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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 next turn to our earnings outlook for FY2019/3.

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Our consolidated guidance is for net sales of ¥270 billion and operating income of ¥30 billion. We look for net sales to rise because we plan to release multiple major new HD titles in FY2019/3. However, operating income is poised to decline due to a YoY rise in amortization charges. While net sales could deviate somewhat from our expectations, we are guiding for ¥270 billion based on our consideration of a variety of risk factors.

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We expect the HD Games sub-segment to book an operating loss in 1Q FY2019/3. We will not be releasing any major new titles until the launch of “SHADOW OF THE TOMB RAIDER,” which is slated for September 14. In other words, our launch schedule for new titles in FY2019/3 kicks off in the latter half of 2Q and is therefore weighted more to 2H. We likewise do not look for new smart device titles to start contributing to earnings until July. Moreover, because we will first be investing advertising spending on large-scale marketing campaigns and other efforts associated with the launch of major new titles and smart device games, we look for earnings to struggle in 1Q. Our plan is to make up for this starting in 2Q.

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