Consolidated Results for the nine months ended December 31, 2012 (Prepared in Accordance with U.S. GAAP)

February 7, 2013

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and operating income for the nine months ended December 31, 2012 were ¥160,151 million ( 82.3 % of the same period in the previous year) and ¥14,920 million ( 48.3 % of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥14,672 million ( 48.9 % of the same period in the previous year) and ¥8,821 million ( 51.7 % of the same period of the previous year), respectively.

Consolidated net revenues and operating income for the nine months decreased year on year due to the release postponement of a major title in Pachinko & Pachinko Slot Machines business.

In Digital Entertainment business, we began offering our social media content such as DRAGON COLLECTION on various devices and platforms and the total number of registered users for Konami Group's social games surpassed 34 million. 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 Japan in October and recorded strong sales. In amusement arcade video games, Monster Retsuden ORECA BATTLE continued to enjoy favorable sales mainly due to its great popularity primarily among elementary school-age boys. Its groundbreaking features include the ability to obtain the users’ own original cards.

In Health & Fitness business, a new counseling service, MY Fit Planner, was introduced at Konami Sports Clubs nationwide in November, in addition to supporting activities to improve the health and physical condition of our members according to their needs.

In Gaming & Systems business, the Podium video slot machine and the Advantage mechanical slot machine series continued to enjoy favorable sales mainly in the North American market.

In Pachinko & Pachinko Slot Machines business, we released a new pachinko slot machine product Rumble Roses 3D.

1.Consolidated Results of Operation

(Millions of yen)
 
Nine Months ended
December 31, 2012
Nine Months ended
December 31, 2011
Net Revenues
160,151
194,522
Operating Income
14,920
30,921
Income Before
Income Taxes
14,672
30,018
Net income attributable
to KONAMI CORPORATION
8,821
17,046

2.Business Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachislot &
Pachinko Machines
Eliminations
Consolidated
Nine Months ended
December 31, 2011
99,464
62,052
18,103
15,559
-656
194,522
Nine Months ended
December 31, 2012
80,568
60,022
16,599
3,454
-492
160,151
% of previous year
81.0
96.7
91.7
22.2
-
82.3

3.Business Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachislot &
Pachinko Machines
Corporate and Eliminations
Consolidated
Nine Months ended
December 31, 2011
24,289
2,050
5,065
3,818
-4,301
30,921
Nine Months ended
December 31, 2012
15,584
2,066
3,597
-853
-5,474
14,920
% of previous year
64.2
100.8
71.0
-
-
48.3

4.Overview of the nine months ended December 31, 2013

Digital Entertainment Business

  1. Began to distribute SNS game "DRAGON COLLECTION" as a native application for iOS devices.
  2. Released "METAL GEAR SOLID SOCIAL OPS," the first content for social networks ever in the METAL GEAR series.
  3. The release of "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, recorded strong sales.
  4. A card game machine title "Monster Retsuden ORECA BATTLE" enjoyed favorable sales due to its great popularity primarily among elementary school-age boys.

Health & Fitness Business

  1. Launched and implemented a new brand OyZ, which mainly targets senior citizens over sixty years old, at four Konami Sports Club facilities.
  2. Introduced a new counseling service, MY Fit Planner, at Konami Sports Clubs nationwide which enables to offer the most suitable training method and a continuous fitness life plan for our customers.

Gaming & Systems Business

  1. The "Podium" video slot machine and the mechanical slot machine Advantage series continued to show favorable sales in the U.S. market.
  2. Stable sales through participation agreements (in which profits are shared with casino operators).

Pachinko & Pachinko Slot Machines Business

  1. Released a new pachinko slot machine Rumble Roses 3D , featuring glasses-free 3D LCD.

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