This outline is based on the documents “Earnings Release,”, “Supplementary Information about Earnings Release” for the fiscal year ended March 31, 2016.
- 1. Briefing of consolidated financial results for the fiscal year ended March 31, 2016
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A. Consolidated operating results for the fiscal years ended March 31, 2015 and 2016
Year ended March 31, 2015 Year ended March 31, 2016 Comparison Net Sales 549.7 billion yen 504.4 billion yen -8.2 % Gross Profit 214.5 billion yen 220.9 billion yen 3.0 % (Gross Profit Ratio) (39.0 %) (43.8 %) Operating Income 24.7 billion yen 32.8 billion yen 32.7 % (Operating Income Ratio) (4.5 %) (6.5 %) Ordinary Income 70.5 billion yen 28.7 billion yen -59.2 % (Ordinary Income Ratio) (12.8 %) (5.7 %) Profit Attributable to
Owners of Parent41.8 billion yen 16.5 billion yen -60.6 % (Profit Attributable to
Owners of Parent Ratio)(7.6 %) (3.3 %)
(Net sales)
For Wii U, Splatoon and Super Mario Maker, which were released during this period, became blockbusters and contributed to energizing the Wii U platform. In addition, The Legend of Zelda: Twilight Princess HD, which was released globally in March, got off to a good start. The Wii U hardware unit sales were around the same level as the prior fiscal year whereas Wii U software sales units were up compared to the prior fiscal year.
With respect to Nintendo 3DS, Animal Crossing: Happy Home Designer and Pokémon Super Mystery Dungeon, which were released this period, performed strongly. However, compared to the prior fiscal year, which enjoyed releases of huge hit titles such as Pokémon Omega Ruby/Pokémon Alpha Sapphire and Super Smash Bros. for Nintendo 3DS, sales units of the Nintendo 3DS software and hardware were down in all regions.
As a result, net sales were down compared to the prior fiscal year despite increases in the sales of amiibo, and an increase in download sales, including additional download content for the Nintendo 3DS and Wii U software titles.
(Operating income)
As a result of an increase in gross profit by 6.3 billion yen and efforts made to balance revenue and expenses, operating income was 32.8 billion yen.
(Ordinary income)
Even though operating income increased by 8.1 billion yen compared to the prior fiscal year, mainly due to foreign exchange losses totaling 18.3 billion yen, ordinary income was 28.7 billion yen.
B. The annual dividend per share for the fiscal year ended March 31, 2016
Based on our dividend policy, the annual dividend per share for the fiscal year ended March 31, 2016 is calculated to be 100 yen. However, on the basis of our dividends paid in the last few years and improvements in balancing revenue and expenses, we will maintain our initial dividend forecast and will pay 150 yen as the annual dividend per share for this fiscal year.
- 2. Briefing of consolidated earnings forecast for the fiscal year ending March 31, 2017
Consolidated earnings forecasts for the fiscal year ending March 31, 2017 are as follows:
Net Sales 500.0 billion yen Operating Income 45.0 billion yen Ordinary Income 45.0 billion yen Profit Attributable to Owners of Parent 35.0 billion yen
The foreign exchange rate assumptions are 110 yen per U.S. dollar, and 125 yen per euro.
Forecasted unit sales for the fiscal year ending March 31, 2017 are as follows:
Nintendo 3DS Hardware 5.0 million units Nintendo 3DS Software 55.0 million units Wii U Hardware 0.8 million units Wii U Software 15.0 million units
[Note]
- 1. The new dedicated video game hardware codenamed "NX" is scheduled for launch in March of 2017. Its estimated hardware and software sales units are reflected in the financial forecast ending March 31, 2017, however, we are not disclosing the specific information as it is provisional.
- 2. Please also refer to the “Earnings Release” for the fiscal year ended March 31, 2016 for the above forecast.
For our smart device business, we will continuously release new apps in order to expand the revenue.
The forecasted annual dividend per share for the fiscal year ending March 31, 2017 is expected to be 150 yen, provided the actual results meet the forecasts.
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).
