Corporate Strategy Meeting (Eidos Integration)
Corporate Strategy Meeting (Eidos Integration)
April 22, 2009
1 SQUARE ENIX HOLDINGS CO., LTD. Statements made in this document with respect to SQUARE ENIX HOLDINGS CO., LTD. and its consolidated subsidiaries' (together, “SQUARE ENIX GROUP") plans, estimates, strategies and beliefs are forward-looking statements about the future performance of SQUARE ENIX GROUP. These st at ement s are b ased on management' s assumpti ons and b eli ef s i n li ght of i nf ormati on avail abl e t o it at th e time these material were drafted and, therefore, the reader should not place undue reliance on them. Also, the reader should not assume that statements made in this document will remain accurate or operative at a later time. A number of factors could cause actual results to be materially different from and worse than those discussed in forward-looking statements . Such factors include , but not limited to: 1. changes in economic conditions affecting our operations; 2. fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro; 3. SQQyppUARE ENIX GROUP’s ability to continue to win acceptance of our products and services, which are offered in highly competitive markets characterized by the continuous introduction of new products and services, rapid developments in technology, and subjective and changing consumer preferences; 4. SQUARE ENIX GROUP’s ability to expand international success with a focus on our businesses; and 5. regulatory developments and changes and our ability to respond and adapt to those changes.
The forward-looking statements regarding earnings contained in these materials were valid at the time these materials were drafted. SQUARE ENIX GROUP assumes no obligation to update or revise any forward-looking statements, inclu ding forecasts or projections , w hether as a resu lt of new information , s ubseq uent e vents or other wise . The financial information presented in this document is prepared according to generally accepted accounting principles in Japan.
2 SQUARE ENIX HOLDINGS CO., LTD. Profile of Eidos
Company Name Eidos plc
Incorporation November 1995 (Eidos Interactive was incorporated in 1990) Location of Headquarters United Kingdom (Wimbledon) Development and publishing of interactive Principal Business entertainment Fiscal Year-end June 30 (to be changed to March 31)
Tomb Raider, Hitman, Kane & Lynch, Major IPs Deus Ex, etc.
Crystal Dynamics (U.S.), Key Studios IO Interactive (Denmark), Eidos Montreal (Canada), etc.
3 SQUARE ENIX HOLDINGS CO., LTD. Eidos Financial Highlights (Million £) 200 179
150 129 119 100
50 8 0
-50 -30 One-time Net Revenue -88 -100 restructuring charges Pre-tax Profit -150 -136 Average 06年6月期 07年6月期 08年6月期 Headcounts 900 867 1,080 834 （Most Recent） FY2006 FY2007 FY2008
4 SQUARE ENIX HOLDINGS CO., LTD. Eidos Historical Stock Price
GBP JPY Equivalent 606.0 1, 200 GBP 5.0 JPY 1,000
4.0 800
3.0 600
2.0 400
1.0 200
32p 0.0 0 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 月 9 1 2 3 4 5 6 7 8 9 1 2 3 4 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 10 11 12 10 11 12 10 11 12 10 11 12 年 年 年 年 年 年 年 年 年 年 年 年 年 年 年 年 年 2005年 年 年 年 年 年 年 年 2006年 年 年 年 年 年 年 年 年 2007年 年 年 2008 2009 年 年 年 年 年 年 年 年 年 年 年 年 07 07 07 08 08 08 05 05 05 06 06 06 007 008 008 008 008 008 008 008 008 008 009 009 009 009 005 005 005 005 005 005 006 006 006 006 006 006 006 006 006 007 007 007 007 007 007 007 007 00 00 00 00 00 00 00 00 00 00 00 00 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 2 2 2 2 2 2 2 2 2 2 2 2 Source: Bloomberg
5 SQUARE ENIX HOLDINGS CO., LTD. Summary of the Transaction
Transaction Method Scheme of Arrangement
Effective Date April 22, 2009
Offer Price 32 pence per share
Number of Shares 263,586,730 Outstanding Total Value of Approx. £84.3 million (JPY 12.1 billion) Outstanding Shares
Financing Internal Cash
Post-acquisition 100% Ownership
Exchange rate used for conversion: £1 = JPY144
6 SQUARE ENIX HOLDINGS CO., LTD. Square Enix Group
Square Enix Holdings
Square Enix Group Taito Group Eidos Group
JPY78.4 billion JPY69.1 billion JPY17.1 billion (£119 million） (Net Revenue, FY08) (Net Revenue, FY08) (Net Revenue, FY08)
2,139 FTEs 937 FTEs 834 FTEs
Number of FTEs for Square Enix Group and Taito Group are as of December 2008, £1 = JPY144
7 SQUARE ENIX HOLDINGS CO., LTD. CustoCustomermer ProfileProfile to IIdentifydentify
1) B enefit f rom various chihoices of access
Customer
Devices/Media
Content/Services
8 SQUARE ENIX HOLDINGS CO., LTD. CustoCustomermer ProfileProfile to IIdentifydentify
2) Have mu ltipl e personaliti es
Customer
Devices/Media
Content/Services
9 SQUARE ENIX HOLDINGS CO., LTD. CustoCustomermer ProfileProfile to IIdentifydentify
3) C ommun ity-oritdiented
Customer
Devices/Media
Content/Services
10 SQUARE ENIX HOLDINGS CO., LTD. Essence of Entertainment Business
② Customer
Devices/Media
① Content/Services VlValue
11 SQUARE ENIX HOLDINGS CO., LTD. Essence of Entertainment Business
② Customer Monetization ① Devices/Media
Content/Services
12 SQUARE ENIX HOLDINGS CO., LTD. Critical Success Factors of Entertainment Business
1. Brand Value
2. Various Interfaces with Customers
- Deliver content conforming to various devices/media - Promote specialties in various business segments - Expand operations globally 3. Community Management Skills
13 SQUARE ENIX HOLDINGS CO., LTD. Enhanced Portfolio of Quality Franchises Square Enix
Final F antasy > 85 m illion uni ts Dragon Quest > 47 million units Kingdom Hearts > 12 million units
Eidos Tomb Raider > 30 million units Hitman > 8 million units
14 SQUARE ENIX HOLDINGS CO., LTD. TrTrackack RRecordecord ooff EiEidosdos FrFranchisesanchises (11))
Tomb Raider
Tomb Raider 1996
Tomb Raider II 1997
Tomb Raider III 1998
Tomb Raider : The Last Revelation 1999
Tomb Raider Chronicles 2000
Tomb Raider : The Angel of Darkness 2003
Tomb Raider : Legend 2006
Tomb Raider Anniversary 2007
Tomb Raider : Underworld 2008
0 2 4 6 8 Million Units
15 SQUARE ENIX HOLDINGS CO., LTD. TrTrackack RRecordecord ooff EiEidosdos FrFranchisesanchises ((2)2)
Hitman Kane & Lynch
Kane & Lynch : Dead Men 2007 Million Units Hitman : Codename 47 2000 0 1 2 3 4 Hitman2 : Silent Assassin 2002 Deus Ex Hitman : Contacts 2004
Deus EX 2000 Hitman : Blood Money 2006 Million Units 2003 Deus EX : Invisible War Million Units 01234 0 1 2 3 4 Just Cause
Just Cause 2006 Million Units
01234
16 SQUARE ENIX HOLDINGS CO., LTD. Worldwide Organizations (Pre-acquisition)
Taito Korea Corp. Square Enix Ltd.
Square Enix Holdings Co., Ltd. Square Enix Co., Ltd. Taito Corporation Square Enix, Inc.
Square Enix (China) Co., Ltd. Beijing Taxin Cultural Amusement Co., Ltd
HQ, Sales, Operations Development studios
17 SQUARE ENIX HOLDINGS CO., LTD. Worldwide Organizations (Post-acquisition)
IO Interactive (Denmark) Hamburg sales office (Germany) Crystal Dynamics, Square Enix Ltd. (UK) Taito Korea Corp. Redwood Shores sales office Eidos Creative Software (Korea) (USA) (China) Square Enix Holdings Co., Ltd. Eidos Hungary Square Enix Co., Ltd. Eidos Montreal (Canada) Taito Corp. (Japan) Paris sales office Square Enix, Inc. (France) (USA ) Square Enix (China) Co., Ltd. Beijing Taxin Cultural Amusement Co., Ltd (China) Eidos, Eidos Interactive, Beautiful Game Studio, Eidos Games Studios, Rocksteady Studios (()UK)
HQ, Sales, Operations Development Studios
18 SQUARE ENIX HOLDINGS CO., LTD. Strategic Significance of Eidos Integration
1. Successful completion of Square Enix G’fi“Mhi”Group’s first “Metamorphosis” - From “Mono” to “Multi”
2. Direct synergies to be expected - Multi-use of Eidos content - Economies of scale in sales/marketing - Shared technologies and functions - Establishment of global business infrastructure
19 SQUARE ENIX HOLDINGS CO., LTD. Corporate Strategy Meeting (Eidos Integration)
April 22, 2009
20 SQUARE ENIX HOLDINGS CO., LTD.