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Capcom FY2023 Q3 Earnings Release

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Jan, 2024 0 Capcom Public Relations & Investor Relations SectionCapcom Public Relations & Investor Relations Section
Capcom Co., Ltd.
(TSE Prime, 9697)
3rd Quarter Report
Fiscal year ending March 31, 2024

1 Capcom Public Relations & Investor Relations Section
Major Takeaways
◼ Q3 Results
• Sales and profit up due to catalog sales growth in Q3
• Street Fighter 6 : over 2.98 million units sold (3 million units as of Jan. 3)
• Game sales grew YoY from 29.1 million units to 32.6 million units
• Sales and profit up in Amusement Equipments and
Arcade Operations businesses
◼ Full -Year Business Plan
• On track to achieve 11 consecutive years of operating profit growth
YoY indicates percent change from the same term of the previous year.
(million yen)2022/12 YoY 2023/12 YoY Difference 2024/3 Plan YoY
Net sales 79,671 -1 0 % 106,179 33% 26,508 140,000 11%
Operating income 33,332 -5 % 47,704 43% 14,372 56,000 10%
Operating margin 41.8% – 44.9% – – 40.0% –
Ordinary income 33,564 -7 % 49,460 47% 15,896 56,000 9%
Net income attr ibutable to owner s of the par ent 23,610 -1 2 % 34,636 47% 11,026 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 12
page Contents
2. Q3 Financial Highlights 4
1. Forecasts for FY3/24 3
3. Business Segments 6

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
YoY indicates percent change from the same term of the previous year.2020/3 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
◼ FY12/23 Net Sales/Operating Income (consolidated/by segment)
2 -1. Q3 Financial Highlights – Consolidated Business Results
(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. YoY indicates percent change from the same term of the previous year.
⚫ Sales and profit up YoY due to solid performance of all business segments, led by Digital Contents
⚫ Booked foreign exchange gain of ¥1,018 million under non -operating income2019/12 YoY 2020/12 YoY 2021/12 YoY 2022/12 YoY 2023/12 YoY Difference 2024/3 Plan YoY
52,908 -14% 64,867 23% 88,163 36% 79,671 -10% 106,179 33% 26,508 140,000 11%
Digital Contents 40,589 -15% 48,966 21% 70,453 44% 61,242 -13% 81,436 33% 20,194 106,300 8%
A rcade Operations 9,201 14% 7,018 -24% 8,992 28% 11,357 26% 13,847 22% 2,490 18,000 15%
A musement Equipments 663 -79% 6,712 912% 4,937 -26% 3,699 -25% 8,020 117% 4,321 10,000 28%
Other Businesses 2,453 17% 2,170 -12% 3,781 74% 3,371 -11% 2,875 -15% -496 5,700 31%
18,448 37% 24,382 32% 35,096 44% 33,332 -5% 47,704 43% 14,372 56,000 10%
Digital Contents 19,885 30% 24,787 25% 35,894 45% 34,619 -4% 47,361 37% 12,742 58,900 10%
A rcade Operations 1,187 37% 86 -93% 419 387% 1,013 142% 1,547 53% 534 1,300 6%
A musement Equipments 376 – 2,431 547% 1,932 -21% 2,068 7% 4,560 121% 2,492 3,700 8%
Other Businesses 358 -64% 861 141% 1,549 80% 1,219 -21% 642 -47% -577 1,600 12%
A djustments* -3,358 – -3,785 – -4,699 – -5,588 – -6,406 – -818 -9,500 –
34.9% – 37.6% – 39.8% – 41.8% – 44.9% – – 40.0% –
18,702 38% 24,088 29% 36,148 50% 33,564 -7% 49,460 47% 15,896 56,000 9%
13,065 42% 17,523 34% 26,708 52% 23,610 -12% 34,636 47% 11,026 40,000 9%
Ordinary income
Net income attributable
to owners of the parent
Operating margin
Operating income
Net sales

5 Capcom Public Relations & Investor Relations Section
◼ FY12/23 Balance Sheet/Statement of Cashflows (Summary)
2 -2. Q3 Financial Highlights – Financial Position
(million yen)
(million yen) Statement of Cashflows
Balance Sheet
*Deferred income of approx. ¥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 indicates percent change from the end of the previous year.2019/12 Yo Y 2020/12 Yo Y 2021/12 Yo Y 2022/12 Yo Y 2023/12 Yo Y Difference
Cash flows from operating activities 15,061 – 7,867 – 41,461 – 9,455 – 21,333 – 11,878
   Net income before income taxes 18,690 – 24,078 – 36,142 – 33,551 – 49,598 – 16,047
   Increase (decrease) in notes and accounts receivable – trade 7,700 – 4,382 – 15,253 – -797 – 12,787 – 13,584
   Decrease (increase) in work in progress for game software -8,848 – -2,729 – -1,701 – -8,886 – -7,909 – 977
   Decrease (increase) in deferred revenue 2,169 – -7,450 – 1,595 – -5,357 – -4,502 – 855
Cash flows from investing activities -2,799 – -3,372 – -6,724 – -2,786 – -5,097 – -2,311
Cash flows from financing activities -5,208 – -6,439 – -9,537 – -25,233 – -15,399 – 9,834
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 59,538 – 57,366 – 89,848 – 78,966 – 92,898 – 13,932 Assets 2020/3 Yo Y 2021/3 Yo Y 2022/3 Yo Y 2023/3 Yo Y 2023/12 Yo Y Difference
Cash on hand and in banks 65,657 24% 71,239 9% 107,262 51% 102,116 -5% 108,008 6% 5,892
Notes receivable – trade & Accounts receivable – trade 15,959 14% 25,096 57% 7,932 -68% 25,097 216% 12,472 -50% -12,625
Work in progress for game software 21,222 25% 24,443 15% 31,192 28% 38,510 23% 46,157 20% 7,647
Others 40,628 3% 42,934 6% 40,979 -5% 51,642 26% 56,288 9% 4,646
Total assets 143,466 16% 163,712 14% 187,365 14% 217,365 16% 222,925 3% 5,560
Liabilities
Notes and accounts payable – trade & Electronically recorded monetary liabilities 5,844 14% 3,702 -37% 3,601 -3% 5,529 54% 4,966 -10% -563
Deferred income 7,642 383% 6,673 -13% 8,932 34% 5,455 -39% 1,056 -81% -4,399
Others 30,245 8% 32,543 8% 28,357 -13% 45,252 60% 33,157 -27% -12,095
Total liabilities 43,731 26% 42,918 -2% 40,890 -5% 56,236 38% 39,179 -30% -17,057
Total net assets 99,735 12% 120,794 21% 146,475 21% 161,129 10% 183,745 14% 22,616
Total liabilities and net assets 143,466 16% 163,712 14% 187,365 14% 217,365 16% 222,925 3% 5,560

6 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
*YoY indicates percent change from the same term of the previous year.
*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.2019/12 YoY 2020/12 YoY 2021/12 YoY 2022/12 YoY 2023/12 YoY 2024/3 Plan
405 -15% 489 21% 704 44% 612 -13% 814 33% 1,063
Consumer breakdown
97 -41% 99 2% 256 159% 102 -60% 141 38% 125
282 -5% 343 22% 418 22% 490 17% 648 32% 909
29 – 8 -72% 25 213% 51 104% 32
379 -18% 442 17% 674 52% 592 -12% 790 33% 1,034
-16 – 53 – 43 –
26 53% 47 81% 30 -36% 20 -33% 24 20% 29
198 30% 247 25% 358 45% 346 -4% 473 37% 589
49.0% – 50.6% – 50.9% – 56.5% – 58.2% – 55.4%
Digital license portion
Deferred revenue portion
Net sales
Operating income
Operating margin
Package sales
Consumer total
Mobile Contents
Digital sales (incl. digital license)

7 Capcom Public Relations & Investor Relations Section
◼ Unit Sales for the 9 Months (Consumer)
3 -1. Business Segments – Digital Contents (2)
(units in thousands)
Record sales volume driven primarily by
overseas, digital, 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.
*YoY indicates percent change from the same term of the previous year.New Titles
(SKU)
Titles sold /
sales regions
YoY YoY YoY YoY YoY YoY
-0.6% 20.0% 30.3% 12.8% 12.0% 7.9%
Share YoY Share YoY Share YoY Share YoY Share YoY Share YoY
Overseas units 13,350 80.9% -6.0% 17,100 86.4% 28.1% 21,550 83.5% 26.0% 22,750 78.2% 5.6% 26,800 82.2% 17.8% 37,900 84.2% 13.1%
Japan units 3,150 19.1% 31.3% 2,700 13.6% -14.3% 4,250 16.5% 57.4% 6,350 21.8% 49.4% 5,800 17.8% -8.7% 7,100 15.8% -13.4%
Digital units 12,800 77.6% 15.3% 16,200 81.8% 26.6% 18,700 72.5% 15.4% 26,550 91.2% 42.0% 29,300 89.9% 10.4% 42,500 94.4% 13.9%
Physical units 3,700 22.4% -32.7% 3,600 18.2% -2.7% 7,100 27.5% 97.2% 2,550 8.8% -64.1% 3,300 10.1% 29.4% 2,500 5.6% -43.2%
Catalog units 12,200 73.9% -2.4% 15,800 79.8% 29.5% 18,200 70.5% 15.2% 22,000 75.6% 20.9% 26,700 81.9% 21.4% 35,700 79.3% 21.8%
New units 4,300 26.1% 4.9% 4,000 20.2% -7.0% 7,600 29.5% 90.0% 7,100 24.4% -6.6% 5,900 18.1% -16.9% 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
Monster Hunter: WorldResident Evil 7 biohazard
Monster Hunter RiseResident Evil 7 biohazard Resident Evil 2
Monster Hunter World: Iceborne Resident Evil 3
Monster Hunter: World
Monster Hunter RiseDevil May Cry 5Resident Evil 2
Resident Evil VillageResident Evil 3
Monster Hunter World: Iceborne
Resident Evil 4Resident Evil 2 Monster Hunter Rise: Sunbreak
Monster Hunter RiseResident Evil Village
Resident Evil 3
Monster Hunter World: Iceborne Resident Evil 3
Resident Evil Village
Monster Hunter Stories 2: Wings of Ruin
32,600 45,000 16,500 19,800 25,800
Total
unit sales
310  / 219 287  / 232 296  / 213 293  / 213 301  / 211
29,100
27 33 31
2024/3 Plan 2019/12 2020/12 2021/12 2022/12 2023/12
Monster Hunter Rise: Sunbreak
Street Fighter 6
MegaMan Battle Network Legacy Collection Vol. 1 & Vol. 2
Street Fighter 6Exoprimal
22 11 19

8 Capcom Public Relations & Investor Relations Section
◼ 9 Months Highlights (Consumer)
⚫ Street Fighter 6 breaks 3 million units sold (as of Jan. 3, 2024)
⚫ Resident Evil 4 surpassed 6.48 million units sold
⚫ All -new Monster Hunter Wilds 2025 release date announced,
catalog sales grow for Monster Hunter series titles
⚫ Total unit sales for Q3 (3 months) grow YoY from 7.8 million to 10 million units
⚫ FY23 Top Title Unit Sales
3 -1. Business Segments – Digital Contents (3)
Grew sales of new and catalog titles following new title reveal
and via successful long -term pricing strategy
“Outfit 3” additional character
costumes for Street Fighter 6
released on December 1
(10 thousand units)
*Total figure for MegaMan Battle Network Legacy Collection Vol. 1 and Vol. 2Title FY23 Lifetime
Street Fighter 6 298 298
Resident Evil 4 269 648
Resident Evil 2 166 1,361
Monster Hunter Rise: Sunbreak 164 710
MegaMan Battle Network Legacy Collection* 151 151
Monster Hunter Rise 146 1,420
Resident Evil Village 142 939
Resident Evil 3 136 843
Monster Hunter World: Iceborne 133 1,163

9 Capcom Public Relations & Investor Relations Section
◼ 9 Months Highlights
⚫ Same store sales: 111%
⚫ In addition to the 2 stores opened in Q1,
Capsule Lab Harajuku Takeshita Street (Tokyo)
opened on Dec. 15, 2023
◼ 9 Months Business Results
(stores) ◼ Number of Stores
Sales and profit up due to new and existing store contributions
Profit levels exceeded pre -COVID levels
3 -2. Business Segments – Arcade Operations
(100 million yen)
Capsule Lab Harajuku Takeshita Street
*YoY indicates percent change from the same term of the previous year.
*YoY indicates percent change from the same term of the previous year.2019/12 YoY 2020/12 YoY 2021/12 YoY 2022/12 YoY 2023/12 YoY 2024/3 Plan
Net sales 92 14% 70 -24% 89 28% 113 26% 138 22% 180
Operating income 11 37% 0 -93% 4 387% 10 142% 15 53% 13
Operating margin 12.9% – 1.2% – 4.7% – 8.9% – 11.2% – 7.2%
Same store sales 107% – 72% – 122% – 121% – 111% – 105% 2020/3 YoY 2021/3 YoY 2022/3 YoY 2023/3 YoY 2023/12 YoY 2024/3 Plan
New stores 3 – 1 – 2 – 5 – 3 – 4
Closed stores 0 – 0 – 1 – 2 – 0 – 0
Total 40 8% 41 3% 42 2% 45 7% 48 7% 49

10 Capcom Public Relations & Investor Relations Section
Released 2nd smart pachislo model on amusement EC platform
Sales and profit up due to steady release of new models
3 -3. Business Segments – Amusement Equipments
(100 million yen)
◼ 9 Months Highlights
⚫ Total 28,400 units sold; FY12/22: 3 new titles; 32,000 units sold
(includes catalog title sales)
Sales: Smart pachislo Sengoku BASARA GIGA : 15,000 units;
Smart pachislo Biohazard Village : 10,400 units;
3,000 units in catalog sales
◼ 9 Months Business Results
◼ Pachislo Sales Volume
Smart pachislo
Biohazard Village
*YoY indicates percent change from the same term of the previous year.
*YoY indicates percent change from the same term of the previous year *Includes catalog title sales.2019/12 YoY 2020/12 YoY 2021/12 YoY 2022/12 YoY 2023/12 YoY 2024/3 Plan
Net sales 6 -79% 67 912% 49 -26% 36 -25% 80 117% 100
Operating income 3 – 24 546% 19 -21% 20 7% 45 121% 37
Operating margin 56.7% – 36.2% – 39.1% – 55.9% – 56.9% – 37.0% 2019/12 YoY 2020/12 YoY 2021/12 YoY 2022/12 YoY 2023/12 YoY 2024/3 Plan
New titles 0 – 2 – 2 – 3 – 2 – 4
Sales (thousand units) 0 – 21.0 – 18.0 -14% 32.0 78% 28.4 -11% 37

11 Capcom Public Relations & Investor Relations Section
Promoting Single Content Multiple Usage strategy
in conjunction with game sales
3 -4. Business Segments – Other Businesses
◼ 9 Months Business Results
◼ 9 Months Highlights
⚫ Carried out merchandising for goods related to major titles
⚫ Onimusha animated series streamed worldwide on Netflix from Nov.
⚫ Continued to enhance the Street Fighter 6 brand through global
esports activities such as Street Fighter League: Pro -JP 2023 and
Capcom Pro Tour 2023
(100 million yen)
Onimusha animated
series on Netflix
* YoY indicates percent change from the same term of the previous year. Beginning FY23/6, business results for Media have bee n incorporated with eSports. This change has been reflected in the above full year FY24/3 plan and business results for previous years.
Courtesy of Netflix2019/12 YoY 2020/12 YoY 2021/12 YoY 2022/12 YoY 2023/12 YoY 2024/3 Plan
24 17% 21 -12% 37 74% 33 -11% 28 -15% 57
Character 18 – 30 67% 31 3% 26 -16% 50
eSports/Media 3 – 7 133% 2 -71% 1 -50% 7
3 -64% 8 141% 15 80% 12 -21% 6 -47% 16
Character 13 – 20 54% 21 5% 17 -19% 31
eSports/Media -4 – -5 – -8 – -11 – -15
14.6% – 39.7% – 41.0% – 36.2% – 22.3% – 28.1%
Operating income
Operating margin
Net sales

12 Capcom Public Relations & Investor Relations Section
4 -1. Supplement: Summary of Major Financial Information
*YoY indicates percent change from the same term of the previous year.
*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 2023/12
Net Sales 81,591 -18.4% 95,308 16.8% 110,054 15.5% 125,930 14.4% 140,000 11.2% 106,179
Gross Profit 40,947 10.0% 52,741 28.8% 61,317 16.3% 73,819 20.4% 83,000 12.4% 66,051
Margin (%) 50.2% – 55.3% – 55.7% – 58.6% – 59.3% – 62.2%
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% 18,346
Operating Income 22,827 25.8% 34,596 51.6% 42,909 24.0% 50,812 18.4% 56,000 10.2% 47,704
Margin (%) 28.0% – 36.3% – 39.0% – 40.3% – 40.0% – 44.9%
Ordinary Income 22,957 26.2% 34,845 51.8% 44,330 27.2% 51,369 15.9% 56,000 9.0% 49,460
Margin (%) 28.1% – 36.6% – 40.3% – 40.8% – 40.0% – 46.6%
15,949 27.1% 24,923 56.3% 32,553 30.6% 36,737 12.9% 40,000 8.9% 34,636
Margin (%) 19.5% – 26.1% – 29.6% – 29.2% – 28.6% – 32.6%
● Sales and Profit by Business Segments (million yen)
2020/3 YoY 2021/3 YoY 2022/3 YoY 2023/3 YoY 2024/3 plan YoY 2023/12
Net Sales 59,942 -27.8% 75,300 25.6% 87,534 16.2% 98,158 12.1% 106,300 8.3% 81,436
Operating Income 24,161 3.6% 37,002 53.1% 45,359 22.6% 53,504 18.0% 58,900 10.1% 47,361
Margin (%) 40.3% – 49.1% – 51.8% – 54.5% – 55.4% – 58.2%
Net Sales 12,096 9.5% 9,871 -18.4% 12,404 25.7% 15,609 25.8% 18,000 15.3% 13,847
Operating Income 1,211 10.5% 149 -87.7% 652 337.6% 1,227 88.2% 1,300 5.9% 1,547
Margin (%) 10.0% – 1.5% – 5.3% – 7.9% – 7.2% – 11.2%
Net Sales 6,533 90.9% 7,090 8.5% 5,749 -18.9% 7,801 35.7% 10,000 28.2% 8,020
Operating Income 2,085 – 2,407 15.4% 2,348 -2.5% 3,433 46.2% 3,700 7.8% 4,560
Margin (%) 31.9% – 33.9% – 40.8% – 44.0% – 37.0% – 56.9%
Net Sales 3,018 17.2% 3,045 0.9% 4,366 43.4% 4,360 -0.1% 5,700 30.7% 2,875
Operating Income 544 -32.9% 987 81.4% 1,517 53.7% 1,433 -5.5% 1,600 11.7% 642
Margin (%) 18.0% – 32.4% – 34.7% – 32.9% – 28.1% – 22.3%
Arcade Operations
Amusement
Equipments
Others
Net income attributable to owners of the parent
Digital Contents

13 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: 154 million units
Resident Evil 4 VR Mode free additional DLC
released on Dec. 8, 2023
Ed, the third Year 1 additional character for
Street Fighter 6 scheduled for February 2024
All-new Monster Hunter Wilds
release scheduled for 2025
• Street Fighter series: 53 million units
• Monster Hunter series: 97 million units
• Mega Man series: 41 million units
• Dragon’s Dogma series: 8.4 million units
• Devil May Cry series: 30 million units