Feature Article
Message from the Chairman

Jun.19.2025

Commitment to achieving sustainable growth through the separation of supervision and execution under the new management structure

YOICHI ERIKAWA
Chairman (Representative Director) & Chairman of the Board of Directors

To all stakeholders

Please allow me to start by expressing my deepest gratitude for your extraordinary support. At KOEI TECMO, we've recently made the decision to further facilitate the separation of management supervision and execution with a view to strengthening its management structure. Effective June 19, I will assume my new role as Chairman (Representative Director) & Chairman of the Board of Directors of KOEI TECMO HOLDINGS CO., LTD. and dedicate myself to supervising its management. Hisashi Koinuma will be the company's new President and　 CEO(Representative Director) to focus on the execution of management. Under this new management structure, the KOEI TECMO Group will strive to realize its corporate vision of becoming the world's No. 1 digital entertainment company.

Thought behind KOEI TECMO's spirit and vision

Creativity & Contribution - a key component of our existential significance - entails creating novel kinds of entertainment no one has experienced before and enriching the hearts and minds of people around the world. We believe this will lead to solving the social issues that the KOEI TECMO Group must address. This passion of ours hasn't changed since 1981, when I learned programming on my own at a time when few historical games existed, and developed and marketed Kawanakajima no Kassen. After releasing the title, we received many phone calls and letters from our customers saying that they had been waiting for such a game. This became KOEI TECMO's starting point, as 　For the past 16 years since 2009, after the two companies Commitment to achieving sustainable growth through the separation of supervision and execution under the new management structure YOICHI ERIKAWA Chairman(Representative Director) & Chairman of the Board of Directors it provided us with a tangible experience that the new value we created ourselves would delight our customers.

Under the corporate vision to become the world's No. 1 digital entertainment company, the KOEI TECMO Group aims to achieve the highest operating profit*1 among all companies operating in the global digital entertainment space. Operating profit is not only an indicator of our financial performance but also the quantified result of the "cheering" of the fans who support the titles released by the Group. It's also a source of funding that enables us to take on the next challenging projects, as it is also the foundation that sustains the cycle of our creative processes.

We are convinced if we can become the world's No. 1 in operating profit, that means we are the company that is chosen by more customers than any other and can continue to provide new entertainment. Based on this idea, we have always taken on the challenge of creating new titles that will wow game users globally, while communicating the significance and responsibility of it both within and outside the Group. Going forward, we remain committed to pursuing new, unprecedented kinds of entertainment to level up our customers' happiness and delivering moving experiences and joy to our customers worldwide, one step at a time toward the realization of the Group's vision, while increasing our presence in the global market and continuously enhancing our enterprise value.

*1. Based on the company's own research

Separation of supervision and execution, and transition to the new management structure

For the past 16 years since 2009, after the two companies had merged, I've been gradually facilitating KOEI TECMO's transition to the next generation of management with a view to fostering them. In this vein, we've been appointing Hisashi Koinuma - who simultaneously led several major titles to commercial success since the days of Koei Co., Ltd. before the merger - to the progressively more important positions of General Manager of Software Division*2 at KOEI TECMO GAMES CO., LTD., its President & Representative Direction, and Executive Vice President & Representative Director at KOEI TECMO HOLDINGS CO., LTD. In these capacities, he has been able to deliver results while gradually expanding his managerial responsibility. After a series of objective evaluations and discussions on his credentials at the Nomination & Remuneration Committee joined by Outside Directors, the decision has been made to appoint him as the new President & CEO.

Under the new management structure, I believe the primary role of new Chairperson Emeritus Keiko Erikawa and myself will be to monitor and supervise at the Board of Directors. To this end, we intend to implement a systematic approach to checking the appropriateness of important decisions - such as management plan, investment in development and human capital, optimization of balance in the funding of dividends, and M&A investment - and executing them with speed. In addition, regarding the management of surplus capital, we will clearly define the investment targets and risk tolerance, so that we can steadily pass it on to the next generation while striving to increase our enterprise value and maximize shareholder returns.

*2. Currently the Entertainment Division

Expectation for the next generation of management

Above all, the most crucial role the President & CEO of KOEI TECMO is expected to fulfill is the creation of hit games, because our vision of becoming the world's No. 1 digital entertainment company cannot be realized, unless the company continuously churns out hit titles. The new President & CEO Koinuma has been able to produce results in building the business model that forms the core of the Group today, including his successful management of the Warriors series and collaborations with other companies. It is precisely because of these achievements that I can say he is the most qualified person to take on the role of President & CEO at the company.

In addition, we are also seeking individuals who will become future executives, possessing the competence to oversee multiple large-scale projects and create hit games while controlling quality, delivery schedule, and budget. We already have many candidates within the company that could become the next generation of leaders, possessing such credentials and the ability to create games that are entertaining to numerous customers, while cultivating additional human resources that will follow them. The entire management team will continue to work together in supporting the new President & CEO, Koinuma and the next generation of our management leaders, while steadily proceeding to achieve the Group's vision through concerted effort.

Sustainable value improvement through human resource development

In order to embody the spirit of Creativity & Contribution and to continuously create hit titles, it is essential to recruit and develop creative and business-savvy human resources, i.e., individuals who possess both creativity and a sound business mind. Furthermore, in addition to providing them with adequate remuneration and benefits, we have been actively investing in the development of optimal R&D and other work environments that systematically allow our diverse talents to demonstrate their abilities in a confidence-inspiring manner. As a result, the employee turnover rate has been kept in the 4-5% range, and we have recently added over 200 high-caliber new graduates to our workforce, giving us a solid competitive edge in terms of recruitment. We intend to continuously train and develop our human resources from both creative and business perspectives and further strengthen our foundation for continuing to create hit titles on a global scale.

Poised for further growth

In closing, I would like to share with you some word of advice we've received from one of our investors. "The source of KOEI TECMO's competitive advantage lies in its ability to develop human resources capable of producing hits and having a sound business mind, and to create and maintain an environment where those talents can freely express ideas amongst themselves."

I believe this is precisely the strength of the Group as well as the principle nurturing its corporate culture that supports those who dare to take on new challenges. I myself have made my share of many mistakes before, but those experiences have fueled me to achieve success in ensuing endeavors. Embracing my responsibility to protect and nurture this corporate culture of ours, I promise to create moments where game fans around the world can experience new kinds of entertainment, without fail. We ask for your continued support of KOEI TECMO as we head in the future.