2Q FY2022/3 Financial Results Briefing by SQUARE ENIX HOLDINGS held on Nov. 5, 2021

We would now like to begin the Financial Results Briefing
session of SQUARE ENIX HOLDINGS (the “Company”) for the firsthalf of the fiscal year ending March 31, 2022 (“1H FY2022/3”).
Today’s presenters are:
Yosuke Matsuda, President and Representative Director, andAtsushi Matsuda, Chief Accounting Officer.

First, Mr. Matsuda, Chief Accounting Officer, will give an
overview of the Company’s financial results for 1H FY2022/3,
and then our president Mr. Matsuda will discuss the progress
made by each of the Company’s business segments.

I am Atsushi Matsuda, the Chief Accounting Officer.
In 1H FY2022/3, the Company booked net sales of ¥168.9 billion(down ¥3.8 billion YoY), operating income of ¥29.1 billion (down¥2.5 billion), ordinary income of ¥31.4 billion (up ¥900 million),and net income attributable to parent company shareholders of¥22.9 billion (up ¥6.9 billion).

1 / 10The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions andjudgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are manyfactors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 5, 2021. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new
information becomes available and/or events occur after November 5 2021.

2Q FY2022/3 Financial Results Briefing by SQUARE ENIX HOLDINGS held on Nov. 5, 2021

I will next break down our results by segment.
The Digital Entertainment segment posted net sales of ¥129.4
billion (down ¥13 billion YoY) and operating income of ¥29.4
billion (down ¥4.4 billion).
While the HD Games sub-segment released such home console
titles as “OUTRIDERS,” “NieR Replicant ver.1.22474487139…”,“NEO: The World Ends with You,” and “Life is Strange: True
Colors,” its net sales were lower than in the same period of theprevious fiscal year, which had seen the release of “FINALFANTASY VII REMAKE” and “Marvel’s Avengers.”
Net sales rose YoY in the MMO sub-segment thanks to sharp
growth in paying subscriber numbers for “FINAL FANTASY XIV.”The Games for Smart Devices/PC Browser sub-segment saw net
sales decline YoY, in part because of lackluster performance inexisting titles.
The Amusement segment booked net sales of ¥21 billion (up¥7.1 billion) and operating income of ¥600 million (versus an
operating loss of ¥1.6 billion a year earlier). The segment had
been heavily impacted in the previous year by the temporary
closure of our amusement facilities in Japan, a move taken to
help prevent the spread of COVID-19 in keeping with theJapanese government’s state of emergency declaration. As such,net sales rose substantially YoY, and the segment moved into theblack at the operating line.
The Publication segment booked net sales of ¥14.1 billion (up¥1.8 billion YoY) and operating income of ¥5.9 billion (up ¥600
million). Both sales and profits rose YoY thanks to growth in salesof e-books and other digital media, as well as brisk sales of print
media.
The Merchandising segment posted net sales of ¥5.8 billion (up2 / 10The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions andjudgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are manyfactors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 5, 2021. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new
information becomes available and/or events occur after November 5 2021.

2Q FY2022/3 Financial Results Briefing by SQUARE ENIX HOLDINGS held on Nov. 5, 2021

¥1 billion YoY) and operating income of ¥1.7 billion (up ¥200
million). Both sales and profits rose YoY, in part because of brisk
sales of new character goods based on the Company’s IP.
This concludes my overview of our 1H FY2022/3 financial
results.
I am Yosuke Matsuda. I will be discussing the progress made byeach of our business segments, as well as the progress that wehave made with our medium-term business strategy.

In 1H, net sales and operating income fell YoY.

This is a breakdown for the Digital Entertainment segment. The
HD Game sub-segment released “Life is Strange: True Colors”
and “NEO: The World Ends with You” in 2Q. We have plans torelease “Life is Strange: True Colors” for Nintendo Switch, as wellas “Life is Strange Remastered Collection” in the near future. .
We are hoping for both titles to continue to sell well over thelong term. While “NEO: The World Ends with You” was wellreceived by users, it has underperformed our initialexpectations.
As in 1Q, the MMO sub-segment benefitted from brisk
recurring revenue from “FINAL FANTASY XIV.” We expect the
3 / 10The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions andjudgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are manyfactors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 5, 2021. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new
information becomes available and/or events occur after November 5 2021.

2Q FY2022/3 Financial Results Briefing by SQUARE ENIX HOLDINGS held on Nov. 5, 2021

release of an expansion pack in 3Q to generate additional
excitement.
Net sales at the Games for Smart Devices/PC Browser subsegment declined due to lackluster performances from existing
titles and to the release of few new titles. However, we have
prepared a variety of initiatives to turn sales upward in 2H.
This slide shows our HD game pipeline.

In the MMO sub-segment, we have 3Q expansion pack releases
planned for “FINAL FANTASY XIV” and “DRAGON QUEST X
ONLINE.”The Games for Smart Devices/PC Browser sub-segment
launched “DRAGON QUEST The Adventure of Dai: A Hero’s
Bonds” on September 28.

4 / 10The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions andjudgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are manyfactors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 5, 2021. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new
information becomes available and/or events occur after November 5 2021.

2Q FY2022/3 Financial Results Briefing by SQUARE ENIX HOLDINGS held on Nov. 5, 2021

This slide shows the breakdown of digital and physical sales atthe Digital Entertainment segment.

This slide shows units sold by region in 1H. The sharp YoY
decline owes in part to the high hurdle set the previous year by
the release of major titles.

Our content production account stood at ¥89.7 billion as of theend of 2Q. We have multiple major titles slated for launch, andwe will ensure that each release meets certain standards ofquality.

5 / 10The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions andjudgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are manyfactors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 5, 2021. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new
information becomes available and/or events occur after November 5 2021.

2Q FY2022/3 Financial Results Briefing by SQUARE ENIX HOLDINGS held on Nov. 5, 2021

While the Amusement segment’s net sales rose YoY and it
turned into the black, it was unable to avoid impact from thestate of emergency declarations. The declarations have been
lifted since October, so we hope to see earnings recover going
forward.

The Publication segment delivered a solid performance.

The Merchandising segment’s progress tracked our plan in 1H.

Next, I will discuss our progress on our medium-term businessstrategy.

6 / 10The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions andjudgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are manyfactors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 5, 2021. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new
information becomes available and/or events occur after November 5 2021.

2Q FY2022/3 Financial Results Briefing by SQUARE ENIX HOLDINGS held on Nov. 5, 2021

At the outset of this fiscal year, I laid out a business strategy forachieving our medium-term earnings targets that involved: (1)strengthening our IP ecosystem, (2) taking on new domains, and(3) optimizing our business structure for a COVID world. Today
I’ll be discussing (2) taking on new domains, namely concrete
initiatives involving NFTs and our full-fledged entry into
blockchain games.
Firstly, a specific initiative we undertook involving NFTs was the
October 14 launch of “Shi-San-Sei Million Arthur” NFT digital
cards. Through this initiative, we recognized that NFTs and ourcontent pair well together. We have therefore concluded theproof-of-concept phase and will now undertake preparations forfull commercialization.

I will next discuss blockchain games.
The digital entertainment environment is currently undergoing
major changes in terms of how games are played and how
technology is advancing.
In the case of blockchain games, I believe that how you fusetoken economies into game designs is key. The content
development at which we have traditionally excelled has
involved the creation of complete self-contained worlds, as
illustrated by our RPG titles. We consider such content“centralized” as opposed to “decentralized.”

7 / 10The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions andjudgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are manyfactors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 5, 2021. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new
information becomes available and/or events occur after November 5 2021.

2Q FY2022/3 Financial Results Briefing by SQUARE ENIX HOLDINGS held on Nov. 5, 2021

However, fusing token economies into game designs holds thepotential of expanding games into decentralized space andreaching a broader range of users. We will be making a robust
entry into blockchain games in order to grow them into a newpillar for the Company.
We currently do not possess sufficient expertise, so we will go
about obtaining that expertise through aggressive hiring and via
partnerships with other firms, while simultaneously pursuing
game development efforts.

8 / 10The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions andjudgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are manyfactors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 5, 2021. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new
information becomes available and/or events occur after November 5 2021.

2Q FY2022/3 Financial Results Briefing by SQUARE ENIX HOLDINGS held on Nov. 5, 2021

SQUARE ENIX HOLDINGS CO., LTD.
1H FY2022/3 Financial Results Briefing Session Q&A
Date/Time: November 5, 2021 (Fri.); 6:30-7:30 pm (JST)Main Speaker: Yosuke Matsuda, President and Representative Director
Q&A
Q: Why did you maintain your guidance despite the strong progress you made in 1H toward your initial earnings
forecasts? Also, what are your expectations for your forthcoming title launches?
A: In the HD game market, our peers will also be rolling out a succession of new titles going forward, so we will need tokeep a watchful eye on upcoming developments. Competition is also intense for smartphone games, so we want to see
how our new titles perform at the outset of launch. It is for these reasons that we left our guidance unchanged.
Q: How do you view the risk associated with adopting new technologies such as NFTs and blockchain?
A: I see two risks. The first is that our expertise in blockchain games is insufficient at present. The second is that the laws
surrounding blockchain are not sufficiently developed at this time.
Q: The MMO sub-segment did well again in 2Q, but given the expansion pack launches slated for 3Q, can we expect
further upside? Also, what caused the QoQ drop in the operating margin at the Digital Entertainment segment?
A: We hope to maintain the trends seen in the MMO sub-segment in 2Q, while also raising the level of earnings further
in 3Q, when the expansion packs are slated for release. The reason that the Digital Entertainment segment’s operating
margin declined is because some of the new titles that we released in 2Q substantially underperformed our initialexpectations and because the performance of existing titles in the Games for Smart Devices/PC Browser sub-segment
were slow.
Q: Do you plan to spread your HD game releases evenly throughout FY2023/3 and FY2024/3?
A: We plan to release them in each fiscal year without overly concentrating them in any particular period. That said, we
may be forced to change our release schedule in some instances depending on how the development efforts for ourgames progress.
Q: The Games for Smart Devices/PC Browser sub-segment was weak in 2Q despite anniversary events for multiple
titles. Is that because of weakness in the other existing titles? Also, are you planning on improving the sub-segment’s
momentum only by releasing new titles and not by taking steps to bolster the performances of existing titles?
9 / 10The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions andjudgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are manyfactors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 5, 2021. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new
information becomes available and/or events occur after November 5 2021.

2Q FY2022/3 Financial Results Briefing by SQUARE ENIX HOLDINGS held on Nov. 5, 2021

A: The titles for which we held anniversary events delivered solid performances, but our other existing titles were weak.
We intend to improve the sub-segment’s momentum going forward not only by releasing new titles but also by working
to bolster the performances of our existing titles.
Q: Do you see players moving between HD, MMO, and smart device/PC browser FINAL FANTASY titles? Also, could youtell us about what forthcoming initiatives you have planned that are likely to build excitement around the FINALFANTASY franchise as a whole, if any?
A: While we believe that the player profiles differ slightly between our sub-segments (HD Games, MMO, Games for Smart
Device/PC Browser), all players share the desire to play fun games, so we do believe that there is some movement
between titles from the various sub-segments. Also, we are planning to launch two “FINAL FANTASY VII REMAKE” mobile
games, so we expect those launches to produce some benefits.

10 / 10The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions andjudgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are manyfactors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 5, 2021. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new
information becomes available and/or events occur after November 5 2021.