Outline of consolidated financial results for the fiscal year ended March 31, 2012 and consolidated earnings forecast for the fiscal year ending March 31, 2013
Outline | Presentation by the President | Q & A
Yoshihiro Mori, Senior Managing Director, Nintendo Co., Ltd.
This outline is based on the documents "Earnings Release" and "Supplementary Information about Earnings Release" for the fiscal year ended March 31, 2012.
- 1. Briefing of consolidated financial results for the full fiscal year ended March 31, 2012
- * Comparison with the previous fiscal year
A. Consolidated operating results for the full fiscal year ended March 31, 2012
* Percentages indicate the changes from the previous fiscal year.Net Sales: 647.6 billion yen -36.2%* Gross Profit: 153.6 billion yen -60.4%* Operating Income: -37.3 billion yen - Ordinary Income: -60.8 billion yen - Net Income: -43.2 billion yen -
(Main reasons for the decrease in net sales)
The net sales were down due to a decrease in the unit sales of the "Wii" and "Nintendo DS" hardware and software around the world, though the sales units of the "Nintendo 3DS," available throughout the year from this fiscal year, grew as a result of the hardware price reduction implemented last August and hit software titles released in the year-end sales season. 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 average exchange rates of the U.S. dollar and Euro, which were used to convert the sales in foreign currencies to those in yen, compared to the previous fiscal year.
(Main reasons for the decrease in gross profit ratio)
The main reasons were a drastic decrease in the hardware profitability ratio due to the effect of the price reductions for the "Wii" and "Nintendo 3DS" hardware, and the impact of absorbing the inventory markdown taken into account in connection with the price reductions. The growth of the "Nintendo 3DS" hardware sales ratio out of the total net sales also led to the decrease in gross profit ratio because the "Nintendo 3DS" hardware was sold at a loss due to its price reduction.
(Main reasons for operating loss)
Operating loss 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 loss)
Ordinary loss stemmed from 27.7 billion yen of foreign exchange losses mainly due to the appreciation of the yen against the U.S. dollar and Euro, in comparison with the exchange rates at the end of the previous fiscal year, as well as operating loss.
B. The balance of cash and deposits on the consolidated balance sheetsAs of Mar. 31, 2011 As of Mar. 31, 2012 Cash and Deposits 812.8 billion yen 462.0 billion yen
The balance of cash and deposits was lowered primarily due to the facts that the payment for purchases of short-term and long term investment securities was made, that money provided mainly by collections of trade accounts receivable, which decreased due to the decline of net sales, fell short of the payments made for trade accounts payable, ordinary expenses, corporate income taxes and dividends, and that the yen was appreciated against the U.S. dollar and Euro.
C. The annual dividend per share for the fiscal year ended March 31, 2012
If our dividend policy is applied in accordance with the financial result, the annual dividend per share is zero; however, the annual dividend per share for the fiscal year ended March 31, 2012 has been established at 100 yen since we expect that the financial performance will be revitalized going into the following year. - 2. Briefing of consolidated earnings forecast for the fiscal year ending March 31, 2013
- Earnings forecasts for the full fiscal year ending March 31, 2013 are as follows;
* Percentages indicate the changes from the previous fiscal year.Net Sales: 820.0 billion yen 26.6%* Operating Income: 35.0 billion yen - Ordinary Income: 35.0 billion yen - Net Income: 20.0 billion yen -
Foreign exchange rate assumptions at the end of this fiscal year are 80 yen per U.S. dollar, and 105 yen per Euro.
Forecasted unit sales for the full fiscal year ending March 31, 2013 are as follows;
Nintendo DS Hardware 2.5 million units Nintendo DS Software 37.0 million units Nintendo 3DS Hardware 18.5 million units Nintendo 3DS Software 73.0 million units Wii Hardware 10.5 million units Wii Software 70.0 million units *Nintendo DS means Nintendo DS, Nintendo DS Lite, Nintendo DSi, and Nintendo DSi XL.*Forecasted software sales units do not include the quantity bundled with hardware.*Forecasted "Wii" hardware and software sales units include the quantity of the “Wii U” hardware and software.*Forecasted sales units of the "Nintendo 3DS" software and the "Wii U" software contained in the "Wii" software include the quantity of the packaged software by means of digital distribution.The forecasted annual dividend per share for the fiscal year ending March 31, 2013 is expected to be 100 yen and this is set to be the minimum dividend per share for this fiscal year.For the fiscal year ending March 31, 2013, we aim to make the "Nintendo 3DS" spread more widely and to make the “Wii U” spread from the beginning of its launch.
We will continue to strive to expand our business by providing games and services which make use of the features of those hardware systems.
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 | Q & A
