Square Enix 2005 Annual Report Download - page 19

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Annual Report 2005
Non-Operating Income and Expenses
Years ended March 31 Millions of yen
2004 2005 Change
Non-operating income ¥0,440 ¥0,542 ¥(102
Non-operating expenses 1,590 1,080 (510)
In the previous fiscal year, a foreign exchange loss of ¥788
million, and equity in losses of non-consolidated subsid-
iaries and affiliates of ¥760 million (from the bankruptcy of
equity-method affiliate DigiCube Co., Ltd.) were recorded
as non-operating expenses.
In fiscal 2005, we posted a foreign exchange gain of
¥296 million under non-operating income, and a loss on
write-off of content development account of ¥983 million
under non-operating expenses. Mainly as a result of these
factors, non-operating income increased ¥102 million, to
¥542 million, and non-operating expenses decreased ¥510
million, to ¥1,080 million.
Extraordinary Gain and Loss
Years ended March 31 Millions of yen
2004 2005 Change
Extraordinary gain ¥300 ¥118 ¥(182)
Extraordinary loss 907 443 (464)
As a result in changes in the gain on sales of shares, extra-
ordinary gain decreased ¥182 million, to ¥118 million.
Evaluation loss on shares held in affiliates and loss on
disposal/sales of property and equipment decreased, and
as a result extraordinary loss decreased ¥464 million, to
¥443 million. The goodwill of ¥145 million is the amortiza-
tion of the balance of the three-year equal amortization
goodwill from the planned dissolution in December 2005 of
our original subsidiary in China, SQUARE ENIX WEBSTAR
NETWORK TECHNOLOGY (BEIJING) CO., LTD. (60%
stake), in line with the establishment of our 100% subsidiary
SQUARE ENIX (China) CO., LTD., as our new base in China
and Asia.
Dividends
The Company decided to pay out an annual dividend of
¥60 for the year ended March 31, 2005, including a special
25th anniversary dividend of ¥30, which was approved at
our annual stockholders’ meeting held on June 18, 2005.
Accordingly, the unconsolidated dividend payout ratio for
fiscal 2005 is 48.8%.
Capital Investment and Depreciation
Years ended March 31 Millions of yen
2004 2005 Change
Capital expenditures ¥2,704 ¥1,523 ¥(1,181)
Depreciation 1,974 1,814 (160)
(The above figures for depreciation in the years ended March 31,
2005 do not include the goodwill. Under the goodwill, deprecia-
tion for the dollar-based goodwill of ¥1,236 million, resulting from
the March 2004 purchase of UIEvolution Inc., was recorded. This
period is the first period of depreciation, and depreciation will be
carried out on a straight-line basis over a period of five years.)
Total capital expenditures for fiscal 2005 was ¥1,523 million,
a decrease of ¥1,181 million. This is mainly due to extra cap-
ital expenditures recorded in the previous fiscal year as a
result of our head office moving after the merger.
Overseas Sales
(North America)
Years ended March 31 Millions of yen
2004 2005 Change
¥15,618 ¥12,295 ¥(3,323)
In North America, our online service FINAL FANTASY XI,
which began in the previous fiscal year, made a large con-
tribution to sales. We were unable, however, to release
any million-seller titles in the game industry. Accordingly,
sales in North America decreased ¥3,323 million, to ¥12,295
million.
(Europe)
Years ended March 31 Millions of yen
2004 2005 Change
¥2,121 ¥1,298 ¥(823)
In Europe, we entered the online game and mobile phone
content markets. In September 2004, we started FINAL
FANTASY XI—Chains of Promathia into the online game
market under our own brand at the same time as in the
United States and Japan. However, as in the United States,
we were unable to release any major titles.
Sales in Europe declined ¥823 million, to ¥1,298 million.