MIRA
INFORM REPORT
|
Report Date : |
29.08.2008 |
IDENTIFICATION
DETAILS
|
Name : |
NINTENDO CO LTD |
|
|
|
|
Registered Office : |
11-1 Kamitoba-Hokotatecho Minamiku Kyoto 601-8501 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
November 1947 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Manufacturer of Home-Use Game Machines, Game Software |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
YEN 55,292.9 Million |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
name & address
NINTENDO CO LTD
REGD NAME: Nintendo KK
MAIN OFFICE: 11-1 Kamitoba-Hokotatecho Minamiku Kyoto
601-8501 JAPAN
Tel:
075-662-9600 Fax: 075-662-9601
URL: http://www.nintendo.co.jp/
E-Mail address: info@nintendo.co.jp
ACTIVITIES
Mfg of home-use game machines, game software
BRANCHES
Tokyo (2), Osaka, Nagoya, Okayama, Sapporo
OVERSEAS
Nintendo America Inc, Nintendo of Canada Ltd, Nintendo
France SARL, Nintendo Benelux BV, Nintendo Phuten Co Ltd, Nintendo (Hong Kong)
Co Ltd, Nintendo Europe GmbH, Nintendo Australia Pty, other. (--subsidiaries)
FACTORY(IES)
Uji (3); Tokyo (Warehouse)
CHIEF EXEC
SATORU IWATA, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES GOOD A/SALES Yen 1,672,423 M
PAYMENTS REGULAR CAPITAL Yen 10,065 M
TREND STEADY WORTH Yen 1,229,973 M
STARTED 1947 EMPLOYES 3,768
COMMENT
MFR
SPECIALIZING IN HOME-USE GAME MACHINES & SOFTWARE.
FINANCIAL
SITUATION CONSIDERED GOOD AND RESPONSIBLE FOR
ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 55,292.9 MILLION, 30 DAYS NORMAL
TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company started
originally as mfr of playing cards, in Kyoto, named KK Marufuku. Name changed as captioned in Oct 1963. Well-known for video game system developer
of home-use game machines and software.
Excels in game & platform development. Software products are known as: Pokemon (short for “Pocket
Monkey” in Japanese), Mario series, other.
Seeking ways to diversify applications of video games, such as
electronic mail boxes. Has US sales arm
in Seattle. Sales in US markets account
for around 40% of total sales. The US
subsidiary was opened in 1982.
Subsequently opened subsidiaries in Germany (1990) and France (1993),
followed by others to cover European markets.
For other overseas subsidiaries (--all sales offices, and consolidating
entities) see OVERSEAS above.
(Market
Share, cited from Nikkei dated 08/08/2008):
Nintendo dominated 2007 world
market for home video-game software, with its share standing a 31.1% in
2007. Strong sales of the
"Wii", a set-top game console, and hand-held console Nintendo DS were
the best sellers. Second placed is
Square Enix Co, third Namco Bandai Games Inc, fourth comes Capcom Co,
other. Nintendo commands more than
one-third of domestic market.
FINANCIAL INFORMAION
The
sales volume for Mar/2008 fiscal term amounted to Yen 1,672,423 million, a
sharp 73.0% hike from Yen 966,534 million in the previous term. The firm achieved record results in both net
sales & income. Sales of its
set-top game console “Wii” were robust with 3.63 million units sold. The novelty of intuitive controller &
health-oriented software turned it into a big him among families, as Nikkei
points out. The “DS” & “Wii” each
rank first & second in respective categories. Handheld game products “Nintendo DS” and its software (“Touch!
Generations” sold exceptionally well), etc sold well on a worldwide basis. The recurring profit was posted at Yen
440,807 million and the net profit at Yen 257,342 million, respectively record
highs, compared with Yen 288,839 million recurring profit and Yen 174,290
million net profit, respectively, a year ago.
(Apr/Jun/2008
results): Sales Yen 423,380 million (up 24.3%), operating profit Yen 119,192
million (up 31.5%), recurring profit Yen 176,892 million (up 34.5%), net profit
Yen 107,267 million (up 33.6%) (% compared with the corresponding period a year
ago). This is thanks to robust sales of
its widely popular “Wii” consoles & software, as well as its “DS” hand-held
devices. Sales of videogames &
consoles continued robust in US. For
the month of July, revenues for these products rose 28% to US$1.19 billion from
a year ago. The firm dominated July
console sales. Top-selling console was
its Nintendo “DS”, at 608,400 units; second seller was Nintendo’s “Wii”, at
555,000 units.
For
the current term ending Mar 2009 the recurring profit is projected at Yen
550,000 and the net profit at Yen 325,000 million, on a 7.6% rise in turnover,
to Yen 1,800,000 million. Hand-held
game console “DS” will continue high level of sales. “Wii” machines are also uptrend.
Stronger Yen may hurt profits but will fully be absorbed by increased
sales. The firm sets the exchange rates
at Yen 100 per US Dollar. In Europe
& US started downloading service for new software titles for “Wii” from May
2008. New “DS” application will be
proposed by year-end 2008, cashing in on achievement of over 20 million “DS” units
in domestic sales.
The
financial situation is considered GOOD to EXCELLENT and responsible for
ORDINARY business engagements. Max
credit limit is estimated to Yen 55,292.9 million, on 30 days normal.
REGISTRATION
Date
Registered: Nov 1947
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 400 million shares
Issued: 141,669,000 shares
Sum: Yen 10,065 million
Major shareholders (%)
Hiroshi
Yamauchi (9.9), Company’s Treasury Stock (9.7), Bank of Kyoto (4.5), Melon Bank
Treaty Cl Omnibus (3.8), Master Trust Bank of Japan T (3.4), Ja- pan Trustee Services Bank T (3.3),
Nomura T (BOTMU) (3.3), State Street Bank & Trust (3.0), Nomura Securities Co (2.5), JTSB (Resona Bank)
(2.4); foreign owners (43.7)
No. of
shareholders: 19,908
Listed
on the S/Exchange (s) of: Tokyo, Osaka
Managements
Satoru
Iwata, pres & CEO; Yoshihiro Mori, s/mgn dir; Shinji Hatano, s/mgn dir;
Gen’yo Takeda, s/mgn dir; Shigeru Miyamoto, s/mgn dir; Nobuo Nagai, s/mgn dir;
Masaharu Matsumoto, mgn dir;
Eiichi Suzuki, mgn dir; Kazuo Kawahara, dir; Tatsumi
Kimishima, dir; Takao Ohta, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Nintendo
of America, Nintendo of Canada, Nintendo of Europe,
Nintendo
France, Nintendo Espana, Nintendo (Hong Kong), other
OPERATION
Activities: Manufactures,
exports, wholesales and retails video game console & handsets, software (--98%), playing cards,
Japanese karuta game, mah-jongg play, others (--2%).
Note: The firm officially groups
together all the operations as entertainment systems (100%). We have scrutinized the operations and made
our own breakdowns.
Goods
are retailed online, too.
(Overseas sales ratio 80.6%: Americas 39.5%, Europe 37.1%, others
4.0%)
Clients
Chain stores, game centers, consumers] Wall-mart, Ajioka Co,
Yamaguchi, Nintendo America, Nintendo Europe, JESNET, other.
No. of accounts: 2,000 (wholesale div)
Domestic areas of activities: Nationwide
Suppliers
[Electric mfrs] Hosiden Corp, Mitsumi Electric, Sharp Corp,
Matsushita Electric Ind, other.
Payment record
Regular
Location
Business
area in Kyoto. Office premises at the
caption address are owned and maintained satisfactorily.
Bank References
Bank of Kyoto (H/O)
MUFG (Kyoto)
Relations: Satisfactory
FINANCES: (In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||||
|
|
|
Terms Ending: |
31/03/2008 |
31/03/2007 |
||
|
INCOME STATEMENT |
|
|
||||
|
|
Annual Sales |
|
1,672,423 |
966,534 |
||
|
|
Cost of Sales |
972,362 |
568,722 |
|||
|
|
GROSS PROFIT |
700,060 |
397,812 |
|||
|
|
Selling & Adm Costs |
212,840 |
171,787 |
|||
|
|
OPERATING PROFIT |
487,220 |
226,024 |
|||
|
|
Non-Operating P/L |
-46,413 |
62,815 |
|||
|
|
RECURRING PROFIT |
440,807 |
288,839 |
|||
|
|
NET PROFIT |
257,342 |
174,290 |
|||
|
BALANCE SHEET |
|
|
|
|||
|
|
Cash |
|
899,251 |
962,197 |
||
|
|
Receivables |
|
147,787 |
89,666 |
||
|
|
Inventory |
|
104,842 |
88,609 |
||
|
|
Securities, Marketable |
353,070 |
115,971 |
|||
|
|
Other Current Assets |
141,884 |
138,230 |
|||
|
|
TOTAL CURRENT ASSETS |
1,646,834 |
1,394,673 |
|||
|
|
Property & Equipment |
55,150 |
57,600 |
|||
|
|
Intangibles |
|
2,009 |
505 |
||
|
|
Investments, Other Fixed Assets |
98,497 |
122,819 |
|||
|
|
TOTAL ASSETS |
1,802,490 |
1,575,597 |
|||
|
|
Payables |
|
335,820 |
301,080 |
||
|
|
Short-Term Bank Loans |
|
|
|||
|
|
|
|
|
|
||
|
|
Other Current Liabs |
231,402 |
167,356 |
|||
|
|
TOTAL CURRENT LIABS |
567,222 |
468,436 |
|||
|
|
Debentures |
|
|
|
||
|
|
Long-Term Bank Loans |
|
|
|||
|
|
Reserve for Retirement Allw |
4,506 |
4,443 |
|||
|
|
Other Debts |
|
788 |
699 |
||
|
|
TOTAL LIABILITIES |
572,516 |
473,578 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common
stock |
10,065 |
10,065 |
|||
|
|
Additional
paid-in capital |
11,640 |
11,586 |
|||
|
|
Retained
earnings |
1,380,430 |
1,220,293 |
|||
|
|
Evaluation
p/l on investments/securities |
5,418 |
8,898 |
|||
|
|
Others |
|
(21,396) |
6,572 |
||
|
|
Treasury
stock, at cost |
(156,184) |
(155,396) |
|||
|
|
TOTAL S/HOLDERS` EQUITY |
1,229,973 |
1,102,018 |
|||
|
|
TOTAL EQUITIES |
1,802,490 |
1,575,597 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2008 |
31/03/2007 |
||
|
|
Cash
Flows from Operating Activities |
|
332,378 |
274,634 |
||
|
|
Cash
Flows from Investment Activities |
233,206 |
-174,603 |
|||
|
|
Cash
Flows from Financing Activities |
-97,844 |
-50,137 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
1,103,542 |
688,737 |
||
|
ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
1,229,973 |
1,102,018 |
||
|
|
|
Current
Ratio(%) |
290.33 |
297.73 |
||
|
|
|
Net
Worth Ratio (%) |
68.24 |
69.94 |
||
|
|
|
Recurring
Profit Ratio (%) |
26.36 |
29.88 |
||
|
|
|
Net Profit
Ratio (%) |
15.39 |
18.03 |
||
|
|
|
Return
On Equity (%) |
20.92 |
15.82 |
||
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.79 |
|
UK Pound |
1 |
Rs.80.05 |
|
Euro |
1 |
Rs.64.56 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)