Consolidated Results for the Nine Months Ended December 2006 and 2007

Nintendo Co., Ltd. reported significant financial growth for the nine-month period ending December 31, 2007, driven by the strong global performance of its electronic entertainment hardware and software. Net sales reached 1,316.4 billion yen, representing an 84.7% increase over the same period in the previous year. Operating income surged by 135.1% to 394 billion yen, while net income rose by 96.3% to 258.9 billion yen. This robust performance was underpinned by the continued success of the Nintendo DS handheld system, which achieved 24.5 million units in sales during the period, and the Wii console, which reached 14.29 million units sold within the same timeframe.

The company’s financial position strengthened throughout 2007, with total assets rising to 1,849.1 billion yen by the end of December. Cash and cash equivalents increased to 1,026.3 billion yen, supported by strong operating cash flows and proceeds from the sale of securities. The company maintained a capital adequacy ratio of 68.1%. These results reflect a period of high consumer demand for key software titles, including Wii Fit, Super Mario Galaxy, and various Pokémon entries, which bolstered both hardware and software sales across major international markets.

Looking ahead, the company revised its consolidated financial forecast for the fiscal year ending March 31, 2008, projecting net sales of 1,630 billion yen and an operating income of 460 billion yen. These projections are based on management’s current assumptions regarding market conditions and exchange rates, specifically targeting 110 yen per U.S. dollar and 155 yen per euro. The company continues to focus on its core electronic entertainment segment, with no significant changes to its subsidiary structure or accounting procedures that would materially impact these financial outcomes.