U.K. Road Show Material: February 2017

The February 2017 investor presentation outlines a mid-term growth strategy for Square Enix, centered on achieving six consecutive years of sales growth through the expansion of its Digital Entertainment segment. The company targets a sales trajectory reaching 400 billion JPY by fiscal year 2019, supported by a stable profit foundation in MMOs and smart device games, alongside a strategic focus on improving profitability within its high-definition (HD) gaming division.

The core strategy relies on three pillars: digital sales enhancement, multi-platform utilization, and geographical expansion. To drive digital revenue, the company is establishing a global digital sales website to facilitate cross-border transactions and maximize the long-tail potential of its extensive library of catalog titles. Multi-platform utilization aims to broaden the customer base by ensuring titles are accessible across various hardware, including consoles, PC platforms like Steam, and mobile devices. Furthermore, the company is leveraging its intellectual property across diverse segments, including merchandising and publication, to maximize overall asset value.

Geographical expansion focuses on scaling mobile game operations in international markets through a combination of self-publishing and IP licensing to local partners. This includes targeted efforts in emerging markets, evidenced by the company’s participation in the 2017 India Gaming Show. The operational pipeline remains robust, with plans to release one to two blockbuster titles annually alongside multiple mid-sized games. Additionally, the company is committed to sustaining its MMO segment through the consistent release of expansion disks for major titles like Final Fantasy XIV and Dragon Quest X, ensuring a continuous stream of revenue from its established paying user base.