Financial Results Briefing for Fiscal Year Ended March 2019

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Financial Results Briefing for Fiscal Year Ended March 2019 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 Nintendo Co., Ltd. the new fiscal year. 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. Nintendo Switch Console Sell-Through (JP/NA/EU) As mentioned at the February corporate management 8 FY Ended March 2019 policy briefing, sales of the Nintendo Switch system 7 FY Ended March 2018 6 were strong during the holiday season, and sell-through 5 4 +35% has continued to be solid through the start of this year. 3 2 This slide shows combined sell-through for the 1 Japanese, North American, and European markets. As 0 April July October January (million through through through through units) June September December March Source: Nintendo , Media Create you can see, sell-through from January to March was 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 Nintendo Switch Console Sell-Through (JP/NA/EU) This graph shows cumulative sell-through trends 16 throughout the full fiscal year combined for Japan, North 14 FY Ended March 2019 +23% 12 America, and Europe. The fiscal year ended March 2018 10 8 FY Ended March 2018 showed explosive sales for a first year of hardware 6 sales. The fiscal year ended March 2019 kept up that 4 2 same pace until the beginning of autumn, before rising 0 (million Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar units) Source: Nintendo , Media Create even more sharply in November. As a result, we saw a 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. Nintendo Switch Console Sales Pace (JP) This graph shows changes in cumulative sell-through in 16 Nintendo DS the Japanese market following the launch of Nintendo 14 12 Nintendo 3DS Switch. The total hardware sell-through for Nintendo 10 Nintendo Switch platforms from Nintendo DS onward is superimposed on 8 Wii 6 the graph for comparison. Note that the quantity and 4 2 Wii U timing of holiday seasons that see large sales increases 0 One year after Two year after (million launch launch units) Source: Nintendo , Media Create will differ according to the different launch dates. Within 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 Nintendo Switch Console Sales Pace (NA) Let’s turn now to the North American market. The red Wii line representing Nintendo Switch jumps significantly 20 twice, once at each holiday season. During the second 15 Nintendo Switch Nintendo DS holiday season for Nintendo Switch, it approached the 10 Nintendo 3DS momentum shown by Wii. 5 Wii U 0 (million One year after Two year after 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 Nintendo Switch Console Sales Pace (EU) These are the figures for the European market. Since its 16 Wii second holiday season, Nintendo Switch has surpassed 14 12 Nintendo DS the pace set by Nintendo 3DS. 10 Nintendo Switch 8 Nintendo 3DS 6 Note: European Launch Dates - Nintendo DS: March 11, 4 2 Wii U 2005/Wii: December 8, 2006/Nintendo 3DS: March 25, 0 (million One year after Two year after launch launch units) Source: Nintendo 2011/Wii U: November 30, 2012/Nintendo Switch: March 3, 2017 Nintendo Switch Console Sales Pace (JP/NA/EU Totals) And the total numbers combined for the three regions I Wii just explained look like this. Although there are 40 Nintendo DS Nintendo Switch variances from region to region, Nintendo Switch is 30 Nintendo 3DS spreading at a pace comparable to that of our previous 20 hardware. 10 Wii U 0 (million One year after Two year after launch launch units) Source: Nintendo , Media Create Includes Canada Title(s) Played On First Day Of Console Usage (JP/NA/EU, Jan-Mar) After the start of the calendar year, the title driving the most hardware sales is Super Smash Bros. Ultimate. Super Smash Bros. Ultimate 26% Mario Kart 8 Deluxe 16% This is a list of titles played by consumers on their first Pokémon: Let's Go, Pikachu!/ 13% Let's Go, Eevee! day after purchasing Nintendo Switch, between January The Legend of Zelda: Breath of the Wild 11% Super Mario Odyssey 8% and March 2019. As you can see, Super Smash Bros. Super Mario Party 6% Ultimate was the title most commonly played by users New Super Mario Bros. U Deluxe 5% Percentage of titles played on the first day among consoles with a 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 with new Nintendo Switch systems. 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 Nintendo Switch First-Party Software Sell-Through (JP/NA/EU) Sell-through of first-party Nintendo Switch titles has 30 FY Ended March 2019 remained good, with both new and previously-released FY Ended March 25 2018 titles performing well even after January subsequent to 20 15 +50% the holiday season, and ultimately exceeding last year’s 10 Q4 growth by 50%. 5 0 April July October January (million through through through through units) June September December March Includes console bundles and digital sales / Source: Nintendo , Media Create Nintendo Switch First-Party Software Sell-Through (JP/NA/EU) This graph shows the trend in cumulative sell-through 60 FY Ended March 2019 over one year. The pace throughout the fiscal year 50 +70% ended March 2019 was better than the previous year, 40 30 and it accelerated considerably during the holiday FY Ended March 2018 20 season. Full-year sell-through was up 70% over the 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 Financial Results Briefing for Fiscal Year Ended March 2019 New Super Mario Bros. U Deluxe sold over a million • Released in January 2019 copies within two weeks of its release in January 2019, • Became a million seller within and has continued to maintain a steady pace. As of the two weeks after release end of March, cumulative sell-through had passed 2.5 • Maintaining a steady pace, with sell-through of more million units globally. It has also helped drive hardware than 2.5 million units. (As of the end of March) sales since the start of the year, and we have confirmed Includes digital sales / Does not include sell-through in some regions, including Asia and Latin America. / Source: Nintendo , Media Create that it is contributing to active engagement with Nintendo Switch. Initial sales of Yoshi’s Crafted World, released at the • Released in March 2019 end of March, have like many of the other Nintendo • Outperformed past titles at Switch games released so far, outperformed that of past release titles in the series. In addition, the percentage of female • Relatively high percentage of female consumers in consumers is relatively high for this title compared to Japan and abroad other Nintendo Switch titles, both in Japan and overseas. Digital Sales Trends Digital sales have expanded greatly since the launch of 118.8 billion yen Nintendo Switch. This graph compares sales of digital 120 110 100 content within our dedicated video game platform 90 80 70 Launch business over the years. Sales nearly doubled in the 60 50 40 fiscal year ended March 2019 compared to the previous 30 20 10 fiscal year, and exceeded 100 billion yen for the first 0 (Billion FY Ended FY Ended FY Ended FY Ended FY Ended FY Ended FY Ended Yen) March 2013 March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 Source: Nintendo time ever.
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