up due to Consumer sub -segment
digital sales growth, including for new titles
*Digital license indicates income from providing content etc. to online platforms
*Deferred revenue indicates the variance between deferred revenue and reversed revenue stemming primarily from the release of free downloadable content that typically follows the release of a full game
*Table: YoY indicates percent change from the same term of the previous year2019/9 YoY 2020/9 YoY 2021/9 YoY 2022/9 YoY 2023/9 YoY 2024/3 Plan
291 -15% 353 21% 598 69% 360 -40% 612 70% 1,063
Consumer breakdown
75 -34% 73 -3% 233 219% 43 -82% 120 179% 125
199 -7% 248 25% 345 39% 306 -11% 476 56% 909
10 – 7 -30% 22 214% 37 68% 32
274 -17% 321 17% 578 80% 349 -40% 597 71% 1,034
-14 – -54 – 44 –
17 42% 32 88% 19 -41% 11 -42% 15 36% 29
145 23% 198 37% 302 52% 218 -28% 345 58% 589
49.7% – 56.1% – 50.5% – 60.5% – 56.3% – 55.4%
Operating income
Operating margin
Package sales
Consumer total
Mobile Contents
Digital sales (incl. digital license)
Digital license portion
Deferred revenue portion
Net sales

8 Capcom Public Relations & Investor Relations Section
◼ Unit Sales for the 6 Months (Consumer)
3 -1. Business Segments – Digital Contents (2)
(units in thousands)
Record H1 sales volume driven primarily by
overseas and catalog title sales growth
*New titles: titles released in the current fiscal year; Catalog titles: titles released in the previous fiscal year or earli er *Includes distribution titles
*Table: YoY indicates percent change from the same term of the previous yearNew Titles
(SKU)
Titles sold /
sales regions
YoY YoY YoY YoY YoY YoY
1.8% 24.3% 43.5% 7.6% 6.1% 7.9%
Share YoY Share YoY Share YoY Share YoY Share YoY Share YoY
Overseas units 8,600 77.5% -8.0% 12,000 87.0% 39.5% 16,200 81.8% 35.0% 16,050 75.4% -0.9% 18,400 81.4% 14.6% 37,900 84.2% 13.1%
Japan units 2,500 22.5% 61.3% 1,800 13.0% -28.0% 3,600 18.2% 100.0% 5,250 24.6% 45.8% 4,200 18.6% -20.0% 7,100 15.8% -13.4%
Digital units 8,450 76.1% 15.0% 11,400 82.6% 34.9% 13,900 70.2% 21.9% 19,500 91.5% 40.3% 20,000 88.5% 2.6% 42,500 94.4% 13.9%
Physical units 2,650 23.9% -25.4% 2,400 17.4% -9.4% 5,900 29.8% 145.8% 1,800 8.5% -69.5% 2,600 11.5% 44.4% 2,500 5.6% -43.2%
Catalog units 7,750 69.8% -8.3% 10,950 79.3% 41.3% 13,200 66.7% 20.5% 16,050 75.4% 21.6% 17,600 77.9% 9.7% 35,700 79.3% 21.8%
New units 3,350 30.2% 36.7% 2,850 20.7% -14.9% 6,600 33.3% 131.6% 5,250 24.6% -20.5% 5,000 22.1% -4.8% 9,300 20.7% -25.0%
Major titles
New
Catalog
Resident Evil 4
Monster Hunter Rise Monster Hunter World: Iceborne Resident Evil Village
Monster Hunter Rise: Sunbreak Resident Evil 2
Monster Hunter: World(12 titles total)
Monster Hunter: World
Resident Evil 2Devil May Cry 5
Monster Hunter World: Iceborne Resident Evil 2
Resident Evil 7 biohazardMonster Hunter: World
Monster Hunter RiseResident Evil 7 biohazard Monster Hunter World: Iceborne
Resident Evil 2Resident Evil 3
Monster Hunter: World
Monster Hunter RiseDevil May Cry 5Resident Evil 2
Resident Evil 3 Monster Hunter World: Iceborne
Dragon’s Dogma: Dark A risen
Resident Evil 4Resident Evil 2 Monster Hunter Rise: Sunbreak
Resident Evil 3
Monster Hunter Rise
Resident Evil Village
Monster Hunter World: Iceborne Resident Evil 3
Resident Evil Village
Monster Hunter Stories 2: Wings of Ruin
22,600 45,000 11,100 13,800 19,800
Total
unit sales
304 　/　213 286 　/　227 293 　/　207 292 　/　209 301 　/　207
21,300
16 30 31
2024/3 Plan 2019/9 2020/9 2021/9 2022/9 2023/9
Monster Hunter Rise: Sunbreak
Street Fighter 6
MegaMan Battle Network Legacy Collection Vol. 1 & Vol. 2
Street Fighter 6Exoprimal
15 7 13

9 Capcom Public Relations & Investor Relations Section
3 -1. Business Segments – Digital Contents (3)
◼ 6 Months Highlights (Consumer)
⚫ Launched all -new IP Exoprimal (July 14, 2023)
⚫ FY23 Top Title Unit Sales
Promoted sales expansion of catalog titles with pricing strategies
in addition to steady release of new titles
◼ 6 Months Highlights (Mobile Contents)
⚫ Monster Hunter Now (licensed title) launched on Sept. 14
Currently over 10 million downloads (Source: October 19, 2023 Niantic press release)
Street Fighter 6
(10 thousand units)
*Total figure for MegaMan Battle Network Legacy Collection Vol. 1 and Vol. 2Title FY23 Lifetime
Street Fighter 6 247 247
Resident Evil 4 166 545
MegaMan Battle Network Legacy Collection* 142 142
Resident Evil 2 118 1,313
Monster Hunter Rise: Sunbreak 109 654
Resident Evil 3 97 804
Monster Hunter Rise 94 1,368

10 Capcom Public Relations & Investor Relations Section
◼ 6 Months Highlights
⚫ Same store sales: 110%
⚫ Opened Kids Banet Shizuoka Store (Shizuoka prefecture) on
April 25 and Crazy Banet at Aeon Mall Niihama (Ehime
Prefecture) on June 23
◼ 6 Months Business Results
(stores) ◼ Number of Stores
Sales and profit up due to new and existing store contributions
Profit levels recover to pre -COVID levels
3 -2. Business Segments – Arcade Operations
(100 million yen)
Crazy Banet at Aeon Mall Niihama
*Table: YoY indicates percent change from the same term of the previous year2020/3 YoY 2021/3 YoY 2022/3 YoY 2023/3 YoY 2023/9 YoY 2024/3 Plan
New stores 3 – 1 – 2 – 5 – 2 – 4
Closed stores 0 – 0 – 1 – 2 – 0 – 0
Total 40 8% 41 3% 42 2% 45 7% 47 4% 49 2019/9 YoY 2020/9 YoY 2021/9 YoY 2022/9 YoY 2023/9 YoY 2024/3 Plan
Net sales 62 13% 40 -35% 56 40% 73 30% 91 25% 180
Operating income 9 25% -2 – 0 – 6 854% 11 67% 13
Operating margin 14.7% – – – 1.3% – 9.2% – 12.3% – 7.2%
Same store sales 109% – 60% – 136% – 126% – 110% – 105%

11 Capcom Public Relations & Investor Relations Section
Release first smart pachislo model
Profitability overall on par year -over -year
3 -3. Business Segments – Amusement Equipments
(100 million yen)
◼ 6 Months Highlights
⚫ Total 18,000 units sold (FY9/22: 3 new title; 27,700 units sold
(includes catalog title sales) )
Smart pachislo Sengoku BASARA GIGA sold 15,000 units
in addition to 3,000 units in catalog sales
◼ 6 Months Business Results
◼ Pachislo Sales Volume
*Includes catalog title sales
*Table: YoY indicates percent change from the same term of the previous year
Smart pachislo
Sengoku BASARA GIGA2019/9 YoY 2020/9 YoY 2021/9 YoY 2022/9 YoY 2023/9 YoY 2024/3 Plan
New titles 0 – 1 – 1 – 3 – 1 – 4
Sales (thousand units) – – 3.7 – 8.5 130% 27.7 226% 18 -35% 37 2019/9 YoY 2020/9 YoY 2021/9 YoY 2022/9 YoY 2023/9 YoY 2024/3 Plan
Net sales 2 -89% 13 450% 16 22% 30 88% 25 -14% 100
Operating income 0 – 0 -73% 3 2056% 17 344% 17 4% 37
Operating margin 27.8% – 1.4% – 24.1% – 56.9% – 68.6% – 37.0%

12 Capcom Public Relations & Investor Relations Section
Promoting Single Content Multiple Usage strategy
in conjunction with game sales
3 -4. Business Segments – Other Businesses
◼ 6 Months Business Results
◼ 6 Months Highlights
⚫ Carried out merchandising for goods related to major titles
⚫ Street Fighter League: Pro -JP 2023 launched in July
⚫ Capcom Pro Tour 2023 kicked off in August
(100 million yen)
Street Fighter League: Pro -JP 2023
*Beginning FY23/6, business results for Media have been incorporated with eSports. This change has been reflected in the abov e f ull year FY24/3 plan and business results for previous years.
*Table: YoY indicates percent change from the same term of the previous year2019/9 YoY 2020/9 YoY 2021/9 YoY 2022/9 YoY 2023/9 YoY 2024/3 Plan
16 16% 13 -19% 29 122% 26 -9% 18 -29% 57
Character 11 – 22 100% 25 14% 17 -32% 50
eSports/Media 1 – 6 500% 1 -83% 1 0% 7
7 7% 5 -25% 13 148% 12 -8% 6 -51% 16
Character 8 – 15 88% 17 13% 12 -29% 31
eSports/Media -2 – -1 – -4 – -6 – -15
44.9% – 41.7% – 46.7% – 47.3% – 32.5% – 28.1%
Operating income
Operating margin
Net sales

13 Capcom Public Relations & Investor Relations Section
4 -1. Supplement: Summary of Major Financial Information
*Table: YoY indicates percent change from the same term of the previous year● Profit and Loss Sheet (million yen)
2020/3 YoY 2021/3 YoY 2022/3 YoY 2023/3 YoY 2024/3 plan YoY 2023/9
Net Sales 81,591 -18.4% 95,308 16.8% 110,054 15.5% 125,930 14.4% 140,000 11.2% 74,934
Gross Profit 40,947 10.0% 52,741 28.8% 61,317 16.3% 73,819 20.4% 83,000 12.4% 45,855
Margin (%) 50.2% – 55.3% – 55.7% – 58.6% – 59.3% – 61.2%
Sales and G&A Expenses 18,119 -5.0% 18,145 0.1% 18,408 1.4% 23,006 25.0% 27,000 17.4% 12,019
Operating Income 22,827 25.8% 34,596 51.6% 42,909 24.0% 50,812 18.4% 56,000 10.2% 33,835
Margin (%) 28.0% – 36.3% – 39.0% – 40.3% – 40.0% – 45.2%
Ordinary Income 22,957 26.2% 34,845 51.8% 44,330 27.2% 51,369 15.9% 56,000 9.0% 36,164
Margin (%) 28.1% – 36.6% – 40.3% – 40.8% – 40.0% – 48.3%
15,949 27.1% 24,923 56.3% 32,553 30.6% 36,737 12.9% 40,000 8.9% 25,287
Margin (%) 19.5% – 26.1% – 29.6% – 29.2% – 28.6% – 33.7%
● Sales and Profit by Business Segments (million yen)
2020/3 YoY 2021/3 YoY 2022/3 YoY 2023/3 YoY 2024/3 plan YoY 2023/9
Net Sales 59,942 -27.8% 75,300 25.6% 87,534 16.2% 98,158 12.1% 106,300 8.3% 61,275
Operating Income 24,161 3.6% 37,002 53.1% 45,359 22.6% 53,504 18.0% 58,900 10.1% 34,503
Margin (%) 40.3% – 49.1% – 51.8% – 54.5% – 55.4% – 56.3%
Net Sales 12,096 9.5% 9,871 -18.4% 12,404 25.7% 15,609 25.8% 18,000 15.3% 9,169
Operating Income 1,211 10.5% 149 -87.7% 652 337.6% 1,227 88.2% 1,300 5.9% 1,128
Margin (%) 10.0% – 1.5% – 5.3% – 7.9% – 7.2% – 12.3%
Net Sales 6,533 90.9% 7,090 8.5% 5,749 -18.9% 7,801 35.7% 10,000 28.2% 2,598
Operating Income 2,085 – 2,407 15.4% 2,348 -2.5% 3,433 46.2% 3,700 7.8% 1,781
Margin (%) 31.9% – 33.9% – 40.8% – 44.0% – 37.0% – 68.6%
Net Sales 3,018 17.2% 3,045 0.9% 4,366 43.4% 4,360 -0.1% 5,700 30.7% 1,891
Operating Income 544 -32.9% 987 81.4% 1,517 53.7% 1,433 -5.5% 1,600 11.7% 614
Margin (%) 18.0% – 32.4% – 34.7% – 32.9% – 28.1% – 32.5%
Amusement
Equipments
Others
Net income attributable to owners of the parent
Digital Contents
Arcade Operations

14 Capcom Public Relations & Investor Relations Section
◼ Cumulative Unit Sales and Examples of Brand Utilization
Capcom owns a wealth of globally popular
brands originating from its games
4 -2. Supplement: Our Major IP
• Resident Evil series: 150 million units
Separate Ways additional DLC for
Resident Evil 4 released on Sept. 21
A.K.I., the second Year 1 character for
Street Fighter 6 released on Sept. 27
Monster Hunter series
20thAnniversary project announced
• Street Fighter series: 52 million units
• Monster Hunter series: 95 million units
• Mega Man series: 41 million units
• Dragon’s Dogma series: 7.9 million units
• Devil May Cry series: 30 million units