Square Enix 2011 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2011 Square Enix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

I am grateful to our shareholders for the opportunity to present the Company’s annual report for
the fiscal year ended March 31, 2011.
On a consolidated basis, net sales for the fiscal year ended March 31, 2011 totaled ¥125,271
million (a decrease of 34.8% from the prior fiscal year), operating income amounted to ¥7,325
million (a decrease of 74.1%) and recurring income amounted to ¥5,390 million (a decrease of
80.6%); and a net loss of ¥12,043 million was recorded.
The Company’s operating income ratio stood at 5.8%.
In the fiscal year ended March 31, 2011, latent vulnerabilities surfaced as a result of incomplete
reform. I must apologize that corrective actions stated as nearly complete in prior years were not
sufficient to avoid this situation.
In order to ensure new development going forward, we made a reassessment of the year-
end balance sheet. While these actions resulted in the recording of a net loss, our financial
position continues to be strong, allowing us to set dividends applicable to the fiscal year ended
March 31, 2011 at ¥30.00 per share.
The game industry is under a major transformation. In this environment, our Group is pursuing
a dual operational approach by which we simultaneously protect profit generated from existing
business models while also transforming the framework of our businesses in anticipation of a
new industry ecosystem. For the year under review, I regret that we did not sufficiently achieve
the former of these goals.
Yoichi Wada
President and
Representative Director
To Our Shareholders
02