Nintendo by Ericka Ames

NUM FOR BER TWENTY-FIVE ONE YEARS ANNUAL REPORT 2009

‘92

‘85 ‘92

‘9

‘88 ‘85 ‘86 ‘86 ‘85 ‘85 ‘ ‘96 ‘92 ‘92 ‘88 ‘92 ‘92 ‘92 ‘96

Keeping thethe classics alive... s Keeping Keeping the classics classics alive al ‘85

‘88 ‘88 ‘88 ‘88 ‘85 ‘86 ‘85 ‘88 ‘85 ‘86 ‘85 ‘86 ‘85 ‘86 ‘86 ‘86 ‘88

ce 1985 e... since since 19851985 ‘85 ‘o4

‘85 ‘86 ‘86 ‘o4 ‘o4 ‘88 ‘o4 ‘o4 ‘88 ‘o4

‘96 ‘96 ‘85 ‘86 ‘86 ‘o4‘88 ‘o4‘88 ‘o8 ‘o8 ‘o8 ‘o8 ‘o8 1985 – 2009

‘o4 ‘92 ‘85 ‘o8

‘96 ‘o8

‘92 ‘o8

OF MARIO

‘o4 ‘92

‘92 ‘o8

1985 – 2009 EVOLUTION

‘96

OF MARIO

‘96

OF MARIO EVOLUTION 1985 – 2009

8‘86 96 ‘96 ‘88 ‘96

‘96 ‘92

EVOLUTION

‘96 ‘92

5 ‘o4

LETTER LETTER FROM FROM THETHE PRESIDENT PRESIDENT history in the ThroughoutThroughout Nintendo’s Nintendo’s history in the home video game entertainment arena, home video game entertainment arena, Nintendo created unique hardware Nintendo has createdhas unique hardware andassoftware as one integrated video and software one integrated video game entertainment product, with softgame entertainment product, with softbeing the primary driver. ware beingware the primary driver.

6 8

‘o8

‘o4 ‘o8

‘o8

Nintendo its basic strategy Nintendo has focusedhas its focused basic strategy on expanding the world wide gaming on expanding the world wide gaming audience. So to achieve this, Nintendo audience. So to achieve this, Nintendo is encouraging of the people is encouraging as many of as themany people as possible around the world, through as possible around the world, through its unique experience and truly enjoy its unique experience and truly enjoy video game entertainment, video game entertainment, regardless regardless of gender, their age, gender, cultural language, cultural of their age, language, backround or gaming backround or gaming experience.experience.

first launch hard ware in Wiichanging has beenachanging a lot in Nintendo’sNintendo’s first hard ware in launchlaunch, Wiilaunch, has been lot in support of the basic strategy “Gaming many different ways, such as the intro support of the basic strategy “Gaming many different ways, such as the intro was handheld Nintendo has been making PopulationPopulation Expansion”Expansion” was handheld Nintendo has been making efforts to efforts to device, Nintendo DS, which it allows high market penetration of the device. device, Nintendo DS, which it allows high market penetration of the device. users to play intuitively. Recent Touch! users to play intuitively. Recent Touch! Generations, which now expands the Nintendo took another step expanding Generations, which now expands the Nintendo took another step expanding definition of video and appeals the worldwide gaming population by definition of video games and games appeals the worldwide gaming population by not only to the traditional gamers but launchin an unprecedented video game not only to the traditional gamers but launchin an unprecedented video game

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GAMES VIDEOVIDEO GAMES DON’TDON’T JUSTJUST WORKWORK OUT YOUR THUMBS ANY MORE... OUT YOUR THUMBS ANY MORE...

alsoinexperienced to these inexperienced gamers. console Wii. Since its launch, also to these gamers. console called Wii. called Since its launch, In near future, Nintendo has plans Wii has been changing the definition In near future, Nintendo has plans Wii has been changing the definition leverage variousvarious leverage various ofvideo the home game console to leveragetovarious leverage of the home gamevideo console of theDS Nintendo DS system such significantly. Sohas Nintendo uses of the uses Nintendo system such significantly. So Nintendo been has been as playing in public places, and to making efforts to promote Wii by as playing in public places, and to making efforts to promote Wii by take advantage the high market take advantage of the highofmarket developingdeveloping compellingcompelling software. software. penetration of the device. penetration of the device. Satoru Iwata Satoru Iwata President President Nintendo took another step expanding Nintendo took another step expanding Nintendo the world wide gaming population by Co.Nintendo Co. the world wide gaming population by launching unprecedented launching unprecedented video gamevideo game console called the its Wii.first Since its first console called the Wii. Since

CON CONN WORL WORLD 3

NECT NECT DWIDE DWIDE 9

WII LOVE WII LOVE DYNAMIC DYNAMIC DESIGN DESIGN

Throughout Nintendo’s Nintendo’s history in the history in the The W ii is a great The Waddition ii is a greatThroughout addition to any household. to any household. video gamevideo homegame entertainment home entertainment arena, arena,

Nintendo has Nintendo createdhas unique created hardware unique hardware and software andassoftware one integrated as one integrated video video entertainment entertainment product, with product, software with software being the primary being the driver. primary driver. Nintendo has Nintendo focusedhas its focused basic strategy its basic strategy on expanding on expanding the worldwide the worldwide gaming gaming audience. Toaudience. achieve this, To achieve Nintendo’s this, Nintendo’s encouraging encouraging as many people as many as they people as they possibly canpossibly all around can the all around world, in the world, in th ro u gh i tsthuro n i uqu ghe ietsxpe u nrii qu e necee xpe w i l l ribe e n ce w i l l b e truly enjoy truly videoenjoy gamevideo entertainment, game entertainment, regardless regardless of their age, of gender, their age, even gender, even language, cultural language, backround cultural backround or actual or actual hours in gaming hours experience. in gaming experience.

a basic remote a basic remote b steering wheel b steering wheel c maracas

c maracas

d musical instruments d musical instruments

e sports set e sports set f

light saberf

light saber

g nunchuks g nunchuks

h sword & shield h sword & shield

f e

ExERCISE YOUR MIND & HAVE FUN! Now playing can be learning.

Throughout Nintendoâ&#x20AC;&#x2122;s history in the video game home entertainment arena, Nintendo has created unique hardware and software as one integrated video entertainment product, with software being the primary driver. Nintendo has focused its basic strategy on expanding the worldwide gaming audience. To achieve this, Nintendoâ&#x20AC;&#x2122;s encouraging as many people as they po ssi bl y can al l aro u n d th e w o rl d, i n through its unique experience will be truly enjoy video game entertainment, regardless of their age, gender, even language, cultural backround or actual hours in gaming experience.

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INCORPORATING LEARNING WITH PLAYING makes studying fun.

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Five-year/ Summary / Stock Prices Information Five-year Summary Stock Prices Information

of Operations Finical Review Analysis of Analysis Operations and Finical and Review

Report of Independent Report of Independent Auditors Auditors

Consolidated Balance Sheets Consolidated Balance Sheets

Consolidated Consolidated StatementsStatements of Income of Income

Consolidated in Net Assets Consolidated StatementsStatements of Changesofin Changes Net Assets

Consolidated of Cash Flows Consolidated StatementsStatements of Cash Flows

Notes to Consolidated Financial Statements Notes to Consolidated Financial Statements

CA$THETHE CA$ FINANCIAL HMOFINANCIAL HMO SECTION NEYSECTION NEY

Five-Year Five-Year Summary Summary Years ended March 31 March 31 Years ended For the period For the period Net sales Net sales OperatingOperating income income Net income Net income At the period-end At the period-end Total assets Total assets Property, Property, plant, andplant, equipment and equipment Net assetsNet assets Years ended March 31 March 31 Years ended Per share Per information share information Net income Net income Cash dividends Cash dividends

2008

2007 2008

2006 2007

2005 2006

2004 2005

2004

¥1,672,423 ¥1,672,423 ¥966,534

2008

¥509,240 ¥966,534

¥515,292 ¥509,240

¥514,805 ¥515,292

¥514,805

487,220

226,024 487,220

90,349 226,024

111,522 90,349

107,683 111,522

107,683

¥16,724,230 ¥16,724,230 4,872,202

4,872,202

257,342

174,290 257,342

98,378 174,290

87,416 98,378

33,194 87,416

33,194

2,573,426

1,802,490

1,575,597 1,802,490

1,160,703 1,575,597

1,132,492 1,160,703

1,010,031 1,132,492

1,010,031

55,150

57,600 55,150

55,969 57,600

54,420 55,969

55,084 54,420

55,084

1,229,973

1,102,018 1,229,973

974,091 1,102,018

921,466 974,091

890,247 921,466

890,247

¥2,012.13

¥1,362.61 ¥2,012.13

¥762.28 ¥1,362.61

¥662.96 ¥762.28

¥246.93 ¥662.96

¥246.93

$20.12

1,260

1,260 690

690 390

390 390

390 140

140

12.60

18,024,903 18,024,903 551,506

551,506

12,299,736 12,299,736

CUMULATIVE CUMULATIVE SALES UNITUNIT SALES Nintendo Nintendo

Video Game 2007-20082007-2008 Video Game Industry Growth Revenue Growth Industry Revenue ($3.35 billion) ($3.35 billion)

99% 99% ($3.31 billion)($3.31 billion)

Other

1% 1% ($.035 billion)($.035 billion) DS

Wii

PSP

PS3

PS2

Xbox

8,000,000

6,000,000

4,000,000

2,000,000

worldwide worldwide Wii

Wii

Gamecube

Gameboy Advance Gameboy Advance

JAPAN Wii

JAPAN

Wii

Gamecube

Gameboy Advance Gameboy Advance

AMERICA AMERICA Wii

Wii

Gamecube

Gameboy Advance Gameboy Advance

OTHER Wii

OTHER

Wii

Gamecube

Gameboy Advance Gameboy Advance

CONSOLIDATED CONSOLIDATED BALANCE SHEETS BALANCE SHEETS As of MarchAs 31,of March 31,

2008

Assets Assets Current assets Current assets 짜899,251 Cash and deposits Cash and deposits 147,787 Notes and accounts receivable-trade Notes and accounts receivable-trade Short-term securities investment securities 353,070 Short-term investment 104,842 Inventories Inventories 38,032 Deferred taxDeferred assets tax assets 106,028 Other (NoteOther 5 C) (Note 5 C) Allowance doubtful accounts (2,176) Allowance for doubtfulfor accounts current assets Total currentTotal assets

2007

2008

짜899,251 짜962,197 147,787 89,666 353,070 115,971 104,842 88,609 38,032 35,631 106,028 104,483 (2,176) (1,886)

짜962,197 89,666 115,971 88,609 35,631 104,483 (1,886)

$8,992,510 1,477,873 3,530,700 1,048,423 380,323 1,060,280 (21,763)

$8,992, 1,477, 3,530, 1,048, 380, 1,060, (21,7

1,646,834 1,646,834 1,394,673 1,394,673 16,468,348 16,468,

assets Noncurrent Noncurrent assets 16,784 Buildings and structures Buildings and structures Machinery, and equipment Machinery, equipment vehiclesand vehicles 1,734 6,072 Tools, Tools, furniture andfurniture fixtures and fixtures 30,267 Land Land

20082007

16,784 18,022 1,734 1,134 6,072 5,629 30,267 32,595

18,022 1,134 5,629 32,595

167,846 17,346 60,722 302,670

167, 17, 60, 302,

2008

20082007

2007

292

292217

217

2,920

Totalplant property, plant and equipment Total property, and equipment 55,150

55,150 57,600

57,600

551,506

ConstructionConstruction in progress in progress

2008

Intangible assets Intangible assets Software etc. Software etc. Software Software Other Other

– 542 1,467

–505 542 – 1,467 –

505 – –

– 5,420 14,678

Totalassets intangible assets Total intangible

2,009

2,009505

505

20,098

73,758 23,541 1,196 (0)

73,758 92,412 23,541 14,414 1,196 16,001 (0)(10)

92,412 14,414 16,001 (10)

737,562 235,418 11,969 (0)

Total investments and other assets 98,495 Total investments and other assets

98,495 122,818

122,818

984,950

and other assets InvestmentsInvestments and other assets Investment securities Investment securities (Note 5 B) (Note 5 B) Deferred taxDeferred assets tax assets Other Other Allowance doubtful accounts Allowance for doubtfulfor accounts

10F Kanayalal Building 8-4 4-Chome, Kumochi-cho, Chuo-ku Kobe 651-0056 Japan