Nintendo Co., Ltd.
CONSOLIDATED FINANCIAL STATEMENTS
May 6, 2021
Nintendo Co., Ltd. | ||||||||||||||||||
11-1Hokotate-cho, Kamitoba, | ||||||||||||||||||
Minami-ku, Kyoto 601-8501 | ||||||||||||||||||
Japan | ||||||||||||||||||
Consolidated Results for the Years Ended March 31, 2020 and 2021 | (Amounts below one million yen are rounded down) | |||||||||||||||||
(1) Consolidated operating results | ||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable | |||||||||||||||
to owners of parent | ||||||||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | |||||||||||
Year ended March 31, 2021 | 1,758,910 | 34.4 | 640,634 | 81.8 | 678,996 | 88.4 | 480,376 | 85.7 | ||||||||||
Year ended March 31, 2020 | 1,308,519 | 9.0 | 352,370 | 41.1 | 360,461 | 30.0 | 258,641 | 33.3 | ||||||||||
[Notes] | ||||||||||||||||||
Percentages for net sales, operating profit etc. show increase (decrease) from the last fiscal year. | ||||||||||||||||||
Comprehensive income: Year ended march 31, 2021: 527,951 million yen [123.2%] Year ended march 31, 2020: 236,490 million yen [18.0%] | ||||||||||||||||||
Profit per share | Diluted profit | Return on equity | Ordinary profit | Operating profit | ||||||||||||||
per share | on total assets | to net sales | ||||||||||||||||
yen | yen | % | % | % | ||||||||||||||
Year ended March 31, 2021 | 4,032.60 | - | 28.1 | 31.0 | 36.4 | |||||||||||||
Year ended March 31, 2020 | 2,171.20 | - | 17.5 | 19.9 | 26.9 | |||||||||||||
[Reference] | ||||||||||||||||||
Share of profit of entities accounted for using equity method: Year ended march 31, 2021: 6,564 million yen Year ended march 31, 2020: 7,945 million yen | ||||||||||||||||||
(2) Consolidated financial positions | ||||||||||||||||||
Total assets | Net assets | Capital adequacy ratio | Net assets per share | |||||||||||||||
million yen | million yen | % | yen | |||||||||||||||
As of March 31, 2021 | 2,446,918 | 1,874,614 | 76.6 | 15,734.79 | ||||||||||||||
As of March 31, 2020 | 1,934,087 | 1,540,900 | 79.7 | 12,933.51 | ||||||||||||||
[Reference] | ||||||||||||||||||
Shareholders equity: As of March 31, 2021: 1,874,371 million yen As of March 31, 2020: 1,540,687million yen | ||||||||||||||||||
(3) Consolidated cash flows | ||||||||||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |||||||||||||||
operating activities | investing activities | financing activities | equivalents - ending | |||||||||||||||
million yen | million yen | million yen | million yen | |||||||||||||||
Year ended March 31, 2021 | 612,106 | (136,533) | (194,938) | 932,079 | ||||||||||||||
Year ended March 31, 2020 | 347,753 | (188,433) | (111,031) | 621,402 | ||||||||||||||
Dividends | ||||||||||||||||||
Dividend per share | Dividends in total | Dividend payout ratio | Dividends on net assets | |||||||||||||||
End of 2nd quarter | Year-end | Annual | (annual) | (consolidated basis) | (consolidated basis) | |||||||||||||
yen | yen | yen | million yen | % | % | |||||||||||||
Year ended March 31, 2020 | 270.00 | 820.00 | 1,090.00 | 129,844 | 50.2 | 8.8 | ||||||||||||
Year ending March 31, 2021 | 810.00 | 1,410.00 | 2,220.00 | 264,453 | 55.1 | 15.5 | ||||||||||||
Year ending March 31, 2022 | -* | -* | 1,430.00 | 50.1 | ||||||||||||||
(forecast) | ||||||||||||||||||
[Note]
*Dividends are paid twice a year after the end of the second quarter and at the fiscal year-end based on profit levels achieved in each fiscal year as our basic policy. As for the dividend forecast for the fiscal year ending March 31, 2022, only the annual dividend is described because the financial forecast for the year is prepared only on a full fiscal year basis and the dividend cannot be separately forecasted between the interim and the fiscal year-end.
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Nintendo Co., Ltd. | ||||||||||||
Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2022 | ||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Profit per share | ||||||||
owners of parent | ||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | yen | ||||
Year ending March 31, 2022 | 1,600,000 | (9.0) | 500,000 | (22.0) | 480,000 | (29.3) | 340,000 | (29.2) | 2,854.20 | |||
[Notes] | ||||||||||||
Percentages for net sales, operating profit etc. show increase (decrease) from previous period. | ||||||||||||
With respect to the impact of COVID-19, please refer to "2. Outlook for the Fiscal Year Ending March 31, 2022" on page 4. | ||||||||||||
Others | ||||||||||||
(1) Changes for important subsidiaries during the fiscal year ended March 31, 2021 | : Not applicable | |||||||||||
(2) Changes in accounting procedures: | : Not applicable | |||||||||||
1) | Related to accounting standard revisions etc. | |||||||||||
2) | Other changes | : Not applicable | ||||||||||
3) | Changes in accounting estimates | : Not applicable | ||||||||||
4) | Modified restatements | : Not applicable |
- Outstanding shares (common shares)
- Number of shares outstanding (including treasury shares)
As of Mar. 31, 2021 : | 131,669,000 | shares | As of Mar. 31, 2020 : | 131,669,000 | shares | |
2) | Number of treasury shares | |||||
As of Mar. 31, 2021 : | 12,546,233 | shares | As of Mar. 31, 2020 : | 12,545,354 | shares | |
3) | Average number of shares | |||||
Year ended Mar. 31, 2021 : | 119,123,333 | shares | Year ended Mar. 31, 2020 : | 119,124,148 | shares |
(Reference) Non-consolidated Results
Non-consolidated Results for the Years Ended March 31, 2020 and 2021
(1) Non-consolidated operating results
Net sales | Operating profit | Ordinary profit | Profit | |||||
million yen | % | million yen | % | million yen | % | million yen | % | |
Year ended March 31, 2021 | 1,468,563 | 36.4 | 540,217 | 80.0 | 573,057 | 93.5 | 403,339 | 91.3 |
Year ended March 31, 2020 | 1,076,852 | 7.4 | 300,108 | 35.0 | 296,204 | 25.2 | 210,842 | 28.9 |
[Note] Percentages for net sales, operating profit etc. show increase (decrease) from the last fiscal year.
Profit per share | Diluted Profit per share | |||
yen | yen | |||
Year ended March 31, 2021 | 3,385.90 | - | ||
Year ended March 31, 2020 | 1,769.94 | - | ||
(2) Non-consolidated financial positions | ||||
Total assets | Net assets | Capital adequacy | Net assets per share | |
ratio | ||||
million yen | million yen | % | yen | |
As of March 31, 2021 | 1,765,683 | 1,281,948 | 72.6 | 10,761.57 |
As of March 31, 2020 | 1,367,766 | 1,051,147 | 76.9 | 8,824.00 |
[Reference] |
Shareholders equity: As of March 31, 2021: 1,281,948 million yen As of March 31, 2020: 1,051,147 million yen [Notes]
- This earnings release report is not subject to audit by certified public accountant or audit firm.
- Forecasts announced by the Company (Nintendo Co., Ltd.) referred to above were prepared based on management's assumptions with information available at this time and therefore involve known and unknown risks and uncertainties. Please note such risks and uncertainties may cause the actual results to be materially different from the forecasts (earnings forecast, dividend forecast, and other forecasts). For details, please refer to "2. Outlook for the Fiscal Year Ending March 31, 2022" on page 4.
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Nintendo Co., Ltd.
Description of Operating Results
1. Operating Results and Financial Positions for the Fiscal Year Ended March 31, 2021
(1) Operating Results and Financial State for the Fiscal Year Ended March 31, 2021
The results for this fiscal year (April 2020 through March 2021) showed strong software sales for Nintendo Switch, which contributed greatly to the growth of hardware sales. In particular, sales continued to grow for titles released in previous fiscal years, with units of Animal Crossing: New Horizons at 20.85 million (cumulative sales of 32.63 million units), Mario Kart 8 Deluxe at
- million (cumulative sales of 35.39 million units), and Ring Fit Adventure at 7.38 million (cumulative sales of 10.11 million units). Super Mario 3D All-Stars and Super Mario 3D World + Bowser's Fury, which were released this fiscal year as part of the Super Mario Bros. 35th Anniversary campaign, saw sales of 9.01 million units and 5.59 million units, respectively. In addition to Nintendo titles, sales of titles from other software publishers also continued to grow steadily, for a total of 36 million-seller titles for this fiscal year, including titles from these other software publishers.
As a result, hardware sales reached 28.83 million units (an increase of 37.1% year-on-year), and software sales reached 230.88 million units (an increase of 36.8% year-on-year).
Turning to our digital business for dedicated video game platforms, sales were strong for downloadable versions of packaged software for Nintendo Switch. Sales also grew for add-on content, including Pokémon Sword Expansion Pass, Pokémon Shield Expansion Pass, and Super Smash Bros. Ultimate Fighters Pass Vol. 2. In addition, sales of download-only titles and sales related to Nintendo Switch Online were also steady, helping to bring digital sales to 344.1 billion yen (an increase of 68.5% year-on-year).
For the mobile business, many consumers continue to enjoy playing our mobile applications, and our mobile and IP related income reached 57.0 billion yen (an increase of 11.3% year-on-year).
As a result, net sales reached 1,758.9 billion yen, with overseas sales of 1,361.4 billion yen accounting for 77.4% of the total. Operating profit came to 640.6 billion yen, ordinary profit was 678.9 billion yen, and profit attributable to owners of parent totaled
- billion yen for this fiscal year.
- Financial positions as of March 31, 2021
Total assets increased by 512.8 billion yen compared to the prior fiscal year-end to 2,446.9 billion yen mainly due to an increase in cash and deposits and securities. Total liabilities increased by 179.1 billion yen compared to the prior fiscal year-end to 572.3 billion yen mainly due to an increase in income taxes payable and notes and accounts payable-trade. Net assets increased by 333.7 billion yen compared to the prior fiscal year-end to 1,874.6 billion yen.
(3) Cash flows for the fiscal year ended March 31, 2021
The ending balance of "Cash and cash equivalents" (collectively, "Cash") as of March 31, 2021 was 932.0 billion yen, with an increase of 310.6 billion yen during the fiscal year. During the prior fiscal year, there was an increase of 36.0 billion yen. Net increase (decrease) of Cash and contributing factors during the fiscal year ended March 31, 2021 are as follows:
Net cash provided by (used in) operating activities:
There were decreasing factors contributing to 681.3 billion yen of profit before income taxes such as payment of income taxes. However, due to increasing factors such as an increase in trade payables, net cash resulted in an increase of 612.1 billion yen compared to an increase of 347.7 billion yen during the prior year.
Net cash provided by (used in) investing activities:
Net cash from investing activities decreased by 136.5 billion yen compared to a decrease of 188.4 billion yen during the prior year mainly due to proceeds from withdrawal of time deposits and sales and redemption of short-term and long-term investment securities being lower than payments into time deposits and purchase of short-term and long-term investment securities.
Net cash provided by (used in) financing activities:
Net cash from financing activities decreased by 194.9 billion yen compared to a decrease of 111.0 billion yen during the prior year mainly due to payments of cash dividends.
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Nintendo Co., Ltd.
2. Outlook for the Fiscal Year Ending March 31, 2022
For Nintendo Switch, our goal is to continue to convey the appeal of the hardware and software and maintain sales momentum at a high level. Regarding the hardware, we will release a new blue color Nintendo Switch Lite in May. First-party software titles planned for global release include Miitopia in May, Mario Golf: Super Rush in June, and The Legend of Zelda: Skyward Sword HD in July. In addition, the Pokémon series is receiving new additions with the planned release of Pokémon Brilliant Diamond and Pokémon Shining Pearl in late 2021. Other software publishers also plan to release a wide variety of titles, and we will work to invigorate the platform with this continuous stream of new titles combined with existing popular titles.
In our mobile business, we are collaborating with Niantic to develop a new application featuring Pikmin for smart devices. This title is expected to be released by Niantic in the second half of 2021. We will also focus on efforts that encourage consumers to continue to enjoy playing the mobile applications we have previously released.
Through these initiatives, we expect to see results for the fiscal year ending March 31, 2022 of 1,600.0 billion yen in net sales,
500.0 billion yen in operating profit, 480.0 billion yen in ordinary profit, and 340.0 billion yen in profit attributable to owners of the parent.
The unit sales for key products used in these forecasts can be found on page 14 under the heading "(4) Consolidated sales units, number of new titles, and sales units forecasts" in the section titled "Others." Assumed exchange rates for the major currencies are 105 yen per US dollar, and 120 yen per euro.
Regarding the risk associated with COVID-19, while the impact on business results for the fiscal year ended March 31, 2021 was limited, the supply of products might be affected if production and shipments are hindered. Other risk factors which are difficult to predict also continue to exist, involving areas such as development and marketing of products and services.
In addition, the production of products might be affected by obstacles to the procurement of parts, including the increase in global demand for semiconductor components. The consolidated earnings forecast is based on the premise that we will be able to secure the parts needed for the manufacture of products in line with our sales plans.
The Nintendo group will take the necessary measures and continue business operations to provide an environment in which consumers can continue to enjoy Nintendo products and services.
[Note] Forecasts announced by the Company referred to above were prepared based on management's assumptions with information available at this time and therefore involve known and unknown risks and uncertainties. Please note such risks and uncertainties may cause the actual results to be materially different from the forecasts (earnings forecast, dividend forecast and other forecasts).
3. Basic Policy of Profit Distribution and Dividends
It is the Company's basic policy to internally provide the capital necessary to fund future growth, including capital investments, and to maintain a strong and liquid financial position in preparation for changes in the business environment and intensified competition. As for direct profit returns to our shareholders, dividends are paid based on profit levels achieved in each fiscal period.
The annual dividend per share will be established at the higher of the amount calculated by dividing 33% of consolidated operating profit by the total number of outstanding shares, excluding treasury shares, as of the end of the fiscal year rounded up to the 10 yen digit, and the amount calculated based on the 50% consolidated profit standard rounded up to the 10 yen digit.
The end of 2nd quarter (interim) dividend per share is calculated by dividing 33% of consolidated operating profit by the total number of outstanding shares, excluding treasury shares, as of the end of the six-month period rounded up to the 10 yen digit.
The annual dividend per share for the fiscal year ended March 31, 2021 is expected to be 2,020 yen based on our basic dividend policy. However, after considering the consolidated financial results for this fiscal year, we have decided to add 200 yen per share to this amount, which will bring the annual dividend per share to 2,220 yen (interim: 810 yen, year-end: 1,410 yen). Dividend for the fiscal year ending March 31, 2022 will be 1,430 yen if earnings are in line with the financial forecast herein. The end of 2nd quarter dividends are yet to be determined as there are no interim financial forecasts, but there are no changes to our dividend policy.
Retained earnings are maintained for effective use in research of new technology and development of new products and services, capital investments and securing materials, enhancement of selling power including advertisements, strengthening of network infrastructure, and treasury share buyback whenever deemed appropriate.
Basic Policy on the Selection of Accounting Standards
In light of the comparability of consolidated financial statements over different fiscal years, Nintendo has a policy of preparing its consolidated financial statements in accordance with accounting principles generally accepted in Japan, which has been designed for convergence with International Financial Reporting Standards (IFRS), for the time being. Taking into account the possible adoption of IFRS in the future, Nintendo continues to collect information and conduct various studies, participating in seminars hosted by external organizations.
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Nintendo Co., Ltd. | |||
Consolidated Balance Sheets | |||
million yen | |||
Description | As of March 31, 2020 | As of March 31, 2021 | |
(Assets) | |||
Current assets | |||
Cash and deposits | 890,402 | 1,185,151 | |
Notes and accounts receivable-trade | 133,051 | 140,570 | |
Securities | 326,382 | 557,238 | |
Inventories | 88,994 | 86,817 | |
Other | 63,268 | 50,692 | |
Allowance for doubtful accounts | (515) | (94) | |
Total current assets | 1,501,583 | 2,020,375 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 38,149 | 42,230 | |
Tools, furniture and fixtures, net | 4,681 | 4,783 | |
Machinery, equipment and vehicles, net | 1,678 | 1,591 | |
Land | 37,685 | 34,785 | |
Construction in progress | 672 | 178 | |
Total property, plant and equipment | 82,866 | 83,569 | |
Intangible assets | |||
Software | 12,832 | 11,106 | |
Other | 2,185 | 3,815 | |
Total intangible assets | 15,017 | 14,922 | |
Investments and other assets | |||
Investment securities | 237,710 | 214,832 | |
Retirement benefit asset | 6,407 | 8,205 | |
Deferred tax assets | 72,199 | 82,819 | |
Other | 18,329 | 22,194 | |
Allowance for doubtful accounts | (27) | - | |
Total investments and other assets | 334,619 | 328,051 | |
Total non-current assets | 432,504 | 426,543 | |
Total assets | 1,934,087 | 2,446,918 |
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Nintendo Co. Ltd. published this content on 06 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2021 07:10:04 UTC.