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President Kimishima Talks About Nintendo's Cash Position at Annual Shareholders Meeting

Many shareholders brought up the cash hoard on Nintendo's balance sheet at the 77th Annual General Meeting of Shareholders, and Kimishima-san replied with some revealing answers. 

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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!

Asif Khan is the CEO and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

From The Chatty

    • reply
      June 29, 2017 10:47 AM

      I would love to see Nintendo buy out Capcom. It's not going to happen, but I'd love to see it.

      • reply
        June 29, 2017 10:55 AM

        I am just going to keep suggesting it. The money is there. There are obvious synergies, but yeah, just speculation and wishful thinking.

        • reply
          June 29, 2017 10:58 AM

          I think honestly that by the time Capcom would be priced where Nintendo would really want to pick them up they'd have been grabbed by another company with deep pockets willing to put more on the line. It's where Nintendo's conservative business nature can bite them in the ass, but its also kept them going this long so \_(o_0)_/

          • reply
            June 29, 2017 11:46 AM

            I'll support this so we can get Monseter Hunter for the Switch.

            • reply
              June 29, 2017 11:47 AM

              They should also buy Sega so they can take over Atlus.

        • reply
          June 29, 2017 1:21 PM

          what problem does it address though? Nintendo doesn't exactly lack for strong IP to use to bootstrap their own platforms. They're more constrained by headcount/resourcing/strategy there than a lack of ideas and IP to use.

    • reply
      June 29, 2017 10:49 AM

      Should have asked for advanced orders of Super Nintendo Classic instead of Super Nintendo World.

      • reply
        June 29, 2017 10:56 AM

        Yeah, they'd be able to resell it for considerably more than the cost of a ticket I bet.

    • reply
      June 29, 2017 10:57 AM

      "Fire Emblem download count is 1/10th of Mario but has more revenue."

      lul. shouldve just F2P'ed it, fireballs and p-wings for 99 cents. jk thats bad and I'm glad they stuck to their principles at least for mario

      but the stockholder in me wants them to F2P the f out of animal crossing, thats a F2P gold mine. who wouldnt want to spend $1.99 on some sweet wallpaper for their animal crossing home

    • reply
      June 29, 2017 11:05 AM

      I have respect for careful and conservative business practices.

    • Zek
      reply
      June 29, 2017 12:49 PM

      Shareholder: Any chances shareholders can get advance tickets or fast passes at Super Nintendo World?

      LOL, come on dude.

      • reply
        June 29, 2017 12:54 PM

        lol shareholders man. I love it. I remember that idle thumbs podcast where remo talked about the activision shareholders meeting and he mentioned some guy was like can you make more world of warcraft that seems to be making lots of money

      • reply
        June 29, 2017 1:37 PM

        I had to include that.

      • reply
        June 29, 2017 1:44 PM

        There is a certain kind of "tourism", the same old dudes with a similar portfolio showing up to raid a buffet, talk shit amongst each other or annoy the folks who are obligated to be there, with really dumb questions. Its especially funny at football clubs. It can get really contentious too.