Consolidated Results for the Nine Months Ended December 31, 2013
(Prepared in Accordance with U.S. GAAP)

February 6, 2014

KONAMI CORPORATION

KONAMI CORPORATION hereby announces that our consolidated net revenues and operating income for the nine months ended December 31, 2013 were ¥155,946 million (97.4% of the same period in the previous year) and ¥7,388 million (49.5% of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥9,174 million (62.5% of the same period in the previous year) and ¥5,055 million (57.3% of the same period of the previous year), respectively.

In Digital Entertainment business, social media content including "DRAGON COLLECTION" showed steady progress. The various Konami app content series have enjoyed a steady increase in users due to the development of native applications for smart devices, such as "Star Wars™: Force Collection," which we are distributing in overseas markets, and domestic releases "WORLD SOCCER COLLECTION S" and "Professional Baseball Dream Nine SUPERSTARS." In the console game software sector, "JIKKYOU PAWAFURU PUROYAKYU 2013" received favorable reviews including for its downloadable content.

In Health & Fitness business, based on the concept "easy to continue," we updated our Konami Sports Club services and introduced a new pricing plan, which enables customers to select a pricing plan based on the number of times they use our facilities. We also made it easier for customers to use more than one facility, again contributing to the promotion and expansion of services in support of the concept "easy to continue."

In Gaming & Systems business, we have expanded our lineup of premier products, which have been met with high expectations from players. This helped us attain record high third quarter net revenues and operating income. We also launched "SYNKROS," a new-generation Konami Casino Management System enhanced with various new functions, which has been very well received by casino operators. At SAGSE 2013, the South American casino industry's premier trade expo held in Buenos Aires, Argentina, we displayed a range of high-entertainment-value gaming machines, including the first showing of "Podium Goliath" in South America, plus the multi-game-series-compatible cabinet "SeleXion," and "Mystical Merrow," which was created for the 3D-compatible next-generation platform "KP3." These exhibits received positive reviews.

In Pachinko and Pachinko Slot Machines business, we released a new pachinko slot machine, "MAGICAL HALLOWEEN 4," the latest title in the MAGICAL HALLOWEEN series (Konami original content), which received high acclaim from users.

1.Consolidated Results of Operation

(Millions of yen)
 
Nine Months ended
December 31, 2013
Nine Months ended
December 31, 2012
Net Revenues
155,946
160,151
Operating Income
7,388
14,920
Income Before
Income Taxes
9,174
14,672
Net income attributable
to KONAMI CORPORATION
5,055
8,821

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, 2012
80,568
60,022
16,599
3,454
-492
160,151
Nine Months ended
December 31, 2013
71,601
57,496
22,297
5,038
-486
155,946
% of previous year
88.9
95.8
134.3
145.9
-
97.4

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, 2012
15,584
2,066
3,597
-853
-5,474
14,920
Nine Months ended
December 31, 2013
5,923
917
5,525
-610
-4,367
7,388
% of previous year
38.0
44.4
153.6
-
-
49.5

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

Digital Entertainment Business

  1. Social media content including "DRAGON COLLECTION" showed strong performance.
  2. Number of registered app users has increased steadily due to titles such as "Star Wars™: Force Collection," distributed in overseas markets, and domestic titles "WORLD SOCCER COLLECTION S" and "Professional Baseball Dream Nine SUPERSTARS."
  3. In the console game software sector, "JIKKYOU PAWAFURU PUROYAKYU 2013," received favorable reviews including for its downloadable content.
  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. As part of "MY Fit Planner," a counseling system offering the most suitable training method and a continuous fitness life plan for each customer, we added a new way for customers to check the frequency of their training in order to offer training programs which let even light-using customers continue easily and start feeling the effects of their training.
  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. New casino management system "SYNKROS" gained high acclaim from operators.
  3. At SAGSE 2013, the South American casino industry's premier trade expo held in Buenos Aires, Argentina, we displayed a range of high-entertainment-value gaming machines, including the first showing of "Podium Goliath" in South America, plus the multi-game-series-compatible cabinet "SeleXion," and "Mystical Merrow," which was created for the 3D-compatible next-generation platform "KP3."

Pachinko & Pachinko Slot Machines Business

  1. Released a new pachinko slot machine, "MAGICAL HALLOWEEN 4," the latest title in the MAGICAL HALLOWEEN series, which gained high acclaim from users.

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