Outline of consolidated financial results for the six months ended September 30, 2011 and consolidated earnings forecast for the fiscal year ending March 31, 2012
Outline | Presentation by the President (Text) | Q & A
Yoshihiro Mori, Senior Managing Director, Nintendo Co., Ltd.
This outline is based on the documents "Earnings Releases" and "Supplementary Information about Earnings Releases" for the 2nd quarter of the fiscal year ending March 31, 2012, and "Notice of Semi-Annual Financial Forecast Differences with its Results, Full-Year Financial Forecast Modifications and Dividend Information."
- 1. Briefing of consolidated financial results for the six months ended September 30, 2011
- * Comparison with the same period of the previous fiscal year
A. Consolidated operating results for the six months ended September 30, 2011
* Percentages indicate the changes from the same period of the previous fiscal year.Net Sales: 215.7 billion yen -40.6%* Gross Profit: 32.0 billion yen -78.5%* Operating Income: -57.3 billion yen - Ordinary Income: -107.8 billion yen - Net Income: -70.2 billion yen -
(Main reasons for the decrease in net sales)
The net sales were down due to a lack of hit software titles, which resulted in a decrease in the unit sales of "Wii" and "Nintendo DS" hardware and software around the world, and a downturn in sales of "Nintendo 3DS" until the hardware price reduction was implemented this August. In addition, there were a few other factors which led to the decline of sales; the effect of the price reductions of hardware systems, the impact of absorbing the inventory markdown taken into account in connection with the price reductions, and the stronger yen against the U.S. dollar compared to the same period of the previous fiscal year.
(Main reasons for the decrease in gross profit ratio)
The main reasons were, in addition to the growth of hardware sales ratio out of the total net sales, a decrease in the hardware profitability ratio because of the effect of the price reductions for "Wii" and "Nintendo 3DS" hardware, and the impact of absorbing the inventory markdown taken into account in connection with the price reductions.
(Main reasons for operating losses)
Operating losses arose from a sizable drop of gross profits along with a decrease in sales and the gross profit ratio, and a smaller reduction of the total of selling, general and administrative expenses including fixed expenses than that of gross profit.
(Main reasons for ordinary losses)
Ordinary losses stemmed from 52.4 billion yen of foreign exchange losses as well as operating losses.
B. The balance of cash and deposits on the consolidated balance sheetsAs of Mar. 31, 2011 As of Sep. 30, 2011 Cash and Deposits 812.8 billion yen 591.2 billion yen
The balance of cash and deposits were lowered due to, in addition to the effect of the appreciation of yen against the U.S. dollar and Euro, the fact that payments made for trade accounts payable, ordinary expenses, corporate income taxes and dividends surpassed money received by collections of trade accounts receivable and redemption of securities. - 2. Briefing of consolidated earnings forecast modifications and dividends for the fiscal year ending March 31, 2012
- Earnings forecasts for the fiscal year ending March 31, 2012 has been revised from the forecasts announced on July 28, 2011.
Full year ending March 31, 2012Previous Forecast Revised Forecast Net Sales 900 billion yen 790 billion yen Operating Income 35 billion yen 1 billion yen Ordinary Income 35 billion yen -30 billion yen Net Income 20 billion yen -20 billion yen
Foreign exchange rate assumptions at the end of this fiscal year have been revised from 80 yen to 77 yen per U.S. dollar, and from 115 yen to 106 yen per Euro.
Forecasted unit sales for the full fiscal year ending March 31, 2012 have been modified as follows;
(Forecasted unit sales for "Wii" and "Nintendo 3DS" hardware systems have not been changed.)
* Software unit sales in the previous forecast announced on July 28 include about two million units of software bundled with hardware during the June quarter, and those in the revised forecast include about four million units of software bundled with hardware during the six months ended September.Previous Forecast Revised Forecast Wii Hardware 12 million units 12 million units Wii Software * 110 million units 100 million units Nintendo DS Hardware 9 million units 6 million units Nintendo DS Software 65 million units 62 million units Nintendo 3DS Hardware 16 million units 16 million units Nintendo 3DS Software 70 million units 50 million units The earnings forecast has been modified to reflect the trend of stronger-than-expected yen appreciation, the sales performance in the first half of this fiscal year and the updated sales outlook in the second half of this fiscal year.If the actual financial results are in line with our modified financial forecasts, the annual dividend per share for the fiscal year ending March 31, 2012 is expected to be 10 yen. However, since we expect that the financial performance will be revitalized going into the fiscal year ending March 31, 2013, the annual dividend per share for the fiscal year ending March 31, 2012 is expected to be 100 yen and this is set to be the minimum dividend per share for this fiscal year.
Forecasts referred to above are based upon management's assumptions with information available at the time the announcement was made and, therefore, involve known and unknown risks and uncertainties. Please note that such risks and uncertainties may cause actual results to be materially different from the forecasts (earnings forecast, dividend forecast and other forecasts).
Outline | Presentation by the President (Text) | Q & A
