Consolidated Results for the Year Ended March 31, 2015
(Prepared in Accordance with U.S. GAAP)

May 8, 2015

KONAMI CORPORATION

KONAMI CORPORATION hereby announces that the consolidated net revenues and operating income for the year ended March 31, 2015 were ¥218,157 million (100.3% of the same period in the previous year) and ¥14,451 million (187.8% of the same period in the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥15,947 million (172.8% of the same period in the previous year) and ¥9,479 million (247.3% of the same period in the previous year), respectively.

In Digital Entertainment business, the number of titles sold decreased based on a policy of selection and concentration due to diversifying consumer preferences, which led to a decrease in net revenues compared to the same period in the previous year. Meanwhile, mobile games for smart devices including smartphones and tablets, such as "JIKKYOU PAWAFURU PUROYAKYU" and "WORLD SOCCER COLLECTION S," continued to enjoy steady sales, which contributed to an increase in operating income compared to the same period in the previous year.

In Health & Fitness business, we refurbished our facilities in order to meet customer needs, and also made ongoing efforts to promote and spread services at Konami Sports Clubs in support of the concept of "sustainable fitness." Although we continued to endeavor to increase profitability by closing unprofitable outlets which were not expected to grow, this business reported an operating loss due to impairment charges for property and equipment and others of ¥2,300 million.

In Gaming & Systems business, the "Podium" video slot machine, which has become a staple product, continued to enjoy favorable sales. In addition, we strived to further strengthen product development in accordance with expansion of the product lineup, and enhance our approach to services such as maintenance.Income for this business, however, decreased compared to the same period in the previous year, mainly due to increases in product approval fees and advance investments including the construction of the second factory, against a backdrop of decreasing demand in the North American market.

In Pachislot & Pachinko Machines business, sales of "SENGOKU COLLECTION 2," a pachislot machine released during this fiscal year, continued to be favorable. This mainly contributed to an increase in net revenues and operating income of the business compared to the same period in the previous year.


1. Consolidated Results of Operation

(Millions of yen)
 
Year ended
March 31, 2015
Year ended
March 31, 2014
Net Revenues
218,157
217,595
Operating Profit
14,451
7,696
Income Before
Income Taxes
15,947
9,228
Net income attributable
to KONAMI CORPORATION
9,479
3,834

2. Business Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & Systems
Pachislot &
Pachinko Machines
Eliminations
Consolidated
Year ended
March 31, 2014
104,335
76,511
31,600
5,788
-639
217,595
Year ended
March 31, 2015
96,975
73,340
33,825
14,691
-674
218,157
% of previous year
92.9
95.9
107.0
253.8
-
100.3

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, 2014
11,738
-4,024
7,321
-1,911
-5,428
7,696
Year ended
March 31, 2015
13,272
-913
6,329
322
-4,559
14,451
% of previous year
113.1
-
86.4
-
-
187.8

Overview for the year ended March 31, 2015

Digital Entertainment Business

  1. Mobile games earnings driven by "JIKKYOU PAWAFURU PUROYAKYU," with its 8 million downloads in the four months since its launch in December 2014
  2. Strong sales of the Professional Dream Nine series and WORLD SOCCER COLLECTION S series
  3. Steady sales of "Star Wars TM: Force Collection" and "PES MANAGER" in overseas markets
  4. Solid results from item monetization in the "myClub" mode for "WORLD SOCCER Winning Eleven 2015" (known in the U.S. and Europe as "Pro Evolution Soccer 2015")
  5. Stable recurring revenues from arcade games including "MAHJONG FIGHT CLUB" and "e-AMUSEMENT Participation" titles
  6. Steady sales of the Yu-Gi-Oh! TRADING CARD GAME series in the global market

Health & Fitness Business

  1. Refurbished the facilities and services at our "GRANCISE" top brand facilities
  2. Expanded the number of facilities offering the "Dancing Stars" dancing lessons for children, as well as the "brain activation course" in the OyZ exercise class program for adults
  3. Launched a series of healthcare applications for smartphones, including the calorie control application "calorie-cise," and the walking support application "Dr. Walk"
  4. Released home fitness bike "S-BODY," the first hands-free model in the AEROBIKE series, which enables users to exercise while doing something else, such as reading a magazine or using a smart device

Gaming & Systems Business

  1. Solid sales of the "Podium" video slot machine continued, owing to its establishment as a staple product
  2. Announced a lineup of new releases and debuted "Podium Monument" at International Casino Exhibition 2015 (ICE 2015) in London , earning a positive response from operators

Pachislot & Pachinko Machines Business

  1. Favorable reviews for "MAH-JONG FIGHT CLUB," which combines the style of online mah-jong games with the features of pachislot machines
  2. Driven by strong performance in pachinko parlors, there was growth in unit sales of "Dororon Enma-kun Meeramera," a new pachislot machine derived from the popular animation series, and "SENGOKU COLLECTION 2," a pachislot machine converted from our popular proprietary mobile game series, resulting in a recovery trend in our business performance

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