Consolidated Results for the Year ended March 31, 2013 (Prepared in Accordance with U.S. GAAP)

May 9, 2013

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and operating income for the year ended March 31, 2013 were ¥225,995 million (85.0% of the same period in the previous year) and ¥21,875 million (53.4% of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥21,915 million (54.8% of the same period in the previous year) and ¥13,174 million (57.2% of the same period of the previous year), respectively.

Consolidated results for the fiscal year 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 media content surpassed 35 million. 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. Computer and video games saw releases of WORLD SOCCER Winning Eleven 2013 (known in the U.S. and Europe as Pro Evolution Soccer 2013), the latest title from the Winning Eleven series, and METAL GEAR RISING REVENGEANCE, the latest title from the METAL GEAR series, both of which received favorable reviews.

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

In Gaming & Systems business, we expanded our lineup of premium products such as Podium Goliath, which increased the size of the Podium cabinet. We also launched SYNKROS, a new-generation casino management system, with enhanced functions.

In Pachinko & Pachinko Slot Machines business, we released SENGOKU COLLECTION, which leverage for the first time our popular content for social networks into pachinko slot machines. We also launched SKYGIRLS- Yoroshiku! Zero, the first device of MEBIUSTAR which was a new cabinet entirely illuminated in full-color crystal LED, which recorded favorable performance.

1.Consolidated Results of Operation

(Millions of yen)
 
Year ended
March 31, 2013
Year ended
March 31, 2012
Net Revenues
225,995
265,758
Operating Income
21,875
40,950
Income Before
Income Taxes
21,915
40,026
Net income attributable
to KONAMI CORPORATION
13,174
23,012

2.Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachislot &
Pachinko Machines
Eliminations
Consolidated
Year ended
March 31, 2012
140,400
82,555
25,212
18,430
-839
265,758
Year ended
March 31, 2013
116,366
79,896
24,984
5,398
-649
225,995
% of previous year
82.9
96.8
99.1
29.3
-
85.0

3.Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachislot &
Pachinko Machines
Corporate and Eliminations
Consolidated
Year ended
March 31, 2012
33,021
2,829
6,656
4,179
-5,735
40,950
Year ended
March 31, 2013
21,163
3,014
5,606
-1,166
-6,742
21,875
% of previous year
64.1
106.5
84.2
-
-
53.4

4.Overview of the year ended March 31, 2013

Digital Entertainment Business

  1. Began to distribute social media content DRAGON COLLECTION as a native application for iOS devices.
  2. Card game machine title Monster Retsuden ORECA BATTLE enjoyed favorable sales due to its great popularity primarily among elementary school-age boys.
  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. Released METAL GEAR RISING REVENGEANCE, the latest title from the METAL GEAR series, to favorable reviews.

Health & Fitness Business

  1. Launched and implemented a new brand OyZ, which mainly targets senior citizens of over sixty years old.
  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.
  3. Renewed BIOMETRICS, which is a popular program that offers the most suitable plan for body making. This program meets the needs of customers who would like to see results in short time.

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. Expanded our lineup of products such as Podium Goliath, which increased the size of the Podium cabinet.
  3. Launched SYNKROS, a new generation casino management system, enhanced with various new functions.

Pachinko & Pachinko Slot Machines

  1. Released SENGOKU COLLECTION, which leverages for the first time our popular content for social networks into pachinko slot machines, which recorded favorable performance.
  2. Launched SKYGIRLS- Yoroshiku! Zero, the first device of MEBIUSTAR which was a new cabinet entirely illuminated in full-color crystal LED, receiving favorable reviews.

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