Nintendo’s 77th Annual General Meeting of Shareholders was held today in Kyoto, Japan. The companies board of directors and key personnel were all in attendance to provide an update about the company's progress. There was not a whole lot of new financial information provided during the first part of the meeting, but some very interesting topics came up during the question and answer section.
Shareholder via Translator: Looking at balance sheet, we have 1 trillion yen in cash. How do you utilize that?
Kimishima: There have been technical innovations lately that we need to invest into. We are developing future hardware and software, our IP, mobile, video content, etc. We need to hoard for these investments. And our business experiences high and low cycles and need to be prepared. We give back to shareholders with dividends; M&As are also a possibility.
Another shareholder brought up the company's cash hoard in a different manner.
Shareholder: Any chances shareholders can get advance tickets or fast passes at Super Nintendo World?
Kimishima: We give to our shareholders through dividends. Shareholders (indiv/corp) want rewards in different ways. Will look into it.
It seems that Nintendo's cautious cash management approach is here to stay. It has helped them weather financial storms like the Wii U console cycle in the past and allows them to have flexibility when they have to ramp production of successful products like Nintendo Switch. The company is also in the middle of a transition to mobile software development and video content production that will require some capital. Kimishima-san repeatedly stressed that the company views its dividend as the number one way to return cash to shareholders, while also saying that a merger or acquisition is still a possibility. Fingers crossed that Nintendo and Capcom will work something out in the near future, but that is pure speculation at this point.
Please check out Nintendo Everything's Details from Nintendo’s 77th Annual General Meeting of Shareholders for some more great coverage.
Thanks to NintendoEverything.com for the great transcription of the meeting!