Square Enix : Results Briefing Session for the Three-Month Period Ended June 30, 2023

Financial Results

Briefing Session

Three‐Month Period Ended June 30, 2023

August 4, 2023

SQUARE ENIX HOLDINGS CO., LTD.

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.

(Amounts under one hundred million yen are rounded down)

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Financial Results

First Quarter of Fiscal Year

Ending March 31, 2024

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Consolidated Statement of Income

Q1, FY2024/3

						(Billions of Yen)
	Fiscal Year Ended		Fiscal Year Ending
	March 31, 2023		March 31, 2024
	Q1	Full Year Results	Q1	Changes	Full Year	Changes
	Forecasts
Net sales	74.8	343.2	85.6	10.8	360.0	16.8
Operating income	14.4	44.3	3.0	(11.4)	55.0	10.7
Operating income margin	19.3%	12.9%	3.6%	(15.7pt)	15.3%	2.4pt
Ordinary income	26.2	54.7	9.1	(17.1)	55.0	0.3
Ordinary income margin	35.1%	15.9%	10.7%	(24.4pt)	15.3%	(0.6pt)
Profit attributable to	18.3	49.2	6.3	(12.0)	38.5	(10.7)
owners of parent
Depreciation and	1.7	6.9	1.6	(0.1)	9.9	3.0
amortization
Capital expenditure	1.4	9.6	3.8	2.4	11.7	2.1

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Consolidated Statement of Income

Q1, FY2024/3 by Business Segment

				(Billions of Yen)
	Fiscal Year Ended	Fiscal Year Ending
	March 31, 2023	March 31, 2024
	Q1	Q1		Changes
Net sales	74.8	85.6		10.8
Digital Entertainment	53.5	62.3		8.8
Amusement	11.9	13.3		1.4
Publication	6.2	5.9		(0.3)
Merchandising	3.6	4.7		1.1
Eliminations or unallocated	(0.6)	(0.7)		(0.1)
Operating income	14.4	3.0		(11.4)
Digital Entertainment	14.1	2.7		(11.4)
Amusement	1.1	1.4		0.3
Publication	2.4	2.1		(0.3)
Merchandising	0.8	1.2		0.4
Eliminations or unallocated	(4.2)	(4.5)		(0.3)
Operating income margin	19.3%	3.6%		(15.7pt)
Digital Entertainment	26.4%	4.4%		(22.0pt)
Amusement	9.5%	11.1%		1.6pt
Publication	39.9%	35.7%		(4.2pt)
Merchandising	23.0%	27.2%		4.2pt
Eliminations or unallocated	‐	‐		‐

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