CEO Interview
Results for fiscal year ended March 31, 2010

May 28, 2010

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Business plan for current fiscal year
Goal to enter the next stage of growth, coming 3 years are critical

How about your other business segments?

Wada

In our Publication segment, we are continuing to make TV animation programs based on our comics that create a virtuous circle of hits and sales growth. On top of this, game strategy guides based on hits like DRAGON QUEST IX and others, also helped contribute to our record operating income of 4.1 billion yen.
Both our Mobile Phone Content segment and our Merchandising segment, in which we plan, produce, distribute and license derivative products, have maintained profitability, and performed well during the fiscal year, with operating income increasing 8.1% to 4.6 billion yen and 124.2% to 1.8 billion yen, respectively.
While our Amusement segment continues to face a difficult operating environment, we took strategic arcade facility development measures, include the opening of a flagship site of “Taito Station” in Yokohama. Going forward, we are encouraged by our plans to stimulate the market with our arcade operation and arcade machine development.

Results and Projections by Business Segment / Financial Results and Projections

Your forecasts for the year ending March 31, 2010 appear conservative.

Wada

We have made consolidated forecasts including sales of 160 billion yen, operating income of 20 billion yen and recurring income of 20 billion yen. Yes, we achieved record profit last fiscal year, however, since our merger seven years ago, we have stayed in our second stage of growth with average recurring income of 20.6 billion yen. We have a great deal of actions that must be taken before we can enter the third stage characterized by recurring income of 40 billion yen (±10 billion yen). And for this, the next three years are the true test.
In our core business of Games, we have announced a forecast of 24 million units of game software sales globally. In this forecast, Japan accounts for 25%, while North America and Europe each comprise 37.5%. This marks the increased importance of our sales in overseas markets in accordance with the market size and a real test of our efforts in the implementation of our global strategy.
In the fiscal year starting April 2010, we are already off to a good start with shipments of DRAGON QUEST MONSTERS: Joker 2 exceeding 1 million units and simultaneous global launches planned for Kane & Lynch 2: Dog Days, FINAL FANTASY XIV and FRONT MISSION EVOLVED.

There are high expectations for FINAL FANTASY XIV, your second FINAL FANTASY MMORPG following FINAL FANTASY XI launched in 2002.

Wada
We began alpha testing in April. In this game, we’ve added more ways to enjoy the game as an individual player. There had been a great deal of time used in waiting for your friends and other players in the online game. Further, as part of our global strategy, we plan to make Japanese, English, German and French versions available simultaneously.

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