February 2,2004 - February 4,2004 - SQUARE ENIX

1 February 2,2004 - February 4,2004 . 1. Statements made in this document with respect to SQUARE ENIX CO., LTD. and consolidated subsidiaries'. (together, " SQUARE ENIX") plans, estimates, strategies and beliefs, including any forecasts or projections, are forward-looking statements about the future performance of SQUARE ENIX. These statements are based on management's assumptions and beliefs in light of information available to it at the time these material were drafted and, therefore, the reader should not place undue reliance on them. Also, the reader should not assume that statements made in this document will remain accurate or operative at a later time.

2 A number of factors could cause actual results to be materially different from and worse than those discussed in forward-looking statements. Such factors include, but are not limited to: 1. changes in economic conditions affecting our operations;. 2. fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the dollar and the Euro;. 3. our ability to continue to win acceptance of our products and services, which are offered in highly competitive markets characterized by the continuous introduction of new products and services, rapid developments in technology, and subjective and changing consumer preferences.

3 4. our ability to expand internationally successfully with a focus on our digital content business, online business and mobile business; and 5. regulatory developments and changes and our ability to respond and adapt to those changes. The forward-looking statements regarding earnings contained in these materials were valid at the time these material were drafted. SQUARE ENIX assumes no obligation to update or revise any forward-looking statements, including forecasts or projections, whether as a result of new information, subsequent events or otherwise. These statements are included pro-forma for historical data reflect the aggregation of former two companies' operating results (former ENIX and former SQUARE ).

4 2.. Who is SQUARE ENIX? . Environmental Changes and New Business Opportunities 3. Our Business Strategy 3. SQUARE ENIX holds two of the most successful game series. Japan US & Europe (as of September 30, 2003). (Million units) (Million units). I (NES&PS&Other) I (NES). II (NES&PS&Other) II (NES). III (NES) I&II (SNES&GB). III (NES&SNES&GB). IV (SNES&PS&Other). IV (NES&PS). V (SNES&PS). V (SNES). VI (SNES&PS). VI (SNES). VII (PS&PC). VII (PS). VIII (PS&PC). M (GB). IX (PS) M2 (GB). X&X-2 (PS2) M1&2 (PS). XI (PS2&PS/Online) MC (GBA). Kenshin Collection(NES&PS). 0 1 2 3 4 5 6 7. 0 1 2 3 4 5 6 7 8 9 10.

5 Sold over 47 million units worldwide. Sold over 31 million units worldwide. 4. SQUARE ENIX is the 5th largest digital content company in the world. Market Capitalization (as of January 27, 2004). (Millions of USD). NINTENDO 14,579. ELECTRONIC ARTS 14,562. Sony Computer Entertainment (SCE) 13,300. KONAMI 3,476. SQUARE ENIX 3,009. BANDAI 2,311. SEGA 1,672. ACTIVISION 1,593. NAMCO 1,425. TAKE-TWO INTERACTIVE SOFTWARE 1,413. NCSOFT COPORATION 1,194. KOEI 1,152. CAPCOM 710. THQ 672. ATARI 430. (Source: Bloomberg Data compiled by SQUARE ENIX.). (USD1=JPY110, USD1= , USD1=KRW1,170) (SCE's data is as of November 28, 2003 according to a Nikkei article.)

6 5. All business segments are expected to achieve profit margin of 20-40%. FY2003 (fiscal year ending March 31, 2004) Projections consolidated Segments Net Sales Billions of Yen Operating Income (Operating Margin). GAME (off-line) Includes two of million-seller titles (world-wide);. FINAL FANTASY X-2, and DRAGON QUEST V. ( ). The PlayOnline service has surpassed 500,000. GAME (on-line). registered users in Japan and North America, which are at the top level in the world. ( ). Cumulative subscribers of Cross Gate (PC- (PC-based online game) in China and Taiwan has reached Mobilephone 12 million, and is currently one of most popular China.)

7 Online games in China. Content ( ). Sales have doubled since last fiscal year. Publishing Entry into the North American market has also started. ( ). Strong sales of magazines and comics thanks to Others the phenomenal hit of FULLMETAL ALCHEMIST . ALCHEMIST . ( ). consolidated * ( ). * Net of elimination and headquarters expenses of Yen billion. 6.. Who is SQUARE ENIX? . Environmental Changes and New Business Opportunities 3. Our Business Strategy 7. US/European markets growing, while the Japanese market continues to saturate. Console-based World-wide Game Software Market (Millions of USD).

8 15,000. Europe&Others 10,000. North America 5,000. Japan 0. FY1994 1995 1996 1997 1998 1999 2000 2001 2002 2003E 2004E. * FY2002 is the fiscal year ended March 31, 2003. (Source:Company data collated by SQUARE ENIX). 8. Ecosystem in the game industry will change. Change of Business Environment Change of Ecosystem Game consoles are losing their advantages as a user interface Emergence of terminals as other terminals such as PCs that accommodate multiple become powerful in terms of entertainment content. graphic processing. Users are becoming Fundamental shift in increasingly interested in customer ownership.

9 Network entertainment. 9. Game consoles are losing their advantage as a user interface, and various terminals will accommodate multiple entertainment content. Terminal Now Mobile Game DVD CD Portable Future TV PC entertainment Phone Console Player Player device expansion Game Movie Game will be just one of many entertainment Type of Content Music content available on each terminal. TV. Program Terminals are being E-mail integrated each other to be multi-functional. Chat Phone 10. Users are becoming interested in network entertainment. 2003. Online Game Market Mobilephone Game Market 2007.

10 Sales Volume CAGR Sales Volume CAGR. (Million of USD) (%) (Million of USD) (%). Japan 97 211. 314 459. North 134 37. America 581 402 Europe 115 93. 735 877. Asia 139 214 448 1722. Source:INFORMA MEDIA GROUP The Dynamics of Games 3rd edition, August 2003 ). 11.. Network triggers fundamental shift in customer ownership. Now Future Content Network . Terminal PS/PS2 X-box Vertically integrated by terminal type Open network will break the vertical integration. Close relationship with console maker Close relationship with many of platform is important technology holders become important.