Consolidated Results for the Six Months Ended September 30, 2012 (Prepared in Accordance with U.S. GAAP)

November 1, 2012

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and consolidated operating income for the six months ended September 30, 2012 were ¥106,673 million (86.7 % of the same period in the previous year) and ¥12,563 million (62.2 % of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥11,488 million (59.3 % of the same period in the previous year) and ¥6,955 million (60.7% of the same period of the previous year), respectively.

Each business segments achieved their targeted plan, resulting in the steady progression of business performance for the second quarter.

The Digital Entertainment business showed brisk sales in step with growth in social games such as DRAGON COLLECTION and the total number of registered users for Konami Group's social games surpassed 26 million users. In computer and video games, WORLD SOCCER Winning Eleven 2013 (known in the U.S. and Europe as Pro Evolution Soccer 2013), the latest title in the Winning Eleven series, was released in the U.S. and Europe in September and performed strongly. In amusement video games, several titles generated steady results, including MAH-JONG FIGHT CLUB ultimate version, a title adopting the e-AMUSEMENT Participation system, under which user’s playing fees are shared with arcade operators. The popular card game series YU-GI-OH! TRADING CARD GAME also generated steady results.

In Health & Fitness business, all four athletes selected to represent Japan from the KONAMI swimming and gymnastics teams won medals at the London Olympics. Konami Sports Clubs enhanced the visibility of its new concept "Total Health Partner" through a groupwide supporters’ event and TV commercials, along with the surge in Olympic news.

In the Gaming & Systems business, we continued to maintain a record high net revenues and operating income for the second quarter despite the appreciation of the yen. Our video slot machine Podium continued to enjoy favorable sales.

In the Pachinko & Pachinko Slot Machines business, we released SENJIN UESUGI KENSHIN with a theme of warriors in Japan's civil wars period.

1. Consolidated Results of Operation

(Millions of yen)
 
Six Months ended
September 30, 2012
Six Months ended
September 30, 2011
Net Revenues
106,673
123,096
Operating Income
12,563
20,185
Income Before
Income Taxes
11,488
19,375
Net income attributable
to KONAMI CORPORATION
6,955
11,462

2.Business Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachinko &
Pachinko Slot Machines
Eliminations
Consolidated
Six Months ended
September 30, 2011
58,110
41,578
10,543
13,325
-460
123,096
Six Months ended
September 30, 2012
52,691
40,335
11,393
2,643
-389
106,673
% of previous year
90.7
97.0
108.1
19.8
-
86.7

3.Business Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachislot &
Pachinko Machines
Corporate and Eliminations
Consolidated
Six Months ended
September 30, 2011
15,107
1,085
2,753
3,689
-2,449
20,185
Six Months ended
September 30, 2012
11,699
1,364
2,850
210
-3,560
12,563
% of previous year
77.4
125.7
103.5
5.7
-
62.2

4.Overview of the Six Months ended September 30, 2012

Digital Entertainment Business

  1. SNS game "DRAGON COLLECTION" saw membership top 6.5 million players, maintained the top-ranking position on GREE.
  2. "DRAGON COLLECTION" was awarded the Hall of Fame with Special Honors and "CROWS × WORST-Saikyo Densetsu" received the Best Overall Application Award at the GREE Platform Award - The First Half of 2012, which recognizes outstanding content.
  3. Released "WORLD SOCCER Winning Eleven 2013" (known in the U.S. and Europe as "Pro Evolution Soccer 2013"), the latest title in the Winning Eleven series, was released in the U.S. and Europe in September and performed strongly.
  4. Arcade videogame "MAH-JONG FIGHT CLUB" which adopted the e-AMUSEMENT Participation (user’s playing fees are shared with amusement arcade operators) enjoyed favorable sales.
  5. Popular card game "YU-GI-OH! TRADING CARD GAME" continued to perform strongly.

Health & Fitness Business

  1. Introduced a new concept, "Total Health Partner," with the aim of establishing ourselves as a leading provider of new health-themed services, not only providing places for exercise but also addressing the wide range of health needs of all of our customers, from children to senior citizens.
  2. Launched "Active Check," a new service that evaluates an individual’s physical fitness based on ultrasonographic and muscular strength measurement data to provide exercise guidance.
  3. Added twelve new contract-based clubs.

Gaming & Systems Business

  1. The "Podium" video slot machine and the mechanical slot machine "Advantage 5" series continued to enjoy favorable sales in the U.S. market.
  2. Sales through participation agreements (in which profits are shared with casino operators) increased and are steadily expanding in terms of market share.
  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 our popular series sequel "SPYGIRL2."
  2. Released "SENJIN UESUGI KENSHIN" which is centered around warriors in Japan’s civil wars period, a popular theme among fans of these machines.

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