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Investor Relations

Outline of Results Briefing by SQUARE ENIX HOLDINGS held on November 6, 2015

Outline of Results Briefing by SQUARE ENIX HOLDINGS held on November 6, 2015
(Continued from previous page.)*

Next, please refer to page 6 of our Consolidated Financial Results (Tanshin). We posted an extraordinary loss of ¥1.1 billion associated with US subsidiary Shinra Technologies, Inc. The wholly-owned subsidiary is still in the business development phase, meaning that it as of yet has no sales to offset initial costs. This resulted in a decline in net asset value, which we booked as a valuation loss in accordance with accounting standards.
This ends explanation on the 1H results outline.

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I am Yosuke Matsuda. I will be discussing our earnings and our future outlook. Here you see our net sales quarter by quarter. Net sales grew QoQ in 2Q.

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This slide shows our operating income quarter by quarter. Our operating income declined from ¥7.9 billion in 1Q to ¥4.7 billion in 2Q. I will explain why this happened.

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The first reason involves MMO. The MMO business was brisk, but the 1Q launches of expansion packs set a hurdle that we were unable to surmount in 2Q, resulting in a decline in net sales and net income.