Corporate Philosophy
To spread happiness across the globe by providing unforgettable experiences
This philosophy represents our company’s mission and the beliefs for which we stand.

Each of our customers has his or her own definition of happiness.
The Square Enix Group provides high-quality content, services, and products to help those customers create their own wonderful, unforgettable experiences, thereby allowing them to discover a happiness all their own.

Management Guidelines
In working to make our Corporate Philosophy a reality, we will manage our Group with the following policies as our key guidelines.

1. We will strive to be a company that delivers unparalleled entertainment.
Through our games, amusement offerings, publications, merchandising, and other contents and services, we will be steadfast in our efforts to deliver unparalleled entertainment to our customers.

2. We will value innovation and creativity.
By giving rise to new expressions and ideas and creating experiences like none ever encountered before, we will deliver contents and services that surpassthe expectations of our customers. We believe that it is in our unrelenting efforts to this end that our existential value and the value of our brand lie.

3. We will respond with sensitivity and flexibility to environmental changes.
We are surrounded by an environment that is ever changing. We will stay attuned to those changes and be flexible in adapting the nature and format of ourcontents and services as well as our business models accordingly. In addition, we will stay at the forefront of change so that we can provide our customers
with excitement and fun.

4. We will create a corporate culture that is both collaborative and competitive.
Our contents and services are born of teamwork and could never be created without the concerted efforts of a team that is fully united. At the same time, it
is important that we engage in collegial competition in order to inspire one another to greater heights. We will foster a corporate culture that promotes suchcompetitive collaboration.

CONTENTS
01 Financial Highlights
02 A Message to Our Shareholders
11 Review of Operations
15 Special Feature: DELIVERING UNFORGETTABLE EXPERIENCES
24 Environment, Social and Governance
40 Executive Members
42 Words from Our New Directors
44 History
45 Corporate Data
46 Investor Information
With respect to this annual report, the financial section
will be provided at the link below.
https://www.hd.square-enix.com/eng/ir/library/ar.html

Disclaimer Regarding Forward-Looking Statements
Statements in this annual report with respect to the current plans, estimates, strategy,
and beliefs of SQUARE ENIX HOLDINGS CO., LTD., and consolidated subsidiaries[collectively “SQUARE ENIX HOLDINGS”] include both historical facts and forwardlooking statements concerning the future performance of SQUARE ENIX HOLDINGS.
Such information is based on management’s assumptions and beliefs in light of
the information currently available and, therefore, involve risks and uncertainties.
Actual results may differ materially from those anticipated in these statements due tothe influence of a number of important factors.
Such factors include but are not limited to: [1] general economic conditions inJapan and foreign countries, in particular levels of consumer spending; [2] fluctuations in
exchange rates, in particular the exchange rate of the Japanese yen in relation to the
U.S. dollar, the euro and others, which SQUARE ENIX HOLDINGS uses extensively in its
overseas business; [3] the continuous introduction of new products and rapid
technical innovation in the digital entertainment industry as well as SQUARE ENIXHOLDINGS’s ability to continue developing products and services accepted byconsumers in the intensely competitive market, which is heavily influenced by subjective
and quickly changing consumer preferences.

© 2022 Luminous Productions Co., Ltd. All Rights Reserved.

Financial Highlights
SQUARE ENIX HOLDINGS CO., LTD. and Consolidated Subsidiaries
Fiscal Years ended March 31

Millions of yen

Thousands of
U.S. dollars

2018

2019

2020

2021

2022

2022

¥ 250,394¥ 271,276¥ 260,527¥ 332,532¥ 365,275$2,984,518

Operating income

38,176

24,63532,75947,22659,261

484,202

Ordinary income

36,12428,41532,09549,98370,704

577,697

Profit attributable to owners of parent

25,821

19,373

21,346

26,94251,013416,811¥ 259,713¥ 282,614¥ 302,634¥ 336,144¥ 380,902$3,112,203

193,359

206,445

221,928

243,278

284,429

2,323,962

Yen

U.S. dollars

For the YearNet sales

At Year-end
Total assets
Total net assets

Per Share of Common Stock
Earnings¥ 215.33¥ 162.57¥ 179.02¥ 225.75¥ 426.82

1,617.58

1,726.32

1,854.10

2,029.69

2,370.48

Total net assets

$

3.49
19.37

%

Key Ratios
Operating income margin

15.2%

9.1%

12.6%

14.2%

16.2%

Ordinary income margin

14.4

10.5

12.3

15.0

19.4

Return on equity

13.8

9.7

10.0

11.6

19.4

Equity ratio

74.2

72.8

73.1

72.1

74.4

Note: For the convenience of readers, amounts in U.S. dollars have been translated using the currency exchange rate at March 31, 2022 of ¥122.39=US$1.

Operating Income Margin/Ordinary Income Margin (%)

Return on Equity (%)

25

25

20

20

15

15

10

10

5

5

0

2018
Operating Income Margin

2019

2020

2021

2022

0

2018

2019

2020

2021

2022

Ordinary Income Margin

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

01

A Message to Our Shareholders

Thank you for your continued support of
the Square Enix Group.
Yosuke Matsuda
President and Representative Director

02

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

I am pleased to report that the Group set new records for2021. However, “OUTRIDERS,” which was released in April 2021,

full-year net sales (¥365.2 billion) and all its profit linesachieved a global player base in excess of 3.5 million in its first(operating income of ¥59.2 billion, ordinary income of ¥70.7

month, becoming a new looter shooter entry in our Group’s librarybillion, and profit attributable to owners of parent of ¥51 billion)of game IP. In addition, “NieR Replicant ver.1.22474487139…”in the fiscal year ended March 2022, which was the first year ofoffered a new way to experience the origins of the NieR franchise.

the Medium-Term Earnings Targets and Business Strategy that

Players whose first contact with the NieR series had been thewe unveiled in May 2021.

long-selling title “NieR:Automata” thereby gained a richer
enjoyment of the NieR universe, and “NieR Replicant

Digital Entertainmentver.1.22474487139…” also captured the interest of new
customers, thus bringing renewed vitality to the franchise.

The High-Definition (HD) Games sub-segment struggled, in partdue to the challenging year-on-year comparison created by therelease of multiple major titles in the fiscal year ended March

The Massively Multiplayer Online (MMO) game sub-segment
released expansion packs for “FINAL FANTASY XIV” andOUTRIDERS

NieR Replicant ver.1.22474487139...

OUTRIDERS © 2021 Square Enix Limited. All rights reserved. Developed by PCF Group S.A.
SQUARE ENIX and the SQUARE ENIX logo are registered trademarks or trademarks of Square
Enix Holdings Co., Ltd. OUTRIDERS is a registered trademark or trademark of Square Enix Ltd.
People Can Fly and the People Can Fly logo are registered trademarks of PCF Group S.A.

© 2010, 2021 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by Toylogic Inc.

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

03

A Message to Our Shareholders

FINAL FANTASY XIVDRAGON QUEST X ONLINE© 2010 - 2022 SQUARE ENIX CO., LTD. All Rights Reserved.

© 2012-2022 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX
All Rights Reserved.

“DRAGON QUEST X Online.” “FINAL FANTASY XIV: Endwalker” wasour existing titles have reached maturity and offered limited

received with especially great excitement by fans around theupside and because the new titles that we launched in the fiscal

world who had been waiting for a sequel. The expansion pack notyear ended March 2022 did not perform to the levels that we had

only boosted “FINAL FANTASY XIV” to the status of the world’s top

anticipated at the outset. “DRAGON QUEST WALK” and multiple

MMO games in every sense of the word, but also made a massiveother key titles continue to deliver solid performances, but incontribution to our Group’s business. We remain devoted to ourorder to return the sub-segment to a growth trajectory byengagement with these passionate fans and will continue to strive

generating new hit titles, we are going to start developing anfor even higher heights in our operation of the game.

organizational structure that helps enhance our development
capabilities, while also working to bolster our profitability, in part

The Games for Smart Devices/PC Browsers sub-segment
underperformed our initial expectations, largely because many of04

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

by revisiting our lineup of titles.

Amusement

moderating as the segment enters a phase of stable growth.
Against this backdrop, the fourth quarter of the fiscal year ended

Conditions in the Amusement segment remain uncertain, given

March 2022 saw a major hit from “My Dress-Up Darling.” In

the continued impact of COVID-19. However, our arcade

addition, building on the positive reception of many customers inoperations are showing gradual signs of recovery. Arcade traffic

Japan, the segment began rolling out the “MANGA UP!” app to thehas picked up since the lifting of Japan’s state of emergency

wider world with the launch of a global version in July 2022. We

declaration and some of its other preventative measures.

will strive for further growth not only by continuing to generate theMoreover, the segment’s efforts to make its arcades moresort of content that our customers want, but also by focusing on

attractive have proven successful. These have included rolling out

cultivating the market in order to deliver that content to more andnew prize offerings based on assessments of visitors’ interests.

more customers.

The result of such initiatives has been steady improvement in the
momentum of the business as a whole. We expect to see upside

Merchandising

for the segment as the pandemic winds down, including fromdemand generated by foreign visitors returning to Japan. We will

The Merchandising segment set new records for both net sales

ensure that we do not let such opportunities pass us by and workand profits by making a marked shift to e-commerce and otherto maintain and accelerate the segment’s recovery.

digital sales as the pandemic deprived it of some of its traditionalsales opportunities by forcing the cancellation or downscaling of

Publication

in-person events. The crisis created by the pandemic served as
an opportunity for it to diversify its sales channels through digital

The Publication segment saw a phase of sharp growth throughtransformation, which is a key theme in the segment. Its successthe fiscal year ended March 2021. Its growth curve is now

is inspiring not only for the segment itself but also for our other

FINAL FANTASY® VII REMAKE PLAY ARTS KAI™
ACTION FIGURE TIFA LOCKHARTMy Dress-Up Darling©Shinichi Fukuda/SQUARE ENIX

FINAL FANTASY® VII REMAKE PLAY ARTS KAI™ ACTION FIGURE TIFA LOCKHART© 1997, 2020 SQUARE ENIX CO., LTD. All Rights Reserved.
CHARACTER DESIGN: TETSUYA NOMURA/ROBERTO FERRARISQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

05

A Message to Our Shareholders

business segments, and we see this success as one of our majorachievements over the past several years.

We will not be releasing any HD game titles from our flagshipfranchises until the fiscal year ending March 2024, but we intend
to diversify our title portfolio by releasing mid-sized titles and new
IP in the fiscal year ending March 2023.

Our outlook

We find ourselves somewhat treading water in terms of06

Based on the achievements described above, we see the fiscal

smartphone games partly because, as noted above, our launches

year ending March 2023, which is the second year of ourduring the fiscal year ended March 2022 unfortunately did not

Medium-Term Earnings Targets and Business Strategy, as the year

include any significant earnings drivers. However, we have alreadyto lay the groundwork for the third and final year.

started working on our development structure, and once that

FORSPOKEN

FULLMETAL ALCHEMIST MOBILE

FINAL FANTASY VII EVER CRISIS© 2022 Luminous Productions Co., Ltd. All Rights Reserved.

© 2021 Hiromu Arakawa/SQUARE ENIX CO., LTD. All Rights Reserved.

© 1997, 2022 SQUARE ENIX CO., LTD. All Rights Reserved.
Powered by Applibot, Inc.
CHARACTER DESIGN: TETSUYA NOMURACHARACTER ILLUSTRATION: LISA FUJISESQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

begins producing results, we hope that subsequent launches will

us to recoup our development investment and generate a profit,

produce the big hit that will be our next growth driver.

and we therefore need to approach our development efforts based

I will next discuss our future business strategy.

on the assumption that we have to succeed in the global market.
Another change is how easily accessible information on

Future business strategy

games has become for our customers. We find ourselves in aworld where social media spreads information instantaneously,

Revamping our studio portfolio

enabling customers the world over to simultaneously obtain the

On May 2, 2022, we announced that we would be selling some ofsame information on games through a variety of different devices

our overseas studios and IP to Sweden-based Embracer Groupand outlets.

AB. The sale covered the three studios of Crystal Dynamics,

For our Group to better focus on developing titles for the

Eidos-Montréal, and Square Enix Montréal, as well as related

global market in this changing environment, we need tobusiness assets and IP. The objective of the sale was to build

concentrate our limited resources on the development of strong

stronger business foundations by revamping our portfolio of titles

and robust titles. We need to enhance our presence in the global

and studios, thereby enabling us to be selective and focused inmarket by quickly establishing an organizational structure thatleveraging our resources, as game development efforts become

enables us to consistently roll out high-quality content produced

more sizable and sophisticated.

through selective and focused resource allocation, which requires
the revamping of our title and studio portfolio.

Achieving major growth in the game industry is difficult now
for companies that compete primarily in the Japanese market,

Since our acquisition of Eidos in 2009, the three studios

given its graying demographics. As such, it is critical for our

included in the recent sale made major tangible and intangible

business that we produce hit titles that speak to the global

contributions to our Group as our core overseas studios. However,market, which offers greater scale in terms of both customers andtheir portfolios were focused on the development of major titles,

sales volumes. Furthermore, game development efforts arewhich presented the risk of a serious cannibalization of our

becoming more sizable and sophisticated as the result ofGroup’s financial resources over the medium to long term. We

technological advancements in the devices on which they are

therefore decided to divest the studios in order to achieve further

played, such as consoles or smart devices. The investment

growth through the optimal allocation of our resources and therequired to develop game titles is therefore an order of magnitude

creation of a more robust product pipeline. We look forward to

greater than in the past. In other words, the Japanese market isseeing Crystal Dynamics, Eidos-Montréal, and Square Enix

no longer sufficient for achieving a level of earnings that enables

Montréal further develop through their new partnership with
Embracer Group AB.

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

07

A Message to Our Shareholders

The initiative described above represents the first stage of our

By “a more diversified capital structure of our studios,” I referstudio portfolio strategy. For the second stage, we are exploring

to not fixating on full ownership and instead making various

the question of how to diversify the capital structure of ourpatterns of the studios’ capital structure that enables sharing

studios, as detailed below.

development risk with partners. Such a strategy would allow us togrow our studio portfolio as a whole while exposing ourselves toDiversifying capital structure of our studios

less risk. Specifically, we would diversify the capital structure of

Our studio portfolio strategy has basically been for the Group to

our studios by not only owning some studios outright, but also by

own its studios outright. Our 2005 acquisition of TAITO and 2009

welcoming third parties to take stakes in some of our studios or

acquisition of Eidos were in keeping with this view. Full ownershipby our taking stakes in studios outside the Group. In this way, we

meant that since we bore all the development costs, we would

would create a studio portfolio that spans a continuum fromstand to receive the entirety of the financial returns. At the samestudios that we own outright to those that are equity-method

time, however, it also meant that we were exposed to the entirety

affiliates or less. Under such a strategy, we would also engage inof the downside risk. In the days before game development efforts

M&A activities, for example, and work to achieve a balancereached their present massive scale, this strategy proved very

between growth and financial stability.

effective because our Group was amply capable of absorbing any
volatility on its own, as well as of generating returns that
outstripped any risk.

I will next discuss the blockchain entertainment domain,which is to play a key part in our strategy for future growth.

However, as the investment required for development efforts
has grown, this strategy has begun to produce side effects of a

Blockchain entertainment domain

scale that we cannot ignore. It is now more important than everWe have identified AI, the cloud, and blockchain as focus

that we manage financial volatility and the impact that it has on

investment areas under our Medium-Term Earnings Targets andour accounting because, while development investments fuel ourBusiness Strategy. At present, we are positioning the blockchain

Group’s future growth, we must also recognize those investments

domain as our most important focus and approaching ourin the form of our content production account. How to exercise

investment and business development initiatives accordingly.

appropriate control over volatility and strike a balance between

Leveraging AI and the cloud in game development primarilyrisk and return when making growth investments are the key

involves incorporating new technological advancements into thequestions that we must ask ourselves as we manage our games

gaming experience. By contrast, the uniqueness of blockchain isbusiness going forward, and I believe that the answer lies in a

not purely technological. It lies more in its philosophical aspects

more diversified capital structure of our studios.

as represented by the concept of decentralization that underlies
the blockchain model.

08

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

As I stated in my 2022 new year’s letter, under the traditional

games providing the type of excitement only possible withmodel, game developers have provided gaming experiences thatblockchain technology. We also acknowledge that some view the

represent a completed product. Players enjoy the gaming

very concept of blockchain gaming with suspicion due to what

experience within the confines controlled by the supplier of theappears to be a bubble in NFT asset sales, the incredible volatility

game. It is fair to refer to these as “centralized games.”of crypto assets, and the fact that laws, accounting practices, andBlockchain games, on the other hand, involve the participation oftax codes are still being established or formalized.

players with a variety of motivations. They exercise their own

However, I believe that blockchain gaming holds the potential

agency in creating and running the world of the game. As such, it

to create new forms of gaming content, and that it represents a

is fair to refer to these as “decentralized games.” Going forward,

new business domain worth our Group addressing alongside

we may see the concept of decentralized gaming take off and a

traditional games.

proliferation of token economies, which are mechanisms forincentivizing players to take part in decentralized games in various

Based on this belief, we created a Blockchain Entertainment

ways. If this leads to the creation of self-sustaining worlds with

Business Division in February 2022, marking the meaningful starteven greater scalability, I believe that we will see new types ofof our efforts in this field. We have also been ramping up ourgames produced unlike any anyone has ever seen before.

investments in a variety of both internal and external projects.

This field is only in its infancy, and we have yet to see any

Rather than limiting ourselves solely to blockchain games, we

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

09

A Message to Our Shareholders

intend to pursue a wide range of new types of entertainment

possible by a majority of outside directors, while also creating aunder the banner of “blockchain entertainment.” We are a content

board that is more balanced in its composition between execution

company. As such, our mission is to create new excitement of aand supervisory functions, thereby driving greater corporate value.

sort never seen before using new technologies and new ways ofIn regards to our shareholder return policy, we will maintain our

thinking. Blockchain technology presents us with the challenge ofguideline of a consolidated dividend payout ratio of 30%, while

seeing what sort of new excitement we can create with it. We will

working to return profits in a way that is optimally balanced inremain aggressive in taking on this new field.

terms of both reflecting our financial performance and ensuring
the stability of rewards.

This concludes my review of our earnings for the year ended

The environment in which our Group finds itself is at a more

March 2022 and my update on our Medium-Term Earnings

significant inflection point than any preceding it, especially withTargets and Business Strategy, as well as a discussion of ourregard to the digital entertainment industry. We will work tofuture business strategy with a focus on our studio portfolio

achieve greater growth by further fortifying the foundations of ourstrategy, focus investment areas, and our progress in theexisting businesses and taking on new business domains. We lookblockchain entertainment business in particular.

forward to your continued support to that end.

I will close by discussing the new composition of our board of
directors and our shareholder return policy.
Yosuke Matsuda

Our governance apparatus andshareholder return

As of June 23, 2022, we added three new executive officers to
our Board of Directors. With this change to our governanceapparatus, we will maintain the supervisory capabilities made10

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

President and Representative Director

Review of Operations
The Square Enix Group (the “Group”) is continuing determined efforts to strengthen the competitiveness and profitability of its
business segments of Digital Entertainment, Amusement, Publication and Merchandising.
Net sales for the fiscal year ended March 31, 2022 totaled ¥365,275 million (an increase of 9.8% from the prior fiscal
year) and operating income amounted to ¥59,261 million (an increase of 25.5% from the prior fiscal year). In foreignexchange rates, the weakness of the Japanese yen compared to the rate as of the end of the prior fiscal year resulted in thebooking of a foreign exchange gain amounting to ¥10,489 million. As a result, ordinary income amounted to ¥70,704 million(an increase of 41.5% from the prior fiscal year) and profit attributable to owners of parent amounted to ¥51,013 million (anincrease of 89.3% from the prior fiscal year).

Digital Entertainment(Billions of yen)Amusement
(%)

350.0

(Billions of yen)

25.0

45.0

20.0

30.0

21.1%
19.1%

280.0

(%)

45.8

45.6

4.4%

7.5
5.0

3.2%
210.0

18.7%

140.0
70.0

263.9

279.6

188.6

15.0

10.0

0.0

34.3

0.0
(2.5)
(4.6%)

0.0

2020

2021

2020

2022

Operating Income Margin (right axis)

Net Sales (left axis)

(5.0)

2022

Merchandising(Billions of yen)

(%)

40.0
43.5%

2021

Operating Income Margin (right axis)

Publication

32.0

2.5

5.0

0.0

Net Sales (left axis)

15.0(Billions of yen)

50.0

25.0

40.0

20.0

30.0

15.0

(%)

35.0

42.1%

37.3%

24.0

28.4%
28.0

23.8%

21.0
11.7%

16.0
26.8
8.0

29.0

19.4

0.0

2020

Net Sales (left axis)

2021

Operating Income Margin (right axis)

20.0

14.0

10.0
14.0

10.0

5.0

0.0

0.0

2022

Net Sales (left axis)

8.7

9.4

2020

2021

7.0
0.0

2022

Operating Income Margin (right axis)

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

11

Digital Entertainment

Share of Net Sales (FY ended March 2022)

76.6%
The Digital Entertainment segment consists of planning, development, distribution, and operation ofdigital entertainment content primarily in the form of games. Digital entertainment content is offered
to meet customer lifestyles across a variety of usage environments such as consumer game consoles(including handheld game machines), personal computers and smart devices.
In the HD (High-Definition) Game sub-segment, the fiscal year ended March 31, 2022 saw therelease of such titles as “OUTRIDERS,” “NieR Replicant ver.1.22474487139...,” and “Marvel’s
Guardians of the Galaxy,” but net sales declined versus the previous year, which had seen the launchof such titles as “FINAL FANTASY VII REMAKE” and “Marvel’s Avengers.”
Net sales rose year on year in the MMO (Massively Multiplayer Online) Game sub-segment due

OUTRIDERS © 2021 Square Enix Limited. All rights reserved. Developed by
PCF Group S.A. SQUARE ENIX and the SQUARE ENIX logo are registeredtrademarks or trademarks of Square Enix Holdings Co., Ltd. OUTRIDERS is a
registered trademark or trademark of Square Enix Ltd. People Can Fly and
the People Can Fly logo are registered trademarks of PCF Group S.A.

not only to a sharp rise in the number of monthly paying subscribers for “FINAL FANTASY XIV,” but also
to the release of an expansion pack for the title.
The Games for Smart Devices/PC Browser sub-segment saw somewhat weak performances fromexisting titles, but its net sales rose compared to the previous fiscal year due to the applicationof revised revenue recognition standards.
Net sales and operating income in the Digital Entertainment segment totaled ¥279,679 million(an increase of 6.0% from the prior fiscal year), and ¥58,960 million (an increase of 16.7% fromthe prior fiscal year), respectively.

© 2022 MARVEL. Developed by Eidos Montréal. EIDOS MONTRÉAL and the EIDOSMONTRÉAL logo are registered trademarks or trademarks of Square Enix Limited.
SQUARE ENIX and the SQUARE ENIX logo are registered trademarks or trademarks ofSquare Enix Holdings Co., Ltd.

© 2012-2022 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved.

© 2020-2022 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved.
Developed by Aiming Inc.

12

© 2019-2022 ARMOR PROJECT/BIRD
STUDIO/SQUARE ENIX All Rights Reserved.

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

© 2010 - 2022 SQUARE ENIX CO., LTD. All Rights Reserved.
LOGO ILLUSTRATION: © 2021 YOSHITAKA AMANO

Amusement

Share of Net Sales (FY ended March 2022)

12.0%
The Amusement segment consists of the operation of amusement facilities and planning, development,
and distribution of arcade game machines and related products for amusement facilities.
The Amusement segment was substantially impacted in the fiscal year ended March 31, 2021 by
the temporary closure of amusement facilities in Japan, a move undertaken to combat the spread of
COVID-19 in response to the Japanese government’s declaration of a state of emergency. As such, thesegment’s net sales were higher in the fiscal year ended March 31, 2022, and it turned to profitability
at the operating income line.
©TAITO CORPORATION 2022 ALL RIGHTS RESERVED.

Net sales and operating income in the Amusement segment totaled ¥45,882 million (an increaseof 33.6% from the prior fiscal year), and ¥2,003 million (operating loss of ¥1,568 million in the priorfiscal year).

©TAITO CORPORATION 2022 ALL RIGHTS RESERVED.
© 2022 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved.

©TAITO CORPORATION 2022 ALL RIGHTS RESERVED.

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

13

Publication

Share of Net Sales (FY ended March 2022)

7.9%
The Publication segment consists of publication and licensingof comic magazines, comic books, and game-related books.
Net sales and operating income rose year on year in the
Publication segment, which saw not only brisk digital sales, but alsoa solid trend in print media sales, owing in part to the significant
popularity of “My Dress-Up Darling.”

Vermeil in Gold
©Kouta Amana/SQUARE ENIX
©Youko Umezu/SQUARE ENIX

Net sales and operating income in the Publication segment
totaled ¥29,032 million (an increase of 8.2% from the prior fiscal

Toilet-bound Hanako-kun©AidaIro/SQUARE ENIX

year), and ¥12,222 million (an increase of 4.6% from the prior fiscal

My Happy Marriage©Akumi Agitogi Licensed by KADOKAWA CORPORATION©Rito Kohsaka/SQUARE ENIX

year), respectively.
Monthly Shonen GANGAN© 2022 SQUARE ENIX CO., LTD. All Rights Reserved.

My Dress-Up Darling©Shinichi Fukuda/SQUARE ENIXGANGAN ONLINE© 2022 SQUARE ENIX CO., LTD. All Rights Reserved.

The Maid I Hired Recently Is Mysterious©Wakame Konbu/SQUARE ENIX

MANGA UP!
© 2022 SQUARE ENIX CO., LTD. All Rights Reserved.

Chocobo and the Airship: A Final Fantasy Picture Book
© 2021 SQUARE ENIX CO.,LTD. All Rights Reserved.

Merchandising
FINAL FANTASY® VII REMAKE PLAY ARTS KAI™ ACTION FIGURE TIFA LOCKHART© 1997, 2020 SQUARE ENIX CO., LTD. All Rights Reserved.
CHARACTER DESIGN: TETSUYA NOMURA/ROBERTO FERRARI

Share of Net Sales (FY ended March 2022)

3.5%
The Merchandising segment consists of planning, production,
distribution, and licensing of derivative products of IPs ownedby the Group.
In the Merchandising segment, brisk sales of new character
merchandise based on the Group’s own content resulted in higher net
sales and operating income in the fiscal year ended March 31, 2022
than in the previous fiscal year.
Net sales and operating income in the Merchandising segment

FINAL FANTASY XIV: Endwalker Collector’s Edition© 2010 - 2022 SQUARE ENIX CO., LTD.
All Rights Reserved.
LOGO & IMAGE ILLUSTRATION: © 2010, 2013,2014, 2016, 2018, 2021 YOSHITAKA AMANOSQUARE ENIX MASTERLINE NieR:Automata 1/4 Scale Deluxe Ver.
© 2017 SQUARE ENIX CO., LTD. All Rights Reserved.

totaled ¥14,002 million (an increase of 48.1% from the prior fiscal
year), and ¥3,980 million (an increase of 76.9% from the prior fiscal
year), respectively.
SQUARE ENIX CAFE
© 2016 - 2022 SQUARE ENIX CO., LTD. All Rights Reserved.

14

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

“FINAL FANTASY” Series
A Japan original. Since the release of the first title in 1987, this roleplaying game franchise has been lauded by customers the world over for
its use of cutting-edge visual technologies, the distinctive look and feel of
its universe, and its rich stories. Thanks in part to our commitment tobringing “FINAL FANTASY” to the Western markets as well, cumulative

Over 173 million units inglobal package shipments
and digital sales

global physical and digital sales have topped 173 million units.

(as of the end of March 2022)

LOGO & IMAGE ILLUSTRATION: © 2022 YOSHITAKA AMANO

Platforms: PlayStation®5
Launch: Summer 2023 (tentative)© SQUARE ENIX CO., LTD. All Rights Reserved.
LOGO ILLUSTRATION: ©2020 YOSHITAKA AMANOFINAL FANTASY, SQUARE ENIX and their respective logos are trademarks or registered trademarks of Square Enix Holdings Co., Ltd.

“FINAL FANTASY VII”
Since the release in 1997, this gamefranchise has attracted many players with
its epic and touching stories, fascinating
characters, and its use of cutting-edge
visual technologies of the time. Physicaland digital sales have topped 13.9 million
units to date.

Platforms: PlayStation®5
Launch: Next winter (tentative)© SQUARE ENIX CO., LTD. All Rights Reserved.
CHARACTER DESIGN: TETSUYA NOMURA/ROBERTO FERRARILOGO ILLUSTRATION:©1997 YOSHITAKA AMANO

Platforms: PlayStation®5/PlayStation®4/Nintendo Switch™/Xbox Series X|S/Xbox One/Steam®
Launch: December 13, 2022 (tentative)© 2007, 2008, 2022 SQUARE ENIX CO., LTD. All Rights Reserved. CHARACTER DESIGN: TETSUYA NOMURA

Platforms: iOS/Android© 1997, 2022 SQUARE ENIX CO., LTD. All Rights Reserved.
Powered by Applibot, Inc.
CHARACTER DESIGN: TETSUYA NOMURACHARACTER ILLUSTRATION: LISA FUJISE

Platforms: PlayStation®5/PlayStation®4/Windows®/Mac/Steam®
© 2010 - 2022 SQUARE ENIX CO., LTD. All Rights Reserved.
LOGO ILLUSTRATION: © 2021 YOSHITAKA AMANO

Platforms: iOS/Android
Platforms: iOS/Android©2015-2022 SQUARE ENIX CO., LTD.
All Rights Reserved.
Developed by gumi Inc.
LOGO ILLUSTRATION:©2014 YOSHITAKA AMANO© 2019-2022 SQUARE ENIX CO., LTD.
All Rights Reserved.
Co-Developed by gumi Inc.
LOGO ILLUSTRATION:© 2018 YOSHITAKA AMANO

Over 85 million units inglobal package shipments
and digital sales(as of the end of March 2022)“DRAGON QUEST” Series
In 2021, the “DRAGON QUEST” series celebrated its 35th
anniversary. This series of popular roleplaying games has sold© 2012-2022 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX
All Rights Reserved.

a total of over 85 million units worldwide since the launch of“DRAGON QUEST” for the Nintendo Entertainment System in
1986. The series keeps creating new gaming experiences byactively utilizing advanced technologies such as 3D maps,
StreetPass wireless communication, and cloud ggaming.
g

Platforms: PlayStation®5/PlayStation®4/Nintendo Switch™/Steam®
Launch: September 15, 2022
© 2012,2022 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved.

Platforms: PlayStation®5/PlayStation®4/
Nintendo Switch™/Steam®
Launch: TBD

Platforms: Nintendo Switch™
™
Launch: December 9, 2022 (tentative))© 2022 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved..

©SANJO RIKU, INADA KOJI/ SHUEISHA, The Adventure of Dai Project© 2020-2022 SQUARE ENIX CO., LTD. All Rights Reserved.

© 2020-2022 ARMOR PROJECT/
BIRD STUDIO/SQUARE ENIX
All Rights Reserved.
Developed by Aiming Inc.

© 2019-2022 ARMOR PROJECT/
BIRD STUDIO/SQUARE ENIX
All Rights Reserved.

©SANJO RIKU, INADA KOJI/ SHUEISHA, The Adventure of Dai Project© 2021, 2022 SQUARE ENIX CO., LTD. All Rights Reserved.
© 2022 DeNA Co.,Ltd.

© 2015-2022 ARMOR PROJECT/
BIRD STUDIO/SQUARE ENIX
All Rights Reserved.
© 2021, 2022 ARMOR PROJECT/BIRD STUDIO/NHN PlayArt/SQUARE ENIX All Rights Reserved.

Over 36 million units
in global package shipments
and digital sales(as of the end of March 2022)

About the KINGDOM HEARTS Series
KINGDOM HEARTS is a series of role-playing games createdthrough the collaboration of Disney and Square Enix. Since
the first KINGDOM HEARTS was released in March 2002 for
the PlayStation®2 computer entertainment system, the series
has expanded with several
additional entries. The series iscelebrating its 20th anniversary
this year and has shipped over
36 million units worldwide.

Platforms, Launch: TBD© Disney. Developed by SQUARE ENIX

Platforms: iOS/Android© Disney. Developed by SQUARE ENIX

“FORSPOKEN”“FORSPOKEN” is an action role-playing game originally unveiled inJune 2020 under the working title “PROJECT ATHIA.” The game isa thrilling story-led, action-packed adventure in which a young
woman named Frey Holland finds herself thrust from our world into
the beautiful but forbidding land of Athia, whose mysteries she must
unlock by harnessing magical abilities.
The title takes maximum advantage of the PlayStation®5’s
features and embodies Luminous Productions’ vision, namely“to create games unlike anything experienced before, fusing theworld’s latest technologies with art.”
Platforms: PlayStation®5/PC
Launch: January 24, 2023 (tentative)© 2022 Luminous Productions Co., Ltd. All Rights Reserved.

OUTRIDERS WORLDSLAYER © 2022 SQUARE ENIX LTD.
All Rights Reserved. Developed by PCF Group S.A. SQUARE ENIX
and the SQUARE ENIX logo are registered trademarks ortrademarks of Square Enix Holdings Co., Ltd. OUTRIDERS isa trademark or registered trademark of Square Enix Ltd.
PEOPLE CAN FLY and the PEOPLE CAN FLY logo are registeredtrademarks, all used courtesy of PCF Group S.A.

“OUTRIDERS WORLDSLAYER”
OUTRIDERS WORLDSLAYER is a brutal 1-3 player co-op looter shooter set in an original, dark sci-fi universe.
Create your own Outrider from one of four powerful classes and begin with the original OUTRIDERS campaign or use the all-new Level 30 Boost to jump straight
into the WORLDSLAYER content with a fully geared up Outrider, and journey across the diverse and deadly planet of Enoch.
Here you will face off against the most deadly Altered ever encountered, Ereshkigal, in humanity’s last fight for survival. Beyond her, even greater horrors exist in theultimate endgame experience, taking place in the ancient ruins of Tarya Gratar. Combining aggressive gunplay with violent powers and an arsenal of increasingly twisted
customizable weaponry and gear-sets, OUTRIDERS WORLDSLAYER offers countless hours of visceral gameplay from one of the finest shooter developers in the industry– People Can Fly.
Platforms: PlayStation®5/PlayStation®4/Xbox Series X|S/Xbox One/Windows PC (Steam®・EPIC GAMES STORE)/STADIA*
Launch: July 1, 2022 (Japan), June 30, 2022 (overseas)*To be provided when STADIA is available in Japan

Platforms: PlayStation®5/PlayStation®4/Xbox Series X|S/Xbox One/Steam®
Launch: October 27, 2022 (tentative)© 2022 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by tri-Ace Inc. CHARACTER DESIGN: akiman

Platforms: PlayStation®5/PlayStation®4
Launch: September 29, 2022
Platforms: Steam®
Launch: November 12, 2022 (tentative)© 2022 SQUARE ENIX CO., LTD. All Rights Reserved.

Platforms: PlayStation®5/PlayStation®4/Nintendo Switch™/Xbox Series
X|S/Xbox One/Windows10/Steam®
Launch: July 15, 2022
*To release PlayStation®5/PlayStation®4/Nintendo Switch™ soon.
POWERWASH SIMULATOR © 2021, 2022 FuturLab Limited. Published by Square Enix Ltd.
Developed by FuturLab Limited.

Platforms: iOS/Android©Hiromu Arakawa/SQUARE ENIX

Launch: August 4, 2022
© 2021 Hiromu Arakawa/SQUARE ENIX CO., LTD. All Rights Reserved.

©Imari Arita/SQUARE ENIX

Environment, Social and Governance
Sustainability Initiatives
Impact of climate change-related risks and earnings opportunities on business activities and earnings

Organizational Governance Relating to Climate-Related Risks
and Opportunities• The Board of Directors will evaluate and monitor climate change-

Risk Management• The President and Representative Director will appoint an executive
officer to take responsibility for the implementation of necessary

related risks and executive management’s measures to counter themmeasures in relevant departments associated with the risks inbased on reports provided as appropriate by the President andquestion.

Representative Director.
• The President and Representative Director will analyze the risks
according to the scope of our Group business activities, formulate and• We will calculate the level of CO2 emissions pertaining to electricity
usage at facilities used by our Group and track our progress relative toour reduction targets.

execute requisite measures, and report regularly to the Board of
Directors.

Metrics and Targets• Our quantitative metric is the amount of CO2 emitted by Japanese

Strategies

offices, data centers, and amusement facilities through the use of

Risks and their impact

electricity. We target virtually zero emissions from offices and data

• Rise in business costs with future introduction of policies such as

centers by 2030. We aim to reduce emissions from amusement

carbon taxes

facilities by 50% by 2050.

• Rise in cost of materials, production and procurement costs withrestrictions on use of plastic• Disruptions to business continuity, physical damage, and impact on
employee workstyles and lifestyles from natural disasters and global

CO2 emissions from electricity use(tCO2) *Figures include some approximations and interim figures.

40,000warming

34,32034,304

Opportunities and their impact• Carbon tax reduction via shift to renewable energy

32,691

31,88530,00026,140• Reduced costs such as for plastic with increased shift to digital
Addressing the risks and opportunities for the Group

22,16520,000• We recognize that switching our source of electricity to renewableenergy would be an effective and feasible method of limiting our Groupgreenhouse gas emissions. We have plans to switch each of our

10,000Japanese offices and data centers to renewable energy, and willfurther consider our handling of emissions from other facilities.

24

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

0

2017

2018

2019

2020

2021

2022

Environmental and Social Initiatives
Through its environmental and social initiatives, the Group works to bolster our corporate value and create sustainable growth.

Environmental Protection Initiatives

Collaborations with academia to support the development

By its nature, our core Digital Entertainment segment has a relativelyof society and our industry

small environmental footprint. The Group nonetheless strives to run

Our Group actively engages in joint initiatives with academia in an

its operations mindful of the need for even greater environmental

effort to pursue new possibilities in expression and to further theprotection. Game contents can be sold either by recording them ondevelopment and messaging power of the content industry.

optical disks that are packaged and delivered to our customers via

In 2017, we asked ourselves, “What would it be like if there were

physical distribution channels or by having our customers downloada Department of Games at the Tokyo University of the Arts?” To answer

them from servers directly to their game consoles, computers, or otherthat question, we created just such a department for a limited time with

devices. Promoting digital downloads is one way we work to protect thethe help of the university’s Graduate School of Film and New Media

environment. It enables us to reduce the emissions that result fromand its Center of Innovation. We held an exhibition in each of the nexttransporting physical products and to conserve the resources that are

two years that showcased works from a variety of projects under theused to make them. We also use recyclable materials in the production

mentorship of creators from our Group company Luminous Productionsof our physical products and otherwise strive to operate with a minimum

Co., Ltd. These initiatives paved the way for the creation in the fiscal

environmental footprint.

year ended March 2020 of the Game Course at the Graduate Schoolof Film and New Media at the Tokyo University of the Arts. We will

Social Contribution Initiatives

continue to collaborate with the university in its efforts to expand both

Providing a safer, more comfortable game-play environment

the potential of games, which it views as a form of art, and the field of

As part of our social responsibility initiatives, we label the consumer

filmmaking expression.

games our Group sells in regions such as Japan, North America, andIn 2018, we signed a collaborative agreement with Chuo University

Europe with age suitability and other information as dictated by theto enable the exchange and leveraging of human and intellectual

ratings systems of the applicable countries*1. For the mobile games

resources. Under this agreement, we are working with the university’s

we provide in Japan, we comply with the “Operating Guidelines forFaculty of Global Informatics to hold a series of special lectures on

Random Item Distribution in Network Games”* established by thegame planning from 2021 until the second semester of 2022. In

Computer Entertainment Supplier’s Association (CESA) and indicate

addition to the programming and graphics skills required to develop

the odds associated with all in-game items for which users pay. In thisa game, employees from our Group company Square Enix Co., Ltd.

way, we provide our customers with a safer and securer game-playhave covered a wide variety of topics in the lectures, including

environment.

translation, artificial intelligence, and visual art direction.

2*1 Under Japan’s rating system, which is controlled by the Computer Entertainment Rating
Organization (CERO), we label our games to indicate the age group for which the gamecontents are suitable.
*2 In order to help our customers make purchase decisions, we list all the in-game items
provided via fee-based “Gacha” or loot boxes (a method of providing random in-gameitems in direct exchange for money or for virtual currency that can be purchased with realmoney) and the odds of obtaining them.

From the second semester of 2021, we are also collaborating with
the Matsuo Lab at the University of Tokyo’s School of Engineering toprovide a sponsored course on world models and simulators. We areoffering lectures focused on simulations and deep learning with thecooperation and supervision of our Group company SQUARE ENIX AI &ARTS Alchemy. We will continue to collaborate with the Matsuo Lab,
which is a leader in the field of deep learning in Japan, in an effort tofurther enhance the technology for constructing simulations for games
and other digital content and to pursue potential applications for thattechnology.

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

25

Environment, Social and Governance

Human Resources Initiatives“To spread happiness across the globe by providing unforgettable experiences.” That is the Group’s corporate philosophy,
and the Group works to provide an environment that consistently embodies it. An internal environment in which all employees
can fully demonstrate their potential is one that gives rise to creative and innovative ideas. The Group provides that sort ofcorporate culture and workplace environment, while also establishing human resource programs that support a diversity ofworking styles. The following programs implemented by SQUARE ENIX CO., LTD. (“Square Enix”) are prime examples of theGroup’s human resource initiatives.

Human Resource Training
Helping all employees grow and maximizing their individual manifest abilities while also ensuring they can bring those attributes to bear in the best
way possible serves as a major driver of sustainable growth for the Group. Square Enix proactively engages in human resource training through avariety of opportunities.

New employee onboarding: “GAME DEV BOOT CAMP”

include Japan’s Labor Standards Act, Copyright Act, Payment

New employees are divided

Services Act, and Act against Unjustifiable Premiums and Misleading

into teams and experience

Representations. Square Enix also undertakes informational anda mock game development

awareness initiatives targeting the entire employee body in order toeffort that starts withensure that employees gain a better understanding of complianceplanning and continues all

topics and to further raise compliance consciousness companywide.

the way through to launch. They acquire basic job skills and experience26

the importance of working collaboratively with teammates firsthand.

Global resource training

In addition, the process inspires participants to tackle new challenges

With employees encountering more and more opportunities for global

without fear of failure. Once employees are assigned to their respective

communication, the demand for English skills is greater than ever. Square

workplaces, they receive on-the-job training that emphasizes their own

Enix helps non-English speaking employees enhance their language skills,

agency by encouraging them to think, decide, and act on their own.

including by offering English classes at the office and online.

Compliance training

Cutting-edge technology training and in-house development

Square Enix provides compliance training primarily to managerial

knowledge workshops

employees to ensure that they have an accurate understanding of the

In order to enhance the technological literacy of Square Enix’s

regulatory environment as it relates to Square Enix’s businesses andemployees regarding cutting-edge technologies such as AI (artificial

use that understanding to inform their daily business activities. Focuses

intelligence) and blockchain and to leverage such technologies in its

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

Parenting support programs

Pregnancy

Nursing care support programs

Birth

Nursing care leave of absence

ParentingA total of up to 1 year per situation requiring
1 year old• Maternity leave(up to 15 days)

1.5 yearsold

2 yearsold

3 years
oldPrior toelementary
schoolPrior tomiddleschool• Leave for spouses of new mothers(3 days within 1 month of birth date)care per relevant family member (may be
divided into a maximum of 3 periods)
Nursing care leave
Up to 5 days per year per relevant family
member• Parenting leave of absence
Available until the later of 1) the day the child reaches
1 year 6 months of age or 2) the last day of the first
April after the child’s first birthday

Reduced working hours and other programs
Multiple working styles from which employees
can choose. May be used at least twice per
relevant family member in a 3-year period

Legally mandated eligibility window(in general)

starting with the initial usage• Reduction in mandatory working hours• Early or late starting or finishing times• Reduced working hours, etc.
• Exemption from overtime work

• Flex time

Legally mandated eligibility window• Overtime, late-night work limitations• Sick childcare leave (up to 5 days per year per child)
Legally mandated eligibility window

content development efforts, Square Enix regularly holds information-

high-quality content development. Furthermore, to address the lacksharing meetings and internal seminars, and also promotes theof communication resulting from employees working from home, wesharing and self-study of information on cutting-edge technologies

are promoting various revitalization measures through the exchangeusing our online resources. Additionally, Square Enix providesof technology centered on these themes of cutting-edge technology

numerous opportunities for sharing actual content development

and in-house knowledge.

knowledge across divisions and projects to encourage efficient andSQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

27

Environment, Social and GovernanceWorking Style Diversification
Employees view their work through the lens of an increasingly diverse range of values, and their needs change as they progress through different
stages of life. In order to accommodate such diversity and change, Square Enix has introduced working options and unique benefit programs that
go above and beyond legal requirements in order to help its employees enjoy an optimal work-life balance.

“Daycare concierge service”

officers and employees of all job types. At present, approximately 80%

Employees have access to a third-party “daycare concierge service.”of our employees work from home.

Experts share know-how, information, and advice to help new parents

The program gives employees more options about how they work

efficiently identify the best daycare option for them and make a smoothand enables us to attract diverse human resources. We will also build

transition back to the workplace after the birth of a child.

the capacity to respond to unexpected situations such as disasters andchanges in employment models. We will work to further enhance ourWork-from-home program

corporate value by providing our employees with new ways of working

We officially institutionalized our work-from-home program as offor a new world so that they can be even more creative and continue

December 1, 2020, with the goals of creating a flexible and diverse

to deliver content and services that meet the expectations of ourworking environment, further enhancing productivity, and achieving

customers around the globe.

the optimal work-life balance. The program is available to all executive

Creative Business Unit II

Creative Business Unit I

Hiroshi Iwai

Mai Okauchi

I took about six months of parenting leave inWhile I was on parenting leave, I used the

conjunction with the birth of our second child.

“daycare concierge service” to efficiently gather

I am extremely grateful for my workplace which

information on daycare services.

accommodated me and provided cooperation so

After returning to work, I have beenthat I could take my leave with peace of mind byworking under our reduced hour flex andsetting up the necessary system and handing

work-from-home programs. By using theseover my work prior to going on leave.

programs, I find it comfortable to work because

Moreover, with the backup of everyone

28

they give me the flexibility to deal witharound me, I was able to smoothly ease backunexpected situations such as my child’s

to work. While on leave, I shared parenting andillnesses. I am also grateful to my workplace forhousehold chores with my wife, which madeallowing me the flexibility to choose my workstyle

me aware of the immense work involved asin line with my lifestyle. Although there are many

well as allowed me to spend precious time

obstacles to balancing parenting and work, I canwith my family.

continue to work with peace of mind.

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

Health and Productivity Management
In order to provide its customers with the best products and services, employees have to be healthy. Having employees that are mentally andphysically healthy and helping them improve upon that health is therefore a key priority for Square Enix. As such, it undertakes a variety of
initiatives to communicate the importance of daily health management and regular exercise in order to promote a corporate culture where all
employees are mindful of and take good care of their health.

Support for physical exercise regardless of workstyles

held twice a year, in spring and fall, where employees team up andAs workstyles based on work-from-home become the norm, weusing pedometer apps, aim for the targeted number of steps whileare providing monthly online health initiatives that employees cantaking on various game challenges on the way. In addition to theseparticipate in from home, including stretch programs by professional

efforts, we will continue to proactively provide measures to improve

instructors and yoga lessons. Additionally, walking events to improve

the health of our employees.

employee health as well as encourage in-house communications are

Enhancing occupational health and safety

Full-time occupational physician,full-time nurse,
clinical psychologist

Employee

Human
resources

Health & Safety
Committee

Workplace

Live online stretching class

PC wallpaper designed by a Square Enix employee promoting
the walking event

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

29

Corporate Governance
1. Overview of Corporate Governance(1) Basic views on corporate governance(excluding directors who are Audit & Supervisory Committee members)

The Company is a pure holding company governing the Square Enix

based on the basic policy on the executive remuneration system set

Group, which develops a wide range of content and services. The

forth by the Board of Directors, determines the nomination criteria for

Company believes that it is essential for the achievement of the Group’s

directors, and also determines candidates for directors, etc., to becontinuous growth and the maximization of its corporate value in thesubmitted to the Board of Directors.

medium and long term to respect the interests of all the Company’s

As a general principle, the Audit & Supervisory Committee meetsstakeholders such as shareholders, customers, business partners,

once a month and based on the Audit & Supervisory Committee

employees, and society, and to maintain good relationships with themStandards, and in light of the status of the development and operation

under an agile, transparent, and sound management system. As such,of internal control systems, audits the legality and appropriateness of

the Company recognizes that the enrichment and enhancement of its

directors’ execution of their duties, in coordination with the internal

corporate governance is a key management challenge, and the entire

control functions. A member of the Audit & Supervisory Committee

Group devotes itself to that end on an ongoing basis.

possesses extensive expertise in finance and accounting matters.

(2) Overview of corporate governance system and objectives

the Company has established the role of executive officer in order to

In an effort to enhance its corporate governance, the Company

clearly identify the party responsible for operational execution in eachtransitioned to a company with an Audit & Supervisory Committee as of

domain and to strengthen cross-functional ties. This report includes

June 22, 2018. The establishment of the Audit & Supervisory Committee

a list of the Company’s incumbent executive officers.

In the interest of executing and advancing management initiatives,

comprising only outside directors works to strengthen the Company’s
auditing and supervisory functions over its management.

Company’s Guidelines on the Development of an Internal Control System.

Moreover, in order to clarify the separation between management

By maintaining and promoting these guidelines, the Company works toand execution, the Company has strengthened the monitoring functions

ensure that auditing and supervisory functions are robust, to confirmof the Board of Directors by staffing it primarily with outside directors.

that all business activities comply with all relevant laws and regulations

Meanwhile, the Company has established an organization to increase theand the Company’s Articles of Incorporation, and to enhance theefficiency and speed of operational execution by dictating in its Articles of

efficiency of the directors’ exercise of duties.

Incorporation that the Board of Directors can empower directors to makedecisions regarding the execution of key operational matters.

Moreover, the Company clearly specifies the importance of compliancein the Code of Conduct in order to ensure a rigorous compliance system.

The Company has 10 directors (excluding those who are members

The Company has established the Internal Control Committee andof the Audit & Supervisory Committee), six of which are outside directors,

whistle-blowing systems, through which Company-wide complianceand three directors who are members of the Audit & Supervisory

measures are integrated across organizational reporting lines. With

Committee, all of which are outside directors, with one being full time.

regard to the management and operation of the Company’s information

The Company designates all of its outside directors as independent

systems, which form the foundation of IT controls and efficient operational

directors as defined by the Tokyo Stock Exchange rule.

functions, the Company has established the Information System

As a general principle, meetings of the Board of Directors areconvened once a month, and deliberations and exchanges of opinions
between the individual directors bring greater vitality to the management

Management Committee to oversee information systems on a Companywide basis.
In addition, to ensure the maintenance of a robust risk managementof the Company while also serving to sufficiently enhance the mutual

system, Company-wide risk management measures are integrated

check and balance between directors. Furthermore, in order to ensure

across organizational reporting lines. This is achieved through thethe objectivity and transparency of decisions made regarding executive

reinforcement of relevant internal control divisions, and the establishment

remuneration and candidates for director positions, the Company has atof the Internal Control Committee and whistle-blowing systems.

its discretion established the Remuneration & Nomination Committee on

30

The Board of Directors has passed a resolution establishing the

To ensure its subsidiaries properly execute business activities, thewhich the majority is formed by independent outside directors and theCompany has set forth the Affiliate Company Management Rules andchairperson is an independent outside director. This committee determines

engages in the management and supervision of subsidiaries in a manner

the individual amounts and the nature of remuneration for directors

befitting the scale of said companies and their importance to the Group.

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

Based on the aforementioned rules, the Company requests reports

briefings, the primary subsidiaries make it possible for the Company toregarding the running of subsidiaries and other important information,assess the status of the running of subsidiaries in a timely fashion as welland by employing methods such as holding monthly and ad hoc

as to take necessary measures in a timely and accurate fashion.

The members of the main meeting bodies are as follows:◎: Chairman or Committee chairperson
Audit & Supervisory
Committee

Remuneration &Nomination Committee

Internal Control
Committee○◎

Position

Name

Board of Directors

President and Representative Director

Yosuke Matsuda◎

Director
Chief Strategy Officer

Takashi Kiryu○

Director

Yoshinori Kitase○

Director

Yu Miyake○Outside Director

Yukihiro Yamamura○○

Outside Director

Yuji Nishiura○○

Outside Director

Masato Ogawa○◎

Outside Director

Mitsuko Okamoto○

Outside Director

Abdullah Aldawood○

Outside Director

Naoto Takano○

Outside Director (Standing Audit &Supervisory Committee Member)

Nobuyuki Iwamoto○◎

Outside Director (Audit & Supervisory
Committee Member)

Tadao Toyoshima○○

Outside Director (Audit & Supervisory
Committee Member)

Hajime Shinji○○

Chief Accounting Officer

Atsushi Matsuda○

Chief Legal Officer

Hajime Seki○

General Manager of Internal Audit Office

Satoshi Shinohara

○

○

○

○

(3) Overview of liability limitation agreements

arising from accepting liability involving the execution of their duties or

The Company has liability limitation agreements in place with its outside

being subject to claims associated with efforts to hold them liable fordirectors in accordance with Article 427, Paragraph 1 of the Companies Act

reasons involving the execution of their duties (provided, however, thatto limit liabilities provided under Article 423, Paragraph 1 of the Companies

the damages in question are not the result of willful misconduct or grossAct. These agreements limit the liability of each outside director to ¥10

negligence). The insured parties under such insurance policy are

million or the legally specified amount, whichever is greater.

directors and employees, etc., of the Company and its subsidiaries.
The insurance premiums are paid entirely by the Company.

(4) Overview of the executive liability insurance policy
The Company has entered into an executive liability insurance policy withan insurer in order to offset damages that the insured parties may incur

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 202231

(5) Prescribed number of directors(10) Status of attendance of Board of Directors meetings

The Company’s Articles of Incorporation stipulate that the number ofName (Position)

Status of attendance of Board of Directors
meetings for the fiscal year
ended March 31, 2022

& Supervisory Committee members shall not exceed four.

Yosuke Matsuda (President andRepresentative Director)

100.0% (16 out of 16 meetings)(6) Resolution requirements for the election of directors

Yukihiro Yamamura (Outside Director)

100.0% (16 out of 16 meetings)

Yuji Nishiura (Outside Director)

100.0% (16 out of 16 meetings)

Masato Ogawa (Outside Director)

100.0% (16 out of 16 meetings)

Mitsuko Okamoto (Outside Director)

100.0% (16 out of 16 meetings)

Abdullah Aldawood (Outside Director)

92.3% (12 out of 13 meetings)

Ryoichi Kobayashi (Outside Director(Standing Audit & Supervisory Committee
Member))100.0% (16 out of 16 meetings)

Tadao Toyoshima (Outside Director (Audit& Supervisory Committee Member))

100.0% (16 out of 16 meetings)

Hajime Shinji (Outside Director (Audit &Supervisory Committee Member))

100.0% (16 out of 16 meetings)

directors (excluding directors who are Audit & Supervisory Committee
members) shall not exceed 12 and the number of directors who are Audit

The Company’s Articles of Incorporation stipulate that resolutions for theelection of directors shall not be made by cumulative voting, but by amajority of affirmative votes of shareholders exercising their voting rights
at the General Shareholders’ Meeting where shareholders in attendance
hold one-third or more of outstanding voting rights.
(7) Bodies able to determine dividends paid from retained earnings
The Company’s Articles of Incorporation stipulate that mattersprovided under Article 459, Paragraph 1 of the Companies Act may
be determined by the Board of Directors unless legally stipulated
otherwise. The objective of this provision is to expand flexibility
in execution of capital policies.
(8) Exemption of directors’ liability
Pursuant to Article 426, Paragraph 1 of the Companies Act, theCompany’s Articles of Incorporation stipulate that directors (including
former directors) may be exempted from liability for actions related to
Article 423, Paragraph 1 of the Companies Act, up to the limit provided
by law, through a resolution passed by the Board of Directors. The objectiveof this provision is to ensure the maintenance of an environment in which
directors may execute their duties to the maximum of their abilities andare able to fulfill the roles expected of them.
(9) Matters requiring special resolutions at the General
Shareholders’ Meeting
The Company’s Articles of Incorporation stipulate that the special
resolutions provided under Article 309, Paragraph 2 of the Companies
Act may be passed by two-thirds or more of affirmative votes ofshareholders exercising their voting rights at the General Shareholders’Meeting where shareholders in attendance hold one-third or more ofoutstanding voting rights. The objective of this provision is to ensuresmooth proceedings of the General Shareholders’ Meeting by relaxing
the special resolution requirements.

*Ryoichi Kobayashi has retired as of June 23, 2022.
The number of times Abdullah Aldawood has attended Board of Directors meetings represents the status of
his attendance since the 41st Annual Shareholders’ Meeting held on June 25, 2021, when he became an
outside director.

(11) Status of outside directors(i) Personal, financial, business or other relationships constituting
conflicts of interest with the Company
The Company has nine outside directors, and no conflict-of-interest
relationships exist between the Company and its outside directors.
(ii) Functions and roles under the Company’s corporate governancestructure
Yukihiro Yamamura, Yuji Nishiura, Masato Ogawa, and Naoto Takano
possess abundant experience and broad-ranging insight as corporate
executives. While having had no previous involvement with corporate
management, Mitsuko Okamoto possesses abundant experience andbroad-ranging knowledge and insight in the field of animation and othercontent. Abdullah Aldawood possesses a track record as a national leader
in the development of the field of entertainment in the Kingdomof Saudi Arabia, abundant experience in international financial
institutions, and a wealth of experience and broad-ranging insight inglobal corporate management. Based on these attributes, each of themhas, since assuming the role of outside director, supervised and served
as a check on directors in the execution of their roles. In addition, at
Board of Directors meetings, they have provided comments from an
independent perspective with the goals of enabling the sustained growthof the Group, bolstering its corporate value over the medium and longterm, and further enhancing its corporate governance capabilities.

32

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

The functions and roles of Nobuyuki Iwamoto, Tadao Toyoshima, andfirm. The situation of such mutual cooperation is reported to andHajime Shinji under the Company’s corporate governance structure are

discussed by the Board of Directors, Audit & Supervisory Committee,

described in (1) Status of audits by Audit & Supervisory Committee underInternal Control Committee, and other corporate forums as appropriate.

2. Status of Audits below.
(13) Analysis and evaluation of the effectiveness of the Board of(iii) Standards and policy on independence from the Company in theappointment of outside directors

Directors
The way in which meetings of the Board of Directors were held in the

The Company has not established any particular provisions regarding

fiscal year ended March 31, 2022 is described below. Moreover, theindependence in appointing outside directors but selects individuals who

Company conducted a survey on the effectiveness of Board meetings

can be expected to execute their duties appropriately and from an

and received positive feedback on the effectiveness of the meetings fromobjective and independent perspective; to support corporate governancethe Board members. Based on these factors, the Company confirms thatbased on specialized expertise in such areas as finance, accounting, andthe Board is functioning in an effective manner.

internal controls; and who are unlikely to have any conflicts of interest• In principle, Board meetings are held once a month (16 meetings werewith general shareholders.
The maximum total term of office for outside directors shall be
10 years.
The Company has notified the Tokyo Stock Exchange that Yukihiro
Yamamura, Yuji Nishiura, Masato Ogawa, Mitsuko Okamoto, Abdullah

held in the fiscal year ended March 31, 2022), whereupon the Board
engages in discussions and makes decisions on matters that require
the Board’s resolution in a timely manner, while also receiving reportson the Group’s businesses and providing supervision over operational
execution.

Aldawood, Naoto Takano, Nobuyuki Iwamoto, Tadao Toyoshima, and• All directors had high rates of attendance (100% for eight of the nine,

Hajime Shinji are designated as independent directors pursuant to the

92.3% for the remaining director), and sufficient time was secured forrules established by the stock exchange.

active discussions at the Board meetings.
• The Board subjects operational execution to effective discipline, with(12) Mutual cooperation between supervision and audits by outside
directors and internal audits, audits by Audit & Supervisory
Committee, and audits by the audit firm, and relationship with
the internal control unit
The outside directors promote mutual cooperation with the Internal Audit

the Board at times deciding as the result of discussions to revise orrevisit proposed items.
The Company will continue to make efforts to improve theeffectiveness of the Board meetings by soliciting feedback from Board
members in a timely manner.

Department, Audit & Supervisory Committee, and the Company’s audit

2. Status of Audits(1) Status of audits by Audit & Supervisory Committee
Audits by the Audit & Supervisory Committee are carried out by three

Name (Position)

Status of attendance of Audit & Supervisory
Committee meetings for the fiscal year ended
March 31, 2022

Ryoichi Kobayashi*(Standing Audit & Supervisory
Committee Member)

100.0% (21 out of 21 meetings)

Tadao Toyoshima(Audit & Supervisory
Committee Member)

100.0% (21 out of 21 meetings)

Hajime Shinji(Audit & Supervisory
Committee Member

100.0% (21 out of 21 meetings)

Audit & Supervisory Committee members, all of whom are outside
directors. The Committee also requests regular reports from the Internal
Audit Department on operational audits, while instructing the division toassist the Committee’s duties, as necessary.
The Audit & Supervisory Committee convened a total of 21 times
during the fiscal year ended March 31, 2022, and attendance by thecommittee members was as follows:*Retired as of June 23, 2022

Key matters deliberated upon by the Audit & Supervisory Committee
include the drafting of audit policies and plans, the status of theexecution of directors’ duties, the status of the development andoperation of internal control systems, the status of audits at subsidiaries,

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

33

coordination with the Internal Audit Department and the development ofmonitoring, reviews and evaluations (internal evaluations) of internal

the auditing environment, the nomination of directors who are Audit &control systems and operational processes, including those of Group

Supervisory Committee members, and the nomination and remunerationcompanies, taking into account the relative importance of and riskof directors (excluding those who are members of the Audit &inherent in each part of the organization, and provides reports andSupervisory Committee).

recommendations to the President. The Internal Audit Office’s functions

In addition, the Audit & Supervisory Committee confirmed the statusof the execution of the duties of the Accounting Auditor and assessed thevalidity of the audit methods and results of the Accounting Auditor. It also

are carried out while sharing information with the Audit & Supervisory
Committee and the Accounting Auditor.
The Audit & Supervisory Committee and the audit firm meet at thedeliberated matters regarding the appointment, dismissal, or non-timing of quarterly and full-year earnings (i.e., a total of four times per

reappointment of the Accounting Auditor, as well as the remuneration

annum) to report and exchange views. In addition, they arrange forumsof the Accounting Auditor.

for exchanging views as appropriate, and incorporate the results of such

Each member of the Audit & Supervisory Committee, based on his
or her wealth of experience and deep insight, offered opinions at themeetings of the Board of Directors from an independent standpoint in

discussions into the performance of their auditing duties.
Furthermore, the Board of Directors and Internal Control Committee
are provided with reports on such audits as appropriate.

order to create sustainable growth for the Group, bolster corporate value
in the medium and long term, and further enhance the corporate(3) Status of audits by Accounting Auditor

governance system.

(i) Name of the Accounting Auditor

Nobuyuki Iwamoto has supervised and served as a check on

Ernst & Young ShinNihon LLC

directors’ execution of their duties as an outside director who is an Audit& Supervisory Committee member based on his abundant experience(ii) Consecutive duration of audit service

and broad-ranging insight in such areas as finance and accounting,

16 years

as a corporate executive. In addition, in his role as a standing memberof the Audit & Supervisory Committee, he has shared with other Audit(iii) Names of responsible certified public accountants& Supervisory Committee members information he has obtained byHirofumi Harashina, Designated Limited Liability Partners, Businessattending key meetings other than those of the Board of Directors

Execution Partners(e.g., the Remuneration & Nomination Committee, the Internal Control(Consecutive years of audit service: 1)

Committee, and the Information System Management Committee) and

Miyuki Nakamura, Designated Limited Liability Partners, Businessby reviewing the minutes of key meetings, contracts, internal decision-

Execution Partners

making records, and financial data.

(Consecutive years of audit service: 3)

Tadao Toyoshima does not have experience in corporate
management excluding previous instances of serving as an outside(iv) Support team for accounting audit duties

director. However, he holds a qualification as a certified public accountant

17 certified public accountants and 44 others(CPA) and since assuming the role of outside director who is an Audit &Supervisory Committee member, he has supervised and served as a(v) Policies and reasons for selection of Accounting Auditor

check on directors’ execution of their duties based on his insight into

When selecting an audit firm as its Accounting Auditor, the Company

financial and accounting matters.

comprehensively considers whether it has a system for centralized

Hajime Shinji does not have experience in corporate management

auditing of the Company’s international business activities, in addition to

excluding previous instances of serving as an outside director. However,whether it has the expertise, independence, suitability and quality control/

he is a qualified attorney and since assuming the role of outside director

screening systems necessary for an Accounting Auditor. Accordingly,

who is an Audit & Supervisory Committee member, he has supervised

Ernst & Young ShinNihon has been determined to be qualified.

and served as a check on directors’ execution of their duties based on

Furthermore, in the case of dismissal of the Accounting Auditor by

his abundant experience and broad-ranging insight in the field of law.

the Audit & Supervisory Committee as provided for under Article 340 of
the Companies Act or other cases where it is found to be difficult for an

34(2) Status of internal audit

audit firm to perform its duties as Accounting Auditor appropriately, theInternal audits are carried out by the Internal Audit Office, which reports

Company shall, in principle, submit a proposal to the General Shareholders’directly to the President. The Internal Audit Office performs regular

Meeting regarding the dismissal or non-reappointment of the Accounting

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

(Millions of yen)

Auditor, after the passage of a resolution by the Audit & Supervisory
Fiscal year ended March 31,
2021

Committee.
Category(vi) Evaluation of the Accounting Auditor by the Audit & Supervisory
Committee
After having evaluated, in accordance with the Accounting Auditor
Selection and Evaluation Standards determined by the Audit &Supervisory Committee, the quality control status of the audit firm, theexpertise, independence and system for the execution of duties of theaudit team, and the Group audits conducted in cooperation with overseas

Fiscal year ended March 31,
2022

Compensation
Compensation
Compensation
Compensation
for statutory
for statutory
for non-audit
for non-audit
audit
audit
operations
operations
operations
operations

The company

—

—

—

—

Consolidated
subsidiaries

107

10

127

37

Total

107

10

127

37

network firms, the Company has determined that there is no problem in
There was no compensation for non-audit operations at the Company

any of the above.

in either the fiscal year ended March 31, 2021 or the fiscal year ended
March 31, 2022.

(4) Compensation to audit firm

The non-audit operations at consolidated subsidiaries were tax(i) Compensation paid to the audit firm(Millions of yen)

Fiscal year ended March 31,
2021
Category

Fiscal year ended March 31,
2022

Compensation
Compensation
Compensation
Compensation
for statutory
for statutory
for non-audit
for non-audit
audit
audit
operations
operations
operations
operations

The company

75

1

56

1

Consolidated
subsidiaries

40

—

73

—

Total

116

1

129

1

advisory services in both the fiscal year ended March 31, 2021 and thefiscal year ended March 31, 2022.
(iii) Compensation for other key audit certification work
(Fiscal year ended March 31, 2021)
None.
(Fiscal year ended March 31, 2022)
None.
(iv) Policy on determining audit compensation
The Company’s policy on determining compensation for audits

The non-audit operations provided by the audit firm for which theCompany paid compensation in both the fiscal year ended March 31,
2021 and the fiscal year ended March 31, 2022 were guidance andadvice regarding the preparation of English financial statements.
There was no compensation for non-audit operations at consolidated
subsidiaries in either the fiscal year ended March 31, 2021 or the fiscal
year ended March 31, 2022.
(ii) Compensation paid to organizations belonging to the international
auditing network of the Ernst & Young Group, with which the audit
firm is affiliated (excluding (i))

conducted by the audit firm as Accounting Auditor takes into accountsuch factors as the scale of the Company’s business operations,
number of days required to conduct audits, and the characteristicsof the services provided.
(v) Reason for the Audit & Supervisory Committee’s consent to
Accounting Auditor compensation
The reason why the Company’s Audit & Supervisory Committee gaveconsent provided under Article 399, Paragraph 1 of the Companies Act
to compensation paid to the Accounting Auditor is that audit hours andcompensation in the fiscal year ended March 31, 2022 were judged
to be appropriate as a result of comparisons with audit hours andcompensation in the previous fiscal year and comparisons with the audit
compensation of companies of the same scale and companies in thesame industry.

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

35

3. Executive Remuneration(1) Matters regarding policies on determination of the amount or
calculation method of executive remuneration

determined according to the degree of deviation from the base amountdetermined by the Remuneration & Nomination Committee, and then

The Company’s basic policy and determination process regarding themultiplying the result by a pre-determined coefficient (no greater than

executive remuneration system is as described below.

1.5 and no less than 0.5) in accordance with the relative growth rate of

In order to ensure the objectivity and transparency of the Executive

the Company in the peer group determined by the Remuneration &Remuneration System, the Company has at its discretion established a

Nomination Committee. Performance-linked remuneration (monetary)

Remuneration & Nomination Committee, of which the majority is formed

shall be paid once a year after the business results for each fiscal year

by independent outside directors and the chairperson is an independent

are determined.

outside director. The Board of Directors establishes the Basic Policy on• The Company offers restricted stock remuneration in order to provide

the Executive Remuneration System based on consultation with thisa long-term incentive to directors (excluding directors who are Audit &committee, and the committee decides the individual amounts and theSupervisory Committee members) to work to achieve sustained growth

nature of remuneration for directors (excluding directors who are Audit &and to enhance corporate value, as well as to encourage them to have

Supervisory Committee members) in accordance with the Basic Policy onan even greater sense of shared value with shareholders. Such a

the Executive Remuneration System established by the Board ofprogram is offered because it provides a sustained incentive to bolster

Directors, based on the authority granted to it by the Board of Directors.

the share price when it is down and because it serves as a replacement
for the discontinued retirement allowance for directors. The

Basic Policy on the Executive Remuneration System

Remuneration & Nomination Committee determines the remuneration

Directors (excluding Directors who are Audit & Supervisory Committee

value of the restricted stock, taking into account the balance with theMembers):

monetary remuneration. The restricted stock is granted once annually• Remuneration for Executive Directors shall comprise fixedduring the second quarter.

remuneration (monetary), performance-linked remuneration (monetary),and restricted stock remuneration. The ratio for the President andDirectors who are Audit & Supervisory Committee Members:

Representative Director shall be approximately 10:9 (base remuneration• In consideration of independence from management, only monetaryamount, which varies depending on performance):10. For other
Executive Directors, the ratio shall be determined on an individual

remuneration shall be made.
• Fixed remuneration (monetary) shall be determined based upon role,basis, taking into account earnings performance and other achievements

remuneration in past years, the need to retain talented humanin the director’s realm of responsibility. Directors who additionally serve

resources, research by specialized third-party organizations,in such roles as directors of subsidiaries may also receive

remuneration trends at comparable companies, and economic

remuneration from the relevant subsidiary.

conditions. Fixed remuneration (monetary) shall be paid monthly.

• Remuneration for Non-Executive Directors and outside directors shallcomprise fixed remuneration (monetary) and restricted stock

Director Remuneration Determination Process

remuneration. The ratio shall be approximately 4:1.

• Individual amounts and the nature of remuneration for directors• Fixed remuneration (monetary) shall be determined based upon role,(excluding directors who are Audit & Supervisory Committee members)

remuneration in past years, the company performance to date, theshall be determined by the Remuneration & Nomination Committee

need to retain talented human resources, research by specializedbased on the Basic Policy on the Executive Remuneration Systemthird-party organizations, remuneration trends at comparable

established by the Board of Directors.

companies, and economic conditions. Fixed remuneration (monetary)shall be paid monthly.
• For the President and Representative Director, the amount of
performance-linked remuneration (monetary) is calculated using
consolidated net sales and consolidated operating income as metrics,

36• Individual amounts and the nature of remuneration for directors who
are Audit & Supervisory Committee members shall be determined via
discussions by the directors who are Audit & Supervisory Committee
members, with reference made to the basic policy determined by the
Board of Directors.

in order to strive for growth that strikes a balance between scale and• Individual amounts and the nature of remuneration shall be set within

profitability. Specifically, the amount of performance-linked remuneration

the confines of the remuneration allocation approved at the Generalis obtained by multiplying the basic remuneration amount (¥90 million)

Shareholders’ Meeting and shall be determined based upon a

by a multiple (no greater than 400% and no less than 0%) that is pre-comprehensive consideration of annual earnings and each director’s

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

performance in his or her role and contribution to corporate earnings,

remuneration trends at comparable companies, and economic

remuneration in past years, the need to retain talented humanconditions.

resources, research by specialized third-party organizations,(2) Total remuneration paid to directors, total remuneration for each category of directors, and the total number of directors
Remuneration breakdown (Millions of yen)
Total remuneration(Millions of yen)

Executive category

Fixed remuneration

Performance-linked
remuneration

Restricted stock
remuneration

Numberof individuals

Directors (excluding Audit &Supervisory Committee Members)(Outside Directors)

506
(59)

151
(48)

243
(—)

111
(11)

6
(4)

Directors (Audit & Supervisory
Committee Members)(Outside Directors)

48
(48)

48
(48)

—
(—)

—
(—)

3
(3)

Total
(Outside Directors)

554
(107)

199
(96)

243
(—)

111
(11)

9
(7)

Notes: 1. It was approved at the 38th Annual Shareholders’ Meeting held on June 22, 2018 that the monetary remuneration limit for directors (excluding directors who are Audit & Supervisory Committee members) for the fiscal year
ended March 31, 2022 shall be no more than ¥600 million per year (of which ¥48 million is earmarked for outside directors). There were five directors (excluding directors who are Audit & Supervisory Committee members) at
the conclusion of the 38th Annual Shareholders’ Meeting (of whom three were outside directors). Additionally, the monetary remuneration limit for directors (excluding directors who are Audit & Supervisory Committee
members) has been revised to no more than ¥1,200 million per year (of which ¥96 million is earmarked for outside directors) at the 42nd Annual Shareholders’ Meeting held on June 23, 2022. There were 10 directors(excluding directors who are Audit & Supervisory Committee members) at the conclusion of the 42nd Annual Shareholders’ Meeting (of whom six were outside directors).
2. It was approved at the 41st Annual Shareholders’ Meeting held on June 25, 2021 that the limit for remuneration as restricted stock remuneration for directors (excluding directors who are Audit & Supervisory Committee members)
for the fiscal year ended March 31, 2022 shall be no more than ¥400 million per year (of which ¥32 million is earmarked for outside directors). There were six directors (excluding directors who are Audit & Supervisory Committee
members) at the conclusion of the 41st Annual Shareholders’ Meeting (of whom five were outside directors). In addition, the limit for remuneration as restricted stock remuneration for directors (excluding directors who are Audit &Supervisory Committee members) has been revised to no more than ¥800 million per year (of which ¥64 million is earmarked for outside directors) at the 42nd Annual Shareholders’ Meeting held on June 23, 2022. There were 10
directors (excluding directors who are Audit & Supervisory Committee members) at the conclusion of the 42nd Annual Shareholders’ Meeting (of whom six were outside directors).
3. It was approved at the 38th Annual Shareholders’ Meeting held on June 22, 2018 that the remuneration limit for directors who are Audit & Supervisory Committee members shall be no more than ¥80 million per year. As of
the conclusion of the 38th Annual Shareholders’ Meeting, the number of directors who are Audit & Supervisory Committee members was three.
4. The above includes one director (who is not an Audit & Supervisory Committee member) who retired as of the conclusion of the 41st Annual Shareholders’ Meeting held on June 25, 2021.
5. It was approved at the 28th Annual Shareholders’ Meeting held on June 21, 2008 to abolish the retirement allowance plan for directors and corporate auditors and to pay the directors and corporate auditors, who continued to
be in office after the conclusion of the said shareholders’ meeting, a retirement allowance corresponding to their terms of office until the abolishment of the retirement allowance plan at the time of retirement of each director
and corporate auditor. Based on this resolution, ¥32 million in retirement allowance was paid to one director (who is not an Audit & Supervisory Committee member) who retired during the fiscal year ended March 31, 2022, in
addition to the above remuneration, etc.

(3) Total amount, etc., of total consolidated remuneration of executives who received ¥100 million or more
Consolidated total remuneration breakdown (Millions of yen)

Name

Total consolidated
remuneration(Millions of yen)

Executive category

Company category

Yosuke Matsuda

443

Director

The Company

Fixed remuneration

Performance-linked
remuneration

Restricted stock
remuneration

100

243

99

4. Matters Relating to the Company’s Holdings of Shares(1) Standards and concepts for categorizing investments in sharesbalance sheet within the Group, is as follows:

The Group’s policy is to categorize shares acquired for the purpose ofprofiting from value fluctuations or associated dividends as shares held
for purely investment purposes and those acquired for the purposes ofbusiness alliances or trade relationships as shares held for purposes
other than purely investment purposes.

a. Investments in shares for purposes other than purely investment
purposes(i) Shareholding policy, method of assessing rationale of shareholdings,
and nature of Board of Directors’ assessment of appropriateness ofholding individual issues(2) Status of shareholdings at Square Enix Co., Ltd.

The Company’s basic policy is to hold publicly traded shares for the

As of March 31, 2022, the status of shareholdings by Square Enix Co.,

purpose of strengthening business alliances or trade relationships inLtd., which has the largest amount of investment securities on its

instances where doing so will contribute to the enhancement of its

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 202237

corporate value over the medium or long term. Each year the Board of
Directors and other bodies validate the rationale for holding listed
shares by reviewing the status of achievement of the intended(iii) Number of shares, balance sheet value, and other information on“specified investment equity securities held” or “deemed holdingsof equity securities” by issue

objective of the holdings and determining whether to continue holding“Specified investment equity securities held”

the shares. The approach to assessing the appropriateness of holding

Fiscal year
ended March
31, 2022
Number ofsharesindividual issues is wholistic, involving the performance of quantitative
reviews of current and future earnings conditions and qualitative
Companies inwhich sharesare heldreviews on the status of achieving the intended purpose.
(ii) Number of issues and balance sheet value
Category

Companies inwhich sharesare held

Total amount presented
on balance sheets(Millions of yen)

Unlisted shares

20

Shares otherthan those above

1

174(Issues for which the number of shares held increased in the fiscal year
ended March 31, 2022)

Category

Companiesin whichshares areheld

Amountpresented onbalance sheets(Millions of yen)

Fiscal year
ended March
Purpose of31, 2021
holdings,
Number ofquantitative
sharesSquare Enix
benefits ofHoldings
Amountholdings &shareholders
presented onreason forbalanceincrease in
sheetsshareholdings(Millions ofyen)

379,784

379,784

174273

and factory, inc

To maintainand enhance
the business
partnership
involving the“MANGA UP!”
manga app

None

Note: Describing the benefits of shareholdings in quantitative terms is difficult. The Board of Directors
validates the rationale for the holdings annually by reviewing the status of achieving the intended
purpose and determining whether to maintain the holdings.

Total acquisition
cost related toincrease inshareholdings(Millions of yen)

Reason for increasein shareholdings“Deemed holdings of equity securities”
None.

Unlisted shares

1

87

To obtain blockchain
technology and expertise for
operating UGC (User
Generated Content) games

Shares otherthan those
above

—

—

—

b. Investments in shares for purely investment purposes
None.
(3) Status of the Company’s shareholdings(Issues for which the number of shares held declined in the fiscal year
ended March 31, 2022)
None.

a. Investments in shares for purposes other than purely investment
purposes(i) Shareholding policy, method of assessing rationale of shareholdings,
and nature of Board of Directors’ assessment of appropriateness ofholding individual issues
The Company’s basic policy is to hold publicly traded shares for the
purpose of strengthening business alliances or trade relationships ininstances where doing so will contribute to the enhancement of its
corporate value over the medium or long term. Each year the Boardof Directors and other bodies validate the rationale for holding listed
shares by reviewing the status of achievement of the intended objectiveof the holdings and determining whether to continue holding theshares. The approach to assessing the appropriateness of holding
individual issues is wholistic, involving the performance of quantitative
reviews of current and future earnings conditions and qualitative
reviews on the status of achieving the intended purpose.

38

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

(ii) Number of issues and balance sheet value
Category

Companies inwhich sharesare heldb. Investments in shares for purely investment purposes
Fiscal year ended March 31,
2022

Total amount presented
on balance sheets(Millions of yen)

Fiscal year ended March 31,
2021

Category

Companies inwhich sharesare held

Total amountpresented onbalancesheets(Millions ofyen)Companies inwhich sharesare held

Total amountpresented onbalancesheets(Millions ofyen)(Issues for which the number of shares held increased in the fiscal year

Unlisted shares

4

0

4

0

ended March 31, 2022)

Shares otherthan those
above

2

54

2

75

Unlisted shares

128

Shares otherthan those above

—

—

None.
(Issues for which the number of shares held declined in the fiscal year
ended March 31, 2022)

Fiscal year ended March 31, 2022

None.
Category

Total dividends
received

Total gain on saleof shares

Total gain on
revaluation ofsharesUnlisted shares——

Note 1

Shares other thanthose above

0

—

41
(—)

(iii) Number of shares, balance sheet value, and other information on“specified investment equity securities held” or “deemed holdings ofequity securities” by issue“Specified investment equity securities held”
None.
“Deemed holdings of equity securities”

Notes: 1. No total valuation gain/loss figure is provided for non-listed shares as they have no market prices.
2. Figures denoted with parentheses under “Total valuation gain/loss” indicate impairment losses forthe fiscal year in question.

None.

5. IR Activities
The Company’s basic policy is to disclose information in a timely

The Company conducts overseas roadshows for foreign investors three

and appropriate manner in order to deliver useful information to its

times a year where the President and Representative Director and Chief

investors. In particular, the Company discloses in a timely fashion

Strategy Officer provide briefings. Moreover, the Company strives toinformation with significant impact on investment decisions in

engage in constructive dialogues with capital markets via individual

accordance with the Timely Disclosure Rules set forth under the

meetings and small group meetings.

Financial Instruments and Exchange Act and by the Tokyo Stock

The Company hosts an IR conference after the Annual Shareholders’Exchange, and proactively discloses other information determined to

Meeting for individual investors. The briefing is delivered by the President

be useful to promoting understanding of the Company. The Company’s

and Representative Director and subsidiary executives.

general principles of IR activities are as follows.
Briefing sessions are held quarterly for institutional investors and

The Company posts earnings summaries, financial results briefing
materials (including the briefing by the President and Representative

analysts, with the President and Representative Director and Chief

Director), securities filings, annual reports, Annual Shareholders’ Meeting

Strategy Officer or Chief Accounting Officer providing the briefings.

convocation notices, and other items on its website.

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

39

Executive Members

Yosuke Matsuda
President and Representative
Director
Shares owned:

Takashi Kiryu
Director
Shares owned:

Yoshinori Kitase
Director
1,471 shares

Shares owned:

Yukihiro Yamamura
Director*

Yu Miyake
Director
2,373 shares

Shares owned:

5,023 shares

Shares owned:

1,051 shares

35,238 shares

Yuji Nishiura
Director*
Shares owned:

As of July 31, 2022

Masato Ogawa
Director*
1,051 shares

Shares owned:

Mitsuko Okamoto
Director*
1,051 shares

Shares owned:

Abdullah Aldawood
Director*
1,051 shares

Naoto Takano
Director*
Shares owned:

502 shares

Executive Officers
Takashi Kiryu

Chief Strategy Officer

Atsushi Matsuda

Chief Accounting Officer

Hajime Seki

Chief Legal Officer

Tsuneto Okuno

Chief Human Resources Officer

Hideaki Sato

Chief Information Officer

John Heinecke
Nobuyuki Iwamoto
Director(Standing Audit & Supervisory
Committee Member)*Tadao Toyoshima
Director(Audit & Supervisory
Committee Member)*Yasuhiro Fukushima
Honorary Chairman*Outside Directors as defined in Article 2-15 of Japan’s Companies Act

40

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

Hajime Shinji
Director(Audit & Supervisory
Committee Member)*Chief Publishing Officer(EMEA, Americas and Oceania)

Tomoyoshi Osaki

Chief Publishing Officer(Japan and Asia)

Skills Matrix for Directors
Finance/accounting

Organizational/
talentdevelopment

●

●

●

●

●

●

●

Director●●●

Director●●●

Outside Director●●

Outside Director●●

Outside Director

●

●

Name

Role

Corporate mgt/
global mgt

Mediaentertainment

YosukePresident andRepresentative Director●

Director
Chief Strategy Officer
Executive Officer

MatsudaTakashi
Kiryu

Yoshinori
KitaseYu
MiyakeYukihiro
Yamamura

Yuji
Nishiura

MasatoOgawa

MitsukoOkamotoAbdullah
Aldawood

Naoto
TakanoNobuyuki
IwamotoTadao
Toyoshima

HajimeShinji

Outside DirectorIT/
technology

Legal/riskmanagement

●

●

●

●

●

●

●

Outside Director●

Outside Director

●

●

●

Outside Director(Standing Audit &Supervisory Committee
Member)

●

●

●

●

●

●

Outside Director(Audit & Supervisory
Committee Member)●●

Outside Director(Audit & Supervisory
Committee Member)●●

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

41

Words from Our New Directors
The Square Enix Group creates a wide range of content and provides it to customers all over the world. Increasingly
sophisticated technologies, devices, and infrastructure are producing dramatic changes to the Group’s businessenvironment. Armed with passion, professionalism, and creativity, each and every one of its employees is working on
the front lines of that change, devoting themselves to the creative process as they strive to deliver exciting content thatmeets or exceeds customer’s expectations.
I also count myself among the Group’s customers. From my childhood to this very day, engaging with the Group’scontent has often excited and moved me in ways that nothing else can. I have also on numerous occasions seen people
who do not share a common language or culture open up to one another because they have shared some content-based
experience. I firmly believe that superior content has the power to create bonds across national borders and generations,leading society in a positive direction.
Takashi Kiryu
Director

I never want to lose sight of the customer’s perspective. I will devote myself to the development of an environment thatallows us to continue to create excitement and contribute to society, as well as to ensuring that we get even more customers tolook forward to engaging with our content because they know it will provide them with an experience that enrichens their lives.

I studied filmmaking for a time in university. In those days, cinema was considered a composite art form because it
included everything from music to painting and architecture to dance. I see what the Square Enix Group creates ascontent that goes beyond a composite art form because it also involves the element of interactivity.
The environment in which the Group finds itself is undergoing dramatic change. This is marked by advances in
hardware such as CPUs and GPUs, the increased availability of network infrastructure such as 5G and the cloud, the riseof business models such as free-to-play and subscriptions, and technological innovations such as AI and blockchain.
These environmental changes do not exist apart from the content itself but are rather key elements that are incorporated
into content design and thereby spur further evolution.
The Square Enix Group is home to individuals who possess talents covering a wide expanse of domains, ranging
from the artistic to cutting-edge technologies. The Group derives its strength from the environment it has created thatallows those talents to connect organically. As someone who has been involved in game development for 32 years, I want
to remind myself of that strength and continue contributing to the Group’s development by leveraging my perspective

Yoshinori Kitase
Directorfrom the inside of content production.

I joined Enix as a part-timer in 1989. I started out in the Dragon Quest section, handling publication sales and advertising
work related to Dragon Quest books and the launch of the Monthly Shonen Gangan manga magazine. Then, in 1997,
I was transferred to the production department for game software. Since then, I have spent more than two decades
involved in game production, with a focus on Dragon Quest titles.
The game industry has evolved dramatically over the past 30 years or so. This evolution has naturally involved
technological progress, but also changes in business models, as well as growth in the number of media outlets, thecustomer base, and geographic sales coverage. During that time, the Square Enix Group has kept abreast of thoseenvironmental changes, staying half a step ahead of its customers’ expectations so that it could consistently produce
content that we ourselves find seriously exciting.
In my view, the strengths that have enabled the Square Enix Group to do that lie in a free corporate culture allowing
Yu Miyake
Director

new ideas and exciting experiments, as well as in its talented employees who bring those to life as content. I will leverage
the frontline experiences and knowledge I have gained in over three decades in the game entertainment industry anddevote my utmost to ensuring that the Square Enix Group can continue to produce content that is even fresher and more
exciting than ever before as it addresses an evolving, changing, growing market.

42

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

I believe that the history of the Square Enix Group has been carved by innovation—innovation that has grown along with
its people and always put the Group at the forefront of its times.
We now find ourselves in a world of greatly changing economic and social dynamics.
People’s lifestyles have also changed significantly over the past several years. The cultural environment and our
infrastructure have also undergone substantial change.
Against this backdrop, I believe that as a provider of entertainment content, the Square Enix Group needs more thanever before to equip itself with a management style and corporate culture that enables it to continue to take on new
fields and domains, while staying rooted in its history and traditions. Possessing a diversity of values, ideas, and technicalabilities like none ever seen before is of growing importance.
I have a broad range of experience in the fields of finance and corporate management. I am confident that my
Naoto Takano
Outside Director

experience in banking, securities/leasing/investment banking, and venture investments in Western markets, and mymanagement experience at US firms in particular, will add diversity to the management of Square Enix Holdings andcontribute to the development of its business strategy. I thank you all in advance for your support.

As a longtime fan of Dragon Quest and Final Fantasy, I have been extremely interested in the Square Enix Group since mytwenties. I had also respected it as a company that provides superb and highly creative entertainment.
I could not be more honored by having the opportunity to take part in the management of such an amazingly creative
company as an outside director and its Audit & Supervisory Committee Member.
For many years, I worked in various aspects of the financial industry, including funding and investment management.
In addition, I have executive management experience involving HR, finance, corporate planning, and overseas entities.
This means that my work experience has been in completely different fields, but I believe that much of thatexperience will prove relevant from the perspective of corporate management.
I will work to ensure that I can contribute to the global growth of the Square Enix Group by leveraging my many yearsof experience in corporate management.
Nobuyuki Iwamoto
Outside Director (Standing Audit& Supervisory Committee
Member)SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

43

History

Feb. 1980

Established a real estate sales and brokerage company Kabushiki-Kaisha Eidansya Fudousan (common stock: ¥5 million; 3-18-12, Toranomon,
Minato-ku, Tokyo, Japan) as a wholly owned subsidiary of Eidansya-Bosyu Service Center Corporation.

Aug. 1981

Changed company name to Kabushiki-Kaisha Eidansya System. Moved the headquarters to 7-15-10, Nishi-shinjuku, Shinjuku-ku, Tokyo, Japan.

Aug. 1982

Changed company name to ENIX CORPORATION.

Oct. 1983

Established Kabushiki-Kaisha Konishiroku Enix jointly with Konishiroku Photo Industry Co., Ltd. and other companies. (common stock: ¥60 million;
Kita-ku, Tokyo, Japan; shareholding of ENIX CORPORATION was 50.6% at the time of the establishment and decreased to 49% from June 1984.
Kabushiki-Kaisha Konishiroku Enix was renamed KONIKA ENIX Kabushiki-Kaisha in October 1987.)

Jan. 1984

Moved the headquarters to 7-1-8, Nishi-shinjuku, Shinjuku-ku, Tokyo, Japan.

Apr. 1986

Moved the headquarters to 8-20-2, Nishi-shinjuku, Shinjuku-ku, Tokyo, Japan.

Mar. 1988

Established Enix Products Kabushiki-Kaisha, a company developing and selling publications and character goods. (common stock: ¥30 million;
a wholly owned subsidiary of ENIX CORPORATION; Shinjuku-ku, Tokyo, Japan)

Apr. 1989

ENIX CORPORATION, Eidansya-Bosyu Service Center Corporation, KONIKA ENIX Kabushiki-Kaisha, Enix Products Kabushiki-Kaisha merged andrenamed as ENIX CORPORATION. Moved the headquarters to 7-5-25, Nishi-shinjuku, Shinjuku-ku, Tokyo, Japan.

Feb. 1991

ENIX CORPORATION stock was registered with the Japan Securities Dealers Association (presently Jasdaq Securities Exchange, Inc.) for over-thecounter trading.

Aug. 1996

Moved the headquarters to 4-31-8, Yoyogi, Shibuya-ku, Tokyo, Japan.

Aug. 1999

ENIX CORPORATION was listed on the First Section of the Tokyo Stock Exchange.

Apr. 2003

ENIX CORPORATION and SQUARE CO., LTD. merged and the new company was subsequently renamed SQUARE ENIX CO., LTD.

Aug. 2003

Moved the headquarters to 3-22-7, Yoyogi, Shibuya-ku, Tokyo, Japan.

Jul. 2004

Applied new management systems to subsidiaries in North America and Europe and renamed them SQUARE ENIX, INC. and SQUARE ENIX LTD.
to unify corporate brand names in the global market.

Jan. 2005

Established SQUARE ENIX (China) CO., LTD. (Beijing, China) as a wholly owned subsidiary.

Sep. 2005

Acquired TAITO CORPORATION as a consolidated subsidiary (TAITO became a wholly owned subsidiary in March 2006).

Nov. 2006

Established SQUARE ENIX OF AMERICA HOLDINGS, INC. (Los Angeles, California, U.S.A.) as a holding company to control management andoperations of the Company's subsidiaries in North America.

Oct. 2008

Applied a pure holding company system and subsequently renamed the Company SQUARE ENIX HOLDINGS CO., LTD.

Apr. 2009

Acquired EIDOS PLC. as a wholly owned subsidiary.

Oct. 2012

Moved the headquarters to 6-27-30, Shinjuku, Shinjuku-ku, Tokyo, Japan.

Jun. 2018

Transitioned to a Company with an Audit & Supervisory Committee.

Apr. 2022

Transitioned from the First Section to the Prime Market of the Tokyo Stock Exchange in conjunction with the revision of the market categories
by the Tokyo Stock Exchange.

A history of establishments and mergers of formal andsubstantial surviving companies

SQUARE CO., LTD.

Established on Jul. 11, 1966

Abolished due to merger on Apr. 1, 2003

Eidansya-Bosyu Service
Center Corporation
Established on Sep. 22, 1975
Formal surviving company

100% shareholding

ENIX CORPORATIONSQUARE ENIX CO., LTD.

SQUARE ENIX HOLDINGS CO., LTD.

Renamed on Apr. 1, 1989

Renamed on Apr. 1, 2003

Renamed on Oct. 1, 2008
To present

Kabushiki-Kaisha
Eidansya Fudousan

Kabushiki-Kaisha
Eidansya System

ENIX CORPORATION

Established on Feb. 5, 1980
Substantial surviving company

Renamed on Aug. 18, 1981

Renamed on Aug. 30, 1982

100% shareholding

Enix Products KabushikiKaisha
50.6% shareholding

44

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

Abolished due to merger
on Apr. 1, 1989

Same as above

Renamed on Mar. 24, 1988

Kabushiki-Kaisha
Konishiroku Enix

KONIKA ENIX KabushikiKaisha

Established on Oct. 17, 1983

Renamed on Oct. 21, 1987
Became a wholly owned subsidiary of
ENIX CORPORATION on Jan. 4, 1989

Same as above

Corporate Data

As of August 31, 2022

Company Profile
Headquarters: SHINJUKU EASTSIDE SQUARE
6-27-30 Shinjuku, Shinjuku-ku,
Tokyo 160-8430, Japan
Tel.: +81-3-5292-8000

Established: September 22, 1975
Common stock: ¥24,039 million
Number of employees: 5,637 (Consolidated) (As of March 31, 2022)
Note: Number of part-time employees is not included in the number of employees.

Corporate Offices
Development Studios

SQUARE ENIX HOLDINGS Group
EstablishedFiscalYear-End

CommonStock

Percentage of
Voting Rights

SQUARE ENIX CO., LTD.

October 2008

March

¥1,500 million

100.0%

Digital entertainment, amusement, publication, merchandising

TAITO CORPORATION

June 2009March¥50 million

100.0%

Digital entertainment, amusement, merchandising

Luminous Productions Co., Ltd.

July 2018

March¥5 million

100.0%

Planning and development of entertainment products andservices such as games

March 2020

March

¥60 million

100.0%

R&D/business involving products that combine AI,
computer graphics, and art

November 2006

March

US$1

100.0%

Holding of shares in and business management of Square Enix
Group companies located in the Americas

March 1989

March

US$10 million

100.0%(100.0%)Digital entertainment, publication, merchandising in the North
American market

December 1998

March

GB£145 million

100.0%

Holding of shares in and business management of Square Enix
Group companies located in Europe and digital entertainment,
publication and merchandising in Europe

SQUARE ENIX (China) CO., LTD.

January 2005

December

US$12 million

100.0%

Digital entertainment in China

HUANG LONG CO., LTD.

August 2005

December

10 million yuan RMB—[100.0%]

Sale and management of online games in Asia

SQUARE ENIX PVT. LTD.

September 2012

March

299 million INR

100.0%

Promotion, planning and publishing of entertainment products andservices in India

Company Name

Principal Lines of Business

Major Group CompaniesJapan

SQUARE ENIX AI & ARTS Alchemy Co., Ltd.

North America
SQUARE ENIX OF AMERICA HOLDINGS, INC.
SQUARE ENIX, INC.

EuropeSQUARE ENIX LTD.

Asia

Note: In the Percentage of Voting Rights column, numbers in parentheses ( ) represent the percentage of indirect holdings and are included in the total percentage of voting rights held by theCompany. Numbers in brackets [ ] represent the percentage of holdings of closely related parties and parties of the same interest and are excluded from the total percentage of voting rights
held by the Company.

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

45

Investor Information

As of March 31, 2022

Share Information

Shareholders’ Memo

Number of shares issued: 122,531,596

Fiscal year:
April 1 to March 31

Number of shareholders: 24,528

Record dates for dividends from retained earnings:
September 30 (Record date for interim dividend)
March 31 (Record date for year-end dividend)

Principal Shareholders
Investment in Square Enix
Rank Shareholder(Thousands of shares)(%)

Annual General Meeting of Shareholders:June

1

Yasuhiro Fukushima

23,62619.75

2

The Master Trust Bank of Japan, Ltd. (Trust Account)

17,857

14.93

3

Fukushima Planning Co., Ltd.

6,763

5.65

4

JP MORGAN CHASE BANK 380752

6,448

5.39

5

Custody Bank of Japan, Ltd. (Trust Account)

5,735

4.79

6

JP MORGAN CHASE BANK 380815

5,361

4.48

Inquiries and mailing address:
Securities Agency Division
Mitsubishi UFJ Trust and Banking Corporation
Shin-Tokyo Post Office Post-office Box No. 29,
137-8081
TEL.: 0120-232-711(Toll-free number within Japan)

7

THE BANK OF NEW YORK MELLON (INTERNATIONAL)
LIMITED 131800

2,511

2.09

Listed on:
Tokyo Stock Exchange

8

STATE STREET BANK WEST CLIENT - TREATY 505234

1,412

1.18

9

STATE STREET BANK AND TRUST COMPANY 505001

1,316

1.10

10

Michiko Fukushima

1,243

1.03

Administrator of the register of shareholders:
Mitsubishi UFJ Trust and Banking Corporation

Securities code:
9684
Trading unit:
100 shares
Public notices:
URL:
https://www.pronexus.co.jp/koukoku/9684/9684.html(Japanese)

Notes: 1. The Company holds 2,927,330 shares of treasury stock, which are excluded from the above table.
2. The holding ratio is calculated without the treasury shares (2,927,330).

Share Ownership (Thousands of shares)(Public notices will be announced in the Nikkei, a Japaneselanguage newspaper, in case an electronic notice is not possible
due to accident or other unavoidable reason.)(%)
100
Financial Institutions

80

Financial Instruments
Companies

60

Other Companies
Foreign Companies andIndividuals

40
20

Individuals and Other

0

2018

2019

2020

2021

2022

2018

46

2019

2020

2021

2022

Financial Institutions

21,626(17.7%)

26,562(21.7%)

26,065(21.3%)

24,395(19.9%)

26,224(21.4%)

Financial Instruments Companies

2,037(1.7%)

1,390(1.1%)

1,076(0.9%)

1,951(1.6%)

4,000(3.3%)

Other Companies

7,409(6.0%)

7,373(6.0%)

7,352(6.0%)

7,272(5.9%)

7,310(6.0%)

Foreign Companies and Individuals

54,920(44.9%)

50,459(41.2%)

52,087(42.5%)

55,273(45.1%)

51,033(41.6%)

Individuals and Other

36,404(29.7%)

36,745(30.0%)

35,948(29.3%)

33,638(27.5%)

33,962(27.7%)

Total

122,398 (100.0%)

SQUARE ENIX HOLDINGS CO., LTD. I Annual Report 2022

122,531 (100.0%)

122,531 (100.0%)

122,531 (100.0%)

122,531 (100.0%)