Investor Relations

Outline of Results Briefing by SQUARE ENIX HOLDINGS held on May 14, 2012

Outline of Results Briefing by SQUARE ENIX HOLDINGS held on May 14, 2012
(Continued from previous page.)*

We will not disclose the breakdown of the operating profit. Our current organization is structured with a focus on HD games. The organization and mission statements will need to be changed according to the evolving businesses, implicating that revenue/cost allocation under managerial accounting need to be changed as well. If we change the organizational structure, revenue/cost allocation under managerial accounting will change, and operating profit will also change. We feel that it would be misleading to disclose the operating profit at this time.


I will go over each one briefly.

In social gaming, the number of cumulative registered users is increasing. It is not always the case that registered users is important as each game has different KPI. Indicators such as number of users incoming per month, number of users leaving per month, number of users staying, and how many of those who stay are active and the frequency of those who purchase items within the game are important. These KPIs will become the source of competitiveness advantage. The titles presented on this slide were developed by different teams. A number of different types of games will continuously be released going forward.


Next I will speak about HD games.
Full download has been increasing in number, however, is not reflected on this slide. PDLC is also not included in here. As such, this slide does not give an accurate reference but as we receive a number of requests for this information, we have decided to include this in our slide presentation.
What is important at the end is whether hundreds of thousands of or even millions of customers are active within the Square Enix Group, and how it is growing in size. The rest is left to a simple multiplication of the number of paying users and the amount they are spending.
The reason why the North American and the European territories show higher unit sales is due to large title releases of Tomb Raider and Hitman in the current fiscal year.