To Our Shareholders

For Our Next Stage of Growth

We target significant upside for the fiscal year ending March 2016. We expect games for smart devices and PCs, as well as online games including MMOs to continue to drive earnings. Moreover, the second half of the fiscal year will see the launch of new HD game titles developed by our European and North American studios. These major franchise titles embody the brand value of the Square Enix Group and continue to occupy a key position in our product portfolio. Moreover, digitalization has expanded the lifetime product value of these titles, sustaining sales for a much longer time. As I mentioned above, the lineup we announced at the most recent E3 trade show was extremely well received for its quality, richness, and diversity. This raised high expectations for sales in the second half of the fiscal year, and we will work to see those expectations met. In addition, we believe that enriching and diversifying our product pipeline via the aforementioned initiatives will be a determining factor in the Square Enix Group’s leap to its next stage of growth. We will need to invest to make that happen. At the same time, our Group’s management team is well aware that one of its most important missions is to share the fruits of that rich pipeline with our investors. The centerpiece of our shareholder return policy is dividends premised on a consolidated payout ratio of 30%. We intend to reward our shareholders primarily via dividends, while considering the balance we need to strike between shareholder return and investment in content development for our future growth.

Two years have passed since I assumed the office of President and Representative Director. Investments we have made over that time are now gradually beginning to generate benefits. My intention is that the fiscal year ending March 2016 will be a year not only of reaping even greater rewards from the investments we have engaged in to date, but also a year for sowing new seeds that will take us to our next stage of growth. In an ever-changing business environment, our Group’s management team has been entrusted with a vital mission: to constantly create new excitement and new surprises to meet the expectations of our global customer base, and in so doing, to enhance our enterprise value so that we may also meet the expectations of our shareholders and all our stakeholders. We will devote ourselves every day to the fulfillment of that mission, and we look forward to your continued support.

Yousuke Matsuda

Yousuke Matsuda
President and Representative Director

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