Nintendo 2009 Annual Report Download

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ANNUAL REPORT 2009

Table of contents

  • Page 1
    A N N U A L R E PO RT 2 0 0 9

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    TM and ® are trademarks of Nintendo. Trademarks registered in Japan or other countries. © 2009 Nintendo.

  • Page 11
    ...-Ma , the online video streaming service that launched as one of the Wii Channels in Japan in May 2009, that changes the relation between the family, television and Internet. Moving forward, Nintendo will continue to pursue the wonderful opportunities of video game entertainment that bring smiles to...

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    ... 11.47 Sold ©2006-2007 Nintendo. million pcs. 3.58 Sold million pcs. ©2008 Nintendo/HAL Laboratory, Inc. Characters:© Nintendo/HAL Laboratory, Inc./Pokémon. /Creatures Inc./GAME FREAK inc./SHIGESATO ITOI /APE inc./INTELLIGENT SYSTEMS / Konami Digital Entertainment Co., Ltd./SEGA Titles and...

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    Nintendo DS Hardware: Worldwide Consolidated Sales Units in Millions 35 250 Software: Worldwide Consolidated Sales Units in Millions 30.31 30 31.18 200 197.31 185.62 25 23.56 150 20 123.55 15 100 11.46 10 49.95 50 5.27 5 10.49 0 0 FY3/05 FY3/06 FY3/07 FY3/08 FY3/09 FY3/...

  • Page 16
    ...producing plastic playing cards in Japan. 1959 Started selling cards printed with Walt Disney characters, opening a new market for children's playing cards in Japan. 1962 Listed stock on the second section of the Osaka Securities Exchange and on the Kyoto Stock Exchange. 1963 Changed company name to...

  • Page 17
    ... the New York subsidiary into it. 1983 Started selling the home video game console Family Computer System employing a custom CPU (Central Processing Unit) and PPU (Picture Processing Unit). Listed stock on the first section of the Tokyo Stock Exchange. 1985 Released the Nintendo Entertainment System...

  • Page 18
    ... screen, rechargeable Lithium-Ion battery, and compact folding design. Began Nintendo's online membership service, Club Nintendo, in Japan. 2004 Nintendo DS, the hand-held gaming device that opens up a new style of entertainment with its dual screens, touch control, wireless communication, and voice...

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    ... / Stock Price Information Analysis of Operations and Financial Review Report of Independent Auditors Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Changes in Net Assets Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements 17...

  • Page 21
    ... The preceding table sets forth the highest and lowest sale prices during the years ended March 31, 2009 and 2008 for Nintendo Co., Ltd. common stock, as reported on the Osaka Securities Exchange, Section 1. Nintendo Co., Ltd. common stock is also traded on the Tokyo Stock Exchange, Section 1. 17

  • Page 22
    ... fastest home video game hardware in history to reach 50 million unit sales. Regarding Wii software, Mario Kart Wii, which allows players to feel as if they were actually driving by using the Wii Wheel, sold 15.4 million units. Animal Crossing: City Folk, which allows players to play and chat with...

  • Page 23
    ... emergence of new competitors resulting from technological innovation could have a detrimental impact as well. In the video game industry, it may become even more difficult to be profitable due to large investments required in research, development and marketing. In addition, price competition may...

  • Page 24
    Analysis of Operations and Financial Review •Overseas business expansion and international activities In addition to Japan, Nintendo engages in business in the Americas, Europe, Australia, Asia and other areas throughout the world. Expansion of business to these overseas markets involves risks ...

  • Page 25
    ... readers, have been translated on the basis set forth in Note 1 to the accompanying consolidated financial statements. Kyoto Audit Corporation Kyoto, Japan June 26, 2009 Report of Independent Auditors To the Board of Directors and Shareholders of Nintendo Co., Ltd. We have audited the accompanying...

  • Page 26
    ... Sheets Japanese Yen in Millions ¥ $ U.S. Dollars in Thousands (Note 1) As of March 31, 2009 2008 2009 Assets Current assets Cash and deposits Notes and accounts receivable-trade Short-term investment securities Inventories Finished goods Work in process Raw materials and supplies Deferred...

  • Page 27
    ... Retained earnings Treasury stock Total shareholders' equity Valuation and translation adjustments Valuation difference on available-for-sale securities Foreign currency translation adjustment Total valuation and translation adjustments Minority interests Total net assets Total liabilities and...

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    Consolidated Statements of Income Japanese Yen in Millions ¥ $ U.S. Dollars in Thousands (Note 1) Years ended March 31, 2009 2008 2009 Net sales Cost of sales (Notes 6 A, B) Gross profit Selling, general and administrative expenses Advertising expenses Salaries, allowances and bonuses ...

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    Consolidated Statements of Changes in Net Assets Japanese Yen in Millions ¥ Years ended March 31, 2009 and 2008 Capital stock Capital surplus Retained earnings Treasury stock Total Valuation difference Foreign currency shareholders' on available-for-sale translation equity securities ...

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    ...for retirement benefits Interest and dividends income Interest expenses Foreign exchange losses (gains) Loss (gain) on sales of investment securities Loss (gain) on valuation of investment securities Equity in (earnings) losses of affiliates Decrease (increase) in notes and accounts receivable-trade...

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    ... that the Japanese yen amounts actually represent, have been or could be converted into U.S. dollars at this or any other rate of exchange. The accompanying consolidated financial statements are not intended to present the consolidated financial position, results of operations and cash flows in...

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    ... cost. Other investment securities for which market quotations are unavailable are stated at cost, determined by the moving average method. Derivatives Derivatives are stated at fair value. C. Inventories Finished goods, work in process and raw materials and supplies are mainly measured by means...

  • Page 33
    ...and Cash Equivalents in Consolidated Statements of Cash Flows "Cash and cash equivalents" include cash on hand, time deposit which can be withdrawn on demand and certain investments, with little risk of fluctuation in value and maturity date of three months or less, which are promptly convertible to...

  • Page 34
    ... be classified as "Short-term investment securities," which was previously included in "Cash and deposits," based on amendments in "The Practical Standard for the Accounting related to Financial Products (The Japanese Institute of Certified Public Accountants Accounting Practice Committee Report No...

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    .... The market value of the associated collateral in the form of securities was ¥17,739 million as of March 31, 2008. Note 6. Note to Consolidated Statements of Income A. Valuation Losses on Goods Losses incurred from the application of the write-down of inventories due to decreased profitability of...

  • Page 36
    ... 3, 2007 Type of share Amount of dividends (U.S. Dollars in Thousands) Dividend per share (U.S. Dollars) Record date Effective date Annual general shareholders' meeting held on June 27, 2008 Board of directors' meeting held on October 30, 2008 Common stock Common stock $1,461,595 $861...

  • Page 37
    ...Note 8. Note to Consolidated Statements of Cash Flows "Cash and cash equivalents at end of year" were reconciled to "Cash and deposits" in the accompanying consolidated balance sheets as of March 31, 2009 and 2008 as follows: Japanese Yen in Millions ¥ $ U.S. Dollars in Thousands As of March 31...

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    Notes to Consolidated Financial Statements Years ended March 31, 2009 and 2008 Note 9. Leases The Company and certain consolidated subsidiaries lease tools, furniture and fixtures and other noncurrent assets. Information of finance leases as of March 31, 2009 was omitted as it is immaterial. Pro ...

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    ...Short-term Investment Securities and Investment Securities Other investment securities with market value included in "Investment securities" as of March 31, 2009 and 2008 were as follows: Japanese Yen in Millions ¥ $ U.S. Dollars in Thousands Difference Acquisition cost Book value Difference As...

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    Notes to Consolidated Financial Statements Years ended March 31, 2009 and 2008 Proceeds from sales of other investment securities were ¥250 million ($2,559 thousand) and ¥58 million for the years ended March 31, 2009 and 2008, respectively. Gross realized gains on those sales were ¥82 million ($...

  • Page 41
    ... deposits, and not for speculative purposes. The Company has foreign exchange forward contracts to reduce risk of exchange rate fluctuations and currency option contracts to reduce risk of exchange rate fluctuations and yield improvement of short-term financial assets. Foreign exchange forward...

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    ... as well as defined benefit plans. The Company and certain consolidated subsidiaries may also pay extra retirement allowance to employees. Retirement benefit obligations as of March 31, 2009 and 2008 were as follows: Japanese Yen in Millions ¥ $ U.S. Dollars in Thousands As of March 31, 2009...

  • Page 43
    ... for retirement benefits Land Accumulated depreciation expenses Other Gross deferred tax assets Valuation allowance Total deferred tax assets Deferred tax liabilities: Undistributed retained earnings of subsidiaries and affiliates Valuation difference on available-for-sale securities Other Total...

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    ... Information by geographic division of the companies Japanese Yen in Millions ¥ Year ended March 31, 2009 Japan The Americas Europe Other Total Eliminations or corporate Consolidated Net sales and operating income Net sales Sales to third parties Inter-segment sales Total net sales...

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    $ U.S. Dollars in Thousands Year ended March 31, 2009 Japan The Americas Europe Other Total Eliminations or corporate Consolidated Net sales and operating income Net sales Sales to third parties Inter-segment sales Total net sales Operating expenses Operating income Total assets [Note1] ...

  • Page 46
    ...and upon consideration of the market prices. Trademarks and publications of "Shigureden" are used in the Company's software for sales and the fees for the usage are determined by terms generally available. Note 16. Per Share Information Japanese Yen ¥ $ U.S. Dollars Years ended March 31, 2009...

  • Page 47
    ... due after one year Other liabilities with interest Total [Note] ¥9 15 ¥24 - $91 156 $248 The average interest rates of lease obligations are omitted as the interests equivalent included in total lease payments are allocated to each consolidated fiscal year by straight-line basis. The due...

  • Page 48
    ... of the European Communities announced to impose a fine of EUR149 million on October 30, 2002 referring that Nintendo's past trade practices in Europe until 1998 fell upon "limitation of competition within the EU common market" which is prohibited by Article 81 in the EU treaty. The Company and its...

  • Page 49
    ... Kyoto, Japan Investor Information Investors Relations Securities analysts, institutional investors, and other members of the financial community requesting information about Nintendo Co., Ltd. should contact: Corporate Communications Nintendo Co., Ltd. Corporate Communication Department...

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    N e w S u p e r M a r i o B r o s . W i i c o m i n g n ex t

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