Notice of Revisions of Consolidated Financial Forecasts and Year-end Dividend

TOKYO–(BUSINESS WIRE)–SQUARE ENIX HOLDINGS CO., LTD. (the “Company”) had released consolidated financial forecasts and a projected year-end dividend for the fiscal year through March 31, 2022 (April 1, 2021 – March 31, 2022) on May 13, 2021, but now announces the following revisions made to reflect recent earnings trends.

1. Revisions to Consolidated Financial Forecasts for the Fiscal Year through March 31, 2022

(April 1, 2021 through March 31, 2022)

(Millions of yen, percentage change, and per share data)

Net sales

Operating
Income

Ordinary
Income

Profit attributable to
owners of parent

Earnings
per share

Previous forecasts

(A)

340,000

40,000

40,000

24,000

201.10

Revised forecasts

(B)

340,000

50,000

50,000

35,000

292.90

Change

(B-A)

10,000

10,000

11,000

Percentage change

(%)

25.0%

25.0%

45.8%

[Reference] Results for the fiscal year ended March 31, 2021

332,532

47,226

49,983

26,942

225.75

2. Reasons for the Revisions

The Company now expects higher operating income than previously anticipated under its consolidated financial forecasts for the fiscal year through March 31, 2022. Among the factors contributing to this revision are substantial growth in the number of paying subscribers for “FINAL FANTASY XIV” and brisk expansion pack sales in the MMO (Massively Multiplayer Online) Game sub-segment, as well as sales of character merchandise based on the Company’s own content exceeding its initial expectations in the Merchandising segment. The Company also expects higher ordinary income and profit attributable to owners of parent than it had previously forecast, in part because the yen has been weaker than the Company had initially assumed. Lastly, the Company’s outlook has been updated to reflect the spread of COVID-19, fluctuations in foreign exchange rates, the competitive environment, etc.

*The above forecasts are based on information available at the time of this document’s release and are subject to various uncertainties. As such, actual performance may differ from these forecasts.

3. Revision of Projected Dividend Per Share for the Fiscal Year through March 31, 2022

Interim

Year-end

Annual

Previous Forecasts
(May 13, 2021)

?51.00

?61.00

Revised Forecasts

?78.00

?88.00

Actual Results for the current FY

?10.00

Actual Results for the previous FY
(FY2021/3)

?10.00

?68.00

(ordinary dividend ? 58.00)

(special dividend ? 10.00)

?78.00

(ordinary dividend ? 68.00)

(special dividend ? 10.00)

4. Reasons for the Revision

The Company recognizes the return of profits to shareholders as one of its most important management tasks and has set a consolidated payout ratio target of approximately 30% to guide its shareholder return policy for the fiscal year through March 31, 2022.

Given the aforementioned revisions to its consolidated financial forecasts, the Company revises its projected year-end dividend for the fiscal year to 78 yen per share, which would make for an annual dividend per share of 88 yen.

(EOF)