Square Enix Holdings Co., Ltd. Reference Materials: Three Month Period Ended June 30, 2011

Square Enix Holdings Co., Ltd. experienced a significant decline in financial performance during the first quarter of the fiscal year ending March 31, 2012. For the three-month period ending June 30, 2011, consolidated net sales fell to 24.5 billion yen, representing a notable decrease from the 32.5 billion yen recorded during the same period in the previous year. Operating income similarly contracted from 5.4 billion yen to 2.2 billion yen, while net income dropped to 690 million yen, down from 1.8 billion yen in the prior year’s first quarter.

The company’s business segments exhibited varying levels of profitability during this period. The Digital Entertainment segment, which serves as the core revenue driver, generated 11.8 billion yen in net sales with an operating margin of 24.0 percent. Other segments, including Amusement, Publication, and Merchandising, contributed 8.9 billion, 7.2 billion, and 6.0 billion yen in sales, respectively. Despite the challenging start to the fiscal year, management maintains a positive outlook for the full year, projecting total net sales of 130 billion yen and an operating income of 10 billion yen.

These financial results are prepared in accordance with Japanese generally accepted accounting principles. Future performance remains subject to various risks, including fluctuations in currency exchange rates, evolving consumer preferences, and the company’s ability to successfully navigate highly competitive global markets. To support its full-year objectives, the company has outlined a strategic release schedule for the remainder of the fiscal year, featuring key titles such as Deus Ex: Human Revolution, Final Fantasy XIII-2, and various entries in the Dragon Quest franchise across multiple platforms.