Third Quarter Financial Results Briefing for Fiscal Year Ending March 2016

4	Nintendo has been working to restore balance between revenue and expenses and has announced a number of new ventures during this and last fiscal years in order to realize Nintendo-like profits from next fiscal year on. How would you evaluate your current progress on your plans, such as reorganization and business partnerships? What areas need improvement in the future?
4	Kimishima: We have made a number of changes to our corporate structure to gear up for our new ventures. For example, (as I have described before,) where development was split between handheld and home console divisions in the past, we have unified these activities for both hardware and software development, and the exciting new ideas coming from development are evidence of the progress being made as a result of that unification. We are also making steady progress in working with our partners in a variety of businesses. Of course, gaps in communication that may arise from reorganization could hinder plans that require timely execution. This is why our Corporate Planning Department is also implementing organizational reform that allows for precise understanding of progress across the whole company. The General Manager of the Corporate Planning Department has a lead role in this project. To achieve Nintendo-like profits, one important factor will be establishing a solid launch for our NX and smart device businesses. I believe the key to doing this is to allocate our resources appropriately to proceed with hardware and software development on schedule and deliver our products to our consumers in a timely manner.

4

Nintendo has been working to restore balance between revenue and expenses and has announced a number of new ventures during this and last fiscal years in order to realize Nintendo-like profits from next fiscal year on. How would you evaluate your current progress on your plans, such as reorganization and business partnerships? What areas need improvement in the future?

4

Kimishima:

We have made a number of changes to our corporate structure to gear up for our new ventures. For example, (as I have described before,) where development was split between handheld and home console divisions in the past, we have unified these activities for both hardware and software development, and the exciting new ideas coming from development are evidence of the progress being made as a result of that unification. We are also making steady progress in working with our partners in a variety of businesses.

Of course, gaps in communication that may arise from reorganization could hinder plans that require timely execution. This is why our Corporate Planning Department is also implementing organizational reform that allows for precise understanding of progress across the whole company. The General Manager of the Corporate Planning Department has a lead role in this project.

To achieve Nintendo-like profits, one important factor will be establishing a solid launch for our NX and smart device businesses. I believe the key to doing this is to allocate our resources appropriately to proceed with hardware and software development on schedule and deliver our products to our consumers in a timely manner.

5	The "Message from the President" has been updated from President Iwata's message to your message, President Kimishima (as posted on the Nintendo website in December 2015). In your message, you discuss "increasing the number of people who have access to Nintendo's intellectual property." This could be misinterpreted as Nintendo only being focused on consumers who are interested in its character IP (for example, licensed goods). Can you explain the intent behind this message?
5	Kimishima: The policy I have discussed (in the "Message from the President" on the Nintendo website as well as in the Corporate Management Policy Briefing in October 2015) is our mission to increase the number of people who have access to Nintendo IP. For example, due to changes in our industry, the proportion of young consumers who are first experiencing games on our systems has been falling. We want to have everyone become familiar with our IP by reaching as many people as possible from an early age within their daily lives. Our long-term strategy is to spark our consumers' interest in playing Nintendo game systems and encouraging continued growth of our games business. I can provide a couple of examples from outside of Japan. In America, many children are using electric toothbrushes featuring Mario characters to brush their teeth every day. We have also worked with a shoe company to launch shoes that feature the designs of Nintendo game systems. As you know, we are also working on a theme park featuring Nintendo IP. Our policy and the focus of our current activities is to create more chances for our consumers to experience the charm of Nintendo IP, not just on our dedicated video game systems, but outside of game software as well.

5

The "Message from the President" has been updated from President Iwata's message to your message, President Kimishima (as posted on the Nintendo website in December 2015). In your message, you discuss "increasing the number of people who have access to Nintendo's intellectual property." This could be misinterpreted as Nintendo only being focused on consumers who are interested in its character IP (for example, licensed goods). Can you explain the intent behind this message?

5

Kimishima:

The policy I have discussed (in the "Message from the President" on the Nintendo website as well as in the Corporate Management Policy Briefing in October 2015) is our mission to increase the number of people who have access to Nintendo IP. For example, due to changes in our industry, the proportion of young consumers who are first experiencing games on our systems has been falling. We want to have everyone become familiar with our IP by reaching as many people as possible from an early age within their daily lives. Our long-term strategy is to spark our consumers' interest in playing Nintendo game systems and encouraging continued growth of our games business.

I can provide a couple of examples from outside of Japan. In America, many children are using electric toothbrushes featuring Mario characters to brush their teeth every day. We have also worked with a shoe company to launch shoes that feature the designs of Nintendo game systems. As you know, we are also working on a theme park featuring Nintendo IP. Our policy and the focus of our current activities is to create more chances for our consumers to experience the charm of Nintendo IP, not just on our dedicated video game systems, but outside of game software as well.

6	When you became president, Mr. Kimishima, I believe you stated that you would be carrying on the existing strategies, but we also expect that you will bring your personal touch to Nintendo's business strategy. Do you have a plan that you can share today, or do you intend to leave strategy to the younger generation? Are there any particular goals that you have set for yourself?
6	Kimishima: As you said, when I became president, I stated that my role was to continue to proceed on the course that I helped to set with President Iwata and the rest of the management at that time. The ideas of our young employees are also key to our ability to transition to the next generation and to continue to produce exciting ideas. It is important to structure our organization so that these young people can take active roles. We have worked to establish such an organization; one that will allow our employees to reach their full potential in many different areas. It may be difficult to see from outside of the company, but we have made major changes to our organization. For example, our game developers have not had much of a public presence in the past, but we would like to create more and more opportunities for you to get to know them in the future. As for business strategy, the hardware-software integrated business will remain the core of our game business, but we ensure that we will also expand this to include smart device activity and fuse these businesses into a synergistic whole. “My Nintendo” is a crucial part of this strategy as well. We seek to deepen our relationship with our consumers by having them join the “My Nintendo” program. I would also like to touch on the QOL (Quality of Life) program today. We do not feel that we are currently at a stage where we can commercialize a product that deals with sleep and fatigue, so we are not planning to launch any products in this area in the fiscal year ending in March 2016. However, we do believe there is potential in the QOL sector, so we will continue to consider further development in this area.

6

When you became president, Mr. Kimishima, I believe you stated that you would be carrying on the existing strategies, but we also expect that you will bring your personal touch to Nintendo's business strategy. Do you have a plan that you can share today, or do you intend to leave strategy to the younger generation? Are there any particular goals that you have set for yourself?

6

Kimishima:

As you said, when I became president, I stated that my role was to continue to proceed on the course that I helped to set with President Iwata and the rest of the management at that time. The ideas of our young employees are also key to our ability to transition to the next generation and to continue to produce exciting ideas. It is important to structure our organization so that these young people can take active roles. We have worked to establish such an organization; one that will allow our employees to reach their full potential in many different areas. It may be difficult to see from outside of the company, but we have made major changes to our organization. For example, our game developers have not had much of a public presence in the past, but we would like to create more and more opportunities for you to get to know them in the future.

As for business strategy, the hardware-software integrated business will remain the core of our game business, but we ensure that we will also expand this to include smart device activity and fuse these businesses into a synergistic whole. “My Nintendo” is a crucial part of this strategy as well. We seek to deepen our relationship with our consumers by having them join the “My Nintendo” program.

I would also like to touch on the QOL (Quality of Life) program today. We do not feel that we are currently at a stage where we can commercialize a product that deals with sleep and fatigue, so we are not planning to launch any products in this area in the fiscal year ending in March 2016. However, we do believe there is potential in the QOL sector, so we will continue to consider further development in this area.