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Investor Relations

Outline of Results Briefing by SQUARE ENIX HOLDINGS held on May 11, 2018

Outline of Results Briefing by SQUARE ENIX HOLDINGS held on May 11, 2018
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I am Yosuke Matsuda. I will be discussing the progress made in each business segment.

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I will start with the HD Games sub-segment of the Digital Entertainment segment. Net sub-segment sales declined YoY, but operating income rose thanks firstly to brisk sales of high-margin catalog games driven by digital downloads of titles such as “NieR:Automata” and secondly to a decline in amortization charges associated with major titles. We believe that the moves we have made to bolster digital sales are delivering results.

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We expect FY2019/3 earnings to benefit from the launches of major titles including “SHADOW OF THE TOMB RAIDER” and “KINGDOM HEARTS 3.” Our plan is to announce the details of our forthcoming lineup at E3 in June.

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I next turn to the MMO sub-segment. FY2018/3 saw the release of expansion packs for “FINAL FANTASY XIV” and “DRAGON QUEST X,” and both titles contributed to earnings. In particular, the release of the expansion disk for “FINAL FANTASY XIV” led to the highest number of paying subscribers that that title has experienced since its launch.