Square Enix Holdings Consolidated Financial Results: Fiscal Year Ended March 31, 2010

Square Enix achieved substantial financial growth during the fiscal year ended March 31, 2010, characterized by a 41.7 percent increase in net sales to ¥192,257 million and a 130 percent surge in operating income to ¥28,235 million. This performance was primarily fueled by the commercial success of flagship titles such as Final Fantasy XIII and Dragon Quest IX, alongside the strategic integration of Eidos Ltd. into the corporate structure. While net income rose to ¥9,509 million, the company absorbed significant extraordinary losses totaling ¥17,919 million, largely attributed to the accelerated amortization of Taito Corporation goodwill and ongoing business restructuring efforts.

The acquisition of Eidos Ltd. served as a pivotal catalyst for the company’s expansion, significantly broadening its geographic footprint across North America and Europe. This shift is evidenced by the rise in consolidated overseas sales from 16.5 percent to 26.6 percent of total revenue, even as the European segment faced an operating loss during this transition period. Total assets grew by 26.9 percent to ¥270,529 million, supported by the issuance of ¥35,000 million in convertible bonds, which bolstered the company’s capital base for future digital content development.

Looking toward the future, management maintains a focus on global expansion and the evolution of network-based entertainment. Despite the record-setting performance of the 2010 fiscal year, the company has adopted a conservative outlook for 2011, projecting net sales of ¥160,000 million and operating income of ¥20,000 million. By prioritizing high-quality digital content and maintaining a stable dividend policy, the organization aims to navigate the increasingly competitive global gaming landscape while consolidating the gains achieved through its recent international acquisitions.