1. Basic Management Policy

As an entertainment company that creates smiles, Nintendo Co., Ltd. ("the Company") and its consolidated subsidiaries (together with the Company, "Nintendo") strive to introduce new forms of entertainment while maintaining a robust corporate management. To expand our business, our highest emphasis is placed on providing customers around the world with exciting forms of entertainment that they have never experienced before.

2. Basic Policy of Profit Distribution

 It is the Company's basic policy to internally provide the capital necessary to fund future growth, including capital investments, and to maintain a strong and liquid financial position in preparation for changes in the business environment and intensified competition. As for direct profit returns to our shareholders, dividends are paid based on profit levels achieved in each fiscal period.

The annual dividend per share will be established at the higher of the amount calculated by dividing 40% of consolidated operating profit by the total number of outstanding shares, excluding treasury shares, as of the end of the fiscal year rounded up to the 1 yen digit, and the amount calculated based on the 60% consolidated profit (i.e. dividing 60% of consolidated profit by the annual average number of outstanding shares, excluding treasury shares) rounded up to the 1 yen digit.

The interim (end of 2nd quarter) dividend per share is calculated by dividing 40%* of consolidated operating profit by the total number of outstanding shares, excluding treasury shares, as of the end of the six-month period rounded up to the 1 yen digit.

Retained earnings are maintained for effective use in research of new technology and development of new products, capital investments and securing materials, enhancement of selling power including advertisement, and common stock buyback whenever deemed appropriate.

*The interim (end of 2nd quarter) dividend for the fiscal year ending March 2026 is calculated in accordance with the previous dividend policy, and the total dividend payment is based on 33% of consolidated operating profit for the interim (end of 2nd quarter) period. For details, please refer to our news release "Notice of Dividend (end of 2nd quarter), Change in Dividend Policy, and Dividend (year-end) Forecast Modifications" announced on November 4, 2025.

3. Targeted Management Index

In the entertainment industry, Nintendo works to constantly provide new and entertaining products and services, aiming to improve its corporate value by sustaining robust growth and increasing profit. Because entertainment products naturally hold many uncertainties in terms of research and development, we have not set any specific management index targets. This allows our corporate decision-making to stay flexible in this highly competitive industry.