Fiscal Year Ended March 2020 Financial Results Explanatory Material

Fiscal Year Ended March 2020

Financial Results Explanatory Material

Nintendo Co., Ltd.

May 7, 2020

• Impact on parts procurement, production, and shipments

• Impact on consumption activities

• Impact on research and development

• Impact of foreign exchange fluctuations

Information About Risks Related to COVID-19

1. Consolidated Financial Results and Outlook

Consolidated Financial Highlights

FY19 FY20 Comparison

Net sales 1,200.5

bn yen

1,308.5

bn yen

+9.0

％

Operating profit 249.7

bn yen

352.3

bn yen

+41.1

Operating profit ratio 20.8

26.9

+6.1

pt.

Ordinary profit 277.3

bn yen

360.4

bn yen

+30.0

Net profit 194.0

bn yen

258.6

yen

+33.3

Net profit ratio 16.2

19.8

％

+3.6

pt.

*Net profit: Profit attributable to owners of parent

*FY = Fiscal Year: FY20 indicates the period between April 1, 2019 and March 31, 2020.

Consolidated Sales

FY19 FY20 Comparison

Net sales 1,200.5

bn yen

1,308.5

yen

+9.0

Dedicated video game platform*1 1,152.6

yen

1,254.1

yen

+8.8

Mobile, IP related income, etc.*2 46.0

yen

51.2

yen

+11.5

Playing cards, etc. 1.9

yen

3.0

yen

+57.1

*1 Each platform includes hardware, software (including downloadable

versions of packaged software, download-only software, add-on content,

and Nintendo Switch Online) and accessories.

*2 Includes income from smart-device content and royalty income.

Effect of changes in foreign exchange rates

on net sales: -37.3 billion yen

23.0%

43.2%

25.0%

8.8%

FY20 Regional Sales Ratio

Japan

The Americas

Europe

Other

Proportion of overseas sales: 77.0%

Gross Profit

Main Variable Factors

FY19 FY20 Comparison

Proportion of hardware

sales*1

58.4

52.2

-6.2

pt.

Proportion of first-party

software sales*2

83.8

82.8

-1.0

pt.

Proportion of digital

sales*2

24.8

34.0

+9.2

pt.

Average

exchange rate

1 USD

1 Euro

110.91

128.41

yen

108.74

120.82

yen

-2.17

-7.59

yen

*1 Proportion of sales to total dedicated video game platform sales

*2 Proportion of sales to total dedicated video game platform software sales

FY19 FY20 Comparison

Gross profit 501.1

yen

641.7

yen

+28.0

Gross profit ratio 41.7

49.0

％

＋7.3

pt.

FY19 FY20 Comparison

Selling, general and

administrative expenses 251.4

yen

289.3

yen

+15.0

SG&A expenses-to-sales ratio 20.9

22.1

+1.2

pt.

Operating profit 249.7

yen

352.3

yen

+41.1

Operating profit ratio 20.8

26.9

+6.1

pt.

Effect of changes in foreign exchange rates on operating profit: approx. -20.0 billion yen

FY19 FY20 Comparison

Research and development

expenses 69.6

yen

84.1

yen

+20.9

Advertising expenses 75.4

bn yen

76.0

bn yen

+0.8

Selling, General and Administrative Expenses / Operating Profit

Ordinary Profit and Net Profit

Exchange rate

FY19 FY20 Comparison

1 USD

1 Euro

110.99

124.56

yen

108.83

119.55

yen

-2.16

-5.01

yen

Dividends FY19 FY20 Comparison

Annual 810

yen

1,090

yen

+280

yen

FY19 FY20 Comparison

Non-operating income 28.3

yen

25.5

bn yen

9.7

included foreign exchange gains 5.4

yen

Non-operating expenses 0.6

bn yen

17.4

bn yen

+2,541.9

included foreign exchange losses - 15.8

bn yen

Ordinary profit 277.3

bn yen

360.4

bn yen

+30.0

Net profit 194.0

yen

258.6

bn yen

+33.3

Net profit ratio 16.2

19.8

+3.6

pt.

*Net profit: Profit attributable to owners of parent

FY20

(Results)

FY21

(Forecast)

Comparison

Net sales 1,308.5

bn yen

1,200.0

bn yen

-8.3

Operating profit 352.3

bn yen

300.0

bn yen

-14.9

Ordinary profit 360.4

bn yen

290.0

bn yen

-19.5

Net profit 258.6

bn yen

200.0

bn yen

-22.7

*Net profit: Profit attributable to owners of parent

*Estimated exchange rate for FY21: 1 USD = 105 yen, 1 Euro = 115 yen

Dividends

FY20

(Results)

FY21

(Forecast)

Comparison

Annual

1,090

yen

840

yen

250

yen

Nintendo Switch

FY20

(Results)

FY21

(Forecast)

Comparison

Hardware 21.03

mil

units

19.00

mil

units

-9.6

Software 168.72

mil

units

140.00

mil

units

-17.0

*Software sales units for FY20 include the quantity bundled with hardware (3.40 million units).

Consolidated Financial Forecast

2. Business Highlights

Sales Status of Nintendo Switch (Sell-in)

100

150

200

FY19 FY20

Regional Software Unit Sales

Japan The Americas Europe Other

FY19 FY20

Regional Hardware Unit Sales

Japan The Americas Europe Other

(mil units)

FY19 FY20 Comparison

Hardware 16.95

mil

units

21.03

mil

units

+24.0

Nintendo Switch 16.95

mil

units

14.83

mil

units

12.5

Nintendo Switch Lite - 6.19

mil

units

Software 118.55

mil

units

168.72

mil

units

+42.3

Pokémon Sword/ Pokémon Shield

17.37 million units

Animal Crossing: New Horizons Mario Kart 8 Deluxe

11.77 million units 8.08 million units

(mil units)

Number of million-seller titles (FY20)

27 titles

include 18 Nintendo titles and

9 titles by other software publishers

Previous: 4.49 mil units

Current:

5.37 mil units

(

+19%)

Previous: 6.35 mil units

Current:

7.67 mil units

20%)

Previous: 3.80 mil units

Current:

5.06 mil units

33%)

Note: Sell-through refers to units sold by retailers to consumers.

Japan North America

Source: Nintendo, Media Create

Europe

Nintendo Switch System Family Sell-Through

FY2020

FY2019

Apr.-June Jul.-Sept. Oct.-Dec. Jan.-Mar. Apr.-June Jul.-Sept. Oct.-Dec. Jan.-Mar. Apr.-June Jul.-Sept. Oct.-Dec. Jan.-Mar.

13.41

Includes system bundles and digital sales / Source: Nintendo, Media Create

First 6 weeks

Lifetime total

Animal Crossing Series Comparative Sell-Through (JP/US/EUR)

(mil units）

30.0%

70.0%

FY20

Component ratio

of digital sales

Digital Sales

FY19 FY20 Comparison

Digital sales 118.8

yen

204.1

bn yen

+71.8

Proportion of digital sales 24.8

34.0

％

+9.2

pt.

*Proportion to total dedicated video game platform software sales

*Sales of downloadable versions of packaged software, download-only software,

add-on content and Nintendo Switch Online, etc.

Downloadable versions of packaged software

Download-only software, add-on content

and Nintendo Switch Online, etc.

2020 in Japan

May 29

June 5

Releases from June 2020 onward

Release continuous updates

Part 1: Release by end of June 2020

Part 2: Release in fall of 2020

Announced Title Releases for FY21

Mobile, IP Related Income, etc.

FY19 FY20 Comparison

Mobile, IP related income, etc. 46.0

bn yen

51.2

bn yen

11.5

* Includes income from smart

-device content and royalty income

• Addition of multiplayer feature

• More than one third of all sales in US

• Addition of monthly subscription service

• Large increase in active players

IP Expansion Initiatives

3. Reference

Million-Seller Nintendo First-Party Titles

[Note] Software sales units include the quantity bundled with hardware. Software sales units include their downloadable versions.

units in ten thousands

FY20 Life-to-date

Nintendo

Switch

Global

including

Global

Japan Overseas

Pokémon Sword/Pokémon Shield

1,737 452 1,285 1,737

Animal Crossing: New Horizons

1,177 384 793 1,177

Mario Kart 8 Deluxe

808 93 715 2,477

Luigi’s Mansion 3

633 83 550 633

Super Mario Maker 2

548 116 432 548

Super Smash Bros. Ultimate

503 90 413 1,884

The Legend of Zelda: Breath of the Wild

464 45 418 1,741

The Legend of Zelda: Link's Awakening

438 43 395 438

Super Mario Party

370 62 309 1,010

New Super Mario Bros. U Deluxe

329 33 296 660

SUPER MARIO ODYSSEY

297 21 275 1,741

Fire Emblem: Three Houses

287 58 229 287

Ring Fit Adventure

273 89 184 273

Splatoon 2

143 45 98 1,013

Pokémon: Let's Go, Pikachu! Pokémon: Let's Go,

Eevee! 134 14 120 1,197

Pokémon Mystery Dungeon: Rescue Team DX

126 36 89 126

MARVEL ULTIMATE ALLIANCE 3: The Black Order

108 4 104 108

ASTRAL CHAIN

108 16 91 108

FY19

Q1 Q2 Q3 Q4

51.7% 62.4% 61.2% 51.1%

57.8%

59.9%

58.4%

FY20

Q1 Q2 Q3 Q4

50.5% 54.9% 57.4% 39.6%

53.2%

55.6%

52.2%

Proportion of Hardware Sales

FY19

Q1 Q2 Q3 Q4

82.9% 71.0% 89.8% 80.3%

76.8%

84.6%

83.8%

FY20

Q1 Q2 Q3 Q4

74.1% 76.0% 87.4% 85.1%

75.2%

82.0%

82.8%

Proportion of First-Party

Software Sales

*Proportion of hardware (including accessories)

sales to total dedicated video game platform

sales

* Proportion of first-party software sales to total

dedicated video game platform software sales

FY19

Q1 Q2 Q3 Q4

76.6% 78.7% 77.7% 78.7%

77.8%

77.7%

77.9%

FY20

Q1 Q2 Q3 Q4

76.5% 76.9% 78.6% 74.0%

76.8%

77.8%

77.0%

Proportion of Overseas Sales

* Proportion of overseas (outside of Japan) sales

to total sales

Key Indicators

Digital Sales Indicators

FY19

Q1 Q2 Q3 Q4

24.2% 26.0% 19.6% 37.2%

25.1%

21.8%

24.8%

FY20

Q1 Q2 Q3 Q4

38.3% 34.8% 22.3% 48.5%

36.2%

28.6%

34.0%

Proportion of Digital Sales

FY19

Q1 Q2 Q3 Q4

59.3% 59.1% 78.7% 62.6%

59.2%

69.6%

67.6%

FY20

Q1 Q2 Q3 Q4

56.4% 64.5% 71.7% 76.9%

61.0%

65.6%

70.0%

Proportion of Downloadable Versions

of Packaged Software Sales

*Digital sales include (a) downloadable version

of packaged software (the downloadable version

of software that is offered both physically and

digitally), (b) download-only software, (c) add-

on content and (d) Nintendo Switch Online, etc.

FY19

Q1 Q2 Q3 Q4

18.5 bn 20.6 bn 45.0 bn 34.6 bn

39.1 bn

84.2 bn

118.8 bn

FY20

Q1 Q2 Q3 Q4

30.6 bn 40.9 bn 53.2 bn 79.2 bn

71.6 bn

124.9 bn

204.1 bn

Digital Sales

*Proportion of digital sales to total dedicated

video game platform software sales

* Proportion of downloadable versions of packaged

software sales to total digital sales as indicated on

the left: a/(a+b+c+d)

in yen

Supplementary Information on Our Website

Earnings Releases, etc.

・Earning Releases

・Timely Disclosure of Information, etc.

IR Events

・Corporate Management Policy Briefing Presentation Materials

・Financial Results Explanatory Materials, etc.

Financial Highlights Dedicated Video Game Sales Units

・Consolidated Statements of Income

・Consolidated Balance Sheet

・Consolidated Cash Flows

・Key Figures per Share

・Geographical Sales Breakdown

・Sales Breakdown by Category

(Annual/ Quarterly)

(Annual)

(Annual/ Quarterly)

・Total Unit Sales

・Unit Sales

・Number of Titles Released

(Life

-to-date)

(Annual/ Quarterly)

(Annual)

Top Selling Title Sales Units

・Top selling Nintendo software sales units

on an accumulated basis

Historical Data (Updated at fiscal year-end)

・Consolidated Statements of Income Transition

・Consolidated Sales Transition by Region

・Number of Software Titles Released

*Corresponding pages on our website can be accessed by clicking on the titles above.

*Financial Highlights will be updated within 2 business days of our financial announcement.

*Information previously available in Supplementary Information can be found at the following locations:

・Consolidated Statements of Income Transition → Financial Highlights

・Foreign Currency Transaction Information → Earnings Releases (Others, page 13)

Launch Dates of Primary Nintendo Products by Region (Apr. 2019〜Mar. 2020)

Nintendo Switch

Title Launch Date Title Launch Date Title Launch Date

(Hardware) (Hardware) (Hardware)

Nintendo Switch Lite 9/20/2019 Nintendo Switch Lite 9/20/2019 Nintendo Switch Lite 9/20/2019

(Software) (Software) (Software)

Nintendo Labo Toy-Con 04: VR Kit 4/12/2019 Nintendo Labo Toy-Con 04: VR Kit 4/12/2019 Nintendo Labo Toy-Con 04: VR Kit 4/12/2019

Super Mario Maker 2 6/28/2019 Super Mario Maker 2 6/28/2019 Super Mario Maker 2 6/28/2019

MARVEL ULTIMATE ALLIANCE 3: The Black Order 7/19/2019 DRAGON QUEST BUILDERS 2 * 7/12/2019 DRAGON QUEST BUILDERS 2 * 7/12/2019

Fire Emblem: Three Houses 7/26/2019 MARVEL ULTIMATE ALLIANCE 3: The Black Order 7/19/2019 MARVEL ULTIMATE ALLIANCE 3: The Black Order 7/19/2019

TETRIS 99 8/9/2019 Fire Emblem: Three Houses 7/26/2019 Fire Emblem: Three Houses 7/26/2019

ASTRAL CHAIN 8/30/2019 ASTRAL CHAIN 8/30/2019 ASTRAL CHAIN 8/30/2019

The Legend of Zelda: Link's Awakening 9/20/2019 TETRIS 99 9/6/2019 DAEMON X MACHINA * 9/13/2019

Ring Fit Adventure 10/18/2019 DAEMON X MACHINA * 9/13/2019 The Legend of Zelda: Link's Awakening 9/20/2019

Luigiʼs Mansion 3 10/31/2019 The Legend of Zelda: Link's Awakening 9/20/2019 TETRIS 99 9/20/2019

Pokémon Sword 11/15/2019

DRAGON QUEST XI S: DRAGON QUEST XI S:

Pokémon Shield 11/15/2019 Echoes of an Elusive Age - Definitive Edition * Echoes of an Elusive Age - Definitive Edition *

Dr Kawashima's Brain Training for Nintendo Switch 12/27/2019 Ring Fit Adventure 10/18/2019 Ring Fit Adventure 10/18/2019

Tokyo Mirage Sessions #FE Encore 1/17/2020 Luigiʼs Mansion 3 10/31/2019 Luigiʼs Mansion 3 10/31/2019

Pokémon Mystery Dungeon: Rescue Team DX 3/6/2020 Pokémon Sword 11/15/2019 Pokémon Sword 11/15/2019

Animal Crossing: New Horizons 3/20/2020 Pokémon Shield 11/15/2019 Pokémon Shield 11/15/2019

Tokyo Mirage Sessions #FE Encore 1/17/2020 Dr Kawashima's Brain Training for Nintendo Switch 1/3/2020

Pokémon Mystery Dungeon: Rescue Team DX 3/6/2020 Tokyo Mirage Sessions #FE Encore 1/17/2020

Animal Crossing: New Horizons 3/20/2020 Pokémon Mystery Dungeon: Rescue Team DX 3/6/2020

Animal Crossing: New Horizons 3/20/2020

[Note] Launch dates may differ within the United States and Europe regions depending on territories or countries

*This title is licensed to be sold as a Nintendo product.

Launch Schedule of Primary Nintendo Products by Region (extracts: Apr. 2020〜)

Nintendo Switch

Title Launch Date Title Launch Date Title Launch Date

(Software) (Software) (Software)

Xenoblade Chronicles Definitive Edition 5/29/2020 Xenoblade Chronicles Definitive Edition 5/29/2020

Xenoblade Chronicles Definitive Edition

5/29/2020

Clubhouse Games: 51 Worldwide Classics 6/5/2020 Clubhouse Games: 51 Worldwide Classics 6/5/2020

51 Worldwide Games

6/5/2020

Famicom Tantei Club: Kieta Koukeisha 2020 BRAVELY DEFAULT II * 2020 BRAVELY DEFAULT II * 2020

Famicom Tantei Club: Ushiro ni Tatsu Shoujo 2020 Bayonetta 3 TBA Bayonetta 3 TBA

Bayonetta 3 TBA Metroid Prime 4 (temp.) TBA Metroid Prime 4 (temp.) TBA

Metroid Prime 4 (temp.) TBA The sequel to The Legend of Zelda: Breath of the Wild (temp.) TBA The sequel to The Legend of Zelda: Breath of the Wild (temp.) TBA

The sequel to The Legend of Zelda: Breath of the Wild (temp.) TBA

[Note] Launch dates and titles etc. are subject to change.

Launch dates may differ within the United States and Europe regions depending on territories or countries

*This title is licensed to be sold as a Nintendo product.

Upcoming Software Publishers' Title Lineup (extracts: Apr. 2020〜)

Nintendo Switch

Title Publisher Title Publisher Title Publisher

KOWLOON YOHMA GAKUENKI: ORIGIN OF ADVENTURE ARC SYSTEM WORKS Borderlands Legendary Collection 2K Borderlands Legendary Collection 2K

Catherine: Full Body for Nintendo Switch ATLUS Bioshock: The Collection 2K Bioshock: The Collection 2K

Kotoba no Puzzle: Mojipittan Encore BANDAI NAMCO Entertainment XCOM 2 Collection 2K XCOM 2 Collection 2K

NAMCOT COLLECTION BANDAI NAMCO Entertainment Levelhead Butterscotch Shenanigans SuperMash Digital Continue

Mr. DRILLER DrillLand

BANDAI NAMCO Entertainment SuperMash Digital Continue Streets of Rage 4 Dotemu

Utano Prince Sama

Streets of Rage 4 Dotemu Burnout Paradise Remastered Electronic Arts

Amazing Aria & Sweet Serenade LOVE for Nintendo Switch

Burnout Paradise Remastered Electronic Arts Ninjala GungHo Online Entertainment

BRIGANDINE The Legend of Runersia

HAPPINET

Ninjala

GungHo Online Entertainment

Minecraft Dungeons

Mojang Synergies / Xbox Game Studios

Hakuoki Shinkai Ginseinosho IDEA FACTORY Minecraft Dungeons Mojang Synergies / Xbox Game Studios The Outer Worlds Private Division

Harukanaru Toki no Naka de 7 KOEI TECMO GAMES The Outer Worlds Private Division Trials of Mana Square Enix

FAIRY TAIL KOEI TECMO GAMES Trials of Mana Square Enix Moving Out Team17

eBASEBALL PAWAFURU PUROYAKYU 2020 KONAMI Moving Out Team17 NARUTO SHIPPUDEN: Ultimate Ninja STORM 4 ROAD TO BORUTO Bandai Namco Entertainment

Rodents 2 NIPPON COLUMBIA Ghost of a Tale Plug In Digital

Zumba Burn It Up! SEGA The Elder Scrolls: Blades Bethesda Softworks

Trials of Mana SQUARE ENIX Railway Empire - Nintendo Switch Edition Kalypso Media Group

SYNAPTIC DRIVE Yunuo International

Launch titles are listed by publisher alphabetically.

This list includes titles that are released as download-only software.

[Note] Launch schedules, software names etc. are subject to change.

Japan The United States Europe

9/27/2019 9/27/2019

BROCCOLI

Japan The United States Europe