Outline of financial results for the nine months ended December 31, 2010 and earnings forecast for the fiscal year ending March 31, 2011
Outline | Presentation by the President (Text) | Q & A
Presentation (outline) by Yoshihiro Mori, Senior Managing Director, Nintendo Co., Ltd.
This outline is based on "Earnings Releases" and "Supplementary Information about Earnings Releases" for the 3rd quarter of the fiscal year ending March 31, 2011.
- (1) Briefing of financial results for the nine months ended December 31, 2010
- * Comparison with the same period of the previous fiscal year.
Net Sales: 807.9 billion yen -31.7%* Operating income: 158.7 billion yen -46.5%* Ordinary income: 80.4 billion yen -74.4%* Net income: 49.5 billion yen -74.3%*
(Main reasons for the decrease in net sales)
- Holiday-season sales in 2010 were robust in the United States and Europe, but unit sales for the nine-month period were down partly due to the fact that the monthly sales of "Nintendo DS" hardware and "Wii" hardware in the United States did not reach the sales level in the same period of the previous year, which had resulted in a record high in December 2009.
- Stronger yen against the US dollar and the Euro for this fiscal year caused a decrease in net sales by 70.1 billion yen year on year.
- Price reductions for "Wii" and "Nintendo DS" hardware from the last fiscal year to this fiscal year led to a drop in net sales year on year.
(Main reasons for the decrease in operating income)
Operating income was down mainly due to the decrease in net sales.
* Size of the decrease in operating income was larger than the one in net sales because of a higher proportion of selling, general and administrative expenses over net sales.
(Main reasons for the decrease in ordinary income)
Ordinary income was down mainly due to foreign exchange losses (84.4 billion yen) led by the appreciation of the yen as well as the decrease in operating income. During the nine-month period ended December 31, 2009, 9.9 billion yen of foreign exchange gains were recorded. - (2) Briefing of earnings forecast for the fiscal year ending March 31, 2011
- Consolidated earnings forecasts for the fiscal year are unchanged from the ones disclosed in the semi-annual earnings report released on October 28, 2010. (See below)
Estimated foreign exchange rates as of the end of the fiscal year remain unchanged.
(1 US Dollar = 85 yen, 1 Euro = 110 yen)
Net Sales: 1,100 billion yen Operating income: 210 billion yen Ordinary income: 145 billion yen Net income: 90 billion yen
(Revision of consolidated unit sales forecast for the fiscal year ending March 31, 2011)
Consolidated unit sales forecasts for this fiscal year have been revised to reflect the sales performance and the software sales units bundled with hardware through the December quarter, and the prospects for the March quarter. (See below)
* Numbers indicate the changes from the previous forecasts.Wii hardware 16 million units - 1.5 million units* Wii software 170 million units ＋32 million units* Nintendo DS hardware 18.5 million units -1 million units* Nintendo DS software 120 million units ＋10 million units* Nintendo 3DS hardware 4 million units No change* Nintendo 3DS software 15 million units No change*
While the unit sales forecasts for this fiscal year have been revised, the net sales forecast and the operating income forecast have not been revised. The reason is that the revised forecasts, reviewed based on the actual performance through December 2010 and the prospects in the March quarter, were not significantly different.
Forecasts referred to above are based upon management's assumptions with information available at the time the announcement was made and, therefore, involve known and unknown risks and uncertainties. Please note that such risks and uncertainties may cause actual results to be materially different from the forecasts (earnings forecast, dividend forecast and other forecasts).
Outline | Presentation by the President (Text) | Q & A
