C S R R e p o r t 2 011 CSR Report 2011 We extend our deepest condolences to those who have lost their lives as a result of the Great East Japan Earthquake and tsunami, and we express our sincere sympathy to those who are still suffering from these disasters. Entertainment, which we produce and offer, is not essential to life. However, we believe in its great potential to make people smile, create opportunities for human connections and help make our world a happier place. As a company that offers such entertainment, we will continue to do our utmost to assist people in finding their smiles. We wish for the earliest possible recovery and revitalization of the disaster areas. Satoru Iwata President, Nintendo Co., Ltd. Contents 03 President’s Message 05 Global CSR Activities 07 Creating Smiles -- Global Report -- Our Editorial Policy CSR (Corporate Social Responsibility) generally refers to how a company should fulfill its responsibility to society and the global environment. At Nintendo, where our business is games and entertainment, we define CSR as putting smiles on the faces of everyone Nintendo touches. This CSR report describes how we are working to achieve the goal of bringing smiles to everyone involved with Nintendo. Reporting Scope The scope of this report covers the activities and data of the Nintendo Group (Nintendo Co., Ltd. and its consolidated subsidiaries). Any information not within this scope is explicitly identified 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. In addition, the environmental data cited applies mainly to Nintendo Co., Ltd. and its primary overseas subsidiaries and branch offices, as listed below. Nintendo Co., Ltd. is ultimately in charge of planning, product development and production, while incorporating the opinions and legal advice of its subsidiaries. • Nintendo of America Inc. • Nintendo Ibérica, S.A. (Spain, Portugal) • Nintendo of Canada Ltd. • Nintendo Benelux B.V. (Netherlands, Belgium) • Nintendo Australia Pty. Ltd. • Nintendo of Europe GmbH, UK Branch • Nintendo of Europe GmbH (Germany) • Nintendo of Europe GmbH, Italy Branch • Nintendo France S.A.R.L. • Nintendo of Korea Co., Ltd. Reporting Period This report generally covers activities from fiscal year 2010 (April 2010 through March 2011). Data for financial results, employees and environment include figures through the end of March of each fiscal year; however, environmental data for fiscal year 2010 covers January 2010 through December 2010. Publication Date Publication date of English report: July 2011 (The next English report will be published in July 2012) • “Wii” refers to the Wii hardware. • “Nintendo 3DS” refers to the Nintendo 3DS hardware. • “Nintendo DS” includes the Nintendo DS, Nintendo DS Lite, Nintendo DSi and Nintendo DSi XL hardware. • For supplemental information, visit the Nintendo website of Japan: http://www.nintendo.co.jp/csr/en/ 08 Report 1 Picturing the Smiles 11 Report 2 Bringing the Joy of Drawing to a Large Audience 13 Report 3 A Workplace Where Employees are Encouraged to Peform to Their Full Potential 14 Report 4 Imagining the Smiles of Future Generations 15 Everyone Nintendo Touches 17 Bringing Smiles to Our Consumers 25 Working With Our Business Partners 29 Maximizing Our Employees’ Strengths 35 Bringing Smiles to Future Generations 41 Bringing Smiles to the Community 45 Reliable and Trustworthy Business Practices 49 A Message Regarding Nintendo’s CSR Activities 50 Nintendo Overview Translation Note This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail. Nintendo assumes no responsibility for this translation or for direct, indirect or any other forms of damage arising from this translation. President’s Message Bringing Surprise and Delight to Our Consumers What is the Role of Video Gaming in a Society Where Interpersonal Relationships are Changing? Before we launch any new product, anxiet y sometimes overshadows my sense of anticipation because I worry about whether Nintendo’s true vision will be communicated to our consumers. At Nintendo, we strive to develop products that will bring smiles and a sense of wonder to more and more people; yet, we cannot know for sure how consumers will react until the new product is released. So with each new product, I fervently hope for a good launch. My goal for the launch of the Nintendo 3DS system is to see more people experience it than have thus far experienced the Nintendo DS. I am certain that even those who until now have had no interest in video games would enjoy the 3D images of the Nintendo 3DS. I think that if we can get these people to feel surprised and react with “Wow! This is fun,” and “It’s really 3D!,” we will have succeeded in moving one step closer to our goal of expanding the gaming population. Recently, social-networking services have become increasingly popular. I think these services developed out of people’s strong desire to reach out and communicate with others over the Internet, as direct communication declines; however, maintaining relationships via the Internet requires active effort. It seems that, although some people communicate well via this networked medium, others do not yet feel comfortable with this sort of communication. So, in addition to the 3D features of the Nintendo 3DS, we focused on improving its communication features. Wherever you go, if you have your Nintendo 3DS with you and the StreetPass feature is enabled, you can exchange game data with the Nintendo 3DS systems of people around you. Although the Nintendo DS has a similar feature, called Tag Mode, communication via the Nintendo DS is possible only when two users have inserted the same software into their systems. The Nintendo 3DS can communicate with other Nintendo 3DS systems, even without software inserted. We believe the improved communication features of the Nintendo 3DS will foster enjoyable, loose-knit connections. Ninten do has a lo ng -s t an din g co mmitm ent to s o cial entertainment, which makes entertainment more fun by adding a social element that helps build relationships with other people. Nintendo started out in the playing-card business, so social entertainment is literally part of our roots. As a company, we have always of fered enter tainment that is based on interpersonal relationships. This unique background enables us 03 to offer games that we hope will have family members talking to each other more, becoming closer to each other by having fun together. This is something that social-networking technologies have thus far failed to deliver. likely to conceal problems. We believe in continued dialogue with our production partners to maintain an unbiased position throughout the process, and to encourage full cooperation when enacting solutions and enable continued improvements. Safe Viewing of 3D Images For a Better Future The Nintendo 3DS system creates 3D visuals by projecting different images to the left and right eyes. The brain combines these images and perceives them as three-dimensional. Due to theories that the ability to see three-dimensional objects does not mature until the age of six, and that long periods of viewing 3D images could impac t a child’s developing vision, the Nintendo 3DS features Parental Controls that enable parents and guardians to prevent the system from displaying 3D images without their approval. Moreover, the Nintendo 3DS packaging prominently displays information stating that children six years old or younger should not view 3D images without parental consent. Although it is rare for companies to label their products with information that could adversely affect sales, we believe it is important to provide information proactively to ensure that parents and guardians understand that even their young children can enjoy the Nintendo 3DS safely. When we set out to expand the gaming population, we targeted people from 5 to 95 years of age. While this initially seemed an impossible goal, I have been told that people aged 95 and older are enjoying titles like Wii Sports Resort, which was introduced in Japan during June 2009. This is just one example of how we have overcome our preconceived barriers. We are committed to benefiting society by bringing smiles to more people, and we intend to accomplish our goals by continually overcoming such preconceptions, and by discovering and fulfilling consumers’ unmet needs. I hope that everyone at Nintendo and everyone involved with Nintendo will move forward with me in our efforts to create a better future. * This interview was conducted on February 10, 2011, before the launch of the Nintendo 3DS system. Satoru Iwata President, Nintendo Co., Ltd. Building Productive Partnerships At Nintendo, before completing a product we work closely with a wide range of stakeholders, par ticularly the par ts manufacturers. We must have absolute confidence in the quality of each part to ensure that consumers can enjoy our products safely. To that end, we must communicate our fundamental parts procurement approach to our suppliers, the suppliers’ component manufac turers and even the manufac turers’ vendors. Consumers will lose confidence in our products if we do not communicate our high safet y and environmental standards. To facilitate this, during fiscal year 2010, we held green procurement seminars for 170 suppliers in China, where many of our production partners are based. We also strongly emphasize a number of CSR issues, including raw materials and the work environments of our partners’ production processes. Resolving these issues can be difficult when communication breaks down. If companies fail to work as equals with their production partners, these partners are more 04 Global CSR Activities To put smiles on the faces of everyone Nintendo touches, we are promoting many CSR activities worldwide. Here are some of our activities. Nintendo Co., Ltd. Nintendo of Europe GmbH (Germany) Europe 656 employees 1,744 employees The Americas Nintendo France S.A.R.L. Nintendo of America Inc. 53 employees Nintendo Ibérica, S.A. (Spain, Portugal) 1,204 employees Japan 89 employees Nintendo of Canada Ltd. 70 employees Nintendo Benelux B.V. (Netherlands, Belgium) 43 employees Nintendo of Europe GmbH, UK Branch 36 employees Nintendo of Europe GmbH, Italy Branch 39 employees Nintendo Australia Pty. Ltd. 97 employees France Japan Organizes Wii events for seniors Japan Spain Promotion of the “Smile-Spreading Project” has a positive impact on employees P.08 Organizes Art Academy workshops throughout Spain P.11 Held green procurement seminars for production partners in China P.37 Supported a program that encourages intergenerational communication P.42 Holds Nintendo Game Seminar to contribute to Japan’s truly world-class game culture P.41 Supported a program run by Odivelas City Hall that seeks to enrich the lives of senior citizens P.42 Netherlands North America LEED Gold status certification awarded to Nintendo of America’s new headquarters P.14 Launched six-week campaign to raise health awareness among employees P.34 Offers Take-Back Program for Nintendo products P.38 Supports Starlight Children’s Foundation by providing game systems to hospitals P.43 Canada Supported the community through volunteer work by visiting a local senior center Portugal Oceania The Americas P.44 Europe Provided the Nintendo DSi XL and Art Academy to an elementary school; sent instructors to help the students learn how to draw P.11 Belgium Converted to the use of electricity generated from 100% renewable energy P.39 United Kingdom Joined a UK government-run program to support employees who are raising children P.32 Joined a program run by the UK government that promotes cycling to work P.40 Game systems that were donated through Starlight Children’s Foundation are now being enjoyed by about 500,000 children P.43 Italy Germany 05 P.42 Cooperated with a famous museum in organizing a children’s painting class that uses Art Academy P.12 Supported a campaign to raise people’s awareness of parental controls P.43 Promotes a work environment that enables employees with children to reach their full potential without giving up their careers P.13 Reinforced employee understanding of the Code of Conduct through an e-learning system P.30 Raises employee health awareness through encouraging their participation in a running event P.34 Supported a project in which teachers use Wii or Nintendo DS to teach Math, English or P.E. P.43 Conducted an office tour for girls in their early teens to expand their knowledge of potential career opportunities P.44 Organized a drawing event in which participants drew pictures of the Sydney Opera House using Art Academy P.12 Launched the charity initiative “Spielend Familien-Talente fördern,” to foster music, sports and art activities P.44 Supports Starlight Children’s Foundation by inviting children and their families to the Australian headquarters P.43 Oceania Australia 06 笑 顔 創 造 Global Report 1 Japan Picturing the Smiles ~ The Smile-Spreading Project ~ To discover the key to making more consumers smile, Nintendo Co., Ltd. launched the “Smile-Spreading Project” in fiscal year 2009, which continued into fiscal year 2010. Mr. Mitsuo Amano, the project leader, will outline our progress since the Project’s inception. The Origin of the Smile-Spreading Project Af ter releasing the Nintendo DS and the Wii, Nintendo succeeded in delivering our products to more than 200 million people. Employee morale soared; but, at the same time, we began receiving an unprecedented number of consumer comments and requests. All employees tried diligently to answer demands, but sometimes we did not have enough time to think from the perspectives of consumers and other departments. We noticed disparities in how different departments perceived the same problem. While Nintendo’s rapidly increasing consumer base impacted our external environment, the growing number of new Nintendo employees affected our internal environment. The proportion of people with diverse problem-solving experience Delivery Seminar participants experience the software debugging process shrank as newer employees joined the company, and we did not have the time for substantial knowledge sharing. In order to solve these problems, we initiated the Smile-Spreading Project. C r e at in g Smiles -- G l o b a l R e p o r t -To achieve Nintendo’s goal of putting smiles on the faces of everyone we touch, we are leading initiatives all over the world. Here are a few highlights of the unique activities we participated in during fiscal year 2010. A Lot to Learn Forging an execution plan for the Smile-Spreading Project took time, especially as it became clear to the project participants, who are key members of each department, that much more information had to be shared, so we invested the time needed to get everyone on the same page. As project members became acutely aware of the importance of “knowing each other,” we implemented the “Delivery Seminar.” This seminar is one of the project’s key efforts that involves employees visiting other depar tments to describe their own depar tment ’s role at Nintendo. In just 30 to 45 minutes of lecturing, participants are surprised by new facts, and the lecturer often gains insight through analysis of his or her daily work. Mitsuo Amano General Manager Quality Assurance Department Nintendo Co., Ltd. 07 08 Comments From Participants Deep Discussion Solidified the Project’s Foundations Our immediate goal for this project is to improve the quality of our products and services. However, this is only one step along the way in reaching our ultimate aim, which is to make consumers smile. We named this project the Smile-Spreading Project in order to show this fact explicitly. But the scope of “Smile-Spreading” was too broad. In order to promote this project, we thought it important to show the ways in which we could get closer to our goal. We needed a word that was easy to understand and could unify the employees. While searching for that word, I noticed that the first step of this project should be to improve “Consumer Sensitivity” (the ability to empathize with consumers) through “Awareness” (to know more about consumers, and about employees in other departments and the work they do). Therefore, we decided to subtitle the projec t with “Consumer Sensitivit y Training Begins With Awareness.” To tell the truth, it was not easy to decide the project name and the subtitle, because the understanding of consumer satisfaction differed slightly among departments. However, by having a thorough discussion on the execution plan and project name, I think the direction of this project became even clearer, and the foundations of the subsequent activities became firm. At times I felt like we were taking a detour, but now I think we are on the right track. Tying Each Employee’s Effort to Consumers’ Smiles The “Group Discussion & Customer Service Window Tour” is one of the ef for ts linked to “Awareness.” In this training, employees, who do not usually communicate directly with consumers, participate in a group discussion on consumer satisfaction and visit the Customer Service Window. The aim of the Group Discussion & Customer Service Window Tour is for employees to get first-hand experience working at our call center and to learn about consumers’ points of view. In short, the aim is “to know more about our consumers.” In the group discussion, participants introduce their jobs and how they are linked to consumers. They also share their findings from the Customer Ser vice Window Tour and discuss consumers’ comments. T hrough this training, we want each employee to think proactively about “Customer Satisfaction,” and we would like to further promote a corporate culture of working together, as a whole company, to solve problems. 09 Total number of employees who participated in the Group Discussion & Customer Service Window Tour 148 300 Fiscal year 2010 Fiscal year 2011 (target number) employees employees Employee Bonds Will Sustain Our Future All efforts in this project are aimed at encouraging direct communication between employees. The use of the intranet is one form of communication within the company, but talking to people in person helps us share our values more deeply and better understand what is important to other departments. It was a big challenge for me to be a leader of this project, but I have gained more friends than I had made in the past 20 years. I also realized that there are many extremely talented people around me, which made me stop feeling anxious about new tasks. Because it is difficult to show the effects of this project in quantitative data, and because big changes do not happen in a short period of time, some people were somewhat negative at the beginning. However, this negativity seemed to disappear. After all, I believe if a person is inspired, his or her attitude will change. I now strongly believe that even if we suffer setbacks, we will be able to overcome anything if we employees stick together and continue striving to make more people smile. As a Lecturer of the Delivery Seminar Participating in the Group Discussion & Customer Service Window Tour Everyone Sees Things Differently Reaffirming Our Connection With Consumers As a lecturer of the Delivery Seminar on “green procurement,” which is the basis of creating products free of harmful substances, I recognized the difficulties of communicating something to people whose specialized fields are dif ferent from mine. Also, the questionnaires returned by the attendees after the seminars taught me that the points that lecturers think they have to explain in detail sometimes differ from the points attendees wish to learn about in detail. In addition, I believe this lecture provided a good opportunity for attendees to understand the importance and difficulty of creating safe products that are free of harmful substances. I would like to continue to strive to better understand and promote green procurement while keeping in mind that people’s perspectives differ depending on their standpoints. Participating in the tour was a great way to learn more about our consumers’ needs; it also brought Nintendo employees closer. I also learned about different perspectives and ways of thinking. The most impressive thing at the Group Discussion was the question, “When we say 'Customer Satisfaction,’ who is the 'customer’?” It is very difficult to answer all of the requests and inquiries from consumers; however, this question helped me to reconfirm the link between myself and consumers, and I realized how important it is to put top priority on “how it should be for consumers,” rather than on each department’s position or convenience. Specifications Group Product Evaluation & Engineering Department Uji Plant, Nintendo Co., Ltd. Assistant Manager, Quality Control Group EAD Administration Department Nintendo Co., Ltd. Obiko Sasaki Yasuhiro Kawaguchi My Experience as a Customer Service Tour Guide Participating in the Group Discussion & Customer Service Window Tour Communicating With Employees in Other Departments Directly Experiencing Consumers’ Thoughts To put smiles on the faces of consumers, we have to respond to them with heartfelt smiles, and with pride and trust in our products. As a person in charge of the telephone window, I regarded this Customer Service Window Tour as a chance to d e li ver o ur th o u ght s an d i d eas to p e o p l e f ro m oth er departments. Based on this understanding, I cooperated with other staf f memb ers to ensure that the tour would b e beneficial. After it was over, one of the attendees wrote to me, thanking me for my “kind and gentle correspondence with consumers.” That made me feel great! T his tour insp ire d m e to ans wer phone calls from consumers even more enthusiastically, as a company representative. In my usual role, I do not get the chance to hear requests or inquiries directly from our consumers, so the tour was an eye-opening experience for me. Talking directly with our consumers made me realize how challenging it is to describe how to use our products. In addition, my gratitude grew for those consumers who keep playing with our products, even af ter having them repaired. I am currently developing a network service. I would like to keep consumers’ perspectives in mind and seek to deploy a service that is easy to understand, so that as many consumers as possible can have a stress-free service experience. Customer Support Group Repair & Maintenance Center Nintendo Co., Ltd. Network Business Group Network Business Department Nintendo Co., Ltd. Keiko Kimura Yoko Ota 10 Bringing the Joy of Drawing to a Large Audience Global Report ~ Drawing Lessons With Art Academy ~ 2 “How can I draw a picture well?” We have all asked ourselves this question at least once before. Nintendo would like to help the people we serve have fun and enjoy more fulfilling lives. One of our proposals for this is Art Academy, which we launched The Art Academy software teaches drawing techniques while a user draws pictures with the stylus. (European version) globally in fiscal year 2010, for the Nintendo DS. Spain Portugal Italy Enjoy Art More! Learning How to Draw at a Museum Throughout Spain, we have been holding a workshop called “Art Academy Tour.” In this workshop, famous artists from each region deliver a lecture about the development of painting techniques, and then ask participants to draw pictures using Art Academy. The participants said, “Now that I know how easy it is to start painting, I am really interested in it!” Also, our Portugal branch began a workshop using Art Academy in cooperation with the Berardo Collection Museum, which is known for its international modern art collection. Anyone can take part in this workshop and learn how to draw in the museum. We are very happy that we could start a workshop that enables participants to enjoy art, while using new technologies, in a museum thematically focused on the development of art in the 20th century. Since we wanted to have as many people as possible know about Art Academy, it was a great pleasure for us to partner with Pinacoteca di Brera, a museum in Milan famous for housing some of the finest collections of Italian paintings. Pinacoteca di Brera uses Art Academy as a tool in its art course for children. After an art expert teaches participants about the use of shadow and color, using a famous painting as a model, the participants are asked to practice the same techniques with Art Academy. The children who participated were fully absorbed in the new experience of learning art through a gaming system. Inspired by the efforts of Pinacoteca di Brera, museums in other regions also have expressed interest in the use of Art Academy at their facilities. Nicolas Wegnez Francesca Prandoni Marketing Director, Marketing Department Nintendo Ibérica, S.A. (Spain) PR Manager, Marketing Department Drawing a picture while listening to an artist’ s explanation (Spain) An art class taking place in front of some famous paintings Australia Netherlands A Chance to Discover Hidden Talents A Wonderful Time With Mika Popov Art Academy has been used as an instructional tool in an art class for third-grade students at an elementary school in Zeeland, Netherlands. We proposed that the school try Art Academy, and they agreed. We provided the Nintendo DSi XL and Art Academy for use as educational materials, and sent to the school three instructors specialized in art to help with this project. Even students who did not like art enjoyed Art Academy more than we had expected, and exclamations of, “I want to draw more pictures!” could be heard everywhere. This project also helped teachers spot students’ hidden talents. In November 2010, we held an event during which participants could learn drawing techniques from an accomplished artist, Mr. Mika Popov, using Art Academy. One hundred participants were given the challenge of drawing their own version of the Sydney Opera House; at the end of this event, the winning entries received prizes. Mr. Popov, the grandson of the architect who designed the Sydney Opera House, told anecdotes about this famous landmark while teaching participants how to draw. It was very impressive for us to see the participants having such fun while learning to draw, and we believe it was a wonderful experience for everyone involved. Heather Murphy Bianca Stirnweis-van Dort PR Manager, Marketing Department PR & Events Manager, Marketing Department Nintendo Benelux B.V. (Netherlands) 11 Nintendo of Europe GmbH, Italy Branch A student drawing with the help of an instructor A family enjoys drawing with Mr. Popov Nintendo Australia Pty. Ltd. 12 Germany Global Report Global Report 3 4 A Workplace Where Employees are Encouraged to Perform to Their Full Potential ~ The Story of a Female Senior Manager ~ America Imagining the Smiles of Future Generations ~ The New Eco-Friendly Headquarters ~ In October 2010, Nintendo of America’s new headquarters, completed in April 2010 in Redmond, Washington, received LEED*1 Gold certification from the U.S. Green Building Council. Achieving a good work-life balance is a challenge for both companies and employees. It is especially difficult for employees who have children or who cannot work for extended periods due to personal reasons. Providing a workplace where all employees can perform to their full potential while maintaining work-life balance benefits both the company and its Reduction of the Data Center’s Power Consumption employees. Although there are many hurdles, Nintendo is cooperating with employees as much as possible. This article The data center, which houses the corporate servers, consumes 35% of the power used in the building. By reducing data center power consumption, we significantly reduce the building’s overall building power consumption and lower our CO 2 emissions. profiles the career of Ms. Sylvia Graf-Schumer: a senior manager and a mother. Developing Together as a Team In my case, I was able to continue working because I could adapt my tasks to my flexible working model, with the full support of my boss and colleagues. However, the time I have for face -to -face meetings is limited, so I always have to be well-prepared and mindful of my business priorities. I have delegated some of my tasks to my very capable team members, all of whom are reliable and able to work independently in their respective areas of responsibility. I believe that this strong sense of responsibility is a key part of Nintendo’s corporate culture. Sylvia Graf-Schumer with her team Changing Perceptions Toward Working Women In the 1990s, the public perception of working mothers began to change in Germany. Before that, it was believed that the “ideal mother” should stay at home; however, society began to realize that women with children were important human resources. I started at Nintendo of Europe in 1998, when this change in perception was gradually growing in society. With Company Support In 2004, when interest in the proactive employment of women was quite high, I was promoted to the position of Senior Manager. The following year, I became pregnant and had my baby boy in 2006. Since I wanted to pursue my career while raising my child, I asked for more flexible working conditions, which the company granted. I was the first manager in my department to request this. The company’s support in this regard enabled me to balance my work and parenting responsibilities. As a result, I have become more focused and dedicated to my job. Being a Good Role Model There are still relatively few women working in senior managerial positions in Germany, and even fewer who have young children. A large number of women who have children give up their careers because they have no other choice. Despite this situation, I am very happy that I can balance my career with my personal life and my family, and I am grateful for the kind support Nintendo has provided me. Several women in my department are working mothers, and they are motivated to work hard because they want to reciprocate the company’s support with their achievements. We support each other, and I strive to establish a supportive working environment. In that way, I try to serve as a good role model for others, which helps put a smile on everyone’s face. Typical data centers use up to half of their power to cool the equipment; however, in this new building, by using outside air for cooling while exhausting the hot air from the room with special vents, we have succeeded in reducing the energy used for cooling by up to 90%. We can see the “Living Roof” from our meeting space A Building in Harmony With Its Environment When Nintendo of America set out to build a new headquarters, we wanted to implement as many environmentally friendly technologies as we could. We wanted to construct a new headquarters that would reduce our environmental impact and provide a healthy atmosphere for employees. During the proposal process for the building, Nintendo executives decided that th e b uilding sh ould b e design e d to achieve LEED certification. Upon completion, Nintendo of America’s new headquar ters was awarded LEED Gold status, placing it among the nation’s top-rated buildings for sustainability and environmental friendliness. Examples of environmental technologies • Use of drip-delivery irrigation minimizes irrigation water use by 57%. • Low-flow plumbing systems reduce water consumption by 34.5%. • Automatic dimming of indoor lights based on the available amount of external natural lighting lowers electricity consumption. Encouraging Eco-Friendliness Sustainability is something we really have focused on in recent years, and working in a building that places such an emphasis on conservation undoubtedly has a positive effect on employees. Every day, hundreds of employees use biodegradable eating utensils and wash their hands at sinks made, in part, from recycled glass. Furthermore, the Nintendo of America Green Team promotes environmental efforts throughout the company. For ins tance, the team sp onsors semiannual employe e electronics recycling events that let employees bring electronics from home to be repurposed through a vocational program that supports the technical acquisition of electronics repair skills for low-income families, or to be donated to a local nonprofit organization for use by disaster victims. In fiscal year 2010, Nintendo employees turned in more than 10,000 pounds (4.5 tons) of electronics to be repurposed, recycled or reused. We will continue to work proactively to raise our employees’ environmental awareness and environmental conservation. *1 LEED - Leadership in Energy and Environmental Design LEED is a system that comprehensively evaluates the environmental quality of a building’s design, construction, operations and maintenance solutions. Eco-Friendliness Brings Comfort to Employees Sylvia Graf-Schumer Senior Manager, European Publisher Business Nintendo of Europe GmbH (Germany) In constructing the new building, not only did we employ environmental technologies, we also incorporated several renewable or recycled materials. For example, the floors and wall paneling were fashioned of bamboo, a renewable material known for its rapid grow th rate. The “Living Roof ” was especially well-received because it supports energy efficiency and provides an open-air garden that employees and guests can enjoy. Sara Hatfield Assistant Project Manager Real Estate and Special Projects Nintendo of America Inc. 13 14 Everyone Nintendo Touches Related pages PP.17-24 Consumers We strive to put smiles on the faces of everyone we touch, whether they are directly or indirectly involved with Nintendo, now and in the future. 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, then commit ourselves to creating the highest-quality products. Communication Channels • Customer Service Window • Nintendo Repair & Maintenance Center • Retailers • Provide Information via Nintendo’ s Websites • Webpage for Reporting Counterfeit Products Numbers Linked to Smiles Cumulative Hardware Unit Sales Wii Related pages PP.25-28 Business Partners 2008 2010 Communication Channels • New Product Information Sessions • CSR Procurement 2008 15 companies 29 companies 2010 2008 42 companies Nintendo conducts regular on-site inspections at the facilities of its principal production partners. • Development Partners Nintendo’s products include the innovations and technologies of many of our development partners. We strive to create better products in collaboration with those development partners. Employees Nintendo employs the fabless production model, a system that outsources material supply and product manufacture. Together with our production partners, we work to continuously improve our production processes. 101.78 million units Nintendo is committed to creating and maintaining an environment where all employees can show and develop their strengths while realizing their maximum potential. 2009 2008 Nintendo seeks to promote the growth of the gaming industry together with publishers who develop and sell their own branded software for Nintendo’s game systems. 2010 4,130 employees 2009 4,425 employees 4,712 employees Nintendo operates worldwide to bring smiles to as many people as possible. Communication Channels • Green Procurement • CSR Report 4.2 Nintendo strives to maximize its corporate value and build positive, satisfying and trusting relationships with our investors and shareholders through returns on profit, and the timely and appropriate disclosure of impor tant information to create long-term partnerships. Communication Channels • General Meeting of Shareholders • Financial Results Briefing • Corporate Management Policy Briefing • Disclosure of Information Available via Nintendo Website • Disclosure of Information Available via Annual Report Numbers Linked to Smiles Cumulative Software Unit Sales Wii 2008 353.02 million units 2009 3.9 t-CO2 per employee 544.83 million units 9.43 2010 Nintendo 3DS 2008 million units 566.92 million units 2009 Total number of software units for the Wii, Nintendo 3DS and Nintendo DS sold by Nintendo all over the world, excluding the number of downloaded software units. 718.50 million units 2010 Related pages PP.41-44 Contributions 716.09 million units 839.48 million units Nintendo is committed to being a responsible corporate citizen that is recognized for unique contributions to society. Communication Channel • Community Contribution Programs in Various Countries CO2 Emissions per Employee 2009 146.42 million units Shareholders and Investors Nintendo DS One of Nintendo’s goals is to put smiles on the faces of children today and in the future. To hand down a better environment to future generations, we are committed to maximizing environmental protection in our product design processes and in our business activities around the world. t-CO2 per employee 2010 Related pages PP.45-48 2010 2008 128.89 million units Communication Channels • President’s Address • Health Consultation Room • Periodic Consultations • Health and Safety Committee • Sharing Information via the Intranet • Publishers 3.9 t-CO2 2010 per employee To bring smiles to the next generation, Nintendo is committed to environmental conservation. 15 3.61 Nintendo strives to provide products that can be enjoyed by all people, regardless of gender, age, gaming experience or skill level. Number of Employees (Consolidated) To put smiles on the faces of as many consumers in the world as possible, Nintendo is committed to building better cooperative relationships with our sales partners, including wholesalers and retailers. Numbers Linked to Smiles 86.01 million units Numbers Linked to Smiles • Sales Partners Future Generations 2010 Related pages P.29-34 • Production Partners (Suppliers and Production Factories) Related pages PP.35-40 70.93 million units million units Nintendo DS Cumulative On-Site Inspections 2009 2009 Nintendo 3DS Nintendo is continually working to build better relationships with our business partners. Numbers Linked to Smiles 50.39 million units Numbers Linked to Smiles 2008 199 participants Cumulative Game Seminar Graduates 2009 234 participants 2010 269 participants To contribute both to the future of the gaming industry and to the development of the gaming culture, Nintendo uses its own resources to hold the Nintendo Game Seminar. 16 Bringing Smiles to Our Consumers To provide all of our consumers with safe and enjoyable gaming experiences, we strive to create the highest-quality products while listening closely to our consumers’ comments and concerns. Achieving Quality and Safety The Development Stage At Nintendo, we emphasize safety and reliability in manufacturing products of the highest quality so that consumers of all ages can enjoy them with peace of mind. Product Safety Principle Quality Principle Safety and reliability are key factors in creating high-quality products. Provide high-quality products that meet consumers’ expectations. Establish Strict Safety Standards *1 To ensure that our products are safe for everyone, especially young children, Nintendo has established its own design safety standards for product development. In addition to complying with the legal requirements for product safety that apply generally to consumer electronic products, we respect various other safety standards, such as the U.S. Consumer Product Safety Improvement Act of 2008*1, the European Toy Safety Directive*2 and the Toy Safety Standards of Japan*3. A U. S . re gulatio n that res t r ic t s th e us e o f phthalate compounds in products as well as the use of various materials, such as lead, on the surface of any product. *2 Framework for Product Safety Assurance Nintendo Co., Ltd. established its Product Safety Committee, under direct supervision of the Executive Management Committee, to ensure employees’ understanding of the Product Safety Principle and the Quality Principle. Through effective management, maintenance and improvement of Nintendo’s Product Safety Assurance System, the Product Safety Committee ensures the safe manufacture and provision of our products at every stage, from planning, development and production, all the way to after-sales service. System to Ensure Product Safety Consumer Product Safety Improvement Act of 2008 *3 Toy Safety Directive A European Union (EU) directive that regulates products designed or clearly intended for use in play by children under 14 years of age. Such products must meet strict safety requirements related to physical, mechanical, f lammable, chemical and electrical properties. Toy Safety Standards of Japan Safety standards established by the Japan Toy Association that cover mechanical and chemical safety, and flammability. The Design Safety Review Committee consists of employees from several divisions, including Engineering, Quality Assurance and Legal Affairs, to screen product designs for safety, particularly during the design and development stages. The Committee reviews the reports and prototypes created by the product development departments to assess the safety of each product from a wide range of perspectives. During the prototype stage, mechanical and physical evaluations include drop tests, temperature resistance tests, electromagnetic wave evaluations, flammability tests and tests for harmful chemical substances that might be contained in or eluted from the product (see P. 37). To perform these tests, we use a full range of testing devices at our facilities to ensure product compliance. We also require external agencies to certify product compliance as needed. Fiscal year 2010 saw no serious accidents or concerns related to product design. Design Safety Review Committee - Review Items 1 2 Product Safety Assurance System Planning Procurement Production Shipment After-Sales Confirm that products meet the design safety standards. (P. 18) Ve r i f y t h a t p r o d u c t parts satisfy Nintendo’s criteria. (P. 36) E s tablish sound safet y validation methods for production partners. (P. 18) Confirm that products m e et th e sp e ci f ie d safety standards. (P. 18) Ensure that end-user problems and feedback are promptly communicated to the relevant departments. (PP. 23 – 24) Safety specifications Confirm that products comply with additional s afet y sp e cifications if applicable 3 Design safety standards Confirm that internal design safety standards are observed The Production Stage We require our production partners (see P. 25) to confirm that their products comply with Nintendo Co., Ltd. specifications by using prescribed testing methods to check their assembly processes. 4 Labeling standards Confirm the appropriate display of all required labels and notices The Shipment Stage 5 FTA, FMEA Conf irm completion of F TA* 4 and FMEA*5 safety evaluations Assembled products also must pass a finished-goods test, after which they are inspected a final time before entering the market. *4 FTA (Fault Tree Analysis) A system that analyzes the root causes of safety hazards, such as fire and injur y, to develop appropriate steps for their prevention. *5 FMEA (Failure Mode and Effect Analysis) A method of improving product safet y and reliability through analysis of how each failure mode would affect the product. Executive Management Committee Product Safety Committee Laws/Regulations Confirm that products comply with all applicable legal regulations Feedback 17 18 Putting Safety First Stereoscopic 3D Display Considerations The Nintendo 3DS system, which went on sale in Japan in February of 2011, is a gaming device that enables users to enjoy 3D images without the use of special glasses. The system creates 3D visuals by projecting different images to the left and right eyes. However, perception of the 3D visuals can differ significantly from person to person, depending on such variables as the distance at which the Nintendo 3DS is held and the distance between an individual’s eyes. These factors can affect how easy and comfortable it is to view the 3D visuals. For this reason, Nintendo has incorporated the 3D Depth Slider into the Nintendo 3DS system. This slider enables the player to adjust the strength of the 3D visuals. Lowering the 3D Depth Slider gradually diminishes the 3D effect of the visuals until, when the slider is all the way down, users can enjoy playing the game in 2D. This feature enables users to play any game at the level they find most appropriate. In addition, some studies indicate that the vision of children aged six and under can still be developing, and that allowing those children to see 3D images by providing different images to their left and right eyes might affect their visual development. So that all consumers can enjoy the Nintendo 3DS with peace of mind, Nintendo not only makes it possible for all Nintendo 3DS games to be played in 2D display mode, we also enable parents and guardians to restrict the display of 3D images on the Nintendo 3DS system using a Parental Controls feature. We are also working hard to ensure that consumers are aware of this information by displaying it in prominent locations, such as on the packaging, so that before purchasing a Nintendo 3DS, consumers can make informed choices as to whether their children should experience 3D images. Educating Employees About Product Safety To ensure that all Nintendo products meet the highest standards of safety and quality, it is essential to educate all Nintendo employees about product safety. To make sure our employees are well aware of the critical importance of ensuring that our products are safe, Nintendo Co., Ltd. provides product safety training where necessary. In fiscal year 2010, Nintendo Co., Ltd. provided product safety training to 134 new recruits and to 244 employees from the development and manufacturing departments. As part of our employee education program, we distribute internal guidelines in order to share accumulated expertise in design and production. We also periodically revise the guidelines to ensure that they are used effectively. Since May 1993, we have also issued the “Quality Assurance News,” a periodic newsletter that provides all employees with additional information and updates on product safety issues. 3D Depth Slider When the 3D Depth Slider is all the way down, the 3D visuals become 2D. Nintendo believes it is very important to screen out inappropriate content and ensure safety when developing software and services so that consumers of all ages can enjoy Nintendo products with peace of mind. 3D Screen This screen can show 3D visuals. Ensuring Software Safety When planning the launch of exciting new game controls that enable users to use their entire bodies instead of just their hands, as well as when planning leading-edge online games and content, we create and distribute comprehensive software development guidelines, which are revised as needed. To promote the safety and security of our consumers, these guidelines also highlight key points and emphasize continuous process improvement. We apply the same thoroughness to our sof tware testing, using a company-wide system applied from the earliest stages of product development. Information on Appropriate Target Age Range *1 Before playing a game, one has no way of knowing what kind of content the game includes. Therefore, Nintendo provides ratings information according to the ratings system*1 used in each country or region. Ratings System Ratings organizations review game content and set an appropriate age rating for each game. In Japan, the CERO (Computer Enter tainment R a t i n g O r g a n i z a t i o n) a g e - r a t i n g m a r k i s displayed. WEB For more information on the ratings systems used in each region where our products are sold, visit Nintendo Co., Ltd.’s CSR Q&A: Consumer Relations. Nintendo Co., Ltd. Communicating Age Rating Information With Colored Packages Starting in January 2010, Nintendo Co., Ltd. changed the color of the packages for Wii software sold in Japan so that consumers could more easily notice the age rating. Now, Wii games rated for age 15 and over are black, while other games remain white. This method is used for Nintendo 3DS software packages as well. Delivering Information Proactively for Consumers’ Peace of Mind Nintendo Co., Ltd. White-based package Black-based package Yoshitaka Nakano Mechanical Design Group, Research & Engineering Department In researching individual differences in 3D perception, we hold extensive internal discussions to determine the best way to deliver to consumers the information we gain from the research. We currently provide necessary information in many locations, such as on our websites and on product packaging, to ensure that consumers are well-informed about the safe use of the Nintendo 3DS system. For us as developers, it is particularly important to ensure that consumers have access to accurate information they can use to comfortably enjoy the 3D functionality of the Nintendo 3DS system. 19 * Nintendo DS software packages do not use color to categorize each age rating, but display the applicable CERO age-rating marks clearly on the package labels. * The marks do not correlate to game difficulty level. 20 Making Things Easier to Understand, Easier to Use A Healthy Environment for Children *1 Parental Controls are not available for Nintendo DS software. Nintendo has integrated Parental Controls into the Wii, Nintendo DSi, Nintendo DSi XL and Nintendo 3DS*1. This feature enables parents and guardians to restrict and limit their children’s access to high age-rating software or online content. Making Things Intuitive Quick and easy navigation of a new game world is one of Nintendo’s highest priorities. With this in mind, we try to make gameplay as intuitive as possible, thereby minimizing the need for users to consult the instructions to figure out how to play a game. Know More About What Your Children Play Nintendo feels that providing ways for parents and guardians to become more involved in their children’s gaming experiences encourages better communication. For this reason, we designed the Wii and the Nintendo 3DS to automatically record which game titles are played and for how long each day so that parents and guardians can be better informed about their children’s gaming activities. Usability for Everyone We work hard to design games that can be enjoyed by as many people as possible, regardless of age, gender or level of gaming experience. We also actively solicit consumer feedback and seek ways of incorporating that feedback in our product development whenever possible. One example of our efforts at making things easier to use: the edge of the upper cover of the Nintendo 3DS is curved to make it easier to open. As a result, the upper cover can be opened from any point along its edge. Eliminating Inappropriate Content in Communication Features Some software and applications are designed to enable user-generated content (UGC), such as user-generated images, text and music, which can be shared with other users. Such software encourages expansive communications by enabling consumers to express themselves more freely. However, in rare instances, malicious individuals could create an unpleasant situation for other consumers by distributing inappropriate content. To minimize inadvertent user exposure to inappropriate content, we are working together with our development partners to implement safeguards to exclude inappropriate content when using our systems. The use of UGC has advanced even further on the Nintendo 3DS system. As a result, we have worked even harder to prevent unintentional exposure to inappropriate content on the Nintendo 3DS system while, at the same time, improving strategies to protect individual privacy. For example, you can attach a message to a Mii*2 in the Nintendo 3DS On the Nintendo 3DS, the title of the game and the time played are automatically recorded in the Activity Log for each day. *2 system; then exchange that message in StreetPass* 3 , but safeguards have been implemented to make it difficult to include vulgar words or personal information, either in the name of the Mii or in the message. Mii A character whose face can be designed to res emb l e yo ur s e l f or someone you want t o charac terize. Mii characters can be used on the Wii and the Nintendo 3DS. Since the edge of the upper cover of the Nintendo 3DS is curved, the cover can be opened from any point along its edge. Creating Operations Manuals Everyone Can Understand So that all of our consumers can easily understand our operations manuals and package descriptions, we make every attempt to use simple, everyday language and terminology wherever possible. We also use multiple illustrations to make it easier for young children to understand our manuals. Aiming for User-Friendly Products *3 21 At Nintendo, we work hard to develop products and services that appeal to the widest range of people, including males and females of all ages, regardless of their level of gaming experience. StreetPass When the StreetPass feature is turned on, it enables the exchange of game data between two Nintendo 3DS systems as their owners pass one another. Nintendo Co., Ltd. Yuji Konishi Design Group, Research & Engineering Department In order to make Nintendo products enjoyable for every consumer, we always work to provide products that are even more user-friendly. For example, we have adopted a wireless switch for the Nintendo 3DS system so that consumers can easily turn off the wireless communication function when they are in locations that prohibit wireless communication such as hospitals or priority seating on trains. In addition, we use the easy-to-read Universal Design font in our operations manuals. 22 Responding Effectively to Consumers We care a great deal about what consumers think of our games and have various consumer service channels in place, including telephone and online contact points, to respond to the wide range of inquiries and requests we receive from our diverse consumer demographic. Nintendo has established a system that enables the relevant departments within the company to share comments we receive from our consumers. Customer Service Window Repairs and Maintenance A System for Responding to Consumers’ Comments (Nintendo Co., Ltd.) The Customer Service Window in Japan provides information and advice on issues such as product specifications and usage, as well as various campaigns. In addition, we established the Nintendo Technical Support Center to respond to consumer questions about various network services. We have also set up similar customer service centers in locations around the world where we provide support in the local languages. Consumers’ Comments Inquiries Suggestions Requests Complaints Touching Consumers’ Hearts Through Repairs Nintendo Co., Ltd. Telephone / E-mail / Letters Nobuyuki Suenaga Customer Support Group, Repair & Maintenance Center Our System for Sharing Consumer Feedback Nintendo receives feedback from numerous consumers via telephone, Internet and mail. To make the best use of this feedback when developing new products and improving services, we have established a system for sharing consumer feedback among relevant departments within the company. To further broaden our involvement in sharing consumer feedback, in September 2009, Nintendo Co., Ltd. launched the Smile-Spreading Project and began various activities (see PP. 8 – 10). In Japan, the Nintendo Repair & Maintenance Center handles product repairs. This Center provides extensive repair services so that our consumers can enjoy our products for as long as possible. From the aspect of environmental conservation, we also believe that product repair is a vitally important service that helps reduce product waste. Our overseas subsidiaries also have implemented their own repair systems to respond promptly to local repair requests. Service Sections Customer Service Window Nintendo Technical Support Center Nintendo Repair & Maintenance Center When products are sent to Nintendo for repair, we try not only to fix them, but also to return them in even better condition, by cleaning the insides of the products. One memorable instance involved a software repair request for a console that is no longer sold. We informed the consumer by phone about the possible reason for the defect, and then repaired the product. After that, we received a warm-hearted thank you card from the consumer. I was so glad to realize anew that our products are treasured for such a long time, and that I am engaged in a truly satisfying job. Sharing and Handling of Information Sharing Information About Safety and Software Quality When we are informed of quality issues, we immediately confirm the facts and then quickly distribute accurate information to consumers. We provide necessary information about product safety and information about defects or bugs on the Nintendo website as well as at retail locations. Development General Affairs Manufacturing Corporate Communications Analysis/ Deliberation Marketing Countermeasure Discussion of Vital Issues CS Meeting* (Chair: President) Health & Safety Information For the Nintendo 3DS s ystem, we have included a new application called Health & Safety Information. This application displays important safety precautions found in the operations manual, enabling users to review these precautions at any time on the Nintendo 3DS system, even when they do not have the operations manual with them. 23 Incorporate into new products Improve services Improve quality * Customer Satisfaction Meeting Health & Safety Information Overview of Fiscal Year 2010 and Future Issues Nintendo strives to deliver safe products to all global consumers aged 5 to 95, irrespective of their living conditions and customs. To achieve this goal, we not only comply with each countr y’s safety regulations, we also verif y and confirm observance of these regulations at every stage of production, including planning, development, design and manufacture, in order to uphold the strict standards of credibility, safety and environmental standards that Nintendo has established based on our many years of experience. Furthermore, we always try to ensure that our products, which are new and innovative, are sufficiently safe from the consumer’s perspective. We recognize that, in today’s world, achieving our safety goals requires great skill from both Nintendo and our business partners, and we continue to work together consistently to improve our techniques. Satoshi Nishiumi General Manager Product Evaluation & Engineering Department Uji Plant, Nintendo Co., Ltd. 24 Working With Our Business Partners We build good relationships with our production, development and sales partners, and work hard to build partnerships that provide better products for consumers. Working With Our Production Partners Nintendo employs a fabless production model, meaning that we do not own the facilities that manufacture our products. We work with production partners*1 around the world to improve the quality, safety and efficiency of the entire production process. By sharing our ideas and best practices with our production partners, we strengthen our working relationships with them as we aim to bring smiles to the faces of the consumers who ultimately use our products. We encourage our production partners to improve their technical strengths and maintain healthy corporate cultures within their organizations, which in turn helps us to achieve our CSR goals. *1 Production Partners The manufacturing factories to which Nintendo out sources assembly and the suppliers of component parts and materials. CSR Procurement Guidelines With emphasis on building trust and achieving mutual understanding, Nintendo Co., Ltd. works closely with our production partners to implement and refine good business practices in their procurement processes. Additionally, in April 2011, we revised the Nintendo CSR Procurement Guidelines, originally issued in July 2008, to provide a more specific guide for our production partners regarding the adoption of socially responsible procurement practices. The Nintendo CSR Procurement Guidelines are distributed to each of the nearly 300 production partners with whom we work closely to facilitate and encourage compliance in every phase of production. Production Partner Inspections One of the important ways in which Nintendo Co., Ltd. works with production partners to ensure CSR compliance is to ask them periodically to submit the Business Partner Status Survey, a report that affords us an overview of their current situation. In addition, we conduct on-site inspections to help our partners reach and maintain the standards stipulated in the Nintendo CSR Procurement Guidelines. In fiscal year 2010, we carried out on-site inspections at 13 major production partners (including 5 new partners) and worked with them to initiate any improvements deemed necessary. While the main purpose of these inspections is to give us a first-hand look at on-site conditions, they also give us an opportunity to communicate the Nintendo CSR procurement concept to our production partners. We will continue to carry out such inspections while promoting the fulfillment of our objectives. Procedure for On-Site Inspections • Inter view administrators and supervisors • Inspect records of overtime work, holidays and employment agreements • Confirm the process and inspect the site by touring the facility • Hold discussions and debriefings with facility management regarding o bs e r v ati o ns a n d p ro du c ti o n operations • Check worker morale and satisfaction On-Site Inspection Example On-Site Inspection Flow Nintendo CSR Procurement Guidelines On-site inspection example Conduct on-site inspection 1. Pr o m ote comp liance an d respect for human rights • Check operational status of both internal and working guidelines • Check labor unions and worker representation • Check child labor protection guidelines and operational status • Check wage structure •Check whether probation period rules for new workers are being followed Confirm actual on-site conditions pursuant to Nintendo CSR Procurement Guidelines 2. Ensure occupational health and safety • Check whether required certified personnel are present • Check records of facility patrols by certified personnel • Check status of employee medical checkups • Confirm facility conditions 3. Practice of corporate ethics and fair trade • Confirm implementation of audits for internal controls 4. Environmental conservation • Confirm implementation of environmental management system 5. Product safety assurances and quality guarantees • Confirm implementation of quality management system 6. Thoroughness of information management •Confirm implementation of document management policies and controls •Confirm implementation of rules concerning use of computers 7. P o l i c i e s a n d c o n t r o l s f o r emergency response planning • Confirm presence of adequate fire extinguishers and that fire drills are being carried out • Evaluate country risk 8. Contributions to society • Review status of company’ s community support activities Provide feedback Provide production partner with summary of results and reguired improvements Follow-up Conduct follow-up survey to track improvement progress Production Partner’s Comments Communication at Production Level Enhances CSR Activities Past Record of On-Site Inspections FY2007 8 companies (8 companies) FY2008 7 companies (5 companies) FY2009 14 companies (7 companies) Wen Yingchung FY2010 13 companies (5 companies) Vice President, Factory General Manager CNP Department, CCPBG Division HONGFUJIN PRECISION ELECTRONS (YANTAI) CO., LTD. We set up a special division to promote CSR awareness among the workers, and now the entire company is working hard to enhance our CSR activities. We are currently focusing on educating the workers about quality and refining work procedures. In addition, we are also working to build a pleasant working environment by enriching our benefit programs, such as by rewarding long-term workers, and by working to improve the convenience of commuting. Not only does Nintendo conduct written sur veys, it also tries to understand our actual situation by communicating with workers to get a feel for the atmosphere at the production level. We believe that a strong cooperative relationship has been created between us and Nintendo. We would like to continue promoting our CSR activities with Nintendo. * The parenthetic numbers refer to companies that were newly inspected. 25 26 Working With Our Development Partners Nintendo develops game systems and software, both independently and in collaboration with a wide range of development partners. The key essentials in designing attractive products with our development partners are sharing values regarding collaborative product development, mutual respect for the roles and abilities of those involved, and a strong sense of appreciation for the contribution of each individual in the process. Cooperation With On-Site Sales Promotion Development Partner’s Comments Conveying the Fascination of 3D Images Safely and Without Glasses Akira Imai Department General Manager, Display Device Development Group Module Technology Development Department Advanced Technology Development Center Sharp Corporation It is almost 10 years since we first introduced our 3D screen to Nintendo. Since then, we have developed several prototypes together, and finally succeeded in completing the product for the Nintendo 3DS. We have gone through various trials and errors during the joint development, but we have always shared the two important points: “without glasses” and “safety.” The joy of 3D can be achieved only when software and hardware are harmonized. We believe Nintendo is the best partner to make people around the world fascinated by the new 3D images. We are committed to evolving 3D screens without veering away from the two key points. Nintendo Co., Ltd.’s sales staff supports individual retailers by providing promotional tools and product display concepts. Since the February 2011 launch of the Nintendo 3DS system, we have worked with retailers to provide three types of in-store fixtures where consumers can experience the 3D images on the Nintendo 3DS system, so they can fully understand and appreciate its appeal. Consumers can enjoy the Nintendo 3DS on in-store demo units, which we provided in about 50 retail stores. The Nintendo 3DS product demo & display shelves, installed at about 300 retail stores, enable consumers to enjoy playing the Nintendo 3DS and to receive information on such topics as the latest Nintendo 3DS software. Furthermore, we have began replacing the Nintendo DS station, which was available in more than 1,000 retail stores, with a new fixture, called Nintendo 3DS Station, in about 1,500 retail stores*1. The Nintendo 3DS Station enables consumers to enjoy many kinds of content Nintendo 3DS in-store demo unit & display wall Nintendo 3DS Station (content delivery system) not only for the Nintendo 3DS but also for the Nintendo DS. Consumers can watch TV commercials and trailers on the latest software, and can use various network services. Nintendo of Canada Ltd. Actively Supporting Retail Store Staff to Provide Even Better Service In fiscal year 2009, to help explain products to both retail store staff and consumers, certain Nintendo of Canada staff members worked as assistants alongside retail store staff during the Christmas holidays. This initiative prompted favorable reviews from both consumers and store staff. Working With Our Sales Partners To expand our consumer base, we must cooperate with our sales partners in effectively conveying the appeal of our products to consumers around the world. Nintendo continues to build relationships based on trust and encourages open communication with its sales partners. Nintendo 3DS product demo & display shelves *1 For more information about the Nintendo 3DS network services, visit Nintendo Co., Ltd.’s website. New Product Information Sessions For newly released products, Nintendo Co., Ltd. regularly holds new product information sessions during which our sales staff directly explains the products’ special features to our sales partners. During such sessions, our sales partners gain knowledge and experience by playing with each product, which helps them to understand its appeal and aids them in selling the products with confidence. These information sessions also have become an important way for us to gather information about consumer reaction and feedback from the retail store staff. Many sales partners attended these sessions in fiscal year 2010, and it has proven to be a valuable opportunity for a candid exchange of opinions. Our overseas subsidiaries also are creating opportunities to share the appeal of new products with their respective sales partners. For example, to help sales partners better understand the appeal of Nintendo products, Nintendo Australia has created a space at its headquarters where partners can come freely to try new products at any time. Overview of Fiscal Year 2010 and Future Issues A new product information session 27 We want all kinds of users, regardless of age, gender or gaming experience, to enjoy our products. In order to accomplish this goal, it is important to clearly communicate the features of our products to consumers so that they can feel their charm. Our sales partners understand this aim well, and they have helped us in many ways, including the construction of demonstration spaces. The appeal of the Nintendo 3DS can be best understood by consumers when they actually see the device. Therefore, it becomes more important to build a demonstration that enables the consumer to interact with the product. In order to provide consumers with surprise and fun, and to deliver smiles to as many consumers as possible, we look forward to continued cooperation with our sales partners. Hiroyuki Fukuda Manager, Group No.1 Sales & Marketing Department No.1 Marketing Division, Nintendo Co., Ltd. 28 Maximizing Our Employees’ Strengths Nintendo is committed to creating and maintaining a working environment where all employees can apply and expand their strengths to realize their full potential and benefit the company as a whole. Benefiting the Company as a Whole We recognize that the strengths and talents of each employee underlie Nintendo’s competitive edge. We strongly believe that promoting the development of each employee to his or her fullest potential is the best way to increase the long-term collective strength of the company and is the best path to individual job satisfaction. Nintendo’s Ideals for Employees In the entertainment business there is a constant demand for fresh ideas. To continue introducing products that make people happy, Nintendo strives to foster in its employees the ideals of intellectual curiosity, originality and flexibility, open communication, consideration of others and a strong spirit of service. Accordingly, at Nintendo Co., Ltd., we have distributed the Nintendo Code of Conduct, to which all employees should conform. These guidelines comprise the Nintendo Standards of Behavior and Nintendo DNA — the spirit and strength of our prized heritage. Our overseas subsidiaries have also implemented their own codes of conduct, adapted to the laws and regulations of their respective countries. Human Resource Development Nintendo understands the importance of cultivating its human resources to assist each employee in achieving Nintendo’s Ideals. For example, in addition to orientation training for all new employees, active on-the-job training in each department and a full range of in-house development programs, Nintendo Co., Ltd. provides opportunities for employees to attend external seminars for career growth. Periodically, the company also provides opportunities for employees to review their competencies and create development plans to help polish their job skills while focusing on their professional career growth. One unique aspect of the Nintendo Co., Ltd. in-house development program is that it provides many opportunities for employees to exchange opinions candidly with others outside of their departments. Through such exchanges we hope our employees will make new discoveries that broaden their perspectives, learn new ways to communicate with others and improve their facilitation*1 skills. Likewise, our overseas subsidiaries also provide appropriate development opportunities for employees. For example, employees with many different native languages work together at our Europ ean subsidiaries. To optimally supp or t smooth internal communications, these subsidiaries offer their employees assistance, if needed, for instance in English language instruction as English is the common business language. 29 Nintendo of Europe GmbH Improving Our Understanding of the Code of Conduct Through E-Learning Nintendo Ideals for Employees Open Communication Gain the understanding and empathy of those around you, and contribute your strengths to the team. Consideration for Viewpoints of Others In October 2010, Nintendo of Europe created an electronic, intranet tool for employees to refresh and test their knowledge about the Code of Conduct. Previously, instruction on the Code of Conduct was provided through training seminars to all permanent staff at each of the Nintendo offices in Europe. Delivery of these seminars was extremely challenging due to the large number of employees requiring instruction, as well as difficulty timing the seminars so that most employees could attend. Therefore, a multi-language Code of Conduct e-learning course was developed, by which employees could review their understanding of the Code of Conduct. This had the advantage that employees could work their way through the course at their own pace and at their convenience. The course required employees’ active participation for successful completion. Employee feedback to the course has been overwhelmingly positive, and Nintendo of Europe plans to develop similar e-learning programs for its employees in the future. Learning about the Code of Conduct via the intranet Avoid self-centered ways of thinking and be conscious of the viewpoints of others. Spirit of Service Ta ke p r i d e in h e lp in g ot h e r s an d bringing happiness to them. Intellectual Curiosity B e o p e n to n e w in fo r m at i o n a n d experiences, especially in the face of progress and dramatic change. Originality and Flexibility Do not rely on past successes and ideas, but formulate new, innovative proposals. *1 Facilitation The process of supporting meeting participants by p ro m otin g th e e xchan g e o f i d eas an d information, and by summarizing the participants’ points of view so that participants can perform creative and intellectual activities effectively and smoothly as a group. Evaluation System for Personal Development Nintendo Co., Ltd. uses biannual evaluations to provide employees with opportunities to work on their personal career development plans. Employees are given a proprietary set of evaluation competencies that derive from the Nintendo Ideals to help them craft their own personal development plans. Before employees are evaluated by their managers, they are given the opportunity to conduct self-evaluations of their professional behavior and accomplishments. Comparing this self-evaluation with their managers’ feedback provides employees an opportunity to discuss any discrepancies in perception and outline new goals for personal development. The biannual evaluations also afford employees the opportunity to make proposals to the company. This process encourages employees to show initiative and increases their ability to contribute to the company. We also use this process to actively solicit the opinions of our employees as part of an ongoing policy improvement process. 30 Promoting a Diverse Work Environment Trends in the Number of Employees (consolidated) Equal Opportunity and Respect for Diversity (Number) Nintendo recognizes the importance of employing individuals with a wide array of abilities in augmenting the collective strength of the company. We respect, and aim to make full use of, the multifaceted talents and strengths of each employee. In addition, our employee assessments are based on merit, which is in line with strict laws governing the fair treatment of employees, regardless of gender, age, nationality or disability. 2006 3,768 2008 4,130 2009 *1 100 Best Workplaces A ranking of the best workplaces, selected by t h e G reat Pl a ce to Wo r k ® I ns t i t u te u n d e r common global standards. *2 Kurumin Mark This is a symbol granted by Japan’s Ministry of Health, Labor and Welfare to enterprises and organizations that ac tively suppor t raising children in accordance with the Japanese Act for Measures to Support the Development of the Next Generation. Nintendo strives to provide an environment that enables employees to fully exercise their talents while maintaining a healthy work-life balance. For example, Nintendo of Europe and Nintendo Benelux held “Bring Your Child to Work” days to promote communication between employees and their families. In fiscal year 2010, Nintendo of Canada was once again selected by the Great Place to Work® Institute as one of the 100 Best Workplaces*1 in 3,373 2007 Balancing Work and Family Canada. They were also selected for this list in fiscal year 2009. 4,425 266 2010 Respect for Human Rights (FY) • We respect the rights of all people. We are also committed to ensuring a proper understanding of human rights issues. • We do not discriminate or incite discrimination, through our words or actions, on the basis of such factors as race, ethnicity, nationality, ideas, religion, beliefs, origin, social standing or status, profession, gender, age or disability. • We do not condone sexual harassment or any other form of harassment, including ostracism and verbal abuse. • We appreciate the different cultures and practices of the countries in which we operate, and we do not act in any way that would be deemed discriminatory or inappropriate in those contexts. 1,925 Although many Japanese companies set the retirement age at 60, Nintendo Co., Ltd. strives to guarantee secure employment until the age of 65. To help employees with their retirement planning, the company periodically invites expert instructors for life-planning sessions. Laws and customs differ from country to country, so our overseas subsidiaries do not implement a mandatory retirement age. Preventing Harassment Nintendo Co., Ltd. clearly prohibits sexual harassment and other acts of harassment in its Code of Conduct, which is distributed to every employee, and in its Compliance Manual. These documents contain concrete examples of instances of harassment and precautions for every workplace. We take complaints regarding harassment seriously, and respond promptly and appropriately. The overseas subsidiaries also explicitly prohibit acts of harassment in their versions of the Code of Conduct. 916 4,712 Actively Supporting Childcare Japan Europe North America Asia / Oceania Ratio of Male & Female Employees for FY2010 Female Male * Composition ratio of 33% 67% From Nintendo Co., Ltd.’ s Code of Conduct Secure Employment of Older Employees 1,605 male and female employe es hire d by Nintendo Co., Ltd. and its main overseas subsidiaries at the end of March 2011. Employee Status (Nintendo Co., Ltd. only) FY 2008 Overall Average years of Male continuous employment Female Turnover rate Percentage of female managerial staff 12.7 FY 2009 12.6 We are currently working to raise employee awareness of the company’s childcare leave policy and to create a workplace environment that facilitates childcare leave. How Our System Goes Beyond the Law and Supports Employees’ Work-Life Balance (Nintendo Co., Ltd. only) Childcare leave Reemployment system Up to two years after childbirth Reemployment of individuals who previously had chosen to resign from their positions for the purpose of providing extended child or family care FY 2010 12.4 12.9 12.7 12.6 11.7 12.1 11.9 2.05% 0.84% 1.37% 4.35% 4.76% 4.00% Percentage of employees 2.08% 2.01% 2.13% with disabilities* * Legal requirement: 1.8% To help our employees balance work and childcare, Nintendo Co., Ltd. has developed a system to support employees with childcare issues, as well as employees with a wide range of other working conditions, including employees who do not raise children. In recognition of these efforts, Nintendo Co., Ltd. was certified to display the Kurumin Mark*2 in fiscal year 2010. Family and medical care leave Up to six months per dependent Refresh leave system Offers special holidays to employees who have worked for a certain number of years Reduced work hours/childcare option Work-hour reduction of up to two hours per day until the employee’ s children finish the third grade in elementary school (approximately age nine) Reduced work hours/family care option Work-hour reduction of up to two hours per day for a limit of six months per dependent Annual paid holiday extension system Gives employees the option to extend their periods of accumulated paid holidays for certain purposes Half-day paid vacation program Usage Status (Nintendo Co., Ltd. only) Number of employees taking maternity leave N u m b e r o f Male employees taking child Female care leave Number of employees taking family and medical care leave Rate of paid vacation taken FY 2008 FY 2009 FY 2010 19 23 11 1 2 1 30 37 26 0 1 0 69.6% 68.9% 69.6% Employees can take half-day paid vacations, with no limitations on the numbers of days or other conditions Nintendo of Europe GmbH, UK Branch Childcare Vouchers A big issue for working parents is finding reliable and relatively inexpensive day care for their children. In the UK, there is a program supported by the government through which employers can provide employees with a portion of their salary in the form of a “childcare voucher” (for example, to use for childcare facilities). Because this voucher is tax-exempt, employees do not have to pay tax on this portion of their salaries. Nintendo of Europe’s UK branch has participated in this program since fiscal year 2008. By taking advantage of this program, employees are able to find good day care facilities for their children, and they can concentrate on their work. 31 32 Creating a Safe and Healthy Workplace Because physical and mental well-being is essential to employee work satisfaction and skill development, Nintendo has implemented measures aimed at promoting employee well-being. Ensuring Health and Safety in the Workplace At Nintendo Co., Ltd., representatives of the Health Committee, who serve at our headquarters and branch offices, and representatives of our Health and Safety Committee, who serve at our plants, actively engage in efforts to promote health and safety. In addition to routine inspection tours, the committee members set goals for improving medical checkup results and increase employee awareness through the creation of health and safety posters. Committee members also work to raise company awareness through various means such as attending workshops on lifesaving and disaster-prevention training. Nintendo of America Inc. Promoting Employees’ Health and Safety Awareness Nintendo of America ran a six-week Healthy Challenge campaign starting in July 2010 to raise health awareness among its employees. Employees formed four-person teams and competed to see which team could complete the most exercise and other healthy activities during this period. This campaign helped employees have fun and improve their health while learning healthy habits. As a safety initiative, Nintendo of America has broadened the learning of healthy habits by offering First Aid and CPR classes, using a new online training service, through its employee safety intranet site, allowing all employees the opportunity to learn these valuable lifesaving skills. The company remains committed to raising its employees’ awareness of health and safety. Members of the winning team of the Healthy Challenge campaign The Importance of the Health Committee Nintendo of Europe GmbH (Germany) J.P. Morgan Chase Corporate Challenge Run Nintendo Co., Ltd. Hirotaka Uemura Network Operation Group, Network Business Department Through active discussions of the Health Committee, lectures on health from an occupational health physician and emergency drills at a disaster-prevention center, I realized that our company is seriously working on “building a safe and healthy working environment.” In particular, at the disaster-prevention center, we learned how to use disaster-prevention tools which cannot be used properly without experience, as well as lifesaving techniques (cardiac massage is more effective than artificial respiration, etc.) . It was a great experience for me. On June 9, 2010, 270 members of Nintendo of Europe participated in a world-famous corporate run. This run is held to raise money for charity. Nintendo of Europe has taken part in this event ever y year since 2005, not only to contribute to society, but also to enhance employee health consciousness. Also, because employees from several departments participate in this event, it is a good chance to strengthen communication and build bonds between the employees. Employees who participated in the run Physical and Mental Well-Being Nintendo Co., Ltd. supports the physical and mental health of its employees. For example, the company supports proactive employee health maintenance plans and has established a health consultation room. This room is staffed by an occupational health physician, for consultations on physical and mental problems. In July 2009, the company further strengthened its support system by ensuring that a full-time health nurse is always available. In addition to facilitating in-person visits with an occupational health physician for help with mental health issues, Nintendo Co., Ltd. has introduced a system of mental health support designed for the prevention and early detection of mental health problems. This system supports self-care as well as training and education for managers. Each overseas subsidiary has also developed support systems aimed at improving the well-being of its employees. For example, Nintendo of America actively works to create opportunities for employees to become aware of health in their daily lives by offering healthy meals in its cafeteria, designed by the company’s Health Promotion Committee. They also provide full support for mental and physical health. 33 Overview of Fiscal Year 2010 and Future Issues Nintendo employees have various characteristics and abilities. In order to achieve our CSR goal as a group, it is important that each employee reaches his or her full potential, while we maintain an organizational culture in which employees admire and value each other. The common understanding at Nintendo, that the most important thing is to make our consumers smile, comes from the “Nintendo DNA”: “the spirit of valuing originality and flexibility” and “honesty and earnestness,” and we fully recognize that it is our responsibility to uphold these values. Also, in fiscal year 2010, Nintendo Co., Ltd. was certified by the Health, Labor and Welfare Ministry of Japan as a company that proactively supports childcare. We would like to continue our efforts at building a working environment where employees can strike a healthy work-life balance, and keep working in a healthy and lively way. Keiko Nakamura Manager, Human Resources Group Personnel Department Nintendo Co., Ltd. 34 Bringing Smiles to Future Generations Nintendo believes that leaving a better environment to the next generation is one of its most important responsibilities and is therefore taking positive steps to protect the global environment. Eco-Friendly Products Nintendo has established internal standards for designing eco-friendly products that respect the global environment, from the initial product planning stage all the way through to product end-of-life disposal. We work constantly to improve our product development processes and include ways to decrease our environmental impact, including incorporating designs that improve energy efficiency to reduce CO 2 emissions, selecting component materials with a lower environmental load from the viewpoint of appropriate chemical substance control and selecting packaging materials that can be more easily recycled to conserve resources. Our Approach to Chemical Substance Control Nintendo applies strict internal controls to its use of chemical substances. These standards incorporate the precautionary principle*1, with the goal of preventing adverse health effects and reducing our environmental impact. Pursuant to Nintendo standards, Environment-Related Substances are subject to various restrictions, depending on their classifications as: Banned Substances, Substances Subject to Early Withdrawal or Substances Under Application Control. We are also working toward compliance with the REACH Regulation*2. Green Procurement *3 *1 Precautionary Principle Proactively avoiding or minimizing the use of chemical substances that could pose a health or environmental risk, even if causation has not been scientifically proven. *2 REACH Regulation A regulatory framework in the European Union (EU) that deals with the Registration, Evaluation, Authorisation and Restriction of Chemicals. REACH requires the registration and management of chemicals in the EU in accordance with their use. Nintendo periodically checks the use of chemical substances by its production partners to verify whether any parts contain Substances of Very High Concern (SVHC); if so, Nintendo is obligated to report the fact. None of Nintendo’s products contain substances that require REACH registration. Environment-Related Substances(Revised August 2010) Substances Subject to Early Withdrawal Substances under Application Control Restric ted-use substances currently subjec t to enacted legislation or substances that Nintendo deems inappropriate for use. Substances expected to be classified as Banned Substances due to the enactment of future legislation. As part of our risk management and environmental protection ef forts, Nintendo plans to switch over to alternative substances and remove such substances from our products as soon as possible. Substances that, with prolonged exposure, pose a potential health risk, and in Nintendo’ s view, require continual monitoring of their content levels. Cadmium and Cadmium Compounds, Hexavalent Chromium Compounds, Lead and Lead Compounds, Mercury and Mercury Compounds, Tributyl Tin Oxide (TBTO), Tributyl Tins (TBTs) and Triphenyl Tins ( TPTs), Dibut yltins (DBTs), Dioc t yltins (DOTs), Polybrominated Biphenyls (PBBs), Polybrominated Diphenyl Ethers (PBDEs), Polychlorinated Biphenyls (PCBs), Polychloronaphthalenes (PCNs), Shor t Chain Chlorinated Paraf fins (SCCPs), Asbestos, A zo colorant s and A zo dyes, O zone - D epleting Subs tances, Radioac tive Subs tances, Phthalate E s ters (six subs tances), PFOS-Related Substances, Benzene, Dimethyl Fumarate Polyvinyl Chloride (PVC), Chlorinated Compounds, Bromine Compounds Substances Regulated by Nintendo Natural Rubber (may cause allergic reactions) WEB 35 Green Procurement Prioritizing the selection and procurement of p r o d u c t s a n d co m p o n e n t p a r t s t h a t a r e environmentally friendly and free from harmful substances. *4 Production Partners The manufacturing factories to which Nintendo outsources product assembly and the suppliers of component parts and materials. Green Supplier and Green Part Certification We certify Green Suppliers and Green Parts on-site at the suppliers’ production facilities. Each Green Part is certified separately by category. As of the end of March 2011, Nintendo has certified a total of 641 Green Suppliers and 13,949 Green Parts. Nintendo Co., Ltd. requires its production partners to perform their own analyses of the chemicals contained in the parts they deliver to Nintendo, especially for certain substances of particular concern, such as phthalate esters, which are categorized as Banned Substances. We also issue manufacturing process guidelines to our production partners, which specify methods for controlling the use of such substances, because there is always a risk of contamination during the manufacturing process, even if these substances are not used in the raw materials. Green Procurement Project Banned Substances Substances Subject to Legal Regulation With respect to product safety and environmental protection, Nintendo Co., Ltd. maintains strict control over its manufacturing processes and applies green procurement standards to ensure that its products do not contain any toxic chemical substances. To protect the environment, Nintendo Co., Ltd. has established its own Green Procurement Specifications. Production partners*4 and component parts that meet our standards are certified as Green Suppliers and Green Parts; these parts are managed in a database. *3 Antimony and Antimony Compounds, Arsenic and Arsenic Compounds, Beryllium and Beryllium Compounds, Bismuth and Bismuth Compounds, Nickel and Nickel Compounds, Selenium and Selenium Compounds, Brominated Flame Retardant s (BFR s) (e xcluding PBBs and PBDE s), Bis (2-methoxyethyl) phthalate, Bisphenol A, Alkylphenols (carbon atoms: 5 to 9), 2,4-Dichlorophenol, Di(2-ethylhexyl) adipate, B en zop h en on e, O c t a chloros t y ren e, Tr ichloro ethy len e, Tetrachloroethylene, the REACH Candidate List of SVHC for Authorization Since fiscal year 2005, Nintendo Co., Ltd. has been applying the green procurement principles. As part of this initiative, we hold monthly project meetings to discuss our compliance with laws and regulations in various countries, and how we can strengthen our environmental efforts going forward. To further increase environmental awareness, since July 2008, we have regularly held seminars for those departments that relate to green procurement. In fiscal year 2010, a total of six seminars were held, with 169 employees participating. Our overseas subsidiaries also promote green procurement practices. All manuals, packaging and shipping containers for which each subsidiary is responsible, from planning to production, must use materials that meet Nintendo Co., Ltd.’s Green Procurement Specifications. For more information about our efforts, visit Nintendo Co., Ltd.’ s CSR Q&A: Environmental Measures. 36 Working Toward Eliminating the Use of Specific Chemical Substances *1 Nintendo manages chemical substances in accordance with the RoHS Directive*1. We have also obtained GS Certification* 2 and evaluate the use of allergens and other substances. As part of our ongoing efforts to reduce our environmental impact, we are aggressively seeking replacement materials for polyvinyl chloride and bromide fire retardants, which we categorize as either Substances Subject to Early Withdrawal or Substances Under Application Control. Whenever and wherever possible, we seek substitutes that can guarantee product safety and quality. For example, we have eliminated all polyvinyl chloride in our plastic playing cards and internal components of our game systems, and have incorporated halogen-free components in some of our products. Also, our Nintendo 3DS Game Cards contain halogen-free printed circuit boards. *2 RoHS Directive A European Union (EU) Directive that restricts the use of lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls and polybrominated diphenyl ether flame retardants in cer tain t ypes of electrical and electronic equipment. GS Certification A product safety certification mark recognized throughout Germany which provides verification that a product has been tested by an independent testing authority as compliant with requirements of the German Equipment Safety Law. Verification Testing of Chemical Substances Contained in Products To ensure that our products contain no Banned Substances, Nintendo Co., Ltd. has a department that specializes in chemical analyses. Chemical substances contained in the component parts are monitored by testing, generally at the final stage of the specification reviews or during the mass production trials. We use in-house equipment for the majority of these tests, but when necessary or appropriate, we also use the services of an international third-party certification organization. Energy-Saving Design *3 Ecodesign Directive The Ecodesign Directive is a European Union (EU) framework directive that sets binding requirements for various categories of energy-related products that influence their environmental design and development. Some of Nintendo’s products meet the standby power and external power supply requirements. *4 Composite Materials Materials comprised of two or more significantly different raw materials, such as “paper + aluminum” or “paper + plastic,” which are generally more difficult to recycle. Nintendo is committed to developing energy-efficient products that conserve energy. Even after our products are launched, we work to lower their energy requirements. In addition, we have redesigned the Wii, Nintendo DSi and Nintendo DSi XL for the European market to satisfy the energy-consumption requirements of the Ecodesign Directive*3. Even before the requirement came into effect, the Nintendo 3DS had already satisfied the applicable requirements for external power supplies without having to be redesigned. Furthermore, the Nintendo DSi, Nintendo DSi XL and Nintendo 3DS AC adapters (for 100 to 120V markets and for the European market) have achieved an energy performance level equivalent to the external power supply requirements for Level V energy performance stipulated by the International Efficiency Marking Protocol for External Power Supplies. Promoting Resource Conservation, Recyclable Design In designing its products, Nintendo avoids relying on the use of composite materials*4, and instead favors materials that are easily separable and, hence, more recyclable. In addition, we clearly indicate what materials are used in our products. We also are working to reduce the use of unnecessary resources by minimizing the amount of packaging we use wherever possible. Post-Sales Recycling Nintendo considers the promotion of products and packaging recycling to be one of its most important initiatives. In the various countries in which we operate, we provide consumers with information regarding recycling, and participate in take-back and recycling programs. Nintendo Co., Ltd. Green Procurement Seminars for Our Production Partners in China WEB Post-Sales Recycling To learn more about our local recycling efforts, visit Nintendo Co., Ltd.’s CSR Q&A: Environmental Measures. Nintendo Co., Ltd. has worked to improve the ability of all production partners to manage chemical substances by distributing guidelines on chemical management, as well as by conducting on-site audits. To facilitate this, in September 2010, we held seminars on green procurement at three venues in China. These seminars targeted 170 companies, including our production partners and their suppliers, such as those that manufacture raw materials. We explained Nintendo’s approach to green procurement, regulations and standards related to Nintendo products, methods for managing chemical substances and other information. The seminars enabled us to share Nintendo’s vision for chemical substance management by directly communicating with our production partners. 37 Product Take-Back Program Nintendo of America Inc. Robert Peltzer Sr. Product Support Analyst, Field Service A green procurement seminar in China Nintendo of America provides a wide range of initiatives for promoting product recycling. For example, it provides information on the recycling of gaming systems, rechargeable batteries and other products on its website. It also offers a free take-back program via an online system and a toll-free telephone number. Nintendo of America partners with EPA (Environmental Protection Agency) R2 certified recyclers to ensure any recycled items are handled appropriately. In calender year 2010, Nintendo of America processed 815 tons of returned products, of which 65% was reused and 35% recycled. 38 Environmentally Conscious Business Activities Nintendo employs the fabless production model, in which we outsource all of our production processes, such as product manufacturing and assembly, to domestic and overseas production partners. Nintendo’s environmental efforts focus mainly on its business processes, and we advance our initiatives to conserve energy and make more effective use of limited resources. We also continually strive to track the environmental efforts in our production partners’ production processes. Energy-Saving Activities Whenever a new office is designed and built for Nintendo, we always take into account environmental considerations. These include incorporating eco-friendly air conditioning and facility lighting. For example, Nintendo of America’s new headquarters, which was completed in April 2010, received LEED Gold certification (see P. 14). Our European subsidiaries have also adopted energy conservation measures, including the use of renewable energy*1. Reducing Water Use Nintendo recognizes that water scarcity is a serious issue in various regions around the world, and that water will remain a precious resource in the years to come. With this in mind, we have taken steps to reduce our water usage, including installing water-conserving equipment when building new offices. In addition, some of our overseas subsidiaries are also conserving water resources by, for example, employing septic systems that reuse stored rainwater for toilets or irrigation. *1 Renewable Energy Energy that comes from natural resources, such as sunlight or wind, that is naturally renewable. CO2 emissions Total (Tons-CO2) 2007 16,105 Due in part to an increase in our number of employees, Nintendo’s total CO2 emissions in 2008 17,240 fiscal year 2010 were 7% higher than the fiscal year 2009 level. In contrast, however, on a per-employee basis our CO2 emissions tend to decrease year by year, and we will continue our efforts to conserve energy. 2009 17,087 (FY) Bertus de Jong General Manager 0.96 2008 0.94 2010 The Belgium branch office of Nintendo Benelux currently gets 100% of its electricity from renewable energy sources. We investigated how our offices could help build a sustainable society, and since June 2009, all electricity used in our office has been obtained from renewable energy sources, which eases the load on the environment. (FY) 2009 (1,000m3) 83 109 2010 117 (FY) * Excludes information for Nintendo of Europe’ s Italy branch. information for Nintendo of Korea for fiscal years 2007 * Excludes to 2009. revised the water usage from Nintendo of America for fiscal * We years 2007 to 2009. Nintendo believes that environmental education is a critical part of its efforts to preserve the environment. Nintendo Co., Ltd. continually works to increase awareness within its organization, publicizing its monthly CO 2 emissions and energy-use figures on the corporate intranet and calling for employees’ assistance in activities to save energy. Participating in Ride2Work Program to Encourage People to Cycle to Work 4.3 2007 2009 2008 90 Nintendo of Europe GmbH, UK Branch Emissions per employee (Tons- CO2 per employee) Emissions per sales unit (Tons-CO2 per 100-million-yen unit) Nintendo Benelux B.V. 2007 18,221 2010 Per Unit of Output Active Use of Renewable Energy Implementing Environmental Education Water Usage 4.2 Ride2Work is a program backed by the British government that encourages people to cycle instead of driving to work. It provides tax incentives to offset the cost of purchasing a bicycle. Nintendo of Europe’ s UK branch has been participating in this program since October 2009, in the belief that this initiative contributes to both the health of its employees and preservation of the environment. 3.9 1.19 3.9 1.80 information for Nintendo of Korea for fiscal years 2007 * Excludes to 2009. revised the amount of CO 2 emissions from Nintendo Co., * We Ltd. for fiscal years 2008 and 2009. Overview of Fiscal Year 2010 and Future Issues Promoting Waste Reduction and Recycling We recognize the importance of resources, and work hard both to minimize the production of waste and to separate any waste products for recycling. We also strive for effective resource utilization. At each of its offices, Nintendo Co., Ltd. has established a system of waste processing and management, including recycling, and has appointed a supervisor to oversee such efforts at each location. Similar systems for waste management and recycling have also been put into place at our overseas subsidiaries. Current efforts include conversion from paper to electronic workflows to reduce paper consumption. 39 Amount of Waste 2007 2008 2009 2010 5,147 (Tons) 7,227 6,751 6,178 (FY) * Excludes information for Nintendo of Europe’ s Italy branch. revised the amount of waste from Nintendo of America * We and Nintendo Ibérica for fiscal years 2007 to 2009. Nintendo is striving to develop products that surprise people in a positive way all over the world and to put smiles on their faces. With this aim in mind, we are working on making people smile from an environmental perspective as well. For example, we made the Nintendo 3DS Game Card case 3mm thinner, and we created many holes in it to reduce the amount of plastic used to produce it. In addition, for the nintendogs + cats Game Card case, we adopted a design that enables consumers to see the faces of the puppies and the kittens through the holes so that simply opening the case will make them smile. We will continue developing products in a Nintendo way, aiming to link our environmental consideration with consumers’ smiles. Kenichi Sugino Manager, Design Group Research & Engineering Department Nintendo Co., Ltd. 40 Bringing Smiles to the Community Nintendo continually seeks ways to serve and contribute to the community in a Nintendo way. Nintendo’s Unique Contributions Maintaining a wholesome society is an integral part of Nintendo’s business. As a corporate citizen, we endeavor to contribute to society, by considering the kinds of contributions we can best offer. Cooperation With a Program to Enhance Intergenerational Communication Nintendo Ibérica, S.A. (Spain, Portugal) Nintendo Ibérica’s Spain and Portugal offices have cooperated with a program that fosters communication between elderly people and children. The Spain office collaborated with Ballesol, a company that operates senior centers, to support an event that enabled the elderly to team up with children and enjoy Wii Sports Resort and Wii Party. The Portugal office supported a program run by Odivelas City Hall, which seeks to enrich the lives of elderly people by using new technologies. A Wii tournament was held for the seniors, who teamed up with children and played Wii Fit Plus together. The seniors and the children were able to close the generation gap by playing Wii Fit Plus. Nintendo Ibérica is also suppor ting various other events that aim to promote intergenerational communication. Nintendo Game Seminar (internship program) Nintendo Co., Ltd. At Nintendo Co., Ltd., we wish to maintain and promote Japan’s truly world-class game culture, and contribute to the game industry. Since 2003, we have been holding the Nintendo Game Seminar, an internship program that gives participants the opportunity to learn about game creation free of charge*1. For 10 months, Nintendo developers, who are currently active at the forefront of game development, lecture and convey to participants the professional know-how necessary for game development. In fiscal year 2010, 35 students participated in the Seminar, bringing the total number of participants to 269 since the Seminar’s inception. Many of these students go on to make creative contributions in a variety of industries. A senior citizen trying Wii Fit Plus for the first time (Portugal) Classroom scene from the Seminar *1 The Seminar will not be held in fiscal year 2011. Offering a Great Time to Senior Center Residents Nintendo France S.A.R.L. Jean Michel Viaud Sales Director, Sales Department Assistance to the Victims of the Great East Japan Earthquake We express our sincere sympathy to the people suffering from the Great East Japan Earthquake, and we wish them the earliest possible recovery. In order to assist in the revitalization of the devastated areas, Nintendo Co., Ltd. sent a donation as well as donations from individual employees. As an entertainment company, we will continue our efforts to make people smile, create opportunities for human connections and help make our world a happier place. 41 Nintendo France has supported the use of the Wii consoles by the elderly at nearly a dozen senior centers over the past few years. In doing so, we managed to put smiles on the faces of senior citizens who discovered that they could have a great deal of fun playing the very same games their grandchildren enjoy. It is very rewarding to see how the products we promote actually can bridge the generation gap, bringing smiles to people of all ages. 42 Support for Starlight Children’s Foundation Nintendo of America Inc. Nintendo Australia Pty. Ltd. *1 Fun Center A mobile entertainment device combining a flat-screen TV, a video game system and a DVD player that can b e f re ely move d around a hospital. Nintendo of Europe GmbH, UK Branch Nintendo of America, Nintendo Australia and Nintendo of Europe’s UK branch have been working with the Starlight Children’s Foundation, a nonprofit organization that provides support to seriously ill children undergoing treatment and their families. Nintendo of America supports these activities by creating and updating the Fun Center*1 program, which gives children the opportunity to play their favorite Nintendo games from their hospital beds via a Fun Center. Throughout the course of this partnership, more than 7,000 Fun Centers have been placed in hospitals across North America. In addition to inviting children and their families to its headquarters, Nintendo Australia is working to install new Fun Centers equipped with the Nintendo DS. Meanwhile, Nintendo of Europe’s UK branch is likewise involved in placing as many Fun Centers in children’s treatment centers as possible. It is estimated that as many as 500,000 children are currently using a Fun Center in the UK. Nintendo employees take pride in supporting this foundation, which brings smiles to many children. Nintendo of Canada has consistently supported the United Way, an organization that works on improving the quality of life for the most vulnerable in our society. In fiscal year 2010, 10 employees volunteered to visit a local senior center to help clean up the facility and gardens. The employees spent a day working at the center, and were able to interact with those who use the facility. Because these activities are highly valued, Nintendo of Canada has been nominated for the Loyal Campaign Award, which is presented to the workplace campaign team that has maximized its giving potential and demonstrated ongoing commitment to United Way’s work in the community. Helping out in the garden of a senior center Nintendo of Europe GmbH (Germany) Spending time with the children at the Australian headquarters Nintendo of Europe GmbH, Italy Branch Nintendo of Europe’s Italy branch supported an enlightenment campaign held by AESVI the Italian software publisher association. This campaign focused on helping parents and educators because consumer research revealed that most parents and educators did not know much about gaming systems. This campaign targeted children age 8 to 12, their parents and their teachers. Through practical training to learn in how to use video games, which are gradually being adopted into everyday life, the participants could learn not only about video games, but about parental controls and PEGI (European rating system). Since fiscal year 2009, Nintendo of Europe has been participating in the annual Girls’ Day event, which is aimed at giving girls firsthand impressions of the working world by e ducating them ab out professions in which women have tr aditionally b e en underrepresented, in order to make these professions more appealing to females who will one day enter the workforce. Nintendo of Europe organized an office tour of the European headquarters for girls in their early teens. The girls eagerly listened to presentations by employees describing their jobs; it was great that Nintendo of Europe could contribute to the better understanding of potential career opportunities. Doing an employee-guided experiment Economic Support to Sports and Artistic Activities Nintendo of Europe GmbH (Germany) Using Wii and Nintendo DS as Education Tools Nintendo of Europe GmbH (Germany) 43 Nintendo of Canada Ltd. Conducting an Office Tour Supporting an Educational Parental Controls Activity Nintendo of Europe is supporting two projects concerned with school education: kik AG and cool:MINT. kik AG is an organization that promotes the use of the latest digital devices for educational purposes, and this organization operates an online platform for lending digital devices to teachers, along with an explanation about how such devices can be used in classes. Through this program, teachers are able to use the Wii and the Nintendo DS for math, English or P.E. classes. Classes using the Wii and the Nintendo DS are well received by children, and these devices are helping motivate them to learn. Nintendo of Europe is an official partner of the Association of German Philologists’ cool:MINT competition. This competition encourages teachers and their classes to submit innovative teaching methods and concepts for the so-called MINT subjects (math, information science, natural science and technology). Volunteering at a Local Senior Center The cool:MINT logo Nintendo of Europe organizes the charity initiative called “Spielend Familien-Talente fördern,” which pursues the hidden musical or athletic talents of individuals whose families lack the necessary funds to develop those talents. Nintendo of Europe cooperated with famous athletes and made monetary donations based on the athletes’ performances. Additionally, during the Christmas season, special events for children were held in which they could collect “star” ornaments by playing demo units. At the end of the events, the events team asked the children to help decorate Christmas trees and, based on the total number of ornaments they had collected, Nintendo of Europe made donations to certain organizations that support sports and artistic activities. Nintendo of Europe wants to bring smiles to as many people as possible. The events team with the decorated Christmas trees 44 Reliable and Trustworthy Business Practices To gain and secure the trust of our stakeholders, we exercise fair and sound judgment when running our business, and emphasize corporate compliance and risk management. Corporate Governance Corporate Governance Structure General Meeting of Shareholders At Nintendo, we strive to maximize long-term corporate value while carefully considering the benefits for everyone we touch. We are working to achieve a highly transparent and sound system of corporate governance; we also educate our employees about good corporate ethics. Election/Dismissal Election/Dismissal Board of Directors Board of Auditors Auditing Appointment/ Dismissal and supervision Coordination President Office of Auditors Accounting Auditor Nintendo’s unique business is based on the software-driven integration of hardware and software. We believe that the optimal managerial structure allows our Directors, individuals familiar with our unique business, to execute their own business operations as Directors, make decisions on company-wide business operations and oversee other Directors’ execution of business operations as experienced members of the Board of Directors. To strengthen shareholder supervision of Directors and respond in a timely way to changes in the managerial environment, Directors are elected for a term of one year. In addition to the Board of Directors, the Executive Management Committee, which consists of Representative Directors from the Board of Directors, drives prompt and efficient decision-making. Audits Nintendo Co., Ltd. has five Auditors, including three Outside Auditors (as of the end of March 2011) who are Independent Officers with no interests in Nintendo. In addition to attending meetings of the Board of Directors and other important meetings, Auditors meet regularly with the President and hold monthly meetings of the Board of Auditors to exchange views on auditing. Auditors strive to make audits more efficient and effective by holding discussions with the Internal Auditing Department, which is under the direct supervision of the President. The Accounting Auditor conducts audits efficiently and effectively, sharing required information and exchanging views based on close coordination with the Auditors and the Internal Auditing Department. The Internal Auditing Department conducts internal audits of business operations from the perspectives of efficiency, efficacy and legal compliance, maintaining a fair and unbiased position independent from operational departments. Strengthening Internal Controls To maintain and improve Nintendo’s sound management structure and ensure appropriate business operations, we established the Internal Control System Committee, chaired by the President, which continues its efforts to strengthen the system of internal controls for the entire Nintendo Group. The main companies in the Nintendo Group have internal audit divisions that conduct internal audits of the group as a whole, in conjunction with the Internal Auditing Department of Nintendo Co., Ltd. The Nintendo Group internal auditing process involves not only the auditing of business operations in each region, but also the auditing of internal controls, including compliance with Japan’s Financial Instruments and Exchange Act, and a review of risk management. The internal audit divisions also hold global conferences as needed, promoting mutual understanding between the internal audit divisions of each region, sharing information and building consensus. 45 Compliance Hotline Execution and Supervision of Business Operations Executive Management Committee Command/Supervision Product Safety Committee Compliance Committee Product Safety Assurance System maintenance and management Promoting compliance Internal Control System Committee Coordination Auditing Internal Auditing Department Promotion and enhancement of internal control Each Division (Departments/Offices) Internal auditing Subsidiaries Compliance As a company with the goal of persistent growth and expansion, Nintendo realizes the importance of building and maintaining trust, which requires adherence to laws, social norms and Nintendo’s internal rules and conventions. In other words, it requires compliance. To firmly base its business operations on compliance, Nintendo has established and implemented region-specific codes of conduct. Activities of the Compliance Committee Nintendo Co., Ltd. has established the Compliance Committee, under the supervision of the Executive Management Committee, to develop measures and policies for facilitating compliance. Although no violations were found in fiscal year 2010 audits, the Compliance Committee stays informed about current global issues and makes appropriate improvements, so as to foster a firmly-rooted awareness of compliance. Promoting Compliance in the Group To enhance and promote compliance throughout the Nintendo Group, we set up the Global Compliance Committee (GCC), comprising executive management and core personnel responsible for legal affairs and compliance from Nintendo Co., Ltd. and its major overseas subsidiaries. This Committee holds the GCC Core Members Meetings for core personnel at the major group companies twice each year, as a practical channel for sharing and exchanging information about compliance-related issues and future tasks that affect each of our companies. 46 gather information and make decisions on support measures for the disaster areas. Our overseas subsidiaries have also created manuals for responding to emergencies in their various regions. For example, Nintendo of America has defined basic actions for employees at each of its branch offices and conducts periodic evacuation drills and other exercises. Compliance Hotline Nintendo Co., Ltd. has established a system, called the Compliance Hotline, for the internal reporting of compliance-related issues. Using the Hotline, employees can report suspected illegal actions or other misconduct directly to the President. We specify in our standards that employees are protected from any disadvantage when they use this Hotline. Our major overseas subsidiaries have also established similar reporting systems, adapted to the laws and regulations of their respective regions. In the unlikely event that an employee at one of our subsidiaries becomes aware of any misconduct of a member of their executive management, they can also report the incident directly to the President of Nintendo Co., Ltd. Intellectual Property Protection Protecting and Managing Information Nintendo Co., Ltd. has established in-house standards, including Information Management Standards and Personal Information Management Standards, to ensure that important information is handled appropriately. We employ physical and technological measures, including access control, to facilitate proper management of confidential and personal information. Internal Seminars Nintendo Co., Ltd. focuses on compliance training. In fiscal year 2010, a total of 587 participants took part in compliance training and educational programs. Each department is given a questionnaire requesting seminar topic suggestions; seminar planning is based on department needs. In fiscal year 2010, we held a seminar on product safety based on a suggestion from the Quality Assurance Department (see P. 19). Compliance Seminar Data (FY2010) Topic Participants Number of Attendees Compliance Basics New recruits of 2010 110 Background of Misconduct Compliance Officers 51 Employees requiring knowledge of the antitrust law Employees of Attitudes Toward departments involved Product Safety in product safety Antitrust (Case Study) 182 244 Intellectual property is the fruit of Nintendo’s research and development, and serves as the pillar of Nintendo’s success. Recognizing the critical importance of protecting our intellectual property, Nintendo is taking anti-counterfeiting protection measures in cooperation with industry groups and investigative agencies in many countries. We continue to take legal action against those who infringe upon our intellectual property; we also educate the public about the importance of intellectual property protection. To improve the ability of consumers and other stakeholders to help us identify and pursue counterfeit products, Nintendo added pages to the websites of Nintendo Co., Ltd. and Nintendo of America that enable individuals to provide information on the sale and distribution of counterfeit products. We have been able to act on this information in combating piracy by taking actions such as sending out warning letters to infringers, removing counterfeit products listed on Internet auction sites and filing criminal complaints. Disclosure To gain and secure the trust of our shareholders and investors, Nintendo Co., Ltd. works to ensure the fair, appropriate and timely disclosure of information. We have also created a corporate environment that facilitates the exercise of voting rights. Basic Policy on Risk Management Financial Results Briefings and Corporate Management Policy Briefings Nintendo recognizes the importance of having systems in place to identify, understand and evaluate the various risks surrounding the company; we take every measure to avoid or reduce such risks. In the event of an incident or accident, we seek for prompt resolution. At Nintendo, we believe that it is vital not only to provide information about our business performance, but also to make sure that our corporate management policy is well understood. After the announcement of our financial results, Nintendo Co., Ltd. holds Financial Results Briefings for securities analysts and institutional investors (fiscal year 2010: 3 briefings) and an annual Corporate Management Policy Briefing that all Representative Directors attend. We strive to provide all stakeholders with prompt access to information provided at these meetings by immediately posting reports from the meetings, including the Q&A sessions, on our website in both Japanese and English. Video presentations by the President are also available. Risk Management Nintendo’s risk management gives each division of the Nintendo Group direct responsibility for the management of its own risks. Nintendo Co., Ltd.’s Internal Auditing Department verifies the risk-management system of each group company and, as needed, suggests policy changes and offers advice. Corporate Management Policy Briefing Smooth Management of Shareholders’ Meetings Risk Management for Potential Emergencies In preparation for emergencies, including natural disasters, Nintendo Co., Ltd. has created and published the Crisis Management Manual (revised in November 2010), which defines the fundamental actions employees should take in the event of an emergency. In addition, Nintendo Co., Ltd. has introduced a system for confirming employee safety in the event of an emergency. Drills to administer the system are conducted periodically. When the Great East Japan Earthquake struck, we used this system and other means to verify employee safety, 47 The Crisis Management Manual is the size of a business card so that employees can carry it at all times. To provide our shareholders with even more time to exercise their voting rights, Nintendo Co., Ltd. issues the convocation notice three weeks prior to the General Meeting of Shareholders (one week earlier than the legal requirement) and enables shareholders to vote via the Internet. In addition, for the benefit of our foreign investors, we have made the notices available in English and have adopted the Electronic Voting Platform system for institutional investors. In fiscal year 2010, we posted a summary of the Q&A session at the General Meeting of Shareholders on our website to achieve broader disclosure. 48 A Message Regarding Nintendo’s CSR Activities Nintendo Overview Company Name Nintendo Co., Ltd. Principal Affiliated Companies Japan Europe ND CUBE Co., Ltd. Nintendo of Europe GmbH Brownie Brown Inc. Nintendo France S.A.R.L. MONOLITH SOFTWARE INC. Nintendo Ibérica, S.A. Founded September 1889 Project Sora Co., Ltd. Nintendo Benelux B.V. Mario Club Co., Ltd. Other areas Incorporated November 1947 The Pokémon Company Nintendo Australia Pty. Ltd. WARPSTAR, Inc. Nintendo of Korea Co., Ltd. Location 11-1, Kamitoba Hokotate-cho, Minami-ku, Kyoto Ayako Sonoda Secretariat Director, Sustainability Forum Japan Director, Environment Businesswomen, LLC President, Cre-en Inc. The impact of the Great East Japan Earthquake went far beyond everyone’s imagination. I think that Nintendo, with a task force led by its president, should be commended for its swift action to confirm the safety of its employees, and for its decision to provide major support (through monetary donation and employee donations) to the affected areas. I also think that Nintendo, with its aim of creating a future society that truly values human connections and is filled with smiles, will be able to contribute in an increasing number of areas. For example, it is important to educate our society with disaster awareness information so that we can take prompt action in the event of an emergency. I hope that Nintendo will use its strength as a game company to raise awareness and contribute to disas ter prevention measures. By reading this report and directly interviewing the president, I noticed that Nintendo has made significant progress in its CSR activities. For example, I was impressed that Nintendo decided to display a precaution on the package of the Nintendo 3DS regarding the viewing of stereoscopic images by children ages 6 and under. I also felt that enabling users to freely adjust the strength of the 3D images, including making the images 2D, was outstanding. Also, this report demonstrates that Nintendo has enhanced the global nature of its CSR activities, and is spreading more smiles throughout the world. The global reports highlight the use of Art Academy in education venues all over the world, such as an Wii no Ma Co., Ltd. Capital 10,065,400,000 yen elementary school in the Netherlands; regarding the promotion of diversity, a female role model from Germany was introduced. I hope that the entire Nintendo Group shares in the fruits of these efforts; I also hope that the company will continue to expand these efforts, while taking into consideration the characteristics of each region. In addition, Nintendo is working hard on the education and awareness of it s pro duc tion par tners by holding green procurement seminars in China. As far as Nintendo is operating its business worldwide, e ducating the p e ople engage d in Nintendo’ s business in foreign countries is a constant challenge facing the company. ISO 26000, an international CSR standard published in November 2010, expects companies to measure the impact of their entire value chain*, including social aspects, requires proactive management and information disclosure. In the future, I think it would be better for Nintendo to implement measures to ensure that all employees within the company are able to clearly visualize future plans and progress. Concurrent with these efforts, I expect that Nintendo will focus even more on its positive impact on society, further broaden the potential of games, continue surprising and moving people all over the world and bring more smiles to everyone Nintendo touches. The Americas Nintendo of America Inc. Nintendo Website (Japan) http://www.nintendo.co.jp/ Transition of Net Sales (consolidated) 2006 A series of activities from creating products or services to their consumption, and the people involved in this entire process. Regional Net Sales Composition Ratio (consolidated: FY2010) Other 54,579 966,534 2007 Japan 167,893 2008 1,838,622 2009 Software 402,229 Playing cards, Karuta, etc. 1,714 Total 1,014,345 (million yen) (million yen) Transition of Operating Income Transition of Net Income 2006 2006 (consolidated) 226,024 2007 487,220 555,263 2009 2007 (million yen) (FY) (million yen) Transition of Dividends (per share) 2006 257,342 2008 2010 171,076 (consolidated) 174,290 279,089 2009 356,567 Hardware 610,401 The Americas 461,853 1,014,345 (FY) (FY) (consolidated: FY2010) Total 1,014,345 Europe 330,018 1,434,365 2010 2010 Net Sales Composition Ratio 1,672,423 2008 * Value Chain Nintendo of Canada Ltd. Business Description Manufacturing and sales of home leisure equipment 228,635 2007 (million yen) 1,260 2008 1,440 2009 2010 77,621 690 (FY) 930 450 (yen) Our Response This year, we have taken a more global approach in our CSR report, which introduces many activities from Nintendo Group companies all over the world. We wanted to give more people the opportunity to learn about the superb efforts and insights of individual employees at Nintendo in pursuit of our companywide aim to “put smiles on the faces of everyone Nintendo touches.” Regarding the comments we received from Ms. Sonoda on these activities, we will continually consider what Nintendo can do to those affected by the Great East Japan Earthquake, and how we can tackle other CSR issues. Secretariat of CSR Promotion Project 49 50