CEO Interview
Results for fiscal year ended March 31, 2010

May 28, 2010

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With big title releases in the year including the latest installments of the DRAGON QUEST and FINAL FANTASY series as well as Batman: Arkham Asylum, the fiscal year ended March 2010 saw record game software shipments of 26.66 million units as well as record earnings for Square Enix Holdings Co., Ltd. However, Yoichi Wada, President of the company leading the Square Enix group (the “Group”), points out that looking back at the past seven years of recurring income, the Group is still fighting to emerge from its second growth stage. He emphasizes, “The next three years are the true test.” Following the earnings announcement, Wada describes the Group’s three pillars of true globalization, becoming network-centric and the strengthening of internal IPs as a means of entering the third stage with a goal of recurring income of 40 billion yen (±10 billion yen).

Consolidated Financial Results
Recorded the highest consolidated earnings in the company’s history since merger; including record game software shipments worldwide

The fiscal year ended March 2010 saw big title releases and record earnings.

Wada

The Group achieved record results including consolidated sales of 192.2 billion yen, operating income of 28.2 billion yen and recurring income of 27.8 billion yen. In the game industry which has more than a few trouble spots at the moment, I think we performed well. In our Games business, releases including DRAGON QUEST IX: SENTINELS OF THE STARRY SKIES (DRAGON QUEST IX), FINAL FANTASY XIII (FFXIII), Batman: Arkham Asylum and others, contributed to record worldwide shipments of 26.66 million units. We are also pleased with achieving more balanced sales among our major regions of Japan, North America and Europe.

In your Games business, you seem to be making consistent progress in globalization.

Wada

FINAL FANTASY XIII

Released during the fiscal year ended March 2010, FFXIII sales of 1.85 million in Japan, 1.79 million in North America and 1.77 million in Europe, which is an improved global balance of sales. I also think we benefited from the shortened time lag we were able to achieve in the global rollout. Naturally, it’s still our goal to achieve simultaneous global launches and something we will continue to work on going forward.

How did you achieve this significant shortening of time lag in global rollouts?

Wada
Amid a harshly competitive environment, in around 2003 I started to feel that our development structure may not keep competitiveness in future and began urging development teams to make changes. Prior to the changes, title schedules were in ever increasing disarray as planned launch dates approached. But our changes helped make the last year of FFXIII before launch an extremely efficient development process. As a key part of our global strategy, bringing former Eidos into our Group in April of 2010 also has been a big, positive stimulus from a development perspective.
As for other titles, DRAGON QUEST IX sold 4.26 million units in Japan - the highest in the series so far. KINGDOM HEARTS 358/2 Days become a hit selling 1.49 million units globally. And, with Batman: Arkham Asylum from former Eidos selling 3.24 million units, we had several million sellers contributing to sales in Games increasing 128.4% to 109.9 billion yen and operating income growth of 254% to reach 23.8 billion yen.

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