Consolidated Results for the Year Ended March 31, 2014
(Prepared in Accordance with U.S. GAAP)

May 8, 2014

KONAMI CORPORATION

KONAMI CORPORATION hereby announces that our consolidated net revenues and operating income for the year ended March 31, 2014 were ¥217,595 million (96.3% of the same period in the previous year) and ¥10,257 million (46.9% of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥11,789 million (53.8% of the same period in the previous year) and ¥6,206 million (47.1% of the same period in the previous year), respectively.

In Digital Entertainment business, with improving performance in mobile devices due to the rapid spread of smart phones and tablet PCs and development of information and telecommunications infrastructure, game platforms are further diversifying, and as new game consoles are being released, business opportunities in the game industry continue to expand. Social media content including "DRAGON COLLECTION" showed steady progress. "METAL GEAR SOLID V: GROUND ZEROES," the latest title in the METAL GEAR series and our first release for PlayStation 4 and Xbox One, received favorable reviews around the globe.

In Health & Fitness business, we booked impairment loss on identifiable intangible fixed assets of more than ¥2 billion, which caused an operating loss.

In Gaming & Systems business, sales of products such as the "Podium" video slot machine and the "Advantage" mechanical slot machine series continue to be steady mainly in the U.S. market. Meanwhile, consolidated results for the fiscal year in this segment have achieved record high net revenues and operating income.

In Pachinko & Pachinko Slot Machines business, we released new pachinko slot machines "MAGICAL HALLOWEEN 4" and "GEKITO! SAIYUKI," which received high acclaim from users.

1.Consolidated Results of Operation

(Millions of yen)
 
Year ended
March 31, 2014
Year ended
March 31, 2013
Net Revenues
217,595
225,995
Operating Income
10,257
21,875
Income Before
Income Taxes
11,789
21,915
Net income attributable
to KONAMI CORPORATION
6,206
13,174

2.Business Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachislot &
Pachinko Machines
Eliminations
Consolidated
Year ended
March 31, 2013
116,366
79,896
24,984
5,398
-649
225,995
Year ended
March 31, 2014
104,335
76,511
31,600
5,788
-639
217,595
% of previous year
89.7
95.8
126.5
107.2
96.3

3.Business Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachislot &
Pachinko Machines
Corporate and Eliminations
Consolidated
Year ended
March 31, 2013
21,163
3,014
5,606
-1,166
-6,742
21,875
Year ended
March 31, 2014
11,738
-1,463
7,321
-1,911
-5,428
10,257
% of previous year
55.5
130.6
46.9

4. Overview for the year ended March 31, 2014

Digital Entertainment Business

  1. Content for social networks, including the DRAGON COLLECTION, SENGOKU COLLECTION, Professional Baseball Dream Nine, World Soccer Collection, and CROWS × WORST series continued to enjoy steady sales and contributed to our revenue. The number of registered users of smartphone game "Star Wars™: Force Collection," which we are distributing in overseas markets, surpassed 3 million players as of March 31, 2014.
  2.  In the console games sector, we released the lastest title in the WORLD SOCCER Winning Eleven series, "WORLD SOCCER Winning Eleven 2014" (known in the U.S. and Europe as Pro Evolution Soccer 2014), in Japan after its release in the U.S. and Europe, and released the latest title in the METAL GEAR series, "METAL GEAR SOLID V: GROUND ZEROES," around the globe.
  3. The total number of cards shipped for use with kids' card game machine "Monster Retsuden ORECA BATTLE" has surpassed 50 million. Furthermore, we held the KONAMI Arcade Championship 2013, a competition to decide the ultimate champions of KONAMI arcade games, in which approximately 170,000 players from around the country participated in 20 categories. This contributed to improved content-value.
  4. The Yu-Gi-Oh! TRADING CARD GAME series continued to perform strongly and contributed to our revenue due to its strong popularity in the global market.

Health & Fitness Business

  1. Booked impairment loss on identifiable intangible fixed assets of more than ¥2 billion.
  2. 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.
  3. Started offering a new fitness program "OyZ," which mainly targets senior citizens over sixty years of age to prevent locomotive syndrome.
  4. We also developed the "KONAMI METHOD" under the supervision of a brain scientist, incorporating both scientific research regarding how to keep up with exercises, and the KONAMI Group's accumulated know-how relating to exercises and health promotion. We hope this method will help more customers attain their fitness goals.
  5. With regards to the management of facilities outsourced to Konami Group, we used our know-how and accomplishments accumulated to date in the fields of operation and guidance to commence management of 17 public sports facilities, enabling us to further support the healthy lifestyles of the local community.

Gaming & Systems Business

  1. In the North American market, the "Podium" video slot machine, which has become a stable item, and the "Advantage" mechanical slot machine series continued to enjoy favorable sales.
  2. "SYNKROS," the new-generation casino management system enhanced with various new functions compared to its predecessor, gained high acclaim from operators.
  3. At the International Casino Exhibition 2014 in London, UK, one of the biggest exhibitions in Europe, we displayed linked progressive gaming machines, including the first showing of "Dragon's Victory" and "SeleXion," in Europe, which gained high acclaim from operators in Europe and around the globe.

Pachinko & Pachinko Slot Machines

  1. Released a new pachinko slot machine, "MAGICAL HALLOWEEN 4," the latest title in the MAGICAL HALLOWEEN series (KONAMI original content), plus "GEKITO! SAIYUKI," which features our first moving gimmicks and the new "Accel. AT." technology. Both of these received 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.