Investor Relations

I am Yosuke Matsuda. I will be discussing the progress made by each of our business segments.

In 1Q, growth in net sales of the Amusement segment offset the decline in net sales of the Digital Entertainment segment. However, the same did not hold true for profits, resulting in higher total net sales but lower total operating income YoY.

This slide shows a breakdown for the Digital Entertainment segment. The HD sub-segment released titles including “NieR Replicant ver.1.22474487139...” and “OUTRIDERS” in 1Q, but these titles did not reach the scale of such previous year releases as “FINAL FANTASY VII REMAKE” and “TRIALS OF MANA,” leading to a YoY decline in net sales.
The MMO sub-segment benefitted from brisk recurring revenue from “FINAL FANTASY XIV.” The Games for Smart Devices/PC Browser sub-segment's performance was somewhat weak due to the lack of new releases and a lull in events.

This slide shows new HD game titles slated for release in FY2022/3.We plan to launch “Life is Strange: True Colors” and “Marvel's Guardians of the Galaxy” during the remainder of the year.

This slide shows the major titles in the Games for Smart Devices/PC Browser sub-segment. While the sub-segment released no new titles in 1Q, we have a slate of forthcoming releases that includes “FINAL FANTASY VII THE FIRST SOLIDER.”

Digital sales ratio rose YoY at the Digital Entertainment segment in 1Q.

This slide shows units sold by region.

This slide shows the Digital Entertainment segment's net sales and content production account for the past three years on a trailing 12-month (TTM) basis.

This slide similarly shows the Digital Entertainment segment's net sales and operating income on a trailing 12-month (TTM) basis.

The Amusement segment struggled in 1Q FY2021/3 due to the temporary closure of our amusement facilities, but it turned into the black at the operating line in 1Q FY2022/3.

The Publication segment delivered a solid performance.

The Publication segment is achieving well-balanced growth between digital and printed media.

Net sales and operating income declined YoY in the Merchandising segment due to the considerable hurdle created in the previous year by sales of “FINAL FANTASY VII REMAKE” character goods and other products.
In our materials for the Financial Results Briefing session for FY2021/3, we referenced taking on new domains, and as we have previously announced, we plan to run a proof of concept for a business model using NFTs. In undertaking such endeavors, we are giving due consideration to various potential regulatory and legal issues. We have formed a task force that is engaged in exploratory efforts with an eye to future commercialization potential.

Lastly, I will discuss our outlook.While we fared better in 1Q than we had anticipated, sales trends in 2Q and beyond will be important. The keys to maintaining a strong performance will be sales trends for new titles in HD Games and Games for Smart Devices/PC Browser sub-segments, and expansion releases in the MMO sub-segment.
The outlook for the Amusement segment is uncertain, given that COVID-19 infections are on the rise in Japan.
In light of the above, we intend to continue to drive our businesses in pursuit of achieving or even surpassing the full-year targets that we have announced, while also responding flexibly to environmental changes.