Nintendo Co., Ltd.

CONSOLIDATED FINANCIAL HIGHLIGHTS
January 31, 2019
Nintendo Co., Ltd.
11-1 Hokotate-cho, Kamitoba,
Minami-ku, Kyoto 601-8501
Japan

Consolidated Results for the Nine Months Ended December 31, 2017 and 2018
(1) Consolidated operating results(Amounts below one million yen are rounded down)

Net sales

Operating profit

million yen%
997,295 16.4
857,012 175.5

Nine months ended December 31, 2018
Nine months ended December 31, 2017

Ordinary profit

million yen%
220,029 40.6
156,462 494.6

million yen%
240,268 23.5
194,563 296.2

Profit attributableto owners of parent
million yen%
168,785
135,165

24.9
31.3[Note]
Percentages for net sales, operating profit etc. show increase (decrease) from the same period of the previous fiscal year.

Profit per shareyen
1,405.08
1,125.53

Nine months ended December 31, 2018
Nine months ended December 31, 2017(2) Consolidated financial positions

As of December 31, 2018
As of March 31, 2018

Total assets

Net assets

million yen
1,821,251
1,633,474

million yen
1,424,396
1,323,574

Capital adequacy
ratio
%
77.9
80.8

Dividends

Year ended March 31, 2018Year ending March 31, 2019Year ending March 31, 2019
(forecast)End of 1st quarteryen-

End of 2nd quarteryen
110.00170.00

Dividend per share
End of 3rd quarter
yen
-

-

-

-

Year-end

Annualyen

yen

480.00590.00520.00690.00

Profit per share

Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2019Year ending March 31, 2019

Net sales

Operating profit

Ordinary profit

Profit attributableto owners of parent

million yen%
1,200,000 13.7

million yen%
225,000 26.7

million yen%
230,000 15.4

million yen%
165,000 18.2

[Notes]Percentages for net sales, operating profit etc. show increase (decrease) from the previous period.
Revisions to previously announced financial forecast: Not applicable

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yen
1,373.56

Nintendo Co., Ltd.

Others(1) Changes for important subsidiaries during the nine-month period ended December 31, 2018 : Not applicable(2) Application of peculiar methods for accounting procedures: Applicable(3) Changes in accounting procedures:
1) Related to accounting standard revisions etc.
2) Other changes
3) Changes in accounting estimates
4) Modified restatements: Not applicable: Not applicable: Not applicable: Not applicable(4) Outstanding shares (common shares)① Number of shares outstanding (including treasury shares)
As of Dec. 31, 2018 :
141,669,000 shares② Number of treasury shares
As of Dec. 31, 2018 :
21,544,042 shares③ Average number of shares
Nine months ended
120,125,485 sharesDec. 31, 2018 :As of Mar. 31, 2018 :

141,669,000 shares

As of Mar. 31, 2018 :

21,543,231 shares

Nine months ended
Dec. 31, 2017 :

120,089,943 shares[Notes]1. This earnings release report is not subject to audit by certified public accountant or audit firm.
2. Forecasts announced by the Company (Nintendo Co., Ltd.) referred to above were prepared based on management's assumptions with information available at this time andtherefore involve known and unknown risks and uncertainties. Please note such risks and uncertainties may cause the actual results to be materially different from the forecasts(earnings forecast, dividend forecast, and other forecasts).

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Nintendo Co., Ltd.

1. Consolidated Operating Results
For the nine months ended December 31, 2018, three Nintendo Switch titles became major hits with record sales, which helped
invigorate the platform. They are, Super Mario Party released in October, at 5.3 million units, Pokémon: Let's Go, Pikachu! andPokémon: Let's Go, Eevee! released in November, at 10 million units, and Super Smash Bros. Ultimate released in December, at 12.08
million units. In addition, sales of other titles and titles released by other software publishers continued to grow steadily, bringing thetotal number of million-seller titles during this period to 20, including the titles of other software publishers. During the holiday season,
software was a great driver of hardware sales, resulting in hardware sales of 14.49 million units (19.5% increase on a year-on-yearbasis) and software sales of 94.64 million units (100.9% increase on a year-on-year basis). Hardware sales of Nintendo 3DS, now in its
8th year since launch, were 2.31 million units sold (60.5% decrease on a year-on-year basis), while 11.08 million software units weresold (64.5% decrease on a year-on-year basis). Nintendo Entertainment System: NES Classic Edition and Super NintendoEntertainment System: Super NES Classic Edition recorded total sales of 5.83 million units.
Turning to our digital business for dedicated video game platforms, sales of download version of packaged software, download-only
software and add-on content for Nintendo Switch showed especially good growth, bringing digital sales to 84.2 billion yen (95.1%
increase on a year-on-year basis).
For smart devices, many consumers around the world enjoy Dragalia Lost, which was released during this period, in addition to ourpreviously-released titles. Our smart devices, IP related income was 33.3 billion yen (14.7% increase on a year-on-year basis).
Total sales reached 997.2 billion yen (of which overseas sales were 774.9 billion yen or 77.7% of the total sales). Operating profit
came to 220.0 billion yen, ordinary profit was 240.2 billion yen, and profit attributable to owners of parent totaled 168.7 billion yen.

2. Consolidated Financial Forecast
Major software titles slated for release on Nintendo Switch include New Super Mario Bros. U Deluxe in January and Yoshi's Crafted
World in March, as well as major titles planned by other software publishers. We aim to broaden the platform's user base by adding
new titles and strengthening sales of popular titles already in the market.
For Nintendo 3DS, we will continue to leverage the platform's rich software library and its hardware install base to further expand
sales of evergreen titles.
In the smart-device business, Mario Kart Tour was scheduled to be released this fiscal year, but in order to improve quality of theapplication and expand the content offerings after launch, the release date has been moved to summer 2019. As we endeavor to develop
future planned applications, we will also focus on continued service operations for applications that have already been released so that
consumers can enjoy playing them for a long time.
We have updated our Nintendo Switch and Nintendo 3DS unit sales forecasts, based on sales status for the nine months ended
December 31, 2018, as well as our future outlook. For details, please refer to “(4) Consolidated sales units, number of new titles, andsales units forecast” at page 8.
There are no changes to the financial forecast for this fiscal year originally published on April 26, 2018.

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Nintendo Co., Ltd.

3. Consolidated Balance Sheets
million yen

Description

As of March 31, 2018

As of December 31, 2018

(Assets)
Current assets
744,555

727,118

Notes and accounts receivable-trade69,829283,233

Securities

243,431

236,022

Inventories

141,795

181,839

Other

66,40552,034

(87)

(157)

1,265,929

1,480,090

Property, plant and equipment

83,92685,735Intangible assets

14,02013,843

Investments and other assets

269,597

241,582

Total non-current assets

367,544

341,160

1,633,474

1,821,251

Notes and accounts payable-trade138,015

156,374

Income taxes payable

43,39065,759Cash and deposits

Allowance for doubtful accounts
Total current assets
Non-current assets

Total assets(Liabilities)
Current liabilities

Provision

3,217

1,749

Other

93,452

142,257

Total current liabilities

278,076

366,141

Non-current liabilities
Net defined benefit liability

16,60914,078Other

15,213

16,635

Total non-current liabilities
Total liabilities

31,82230,713309,899

396,854

10,065

10,065(Net assets)
Shareholders' equity
Capital stock
Capital surplus

13,742

13,743Retained earnings

1,564,240

1,654,944

Treasury shares(250,679)(250,710)

Total shareholders' equity

1,337,369

1,428,043

Valuation difference on available-for-sale securities

16,402

18,344Foreign currency translation adjustment(34,736)(26,902)

Total accumulated other comprehensive income(18,334)(8,558)

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

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4,540

4,911

1,323,574

1,424,396

1,633,474

1,821,251

Nintendo Co., Ltd.

4. Consolidated Statements of Income
million yen

Description

Nine months ended December 31, 2017 Nine months ended December 31, 2018

Net sales

857,012997,295

Cost of sales

530,707588,222

Gross profit

326,305

409,073

Selling, general and administrative expenses

169,842

189,043

Operating profit

156,462220,029

Interest income

6,278

8,899

Foreign exchange gains

20,264

4,349

Share of profit of entities accounted for using equity method

8,646

5,132

Non-operating income

Other

3,685

2,087

Total non-operating income

38,874

20,469733

127

Non-operating expenses
Loss on redemption of securities
Other

39

103

Total non-operating expenses

772

230

194,563240,268

Gain on sales of non-current assets

821

1

Gain on sales of investment securities

490-

Reversal of loss on litigation

1,929

-

Total extraordinary income

3,240

1

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities

290

62

-

641

Loss on litigation

1,138

-

Total extraordinary losses

1,428

703

Profit before income taxes

196,375

239,566

Total income taxes

59,25370,384

Profit137,122

169,182

1,957

396

135,165

168,785

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 5-

Nintendo Co., Ltd.

5. Consolidated Statements of Comprehensive Income
million yen

Description

Nine months ended December 31, 2017 Nine months ended December 31, 2018

Profit137,122

169,182

Valuation difference on available-for-sale securities

3,896

1,912

Foreign currency translation adjustment

19,345

7,693

(404)

145

Other comprehensive income

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

22,837

9,751

159,960

178,933

157,900

178,561

2,059

371

(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

6. Notes Pertaining to Consolidated Financial Statements
Application of peculiar methods for accounting proceduresWith respect to certain consolidated subsidiaries, corporate income tax amount is calculated by taking the amountof profit before income taxes through the nine-month period ended December 31, 20182017 multiplied by reasonably
estimated annual effective tax rate with the effects of deferred taxes reflected.
Additional information
Effective beginning the three-month period ended June 30, 2018, Nintendo has adopted the "Partial Amendments
to Accounting Standard for Tax Effect Accounting, etc. (ASBJ Guidance No.28 of February 16, 2018)." As a resultof adoption, deferred tax assets have been classified in the section of investments and other assets, and deferred tax
liabilities have been classified in the section of non-current liabilities.

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Nintendo Co., Ltd.

7. Others
million yen(1)Consolidated sales informationJapan

The Americas

Europe

Other

Total

Dedicated video game platform (*1)
of which Nintendo 3DS platform
Nine months endedof which Nintendo Switch platform (*2)
December 31, 2018of which the others (*3)
Smart devices, IP related income, etc. (*4)
Playing cards, etc.
Total

204,875
12,283
181,305
11,286
16,833642
222,351425,622
25,368369,536
30,716
12,431
919
438,973

253,132
14,807227,087
11,2361,869
8255,00978,711
2,546
72,0644,099
2,249
80,960962,340
55,006
849,994
57,33933,384
1,570
997,295

Japan

The Americas

Europe

Other

Total

Dedicated video game platform (*1)
of which Nintendo 3DS platform
Nine months endedof which Nintendo Switch platform
December 31, 2017of which the others (*3)
Smart devices, IP related income, etc. (*4)
Playing cards, etc.
Total

203,41748,925
137,555
16,937
13,141
518
217,077

345,391
66,654
252,351
26,385
12,619834
358,845

219,133
48,640156,323
14,1692,458
19221,61158,596
6,439
48,6183,538
882
59,478

826,539
170,660
594,849
61,02929,101
1,371
857,012[Note] Digital sales in dedicated video game platform (*5):
Nine months ended December 31, 2017: 43.1 billion yen

Nine months ended December 31, 2018: 84.2 billion yen*1 Each platform includes hardware, software (including downloadable versions of packaged software, download-only
software and add-on content) and accessories.
*2 Includes Nintendo Switch Online.
*3 Includes amiibo, Virtual Console and platforms other than Nintendo 3DS or Nintendo Switch.
*4 Includes income from smart-device content and royalty income.
*5 Includes downloadable versions of packaged software, download-only software, add-on content and Nintendo Switch
Online.
million yen(2)Other consolidated information

Depreciation of property, plant and equipment
Research and development expenses
Advertising expenses
Average exchange rates
1 USD =

Nine months ended
December 31, 2017
4,766
46,99857,648111.70 yen

Nine months ended
December 31, 2018
4,323
50,76462,678111.14 yen

128.53 yen

129.49 yen

125.00 yen

3.0 billion
1.7 billion
4.2 billion

3.7 billion
1.9 billion
4.1 billion-

1 Euro =Consolidated net sales in U.S. dollars
Consolidated net sales in Euros
Non-consolidated purchases in U.S. dollars

million U.S. dollars/euros(3)Balance of major assets and liabilities in foreign currencies (non-consolidated)

USD

Euro

Cash and deposits
Accounts receivable-trade
Accounts payable-trade
Loans payable to subsidiaries
Cash and deposits
Accounts receivable-trade

As of March 31, 2018
Exchange rate
Balance
2,069
1 USD=
1,853
106.24 yen
1,058
300
571
403

1 Euro=130.52 yen- 7-

As of December 31, 2018
Exchange rate
Balance
2,212
1 USD=
1,188
111.00 yen
837
300
975
665

Year ending March 31, 2019
(Forecast)
6,000
70,00085,000105.00 yen

1 Euro=127.00 yen

As of March 31, 2019
Estimated exchange rate
1 USD=
105.00 yen
1 Euro=125.00 yen

Nintendo Co., Ltd.

(4) Consolidated sales units, number of new titles, and sales units forecast

Nintendo 3DS

Hardwareof which New Nintendo 3DS XLof which Nintendo 2DS

of which New Nintendo 2DS XLSoftware

New titles

Nintendo Switch

Hardware

Software

New titlesJapan
The Americas
Other
Total
Japan
The Americas
Other
Total
Japan
The Americas
Other
Total
Japan
The Americas
Other
Total
Japan
The Americas
Other
Total
Japan
The Americas
Other
Japan
The Americas
Other
Total
Japan
The Americas
Other
Total
Japan
The Americas
Other

ActualActualApr. '17-Dec. '17

Apr. '18-Dec. '18

132
256
198
586
51
81
31
163
6
96
75
177
74
79
93
245
1,026
1,017
1,082
3,125
46
25
34
312
474
426
1,213
892
2,079
1,739
4,710
47
66
74

45
118
68
231
9
8
3
21
0
57
23
80
36
52
42
130
203
471
434
1,108
11
12
12
336
580
533
1,449
1,718
4,348
3,398
9,464
162
212
205

Sales Units in Ten Thousands
Number of New Titles Released
Forecast
Life-to-date
Dec. '18

2,515
2,635
2,334
7,484
493
440
289
1,222
65
468
489
1,022
114
141
146
401
13,664
12,753
11,18037,597
667
491
546
774
1,294
1,160
3,227
3,033
7,385
5,942
16,361245
317
315[Notes]1 Software sales units include both packaged and downloadable versions of software.
2 Each title available in both packaged and downloadable versions is counted as one new title.
3 Actual software sales units for each platform include the quantity bundled with hardware.
4 While forecasted software sales units include the quantity bundled with hardware for nine months ended December 31, 2018,
they do not include the quantity to be bundled with hardware on and after January 1, 2019.

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Apr. '18-Mar. '19

260

1,300

1,700

11,000