Financial Results Briefing for the Six-Month Period Ended September 2014: Supplementary Information

This financial briefing outlines Nintendo’s consolidated performance for the six-month period ending September 30, 2014. The primary objective is to provide transparency regarding the company’s semi-annual earnings, operational shifts, and future product pipeline. During this period, the company reported net sales of 171.399 billion yen, a decrease from the 196.582 billion yen recorded in the same period of the previous fiscal year. Despite the decline in top-line revenue, the company achieved a significant improvement in gross profit, which rose to 81.092 billion yen, reflecting a gross profit ratio of 47.3% compared to 31.6% in the prior year.

Operational results indicate a narrowing of losses, with operating income nearly reaching break-even at -215 million yen, a substantial recovery from the -23.278 billion yen loss reported in the same period of 2013. This improvement was bolstered by a strong second quarter, where operating income reached 9.254 billion yen. Ordinary income for the six-month period was 22.196 billion yen, supported by non-operating income, including 15.587 billion yen in foreign exchange gains. Net income for the period reached 14.300 billion yen, representing a net income ratio of 8.3%.

The company’s performance was driven by key software titles, including Super Smash Bros. for Nintendo 3DS and Mario Kart 8, which achieved significant global unit sales. The briefing also details the company’s exposure to foreign currency fluctuations, noting that a large portion of net sales is generated in U.S. dollars and Euros. Looking forward, the company maintains an extensive release schedule for both Nintendo 3DS and Wii U platforms, with a strategic focus on upcoming software launches and the introduction of the amiibo product line to drive engagement across global markets.