csr report 2013 - nintendo network business & development

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CSR Report 2013 CSR Report 2013 We def ine CSR as “Putting Smiles on the Faces of Everyone Nintendo Touches.” This CSR report is a digest version of the activities Nintendo has been working on to achieve our CSR goal. Please refer to the Nintendo Co., Ltd. website for more detailed information about our CSR activities. We welcome your opinions and comments about the CSR Report 2013 on our website. Digest Version (this report) Reporting Scope The scope of this report covers the activities and data of the Nintendo Group (Nintendo Co., Ltd. and its main consolidated subsidiaries). Any information not within this scope is explicitly identif ied as such. For the purposes of this report, the term “Nintendo” refers to the entire Nintendo Group. Nintendo Co., Ltd. is referred to by its complete name. Reporting Period This report mainly covers activities in f iscal year 2012 (from April 2012 through March 2013), in addition to some recent activities and some activities prior to fiscal year 2012. Publication Date Publication date of English report: July 2013 (The next English report will be published in July 2014) Nintendo Overview Company Name Nintendo Co., Ltd. Location 11-1 Hokotate-cho, Kamitoba, Minami-ku, Kyoto, Japan Founded September 1889 Incorporated November 1947 Capital 10,065,400,000 yen Net Sales (consolidated) 635,422,000,000 yen (f iscal year ended March 2013) Number of Consolidated Employees 5,080 employees (as of the end of March 2013) Business Description Manufacture and sale of home leisure equipment Detailed Version (website) http://www.nintendo.co.jp/csr/en/ CSR Report 2013

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Page 1: CSR Report 2013 - Nintendo Network Business & Development

CS R Repor t 2 013

CSR Report 2013

We def ine CSR as “Putting Smiles on the Faces of Everyone Nintendo Touches.”

This CSR report is a digest version of the activities Nintendo has been working on to achieve

our CSR goal. Please refer to the Nintendo Co., Ltd. website for more detailed information

about our CSR activities.

We welcome your opinions and comments about the CSR Report 2013 on our website.

Digest Version (this report)

Reporting ScopeThe scope of this report covers the activities and data of the Nintendo Group (Nintendo Co., Ltd. and its main consolidated subsidiaries). Any information not within this scope is explicitly identif ied as such. For the purposes of this report, the term “Nintendo” refers to the entire Nintendo Group. Nintendo Co., Ltd. is referred to by its complete name.

Reporting PeriodThis report mainly covers activities in f iscal year 2012 (from April 2012 through March 2013), in addition to some recent activities and some activities prior to f iscal year 2012.

Publication DatePublication date of English report: July 2013(The next English report will be published in July 2014)

Nintendo Overview

Company NameNintendo Co., Ltd.

Location11-1 Hokotate-cho, Kamitoba, Minami-ku, Kyoto, Japan

FoundedSeptember 1889

IncorporatedNovember 1947

Capital10,065,400,000 yen

Net Sales (consolidated)635,422,000,000 yen (f iscal year ended March 2013)

Number of Consolidated Employees5,080 employees (as of the end of March 2013)

Business DescriptionManufacture and sale of home leisure equipment

Detailed Version (website)

http://www.nintendo.co.jp/csr/en/

CSR Repor t 2013

Page 2: CSR Report 2013 - Nintendo Network Business & Development

I believe the entertainment that Nintendo provides has the ability to connect people over generations and countries. A father who played a certain game in his childhood is able to share the same experience with his chi ldren when they play i t together. Communication about a game with people in other c o u n t r i e s c a n s e r v e a s a t r i g g e r t o h e l p u s understand each other better. This is the true value and role of our products and services. The Wii U system, which we launched at the end of 2012, has a brand-new online community called Miiverse*1. Users all around the world can post and share their feelings and experiences about software through their Mii characters. In addition to typed messages, users can post handwritten messages or drawings as well as change the facial expressions of their Mii characters to �t their moods. These features enable users to overcome the language barriers inherent in text-only communication. We are now prepar ing (as of Februar y 2013) Animal Crossing: New Leaf for Nintendo 3DS for market s around the wor ld . T he sof t ware wi l l include items or events based on the culture or customs of each region. After it is released, Japanese and international users will be able to communicate in the game through an online connection. I hope all users learn more about other cultures and lifestyles by playing the game and communicating beyond the language barrier. Once you communicate with someone from another country, you might feel more familiar with his or her culture than before - even if

you have never been there. In order to make the most out of attractive game features that can provide these great experiences, we deeply value the idea of “empathy.” When children have a good time at school with friends talking about game progress and strategies, or when grandparents and grandchildren play a game together, they can empathize with each other about the trials and triumphs they experienced. Communication based on empathy will help users to enjoy games more and to have an enriched experience through their expanded network.

When we introduce a new product, we of course hope it will be played by as many people as possible. In reality, however, it is very dif f icult to accurately forecast the sales of a software title before it is released. As a result, retail stores sometimes sell out of our products when our consumers are eager to play them, while other products sometimes remain on store shelves. In the summer of 2012, we star ted the digital distribution of software that used to be sold only in a packaged format. Consumers can now purchase and d ow n l o a d s o f t w a r e at a ny t i m e th ro u g h th e Nintendo eShop, which we operate for the Nintendo 3DS and the Wii U systems. Af ter downloading software, consumers do not need to exchange the game cards or discs to play a di�erent game, and they wil l never misplace the sof t ware. From a long-term standpoint, the digital distribution will contribute to conserving the natural resources used

in packaging and operations manuals. In Japan, as well as the direct online shopping at the Nintendo eShop, we have started another service at retailers that enables consumers to purchase a card with a download code on it. This way, retailers that have POSA (Point Of Sales Activation) systems do not need to take physical inventory risks, and consumers can enjoy the convenience of digital distribution. We will continue to improve the services that we o�er not only to our consumers but also to society as a whole.

To live up to our social responsibilities, we recognize the importance of reducing environmental burdens throughout a product ’s lifecycle: from planning, development, production, transportation, usage to disposal. For example, we are actively working towards the adoption of electronic manuals instead of printed versions, as well as energy-conserving product designs. I n a d d i t i o n , N i n t e n d o i s co m m i t t e d t o t h e responsible sourcing of materials, and is against the use of conf lict minerals*2. We prohibit our production partners*3 from using conf lict minerals, and actively work with them to ensure compliance. As a company that o�ers products all over the world, it is important that we are accountable for our actions. We are committed to continuous improvement in our e�orts to create new value by expanding the smile network through socially responsible and thoughtful business practices.

Expanding Smile Network Over Generations, Genders and Geographic LocationsPeople of all ages, speaking dif ferent languages and representing various cultures, are learning to understand each other through the enjoyment of Nintendo products. We create new styles of communication and enable people to empathize with others all over the world.

*1

*2

*3

Miiverse is a network service which enables users to communicate with other users f rom around the world through their Mii characters.

Conf lict minerals mean the tungsten, tantalum, tin and gold that are extracted from the conf lict-a�ected regions of the Democratic Republic of the Congo and its nine adjoining countries, and are used as a f inancial source for armed groups or rebel forces who often commit crimes against humanity.

Nintendo adopts a fabless production model and outsources its manufacturing processes to other companies. We call the factories that assemble our products “production partners.”

Connect People Across Generations and Countries

Creating a Better CycleLiving up to Our Social Responsibilities

President’s Message

President, Nintendo Co., Ltd.

01 02

Page 3: CSR Report 2013 - Nintendo Network Business & Development

Many Ways to Play

With Wii U, users can play games or browse the Internet using the GamePad controller while another member of the family is watching their favorite TV show. In order to make this possible, it was extremely important that the system respond quickly to a user’s command and send the images or sound from the Wii U console to the GamePad screen without noticeable delays. With our development partners, we were able to develop a system that sends images and sound between the console and the controller quickly and e� iciently.

Kenichi MaeProduct Development & Planning Group Product Development Department No. 3 Integrated Research & Development Division

Yozo KawaiAssistant ManagerElectrical Engineering Group Product Development Department No. 2 Integrated Research & Development Division

While enjoying a video on the big screen, the user can search for the next video on the GamePad.

Creators’Comments

Environmental Considerations

With the help of our semiconductor development and production partners, we have adopted a multi-chip module (MCM) that enables us to build the CPU and GPU, which are two components that require a large amount of energy, into one small package. Using this technology decreases the amount of energy required to run the Wii U system. Our design philosophy of balancing performance with environmental considerations, which began when we f irst designed the Wii system, is clearly evident in the Wii U console design as well.

With the help of several development p a r t n e r s , w e h a v e a d o p t e d M C M technology, which enables the CPU and the GPU chips to be placed into a single package.

Our Thoughts and Wishes for Wii UOur hope is that Wii U will change the role of the game console in u s e r s ’ h o m e s b y p r o p o s i n g b r a n d - n e w w a y s t o e x p e r i e n c e entertainment. Nintendo wants users to expand the circle of “empathy” by o�ering a system in which they can freely express themselves while playing games. By playing on the Wii U system, we want people to discover new things and meet new people.

New Potential of Video Games

Make Games More Attractive The Wii U GamePad, which is a controller with a built-in screen, is one of the unique features of the Wii U system. By embedding a screen in the controller, it opened the door for new, two-screen gameplay. For instance, in chasing games, the player that is chasing others can only see what is in his or her immediate surroundings on the TV screen, but the person who is being chased is able to see the entire stage on the GamePad screen. In addition, if there are multiple chasers, they can cooperate with one another by sharing information about where they last saw their target. This type of play encourages communication and teamwork among the players. This new idea of two-screen gameplay o�ers a unique kind of excitement and fun, and incites a special connection among the players. The result is a much more attractive way of enjoying gameplay.

Person being chased (one person) Chasers (four people)

1P 2 P

3 P 4 P

Feature 1

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Creators’Comments

New Potential of Video Games

The Fun of Games x The Human Bond

When games become a common topic among family and friends, it stimulates conversation and helps bring them closer. As a result, the games become even more fun to play. At Nintendo, we have always thought that one of the appealing aspects of games is that the fun can be shared with family and friends. The Wii U system has a new built-in network service called Miiverse, where people from all over the world can communicate with one another through their Mii characters. This service enables users to share their thoughts and experiences about a game, not only by text comments, but also by handwritten notes, illustrations and screenshots. Furthermore, when a user empathizes with another user’s comment, they can press the “Yeah!”button to express agreement. In other words, by playing and experiencing the same game, users are able to connect with one another. In addition to enjoying the game itself, the fulf illment of being “connected” with others multiplies the fun of playing on the Wii U system.

Living Rooms Connect

* The person on the other side must also have a Wii U system. A broadband Internet connection is necessary.

Since the Wii U system is connected to the TV, which is typically the focal point of the living room, we focused on pre-installing features that would make the entire family happy. An example of one of these features is Wii U Chat, an easy-to-use service that enables users to make video calls. Users are able to converse with friends and family on the big TV screen as if they are in the same living room. Being able to see one another’s facial expressions is an important way to communicate and understand one another. Furthermore, users can use the GamePad screen to write messages or draw pictures to send to the person they are communicating with on the TV screen. This is an e�ective way for users to express gratitude or other feelings that they may hesitate to express with spoken words.

For Your Safety

Nintendo believes it is essential to o�er a system that enables users to play games safely. For example, in Miiverse, users can choose with whom they share certain information, including their user prof ile and posts. In addition, parents or guardians are able to restrict functions that their children can use with the Parental Controls settings. Furthermore, if a user f inds any inappropriate comments on Miiverse, they can report them with the Report function. We make sure that our consumers always feel comfortable participating in Miiverse. Reported incidents are always monitored, and if a certain comment is determined to be problematic, it will be removed immediately. Nintendo also monitors the comments, so Miiverse has a double-layer monitoring system.

This is a function in which a parent or guardian can control the content (games and some of the channels) that their children can play or watch.

Users are able to express their thoughts freely, either by using the “handwritten post” feature on the GamePad touch screen, or by attaching a screenshot from gameplay. In addition, when a p l a y e r f inally succeeds in clearing a stage after many tries, or when a player is stuck and cannot move on, they can post their feelings and other users will respond with their thoughts, empathy or even advice.

Users can make face-to-face calls with people around the world without worrying about the cost – all they need is a broadband Internet connection.

Empathy Network

In designing Miiverse, one of our goals was to give users the ability to communicate despite the language barriers. When the service began, I saw that people from all over the world were conversing in Miiverse despite the di�erences in nationality and language, which reconf irmed my belief that playing games is a global culture in itself.

Us e r s c a n e x p r e s s f e e l i n g s , s u c h a s frustration or happiness, by changing the facial expressions of their Mii characters.

Usability

Nintendo has always striven to make controllers easy to use. The Wii U GamePad was no exception. However, as it is much bigger than any other existing controller, we created many prototypes before f inally arriving at the current design. We now believe we have perfected the weight, button placement, and the f it and feel of it in your hands.

We sought to reach a balance between ease of use and a design that would be appropriate for the living room. The grips are designed so that users will not tire after a long period of play, and the shape of these grips ensures that the controller is a comfortable f it for both big and small hands.

Kiyoshi MizukiManager Communications Services GroupNetwork Development & Operations Department

Masato IbukiDesign Group Product DevelopmentDepartment No. 2 Integrated Research &Development Division

Parental Controls

Feature 1

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Page 5: CSR Report 2013 - Nintendo Network Business & Development

to touch miniature versions of 20 sculptures while listening to commentaries in the special Touch Gallery, and visitors with hearing impairments can access a video-guided tour in French sign language that focuses on the Louvre’s major works. The Egypt for all the Family tour, which was added in December 2012, contains special content for children which enables them to test their knowledge with multimedia game quizzes. The Nintendo developers recommended that we include these features, and we appreciate their e�orts to make the Audioguide useful and fun for all visitors.

After introducing the Audioguide, we have seen children showing screen images to their parents while

they explain the exhibitions. We are pleased that the Audioguide is being used as a communication tool between generations. We are also grateful that the Audioguide has enabled us to reach out to the young generation and spark their interest in art. Due to our collaboration with Nintendo, the Louvre was discussed on game websites for the f irst time. We hope that the Audioguide Louvre-Nintendo 3DS XL will continue to attract visitors to the Louvre.

A New Way to Enjoy a Museum

Christophe MoninHead of MecenatLouvre Museum

Game System Brings New Experience to Historic MuseumThe Louvre Museum’s new digital audio guide service, which uses the Nintendo 3DS system, was launched in April 2012. In addition to commentaries by the museum’s curators and lecturers on the museum and its artworks, interactive maps and experiences available only on Nintendo 3DS provide visitors with a fresh perspective on the museum.* In November 2012, all Nintendo 3DS systems were upgraded to Nintendo 3DS XL systems.

* The service is available in French, English, German, Spanish, Italian, Korean and Japanese.

The Audioguide includes more than 700 commentaries, 3D models of major works and 3D images of the inside of the museum. It can be di� icult to see the back of some works because there are walls behind them, but with the Audioguide, the visitor can use the HD zoom to study the f ine details of each piece and rotate the 3D model on the screen to reveal the reverse side of the exhibit. Features such as these help visitors to deepen their knowledge of the works on display at the museum.

Housed in a huge building, the Louvre is home to an extensive art collection. When visitors use the Audioguide, an interactive map of the building appears on the screen so that they can view their current location. Visitors can select specif ic exhibitions they want to see, or choose from a recommended tour at which point the appropriate route will be displayed on the screen so that they are able to make the best use of their viewing time. In addition, the Audioguide shows wheelchair-accessible routes.

4 : © 2013 Musée du Louvre / Florence Brochoire (detail)2 : © 1998 Musée du Louvre / Etienne Revault. Pyramide du Louvre-Architecte I.M. Peï1/3/5 : © 2013 Musée du Louvre / Florence Brochoire

1

3 4

52

3D Models of Major Works An Interactive Map to Guide You

The Audioguide Louvre-Nintendo 3DS XL includes high-def inition 3D images of the Louvre's exhibitions and its rooms, and more than 700 commentaries by museum curators and lecturers. While listening to engaging explanations, visitors are able to get a di�erent perspective on the exhibitions with unique features such as HD zoom, which enables visitors to view the intricate details of works, and 3D models, which enable vistors to view pieces from every angle.

At the Nintendo developers’ suggestion, the Audioguide was equipped with a feature that can show the visitor’s exact position in the museum on the Nintendo 3DS screen, as well as a search function that enables visitors to easily locate the pieces they want to see without getting lost. With these new functions, audio guide usage rates have increased signif icantly.

We are always trying to make the Louvre accessible to everyone. As a part of this e�ort, we incorporated content called the Adapted tour into the Audioguide to accommodate people with disabilities. This tour shows visitors with wheelchairs the locations of elevators and lifts so that they can easily get around the museum. Visitors with visual impairments are able

New Potential of Video GamesFeature 1

Fulf ill Visitors’ Needs

Appeal to a Broader Audience

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Dr. Ryuta KawashimaProfessorTohoku University

An Incredible way to Train Your Brain: Only a Game Makes it PossibleRigorous training of the brain based on the latest neuroscience can be fun, if it is a game. Brain Age: Concentration Training, based on the work of Professor Ryuta Kawashima of the Institute of Development, Aging and Cancer of Tohoku University, can increase the potential of a player’s brain.

Benef its to Your Working Memory

Although there are personal di�erences, using Brain Age: Concentration Training to train your working memory will improve your ability to get things done, exercise restraint, predict and make judgments, and will aid concentration. The expected outcome is a positive e�ect on work, study, housework, sport and other aspects of your daily life.

Maximize Athletes’ Potential

Continuing the training is easy: because it is a game

Players’ Contributions to Society

*1 Skeleton is a single-person sledding sport in which riders travel headf irst with their stomach on the sled. The course for the race is 1300 to 1500 meters long. *2 A training activity in which the player must memorize and write the

answer to a previous problem, while solving the next problem. “1-back” requires players to provide the answer for the previously displayed problem, and “2-back” requires the player to provide the answer for the problem displayed two problems earlier.

*3 This excludes the training data of players in the North American region.

The software development of Brain

Age: Concentration Training began

w h e n a p r o f e s s o r a t S e n d a i

University approached me to help

f igure out how to maximize the

potential of a skeleton*1 athlete. At

the Olympics, skeleton athletes are not allowed to practice

on the actual course for more than a few times before the

race. Therefore, by improving their “working memory,” I

thought they would be able to internalize the course before

the race, hence be more prepared and ultimately produce

better results.

Working memory is a brain system in which a person retains

certain information, which can be manipulated and used, for a

period of time. People need working memory in order to

communicate with others: in responding to other people

while listening to and comprehending what they are saying. In

situations such as sport, working memory is used to predict

what will happen next and make judgments accordingly.

I predicted that by increasing the capacity of a person’s

working memory or, in other words, by increasing the

amount of information that a person could retain at one

time, the ability to multitask and implement memorized

tasks would increase. Therefore, my theory was that

improvement in working memory would lead to an overall

improvement in athletic ability. To apply this theory, I asked

the athletes to train their working memories by playing a

prototype of the software created by Nintendo. All of the

athletes’ results improved. Seeing this, I made a proposal to

Nintendo to turn this technology into an actual game. This is

what eventually became Brain Age: Concentration Training.

The training activities

included in Brain Age:

Concentration Training

require you to memorize

and process mult ip le

tasks simultaneously, as

in Concentration Calculations*2, and since the di� iculty level

adjusts automatically according to performance, players are

always required to perform at the upper limit of their mental

capacity. In order to improve, players must carry out this

training on a daily basis. Nevertheless, because Brain Age:

Concentration Training is a game, it has many fun features

that help them to keep going.

For example, because the result of an activity is recorded

after each session, players are able to see their progress and

feel a sense of achievement. Also, using StreetPass, players

can compare their scores with others, which helps heighten

motivation to remain competitive against family members

and friends. Furthermore, the character that appears in Brain

Age: Concentration Training , which is me (Professor

Kawashima), was created carefully by the development sta�

to give the player a feeling of being trained one-on-one, so

they feel like they have their own personal trainer.

Training your working

memory contributes to

m a x i m i z i n g y o u r

potential in all aspects of

your daily life, including

work, study, housework

and sport. I believe that a system that uses the strengths of a

game to promote continual training can be regarded as one

type of social contribution.

In addition, Brain Age: Concentration Training can use the

SpotPass feature to send players’ training data*3 to my lab. By

analyzing the collected data, I am very hopeful that we will be

able to advance our research. I think that Brain Age:

Concentration Training contributes to society in two ways: by

bringing out the potential of the brain, and by o�ering

training data to be used for the development of new

technologies to benef it future generations. I hope to see more

progress in increasing the potential of games in the future.

New Potential of Video GamesFeature 1

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Value Chain BroadeningProduction partners who share our way of thinking are

essential to Nintendo’s e�ort to provide consumers with the

highest quality products and bring smiles to their faces.

Nintendo CSR Procurement Guidelines On-site inspection example

Check operational status of internal working guidelinesCheck labor unions and worker representationCheck child labor protection guidelines and operational statusCheck wage structure and status of recognitionCheck whether probation period rules for new workers are being followed

Promote compliance and respect for human rights

1

Check whether required certif ied personnel are presentCheck records of facility patrols by certif ied personnelCheck status of employee medical checkupsConf irm facility conditions

Ensure occupational health and safety

2

Conf irm implementation of document management policies and controlsConf irm implementation of rules concerning use of computers

Thoroughness of information management

6

Conf irm presence of adequate f ire extinguishers and that f ire drills are being carried outCon�rm visibility of evacuation routesHazardous material management

Policies and controls for emergency response planning

7

Contributions to society8 Review status of company’s community support activities

Conf irm implementation of environmental management system

Environmental conversation4

Conf irm implementation of quality management system

Product safety assurances and quality guarantees

5

Practice of corporate ethics and fair trade

3 Non-use of illegally mined materials (e.g. conf lict minerals)Conf irm implementation of audits for internal controls

On-Site Inspection Examplenecessary and to convey the reasoning behind the on-site

inspections. In short, they are used as an opportunity to

p r o v i d e t h e p r o d u c t i o n p a r t n e r s w i t h a d e e p e r

understanding of Nintendo's way of thinking. They are also a

valuable opportunity for Nintendo to gain f irst-hand

knowledge of the conditions at the production sites.

In recent years, reviewing systems for information

management has become an area of emphasis in these

on-site inspections. We ask our production partners to

enact strict information management practices to prevent

the leak of unpublicized information specif ic to products

and to immediately improve any identif ied problem areas.

Another focus of the on-site inspections is to check whether

vulnerable workers, such as workers who may be pregnant or

considered minors, are being protected. There is a growing

awareness about the importance of protecting these workers,

and while we are observing steady improvements in this area,

we continue to maintain a dialogue with our production

partners to ensure that continuous e�orts are being made.

Furthermore, Nintendo devotes time to educating production

partners on the non-use of conf lict minerals so they have a

deeper understanding of the issue.

CSR Procurement Practices That can Spread Smiles

In order to work with its production partners to make ever

better products, Nintendo provides the Nintendo CSR

Procurement Guidelines to all of its production partners and

m a i n t a i n s a d i a l o g u e w i t h t h e m t h r o u g h o n - s i t e

inspections. Through such actions Nintendo strives for its

production partners to understand and share Nintendo’s

way of thinking.

These on-site inspections are used not just to point out areas

for improvement, but also to explain why improvements are

Follow-UpAfter the on-site inspection, a report is p rov ide d to th e p ro du c t io n partner that summarizes areas where the production partner is performing well and where it needs to improve. A follow-up survey is conducted to see whether improvements have a l rea d y b e e n imp l e m e nte d o r w h e t h e r t h e y a r e p l a n n e d f o r implementation in the future.

On-Site InspectionNintendo sends p er sonnel to conduct on-site inspections of production partner facilities. We review how the CSR Procurement Guidelines are being implemented, directly inspect manufacturing facil it ies and living areas, and r e v i e w s u c h d o c u m e n t s a s overtime and paid-leave records and employment agreements.

Nintendo CSR Procurement Guidelines

We have formulated the N inte ndo CSR Procurement Guidelines, and we require all of our production partners to comply with these guidelines. The CSR Procurement Guidelines are based on international laws and guidelines regarding topic s such as human r ight s , business e thic s and environmental protection. Business Status

SurveyTo monitor the current situation with our production partners, Nintendo asks that they submit a Business Status Sur vey. This survey is analyzed to evaluate e a c h p r o d u c t i o n p a r t n e r ’s progress and compliance with our CSR Procurement Guidelines.

CSR Procurement With Production PartnersFeature 2

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Page 8: CSR Report 2013 - Nintendo Network Business & Development

Moving forward, Nintendo is committed to working with

its production partners to formulate and implement the

appropriate measures to ensure that conf lict minerals are

not used in our products.

We, as the ROHM Group, convey to our employees our CSR policy, which is based on the company’s objectives and corporate principles, and focus on providing the information necessary to spread our policy to our whole supply chain. The on-site inspections, carried out by Nintendo and other business partners, have helped our employees understand the importance of CSR and have had a positive inf luence on improving the work environment. Recently, we have been actively working on conf irming the origin of materials that we use based on our policy of non-use of conf lict minerals. We follow EICC’s (Electronic Industry Citizenship Coalition) code of conduct, and cooperate with our industrial organization (JEITA) and business partners in order to take e�ective steps towards the issue.

Based on our corporate philosophy, we promote fair trade with our suppliers in Japan, China and the ASEAN region. Through face-to-face dialogue, we share our CSR policy with our suppliers and continually improve the work environment and product quality. We request that our suppliers not use conf lict minerals in their products, and we periodically conf irm that there are no conf lict minerals in the products we supply to our customers. We actively work on CSR issues, including the conf lict minerals issue, with our suppliers.

In March 2013, legal representatives from Nintendo Co., Ltd. and Nintendo of America joined the on-site inspections. We discussed CSR related topics such as con�ict minerals with our production partners.

Case2

We asked a manager to implement a better way of distinguishing working minors. In response, employee ID cards were modif ied with markings that distinguish adults from minor workers.

We asked a produc tion par tner to share its approach to CSR with its subcontrac tor. As a follow-up, we visited the subcontractor, and conf irmed that the subcontractor understood th e C SR ap p ro a ch an d ha d m a d e improvements to its work environment and healthcare facility.

Disaster prevention is an important objective of the on-site inspections. We asked a produc tion par tner to improve the placement and display of f ire extinguishers so they would be easier to f ind. In response, the f ire extinguishers were repositioned based on the workf low, with signage that better conveyed their locations.

Cases of Improvements Conf irmed Through On-Site Inspections in Fiscal Year 2012

Nintendo's Response to Conf lict Minerals

Nintendo has a clear policy banning the use of conf lict

minerals in any of our products. This can be found in the

Nintendo CSR Procurement Guidelines. The Business Status

Survey is used to conf irm that all production partners are in

compliance.

In f iscal year 2012, Nintendo issued a questionnaire to its

relevant production partners to determine whether they

have policies and business practices in place to avoid the

use of conf lict minerals. This survey was given to the

companies among Nintendo's production partners who

handle materials that might possibly contain tin, tantalum,

tungsten or gold.

In addition, Nintendo conducts on-site inspections with

each production partner to discuss the issue of conf lict

minerals with both super visors and workers on the

manufacturing f loor.

Yasuhiro AmemiyaDirector & PresidentROHM Electronics Dalian Co., Ltd.

Tatsuji FujiwaraGeneral Manager Electronic Device DepartmentDaimaru Kogyo, Ltd.

Interview administrators and supervisors.Inspect records of overtime work, holidays, and employment agreements.Check the work site by touring the factory.Hold discussions about factor y operations and manufacturing practices.Check the work site atmosphere and worker morale.

Procedure for On-Site Inspections

FY2008 7 companies (including 5 new companies)

FY2009 14 companies (including 7 new companies)

FY2010 13 companies (including 5 new companies)

FY2011 9 companies (including 2 new companies)

FY2012 13 companies (including 7 new companies)

Results of On-Site Inspections in 2012

Do not use materials that have been mined illegally for the manufacture of your products. Also, make an e�ort to understand and investigate the mined resources relating to your raw materials. A n e x a m p l e o f i l l e g a l l y m i n e d m a t e r i a l s i s s o - c a l l e d c o n f l i c t minerals. If you determine that illegal raw materials are being used, take a p p r o p r i a t e m e a s u r e s s u c h a s switching to the use of alternative materials.

Excerpt from the Nintendo CSR Procurement Guidelines

What We ask of Our Production Partners

Case3

Case1

Promote CSR Throughout Whole Supply Chain Share Company CSR Policy with Suppliers

CSR Procurement With Production PartnersFeature 2

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Page 9: CSR Report 2013 - Nintendo Network Business & Development

Everyone Nintendo TouchesSociety currently faces many challenges. In light of these challenges, we consider what we can do to put smiles on the faces of everyone Nintendo touches.We continue to assess our role and steadily push forward with our endeavors.

Challenges Facing

SocietyLabor

Practices

Fair BusinessPractices

Consumer A�airs

Environment

Community

HumanRights

Reduce Environmental Impact by Download Sales

Green Logistics

Take Back Program

Certif ied as Leading Company for Waste Reduction

Recycling Event

Promoting Resource Conservation

Green Team Initiatives

Share Company CSR Policy With Suppliers (Production Partner’s Comments)

Promote CSR With Whole Supply Chain (Production Partner’s Comments)

Nintendo is continually working to build better relationships with our business partners.

Information Disclosure

Incident Management Team

Act Globally to Protect Company Value

Nintendo strives to maximize its corporate value and build positive, satisfying and trusting relationships with our investors and shareholders through returns on prof it, and the timely and appropriate disclosure of important information to create long-term partnerships.

Nintendo is committed to being a responsible corporate citizen that is recognized for its unique contributions to the community.

One of Nintendo’s goals is to put smiles on the faces of children today and in the future. To ensure a better environment for future generat ions, we are committed to maximiz ing environmental protection in our product design processes and in our business activities around the world.

Supporting Young Game Developers

Food Lifeline

Contribution of a Nintendo Character

Educational Typing Project for Children

Bringing out Children’s Artistic Talents

Art Teaching Program Collaboration With a Museum

Nintendo’s top priority is ensuring that each and every one of our consumers can fully enjoy our products. To achieve this, we listen closely to our consumers, learn from what they tell us and then commit ourselves to creating the highest-quality products.

Innovation

CSRProcurement

Communication

Compliance

CO2 Reduction

Work Safety

ResourceConservation

Diversity

Human ResourceDevelopment

Contributions

ChemicalSubstance

Control

Nintendo is committed to creating and maintaining an environment where all employees can show and develop their strengths while realizing their maximum potential.

Healthy Habits Program

Employees

Shareholders/Investors

Environment

Community

Consumers

Business Partners

Co-Development of Low-Latency Image Processing LSI (Development Partner’s Comments)

E-learning Site for Retailers

Product Safety

Cooperating to Make the Internet a Better Place for KidsWeb

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Web

Easy-to-Follow Video Tutorials Explain Hardware FeaturesP.17

P.17

P.17

P.18

P.13

P.14

P.18

P.18

Increasing Cyber-Safety Awareness

Eliminating Inappropriate Content inCommunication Features

Making Things Easier to Understand, Easier to Use

Health & Safety Information

Safety Audit Program to Ensure Safe Work Environment

Continuous Support for the Starlight Children’s Foundation

Improving the Work Environment

Work Reintegration Management

Nintendo’s Activities

Retail Support Program

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Page 10: CSR Report 2013 - Nintendo Network Business & Development

Global CSR HighlightsTo put smiles on the faces of everyone Nintendo touches, we are undertaking many CSR activities

worldwide. Here are a few examples of what Nintendo is doing. For an overall picture of our CSR e�orts or

to learn more about these e�orts, visit the Nintendo Co., Ltd. website.

Easy-to-Follow Video Tutorials Explain Hardware Features

E-learning Site for Retailers

Green Team Initiatives

Act Globally to Protect Company Value

Nintendo of America Inc.

Nintendo of America Inc.

Nintendo of Europe GmbH (Germany)Consumers

Business Partners

Community

Environment

Shareholders/Investors

Nintendo Australia Pty. Ltd.

We believe that it is important to provide straightforward explanations of various

hardware features and functions so that all consumers can fully enjoy our products.

Nintendo of Europe has been creating tutorial videos which show users how to set

up functions, such as Parental Controls, for all hardware products since the launch of

Nintendo 3DS. These videos are o�ered in ten languages on the website.

Throughout the year, Nintendo of America’s Green Team organizes various activities

that aim to raise environmental awareness for employees and lessen environmental

impacts from our facilities and operations.

Beginning in February 2012, the team introduced a Paper Reduction Initiative which is

comprised of three stages: (1) Educating employees about the impact of paper materials

and the options to reduce or eliminate them; (2) Switching shared printers to automatically

print double-sided and (3) Working with departments with high print volumes to review

their needs and print more e�ectively through the use of high-e� iciency printers.

In addition, in November, employees joined together to volunteer to help plant trees

at the University of Washington Bothell Wetlands. The purpose of the project was to

restore wetlands around North Creek by removing invasive plants and replanting native

trees to conserve the salmon-bearing habitat and enhance the overall landscape.

This event is part of the Mountains to Sound Greenway Trust’s overall goal to plant

over 20,000 native trees and shrubs this season in several natural areas.

To ensure that as many consumers enjoy our products as possible, it is essential that

our retailers are well educated about Nintendo products.

Nintendo of America developed an e-learning resource that enables retailers and

their employees to stay informed of current and new Nintendo products. The secure

website provides retailers with access to specif ic information in a timely, e� icient and

resourceful manner. In 2012, Nintendo of America updated and customized the

e-learning site based on inputs from its retailers.

Nintendo of America’s e�orts to e�ectively and e� iciently convey product and feature

information through this site continues to deepen communication with retailers and,

ultimately, consumers.

Nintendo Ibérica (Spain branch) and EducaThyssen, the education department of

the Thyssen-Bornemisza Museum, developed a program that seeks to create a new

educational model utilizing new technologies in school for art classes.

EducaThyssen and participating teachers designed a series of activities, which use

the Nintendo 3DS XL system and the New Art Academy software, for the teachers to

use in their classrooms. The program was a success, and the f indings from the

current program will be ref lected in future programs.

All of the participants’ works and tutorials were placed on the project’s website for

public viewing.

It is important for a company to minimize adverse e�ects on its business by

forecasting potential risks.

As one of our e�orts to manage legal risk, we hold global meetings where core

personnel at our major group companies gather twice each year and share

information about compliance, legal and regulatory revisions and potential legal

risks.

The results from these meetings are incorporated into each company’s employee

education, and risk management and compliance promotion e�orts, thus

preventing the occurrence of problems.

Art Teaching Program Collaboration With a Museum

Nintendo Ibérica, S.A.

Healthy Habits Program

Employees

Nintendo Australia applied for and received an Australian Government grant that

helped fund the Healthy Habits program. The grant not only provided Nintendo Australia

with funds to run the program but also provided employees with professional training

and useful materials.

At Nintendo Australia, the program consisted of twelve types of activities including

local f itness events, a stress management workshop and providing useful information on

how to quit smoking. In the Pedometer Challenge, teams of four employees competed to

see which team took the highest number of steps at work over an eight-week period, and

in the Boot Camp, employees received a 10-week program of workouts from a registered

personal trainer. Both initiatives were very popular among employees.

Nintendo

Video on how to use Parental Controls

Retailer e-learning site

Legal risk discussionLearning drawing techniques on New Art Academy

Green Team members at Nintendo of America’s headquarters

Employees who participated in the walking event

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