Financial Results Explanatory Material: 3rd Quarter of Fiscal Year Ending March 2025

Nintendo Co., Ltd. – FY 2025 Q1‑Q3 Financial Results (Explanatory Material) Prepared 4 Feb 2025 – covering the period 1 Apr 2024 – 31 Dec 2024 (FY 25 Q1‑Q3)

1. Core Financial Highlights (FY 24 Q1‑Q3 vs. FY 25 Q1‑Q3)

| Metric | FY 24 Q1‑Q3 | FY 25 Q1‑Q3 | YoY Δ | |--------|------------|------------|-------| | Net sales | ¥1,394.7 bn | ¥956.2 bn | ‑31.4 % | | Operating profit | ¥464.4 bn | ¥247.5 bn | ‑46.7 % | | Operating profit margin | 33.3 % | 25.9 % | ‑7.4 pts | | Ordinary profit | ¥567.3 bn | ¥327.1 bn | ‑42.3 % | | Net profit (profit attributable to owners) | ¥408.0 bn | ¥237.1 bn | ‑41.9 % | | Net profit margin | 29.3 % | 24.8 % | ‑4.5 pts |

The decline is driven primarily by weaker hardware and software sales, a shift toward a higher share of “Other” (merchandise) revenue, and a less favorable foreign‑exchange environment.

2. Revenue Mix

| Category (FY 24 Q1‑Q3) | FY 25 Q1‑Q3 | YoY Δ | |------------------------|------------|-------| | Dedicated video‑game platform (hardware + software + accessories) | ¥895.5 bn | ‑31.7 % | | – Hardware | ¥895.5 bn × 46.1 % ≈ ¥413 bn | ‑30.6 % (units) | | – Software (first‑party) | ¥895.5 bn × 73.4 % ≈ ¥658 bn | ‑9.1 pts in share | | Mobile / IP‑related income | ¥49.7 bn | ‑33.9 % | | Other (merchandise, official stores, playing cards) | ¥10.9 bn | +27.6 % | | Proportion of sales outside Japan | 76.5 % (FY 25) | up from 71.5 % (FY 24) |

Digital sales grew as a share of software revenue (48.1 % → 51.0 %). The average USD/JPY exchange rate rose from ¥143.22 to ¥152.45, adding ¥9.23 per dollar to the yen‑denominated results.

3. Cost Structure

| Item | FY 24 Q1‑Q3 | FY 25 Q1‑Q3 | YoY Δ | |------|------------|------------|-------| | SG&A expenses | ¥