Investor Relations

To Our Shareholders

Originally published in the Group' s 2021 Annual Report.

Thank you for your continued support of the Square Enix Group. As the fiscal year ended March 2021 got underway, we found ourselves in circumstances such as we had never experienced before. COVID-19 was spreading, prompting lockdowns in many major cities around the world, as well as the issuance of a state of emergency declaration in Japan. With the pandemic still showing no signs of abating, Japan has to date been forced to issue four such declarations. However, vaccinations are enabling countries to begin reopening their economies, and economic activity in Japan is likely to make a robust comeback as its vaccination rates rise.

Despite, the world being mired in the COVID-19 crisis for the duration of the fiscal year ended March 2021, we nonetheless were able to achieve our highest sales and earnings, with net sales coming in at ¥332.5 billion, operating income at ¥47.2 billion, and profit attributable to owners of parent at ¥26.9 billion. This performance meant that we also achieved our medium-term earnings targets, namely net sales of ¥300-400 billion and operating income of ¥40-50 billion.

I have been stressing for some time that nothing would be more vital to achieving our medium-term earnings targets than the generation of more substantial recurring income, and I am proud to say that rather than merely achieving some one-off numeric targets, we have succeeded in growing our pool of recurring income and thereby creating an earnings base that will enable us to invest further in growth.

Below, I will outline how we performed in each of our business segments.