Financial Results Briefing business situation, as well as the - PDF document

Financial Results Briefing for Fiscal Year Ended March 2019 Thank you for making time to attend. I am Shuntaro Furukawa, President of Nintendo. Mr. Takahashi, Senior Fiscal Year Ended March 2019 Executive Officer, has just presented our financial results for the period. Now, I will cover the current Financial Results Briefing business situation, as well as the business outlook for April 26, 2019 the new fiscal year. Nintendo Co., Ltd. Director and President Shuntaro Furukawa I’ll start with the current state of the Nintendo Switch business. Nintendo Switch has continued to gain momentum after January subsequent to the holiday Current State of the season. Business is going well, and we expect continued Nintendo Switch Business growth. Let me discuss these points in order. As mentioned at the February corporate management Nintendo Switch Console Sell-Through (JP/NA/EU) policy briefing, sales of the Nintendo Switch system 8 FY Ended March 2019 7 FY Ended March 2018 were strong during the holiday season, and sell-through 6 5 +35% has continued to be solid through the start of this year. 4 3 This slide shows combined sell-through for the 2 1 Japanese, North American, and European markets. As 0 April July October January Source: Nintendo , Media Create (million through through through through you can see, sell-through from January to March was units) June September December March 35% higher than the same period of the previous year. Note: Sell-through refers to units sold by retailers to consumers. 1

Financial Results Briefing for Fiscal Year Ended March 2019 This graph shows cumulative sell-through trends Nintendo Switch Console Sell-Through (JP/NA/EU) throughout the full fiscal year combined for Japan, North 16 FY Ended March 2019 + 23 % 14 America, and Europe. The fiscal year ended March 2018 12 10 showed explosive sales for a first year of hardware FY Ended March 2018 8 6 sales. The fiscal year ended March 2019 kept up that 4 same pace until the beginning of autumn, before rising 2 0 Source: Nintendo , Media Create (million Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar even more sharply in November. As a result, we saw a units) full-year increase of 23% over the previous fiscal year. And since the start of the third year of Nintendo Switch this March, the momentum of the business is still increasing. This graph shows changes in cumulative sell-through in Nintendo Switch Console Sales Pace (JP) the Japanese market following the launch of Nintendo 16 Nintendo DS 14 Switch. The total hardware sell-through for Nintendo 12 Nintendo 3DS 10 Nintendo Switch platforms from Nintendo DS onward is superimposed on 8 Wii 6 the graph for comparison. Note that the quantity and 4 Wii U timing of holiday seasons that see large sales increases 2 0 One year after Two year after Source: Nintendo , Media Create (million launch launch will differ according to the different launch dates. Within units) Japan, Nintendo Switch is not reaching the pace of expansion set by Nintendo DS and Nintendo 3DS, but has outpaced Wii. Note: Japanese Launch Dates - Nintendo DS: December 2, 2004/Wii: December 2, 2006/Nintendo 3DS: February 26, 2011/Wii U: December 8, 2012/Nintendo Switch: March 3, 2017 Let’s turn now to the North American market. The red Nintendo Switch Console Sales Pace (NA) line representing Nintendo Switch jumps significantly Wii 20 twice, once at each holiday season. During the second 15 Nintendo Switch holiday season for Nintendo Switch, it approached the Nintendo DS 10 Nintendo 3DS momentum shown by Wii. 5 Wii U 0 One year after Two year after (million launch launch units) Source: Nintendo Note: North American Launch Dates - Nintendo DS: November 21, 2004/Wii: November 19, 2006/Nintendo 3DS: March 27, 2011/Wii U: November 18, 2012/Nintendo Switch: March 3, 2017 2

Financial Results Briefing for Fiscal Year Ended March 2019 These are the figures for the European market. Since its Nintendo Switch Console Sales Pace (EU) second holiday season, Nintendo Switch has surpassed 16 Wii 14 the pace set by Nintendo 3DS. Nintendo DS 12 10 Nintendo Switch Nintendo 3DS 8 Note: European Launch Dates - Nintendo DS: March 11, 6 4 Wii U 2005/Wii: December 8, 2006/Nintendo 3DS: March 25, 2 0 One year after Two year after (million launch launch 2011/Wii U: November 30, 2012/Nintendo Switch: units) Source: Nintendo March 3, 2017 And the total numbers combined for the three regions I Nintendo Switch Console Sales Pace (JP/NA/EU Totals) just explained look like this. Although there are Wii 40 Nintendo DS variances from region to region, Nintendo Switch is Nintendo Switch 30 Nintendo 3DS spreading at a pace comparable to that of our previous 20 hardware. 10 Wii U 0 One year after Two year after (million launch launch units) Source: Nintendo , Media Create After the start of the calendar year, the title driving the Title(s) Played On First Day Of Console Usage (JP/NA/EU, Jan-Mar) most hardware sales is Super Smash Bros. Ultimate . 26% Super Smash Bros. Ultimate This is a list of titles played by consumers on their first 16% Mario Kart 8 Deluxe Pokémon: Let's Go, Pikachu!/ 13% Let's Go, Eevee! day after purchasing Nintendo Switch, between January 11% The Legend of Zelda: Breath of the Wild and March 2019. As you can see, Super Smash Bros. 8% Super Mario Odyssey 6% Super Mario Party Ultimate was the title most commonly played by users 5% New Super Mario Bros. U Deluxe Percentage of titles played on the first day among consoles with a with new Nintendo Switch systems. registered Nintendo Account and connected to the network/ In cases where multiple titles were played, each counts as one/ Free to start titles are excluded/ Source: Nintendo Source: Nintendo When Super Smash Bros. Ultimate was first released, it was played by people within a wide age range, and particularly by men in their 20s to early 30s. As time has passed, however, the range of consumers playing this game has widened even further. Our data shows that the range of consumers showing interest in this game is also increasing, which means the title draws such a broad range of people. 3

Financial Results Briefing for Fiscal Year Ended March 2019 To sum up the sales status for Nintendo Switch itself, growth in hardware sales after the turn of the year has not peaked, but rather continues to pick up speed. Nintendo Switch Continued Gaining Momentum After Start of New Year Sell-through of first-party Nintendo Switch titles has Nintendo Switch First-Party Software Sell-Through (JP/NA/EU) remained good, with both new and previously-released 30 FY Ended March 2019 FY Ended March 25 2018 titles performing well even after January subsequent to 20 +50% the holiday season, and ultimately exceeding last year ’ s 15 10 Q4 growth by 50%. 5 0 April July October January (million through through through through Includes console bundles and digital sales / Source: Nintendo , Media Create units) June September December March This graph shows the trend in cumulative sell-through Nintendo Switch First-Party Software Sell-Through (JP/NA/EU) over one year. The pace throughout the fiscal year 60 FY Ended March 2019 50 + 70 % ended March 2019 was better than the previous year, 40 and it accelerated considerably during the holiday 30 FY Ended March 2018 season. Full-year sell-through was up 70% over the 20 10 previous year. 0 (million Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar units) Includes console bundles and digital sales / Source: Nintendo , Media Create 4