SQUARE ENIX HOLDINGS CO., LTD.
U.K. Road Show Material
February 2017
1
Sales Trend and Mid‐term Plan Expecting sales increase over 6 consecutive years through high growth in the Digital Entertainment (DE) segment, which is the key driver for achieving the mid‐term goal. Million JPY
Mid‐term Plan 300,000～ 400,000 MJPY
Sales Trend
450,000 400,000 350,000 300,000
Adjustment 250,000
Merchandising Publication
200,000
Amusement Digital Entertainment
150,000 100,000 50,000
FY2017 : Based on the intermmediate scenario in the forecast range.
0 FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
2
FY2017E
FY2018
FY2019T
Profit Trend and Mid‐term Plan On top of stable profit base of MMO and Games for Smart Devices and PC Browser segments, improvement of DE profitability is crucial. Operating Income Trend
Million JPY
Mid‐term Plan 50,000 MJPY
60,000 50,000 40,000
Adjustment
30,000
Merchandising
20,000
Publication
10,000
Amusement Digital Entertainment
0 (10,000)
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017E
FY2018
FY2019T FY2017 : Based on the intermmediate scenario in the forecast range.
(20,000)
Sales Composition Trend by DE Sub Segment 100% 80% 60%
HD
40%
MMO
20%
Games for Smart Devices/PC Browser
0% FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
3
FY2017E
Strategies to Achieve the Mid‐term Plan.
1. Digital Sales Enhancement 2. Multi Platform Utilisation 3. Geographical Expansion
4
1. Digital Sales Enhancement
・Establish SQEX digital sales global website ‐Cross‐border/platform sales channel ‐Long tail revenue stream
・Create library of catalogue titles, and eliminate backward compatibility issue 5
1. Digital Sales Enhancement Digital sales are growing through strong library of catalogue titles and long tail sales. Aim at further growth with introducing additional PDLC and effective digital marketing. HD Segment Digital Sales Trend Million JPY
45,000 40,000 35,000 30,000 25,000
Package Sales 20,000
Digital Sales
15,000 10,000 5,000 0 FY2016 Q1
FY2016 Q2
FY2016 Q3
FY2016 Q4
FY2017 Q1
6
FY2017 Q2
FY2017 Q3
2. Multi Platform Utilisation
・Access to a broader customer base ・Long tail sales ・Extensive IP utilisation in multi segments
7
2. Multi Platform Utilisation Access to broader a customer base by multi platform utilisation. Create an environment in which our games are playable anytime, anywhere.
©2017 Sony Interactive Entertainment Inc.
©2017 Valve Corporation. ©2017 Microsoft
©2017 Google Inc. ©2017 Apple Inc. ©Nintendo
"PS4(logo)" is a registered trademark of Sony Interactive Entertainment Inc. Xbox one and Xbox one logo are trademarks or registered trademarks of Microsoft Corporation. Steam and the Steam logo are trademarks and/or registered trademarks of Valve Corporation in the U.S. and/or other countries. Nintendo Switch logo and Nintendo Switch are trademarks of Nintendo. Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc., registered in the U.S. and other countries. Google Play and the Google Play logo are trademarks of Google Inc. All other product names, service names, company names, and logo marks are the trademarks, registered trademarks, or trade names of their respective companies.
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2. Multi Platform Utilisation Fully enhance IPs originated in HD games into multi segments to maximize IP value. MMO Smart Device
Amusement
©2017 SQUARE ENIX CO., LTD. All Rights Reserved. ©2017 SQUARE ENIX CO., LTD. All Rights Reserved.
HD ©2016, 2017 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by gumi Inc. Illustration/ ©2015 YOSHITAKA AMANO
©2015-2017 KOEI TECMO GAMES/SQUARE ENIX CO., LTD. All Rights Reserved. CHARACTER DESIGN: TETSUYA NOMURA
©2015-2017 SQUARE ENIX CO., LTD. All Rights Reserved.
Publication
Merchandising
©SQUARE ENIX CO., LTD. All Rights Reserved. CHARACTER DESIGN: TETSUYA NOMURA/ROBERTO FERRARI
©2016 SQUARE ENIX CO., LTD. All Rights Reserved. MAIN CHARACTER DESIGN：TETSUYA NOMURA
IP Licensing Out
©SQUARE ENIX CO., LTD. All Rights Reserved. CHARACTER DESIGN: TETSUYA NOMURA
©2016 SQUARE ENIX CO., LTD. All Rights Reserved. MAIN CHARACTER DESIGN: TETSUYA NOMURA
©Machine Zone, Inc. The trademark “Machine Zone,” and logo are trademarks of Machine Zone, Inc.
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3. Geographical Expansion
・Expansion of mobile games to overseas market ・Exploitation of emerging game markets
10
3. Geographical Expansion Effectively utilise both of self publishing and IP licensing to local partners, to reach out the global mobile game market.
Global Market (excl. China) Self Publishing
China Market IP Licensing Out
©2016, 2017 SQUARE ENIX CO., LTD. All Rights Reserved. CHARACTER DESIGN:TETSUYA NOMURA
©2015-2017 SQUARE ENIX CO., LTD. All Rights Reserved.
©2016, 2017 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by gumi Inc. Illustration/ ©2015 YOSHITAKA AMANO
©Disney Developed by SQUARE ENIX
©2014-2017 SQUARE ENIX CO., LTD. All Rights Reserved. Published by Mobimon Inc.
IP Licensing Out ©Machine Zone, Inc. The trademark “Machine Zone,” and logo are trademarks of Machine Zone, Inc.
©SQUARE ENIX CO., LTD. ©DeNA Co., Ltd.
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©2001-2017 DWANGO/ZENER WORKS/ponsbic/ SQUARE ENIX CO., LTD. All Rights Reserved.
3. Geographical Expansion Participated the India Gaming Show 2017 with HD game‐focused lineup. Planning business expansion to emerging game markets including India.
※Exhibition Titles ・Final Fantasy XV ・HITMAN ・NieR : Automata ・Rise of The Tomb Raider ・SQEX Game Title Movies 12
Ref：HD Segment Pipeline Established a robust pipeline from which 1‐2 blockbuster titles as well as multiple mid‐ size titles are constantly launched every year. FY2017
FY2018 and beyond
©2016 SQUARE ENIX CO., LTD. All Rights Reserved. MAIN CHARACTER DESIGN：TETSUYA NOMURA
©2017 ARMOR PROJECT/BIRD STUDIO/ SQUARE ENIX All Rights Reserved.
©Disney Developed by SQUARE ENIX
To be released in 2017 Tomb Raider ©2016 Square Enix Ltd.
©2006, 2017 SQUARE ENIX CO., LTD. All Rights Reserved. Deus Ex: Mankind Divided ©2016 Square Enix Ltd. All rights reserved. Developed by Eidos-Montréal. Deus Ex, Deus Ex: Mankind Divided, Eidos-Montréal, and the Eidos-Montréal logo are trademarks or registered trademarks of Square Enix Ltd.
©2016 SQUARE ENIX CO., LTD. All Rights Reserved. CHARACTER DESIGN: TETSUYA NOMURA/ YASUHISA IZUMISAWA
To be released on 13th July 2017
©2017 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved. DRAGON QUEST characters: ©ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX FINAL FANTASY characters: ©SQUARE ENIX CHARACTER ILLUSTRATION:SHIRO AMANO
©Disney Developed by SQUARE ENIX
To be released in 2017
13
©SQUARE ENIX CO., LTD. All Rights Reserved. CHARACTER DESIGN: TETSUYA NOMURA/ROBERTO FERRARI
MARVEL IP License
Ref：MMO Segment Pipeline Expansion disks for FINAL FANTASY XIV and DRAGON QUEST X, our major MMO titles, will be launched in FY2018/3. Enhance paying user base and drive expansion disc sales To be launched in FY2018/3
To be launched on 20th June 2017
©2017 SQUARE ENIX CO., LTD. All Rights Reserved. © 2012-2017 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved. © SUGIYAMA KOBO
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Ref：Games for Smart Devices/PC Browser Lineup New titles launched in the second half of FY2017/3 are performing well on top of strong performance of existing major titles. New titles will be launched consecutively.
Jan 2014
Sep 2014
Oct 2015
Oct 2015
Feb 2017
Alliane with DeNA Co., Ltd. ©2015-2017 ARMOR PROJECT/BIRD STUDIO/ SQUARE ENIX All Rights Reserved. ©SUGIYAMA KOBO Developed by Cygames, Inc.
Apr 2014
©2014-2017 SQUARE ENIX CO., LTD. All Rights Reserved.
©2015-2017 ARMOR PROJECT/BIRD STUDIO/ SQUARE ENIX All Rights Reserved. ©SUGIYAMA KOBO
©SQUARE ENIX CO., LTD. ©DeNA Co., Ltd.
©2017 KOEI TECMO GAMES/ SQUARE ENIX CO., LTD. All Rights Reserved. CHARACTER DESIGN: TETSUYA NOMURA
©2016, 2017 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by gumi Inc. Illustration/ ©2015 YOSHITAKA AMANO
Nov 2014
©2014-2017 SQUARE ENIX CO., LTD. All Rights Reserved.
Jun 2015
©2015-2017 SQUARE ENIX CO., LTD. All Rights Reserved.
15
Sep 2015
©Disney Developed by SQUARE ENIX
Dec 2016
©2016, 2017 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by tri-Ace Inc.
