Financial Results Explanatory Material (with Notes) (546KB)

Financial Results Explanatory Material

2nd Quarter of Fiscal Year Ending March 2022

Nintendo Co., Ltd.

November 4, 2021

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Nintendo Co., Ltd.

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1. Consolidated Financial Results and Outlook

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Nintendo Co., Ltd.

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Consolidated Financial Highlights

FY21/Q1-Q2FY22/Q1-Q2 Comparison

Net sales	769.5	bn yen	624.2	bn yen	-18.9%
Operating profit	291.4	bn yen	219.9	bn yen	-24.5%
Operating profit ratio	37.9	%	35.2 %	-2.6	pt.
Ordinary profit	297.4	bn yen	236.2	bn yen	-20.6	%
Net profit	213.1	bn yen	171.8	bn yen	-19.4	%
Net profit ratio	27.7	%	27.5 %	-0.2	pt.

*Net profit: Profit attributable to owners of parent *FY = Fiscal Year

FY22/Q1-Q2 indicates the period between April 1, 2021 and September 30, 2021.

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• Year-on-year,net sales for the first six months of this fiscal year declined by 18.9% to 624.2 billion yen, operating profit declined by 24.5% to 219.9 billion yen, ordinary profit declined by 20.6% to 236.2 billion yen, and profit attributable to owners of parent declined by 19.4% to 171.8 billion yen.

Nintendo Co., Ltd.

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Consolidated Sales

	FY21/Q1-Q2	FY22/Q1-Q2	Comparison
Net sales	769.5 bn yen	624.2	bn yen	-18.9%
Dedicated video game platform*1	741.9 bn yen	597.4	bn yen	-19.5%
Mobile, IP related income, etc.*2	26.7	bn yen	25.5	bn yen	-4.6%
Playing cards, etc.	0.8	bn yen	1.3	bn yen	+47.2 %

*1 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: +24.0 billion yen

FY22/Q1-Q2 Regional Sales Ratio

10.5%	Japan
21.7%
24.1%	The Americas
Europe
43.7%	Other

Proportion of overseas sales: 78.3%

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• Sales from our dedicated video game platform business decreased by 19.5% year- on-year to 597.4 billion yen. Sales and profits for the first half of this fiscal year declined compared to the same period of last fiscal year, when Animal Crossing: New Horizons drove the entire Nintendo Switch business significantly. However, the results for the first half of this fiscal year have remained at a high level, in line with our expectations.
• Royalty income increased year-on-year, but income from smart-device content decreased, with the result that overall sales in our mobile, IP related business declined by 4.6% to 25.5 billion yen.

Nintendo Co., Ltd.

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Gross Profit

		FY21/Q1-Q2	FY22/Q1-Q2	Comparison
Gross profit		434.0 bn yen	372.7	bn yen	-14.1%
Gross profit ratio	56.4 %	59.7	%	+3.3 pt.
		Main Variable Factors
		FY21/Q1-Q2	FY22/Q1-Q2	Comparison
Proportion of hardware	51.1 %	46.5		-4.6pt.
sales*1		%
Proportion of first-party	81.9 %	70.6		-11.3pt.
software sales*2	%
Proportion of digital	47.2 %	45.1		-2.1pt.
sales*2		%
Average	1 USD	106.84 yen	109.78	yen	+2.94 yen
exchange rate	1 Euro	121.24 yen	130.83	yen	+9.59 yen
*1 Proportion of sales to total dedicated video game platform sales			5
*2 Proportion of sales to total dedicated video game platform software sales

• Gross profit declined by 14.1% year-on-year to 372.7 billion yen due to the decrease in sales.
• The gross profit ratio increased by 3.3 percentage points year-on-year to 59.7%, due mainly to the increase in the proportion of software sales and the exchange- rate effect of a weak yen, even though the ratio of digital sales as well as first- party software sales to total software sales declined.

Nintendo Co., Ltd.

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