Investor Relations

Outline of Results Briefing by SQUARE ENIX HOLDINGS held on May 12, 2014

Outline of Results Briefing by SQUARE ENIX HOLDINGS held on May 12, 2014
(Continued from previous page.)*

Finally, for HD games in Europe and North America, in the first quarter of FY2014/13 adjustments were made to the carrying values of the content production account relating to the prior fiscal year FY2013/2 resulting in an extraordinary loss for the Loss Evaluation of Content which was booked in the first quarter of FY2014/3. These studios have adjusted their development strategy to a new business model advocating a concept of “PC First”, which they are fully committed to and currently in mid development. We aggressively pursued a review on assets at the studios in Europe and North America during FY2014/3. Meanwhile, shipments of the blockbuster title "THIEF," which went on sale in February, 2014, were higher than expected, mainly for the PS4 and Xbox One. Sales of "FINAL FANTASY X/X-2 HD Remaster" were favorable and significantly contributed to our profit recovery. As a result, the Digital Entertainment segment recorded sales of ¥94.5 billion and an operating income of ¥10.7 billion. The Amusement segment remained strong overall. Existing store sales compared to last year remained steady at amusement facilities and although the recent rise in the consumption tax had somewhat of an effect on consumer trends, downtown area stores were especially well off and we shall maintain the momentum in this fiscal year ending March 31, 2015 (“FY2015/3”) FY2015/3 as well. For the amusement machines for the FY2014/3, new machines such as "LORD of VERMILLION III" and "GROOVE COASTER" (arcade version) went on sale, and "PUZZLE & DRAGONS BATTLE TOURNAMENT" has recently started off well. The Amusement segment produced stable earnings during the FY2014/3 and we shall sustain the momentum in this FY2015/3and going forward.

The Publication segment remained basically unchanged compared to the FY2013/3 with slightly decreased revenues. Of particular note was the end of some popular comic series. Now is the time the Publication business is looking to take its next leap into cultivating future hit titles. These efforts to find the next hit title will take fruition during the latter part of this FY2015/3 and into the next fiscal year.