Nintendo : Financial Briefing for the Fiscal Term Ended March 2021 (Conference Call) - Financial Results Explanatory Material (with Notes) (1.4MB)

Fiscal Year Ended March 2021

Financial Results Explanatory Material

Nintendo Co., Ltd.

May 6, 2021

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Nintendo Co., Ltd.

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1. Consolidated Financial Results and Outlook

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• We would like to talk about our consolidated financial results for the fiscal year ended March 2021, and the consolidated financial forecast for the fiscal year ending March 2022.

Nintendo Co., Ltd.

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Consolidated Financial Highlights

FY20FY21 Comparison

Net sales	1,308.5	bn yen	1,758.9	bn yen	+34.4	%
Operating profit	352.3	bn yen	640.6	bn yen	+81.8	%
Operating profit ratio	26.9	%	36.4 %	+9.5 pt.
Ordinary profit	360.4	bn yen	678.9	bn yen	+88.4	%
Net profit	258.6	bn yen	480.3	bn yen	+85.7	%
Net profit ratio	19.8	%	27.3 %	+7.5 pt.

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

FY21 indicates the period between April 1, 2020 and March 31, 2021.

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• Year-on-year,net sales for this fiscal year rose by 34.4% to 1,758.9 billion yen, operating profit rose by 81.8% to 640.6 billion yen, ordinary profit rose by 88.4% to 678.9 billion yen, and profit attributable to owners of parent rose by 85.7% to 480.3 billion yen.

Nintendo Co., Ltd.

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Consolidated Sales

	FY20		FY21	Comparison
Net sales	1,308.5 bn yen	1,758.9	bn yen	+34.4 %
Dedicated video game platform*1	1,254.1 bn yen	1,700.0	bn yen	+35.6 %
Mobile, IP related income, etc.*2	51.2	bn yen	57.0	bn yen	+11.3 %
Playing cards, etc.	3.0	bn yen	1.7	bn yen	-41.9%

*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: -11.2 billion yen

FY21 Regional Sales Ratio

10.7% 22.6%	Japan
25.1%	The Americas
	Europe
41.6%	Other

Proportion of overseas sales: 77.4%

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• Next, we would like to give a breakdown of consolidated sales.
• Sales from our dedicated video game platform business grew by 35.6% year-on- year to 1,700.0 billion yen.
• Sales of Nintendo Switch hardware and software both have performed well since the start of the fiscal year, contributing to the overall increase in sales. While Nintendo Switch sales have grown in all regions, they continue to be strong in Australia and the Asia region, and the percentage of sales accounted for by "Other" regions is increasing.
• Sales from smart-device content were on the same level year-on-year, but royalty income increased, resulting in a 11.3% rise in overall sales in our mobile and IP related business to 57.0 billion yen.
• The impact of the exchange rate on net sales was a reduction of 11.2 billion yen year-on-year.

Nintendo Co., Ltd.

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Gross Profit

		FY20	FY21	Comparison
Gross profit		641.7 bn yen	970.4	bn yen	+51.2 %
Gross profit ratio	49.0 %	55.2	%	+6.1 pt.
		Main Variable Factors
		FY20	FY21	Comparison
Proportion of hardware	52.2 %	52.7		+0.5 pt.
sales*1		%
Proportion of first-party	82.8 %	79.4		-3.4pt.
software sales*2	%
Proportion of digital	34.0 %	42.8		+8.8 pt.
sales*2		%
Average	1 USD	108.74 yen	106.03	yen	-2.71yen
exchange rate	1 Euro	120.82 yen	123.68	yen	+2.86 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

• Next, we would like to take an itemized look at profits.
• Gross profit increased by 51.2% year-on-year to 970.4 billion yen as a result of the rise in net sales.
• The gross profit margin increased by 6.1 percentage points year-on-year to 55.2%, helped by an increase in the ratio of digital sales to total software sales, even though the proportion of software sales in the total sales declined.

Nintendo Co., Ltd.

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