Square Enix (9684) Investor presentation summary

Medium-term plan priorities

• Three-year reboot targets long-term growth through higher Digital Entertainment (DE) productivity, broader customer touchpoints, stronger management foundations, and balanced investment and shareholder returns.

• Priorities include expanding HD multiplatform releases and catalog sales, developing new SD titles, discovering talent for new IP, and using transmedia initiatives to maximize IP value.

• Overseas publishing restructuring, domestic HR initiatives, AI governance, and data infrastructure are intended to improve operations and productivity.

Digital Entertainment

• HDG profitability improved substantially, supported by multiplatform releases and stronger catalog sales; operating income increased from ¥-3.6bn in FY2025/3 1H to ¥13.0bn in FY2027/3 1H.

• Major-IP plans combine catalog sales with regular new releases, IP reboots, and new-IP development; announced titles include FINAL FANTASY XIV: Evercold for February 2027 and FINAL FANTASY VII Revelation for April 2027.

• SD business operating margin rose from 13% in FY2025/3 1H to 25% in FY2027/3 1H, as live-service costs and the title portfolio were optimized; new title development continues.

• Catalog title unit sales reached 1,259 in FY2027/3 1H (10,000 units), versus 655 in FY2024/3 1H, supporting fan-base expansion and new-title sales.

Diversifying customer touchpoints

• Merchandise and licensing revenue reached ¥6.7bn in FY2026/3 1H; anniversary initiatives for DRAGON QUEST's 40th and FINAL FANTASY X's 25th and official stores and cafés broadened sales channels.

• Publication overseas sales rose to ¥2.2bn in FY2027/3 1H, with manga publishing for overseas markets and anime and live-action adaptations supporting growth opportunities.

• Amusement initiatives are expanding proprietary-IP prize merchandise in Japan and franchise stores overseas, broadening revenue opportunities in both markets.