NUM FOR BER TWENTY-FIVE ONE YEARS ANNUAL REPORT 2009
‘92
‘85 ‘92
‘9
‘88 ‘85 ‘86 ‘86 ‘85 ‘85 ‘ ‘96 ‘92 ‘92 ‘88 ‘92 ‘92 ‘92 ‘96
Keeping thethe classics alive... s Keeping Keeping the classics classics alive al ‘85
‘88 ‘88 ‘88 ‘88 ‘85 ‘86 ‘85 ‘88 ‘85 ‘86 ‘85 ‘86 ‘85 ‘86 ‘86 ‘86 ‘88
ce 1985 e... since since 19851985 ‘85 ‘o4
‘85 ‘86 ‘86 ‘o4 ‘o4 ‘88 ‘o4 ‘o4 ‘88 ‘o4
‘96 ‘96 ‘85 ‘86 ‘86 ‘o4‘88 ‘o4‘88 ‘o8 ‘o8 ‘o8 ‘o8 ‘o8 1985 – 2009
‘o4 ‘92 ‘85 ‘o8
‘96 ‘o8
‘92 ‘o8
OF MARIO
‘o4 ‘92
‘92 ‘o8
1985 – 2009 EVOLUTION
‘96
OF MARIO
‘96
OF MARIO EVOLUTION 1985 – 2009
8‘86 96 ‘96 ‘88 ‘96
‘96 ‘92
EVOLUTION
‘96 ‘92
5 ‘o4
5 ‘o4
LETTER LETTER FROM FROM THETHE PRESIDENT PRESIDENT history in the ThroughoutThroughout Nintendo’s Nintendo’s history in the home video game entertainment arena, home video game entertainment arena, Nintendo created unique hardware Nintendo has createdhas unique hardware andassoftware as one integrated video and software one integrated video game entertainment product, with softgame entertainment product, with softbeing the primary driver. ware beingware the primary driver.
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Nintendo its basic strategy Nintendo has focusedhas its focused basic strategy on expanding the world wide gaming on expanding the world wide gaming audience. So to achieve this, Nintendo audience. So to achieve this, Nintendo is encouraging of the people is encouraging as many of as themany people as possible around the world, through as possible around the world, through its unique experience and truly enjoy its unique experience and truly enjoy video game entertainment, video game entertainment, regardless regardless of gender, their age, gender, cultural language, cultural of their age, language, backround or gaming backround or gaming experience.experience.
first launch hard ware in Wiichanging has beenachanging a lot in Nintendo’sNintendo’s first hard ware in launchlaunch, Wiilaunch, has been lot in support of the basic strategy “Gaming many different ways, such as the intro support of the basic strategy “Gaming many different ways, such as the intro was handheld Nintendo has been making PopulationPopulation Expansion”Expansion” was handheld Nintendo has been making efforts to efforts to device, Nintendo DS, which it allows high market penetration of the device. device, Nintendo DS, which it allows high market penetration of the device. users to play intuitively. Recent Touch! users to play intuitively. Recent Touch! Generations, which now expands the Nintendo took another step expanding Generations, which now expands the Nintendo took another step expanding definition of video and appeals the worldwide gaming population by definition of video games and games appeals the worldwide gaming population by not only to the traditional gamers but launchin an unprecedented video game not only to the traditional gamers but launchin an unprecedented video game
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GAMES VIDEOVIDEO GAMES DON’TDON’T JUSTJUST WORKWORK OUT YOUR THUMBS ANY MORE... OUT YOUR THUMBS ANY MORE...
alsoinexperienced to these inexperienced gamers. console Wii. Since its launch, also to these gamers. console called Wii. called Since its launch, In near future, Nintendo has plans Wii has been changing the definition In near future, Nintendo has plans Wii has been changing the definition leverage variousvarious leverage various ofvideo the home game console to leveragetovarious leverage of the home gamevideo console of theDS Nintendo DS system such significantly. Sohas Nintendo uses of the uses Nintendo system such significantly. So Nintendo been has been as playing in public places, and to making efforts to promote Wii by as playing in public places, and to making efforts to promote Wii by take advantage the high market take advantage of the highofmarket developingdeveloping compellingcompelling software. software. penetration of the device. penetration of the device. Satoru Iwata Satoru Iwata President President Nintendo took another step expanding Nintendo took another step expanding Nintendo the world wide gaming population by Co.Nintendo Co. the world wide gaming population by launching unprecedented launching unprecedented video gamevideo game console called the its Wii.first Since its first console called the Wii. Since
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WII LOVE WII LOVE DYNAMIC DYNAMIC DESIGN DESIGN
Throughout Nintendo’s Nintendo’s history in the history in the The W ii is a great The Waddition ii is a greatThroughout addition to any household. to any household. video gamevideo homegame entertainment home entertainment arena, arena,
Nintendo has Nintendo createdhas unique created hardware unique hardware and software andassoftware one integrated as one integrated video video entertainment entertainment product, with product, software with software being the primary being the driver. primary driver. Nintendo has Nintendo focusedhas its focused basic strategy its basic strategy on expanding on expanding the worldwide the worldwide gaming gaming audience. Toaudience. achieve this, To achieve Nintendo’s this, Nintendo’s encouraging encouraging as many people as many as they people as they possibly canpossibly all around can the all around world, in the world, in th ro u gh i tsthuro n i uqu ghe ietsxpe u nrii qu e necee xpe w i l l ribe e n ce w i l l b e truly enjoy truly videoenjoy gamevideo entertainment, game entertainment, regardless regardless of their age, of gender, their age, even gender, even language, cultural language, backround cultural backround or actual or actual hours in gaming hours experience. in gaming experience.
a basic remote a basic remote b steering wheel b steering wheel c maracas
c maracas
d musical instruments d musical instruments
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light saberf
f
light saber
g nunchuks g nunchuks
e
h sword & shield h sword & shield
d
hg
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f e
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7
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ExERCISE YOUR MIND & HAVE FUN! Now playing can be learning.
Throughout Nintendo’s history in the video game home entertainment arena, Nintendo has created unique hardware and software as one integrated video entertainment product, with software being the primary driver. Nintendo has focused its basic strategy on expanding the worldwide gaming audience. To achieve this, Nintendo’s encouraging as many people as they po ssi bl y can al l aro u n d th e w o rl d, i n through its unique experience will be truly enjoy video game entertainment, regardless of their age, gender, even language, cultural backround or actual hours in gaming experience.
{
INCORPORATING LEARNING WITH PLAYING makes studying fun.
}
11
Five-year/ Summary / Stock Prices Information Five-year Summary Stock Prices Information
15
15
of Operations Finical Review Analysis of Analysis Operations and Finical and Review
17
17
Report of Independent Report of Independent Auditors Auditors
19
19
Consolidated Balance Sheets Consolidated Balance Sheets
21
21
Consolidated Consolidated StatementsStatements of Income of Income
23
23
Consolidated in Net Assets Consolidated StatementsStatements of Changesofin Changes Net Assets
27
27
Consolidated of Cash Flows Consolidated StatementsStatements of Cash Flows
31
31
Notes to Consolidated Financial Statements Notes to Consolidated Financial Statements
33
33
CA$THETHE CA$ FINANCIAL HMOFINANCIAL HMO SECTION NEYSECTION NEY
Five-Year Five-Year Summary Summary Years ended March 31 March 31 Years ended For the period For the period Net sales Net sales OperatingOperating income income Net income Net income At the period-end At the period-end Total assets Total assets Property, Property, plant, andplant, equipment and equipment Net assetsNet assets Years ended March 31 March 31 Years ended Per share Per information share information Net income Net income Cash dividends Cash dividends
2008
2007 2008
2006 2007
2005 2006
2004 2005
2004
¥1,672,423 ¥1,672,423 ¥966,534
2008
2008
¥509,240 ¥966,534
¥515,292 ¥509,240
¥514,805 ¥515,292
¥514,805
487,220
226,024 487,220
90,349 226,024
111,522 90,349
107,683 111,522
107,683
¥16,724,230 ¥16,724,230 4,872,202
4,872,202
257,342
174,290 257,342
98,378 174,290
87,416 98,378
33,194 87,416
33,194
2,573,426
2,573,426
1,802,490
1,575,597 1,802,490
1,160,703 1,575,597
1,132,492 1,160,703
1,010,031 1,132,492
1,010,031
55,150
57,600 55,150
55,969 57,600
54,420 55,969
55,084 54,420
55,084
1,229,973
1,102,018 1,229,973
974,091 1,102,018
921,466 974,091
890,247 921,466
890,247
¥2,012.13
¥1,362.61 ¥2,012.13
¥762.28 ¥1,362.61
¥662.96 ¥762.28
¥246.93 ¥662.96
¥246.93
$20.12
$20.12
1,260
1,260 690
690 390
390 390
390 140
140
12.60
12.60
18,024,903 18,024,903 551,506
551,506
12,299,736 12,299,736
15
15
CUMULATIVE CUMULATIVE SALES UNITUNIT SALES Nintendo Nintendo
Video Game 2007-20082007-2008 Video Game Industry Growth Revenue Growth Industry Revenue ($3.35 billion) ($3.35 billion)
99% 99% ($3.31 billion)($3.31 billion)
Other
Other
1% 1% ($.035 billion)($.035 billion) DS
DS
Wii
Wii
PSP
PSP
PS3
PS3
PS2
PS2
Xbox
Xbox
8,000,000
8,000,000
6,000,000
6,000,000
4,000,000
4,000,000
2,000,000
2,000,000
0
0
worldwide worldwide Wii
Wii
DS
DS
Gamecube
Gamecube
Gameboy Advance Gameboy Advance
JAPAN Wii
JAPAN
Wii
DS
DS
Gamecube
Gamecube
Gameboy Advance Gameboy Advance
AMERICA AMERICA Wii
Wii
DS
DS
Gamecube
Gamecube
Gameboy Advance Gameboy Advance
OTHER Wii
OTHER
Wii
DS
DS
Gamecube
Gamecube
Gameboy Advance Gameboy Advance
17
17
CONSOLIDATED CONSOLIDATED BALANCE SHEETS BALANCE SHEETS As of MarchAs 31,of March 31,
2008
Assets Assets Current assets Current assets 짜899,251 Cash and deposits Cash and deposits 147,787 Notes and accounts receivable-trade Notes and accounts receivable-trade Short-term securities investment securities 353,070 Short-term investment 104,842 Inventories Inventories 38,032 Deferred taxDeferred assets tax assets 106,028 Other (NoteOther 5 C) (Note 5 C) Allowance doubtful accounts (2,176) Allowance for doubtfulfor accounts current assets Total currentTotal assets
2007
2008
2
짜899,251 짜962,197 147,787 89,666 353,070 115,971 104,842 88,609 38,032 35,631 106,028 104,483 (2,176) (1,886)
짜962,197 89,666 115,971 88,609 35,631 104,483 (1,886)
$8,992,510 1,477,873 3,530,700 1,048,423 380,323 1,060,280 (21,763)
$8,992, 1,477, 3,530, 1,048, 380, 1,060, (21,7
1,646,834 1,646,834 1,394,673 1,394,673 16,468,348 16,468,
assets Noncurrent Noncurrent assets 16,784 Buildings and structures Buildings and structures Machinery, and equipment Machinery, equipment vehiclesand vehicles 1,734 6,072 Tools, Tools, furniture andfurniture fixtures and fixtures 30,267 Land Land
17
20082007
16,784 18,022 1,734 1,134 6,072 5,629 30,267 32,595
18,022 1,134 5,629 32,595
167,846 17,346 60,722 302,670
167, 17, 60, 302,
2008
20082007
2007
292
292217
217
2,920
2,920
Totalplant property, plant and equipment Total property, and equipment 55,150
55,150 57,600
57,600
551,506
551,506
ConstructionConstruction in progress in progress
2008
2008
Intangible assets Intangible assets Software etc. Software etc. Software Software Other Other
– 542 1,467
–505 542 – 1,467 –
505 – –
– 5,420 14,678
– 5,420 14,678
Totalassets intangible assets Total intangible
2,009
2,009505
505
20,098
20,098
73,758 23,541 1,196 (0)
73,758 92,412 23,541 14,414 1,196 16,001 (0)(10)
92,412 14,414 16,001 (10)
737,562 235,418 11,969 (0)
737,562 235,418 11,969 (0)
Total investments and other assets 98,495 Total investments and other assets
98,495 122,818
122,818
984,950
984,950
and other assets InvestmentsInvestments and other assets Investment securities Investment securities (Note 5 B) (Note 5 B) Deferred taxDeferred assets tax assets Other Other Allowance doubtful accounts Allowance for doubtfulfor accounts
19
19
10F Kanayalal Building 8-4 4-Chome, Kumochi-cho, Chuo-ku Kobe 651-0056 Japan