Consolidated Results for the Year ended March 31, 2011 (Prepared in Accordance with U.S. GAAP)

May 12, 2011

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and operating income for the year ended March 31, 2011 were ¥257,988 million (98.4% of the same period in the previous year) and ¥20,791 million (111.4% of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥19,082 million (111.4% of the same period in the previous year) and ¥12,934 million (97.1% of the same period of the previous year), respectively.

Consolidated results for the fiscal year have roughly met their earnings forecast, with the exception of Health & Fitness business where unexpected repair costs of facilities were incurred caused by the Great East Japan Earthquake.

In the Gaming & Systems business, we achieved record high net revenues and operating income due to solid sales of slot machines, despite the impact of the yen appreciation.

In the Digital Entertainment buseiness, social games generated strong sales. DRAGON COLLECTION, which remained the top-ranking GREE title for 23 straight weeks (as of the end of March, 2011) and SENGOKU COLLECTION, distributed on Mobage-town won favorable recognitions. Additionally, sales were solid for the latest versions of our highly popular METAL GEAR series, Winning Eleven / Pro Evolution Soccer series and LOVEPLUS series.

In the Pachinko & Pachinko Slot Machines buseiness, pachinko slot machines utilizing KONAMI Group's content such as Castlevania II showed brisk sales.

Despite the increase in profitability resulting from the improvement of operational efficiency in our directly- managed facilities, the Health & Fitness business made losses as a result of 4.4 billion yen impact from the Great East Japan Earthquake.

1. Consolidated Results of Operation

(Millions of yen)
 
Year ended
March 31, 2011
Year ended
March 31, 2010
Net Revenues
257,988
262,144
Operating Income
20,791
18,664
Income Before
Income Taxes
19,082
17,122
Net income attributable
to KONAMI CORPORATION
12,934
13,314

2.Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Gaming & Systems
Pachislot &
Pachinko Machines
Health & Fitness
Eliminations
Consolidated
Year ended
March 31, 2010
142,650
19,996
14,429
85,765
-696
262,144
Year ended
March 31, 2011
133,124
21,868
17,987
85,911
-902
257,988
% of previous year
93.3
109.4
124.7
100.2
-
98.4

3.Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Gaming & Systems
Pachislot &
Pachinko Machines
Health & Fitness
Corporate and Eliminations
Consolidated
Year ended
March 31, 2010
21,483
4,673
2,852
-1,922
-8,422
18,664
Year ended
March 31, 2011
17,025
6,448
6,199
-2,545
-6,336
20,791
% of previous year
79.2
138.0
217.4
-
-
111.4

4.Overview of the year ended March 31, 2011

Digital Entertainment Business

  1. SNS game "DRAGON COLLECTION," launched in September 2010, remained the top-ranking GREE title for 23 straight weeks and received the "Best Overall Application Award."
  2. "SENGOKU COLLECTION," a warlord social game in which players aims to become a shogun ruler, commenced on Mobage-town in December 2010.
  3. Launched "METAL GEAR SOLID PEACE WALKER" as the first sequel in the METAL GEAR series for the PSP.
  4. Released "Winning Eleven 3DSoccer" (known in the US and Europe as PES 2011- Pro Evolution Soccer 2011 3D) in time with the launch of NINTENDO 3DS. The game's 3D graphics add an enhanced degree of realism that makes users feel as if they are really playing on the soccer field.
  5. Released "LOVEPLUSPLUS," a romance communication game that implements the gameplay of its hit predecessor, which features a brand new event.

Gaming & Systems Business

  1. Solid sales of video slot machine "Podium."
  2. Continuous increase in sales from participation agreements.
  3. Expanded sales network and extended partnership with official distributors in Central and South American, European and Asian markets.

Pachinko & Pachinko Slot Machines Business

  1. Launched pachinko slot machines based on KONAMI Group's content such as "Castlevania II," "Gokuraku Parodius" and "GENSO SUIKODEN."
  2. "Magical Halloween 2," a model rolled out in the previous fiscal year continued to show brisk sales
  3. Consolidated Takasago Electric Industry Co., Ltd. (formerly Abilit Corporation) to strength and expand the business.

Health & Fitness Business

  1. Added three new directly operated clubs (Niigata, Kami-Ooka and Nishioji-Oike), and 36 new contract-based clubs.
  2. Opened the "Konami Sports Club Golf Academy", which offers an unprecedented golf instruction service that combines KONAMI’s fitness instruction know-how, its teaching theories and state-of-the art golf swing analysis technology. The academy is being introduced sequentially at Konami Sports Clubs nationwide.
  3. Booked approximately 4.4 billion yen for repairing costs due to the damage from the Great East Japan Earthquake.

*Statements made in this news release reflect information available on the date of its announcement, and is subject to change without prior notice.