Outline of consolidated financial results for the fiscal year ended March 31, 2015 and consolidated earnings forecast for the fiscal year ending March 31, 2016

Outline | Presentation by the President | Q & A

Tatsumi Kimishima, 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, 2015.

1. Briefing of consolidated financial results for the fiscal year ended March 31, 2015

A. Consolidated operating results for the fiscal year ended March 31, 2014 and 2015

	Year ended March 31, 2014	Year ended March 31, 2015	Comparison
Net Sales	571.7 billion yen	549.7 billion yen	-3.8%
Gross Profit	163.2 billion yen	214.5 billion yen	31.5%
(Gross Profit Ratio)	(28.5%)	(39.0%)
Operating Income	-46.4 billion yen	24.7 billion yen	-
(Operating Income Ratio)	(-8.1%)	(4.5%)
Ordinary Income	6.0 billion yen	70.5 billion yen	-
(Ordinary Income Ratio)	(1.1%)	(12.8%)
Net Income	-23.2 billion yen	41.8 billion yen	-
(Net Income Ratio)	(-4.1%)	(7.6%)

(Net sales)
The sales units of the “Wii U” hardware and software increased with contributions from “Mario Kart 8” and “Super Smash Bros. for Wii U,” which became strong hit titles.
With respect to “Nintendo 3DS,” “New Nintendo 3DS/New Nintendo 3DS XL,” launched as the newest members of the “Nintendo 3DS” family, got off to a good start and continued to sell well, while the sales of the “Nintendo 3DS” hardware prior to the launch of “New Nintendo 3DS/New Nintendo 3DS XL” did not grow as anticipated. As a result, the sales units of the “Nintendo 3DS” hardware as a whole were down compared to the previous fiscal year. For the “Nintendo 3DS” software, “Pokémon Omega Ruby/Pokémon Alpha Sapphire” and “Super Smash Bros. for Nintendo 3DS,” enjoyed robust sales, and several popular first-party titles showed steady sales. There were also a number of hit titles from third-party publishers. However, the sales units of the “Nintendo 3DS” software were down compared to the previous fiscal year due to lower sales of the hardware that would have driven software sales.
As a result, the net sales were down compared to the previous fiscal year.

(Operating income)
Operating income was 24.7 billion yen, returning to the black, due to the improvement of the balance of revenue and expenses whereas the previous fiscal year resulted in an operating loss situation.

(Ordinary income)
The 34.0 billion yen of foreign exchange gains were produced as a result of the depreciation of the yen against the U.S. dollar at the end of this fiscal year compared to the exchange rate at the end of the previous fiscal year, which resulted in 70.5 billion yen of ordinary income.

B. The annual dividend per share for the fiscal year ended March 31, 2015

Based on our dividend policy, the annual dividend per share for the fiscal year ended March 31, 2015 is set at 180 yen.

2. Briefing of consolidated earnings forecast for the fiscal year ending March 31, 2016

Consolidated earnings forecasts for the fiscal year ending March 31, 2016 are as follows:

Net Sales	570.0 billion yen
Operating Income	50.0 billion yen
Ordinary Income	55.0 billion yen
Profit Attributable to Owners of Parent	35.0 billion yen

The foreign exchange rate assumptions are 120 yen per U.S. dollar, and 125 yen per euro.

Forecasted unit sales for the fiscal year ending March 31, 2016 are as follows:

Nintendo 3DS Hardware	7.6 million units
Nintendo 3DS Software	56.0 million units
Wii Hardware	0.1 million units
Wii Software	4.0 million units
Wii U Hardware	3.4 million units
Wii U Software	23.0 million units

Note: Please also refer to “Earnings Release” for the fiscal year ended March 31, 2015 for the above forecast.

The forecasted annual dividend per share for the fiscal year ending March 31, 2016 is expected to be 150 yen provided the actual results meet the forecasts.

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