Outline of Results Briefing held on November 5, 2021 | Investor Relations

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Outline of Results Briefing held on November 5, 2021

: We would now like to begin the Financial Results Briefing session of SQUARE ENIX HOLDINGS (the “Company”) for the first half of the fiscal year ending March 31, 2022 (“1H FY2022/3”).Today's presenters are:
Yosuke Matsuda, President and Representative Director, and
Atsushi Matsuda, Chief Accounting Officer.

: First, Mr. Matsuda, Chief Accounting Officer, will give an overview of the Company's financial results for 1H FY2022/3, and then our president Mr. Matsuda will discuss the progress made by each of the Company's business segments.

: I am Atsushi Matsuda, the Chief Accounting Officer.In 1H FY2022/3, the Company booked net sales of ¥168.9 billion (down ¥3.8 billion YoY), operating income of ¥29.1 billion (down ¥2.5 billion), ordinary income of ¥31.4 billion (up ¥900 million), and net income attributable to parent company shareholders of ¥22.9 billion (up ¥6.9 billion).

I will next break down our results by segment.The Digital Entertainment segment posted net sales of ¥129.4 billion (down ¥13 billion YoY) and operating income of ¥29.4 billion (down ¥4.4 billion).

While the HD Games sub-segment released such home console titles as “OUTRIDERS,” “NieR Replicant ver.1.22474487139…”, “NEO: The World Ends with You,” and “Life is Strange: True Colors,” its net sales were lower than in the same period of the previous fiscal year, which had seen the release of “FINAL FANTASY VII REMAKE” and “Marvel”s Avengers.”
Net sales rose YoY in the MMO sub-segment thanks to sharp growth in paying subscriber numbers for “FINAL FANTASY XIV.”
The Games for Smart Devices/PC Browser sub-segment saw net sales decline YoY, in part because of lackluster performance in existing titles.
The Amusement segment booked net sales of ¥21 billion (up ¥7.1 billion) and operating income of ¥600 million (versus an operating loss of ¥1.6 billion a year earlier). The segment had been heavily impacted in the previous year by the temporary closure of our amusement facilities in Japan, a move taken to help prevent the spread of COVID-19 in keeping with the Japanese government”s state of emergency declaration. As such, net sales rose substantially YoY, and the segment moved into the black at the operating line.
The Publication segment booked net sales of ¥14.1 billion (up ¥1.8 billion YoY) and operating income of ¥5.9 billion (up ¥600 million). Both sales and profits rose YoY thanks to growth in sales of e-books and other digital media, as well as brisk sales of print media.

The Merchandising segment posted net sales of ¥5.8 billion (up ¥1 billion YoY) and operating income of ¥1.7 billion (up ¥200 million). Both sales and profits rose YoY, in part because of brisk sales of new character goods based on the Company's IP.This concludes my overview of our 1H FY2022/3 financial results.

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The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions and judgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are many factors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 5, 2021. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new information becomes available and/or events occur after November 5 2021.