Square Enix 2009 Annual Report Download - page 52

• Year ended March 31, 2008
Net income per share:
Net income (millions of yen) ¥9,196
Income not available to common
shareholders (millions of yen) —
Income available to common
shareholders (millions of yen) 9,196
Average number of shares of common stock
outstanding during the fiscal year
(thousands of shares) 112,357
Adjustments to net income used to calculate diluted
net income per share:
Adjustments to net income (millions of yen) —
Increase in the number of shares of common
stock (thousands of shares) 605
(number of shares reserved for the purpose
of new share issuances for exercise of share
subscription rights) (605)
Summary of residual securities that do not dilute the Company’s
earnings per share:
The issuance of stock options was approved by the Board of
Directors on November 19, 2007, and bonds with warrants were
issued based on a resolution approved by the Board of Directors
on November 9, 2005.
An overview of the stock option plan is provided in “4. Status
of Parent Company, 1. Status of Shares, etc., (2) Status of
stock options, etc.”
• Year ended March 31, 2009
Net income per share:
Net income (millions of yen) ¥6,333
Income not available to common
shareholders (millions of yen) —
Income available to common
shareholders (millions of yen) 6,333
Average number of shares of common stock
outstanding during the fiscal year
(thousands of shares) 114,936
Adjustments to net income used to calculate diluted
net income per share:
Adjustments to net income (millions of yen) —
Increase in the number of shares of common
stock (thousands of shares) 250
(number of shares reserved for the purpose
of new share issuances for exercise of share
subscription rights) (250)
Summary of residual securities that do not dilute the Company’s
earnings per share:
The issuance of stock options was approved by the Board of
Directors on November 19, 2007, and on July 31, 2008. The
issuance of bonds with warrants were issued based on a resolution
approved by Board of Directors on November 9, 2005.
An overview of the stock option plan is provided in “4. Status
of Parent Company, 1. Status of Shares, etc., (2) Status of
stock options, etc.”
Significant Subsequent Events
• Year ended March 31, 2008
Implementation of a Pure Holding Company Structure by Means of
a Company Split
On May 23, 2008, a meeting of the Board of Directors approved a
resolution under which the Company will move to a pure holding
company structure by means of an incorporation-type company split
effective October 1, 2008. Under this plan, a newly established
wholly owned subsidiary will assume the operations of the Company’s
business effective October 1, 2008. Accompanying this move to a
holding company structure, effective October 1, 2008, the Company’s
Articles of Incorporation will be partially revised and the company’s
name is planned to be changed to SQUARE ENIX HOLDINGS CO., LTD.
The Board of Directors’ resolution referred to above also determined
that the Company’s purpose will be changed to that of a pure holding
company. The Company plans to maintain the listing of its stock on
the First Section of the Tokyo Stock Exchange as a holding company.
(1) Purpose of the company split
The Company believes that it is crucial to maintain profitability and
achieve medium- to long-term growth through the provision of high-
quality, sophisticated content and services. However, in recent
years, as information technology (IT) and telecommunications
technology and infrastructure have rapidly developed and seen
widespread adoption, customer preferences have become greatly
diversified and the speed of technical innovation has accelerated.
In such a business environment, the Company has determined to
pursue a strategy of moving to a pure holding company structure.
As well as aiming to clarify the profitability of each business and the
accountability structure, this move is seen as crucial to facilitating
Group management that can flexibly engage in strategic business
alliances, including capital alliances with other companies.
(2) Outline of the company split
1. Schedule for the split
Record date for the Ordinary General Meeting of Shareholders
March 31, 2008
Meeting of the Board of Directors to pass a resolution for the
move to a pure holding company structure
April 25, 2008
Meeting of the Board of Directors to pass a resolution for
implementation of the company split
May 23, 2008
Annual General Meeting of Shareholders in which a resolution
for the company split is to be approved
June 21, 2008
Effective date of the company split
October 1, 2008 (scheduled)
Notes to Consolidated Financial Statements (JPNGAAP)
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