Outline of consolidated financial results for the six months ended September 30, 2015 and consolidated earnings forecast for the fiscal year ending March 31, 2016

Outline | Presentation by the President | Q & A

This outline is based on the documents “Earnings Release,” “Notice of Dividend (end of 2nd quarter) and Dividend Forecast Modifications,” and “Supplementary Information about Earnings Release” for the 2nd quarter of the fiscal year ending March 31, 2016.

1. Briefing of consolidated financial results for the six months ended September 30, 2015

A. Consolidated operating results for the six months ended September 30, 2014 and 2015

	Six months ended Sep. 30, 2014	Six months ended Sep. 30, 2015	Comparison
Net Sales	171.3 billion yen	204.1 billion yen	19.1%
Gross Profit	81.0 billion yen	93.6 billion yen	15.5%
(Gross Profit Ratio)	(47.3%)	(45.9%)
Operating Income	-0.2 billion yen	8.9 billion yen	-
(Operating Income Ratio)	(-0.1%)	(4.4%)
Ordinary Income	22.1 billion yen	16.4 billion yen	-25.9%
(Ordinary Income Ratio)	(13.0%)	(8.1%)
Profit Attributable to Owners of Parent	14.3 billion yen	11.4 billion yen	-19.8%
(Profit Attributable to Owners of Parent Ratio)	(8.3%)	(5.6%)

(Net sales)
For Nintendo 3DS, New Nintendo 3DS and New Nintendo 3DS XL, which were launched during the previous fiscal year, continued to expand their sales and global sales units of Nintendo 3DS hardware were up compared to the same period of the previous fiscal year. As for the Nintendo 3DS software, Animal Crossing: Happy Home Designer became a hit, reaching double million units in sales. In the Japanese market, titles such as Fire Emblem Fates: Birthright/Conquest and Rhythm Tengoku (temp.) were released, whereas in the overseas markets, due to the low number of new key titles, overall sales units of Nintendo 3DS software were down compared to the same period of the previous fiscal year.
For Wii U, Splatoon and Super Mario Maker, which were released globally, both became million sellers. At the same time, popular titles, which were launched during the previous fiscal year such as Mario Kart 8, continued to show steady sales and overall sales units of Wii U software were up compared to the same period of the previous fiscal year. As for Wii U hardware, sales units in overseas markets did not expand compared to the same period of the previous fiscal year, which was when Mario Kart 8 was released. On the other hand, in the Japanese market, because Splatoon and Super Mario Maker drove hardware sales, overall sales units of Wii U hardware were up compared to the same period of the previous fiscal year.
For amiibo, the figure type continued to enjoy robust sales. At the same time, the card type was newly released and the overall amiibo business performed well.
As a result, the net sales were up compared to the same period of the previous fiscal year.

(Gross profit ratio)
The gross profit ratio compared to the same period of the previous fiscal year decreased by 1.4 % to 45.9 % mainly because of the increase in proportion of hardware sales.

(Operating income)
Though gross profit increased by 12.5 billion yen compared to the same period of the previous fiscal year, selling, general and administrative expenses increased by 3.4 billion yen mainly as a result of the applied foreign exchange rates against Japanese yen.

(Ordinary income)
Though operating income increased by approximately nine billion yen compared to the same period of the previous fiscal year, mainly foreign exchange gains included in non-operating income decreased by 14.8 billion yen.

B. Dividend

Based on our dividend policy, the end of 2nd quarter dividend per share for the fiscal year ending March 31, 2016 is set at 30 yen.

2. Briefing of consolidated earnings forecast for the fiscal year ending March 31, 2016: Entering the latter half of the fiscal year, for Nintendo 3DS, we are planning to release a number of new key titles, including The Legend of Zelda: Tri Force Heroes, Mario & Luigi: Paper Jam and Pokémon Super Mystery Dungeon. We will also strive to increase sales of previously released key titles such as Animal Crossing: Happy Home Designer. For Wii U, by maintaining the attention level of Super Mario Maker and Splatoon, which both got off to good starts, we will strive to further expand sales towards the year-end sales season. In addition, we will release new titles such as Animal Crossing: amiibo Festival, Mario Tennis: Ultra Smash and Star Fox Zero sequentially. Furthermore, for amiibo, we will further enhance the lineup of figure types and card types in order to further increase sales.

There are no revisions to the consolidated financial forecast announced on May 7, 2015.

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