Outline of consolidated financial results for the fiscal year ended March 31, 2013 and consolidated earnings forecast for the fiscal year ending March 31, 2014

Outline | Presentation by the President | Q & A

Yoshihiro Mori, Senior Managing Director, Nintendo Co., Ltd.

This outline is based on the documents "Earnings Release" and "Supplementary Information about Earnings Release" for the fiscal year ended March 31, 2013.

1. Briefing of consolidated financial results for the full fiscal year ended March 31, 2013

A. Consolidated operating results for the full fiscal year ended March 31, 2012 and 2013

	Year ended March 31, 2012	Year ended March 31, 2013	Comparison
Net Sales:	647.6 billion yen	635.4 billion yen	-1.9%
Gross Profit:	153.6 billion yen	140.3 billion yen	-8.7%
(Gross Profit Ratio)	(23.7%)	(22.1%)
Operating Income:	-37.3 billion yen	-36.4 billion yen	-
(Operating Income Ratio)	(-5.8%)	(-5.7%)
Ordinary Income:	-60.8 billion yen	10.4 billion yen	-
(Ordinary Income Ratio)	(-9.4%)	(1.6%)
Net Income:	-43.2 billion yen	7.0 billion yen	-
(Net Income Ratio)	(-6.7%)	(1.1%)

(Main reason for the decrease in net sales)
The net sales were down due to a large decrease in the unit sales of the "Wii" and "Nintendo DS" hardware and software despite the "Wii U" launch and the growth of the sales of "Nintendo 3DS."

(Gross profit ratio)
The gross profit ratio was 22.1%. There were both positive and negative factors contributing to this result; while there was an improvement in the profitability of the "Nintendo 3DS" hardware due to a decline in production costs, there was a decrease in overall product profitability due to the production costs of the "Wii U" hardware, released this fiscal year, being higher than its selling price.

(Main reason for operating loss)
Though selling, general and administrative expenses decreased compared to the previous fiscal year, they exceeded gross profit, which led to an operating loss situation for two consecutive fiscal terms.

(Main reason for ordinary income)
The main reason was that 39.5 billion yen of foreign exchange gains were produced as a result of the depreciation of the yen at the end of the period exceeding the operating loss.

B. The annual dividend per share for the fiscal year ended March 31, 2013
If our dividend policy is applied in accordance with the financial result, the annual dividend per share is 30 yen; however, the annual dividend per share for the fiscal year ended March 31, 2013 is 100 yen since it has been set to be the minimum dividend per share for this fiscal year.

2. Briefing of consolidated earnings forecast for the fiscal year ending March 31, 2014

Consolidated earnings forecasts for the fiscal year ending March 31, 2014 are as follows;

Net Sales:	920.0 billion yen
Operating Income:	100.0 billion yen
Ordinary Income:	90.0 billion yen
Net Income:	55.0 billion yen

The foreign exchange rate assumptions are 90 yen per U.S. dollar, and 120 yen per euro.

Forecasted unit sales for the full fiscal year ending March 31, 2014 are as follows;

Nintendo DS Hardware	-
Nintendo DS Software	10.0 million units
Nintendo 3DS Hardware	18.0 million units
Nintendo 3DS Software	80.0 million units
Wii Hardware	2.0 million units
Wii Software	20.0 million units
Wii U Hardware	9.0 million units
Wii U Software	38.0 million units

Note: Please also refer to "Earnings Release" for the fiscal year ended March 31, 2013 for the above forecast.

The forecasted annual dividend per share for the fiscal year ending March 31, 2014 is expected to be 260 yen provided the actual results meet the forecasts.

For the fiscal year ending March 31, 2014, we are preparing for many attractive games to be released continually so as to accelerate the spread of "Wii U" and "Nintendo 3DS," and we strive to improve the profitability of the hardware in order to revitalize the financial performance.

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 | Q & A