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Nintendo president Tatsumi Kimishima has said the company must watch developments resulting from the UK’s vote to leave the EU very closely so that it can prepare to take action if needed.
“The ‘leave’ vote has destabilised stock markets and financial markets. The decision to leave the EU and the ongoing preparations for doing so will gradually lead to a stabilization in financial markets and exchange rates, but it is clear that the yen is trending strong for now,” explained Kimishima.
He added: “The book value of Nintendo’s assets denominated in foreign currencies will take a hit compared to last fiscal year-end due to foreign exchange losses if the strong yen continues, and this could have an impact on our earnings. We will need to keep a close eye on the way events unfold.”
Furthermore, Kimishima says Nintendo’s UK base may affected by the Brexit vote.
“Another conceivable impact of the Brexit vote is that Nintendo has a base in the UK and sell goods from there,” he explains. “Tax systems, product safety standards and rules, information privacy, and all sorts of other agreements are established by the EU for all of Europe, and at this point in time nobody knows how those agreements would change if the UK were to leave.
“For now, what we need to do is closely watch developments and prepare appropriate measures.”
The UK voted to leave the EU last month, but it remains unclear when the process to leave will be formerly started.
Source: Nintendo meeting of shareholders
