Consolidated Results for the Six Months Ended September 30, 2013 (Prepared in Accordance with U.S. GAAP)

November 7, 2013

KONAMI CORPORATION

KONAMI CORPORATION hereby announces that our consolidated net revenues and consolidated operating income for the six-month period ended September 30, 2013 were ¥97,928 million (91.8 % of the same period in the previous year) and ¥3,771 million (30.0 % of the same period in the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥4,217 million (36.7 % of the same period in the previous year) and ¥2,016 million (29.0 % of the same period in the previous year), respectively.

In Digital Entertainment business, social media content including "DRAGON COLLECTION" showed steady progress. We also began to distribute new titles including "CROWS×WORST – Dynamite –" and "Sencolle Kizuna Cross" for the Japanese market and "Star Wars™: Force Collection" for overseas markets on applications stores in more than thirty countries, including the U.S. and U.K. These titles were released to favorable reviews. In addition, "Monster Retsuden ORECA BATTLE" received significant attention due to its monthly serial manga and connectivity feature with a smartphone app, both of which have boosted the market value of the series. Production of a "Monster Retsuden ORECA BATTLE" anime series has also been announced.

In Health & Fitness business, responding to customer demands for "easier ways to access and continue our services" and for "more customized pricing plans," we introduced new pricing plans and a new facility usage system. Customers are now able to easily access multiple facilities, and select a plan based on the number of times per week they need to use our services to meet their fitness goals at their own pace.

In Gaming & Systems business, we have expanded our lineup of premier products, each of which has taken user anticipation to a whole new level. This helped us attain record high second quarter net revenues and operating income. In the U.S. market, our main products including video slot machine "Podium" continued to show brisk sales. At Global Gaming Expo (G2E) 2013, we displayed a diverse range of gaming machines, each boasting what we believe is tremendous entertainment value, including "Podium Goliath," "Dragon's Law" and "Solstice Celebration" (both created for 3D-compatible next generation platform "KP3"), and the large-sized multi-station cabinet "Titan 360."

In Pachinko & Pachinko Slot Machines business, we released a new pachinko slot machine, "Contra 3D," an adaptation of the action video game title into a pachinko slot machine with impressive high-resolution 3D graphics.

1. Consolidated Results of Operation

(Millions of yen)
 
Six Months ended
September 30, 2013
Six Months ended
September 30, 2012
Net Revenues
97,928
106,673
Operating Income
3,771
12,563
Income Before
Income Taxes
4,217
11,488
Net income attributable
to KONAMI CORPORATION
2,016
6,955

2.Business Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachislot &
Pachinko Machines
Eliminations
Consolidated
Six Months ended
September 30, 2012
52,691
40,335
11,393
2,643
-389
106,673
Six Months ended
September 30, 2013
44,620
38,583
13,623
1,445
-343
97,928
% of previous year
84.7
95.7
119.6
54.7
-
91.8

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, 2012
11,699
1,364
2,850
210
-3,560
12,563
Six Months ended
September 30, 2013
3,704
687
3,039
-1,060
-2,599
3,771
% of previous year
31.7
50.4
106.6
-
-
30.0

4.Overview of the Six Months ended September 30, 2013

Digital Entertainment Business

  1. Social media content including "DRAGON COLLECTION" showed strong performance.
  2. Began distribution of new titles including "CROWS×WORST – Dynamite –," and "Sencolle Kizuna Cross" for the Japanese market and "Star Wars™: Force Collection" for overseas markets on applications stores in more than thirty countries, including the U.S. and U.K.
  3. Announced that "Monster Retsuden ORECA BATTLE" would be turned into an anime.
  4. YU-GI-OH! TRADING CARD GAME series showed strong performance.

Health & Fitness Business

  1. Introduced new pricing plans and a new facility usage system. Customers are now able to easily access multiple facilities, and select a plan based on the number of times per week they need to use our services to meet their fitness goals at their own pace.
  2. "MY Fit Planner" continued successfully promoting a healthy lifestyle for all of our customers by providing training methods and fitness routines that are customized to their individual needs.
  3. Contract-based business expanded steadily.

Gaming & Systems Business

  1. Video slot machines such as "Podium" have maintained popularity, and participation sales showed solid performance.
  2. At Global Gaming Expo(G2E) 2013, we displayed a diverse range of gaming machines, each boasting what we believe is tremendous entertainment value, including "Podium Goliath," "Dragon's Law" and "Solstice Celebration" (both created for 3D-compatible next generation platform "KP3"), and the large-sized multi-station cabinet "Titan 360."
  3. New casino management system "SYNKROS" gained high acclaim from operators.

Pachinko & Pachinko Slot Machines Business

  1. Released a new pachinko slot machine, "Contra 3D."

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