consolidated financial statements - 任天 …. others (1) changes for important subsidiaries during...

CONSOLIDATED FINANCIAL STATEMENTSNintendo Co., Ltd. and Consolidated Subsidiaries

October 25, 2007Nintendo Co., Ltd. 11-1 Kamitoba hokotate-cho,Minami-ku, Kyoto 601-8501Japan

FINANCIAL HIGHLIGHTS

1. Consolidated Results for the Six Months Ended September 2006 and 2007, and Year Ended March 31, 2007(1) Consolidated operating results (Amounts below one million are rounded down)

Net sales Operating income Income before income taxes and extraordinary items Net income

million yen % million yen % million yen % million yen % Six months ended Sept. 30, '07Six months ended Sept. 30, '06

Year ended Mar. 31, '07

Net income per share Diluted income per share

yen yen Six months ended Sept. 30, '07Six months ended Sept. 30, '06


(2) Consolidated financial position

Total assets Net assets Capital adequacyratio

Net assets pershare

million yen million yen % yen As of Sept. 30, '07As of Sept. 30, '06As of Mar. 31, '07

(3) Consolidated cash flowsCash and cash

equivalents - endingmillion yen million yen million yen million yen

Six months ended Sept. 30, '07Six months ended Sept. 30, '06


2. Cash dividendsDividend per share

Interim Year-end Annualyen yen yen

Year ended Mar. 31, '07Year ending Mar. 31, '08Year ending Mar. 2008

(forecast)

3. Forecast for the fiscal year ending March 2008 (April 1, 2007 - March 31, 2008)

million yen % million yen % million yen % million yen % yen

Year ending Mar. 2008

- - -

1,090.00

690.00

950.00

620.00

(25,485)

1,152,250 69.4

275,000

7,733.31

(40,994) 580,835

140.0070.00

1,263,030

19,993

Cash flows fromoperating activities

60.4 85.8 59.3 1,550,000 420,000 460,000

25,848 106,995

(174,603)

132,421

174,290 - 54,345 48.4

143.7 215,376

288,839 - 94,676 66.6

127.5 188,784

226,024 - 67,111 242.2

181.3

1,035.36

1,362.61

298,817 69.4

424.86

694,803

966,534 -

132.5

78.3

746,557 (79,533)

8,614.97 69.9

688,737

1,659,239 9,008.34

1,575,597

Cash flows frominvesting activities

Cash flows fromfinancing activities

274,634 (50,137)

1,102,018 989,319

Net sales Operating income Income before income taxes and extraordinary items Net income Net income

per share

2,150.16 57.8

- 1 -

4. Others(1) Changes for important subsidiaries during the six months ended September 30, 2007

Not applicable

(2) Changes on the basis of consolidated financial statements preparation① Related to accounting standard revisions etc. Applicable② Other changes Not applicable[Note] Please refer to "Changes on the Basis of Consolidated Financial Statements Preparation" at page 13 for details.

(3) Outstanding shares (common shares)① Number of shares outstanding (including treasury stock) shares

As of Sept. 30, '07: As of Sept. 30, '06: As of Mar. 31, '07:② Number of treasury stock shares

As of Sept. 30, '07: As of Sept. 30, '06: As of Mar. 31, '07:③ Average number of shares shares

As of Sept. 30, '07: As of Sept. 30, '06: As of Mar. 31, '07:

(Reference) Non-consolidated results1. Non-consolidated results for the years ended September 2006 and 2007, and year ended March 31, 2007(1) Non-consolidated operating results

Net sales Operating income Income before income taxes and extraordinary items Net income

million yen % million yen % million yen % million yen % Six months ended Sept. 30, '07Six months ended Sept. 30, '06


Net income per shareyen

Six months ended Sept. 30, '07Six months ended Sept. 30, '06


(2) Non-consolidated financial position

Total assets Net assets Capital adequacyratio

Net assets pershare

million yen million yen % yen As of Sept. 30, '07As of Sept. 30, '06As of Mar. 31, '07

190.1 100.4 139.5 121.7 109,935

13,773,215

127,899,242

141,669,000

13,759,852

127,911,816

141,669,000

898,639 - 212,288 - - 50.7 37,897 (4.3)

142,743 -

141,669,000

13,765,987

127,908,919

69.7

1,115.98

634,996 166,987 186,257286,393 59.2 69,727 148.0 92,923

1,366,267 947,076 69.3 7,404.64 6,663.94

859.55

263,403

7,625.76 1,078,404 852,378 79.0

296.28

1,400,267 975,302

[Note]Consolidated results for the year ending March 31, 2008 is revised and forecast figures after revision are set forth above.

Please refer to "Notice of Financial Forecast Modifications" and "Notice of Dividend Forecast Modification" (both datedOctober 25, 2007) announced today for details.

Forecasts announced by the Company referred to above were prepared based on management's assumptions with informationavailable 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 (earningsforecast, dividend forecast, and other forecasts). With respect to the forecast, please refer to page 3 for the forward-looking conditions.

- 2 -

Nintendo Co., Ltd.

OPERATING RESULTS1. Analysis of Operations

(1) Six months ended September 30, 2007Throughout the six months ended September 30, 2007, the Japanese economy continued to show a pattern of recovery

while concerns still remain over crude oil price trends and the impact of a slowdown in the U.S. economy. Intensifiedcapital investments due to improvement in corporate earnings, as well as steady consumer spending led by improvements inemployment, helped to support the Japanese economy. Looking overseas, in the U.S., instability in the financial marketscould have a negative impact on its economy, despite making sustained and moderate improvements. The Europeaneconomy showed steady performance supported by capital investments and exports.

In the video game industry, market expansion which had been led by handheld gaming machines is now expected to beaccelerated by the new console gaming hardware.

Under such circumstances, Nintendo has continued to execute its strategy of expanding the gaming audience andtherefore, has introduced unique products. "Nintendo DS" has gained wide-spread popularity with its software lineupknown as "Touch! Generations" by which Nintendo has expanded the definition of video games. In addition, Nintendo’sgaming console, "Wii", has been attracting all the members of family and has impacted how families view entertainment inthe household.

Consolidated net sales for the half year ended September 30, 2007 resulted in 694.8 billion yen, including overseas salesof 541.0 billion yen, which accounted for 77.9% of total sales. Income before income taxes and extraordinary items was215.3 billion yen. Net income was 132.4 billion yen.

With respect to sales by business category within the electronic entertainment products division, "Nintendo DS" hascontinued to enjoy favorable sales worldwide, reaching a total of 13.35 million units in these six months. As for "NintendoDS" software, for instance, "Pokémon Diamond and Pearl" was released overseas after a launch in Japan last year and solda total of 6.95 million units worldwide (12.17 million units life-to-date). In addition, both "Brain Age: Train Your Brain inMinutes a Day!" and the sequel version (which was released overseas during the half year) performed well, reaching a totalof 5.19 million units (17.19 million units life-to-date). In addition, a number of long-term selling titles such as"Nintendogs" and "New Super Mario Bros." contributed to handheld software sales growth in the six months endedSeptember 30, 2007.

As for the console business, "Wii" hardware sold a total of 7.33 million units in the first six months of the 2008 fiscalyear. "Wii" software, such as "Mario Party 8", (which consists of more than 70 mini-games that allow the player to operate"Wii Remote" in its unique ways), sold a total of 2.89 million units. "Wii Sports" and "Wii Play", released in the last fiscalyear, have continued to enjoy favorable sales as well. As a result, net sales in the electronic entertainment products divisionwere 693.2 billion yen, while sales in the other products division (playing cards, karuta, etc.) were 1.5 billion yen.

With respect to results by geographic segment, sales in Japan were 635.0 billion yen including inter-segment sales of475.1 billion yen. Operating income was 167.1 billion yen. Sales in the Americas were 268.4 billion yen including inter-segment sales of 1.0 billion yen. Operating income was 14.8 billion yen. Sales in Europe were 246.0 billion yen. Operatingincome was 23.7 billion yen.

(2) Outlook for fiscal year ending March 31, 2008Nintendo will continue to pursue expansion of the gaming population and offer various entertainment options that take

root in our daily lives using the "Wii". Nintendo will aim to integrate health in entertainment with the launch of health-oriented software "Wii Fit" by using the "Balance Wii Board" which will enable you to measure your body balance andassist in your personal fitness while having fun at the same time. Nintendo's goal is to achieve higher internet connectionrates and commence "WiiWare" which is to be purchased and downloaded as software for "Wii" exclusive use, offeringvarious games rich in ideas. Moreover, Nintendo expects to satisfy both novice and skilled gamers alike by releasing"Super Mario Galaxy" and other software to be released such as "Super Smash Bros. Brawl".

Capitalizing on the widespread installed base of "Nintendo DS", Nintendo will continue to introduce multiple softwarelineups that will attract wide ranging user demographics.

With regard to consolidated performance forecasts for the fiscal year ending March 31, 2008, net sales are projected toreach 1,550 billion yen, operating income 420 billion yen, income before income taxes and extraordinary items 460 billionyen, net income 275 billion yen. Exchange rates used for the forecast are 115 yen per U.S. dollar and 160 yen per Euro.

- 3 -

Nintendo Co., Ltd.

2. Financial Positions

Cash flows from operating activities:

Cash flows from investing activities:

Cash flows from financing activities:

Cash flow index trend

% % % % %

[Notes] Capital adequacy ratio: Total owners' equity and valuation and translation adjustments divided by Total assets Capital adequacy ratio at market value: Total market value of stocks divided by Total assets *Percentage figures are calculated on a consolidated basis.

3. Basic Policy of Profit Distribution and Dividends

*Total market value of stocks is calculated by multiplying closing price and the number of shares outstanding (excluding treasury stock) at the end of the period.

As ofSeptember 30, 2007

Capital adequacy ratio at market value

Capital adequacy ratio 88.1

139.1

As ofMarch 31, 2004

As ofMarch 31, 2005

As ofMarch 31, 2006

As ofMarch 31, 2007

460.9

69.4

278.0

69.9

194.0

83.9

134.4

81.4

Total assets increased overall by 83.6 billion yen compared to the previous fiscal year-end to 1,659.2 billion yen, due to anincrease in trade accounts receivable accelerated by strong sales and inventories for this holiday season sales even thoughcash and deposits decreased due to payments of income taxes and dividends. Total liabilities increased by 33.4 billion yencompared to the previous fiscal year-end to 506.9 billion yen, mainly due to an increase in expenses related to the growth insales. Net assets increased by 50.2 billion yen compared to the previous fiscal year-end to 1,152.2 billion yen, resultingfrom the fact that net income ended in 132.4 billion yen while dividends for the previous fiscal year amounted to 79.2billion yen.

The ending balance of "Cash and cash equivalents" (collectively, Cash) as of September 30, 2007 increased by 57.8billion yen compared to the previous fiscal year-end to 746.5 billion yen. Net increase (decrease) of Cash and contributingfactors during the six months period ended September 30, 2007 are as follows.

Net cash from operating activities increased by 25.8 billion yen, primarily due to the fact that income before incometaxes and minority interests ended in 217.6 billion yen, whereas notes and trade accounts receivable and inventoriesshowed gains and income taxes amounted to 96.3 billion yen.

Net cash from investing activities increased by 106.9 billion yen mainly resulting from the decrease in time depositsexceeding the increase.

Net cash from financing activities decreased by 79.5 billion yen mainly due to payments for cash dividends.

It is the Company's basic policy to internally provide the capital necessary to fund future growth, including capitalinvestments, and to maintain a strong and liquid financial position in preparation for changes in the business environmentand intensified competition. As for direct profit returns to our shareholders, dividends are paid based on profit levelsachieved in each fiscal period.

The annual dividend per share will be established at the higher of the amount calculated by dividing 33% of consolidatedoperating income by the total number of outstanding shares, excluding treasury stock, as of the end of the fiscal yearrounded up to the 10 yen digit, and the amount calculated based on the 50% consolidated net income standard rounded upto the 10 yen digit.

The interim dividend for the six months ended September 30, 2007 has been established at 140 yen as set forth in theinitial announcement. Dividend for the fiscal year ending March 31, 2008 will be 1,090 yen (interim : 140 yen, year-end :950 yen) if earnings are in line with the financial forecast herein.

Retained earnings are maintained for effective use in research of new technology and development of new products,capital investments and securing materials, enhancement of selling power including advertisement, and common stockbuyback whenever deemed appropriate.

[Note] Forecasts announced by the Company referred to above were prepared based on management's assumptions withinformation available at this time and therefore involve known and unknown risks and uncertainties. Please note such risksand uncertainties may cause the actual results to be materially different from the forecasts (earnings forecast, dividendforecast, and other forecasts).

- 4 -

Nintendo Co., Ltd.

COMPANY GROUP INFORMATION

MANAGEMENT POLICY

(Nintendo homepage)http://www.nintendo.co.jp/ir/en/index.html

Among Nintendo Co., Ltd. ("the Company") and its related companies, which are composed of the Company, twenty-twosubsidiaries, and eight affiliates as of September 30, 2007, the main business is manufacturing and distribution of electronicentertainment products.

1.Basic Management Policy and 2.Target Management Index are omitted since nothing significant has changed from the

ones set forth in the financial statements announced on June 29, 2007. Please refer to the following URL for further

information.

This information is omitted since nothing significant has changed from the one set forth in the Annual Securities Reportfiled on June 29, 2007.

3.Medium and Long Term Management Strategy and Challenges

Nintendo established its basic strategy of expanding the gaming audience some years ago after identifying that the marketwas stagnating due to the "Gamer Drift" phenomenon. Nintendo believed that the road to a bright future in the gamingindustry would be achieved through expanding the size of the gaming population. To achieve this, Nintendo is offeringbrand new entertainment that takes root in our daily lives by expanding the definition of video games for all of ourcustomers, regardless of age, gender or gaming experience.

“Nintendo DS” has been positioned as "a machine that enriches the owner's daily life". Nintendo has positioned “Wii” as"a machine that puts smiles on surrounding people's faces", encouraging communication among family members as each ofthem find something personally relevant and motivated to turn on the power every day in order to enjoy "the new life with ’Wii’".

In the challenging and competitive gaming industry, which consistently requires new and innovative products, it isessential for our human resources to be even more flexible and positive. By capitalizing on being the only hardwareplatform producer with powerful in-house software development teams, Nintendo will strive to expand its business andincrease revenue and profit while adding new ideas to gaming and, as a result, continuing the pursuit of Nintendo ’ sobjective of expanding the gaming population.

- 5 -

Nintendo Co., Ltd.

CONSOLIDATED BALANCE SHEETS

Date

Description Amount % Amount % Amount %

(Assets) million yen million yen million yen

Ⅰ Current assets1 Cash and deposits

2 Notes and trade accounts receivable

3 Securities

4 Inventories

5 Deferred income taxes

6 Other current assets

7 Allowance for doubtful accounts

Total current assets

Ⅱ Fixed assets1 Property, plant, and equipment

(1) Buildings and structures

(2) Land

(3) OthersTotal property, plant, and equipment

2 Ｉntangible fixed assets

3 Investments and other assets

(1) Investments in securities

(2) Deferred income taxes

(3) Other investments and other assets

(4) Allowance for doubtful accountsTotal investments and other assets

Total fixed assets

Total assets

As of September 30, 2006

84,588

15,359

5,467

18,418

(2,022) 1,094,900 86.7

783,630

1,659,239 100.0 100.0 1,263,030

71,358

168,130

As of September 30,2007

13.3

56,549

11,132

111,060 (20)

519

57,154 58,270 28,634 97,873

962,197

92,412

6,981

1,394,673 (1,886)

57,600

18,433

115,757

93,434

174,170

3,900 (10)

912,668

89.5

152,494 122,444 135,485 45,520

119,013

1,485,069 (2,557)

11.5

100.0 1,575,597

122,818

32,663 31,520 32,595

505

10.5 180,924

As of March 31,2007

88.5

35,631 88,609

115,971

104,483

18,022

89,666

(10)

17,749

57,919 8,650

492

16,001 14,414

- 6 -

Nintendo Co., Ltd.

Date

Description Amount % Amount % Amount %million yen million yen million yen

Ⅰ Current liabilities1 Notes and trade accounts payable2 Accrued income taxes3 Reserve for bonuses4 Reserve for directors' bonuses5 Other current liabilities

Total current liabilities

Ⅱ Non-current liabilities1 Non-current accounts payable

2

Total non-current liabilities

Total liabilities

(Net assets)Ⅰ Owners' equity

1 Common stock2 Additional paid-in capital3 Retained earnings4 Treasury stock

Total owners' equityⅡ Valuation and translation adjustments

1 Unrealized gains on other securities

2 Translation adjustments

Ⅲ Minority interestsTotal net assetsTotal liabilities and net assets

5,971

1,102,018 121 0.0

1,152,250 69.4 138

0.7 15,331 12,794

10,065 11,586

1,220,293 (155,396)

1,273,414 (155,738)

1,575,597 1,659,239 100.0

1,086,549

8,898 6,432

1,139,335

6,822

1,263,030 100.0 78.3 0.0

989,319 157

130

Reserve for employees' retirement and severance benefits

273,711

268,722

4,989

863

4,125

(Liabilities)


As of September 30, 2006

0.3

501,649

836

154,285 46,089

0.4

1,555

66,660

4,502

21.3

376 -

30.6 506,988

468,436

698

5,338 5,142

30.3 75,563 101,676

1,651 90,013 92,255

305,690

473,578

As of March 31,2007

4,443

1,779

68.7

301,080

Total valuation and translation adjustments

9,910 3,513

13,423

10,065 11,585

1.0

1,109,301 (155,214)

77.3

29.8

0.3

30.1

100.0

69.0

0.9

0.0 69.9

21.7

975,737

10,065 11,593

- 7 -

Nintendo Co., Ltd.

CONSOLIDATED STATEMENTS OF INCOMEPeriod

Description

million yen ％ million yen ％ million yen ％

Ⅰ Net salesⅡ Cost of sales

Gross margin

Ⅲ

Operating income

Ⅳ Other income1 Interest income

2 Foreign exchange gains

3 Other

Ⅴ Other expenses1 Sales discount

2 Other

Ⅵ Extraordinary gains1

2

3 Gains on sales of fixed assets

4

Ⅶ Extraordinary losses1 Losses on disposal of fixed assets

2

Prior year income taxes

Income taxes deferred

Minority interests

Net income

％

Year endedMarch 31, 2007

Amount ％Ａｍｏｕｎｔ

694,803

％

100.0 298,817 100.0

Amount

54.5 162,974 135,842 45.5

13.4

188,784 27.2

59.4

40.6

413,048 281,754

92,969

510

27,259 3.9 20,891 2,149 4,218

666

3,885 0.5

156

215,376

3,885 -

31.3

0.2

217,639

14.0

132,421 19.1

(1.8) (0.0)

(12,103) (76)

-

1,623 16

1,606

97,398

22.5

0.1

15,443 10,057 2,456

393

31.7

253 0.1

72

94,676

54,345 18.2

(0.0) (1.6)

171,787

(4,647) (18)

94,929 31.8

42,588 14.3

1,482

100.0 568,722 58.8

397,812 41.2

966,534

6.6 33,987 25,741

17.8

23.4

63,830

226,024

0.1 919 95

288,839

2,379 0.3

-

30.0

252 891

126,764

720 384 335

18.0

(13,796) (37)

174,290

(1.4) (0.0)

13.1

289,601

1 0.0 1 -

2,661 0.9 -

Selling, general, and administrative expenses

Income before income taxes and extraordinary items

Reversal of allowance for doubtful accounts

Provision for income taxes and enterprise taxes

Six months endedSeptember 30, 2006


Income before income taxes and minority interests

Unrealized losses on investments in securities

Reversal of unrealized losses on investments in securities

Gains on sales of investments in securities

68,730

67,111

7

245

- -

321

27,958 9.3

23.0

-

-

4,101

1,015

338

31.0

0.1

29.9

0.2

0.1

- 8 -

Nintendo Co., Ltd.

CONSOLIDATED STATEMENT OF NET ASSETS

Six months period ended September 30, 2006 (April 1, 2006 - September 30, 2006)million yen

Owners' equity

Balance as of March 31, 2006Amount of changes in the six months period* Dividends from retained earnings* Directors' bonuses

Net incomePurchase of treasury stockDisposal of treasury stock

Total amount of changes in the six months period

Balance as of September 30, 2006

million yen

Balance as of March 31, 2006Amount of changes in the six months period* Dividends from retained earnings* Directors' bonuses



Balance as of September 30, 2006[Note] * Allocated at the annual general meeting of shareholders' held in June 2006.

(155,214)

(102) 0

-

(102)

-

- - - - 0

-

- - -

- -

0 11,585 10,065

Net amount of changes in the six months period other than owners' equity

Valuation and translation adjustments

Minority interests


-

-

-

-

-

176

(807)

- - - -

-

2,751

157

- - -

-

(18)

(18)

(102) 0

(185)

-

-

- -

13,227 13,125 975,737

-

- -

(40,932)

54,345

Treasury stock Totalowners' equity

1,096,073 (155,112) 962,611

Common stock Additionalpaid-in capital

Retainedearnings

10,065 11,585

9,910

Unrealized gainson

other securities

Translationadjustments

(807)

10,717 762

2,751 3,513

-

-

1,109,301

(40,932) (185)

54,345

- 9 -

Nintendo Co., Ltd.


Six months period ended September 30, 2007 (April 1, 2007 - September 30, 2007)million yen

Owners' equity

Balance as of March 31, 2007Amount of changes in the six months period

Dividends from retained earningsNet incomePurchase of treasury stockDisposal of treasury stock



million yen

Balance as of March 31, 2007Amount of changes in the six months period




1,139,335 (155,738)

(344) 2

(342)

- -

52,786

Unrealized gainson

other securities


8,898 6,432



Minority interests


- -

- 6 11,593

(2,075)

- - -

121

- - -

(17)

6,822 (2,075)

5,971

- - -

(461)

(461)

132,421 (344)

8

-

-

(17)

138

-

1,273,414


Retainedearnings

(79,299)

10,065 11,586


1,220,293

(79,299) -

(155,396) 1,086,549

-

6 - -

-

10,065

- -

- -

-

132,421

53,121

-

-

- 10 -

Nintendo Co., Ltd.


Year ended March 31, 2007 (April 1, 2006 - March 31, 2007)million yen

Owners' equity

Balance as of March 31, 2006Amount of changes in the fiscal year* Dividends from retained earnings

Dividends from retained earnings* Directors' bonuses


Total amount of changes in the fiscal yearBalance as of March 31, 2007

million yen

Balance as of March 31, 2006Amount of changes in the fiscal year* Dividends from retained earnings

Dividends from retained earnings* Directors' bonuses


Total amount of changes in the fiscal yearBalance as of March 31, 2007[Note] * Allocated at the annual general meeting of shareholders' held in June 2006.

124,219 1,220,293 10,065

8,898

Unrealized gainson

other securities


(1,819)

10,717 762

5,670


Retainedearnings

10,065 11,585


1,096,073 (155,112) 962,611

-

-

-

- - - -

-

-

- - -

(8,953) (40,932)

- (185) -

(40,932)

174,290 (284)

2

(185) (8,953)

6,432

-

- - -

-

5,670

138

-

- - -

-

(37)

-

(37)

(1,819)

- - -

Net amount of changes in the fiscal year other than owners' equity


Minority interests


- -

- 1 11,586

-

-

174,290

-

- -

176

1 - -

-

123,937 1,086,549 (155,396)

(284) 1

(283)

- -

- 11 -

Nintendo Co., Ltd.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Period

Description Amount Amount Amountmillion yen million yen million yen

Ⅰ Cash flows from operating activities: 　Income before income taxes and minority interestsDepreciation and amortizationIncrease (decrease) in allowance for doubtful accountsInterest and dividends income Interest expenses Foreign exchange losses (gains)

Decrease (increase) in notes and trade accounts receivable Decrease (increase) in inventories Increase (decrease) in notes and trade accounts payable Increase (decrease) in consumption taxes payable Other, net

Interest and dividends received Interest paid Income taxes paid

Net cash provided by (used in) operating activities

Ⅱ Cash flows from investing activities:Increase in time deposits Decrease in time deposits Payments for acquisition of securities Proceeds from sales and redemption of securities Payments for acquisition of property, plant and equipment Proceeds from sales of property, plant and equipment Payments for investments in securities Proceeds from sales and redemption of investments in securities Other, net

Net cash provided by (used in) investing activities

Ⅲ Cash flows from financing activities:Payments for acquisition of treasury stock Cash dividends paid Other, net

Net cash provided by (used in) financing activities Ⅳ

Ⅴ Net increase (decrease) of cash and cash equivalentsⅥ Cash and cash equivalents - BeginningⅦ Cash and cash equivalents - Ending 688,737

(50,137) 21,704 71,597

617,139

(282) (49,857)

2

(174,603)

(6,144) 372

(52,069) 6,173

651,372 (112,957) 117,001

(1,485)

274,634

(776,866)

338,037 32,921

(0) (96,324)

(54,669) 168,070

3,416 24,707

(798)

(42,687)

(34,510) 0

(21,375)

Year EndedMarch 31, 2007

289,601 5,968

313

617,139 (36,304)

580,835 746,557

57,820 688,737

4,509 (79,533)

(25,485)

(110) (344)

(40,994) 2

(267) 106,995

336 1,207

(14,327) -

(30,930) 4,888

(1,160) 7

(4,037)

(319,182) 328,775 (51,254)

(285,373)

19,993 25,848

472

(10,006) (1,051)

(15,707) 0 0

(21,122)

Effect of exchange rate changes on cash and cash equivalents

0 (40,884)

10,182

(2,424)

108,678

429,477 (133,855)

(1,279) 18,633

(4,136)

(96,379)

(62,915) (45,850)

(26,007) (26,334)



Sub-total20,561 15,012

72,904 101,667

Equity in losses (earnings) of non-consolidated subsidiary and affiliates

699

(1,292)

2,032 94,929

3,474 217,639

36,179 794

17,844

48,528

(67,924) (0) (0)

(79,190)

- 12 -

Nintendo Co., Ltd.

CHANGES ON THE BASIS OF CONSOLIDATED FINANCIAL STATEMENTS PREPARATION

(Changes in accounting policies)

(Depreciation procedure for important depreciable assets)

(Addtional information)

NOTES PERTAINING TO CONSOLIDATED FINANCIAL STATEMENTS

(Consolidated balance sheets information)million yen million yen million yen

As of September 30, 2006 As of September 30, 2007 As of March 31, 2007

(Consolidated statements of cash flows information)

Reconciliation between cash and cash equivalents - ending and the amount shown on consolidated balance sheets

million yen million yen million yenAs of September 30, 2006 As of September 30, 2007 As of March 31, 2007

Cash and deposits accountTime deposits (over 3 months)

Cash and cash equivalents - Ending

a. Notes pertaining to consolidated balance sheets, statements of income, statements of net assets, and statements of cash flows

Accumulated depreciation of property, plant, and equipment 40,642 46,201 43,265

580,835 746,557 688,737

962,197 912,668 783,630 (225,718) (225,308) (360,838)

Short-term investments due within 3 months after aquisition 22,923 59,198 87,378

Effective as of the consolidated accountingperiod ended September 30, 2007, the Company and its

domestic subsidiaries have changed their depreciation procedure based on an amendment in

corporation tax law (partial amendment in income tax law No. 6 dated March 30, 2007 and partial

amendment in income tax law enforcement order No. 83 dated March 30, 2007) for the tangible

assets acquired on and after April 1, 2007. The impact on operating income, income before income

taxes and extraordinary items, and income before income taxes and minority interests is minor.

As for tangible assets acquired on and before March 31, 2007, differences between 5% equivalent

of acquisitionprice and memorandumvalue are equally depreciated over 5 years from the year after

tangible assets are thoroughly depreciated to the limits of depreciable amount. The impact on

operating income, income before income taxes and extraordinary items, and income before income

taxes and minority interests is minor.

- 13 -

Nintendo Co., Ltd.

b. Segment Information

1. Segment Information by Business Categories

2. Segment Information by Seller's LocationSix months period ended September 30, 2006 million yen

Net sales(1)(2)

Total

Operating income

Six months period ended September 30, 2007 million yen

Net sales(1)(2)

Total

Operating income

Year ended March 31, 2007 million yen

Net sales(1)(2)

Total

Operating income

3. Overseas salesSix months ended September 30, 2006 million yen

The Americas Europe Other TotalⅠ Overseas sales ………………………………………………………Ⅱ Consolidated net sales ………………………………………………Ⅲ Ratio of overseas sales to consolidated net sales ……………………

Six months ended September 30, 2007 million yenThe Americas Europe Other Total

Ⅰ Overseas sales ………………………………………………………Ⅱ Consolidated net sales ………………………………………………Ⅲ Ratio of overseas sales to consolidated net sales ……………………

Year ended March 31, 2007 million yenThe Americas Europe Other Total

Ⅰ Overseas sales ………………………………………………………Ⅱ Consolidated net sales ………………………………………………Ⅲ Ratio of overseas sales to consolidated net sales ……………………

966,534 36.5% 27.5% 2.5% 66.5%

353,242 266,205 23,602 643,050

(552,418) 740,509 212,240 14,378 16,952 (98) 243,472 (17,448) 226,024

Operating expenses 686,529 340,345 249,219 898,770 354,723 266,171 16,735

966,534 Inter-segment sales 567,384 2,345 15 121 569,866 (569,866) - Sales to third parties 331,385 352,377 266,156

Inter-segment sales

3,046

14,861 167,177

59.4%

177,641 298,817

31.2% 26.1%

2.1%

93,150 78,051 6,439

-

188,784

Japan

161,919

0 119 694,803

TheAmericas Europe Other

77.9%

TotalEliminations

orcorporate

Consolidated

1,536,401 (569,866) 966,534

966,534 -

3.9%

541,012 694,803

27,016 267,893 246,101

207,683 963,475

1,917 23,727

38.6% 35.4%

16,614

16,833 1,292,928

Japan Europe Other

21,442

3,519 286,393 94,031 78,043

69,605 3

(18,898)

Consolidated

67,111

694,803 (476,355) -

298,817

298,817 -

231,705

TotalEliminations

orcorporate

(163,171)

72,623

(163,171)

(157,659) (5,511)

298,817

389,364 461,988

Eliminationsor

corporate

(476,355) 694,803

-

TheAmericas

Europe Other Total

163,171 40 2 1,207

94,028 74,996

506,018

Operating expenses

Japan TheAmericas

Consolidated

19,644 268,456

216,788

1,059

Operating expenses (457,456) 635,055 246,085

476,355 1,171,158 21,561

92,823 124,474 Sales to third parties

467,878 253,595

Sales to third parties 159,878 267,397 Inter-segment sales 475,176

3,478 78,040

222,357

246,084

3,551 (32)

Considering similarities of categories, characteristics, manufacturing method, or sales market of what Nintendo deals in, the electronic

entertainment product segment accounts for over 90% of total sales and operating income of all business category segments, with no

other segments to be reported on the basis of disclosure rules. Therefore, this information is not applicable to Nintendo's business.

- 14 -

Nintendo Co., Ltd.

NON-CONSOLIDATED BALANCE SHEETS

Date

Descriptionmillion yen million yen million yen

Ⅰ Current assets1 Cash and deposits2 Notes receivable3 Trade accounts receivable4 Inventories5 Deferred income taxes6 Other current assets7 Allowance for doubtful accounts

Total current assets

Ⅱ Fixed assets1 Property, plant and equipment

(1) Buildings(2) Land(3) OthersTotal property, plant and equipment

2 Intangible assets

3 Investments and other assets(1) Investments in securities(2) Investments in affiliates(3) Deferred income taxes(4)(5) Allowance for doubtful accountsTotal investments and other assets

Total fixed assets

Total assets

13.6

100.0

Amount

796,140 1,517

192,654

As of March 31,2007

%

148,322

25,077

86.4

32,604

20,234

3,632

22,002

(2)

12,631

1,180,869

84,992

Other investments and other assets

100.0 1,078,404

14,067

100.0

174,741

(Assets)

87.4 83.8

113,866

(3)

25,077

41,341

10,434 15,697

(10) 143,719 185,398

337

1,366,267

12.6 176,351

1,400,267

3,985 41,414

84,090 32,791

308

(10) 134,628


Amount

735,344

140,969 24,265

%

362 288,138 34,839

1,223,916

12,351

2,668

3,689

40,529

16.2

32,487

25,184

459

76,992

133,752

9,102 17,436 (2,266)

98,625

20,482

903,662

12,676

(6)

17,559


Amount

650,623 2,511

%

- 15 -

Nintendo Co., Ltd.

Date


Ⅰ Current liabilities1 Notes payable2 Trade accounts payable3 Other accounts payable4 Accrued income taxes5 Reserve for bonuses6 Reserve for directors' bonuses7 Other current liabilities

Total current liabilities

Ⅱ Non-current liabilities1 Non-current accounts payable

Total non-current liabilities

Total liabilities

(Net assets)Ⅰ Owners' equity

1 Common stock2 Additional paid-in capital

(1) Capital reserve(2) Other additional paid-in capitalTotal additional paid-in capital

3 Retained earnings(1) Legal reserve(2) Other retained earnings

Special reserveGeneral reserve

Total other retained earningsTotal retained earnings

4 Treasury stockTotal owners' equity

Ⅱ1 Unrealized gains on other securities

Total net assetsTotal liabilities and net assets 1,078,404 100.0 1,400,267 100.0

0.5 8,895 0.6

852,378 79.0 975,302 69.7 947,076 69.3

Total valuation and translation adjustments 9,909 0.9 6,821

Valuation and translation adjustments 9,909 6,821 8,895

Unappropriated retained earnings 209,368 1,100,044 1,069,408

240,003 973,516 113,473

40 860,000 860,000

40 860,000

42

11,584

2,516 2,516

1 11,585

2,516

2 11,586

9 11,593

1,071,925

938,181 68.7

1,366,267 100.0

(155,396)

0.1

30.7

As of March 31,2007

%

8,919 287,029 21,837

-

30.6

11,584

%

30.3 424,288

%

17,937 225,180

10,065

21,421

676

424,965


845

226,025

20,650

Amount

78,294 1,779

8,463

1,628 77,687


30.3

292,477

370 22,239

0.0 676

21.0

Amount

1,555 130

845

11,584

15,023

0.1

38,985

20.9

(Liabilities)

Amount

5,767 145,780

(155,214) 842,468 78.1

418,510

680

10,065 10,065

680

419,191

976,032

69.2

1,102,560 (155,738) 968,480

- 16 -

Nintendo Co., Ltd.

NON-CONSOLIDATED STATEMENTS OF INCOME

Period


Ⅰ Net salesⅡ Cost of sales

Gross margin

Ⅲ

Operating income

Ⅳ Other income1 Interest income2 Foreign exchange gains3 Other

Ⅴ Other expenses1 Sales discount2 Other

Ⅵ Extraordinary gains

Ⅶ Extraordinary losses

　

Prior year income taxesIncome taxes deferred

Net income

17,798 1.9 17,798 6.2 - -

5,236

10.0 89,843

24,055

23.6

52,423 5.8

23,131

212,288


0.5

(4,478) 109,935 37,897

Amount

24.3

% Amount

13,094

634,996

591

177,659

39,006

286,393

108,734 428,697

100.0 62.0

13.7

625

-

206,299

69,727

34

38.0

0.3

45

2,877 3,923


Year EndedMarch 31, 2007

0.1

166,987 26.3

19,895 3.1

6.2 39,312

%Amount

67.5 32.5

100.0

-

0.2 29.1

%

8.3

10,174 1,962

0.2

(2,290)

1,553

12.5

32.2

13.6

92,171 184,596

79,140

1,660

(0.7)

112,221 12.5

0.2

100.0 596,507 66.4 302,132 33.6

898,639

1,308

2,067 29.5

4,056 0.4

265,392

0.1

32.4 92,923

11,495

1,233

29.3 263,403 29.3 186,257

75

15.9 (7,371)

13.2 (0.8)

142,743 (0.8)

17.3

Income before income taxes

Provision for income taxes and enterprise taxes 38,765

Selling, general, and administrative expenses

Income before income taxes and extraordinary items

436

23,632

390

801

- 17 -

<Appendix> Nintendo Co., Ltd.

NON-CONSOLIDATED STATEMENT OF NET ASSETSSix months period ended September 2006 (April 1, 2006 - September 30, 2006)

million yenOwners' equity

Additional paid-in capital

Balance as of March 31, 2006

* Reversal of special reserve* Dividends from retained earnings* Directors' bonuses* General reserve



million yen

Owners' equity

Retained earningsOther retained earnings


* Reversal of special reserve* Dividends from retained earnings* Directors' bonuses* General reserve


Balance as of September 30, 2006[Note] *Allocated at the annual general meeting of shareholders' held in June 2006.

42

(2)

-

Valuation and translationadjustments

-

845,785

11,584

(155,112) 166,686

2,516

-

-

-

-

- (2)

-

- -

-

-

-

0

- - - - -

- - - -

- -

- 0

1

Unappropriatedretained earnings

Legal reserve

0 -

- -

810,000 2,516 44

- -

Other additionalpaid-in capitalCapital reserve

-

- 2

(40,932)

General reserve

Treasurystock

Totalowners'equity

10,065

Amount of changes in the six months period

- -

Common stock

10,065

-

11,584

-






- - -

- - -

(50,000) 37,897

-

- 50,000

- -

-

- - -

-

- -

50,000

860,000 842,468 (155,214) 113,473

(53,212)

37,897 (102)

(806)

0

(3,316) (102)

(806)

-

0 (102)

-

-

(180) -

Special reserve

- (40,932)

- -

(180) -

9,909

Unrealized gains onother securities

- - - -

10,716

-

-

- 18 -


NON-CONSOLIDATED STATEMENT OF NET ASSETSSix months ended September 2007 (April 1, 2007 - September 30, 2007)






million yen

Owners' equity





-


(79,299) -

938,181

11,584

(155,396) 209,368

6

Totalowners'equity

2,516

- -

-

-

-

40

-

-

-

- -

-

10,065

-

-

- 6

2 11,584

- -

10,065 9


Legal reserve

860,000

-

-

Special reserve General reserve

Treasurystock

-

- -

-



Common stock Other additionalpaid-in capitalCapital reserve

-

-

2,516 40

(79,299)





- 109,935 - -

- -

- - -

- - - -

2

-

860,000 968,480 (155,738) 240,003

30,635 30,299 (342)


- - -

8,895

(2,073)

(2,073)

-

6,821

109,935 (344)

-

8 (344)

-

- 19 -


NON-CONSOLIDATED STATEMENT OF NET ASSETSYear ended March 2007 (April 1, 2006 - March 31, 2007)




* Reversal of special reserveReversal of special reserve

* Dividends from retained earningsDividends from retained earnings

* Directors' bonuses* General reserve



million yen

Owners' equity



* Reversal of special reserveReversal of special reserve

* Dividends from retained earningsDividends from retained earnings

* Directors' bonuses* General reserve


Balance as of March 31, 2007[Note] *Allocated at the annual general meeting of shareholders' held in June 2006.

-

8,895


- - - -

10,716

-

- -

-

(180) -

Special reserve

-

(40,932)

-

- -

142,743 (284)

(1,821)

1

92,395 (283)

(1,821)

-

2 (284)

- -

50,000

860,000 938,181 (155,396) 209,368

42,681

-

- - -

(180) (50,000) 142,743

-

-

- - -

- 50,000 - - -

-

Amount of changes in the fiscal year

Total amount of changes in the fiscal year

Total amount of changes in the fiscal year



- -

Amount of changes in the fiscal year

- -

Common stock Other additionalpaid-in capitalCapital reserve

-

- - -

- (2)

-

-

-

-

-

-

810,000

-

2,516 44

(8,953) -

2

(40,932)

- 2 -

General reserve

Treasurystock

Totalowners'equity

10,065 2


Legal reserve

1 -

- -

- -

- -

- -

10,065

-

- 1

0

-

-

-

11,584

-

-

-

- (2)

-

- -

-

-

-

2,516

- -

-

-

-

40

(4)

-


(8,953) - -

845,785

-

11,584

(155,112) 166,686

- 20 -

Nintendo Co., Ltd.

Others

(1)Consolidated sales information million yen

HardwareHandheldConsoleOthers

Hardware totalSoftware

HandheldConsole

Royalty, content income, etc.Software total

Electronic entertainment products totalOther Playing cards, Karuta, etc.

Total

(2)Other consolidated information million yen

Capital investments

Depreciation expenses of tangible assets

Research and development expenses

Marketing expenses

Foreign exchange gains

Foreign exchange losses

Number of employees (At year-end)

Average exchange rates 1 US $ =

1 Euro =

(3)Balance of assets in major foreign currencies without exchange contracts (Non-consolidated) million U.S. dollars / eurosAs of September 30, 2006 As of September 30, 2007 As of March 31, 2007 As of March 31, 2008

Balance Balance Balance Estimated exchange rates

US $ Cash and deposits 1 US $ = 1 US $ = 1 US $ = 1 US $ =Trade accounts receivable

Euro Cash and deposits 1 Euro = 1 Euro = 1 Euro = 1 Euro =Trade accounts receivable

(Note) Trade accounts payable as of September 30, 2007 : 293 million U.S. dollars.

379,578 964,379

2,154 966,534

271 　149.77 yen


374,063 156,478

54,258 584,800

291,916 82,361

5,301

499 　117.90 yen752

115.38 145.97

Exchange rate

2,934

28,178 10,057

- 3,257


4,025 1,961

19,156

157.33 yen

118.05 yen

160.00 yen

155,696 3,814



Year endingMarch 31, 2008 (forecast)

10,684 1,108

129,346

210,793

Business category Main products Six months endedSeptember 30, 2006


Electronicentertainment

products

9,096 168,607

117,554

200,928 40,966

452,687

152,528 83,008

5,074 240,611 693,299

1,503 694,803

5,160 11,232

297,954 862

298,817

3,358 18,084 46,335

2,149 -

3,586 119.34

25,741 -

3,373 117.02

10,000 6,500

45,000 115,000

Exchange rate

5,093 37,725 82,339

- 9,000

- 117.17 161.15

2,592 1,130

2,940 779

162.31 150.09

115.00 yen

Exchange rate

693 522

972 862 　163.38 yen

　115.43 yen

- 21 -

Nintendo Co., Ltd.(4) Consolidated sales units, number of new titles, and sales unit forecast

Sales units in ten thousandsNumber of new titles released

Actual Actual 　Life-to-date ForecastApr.-Sept. '06 Apr.-Sept. '07 Sept. '07 Apr. '07-Mar. '08

Game Boy Advance Hardware JapanThe Americas

OtherTotal

of which Game Boy Advance SP JapanThe Americas

OtherTotal

Software JapanThe Americas

OtherTotal

New titles JapanThe Americas

Other Nintendo DS Hardware Japan

The AmericasOtherTotal

of which Nintendo DS Lite JapanThe Americas

OtherTotal


OtherTotal


Other Nintendo GameCube Hardware Japan



OtherTotal


Other Wii Hardware Japan



OtherTotal


Other

[Notes]1 New titles-Other include new titles in the European and Australian markets.2 Actual sales units of software include quantity bundled with hardware.3

1,673 100 55 4,165

8 7

58 39 2,210 166 102 8,048

6 0 651

51 36 1,231 100 54 2,401

156 90 4,282 170 22 7,259

455 129 8,660 1,355 487 21,344

1,000 14 - 786

1,980 638 37,263

52 11 915 75 18 1,010

461 368 1,971 240 432 1,606 309 535 1,788

1,009 1,335 5,364 2,800 440 368 1,316 223 432 1,073 186 507 1,104 848 1,307 3,493

2,064 2,001 9,513 1,194 2,440 8,242 1,059 3,109 8,193 4,316 7,550 25,948 16,500

100 207 652 52 121 393 47 138 400

2 0 402 27 8 1,288

6 0 476

788 166 13,778

35 8 2,166 30 6 2,747

14 4,248 898 185 20,774 250

80

6 - 275 28 3 552 14 1 453

- 167 367 - 309 546 - 257 404 - 733 1,317 1,750 - 577 1,190 - 1,900 3,349 - 1,220 2,043 - 3,697 6,581 9,700 - 36 74 - 67 114

Software forecast figures do include quantity bundled with hardware for the results ended September 30, 2007, however,software forecast figures in and after October 2007 do not include quantity bundled with hardware.

- 47 92

- 22 -

consolidated financial statements - 任天 …. others (1) changes for important subsidiaries during...

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