C o r p o r a t e P h i l o s o p h y To spread happiness across the globe by providing unforgettable experiences This philosophy represents our company’s mission and the beliefs for which we stand. Each of our customers has his or her own definition of happiness. Square Enix Group provides high-quality content, services, and products to help those customers create their own wonderful, unforgettable experiences, thereby allowing them to discover a happiness all their own. M a n a g e m e n t G u i d e l i n e s These guidelines reflect the foundation of principles upon which our corporate philosophy stands, and serve as a standard of value for the Group and its members. We shall strive to achieve our corporate goals while closely considering the following: 1. Professionalism We shall exhibit a high degree of professionalism, ensuring optimum results in the workplace. We shall display initiative, make continued efforts to further develop our expertise, and remain sincere and steadfast in the pursuit of our goals, while ultimately aspiring to forge a corporate culture disciplined by the pride we hold in our work. 2. Creativity and Innovation To attain and maintain new standards of value, there are questions we must ask ourselves: Is this creative? Is this innovative? Mediocre dedication can only result in mediocre achievements. Simply being content with the status quo can only lead to a collapse into oblivion. To prevent this from occurring and to avoid complacency, we must continue asking ourselves the aforementioned questions.

s creative? Is this innovative? Mediocre dedication can only result in mediocre achievements. Simply being content with the status quo can only lead to a collapse into oblivion. To prevent this from occurring and to avoid complacency, we must continue asking ourselves the aforementioned questions. 3. Harmony Everything in the world interacts to form a massive system. Nothing can stand alone. Everything functions with an inevitable accord to reason. It is vital to gain a proper understanding of the constantly changing tides, and to take advantage of these variations instead of struggling against them. We shall continue to work towards harmony and serve as an integral part of this ever-fluctuating system. In order to achieve ideal performance levels, we as individuals, shall aim for a mutual respect amongst our coworkers, remain conscious of the duties assigned us, and place an emphasis on teamwork. As a corporate organization, we shall work diligently to maintain an optimal balance culminating in the ultimate satisfaction of all our stakeholders, including customers, shareholders, counterparties, and employees. As a business entity, we shall contemplate what functions we are to perform within the realm of industry, while acting in a manner that ensures the mutual harmony and benefit of all parties within it. Finally, as a member of society, we shall comply with laws and regulation while fulfilling our civic obligations, including community involvement and environmental conservation.

in the realm of industry, while acting in a manner that ensures the mutual harmony and benefit of all parties within it. Finally, as a member of society, we shall comply with laws and regulation while fulfilling our civic obligations, including community involvement and environmental conservation. CONTENTS Disclaimer Regarding Forward-Looking Statements Statements in this annual report with respect to the current plans, estimates, strategy, and beliefs of SQUARE 01 Financial Highlights ENIX HOLDINGS CO., LTD., and consolidated subsidiaries [collectively ”SQUARE ENIX HOLDINGS”] include both 02 To Our Shareholders historical facts and forward-looking statements concerning the future performance of SQUARE ENIX HOLDINGS. Such information is based on management’s assumptions and beliefs in light of the information currently 08 Review of Operations available and, therefore, involve risks and uncertainties. Actual results may differ materially from those anticipated 12 Corporate Governance in these statements due to the influence of a number of important factors. Such factors include but are not limited to: [1] general economic conditions in Japan and foreign countries, 14 Directors‚ Auditors and Executive Officers in particular levels of consumer spending; [2] fluctuations in exchange rates, in particular the exchange rate of the Japanese yen in relation to the U.S.

rs include but are not limited to: [1] general economic conditions in Japan and foreign countries, 14 Directors‚ Auditors and Executive Officers in particular levels of consumer spending; [2] fluctuations in exchange rates, in particular the exchange rate of the Japanese yen in relation to the U.S. dollar, the euro and others, which SQUARE ENIX HOLDINGS uses 15 Financial Section extensively in its overseas business; [3] the continuous introduction of new products, and rapid technical 55 Corporate Data innovation in the digital entertainment industry; and [4] SQUARE ENIX HOLDINGS’s ability to continue developing products and services accepted by consumers in the intensely competitive market, which is heavily influenced by 57 Investor Information subjective and quickly changing consumer preferences.

> **[Chart page]** This page contains visual data — view in PDF for the best experience. F i n a n c i a l H i g h l i g h t s SQUARE ENIX HOLDINGS CO.‚ LTD. and Consolidated Subsidiaries Years Ended March 31 Thousand of Millions of Yen U.S. Dollars 2005 2006 2007 2008 2009 2009 For the Year Net sales ¥ 73,864 ¥ 124,473 ¥ 163,472 ¥ 147,516 ¥ 135,693 $ 1,381,387 Operating income 26,438 15,470 25,916 21,520 12,277 124,991 Net income 14,932 17,076 11,619 9,196 6,333 64,477 At year-end Total assets ¥131,695 ¥ 213,348 ¥ 215,679 ¥ 212,134 ¥ 213,194 $ 2,170,360 Total equity 108,933 120,993 129,461 147,034 147,318 1,499,728 Yen U.S. Dollars Per Share of Common Stock Net income ¥ 135.63 ¥ 154.65 ¥ 105.06 ¥ 81.85 ¥ 55.11 $ 0.56 Total equity 988.19 1,094.50 1,168.91 1,280.50 1,280.92 13.04 % Key Ratios Operating income margin 35.8% 12.4% 15.9% 14.6% 9.0% Return on equity 14.5 14.9 9.3 6.7 4.3 Equity ratio 82.7 56.7 60.0 69.3 69.1 Notes: 1. For the convenience of readers, amounts in U.S. dollars have been translated using the currency exchange rates at March 31, 2009 of ¥98.23=US$1. 2. Total equity = Common stock + Capital surplus + Retained earnings + Treasury stock + Valuation and translation adjustments Operating Income Margin (%) Return on Equity (%) 50 25 40 20 30 15 20 10 10 5 0 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009

To O u r S h a r e h o l d e r s I am grateful to our shareholders for the opportunity to present the Company’s annual report for the fiscal year ended March 31, 2009. In the fiscal year under review, on a consolidated basis, net sales decreased 8.0% compared with the previous fiscal year, to ¥135,693 million. Operating income declined 42.9% to ¥12,277 million, and recurring income decreased 40.3% to ¥11,261 million. Net income amounted to ¥6,333 million, a 31.1% decline compared with the previous fiscal year. As a result, the recurring income margin was 8.3%, and return on equity (ROE) stood at 4.3%. We set dividends applicable to the fiscal year ended March 31, 2009, at ¥30.00 per share, resulting in a consolidated payout ratio of 54.4%. In light of the very high payout ratio, I would like to provide additional clarification. The Company’s dividend policy is to maintain an optimal balance between performance-linked payouts and stable returns to shareholders. In line with this policy, we have stated that our benchmark for the payout ratio is approximately 30%. Underpinning this is our belief that the Company should generate sustained growth and we define the key measurement for this as growth in dividends per share.