Financial Results Briefing Session: Fiscal Year Ended March 31, 2014

The financial results for the fiscal year ended March 31, 2014, reflect a significant recovery for Square Enix Holdings Co., Ltd., transitioning from an operating loss in the previous year to a return to profitability. The company reported net sales of 155.0 billion yen, a 5% increase over the prior year, and achieved an operating income of 10.5 billion yen. This turnaround was driven primarily by the performance of the Digital Entertainment segment, which generated 94.6 billion yen in sales and 10.7 billion yen in operating income, bolstered by the successful expansion of online titles and mobile gaming initiatives.

Strategic priorities for the period centered on accelerating development cycles, focusing on smart devices as a primary platform, and tailoring product portfolios to meet diverse consumer preferences across global markets. The company successfully leveraged its intellectual property, notably with the "Dragon Quest" and "Final Fantasy" franchises, to capture significant user bases on mobile platforms. Furthermore, the company expanded its international footprint, particularly in Asia, through strategic partnerships and the introduction of large-scale online titles.

Looking ahead to the fiscal year ending March 31, 2015, the company maintains a cautious outlook, projecting net sales between 140.0 and 150.0 billion yen and operating income between 5.0 and 10.0 billion yen. Management continues to emphasize the importance of cloud gaming technology and the development of high-definition titles by Western studios to sustain long-term growth. The company remains committed to its mid-term objective of achieving record operating income levels through a diversified portfolio of digital, arcade, publication, and merchandising assets, supported by a strengthened corporate governance structure.