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Annual Report 2013

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Contents Message from the President Hardware and Software Sales: Wii Nintendo DS Nintendo 3DS

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History of Nintendo Five-Year Summary / Stock Price Analysis of Operations and Financial Report of Independent Auditor Nintendo Hardware Sales North American Hardware Sales In Corporate Information Contact Information

20 25 26 29 30 31 32 33

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14 16 18


3


4


SUPER MARIO 5


THE LEGEND OF ZELDA 6


7


MARIO KART 8


9


POKEMON

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Message from the President

Since the launch of the Nintendo Entertainment System more than a quarter of a century ago, Nintendo has been offering the world unique and original entertainment products under the development concept of hardware and software integration. In the field of home entertainment, where there are few Japanese world-class industries, Nintendo is a well-known brand truly representing video game culture throughout the world. Our basic strategy is the expansion of the gaming population, which is to encourage as many people in the world as possible,

regardless of age, gender or gaming experience, to embrace and enjoy playing video games. The Nintendo 3DS system, which we launched in 2011 as the successor of Nintendo DS, has such features as 3D gameplay without the need for any special glasses and various communication functions, and thus offers a wide range of gameplay. In addition, in summer 2012, we launched the Nintendo 3DS XL system, of which the screens are 90 percent larger than those of the original Nintendo 3DS, as a new size variation model in the Nintendo 3DS family of systems. We will continue to

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offer software and services that take advantage of the unique features of Nintendo 3DS and strive to accelerate the sales pace of the Nintendo 3DS systems. We plan to release the Wii U system, the successor of Wii, in the year-end sales season of 2012. Wii U has a new controller named the Wii U GamePad with a 6.2 inch touch screen. With the combination of the Wii U GamePad and a TV screen, players can enjoy gameplay that takes advantage of two screens whose positional relationship is not fixed. Also, for multi-player games,


Wii U makes asymmetric gameplay possible, which means the role of a player using the Wii U GamePad is different from the other players using the conventional Wii Remote controllers. In this way, we will propose deeper game experiences and new entertainment that people have never had the opportunity to enjoy before. Regarding our network strategy, we push forward with the new network service called the Nintendo Network. As the key service of the Nintendo Network, with Wii U, we will introduce a network communication system called Miiverse

where game fans around the world can share and discuss their game experiences, and have opportunities to empathize with one another by connecting every living room. Furthermore, for the purpose of adapting to the changes in the environment surrounding the video game market and creating new business opportunities, we are aiming to expand our digital business by offering downloadable, paid add-on content, digitally distributing packaged software and so forth. Nintendo posted an operating loss for the fiscal year ended March 2012. We will strive to expand our business and

Satoru13Iwata President Nintendo Co. Ltd.

to improve profitability by providing fascinating games and services. We continue to make brand-new and unique proposals, and make efforts for the growth of the home entertainment industry with a mission that is to pleasantly surprise people and put smiles on the faces of everyone Nintendo touches.


Hardware and Software Sales Units

As of March 31, 2013

Wii

Hardware

95.85

million units

Software

818.46

million units

The numbers shown above are worldwide consolidated sales in units life-to-date and the software units include the quantity bundled with hardware.

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Top Selling Software Titles (Units sold in millions)

79.60

©2006 Nintendo.

32.44

As of March 31, 2013

28.02

30.14

©2006-2007 Nintendo.

©2009 Nintendo.

26.26

©2009 Nintendo. ©2008 Nintendo.

The numbers shown above are worldwide consolidated sales in units life-to-date and include the quantity bundled with hardware. Titles and package images shown above are for the U.S. market.

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Hardware and Software Sales Units

As of March 31, 2013

Nintendo DS Lite

Nintendo DS

Nintendo DSi

Nintendo DS

Nintendo DSi XL

Hardware

151.52 million units

Software

900.31

million units

The numbers shown above are worldwide consolidated sales in units life-to-date and the software units include the quantity bundled with hardware.

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Top Selling Software Titles (Units sold in millions)

As of March 31, 2013

23.89

©2005 Nintendo.

22.57

©2006 Nintendo.

©2005 Nintendo.

©2005 Nintendo.

©2005-2006 Nintendo.

29.09

19.00

©2006 Nintendo.

©2005-2006 Nintendo. ©2006 NIKOLI CO., Ltd.

17.61

© 2007 Pokémon. ©1995-2007 Nintendo/Creatures Inc./GAME FREAK inc.

The numbers shown above are worldwide consolidated sales in units life-to-date and include the quantity bundled with hardware. Titles and package images shown above are for the U.S. market.

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Hardware and Software Sales Units

As of March 31, 2013

Nintendo 3DS

Hardware

17.13

million units

Software

45.42

million units

The numbers shown above are worldwide consolidated sales in units life-to-date and the software units include the quantity bundled with hardware.

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Top Selling Software Titles (Units sold in millions)

As of March 31, 2013

2.70

©2011 Nintendo.

©2011 Nintendo.

5.84

5.24

©2011 Nintendo.

©2011 Nintendo.

2.61

©1998-2011 Nintendo

©2011 Nintendo.

1.08

© 2011 Pokémon. ©1995-2011 Nintendo/Creatures Inc. /GAME FREAK inc. Developed by Ambrella.

The numbers shown above are worldwide consolidated sales in units life-to-date and include the quantity bundled with hardware. Titles and package images shown above are for the U.S. market.

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History of Nintendo

1953 Playing cards

1977 Color TV Game 15 1966 Ultra Hand

1971 Electro Poker

1889 Hanafuda 1968 Ultra Machine

1976 Beam Gun : Custom Gunman : Custom Lion

1969 Love Tester

1889

1889 Fusajiro Yamauchi, great-grandfather of Hiroshi Yamauchi (the former President and current executive adviser), began manufacturing and selling Japanese playing cards, Hanafuda (flower cards), in Kyoto, Japan. 1902 Started manufacturing and selling the first western-style playing cards in Japan. 1947 Established Marufuku Co., Ltd. 1949 Hiroshi Yamauchi took office as President. 1951 Changed company name to Nintendo Playing Card Co., Ltd.

1970

1970 Stock listing was changed to the first section of the Osaka Securities Exchange. Started selling the Beam Gun series, employing optoelectronics. 1973 Developed the Laser Clay shooting-range system to succeed bowling as a major pastime. 1974 Developed image projection system employing 16mm film projector and entered into the arcade business. Began exporting systems to the U.S. and Europe. 1977 Developed Nintendo’s first home video game machines, TV Game 15 and TV Game 6.

1952 Built headquarters in Kyoto, Japan and consolidated the manufacturing facilities.

1980 Established a wholly owned subsidiary, Nintendo of America Inc. in New York. Developed and started selling GAME & WATCH product line, the first portable LCD video games with a microprocessor.

1953 Became the first company to succeed in mass-producing plastic playing cards in Japan.

1981 Developed and began distribution of the coin-operated video game Donkey Kong.

1959 Started selling cards printed with Walt Disney characters, opening a new market for children’s playing cards in Japan.

1982 Established Nintendo of America Inc. in Seattle, Washington and merged the New York subsidiary into it.

1962 Listed stock on the second section of the Osaka Securities Exchange and on the Kyoto Stock Exchange.

1983 Started selling the home video game console Family Computer System employing a custom CPU (Central Processing Unit) and PPU (Picture Processing Unit). Listed stock on the first section of the Tokyo Stock Exchange.

1963 Changed company name to the current Nintendo Co., Ltd. Started manufacturing and selling games and toys in addition to playing cards. 1969 Built Uji plant in Kyoto, Japan.

1985 Released the Nintendo Entertainment System (NES), the U.S. version of the Family Computer System, in the U.S. Released Super Mario Bros. for NES in Japan and the U.S.

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1982 Coin-op Donkey Kong

1990 Super Famicom (1991 SNES)

1983 Family Computer (1985 NES)

1980 Ten bilion

1980 Game & Watch

1982 Game & Watch Multi-Screen

1989 Game Boy

1980

1986 Started selling the Family Computer Disk Drive System to expand the functions of the Family Computer System in Japan. Released NES in Europe. 1987 Released the Legend of Zelda for NES in the U.S. 1988 On-line stock brokerage services utilizing the Family Computer Network System are started in Japan jointly with Nomura Securities. Enlarged Uji plant and built Uji-Ogura plant in Kyoto, Japan. Nintendo of America Inc. publishes the first issue of Nintendo Power magazine. 1989 Introduced Game Boy, the first portable, hand-held game system with interchangeable game paks, in Japan and the U.S. 1990 Nintendo enters the 16-bit console market with the release of the Super Famicom in Japan. Established Nintendo of Europe GmbH in Frankfurt, Germany. Released Game Boy in Europe. 1991 The 16-bit Super Nintendo Entertainment System (Super NES), along with Super Mario World, is released in the U.S. 1992 Released Super NES in Europe. 1993 Established subsidiaries in France, UK, the Netherlands, Belgium, Spain and Australia. The Nintendo Gateway program is introduced to provide Nintendo entertainment to airline passengers and hotel guests in the U.S. Built Uji-Okubo plant in Kyoto, Japan.

1995 Virtual Boy

1990

1994 Released the Super Game Boy, a peripheral for the Super NES, which enables Game Boy software to be played on TV screen. Released Donkey Kong Country for Super NES that uses proprietary Advanced Computer Modeling (ACM) graphics. Uji, Uji-Ogura and Uji-Okubo plants received ISO-9002. 1995 Started selling SatellaView adapter for Super Famicom in Japan, enabling the system to receive digital data from broadcast satellite. Nintendo introduced a 32-bit Virtual Immersion system known as the Virtual Boy. 1996 Launched Nintendo 64 in Japan and the U.S. Launched Game Boy Pocket worldwide. Pokémon Red and Pokémon Green (known as Pokémon Blue outside Japan) for Game Boy are released in Japan. 1997 Launched Nintendo 64 in Europe. Pokémon TV series starts in Japan. 1998 Nintendo introduces Game Boy Color along with innovative devices Game Boy Camera and Printer. Pokémon, a breakthrough game concept for Game Boy, is introduced overseas and generates an international craze to “catch ‘em all!” The first Pokémon movie is released in Japan. 1999 Pokémon Gold and Pokémon Silver, both Game Boy Color games, are introduced in Japan. 2000 Pokémon Crystal for Game Boy Color is released in Japan. The headquarters of Nintendo Co., Ltd. relocates from the Higashiyamaward to the Minami-ward of Kyoto, Japan.

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2001 Nintendo GameCube

1996 Nintendo 64

2001 Game Boy Advance

2006 Wii

2008 Nintendo DSi

2004 Nintendo DS

2003 Game Boy Advance SP

2006 Nintendo DS Lite

2000

2011 Nintendo 3DS

2009 Nintendo DSi XL

2010

2001 Launched Game Boy Advance worldwide. Launched Nintendo GameCube in Japan and the U.S.

2007 Released Wii Fit bundled with the Wii Balance Board accessory in Japan.

2002 Launched Nintendo GameCube in Europe. Satoru Iwata takes office as President of Nintendo Co., Ltd. Released Pokémon Ruby and Pokémon Sapphire for Game Boy Advance in Japan.

2008 Released Mario Kart Wii that uses the Wii Wheel accessory. Introduced Pokémon Platinum Version for Nintendo DS in Japan. Launched Nintendo DSi loaded with Nintendo DSi Camera and Nintendo DSi Sound applications in Japan.

2003 Launched Game Boy Advance SP, equipped with front-lit screen, rechargeable lithium-ion battery, and compact folding design. Began Nintendo’s online membership service, Club Nintendo, in Japan. 2004 Nintendo DS, the hand-held gaming device that opens up a new style of entertainment with its dual screens, touch control, wireless communication, and voice recognition technology, launched in Japan and the U.S. 2005 Launched Nintendo DS in Europe. Launched Game Boy micro, a lightweight version of the Game Boy Advance. Nintendo Wi-Fi Connection, the wireless internet service for Nintendo DS, becomes available to consumers. Introduced Touch! Generations titles, aimed at expanding the user base. Among these titles released in Japan are Nintendogs, Brain Age: Train Your Brain in Minutes a Day, and Brain Age 2: More Training in Minutes a Day. 2006 Launched Nintendo DS Lite, a smaller and lighter version of the Nintendo DS. Established a subsidiary in South Korea. Released Pokémon Diamond Version and Pokémon Pearl Version for Nintendo DS in Japan. Launched Wii with its unprecedented Wii Remote designed to make game control intuitive.

2009 Launched Nintendo DSi in the U.S. and Europe. Released Wii Sports Resort along with Wii MotionPlus that senses the subtler motion of players. Launched Nintendo DSi XL featuring larger screens and a wider viewing angle in Japan. 2010 Launched Nintendo DSi XL in the U.S. and Europe. Released special edition red versions of Nintendo DSi XL and Wii to commemorate the 25th anniversary of Super Mario Bros. 2011 Launched Nintendo 3DS, a portable entertainment device that offers new gaming experience in 3D - without the need for special glasses in Japan, the U.S. and Europe. 2012 Launched Nintendo 3DS XL, of which the screens are 90 percent larger than those of the original Nintendo 3DS, in Japan and overseas.

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PULL 23


Financial Section Five-Year Summary / Stock Price Information Analysis of Operations and Financial Review Report of Independent Auditor Nintendo Hardware Sales North American Hardware Sales In November Corporate Information Contact Information

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25 26 29 30 31 32 33


Five-Year Summary Years ended March 31,

¥ Japanese Yen in Millions 2012 2011 2010 2009

For the Period Net sales Operating income (loss) Net income (loss) At the Period-end Total assets Property, plant and equipment Total net assets

Years ended March 31, Per Share Information Net income (loss)A Cash dividendsB

[Note]

2008

$

U.S. Dollars in Thousands

2012

¥647,652 ¥1,014,345 ¥1,434,365 ¥1,838,622 ¥1,672,423 (37,320) 171,076 356,567 555,263 487,220 (43,204) 77,621 228,635 279,089 257,342

$7,898,200 (455,132) (526,884)

1,368,401 1,634,297 1,760,986 1,810,767 1,802,490 87,856 80,864 79,586 55,150 71,064 ¥1,191,025 ¥1,281,861 ¥1,336,585 ¥1,253,931 ¥1,229,973

16,687,829 1,071,423 $14,524,700

¥ Japanese Yen in Millions 2012 2011 2010 2009 ¥(337.86)

¥100

¥606.99

¥450

¥1,787.84 ¥2,182.32

¥930

¥1,440

2008

$

U.S. Dollars in Thousands

2012

$(4.12) $1.21

¥2,012.13

¥1,260

A: The computation of net income per share of common stock is based on the weighted average number of shares outstanding (excluding treasury stock) during each fiscal year. B: Cash dividends per share represent the amounts applicable to the respective fiscal years including dividends to be paid after the end of each fiscal year.

Stock Price Information ¥ Japanese Yen in Millions

2012

Highest

Lowest

¥32,950

¥23,870

$275.24

$176.34

10,780

27,160

20,710

201.70

131.46

12,530

10,400

24,670

20,180

152.80

126.82

13,120

9,910

26,780

20,000

160.00

120.85

Highest

¥ 22,570

¥14,460

Second Quarter

16,540

Third Quarter Fourth Quarter

First Quarter

[Note]

2011

U.S. Dollars in Thousands 2012

Lowest

Lowest

Years ended March 31,

$

Highest

The preceding table sets forth the highest and lowest sale prices during the years ended March 31, 2012 and 2011 for Nintendo Co., Ltd. common stock, as reported on the Osaka Securities Exchange, Section 1. Nintendo Co., Ltd. common stock is also traded on the Tokyo Stock Exchange, Section 1.

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Analysis of Operations and Financial Review Overview Nintendo continues to pursue its basic strategy of Gaming Population Expansion by offering compelling products that anyone can enjoy, regardless of age, gender or gaming experience. During the fiscal year ended March 31, 2012, in order to get the Nintendo 3DS system back on track to its originally anticipated sales pace as the successor of Nintendo DS, Nintendo made a significant price cut of the Nintendo 3DS hardware, in and out of Japan in August 2011, and released attractive software titles one after another in the year-end sales season to let Nintendo 3DS spread widely. Moreover, Nintendo engaged in new sales promotions like Nintendo Direct, in which new software line-ups were presented straight to consumers through the Internet. As a result, the worldwide sales of the Nintendo 3DS hardware during the fiscal year were 13.53 million units and the sales of the Nintendo 3DS hardware in Japan exceeded five million units, which is the fastest record of all dedicated game platforms. As for the Nintendo 3DS software, there were some hit titles, which were not only the key Nintendo titles such as SUPER MARIO 3D LAND and Mario Kart 7 but also third-party titles. While the Japanese sales of the Nintendo 3DS software grew, in Europe and the United States, although SUPER MARIO 3D LAND and Mario Kart 7 made strong sales, the start of the year-end sales season was slower in comparison to the last few years. As a result, recovery from the slow sales pace early in the fiscal year was not fully achieved. The worldwide sales of the Nintendo 3DS software were 36 million units. The worldwide sales of the Nintendo DS series hardware (which represents Nintendo DS, Nintendo DS Lite, Nintendo DSi and Nintendo DSi XL) and the Nintendo DS software were 5.1 million units and 60.82 million units respectively. With respect to the Wii system, The Legend of Zelda: Skyward Sword, the newest title of the Zelda series, which celebrated its 25th anniversary, recorded strong sales, especially in the United States. Also, the sales of third-parties’ dance titles became robust, especially in overseas countries. The worldwide sales of the Wii hardware were 9.84 million units and those of the Wii software were 102.37 million units.

In addition to the above, due to price reductions and the related inventory markdown of hardware systems for Nintendo 3DS globally and Wii in the overseas markets, and the impact of a much stronger yen against foreign currencies during the fiscal year, net sales were 647.6 billion yen (US$7,898 million) of which overseas sales were 499.4 billion yen (US$6,090 million) or 77.1% of the total sales. The operating loss was 37.3 billion yen (US$455 million). Due to exchange losses totaling 27.7 billion yen (US$338 million), the ordinary loss was 60.8 billion yen (US$742 million), and the net loss was 43.2 billion yen (US$526 million).

Risk Factors Listed below are the various risks that could significantly affect Nintendo’s operating performance, share price and financial condition. However, unpredictable risks may exist other than the risks set forth herein. Note that matters pertaining to the future presented herein are determined by Nintendo as of the end of the annual consolidated fiscal period ended March 31, 2012. (1) Risks around economic environment •Fluctuation in foreign exchange rates Nintendo distributes its products globally with overseas sales accounting for over 70% of its total sales. Since the majority of monetary transactions are made in local currencies, fluctuations in foreign exchange rates have a direct influence on financial performance. In addition, the Company holds a substantial amount of assets in foreign currencies, including cash and deposits without exchange contracts. Thus, fluctuations in foreign exchange rates have an influence not only when accounts in foreign currencies are converted to Japanese yen but also when they are revaluated for financial reporting purposes.

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(2) Risks around business activities •Fluctuation of market environment and competition against other companies Nintendo’s business is engaged in one segment of the broad entertainment field. However, its business can be affected by trends in other segments of the entertainment field. If consumer preferences shift to other forms of entertainment, it is possible that the video game market may shrink. The emergence of new competitors resulting from technological innovation could have a detrimental impact as well. In the video game industry, it may become even more difficult to be profitable due to large investments required in research and development, and marketing. In addition, competition may intensify with large-scale companies doing business in the same industry or in other segments of the entertainment field. As a result, Nintendo may experience difficulty in maintaining or expanding its market share as well as sustaining profitability. •Development of new products Although Nintendo continuously makes efforts to develop innovative and attractive products in the field of computer entertainment, the development process is complicated and includes many uncertainties. The various risks involved are as follows: a. Despite the substantial costs and time needed for software development, there is no guarantee that all new products will be accepted by consumers due to ever shifting consumer preferences. Also, development of certain products may be suspended or aborted. b. While development of hardware is time-consuming, with technology continuously advancing, it is possible that the Company may not be able to equip technologies required for entertainment. Furthermore, delays of hardware launches could adversely affect market share. c. Due to the nature of Nintendo products, it may become difficult to develop or sell the products as planned and the original plan could differ to a large extent. •Product valuation and adequate inventory procurement Products in the video game industry have relatively short life cycles, and are significantly impacted by consumers’ preferences as well as seasonality. Although production is projected based on the forecasted equilibrium point of supply and demand, it is difficult to forecast demand accurately, which may lead to excess inventory. Obsolete inventory could have an adverse effect on Nintendo’s operations and financial position.

•Overseas business expansion and international activities In addition to Japan, Nintendo engages in business in the United States, Europe, Australia, Asia and other areas in the world. Expansion of business to these overseas markets involves risks such as a) unpredictable enforcement or changes in laws or regulations, b) disadvantages from emergence of political or economic factors, c)disadvantages from inconsistency of multilateral taxation systems and diversity of tax law interpretation, d) difficulty of recruiting and securing human resources, e) social disruption resulting from terrorist attacks, war and other catastrophic events. •Dependency on outside manufacturers Nintendo commissions a number of outside manufacturers to produce key components or assemble finished products. In the event one or more of these businesses fail, Nintendo may have difficulty procuring key components or manufacturing its products. In addition, suppliers may be unable to provide necessary components on a timely basis. A shortage of key components could cause marginal decline due to higher costs, shortage of products and quality control issues. These issues may impair the relationship between Nintendo and itscustomers. Furthermore, as many suppliers’ production facilities are located overseas, potential production interruptions caused by societal violence, natural disasters or any other accidents in the area could negatively affect Nintendo’s business. •Business operations affected by seasonal fluctuation A major portion of demand for Nintendo’s products is focused around the holiday season. Should Nintendo fail to release attractive new products or supply hardware during that period, it would suffer unfavorable operating performance.

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Analysis of Operations and Financial Review (3) Risks around legal regulations and litigation •Product liability Nintendo manufactures its products based on quality control standards required in each location throughout the world.However, large-scale product recalls may occur due mainly to defective products, which may cause Nintendo to incur additional expenses and Nintendo’s reputation as well as Nintendo’s performance and financial position may suffer. •Limitations of enforcing intellectual property rights Although Nintendo continues to accumulate various intellectual properties to produce different products, counterfeit products already have gone into circulation in some regions and have violated Nintendo’s intellectual property rights. In the future, it may continue to be a challenging task to take full action against every infringement of Nintendo’s intellectual property rights. •Leakage of personal and confidential information Nintendo possesses personally identifiable information about its consumers, such as “Club Nintendo” membership information. If such personally identifiable information or any confidential information concerning development or business operations were ever breached or otherwise leaked outside of Nintendo, there would be an adverse effect on Nintendo‘s future operating performance, reputation, share price and financial condition. •Changes in accounting standards and taxation systems Unpredicted adoptions or changes in accounting standards or taxation systems could have an effect on Nintendo’s performance and financial position. Conflict of views between Nintendo and the tax authorities may cause additional tax costs. •Litigation Nintendo’s operations in Japan and overseas may be subject to litigation, disputes and other legal procedures. These issues may adversely affect Nintendo’s performance. •Other risks Other than the risks set forth above, factors such as uncollectibility of trade accounts receivable and notes receivable, collapseof financial institutions and environmental restrictions may adversely affect Nintendo’s performance and financial position.

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Report of Independent Auditor To the Board of Directors of Nintendo Co., Ltd.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

We have audited the accompanying consolidated financial statements of Nintendo Co., Ltd. and its subsidiaries, which comprise the consolidated balance sheets as at March 31, 2012, and the consolidated statements of income, comprehensive income, changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Opinion

Management’s Responsibility for the Consolidated Financial Statements

Convenience translations

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Nintendo Co., Ltd. and its subsidiaries as at March 31, 2012, and their financial performance and cash flows for the year then ended in accordance with accounting principles generally accepted in Japan.

The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2012 are presented solely for convenience. Our audit also included the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in Note 1 to the consolidated financial statements.

Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in Japan. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgments, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, while the purpose of the financial statements audit is not to express an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

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Nintendo Hardware Sales - Apr-Jun 2013 3DS DS (All) DSi DSi LL/XL Wii

0

0.5

1

2

1.5

Millions of Units

Japan America Other

U.S Portable Game Software by Revenue

iphone OS 19% iphone OS 34%

PlayStation Portabe 11%

Nintendo DS 70%

PlayStation Portabe 9%

2012

Nintendo DS 57%

2013 30


Nintendo Enjoys Bumper North American Hardware Sales In November

More than 1.75 million hardware units shifted in one month Nintendo has released its sales figures for the month of November, revealing that it has sold more than 1.75 million units across the US. This means that November 2012 marks the 36th time that Nintendo has sold over 1 million units in a month in North America since 2004. Attributing to this remarkable sales figure were strong sales on Black Friday and - of course - the arrival of the Wii U. The latest Nintendo home console sold more than 425,000 units - almost close to matching the Wii system’s launch total of 475,000 units. Here’s what Scott Moffitt, Nintendo of America’s executive vice president of Sales & Marketing, had to say on the topic: The groundbreaking Wii U, the continued strength of Nintendo 3DS and the enduring appeal of Wii and Nintendo DS drove momentum on Black Friday and through November. Wii U is off to a tremendous start in the United States, is essentially sold out at retail and has cemented its status as the ‘must-have’ product this holiday season.

November included more that just the Wii U and 3DS of course, and you can find a full breakdown of this information below: Wii U - Following its launch on Nov. 18 and with only seven days of sales captured in the data, Wii U sold more than 425,000 units, nearly matching the Wii system’s first-week total of 475,000. On the software front, New Super Mario Bros. U sold more than 243,000 units, an attach rate of nearly 60 percent. 3DS - The platform kicked off its second holiday season by selling nearly 540,000 units and has now sold nearly 6.5 million units life to date. Additionally, Mario Kart 7 became the second Nintendo 3DS game to cross 2 million units sold in the U.S. Wii: In its seventh November, Wii sold 420,000 units and has now sold more than 40 million units in the United States alone. DS In its 97th month overall, Nintendo DS sold more than 370,000 units and will cross 53 million units sold life to date in the next few days.

With 910,000 Nintendo handheld systems sold throughout the month, the 3DS accounted for more than half of that figure, shifting 540,000 systems in time for the holiday season. This means the system has clocked up 6.5 million sales in North America since launch.

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Corporate Information Board of Directors President Satoru Iwata* Senior Managing Directors Yoshihiro Mori* Shinji Hatano* Genyo Takeda* Shigeru Miyamoto* Managing Directors Masaharu Matsumoto Eiichi Suzuki Directors Tatsumi Kimishima Kaoru Takemura Corporate Auditors Minoru Ueda Ken Toyoda Naoki Mizutani Yoshimi Mitamura Katsuhiro Umeyama *Representative Director As of June 28, 2012

Principal offices and facilities [Domestic] Corporate Headquarters 11-1, Kamitoba Hokotate-cho, Minami-ku, Kyoto 601-8501, Japan Tel : 81-75-662-9600 Plants Uji Plant Offices and Distribution Center Tokyo Branch Office Osaka Branch Office

Principal consolidated subsidiaries [Overseas] Nintendo of America Inc. Nintendo of Canada Ltd. Nintendo of Europe GmbH Nintendo France S.A.R.L. Nintendo Benelux B.V. Nintendo IbĂŠrica, S.A. Nintendo Australia Pty. Ltd. Nintendo of Korea Co., Ltd.

Other consolidated subsidiaries Domestic: ND CUBE Co., Ltd. Brownie Brown Inc. MONOLITH SOFTWARE INC. Project Sora Co., Ltd. Wii no Ma Co., Ltd. Mario Club Co., Ltd. Overseas: Nintendo Phuten Co., Ltd. iQue (China) Ltd. Nintendo Technology Development Inc. Nintendo Software Technology Corporation SiRAS.com Inc. Retro Studios, Inc. Nintendo (Hong Kong) Limited Mobiclip SAS Six other companies

Non-consolidated subsidiary with equity method non-applied Domestic: Fukuei Co., Ltd.

Affiliated companies with equity method applied

Common Stock

Nintendo Co., Ltd. common stock is listed on the Osaka Securities Exchange, Section 1 and the Tokyo Stock Exchange, Section 1.

Domestic: The PokĂŠmon Company WARPSTAR, Inc. Overseas: Two companies

Annual Meeting

The Annual General Meeting of Shareholders for the fiscal year ended March 31, 2012 was held on June 28, 2012 at Nintendo Co., Ltd., Kyoto, Japan.

Affiliated company with equity method non-applied Domestic: Ape inc.

Independent Auditor Kyoto Audit Corporation Kyoto, Japan

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Contact Information Investors Relations

Corporate Communications

Nintendo Co., Ltd. General Accounting and Control Department Investors Relations Group 11-1, Kamitoba Hokotate-cho, Minami-ku, Kyoto 601-8501, Japan Tel : 81-75-662-9614 E-mail: IR@ nintendo.co.jp

Nintendo Co., Ltd. Corporate Communication Department 11-1, Kamitoba Hokotate-cho, Minami-ku, Kyoto 601-8501, Japan Tel : 81-75-662-9600 Nintendo of America Inc. Corporate Communications Department 2000 Bridge Parkway Ste 200, Redwood City, CA 94065 Tel : 1-650-226-4040

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For IR information in English, please visit http://www.nintendo.co.jp/ir/en/ index.html For business in the U. S., please visit http://www.nintendo.com


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Coming in 2013

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Nintendo