Exhibits 1 and 2 in the case provide performance information for Nintendo for the years 2015 and 2016. For each item listed below, calculate the rate of annual growth (or decline) from 2015 to 2016. All calculations should be rounded to the nearest hundredth (two decimal places such as 12.70). Total revenue.

EXHIBIT 1 Income Statement USD 112.3095PY as of March 31, 2016) Year Ended March 1 A1.2010 Malins of Millons of yen) 549,780 335.194 214,584 189.814 24.770 March (Metions of yen) 504,499 283.494 220.965 188,083 32.881 4464 2,508 1.965 1,514 250 4.690 41 4018 34,051 5.233 60 16 952 1.788 45043 6801 1883 1,168 14.550 10 128 205 106 0 162 Net sales Cost of sales Gross proft Selling general and administrative expenses Operating income Non operating income Interest income Foreign exchange gains Gain on redemption of securines Share of profit of entities accounted for ting equilty method Other Total non operating income Non operating expenses Sales discounts Foreign exchange losses Other Totalno operating expenses Ordinary income Extraordinary income Gain on sales of non-current assets Gain on sales of investment Securities Gain on sales of shares of subsidianes Total extraordinary locome Extraordinary losses Loss on disposal of non-current assets Restructuring loss Total extraordinary losses Profit before income taxes Income taxes-current Income taxas deterred Total income to Profit Protit tributable to non controlling interests Profitate butable to owners of parent 77 283 70530 18.356 178 18.641 28.750 1 164 9 398 3 3.689 3.737 407 3 351 3 446 1,729 2.176 72,091 25.922 4,305 30.228 41.862 1.130 1,482 27,715 2.482 8,714 11,197 16,518 10 13 245 21 77 99 146 0 18 41.843 16505 146 CASE NINTENDOS SWITCH 0155 MANY & Bach U12.2095 n 11, 2016) Year Ended MOTOR Miles of yeni Millions of Mito de Contact 570:48 18331 338892 10.433 $1,706 55.794 380.687 76.897 15.597 34,456 451) 1.097,597 6.591 342 2.999 357 58 233 22 9,036 Nates and accounts relevante Sincarte ventes Beforted tax assets Other Allowance for doubt accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures.net Machinery, equipment and vehicles.net Tools, furniture and fixtures, net Land 26,401 (369 1,021,135 353 42,447 1.330 4,730 9 39,977 1,120 3,791 42,553 309 87.752 -7925 33 376 2 776 st 83 11.190 1240 12.430 9.408 568 9,977 5 88 96.294 1.113 30958 284 Construction in progress Total property, plant and equipment Intangble assets Software Other Total intangible asset Investments and other assets Investment seconds Deferred tax assets Not defined benefit asset Other Total Investments and other assets Total non-current assets Totaiset Lebilities Current abilities Notes and accounts payable-trade Income taxes payable Provision for bonuses 9,174 15,399 151426 255,346 1,352,944 125,774 12.195 7,092 12.974 178,037 275,766 1.296,902 62 114 1.575 2,440 11.477 58,464 56,529 281 16 31.857 1878 2.294 62.407 20 552 67,018 continued C155 CASE 22: NINTENDO SWITCH EXHIBIT 2 Continued Year Ended March 31 Prowly As of March 25, 2016) (Mallons of yen) Millions of yeni (Millions of dollars) 144.232 96.437 871 25.416 15.729 41.155 185.387 23.546 14,017 37563 135,001 208 124 332 1.203 89 117 Tot current liabilities Non-current liabilities Net di fined benetabit Other Total non-current aboties Total abilities Net assets Shareholders' equity Capital stock Capital surplus Retained earnings Treasury shares Total shareholders' equity Accumulated other comprehensive income Valuation difference on avalo.for sale cu Foreign currency translation adjustment Total accumulated other comprehensive income Non-controlling interests Totalt assets Total abilities and net assets 10.065 11.734 1409,754 270.986 3.160.578 10.065 13.256 1401,359 (250,563) 1.174,118 12,401 12.217) 10,390 16571 19,800 105 1223) (118) 11,909 25.250 113.341) 124 1.160,901 1,296,902 1 10.273 11,477 1.352,944 Source: httplifinancaimm in 1979 and known as TV Game 15 and TV Game 6. In The Nintendo 64, like its predecessors, used cartridges to 1980 Nintendo developed the first portable LCD video play its games, but at the time the competing Sony and Sega game with a microprocessor. In 1985 Nintendo created systems were using CDs for game storage Cartridges could the Nintendo Entertainment System (NES), an 8-bit video store 64 megabytes of data, while CDs could store around game console. The original NES was very successful as its 700 megabytes. Also, CDs were much cheaper to manufac graphies were superior to any home based console available ture, distribute, and create the average cost of producing at the time. As a result, more than 60 million units were a Nintendo 64 cartridge was $25. compared to 10 cents to sold worldwide. The NES set the bar for subsequent con- produce a CD. Game producers passed the higher expense soles in platform design, as well as for accepting games that to the consumer, which explained why Nintendo 64 games were manufactured by third-party developers. tended to sell for higher prices than Sony PlayStation When competitors began developing 16-bit devices, such games. While most Sony PlayStation games rarely exceeded as Sega's Genesis system and NEC'S PC Engine, Nintendo $50, Nintendo 64 titles could reach $70. To increase profits responded with its own 16-bit system, the Super Nintendo and to take advantage of the programming possibilities of Entertainment System (SNES). The Super Nintendo was the larger storage space, many third-party game developers released in 1991 and, when purchased, came with one that had traditionally supported Nintendo platforms began game-Super Mario World. In 1996 Nintendo released creating games for systems that used a CD platform (such Nintendo 64 The Nintendo 64 was the company's third- as the PlayStation) 2001 Nintendo released its GameCube which was EXHIBIT 1 Income Statement USD 112.3095PY as of March 31, 2016) Year Ended March 1 A1.2010 Malins of Millons of yen) 549,780 335.194 214,584 189.814 24.770 March (Metions of yen) 504,499 283.494 220.965 188,083 32.881 4464 2,508 1.965 1,514 250 4.690 41 4018 34,051 5.233 60 16 952 1.788 45043 6801 1883 1,168 14.550 10 128 205 106 0 162 Net sales Cost of sales Gross proft Selling general and administrative expenses Operating income Non operating income Interest income Foreign exchange gains Gain on redemption of securines Share of profit of entities accounted for ting equilty method Other Total non operating income Non operating expenses Sales discounts Foreign exchange losses Other Totalno operating expenses Ordinary income Extraordinary income Gain on sales of non-current assets Gain on sales of investment Securities Gain on sales of shares of subsidianes Total extraordinary locome Extraordinary losses Loss on disposal of non-current assets Restructuring loss Total extraordinary losses Profit before income taxes Income taxes-current Income taxas deterred Total income to Profit Protit tributable to non controlling interests Profitate butable to owners of parent 77 283 70530 18.356 178 18.641 28.750 1 164 9 398 3 3.689 3.737 407 3 351 3 446 1,729 2.176 72,091 25.922 4,305 30.228 41.862 1.130 1,482 27,715 2.482 8,714 11,197 16,518 10 13 245 21 77 99 146 0 18 41.843 16505 146 CASE NINTENDOS SWITCH 0155 MANY & Bach U12.2095 n 11, 2016) Year Ended MOTOR Miles of yeni Millions of Mito de Contact 570:48 18331 338892 10.433 $1,706 55.794 380.687 76.897 15.597 34,456 451) 1.097,597 6.591 342 2.999 357 58 233 22 9,036 Nates and accounts relevante Sincarte ventes Beforted tax assets Other Allowance for doubt accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures.net Machinery, equipment and vehicles.net Tools, furniture and fixtures, net Land 26,401 (369 1,021,135 353 42,447 1.330 4,730 9 39,977 1,120 3,791 42,553 309 87.752 -7925 33 376 2 776 st 83 11.190 1240 12.430 9.408 568 9,977 5 88 96.294 1.113 30958 284 Construction in progress Total property, plant and equipment Intangble assets Software Other Total intangible asset Investments and other assets Investment seconds Deferred tax assets Not defined benefit asset Other Total Investments and other assets Total non-current assets Totaiset Lebilities Current abilities Notes and accounts payable-trade Income taxes payable Provision for bonuses 9,174 15,399 151426 255,346 1,352,944 125,774 12.195 7,092 12.974 178,037 275,766 1.296,902 62 114 1.575 2,440 11.477 58,464 56,529 281 16 31.857 1878 2.294 62.407 20 552 67,018 continued C155 CASE 22: NINTENDO SWITCH EXHIBIT 2 Continued Year Ended March 31 Prowly As of March 25, 2016) (Mallons of yen) Millions of yeni (Millions of dollars) 144.232 96.437 871 25.416 15.729 41.155 185.387 23.546 14,017 37563 135,001 208 124 332 1.203 89 117 Tot current liabilities Non-current liabilities Net di fined benetabit Other Total non-current aboties Total abilities Net assets Shareholders' equity Capital stock Capital surplus Retained earnings Treasury shares Total shareholders' equity Accumulated other comprehensive income Valuation difference on avalo.for sale cu Foreign currency translation adjustment Total accumulated other comprehensive income Non-controlling interests Totalt assets Total abilities and net assets 10.065 11.734 1409,754 270.986 3.160.578 10.065 13.256 1401,359 (250,563) 1.174,118 12,401 12.217) 10,390 16571 19,800 105 1223) (118) 11,909 25.250 113.341) 124 1.160,901 1,296,902 1 10.273 11,477 1.352,944 Source: httplifinancaimm in 1979 and known as TV Game 15 and TV Game 6. In The Nintendo 64, like its predecessors, used cartridges to 1980 Nintendo developed the first portable LCD video play its games, but at the time the competing Sony and Sega game with a microprocessor. In 1985 Nintendo created systems were using CDs for game storage Cartridges could the Nintendo Entertainment System (NES), an 8-bit video store 64 megabytes of data, while CDs could store around game console. The original NES was very successful as its 700 megabytes. Also, CDs were much cheaper to manufac graphies were superior to any home based console available ture, distribute, and create the average cost of producing at the time. As a result, more than 60 million units were a Nintendo 64 cartridge was $25. compared to 10 cents to sold worldwide. The NES set the bar for subsequent con- produce a CD. Game producers passed the higher expense soles in platform design, as well as for accepting games that to the consumer, which explained why Nintendo 64 games were manufactured by third-party developers. tended to sell for higher prices than Sony PlayStation When competitors began developing 16-bit devices, such games. While most Sony PlayStation games rarely exceeded as Sega's Genesis system and NEC'S PC Engine, Nintendo $50, Nintendo 64 titles could reach $70. To increase profits responded with its own 16-bit system, the Super Nintendo and to take advantage of the programming possibilities of Entertainment System (SNES). The Super Nintendo was the larger storage space, many third-party game developers released in 1991 and, when purchased, came with one that had traditionally supported Nintendo platforms began game-Super Mario World. In 1996 Nintendo released creating games for systems that used a CD platform (such Nintendo 64 The Nintendo 64 was the company's third- as the PlayStation) 2001 Nintendo released its GameCube which was