RESULTS BRIEFING SESSION: THE FIRST-HALF OF THE FISCAL YEAR ENDING MARCH 31,2009 pptx

Results Briefing SessionResults Briefing Session
The FirstThe First Half Half of the Fiscal Yearof the Fiscal Year
ending March 31, 2009ending March 31, 2009
ending

March

31,

2009ending

March

31,

2009
November 7 2008November 7 2008
November

7
,
2008November

7
,
2008
1
Statements made in this document with respect to SQUARE ENIX
HOLDINGS CO
LTD and
its

Statements

made

in

this

document

with

respect

to

SQUARE

ENIX

HOLDINGS

CO
.,
LTD
.
and

its

consolidated subsidiaries' (together, “SQUARE ENIX GROUP") plans, estimates, strategies and beliefs are
forward-looking statements about the future performance of SQUARE ENIX GROUP.
These statements are based on management's assumptions and beliefs in light of information available to it
at the time these material were drafted and
,
therefore
,
the reader should not
p
lace undue reliance on them.
,, p
Also, the reader should not assume that statements made in this document will remain accurate or operative at
a later time.
A number of factors could cause actual results to be materially different from and worse than those
discussed in forward-looking statements. Such factors include, but not limited to:
1. changes in economic conditions affecting our operations;
2. fluctuations in currency exchange rates, particularly with respect to the value of the Japanese
yen, the U.S. dollar and the Euro;
3. SQUARE ENIX GROUP’s ability to continue to win acceptance of our products and services, which are
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titi k t h t i d b th ti i t d ti f d t d
o
ff
ere
d

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n

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g
hl
y compe
titi
ve mar
k
e
t
s c
h
arac
t
er
i
ze
d

b
y
th
e con
ti
nuous
i
n
t
ro
d
uc

ti
on o
f
new pro
d
uc
t
s an
d

services, rapid developments in technology, and subjective and changing consumer
preferences;
4. SQUARE ENIX GROUP’s ability to expand international success with a focus on our businesses; and
5 regulatory developments and changes and our ability to respond and adapt to those
changes
5
.
regulatory

developments

and

changes

and

our

ability

to

respond

and

adapt

to

those

changes
.
The forward-looking statements regarding earnings contained in these materials were valid at the time these
materials were drafted. SQUARE ENIX GROUP assumes no obligation to update or revise any forward-looking
statements, includin
g
forecasts or
p
ro
j
ections, whether as a result of new information, subse
q
uent events or
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q
otherwise.
The financial information presented in this document is prepared according to generally accepted accounting

principles in Japan.
2
1.1. Consolidated Financial ResultsConsolidated Financial Results
Fi tFi t
Hlf fth Fi lYHlf fth Fi lY
Fi
rs
tFi
rs
t

H
a
lf
o
f

th
e
Fi
sca
l

Y
ear
H
a
lf
o
f

th
e
Fi
sca
l

Y
ear
endin
g
March 31
,
2009endin
g
March 31
,
2009
g,g,
3
Consolidated Results of the FirstConsolidated Results of the First Half Half
(April 1, 2008 through September 30, 2008)(April 1, 2008 through September 30, 2008)
4
Consolidated Results Consolidated Results ––Segment Segment
(April 1, 2008 through September 30, 2008)(April 1, 2008 through September 30, 2008)
5
Consolidated Results Consolidated Results –– Sales by RegionSales by Region
(April 1, 2008 through September 30, 2008)(April 1, 2008 through September 30, 2008)
6
UnitUnit Sales of Game SoftwareSales of Game Software

(April 1, 2008 through September 30, 2008)(April 1, 2008 through September 30, 2008)
1 150
DRAGON QUEST V (DS)
(Thousand units)
10
10
1
,
150
250
150
180
460
FINAL FANTASY IV (DS)
CRISIS CORE -FINAL FANTASY VII- (PSP)
DRAGON

QUEST

V

(DS)
620
440
30
120
90
200
200
140

120
90
DRAGON QUEST IV (DS)
FINAL FANTASY TACTICS A2 (DS)
INFINITE UNDISCOVERY (XBOX360)
410
320
260
70
140
100
20
CHOCOBO
’
S DUNGEON (Wii)
DRAGON QUEST SWORD (Wii)
THE WORLD ENDS WITH YOU (DS)
Japan
Norh Ameica
2,050
1,560
(3,940)
(1,320)
(April-Sep 2007)
160
60
70
70
NANASHI NO GAME (DS)
SIGMA HARMONICS (DS)

CHOCOBO S

DUNGEON

(Wii)
Europe
Asia
1,360
10
4 980
(1,610)
(50)
(6 920
)
550
50
460 250 10
0
500
1 000
1 500
2 000
Others
FRONT MISSION 2089 (DS)
4
,
980
(6
,
920

)
1270
7
0
500
1
,
000
1
,
500
2
,
000
(Reference)(Reference)
(Thousand units)
610
820
250
610
180
460 30
FINAL FANTASY IV (DS)
CRISIS CORE -FINAL FANTASY VII- (PSP)
1,920
1,040
1,190
300
90
200

140
120
DRAGON QUEST IV (DS)
FINAL FANTASY TACTICS A2 (DS)
620
1,420
90
500
180
70
110
140
100
50
CHOCOBO
'
S DUNGEON (Wii)
DRAGON QUEST SWORD (Wii)
THE WORLD ENDS WITH YOU (DS)
370
710
160
90
70
CHOCOBO S

DUNGEON

(Wii)
Japan

North America
Europe
160
0
500
1 000
1 500
2 000
Europe
Asia
8
0
500
1
,
000
1
,
500
2
,
000
Games (Online) and Mobile Phone ContentGames (Online) and Mobile Phone Content
(April 1, 2008 through September 30, 2008)(April 1, 2008 through September 30, 2008)
56%
60%
Operating Margin
50%
49%
41%

38%
51%
40%
50%
26%
36%
38%
38%
39%
27%
30%
40%
26%
14%
27%
10%
20%
Games (Online)
Mobile Phone Content
0%
10%
2004 3
2005 3
2006 3
2007 3
2008 3
2009 3
9
2004
.

3
2005
.
3
2006
.
3
2007
.
3
2008
.
3
2009
.
3
First-Half
PublicationPublication
(April 1, 2008 through September 30, 2008)(April 1, 2008 through September 30, 2008)
Record sales driven by successful media mix strategy
6180
7,000
Second-Half Operating Income
First
-
Half Operating Income
Soul Eater
(Millions of yen)
5,157
5,426

5,210
6
,
180
5,000
6,000
First
-
Half

Operating

Income
First-Half Net Sales
©Atsushi Ohkubo
3,569
4,471
3 000
4,000
Nabari no Ou
2,000
3
,
000
Sekirei
© Yuhki Kamatani
1,065
1,752
991
1,767

1,676
1,735
0
1,000
10
2004.3 2005.3 2006.3 2007.3 2008.3 2009.3
© Sakurako Gokurakuin
Game Arcade OperationGame Arcade Operation
YY
C i f M thl R f E i ti O tl tC i f M thl R f E i ti O tl t
Y
ear
Y
ear overover year
C
ompar
i
son o
f

M
on
thl
y
R
evenues
f
rom
E
x

i
s
ti
ng
O
u
tl
e
t
syear
C
ompar
i
son o
f

M
on
thl
y
R
evenues
f
rom
E
x
i
s
ti
ng

O
u
tl
e
t
s
While outperforming the industry,
sales and profit declined in severe
b
usiness climate
130%
100% owned subsidiary
acquisition
sales

and

profit

declined

in

severe

b
usiness

climate
110%

120%
100%
110%
80%
90%
TAITO
Com
p
an
y
A
Com
p
an
y
E
70%
2004/4 2005/4 2006/4
2007/4
2008/4
11
TAITO
py
Company B
Company C
Company D
py
Company F
Company G
Source: Square Enix

OthersOthers
(April 1, 2008 through September 30, 2008)(April 1, 2008 through September 30, 2008)
7,227
8,000
Second-Half Operating Income/Loss
fO
DRAGON QUEST
Monster Battleroad
(Rental)
(Millions of yen)
4 863
5 000
6,000
7,000
First-Hal
f

O
perating Income
First-Half Net Sales
4
,
863
3,696
3,000
4,000
5
,
000
© 2008 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved.

1
,
330
1,511
1
,
334
2,085
1,712
1,476
2,615
1,000
2,000
LORD of VERMILION
(Sales)
509
370
,
,
-1,000
0
2004.3 2005.3 2006.3 2007.3 2008.3 2009.3
12
©2008 SQUARE ENIX CO.,LTD. All Rights Reserved.
2.2. ProjectionsProjections
Fi l Y di M h 31 2009Fi l Y di M h 31 2009
Fi
sca
l

Y
ear en
di
ng
M
arc
h

31
,
2009Fi
sca
l

Y
ear en
di
ng
M
arc
h

31
,
2009
13
Consolidated Projections Consolidated Projections
(Fi l Y di M h 31 2009)(Fi l Y di M h 31 2009)
(Fi
sca

l

Y
ear en
di
ng
M
arc
h

31
,
2009)(Fi
sca
l

Y
ear en
di
ng
M
arc
h

31
,
2009)
14
*Assumed currency rates (average rates during the period) : USD1=JPY105, EUR1=JPY150
*Average rates for the first-half period ended Sep. 30, 2008: USD1=JPY106.23, EUR1=JPY162.12

Consolidated Projections Consolidated Projections ––SegmentSegment
(Fi l Y di M h 31 2009)(Fi l Y di M h 31 2009)
(Fi
sca
l

Y
ear en
di
ng
M
arc
h

31
,
2009)(Fi
sca
l

Y
ear en
di
ng
M
arc
h

31
,

2009)
15
UnitUnit Sales of Game SoftwareSales of Game Software
(Fi l Y di M h 31 2009)(Fi l Y di M h 31 2009)
(Fi
sca
l

Y
ear en
di
ng
M
arc
h

31
,
2009)(Fi
sca
l

Y
ear en
di
ng
M
arc
h

31
,
2009)
16
Implementation of Holding Company SystemImplementation of Holding Company System
Current Structure
(from October 1, 2008)(from October 1, 2008)
SQUARE ENIX HOLDINGS CO., LTD.
(The former SQURE ENIX CO., LTD. changed its name)
SQUARE
S
q
uare Enix
SEi
S
q
uare Enix
COMMUNITY
Square Enix
SQUARE
ENIX CO., LTD.
q
of America
Holdings, Inc.
S
quare
E
n
i
x

Ltd.
TAITO
CORPORATION
q
(China) Co.,
Ltd
SG Lab Inc.
COMMUNITY
ENGINE INC.
New company succeeded
businesses from SQUARE
ENIX HOLDINGS
Websta
r
Network
TECHNOLOGY
(BEIJING)CO.,LTD
SQUARE L.L.C.
SQUARE ENIX,
INC.
DIGITAL
ENTERTAINMENT
ACADEMY CO.,
LTD
HUANG LONG
CO., LTD.
SQUARE
PICTURES, INC.
FF.FILM.
PARTNERS

(partnership)
LTD
.
BEIJING TAIXIN
CULTURAL
AMUSEMENT CO
TAITO
KOREA
(partnership)
17
AMUSEMENT

CO
.,
LTD.
CORPORATION
Results Briefing SessionResults Briefing Session
FirstFirst Half of the Fiscal YearHalf of the Fiscal Year
ending March 31, 2009ending March 31, 2009
ending

March

31,

2009ending

March

31,

2009
November 7 2008November 7 2008
November

7
,
2008November

7
,
2008
18