Square Enix : Results Briefing Session for the Fiscal Year ended March 31, 2024

Financial Results Briefing Session

Fiscal Year ended March 31, 2024

May 13, 2024

Statements made in this document with respect to SQUARE ENIX HOLDINGS CO., LTD. and its consolidated subsidiaries'

(together, "SQUARE ENIX GROUP") plans, estimates, strategies and beliefs are forward‐looking statements about the future performance of

SQUARE ENIX GROUP.

These statements are based on management's assumptions and beliefs in light of information available to it at the time these material were drafted and, therefore, the reader should not place undue reliance on them. Also, the reader should not assume that statements made in this document will remain accurate or operative at a later time.

A number of factors could cause actual results to be materially different from and worse than those discussed in forward‐looking statements. Such factors include, but not limited to:

1. changes in economic conditions affecting our operations;
2. fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro;
3. SQUARE ENIX GROUP's ability to continue to win acceptance of our products and services, which are offered in highly competitive markets characterized by the continuous introduction of new products and services, rapid developments in technology, and subjective and changing consumer preferences;
4. SQUARE ENIX GROUP's ability to expand international success with a focus on our businesses; and
5. regulatory developments and changes and our ability to respond and adapt to those changes.

The forward‐looking statements regarding earnings contained in these materials were valid at the time these materials were drafted. SQUARE ENIX GROUP assumes no obligation to update or revise any forward‐looking statements, including forecasts or projections, whether as a result of new information, subsequent events or otherwise.

The financial information presented in this document is prepared according to generally accepted accounting principles in Japan.

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01

Financial Results Fiscal Year Ended March 31, 2024

Consolidated Statement of Income Fiscal Year ended March 31, 2024

				(Billions of Yen)
	Fiscal Year Ended	Fiscal Year Ended
	March 31, 2023	March 31, 2024
	Full Year Results	Full Year Results		Changes
Net Sales	343.2	356.3		13.1
Operating Income	44.3	32.5		(11.8)
Operating Income Margin	12.9%	9.1%		(3.8pt)
Ordinary Income	54.7	41.5		(13.2)
Ordinary Income Margin	15.9%	11.7%		(4.2pt)
Profit attributable to owners of	49.2	14.9		(34.3)
parent
Depreciation and Amortization	6.9	7.5		0.6
Capital Expenditure	9.6	12.7		3.1
Number of Employees	4,712	4,770		58

4

Consolidated Statement of Income Fiscal Year ended March 31, 2024 by Business Segment

			(Billions of Yen)
	Fiscal Year Ended March 31, 2023	Fiscal Year Ended March 31, 2024
	Full Year Results	Full Year Results	Changes
Net sales	343.2	356.3	13.1
Digital Entertainment	245.5	248.1	2.6
Amusement	56.3	61.5	5.2
Publication	29.1	31.0	1.9
Merchandising	15.6	18.9	3.3
Eliminations or unallocated	(3.4)	(3.3)	0.1
Operating income	44.3	32.5	(11.8)
Digital Entertainment	41.2	25.4	(15.8)
Amusement	5.2	7.5	2.3
Publication	11.6	11.9	0.3
Merchandising	3.7	5.6	1.9
Eliminations or unallocated	(17.5)	(18.1)	(0.6)
Operating income margin	12.9%	9.1%	(3.8pt)
Digital Entertainment	16.8%	10.3%	(6.5pt)
Amusement	9.4%	12.3%	2.9pt
Publication	39.9%	38.5%	(1.4pt)
Merchandising	23.8%	29.9%	6.1pt
Eliminations or unallocated	-	-	-
			5

Consolidated Balance Sheet as of March 31, 2024

							(Billions of Yen)
		Assets			Liabilities and Net Assets
Account	03/2023	03/2024	Changes	Account	03/2023	03/2024	Changes
Cash and deposits	193.5	225.9	32.4	Notes and accounts	23.5	24.3	0.8
payable
Notes and accounts	39.9	44.6	4.7	Income taxes payable	3.4	6.9	3.5
receivable
Inventories	5.7	5.7	0.0	Refund liabilities	5.1	4.4	(0.7)
Content production	87.2	48.5	(38.7)	Others	39.5	45.7	6.2
account
Others	15.9	14.3	(1.6)	Total Current	71.7	81.5	9.8
Liabilities
Total Current Assets	342.2	339.2	(3.0)	Non-current	10.6	12.1	1.5
				Liabilities
Property and	17.7	23.0	5.3	Total Liabilities	82.3	93.7	11.4
equipment
Intangible Assets	5.8	5.8	0.0	Total Shareholders'	324.7	325.2	0.5
Equity
Investments and other	33.7	42.6	8.9	Others	(7.4)	(8.1)	(0.7)
assets
Total Non-current	57.3	71.6	14.3	Total Net Assets	317.2	317.1	(0.1)
Assets
Total Assets	399.6	410.8	11.2	Total Liabilities and	399.6	410.8	11.2
Net Assets

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02

Consolidated Financial Results and Progress in Each Business Segment

Consolidated Financial Results

Net sales up YoY

Profits down, partly on content production account valuation/abandonment losses

（Billions of yen）	（Billions of yen)
400.0			80.0

300.0		60.0

200.0								40.0
365.2			343.2	356.3
59.2
51.0	44.3	49.2
100.0						20.0
					32.5
						14.9
0.0								0.0
			FY2022/3		FY2023/3		FY2024/3
			Full Year		Full year		Full Year
			Net Sales (left axis)		Operating Income (right axis)		Profit attributable to owners of parent (right axis)

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Digital Entertainment

Net sales up, but profits down YoY despite major HD game releases, partly due to a YoY decline in MMO and Games for Smart Devices/PC browser sub-segment sales, and higher development cost amortization and content production account valuation losses

（Billions of yen）	279.6		（Billions of yen）
300.0				75.0
	58.9	245.5	248.1
200.0					50.0
		41.2
100.0				25.4	25.0

0.0								0.0
	FY2022/3 Full Year	FY2023/3 Full Year	FY2024/3 Full Year
			Net Sales (left axis)			Operating Income (right axis)

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Digital Entertainment

HD Games: Launched multiple new titles, including titles featuring key IP

Net Sales: ¥99.2 billion(Prior FY: ¥78.5 billion/ up ¥20.7 billion YoY)

Operating loss: ¥8.1 billion(Prior FY: Operating loss ¥4.1 billion/up ¥4.0 billion YoY)

Major new titles in FY2024/3

PlayStation 4/Nintendo Switch:	Launched on Jun 22, 2023	Launched on Sep 28, 2023	¥Launched on Nov 2, 2023
*Steam: Launched on Sep 29, 2023	*Steam: Launched on Nov 3, 2023
Launched on Apr 20, 2023

Launched on Dec 1, 2023

Launched on Feb 6, 2024

© SQUARE ENIX	©SANJO RIKU, INADA KOJI/ SHUEISHA, The Adventure of Dai Project
LOGO & IMAGE ILLUSTRATION:© YOSHITAKA AMANO
© SQUARE ENIX CO., LTD. All Rights Reserved.
© SQUARE ENIX
© 1998, 2023 SQUARE ENIX Original version developed by tri-Ace Inc.
LOGO & IMAGE ILLUSTRATION:© YOSHITAKA AMANO

Launched on Feb 29, 2024

© ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX

© SQUARE ENIX10 © SQUARE ENIX

CHARACTER DESIGN: TETSUYA NOMURA/ROBERTO FERRARI LOGO ILLUSTRATION:©1997 YOSHITAKA AMANO