Consolidated Results for the Six Months Ended September 30, 2014 (Prepared in Accordance with U.S. GAAP)

November 6, 2014

KONAMI CORPORATION

KONAMI CORPORATION hereby announces that the consolidated net revenues and operating income for the six-month period ended September 30, 2014 were ¥98,719 million (100.8% of the same period in the previous year) and ¥5,858 million (155.3% of the same period in the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥6,163 million (146.2% of the same period in the previous year) and ¥3,276 million (162.5% of the same period in the previous year), respectively.

In Digital Entertainment business, mobile games, including DRAGON COLLECTION and the World Soccer Collection series, continued to enjoy steady sales with solid growth in the number of native app downloads, which led to an increase in operating income compared to the same period in the previous year.

In Health & Fitness business, we made continued efforts to expand the number of facilities offering fitness programs including the "OyZ" exercise class program directed towards those over sixty years of age and low-intensity studio lessons designed to help prevent locomotive syndrome.

In Gaming & Systems business, the "Podium" video slot machine, which has become a staple product, continued to enjoy favorable sales.

In Pachinko & Pachinko Slot Machines business, the pachinko slot machine "MAH-JONG FIGHT CLUB" continued to receive additional orders spurred by its high operating ratio at pachinko parlors.

1. Consolidated Results of Operation

(Millions of yen)
 
Six Months ended
September 30, 2014
Six Months ended
September 30, 2013
Net
Revenues
98,719
97,928
Operating
Income
5,858
3,771
Income Before
Income Taxes
6,163
4,217
Net income attributable to
KONAMI CORPORATION
3,276
2,016

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, 2013
44,620
38,583
13,623
1,445
-343
97,928
Six Months ended
September 30, 2014
43,993
36,959
13,640
4,473
-346
98,719
% of previous year
98.6
95.8
100.1
309.6
-
100.8

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, 2013
3,704
687
3,039
-1,060
-2,599
3,771
Six Months ended
September 30, 2014
6,207
275
2,006
-610
-2,020
5,858
% of previous year
167.6
40.0
66.0
-
-
155.3

4.Overview of the Six Months ended September 30, 2014

Digital Entertainment Business

  1. Solid repeat sales of "METAL GEAR SOLID V: GROUND ZEROES"
  2. Strong sales of mobile games driven by titles including DRAGON COLLECTION and the World Soccer Collection series with solid growth in the number of native app downloads
  3. Staple recurring revenues from "e-AMUSEMENT Participation" and other arcade games
  4. Launched new Yu-Gi-Oh! TRADING CARD GAME series to go along with the new TV cartoon show

Health & Fitness Business

  1. Expanded the number of facilities offering the "OyZ" exercise class program targeting those over sixty years of age and low-intensity studio lessons designed to help prevent locomotive syndrome
  2. Added 32 new contract-based clubs

Gaming & Systems Business

  1. Solid sales of the "Podium" video slot machine continued, owing to its establishment as a staple product
  2. Showcased at trade shows an array of products including "Neo Contra," a slot machine based on KONAMI's popular action game IP, and "Dungeons & Dragons," a slot machine based on the world-famous role-playing game
  3. Casino management system "SYNKROS" well-reputed by casino operators

Pachinko & Pachinko Slot Machines Business

  1. Received solid repeat orders for the pachinko slot machine "MAH-JONG FIGHT CLUB" due to its high operating ratio at pachinko parlors
  2. Launched the Konami Group's first ever pachinko machine title "CR PACHINKO MAGICAL HALLOWEEN"

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