Outline of Results Briefing held on November 6, 2012
Thank you for joining the SQUARE ENIX HOLDINGS CO., LTD. Results Briefing Session for the first six-month period ended September 30, 2012 (the “First Six-month Period”).
Today's session will start with a presentation on the financial results of the First Six-Month Period by Yosuke Matsuda, Director and Chief Financial Officer, followed by a presentation by Yoichi Wada, President and Representative Director.
I am Yosuke Matsuda, and I would like to explain the financial results of the First Six-Month Period. Earnings forecasts for the First Six-Month Period and full fiscal year ending March 31, 2013 were revised last week, where results for the First Six-Month Period fell in line with these revisions.
Please see page 1 of the Earnings Release. During the First Six-Month Period, net sales were ¥61,055 million, operating loss was ¥5,240 million, ordinary loss was ¥6,266 million, and net loss was ¥5,480 million.
Please see page 7 of the Earnings Release for details on the reporting segments.
Digital Entertainment segment: net sales were ¥30,749 million, operating loss was ¥2,088 million. Amusement segment: net sales were ¥23,115 million, operating loss was ¥209 million. Publication segment: net sales were ¥5,530 million, operating income was ¥1,227 million. Merchandising segment: net sales were ¥1,673 million, operating income was ¥352 million. Deducting ¥4,521 million as adjustments, total net sales were ¥61,055 million with reported operating loss of ¥5,240 million.
Please refer to Page 5 for the consolidated profit and loss statement.
We report no particular entries under non-operating income and expenses and extraordinary gain and loss for the First Six-Month Period, however, assets in foreign currencies suffered ¥1,025 million in foreign exchange loss. Adding this to the operating loss, we report ¥6,266 million in ordinary loss.
Please refer to page 3 for the consolidated balance sheet.
Under the Assets, content production account increased more than ¥1,000 million to ¥26.4 billion, which is within the range of normal fluctuations. Property and equipment under non-current assets increased approximately ¥4 billion for equipment attached to buildings that were associated with our recent office relocation.
Cash and deposits were ¥95,136 million, a decrease from the balance as of March 31, 2012 due to tax and dividend payouts.
There are no major variables in liabilities, as seen on page 4.
Asset retirement obligations (accounted into non-current liabilities) increased at approximately ¥650 million in relation to our recent relocation.
Going back to page 1, as announced last week, consolidated forecasts have been revised to ¥150,000 million in net sales, ¥7,500 million in operating income, ¥6,500 million in ordinary income, and ¥3,500 million in net income.
The board of directors passed a resolution to pay out interim dividends at 10 yen per share. Projections for year-end dividends are unchanged from 20 yen per share.
The plans, forecasts, strategies and ideas described in this material are descriptions of forecasts of future results. These descriptions rely on information available as of the date of production of this material and are based on assumptions and judgment made by the Company’s management. Readers are advised not to rely solely on these forecasts. Readers should also not assume that these forecasts are accurate or valid information, even after the date of public release. There are many factors that may cause actual results to vary considerably from the forecasts, and in some cases actual results may be inferior to forecasts.
The information on the future forecasts described in this material is current as of November 6, 2012. The company is not obliged to update or correct forecasts concerning the Company’s future results, including forecasts or outlook, if new information becomes available and/or events occur after November 6, 2012.