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 ff d i hi hl titi k t h t i d b th ti i t d ti f d t d o ff ere d i n hi 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 gpj 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 [...]... 12 2 Projections Fiscal Year ending March 31, 2009 Fi lY di M h 31 13 Consolidated Projections (Fiscal Year ending March 31, 2009) (Fi lY di M h 31 *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 14 Consolidated Projections – Segment (Fiscal Year ending March 31, 2009) (Fi... Year ending March 31, 2009) (Fi lY di M h 31 15 Unit Sales of Game Software (Fiscal Year ending March 31, 2009) (Fi lY di M h 31 16 Implementation of Holding Company System (from October 1, 2008) Current Structure SQUARE ENIX HOLDINGS CO., LTD (The former SQURE ENIX CO., LTD changed its name) SQUARE TAITO ENIX CO., LTD CORPORATION Square Enix q of America Holdings, Inc Square E i S Enix Ltd Square Enix... PICTURES, INC FF.FILM PARTNERS (partnership) BEIJING TAIXIN CULTURAL AMUSEMENT CO., CO LTD TAITO KOREA CORPORATION 17 HUANG LONG CO., LTD SG Lab Inc COMMUNITY ENGINE INC Results Briefing Session FirstFirst-Half of the Fiscal Year ending March 31, 2009 November 7, 2008 7 18 ...Game Arcade Operation YearYear overY -over -year C Comparison of M thl Revenues from Existing Outlets i f Monthly R f E i ti O tl t While outperforming the industry, sales and profit declined in severe business climate 100% owned subsidiary 130% acquisition 120% 110% 100% 90% 80% 70% 2004/4 2005/4 2006/4... Company F Company G Others (April 1, 2008 through September 30, 2008) (Millions of yen) 8,000 Second-Half Operating Income/Loss 7,000 DRAGON QUEST Monster Battleroad (Rental) First-Half O f Operating Income 7,227 First-Half Net Sales 6,000 5,000 5 000 4,863 4 863 4,000 © 2008 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved 3,696 3,000 2,000 1,476 1,000 0 -1,000 LORD of VERMILION (Sales) 2,615 . Results Briefing SessionResults Briefing Session The FirstThe First Half Half of the Fiscal Yearof the Fiscal Year ending March 31, 200 9ending March. CO ., LTD. CORPORATION Results Briefing SessionResults Briefing Session FirstFirst Half of the Fiscal YearHalf of the Fiscal Year ending March 31, 200 9ending March 31, 2009 ending