Topics Consolidated Financial Highlights (U.S. GAAP) Hot News

KONAMI actively participates at numerous gaming shows around the world and has earned a stellar reputation among many casino operators. At International Casino Exhibition 2014, held in London, UK, we displayed a number of new slot machines and the casino management system SYNKROS. Of the slot machines on view, linked progressive machines Dragon’s Victory and SeleXion, in their European debut, attracted a lot of attention from visitors. The SYNKROS exhibit area was hugely popular during the event, and demonstrations of various enhanced functions, including True-Time Tournaments, which enable the operation of several synchronized tournaments, wowed visitors. KONAMI will continue to deliver new fun and valuable time to customers around the world through an extensive range of casino-oriented products.

Monster Retsuden ORECA BATTLE (Monster Chronicles ORECA BATTLE), popular children’s content from KONAMI, marks its third year as a card-collecting arcade card game, and is now quickly expanding across media platforms. In April 2014, the TV TOKYO Network began airing the TV cartoon ORECA BATTLE & DRAGON COLLECTION. Through the cartoon and other cross-media diversification, such as a smartphone app, comics, a medal game, toys and stationery, KONAMI will enhance the appeal and fun factor of Monster Retsuden ORECA BATTLE to the certain delight of even more children. KONAMI will continue to pursue cross-media diversification of content, giving an ever-increasing customer base more opportunities to enjoy KONAMI content.

Konami Sports Clubs developed the KONAMI METHOD, which brings together scientific research results advocating continued exercise and the Konami Group’s accumulated know-how about exercise and good health. As a complement to this system, Konami Sports Clubs created advice sheets that provide customers with personalized guidance on the theme “you can continue,” highlighting attainable suggestions geared to each person’s goals and anticipated frequency of facility use. The KONAMI METHOD combines the exercise and guidance know-how Konami Sports Clubs has acquired as Japan’s largest general sports club operation with scientific research indicating the impact that exercise can have on mental well-being and the brain. The research was conducted under the supervision of brain scientist Kikunori Shinohara from the Tokyo University of Science, Suwa. The advice sheets combine the five reasons most often given by customers for joining a sports club and frequencies of use. Customers consult on exercise plans with an instructor and

choose from the 15 available advice sheets based on individual goals and lifestyle. This way, even customers who do not visit the sports club very often can still find a solution that will help them reach their objectives.

KONAMI is making new inroads with entertainment e-money Pay

Smart, Enjoy Life (PASELI).

PASELI is an e-currency introduced in 2009 for KONAMI arcade game

cabinets and other applications.

With PASELI, customers no longer have the hassle of preparing coins

for machines. In addition, the arcade experience has become a lot more

fun thanks to this payment option. PASELI also makes it possible for

arcade operators to adopt flexible payment systems, effectively

eliminating traditional ¥100 increments in game pricing, so KONAMI is

proposing PASELI as an efficient way of dealing with the recent increase

in consumption tax in Japan.

Going forward, all future KONAMI arcade

game machines will feature a special PASELI

mode compatible with varied pricing levels,

which will expand the range of fun provided by

KONAMI arcade games. In addition, KONAMI is

setting the stage for broader use of PASELI with

the PASELI Reader scanning device, which will

extend PASELI functionality to non-KONAMI

arcade game machines and other equipment.

KONAMI wi l l cont inue to del iver new

products and services that make arcade games

all the more fun and exciting.

Digital EntertainmentAccelerating Cross-Media Diversification of Monster Retsuden ORECA BATTLE

Health & Fitness

Debut of KONAMI METHOD Using Scientific Research to Promote Continued Exercise Routine

MAGICAL HALLOWEEN 4, the latest title in the popular MAGICAL HALLOWEEN series, was launched at pachinko parlors around the country. Since the first title release in 2007, this KPE original series has attracted a loyal following. MAGICAL HALLOWEEN 4, fully packed with all the know-how accumulated in the development of this series to date, has been well received by pachinko slot machine fans for its high gameplay quality and the unique perspective woven into the game world through its characters. GEKITO ! SAIYUKI, boasting new technology, began rolling out nationwide in January 2014. The presentation has attracted interest at pachinko parlors for its wide use of animation with entertaining characters based on the story Saiyuki (Journey to the West)—familiar, particularly in Japan, to people of diverse age groups. This title also features a new acceleration technique. KONAMI will continue to deliver appealing entertainment content full of fun to fans of pachinko slot machines.

Pachinko & Pachinko Slot MachinesNew Pachinko Slot Machines, Rolling Out One After Another

Gaming & SystemsBroad Product Lineup at Gaming Trade Shows Around the WorldEntertainment e-Money

New Development for PASELI

Advice sheets

MAGICAL HALLOWEEN 4

GEKITO ! SAIYUKI

Smartphone app

Stationery

Toys

3 4 5 6

Net Revenues Operating Income Net Income

258.0 265.8

20.812.9

41.0

0

100

200

300262.1

226.0

0

10

20

40

30

20

50 25

5

10

15

0

217.6

21.9

(¥ billion)

(Fiscal years ended March 31)

(¥ billion) (¥ billion)

(Fiscal years ended March 31) (Fiscal years ended March 31)’10 ’12’11 ’10 ’12’11 ’10 ’12’13 ’13 ’13’14 ’14 ’14’11

18.7

7.7 3.8

13.213.3

23.0

For more detailed financial data, please visit the KONAMI website and look under the Financial Information page.

In the Digital Entertainment segment of Konami Group, mobile games, including DRAGON COLLECTION, continued to enjoy steady sales. Meanwhile, we launched computer and video game titles, including WORLD SOCCER Winning Eleven 2014 (known in the U.S. and Europe as Pro Evolution Soccer 2014), the latest title in the WORLD SOCCER Winning Eleven series, and METAL GEAR SOLID V: GROUND ZEROES. In our Health & Fitness segment, based on the concept “you can continue,” we updated our services for Konami Sports Clubs and introduced a new pricing plan that 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. We intend to promote and broaden services supporting the concept “you can continue.” In our Gaming & Systems segment, sales of products such as the Podium video slot machine and the Advantage mechanical slot machine series continued to be received favorably, mainly in the U.S. market. In the Pachinko & Pachinko Slot Machines segment, we launched the latest title in the popular series of pachinko slot machines MAGICAL HALLOWEEN 4 and launched GEKITO ! SAIYUKI, which is the first pachinko slot machine to be equipped with customized moving game parts. In terms of the consolidated results for the year ended March 31, 2014, net revenues amounted to ¥217,595 million. Operating income was ¥7,696 million, reflecting ¥5,251 million of impairment charges for long-lived assets and other intangible assets and impairment charges for goodwill in our Health & Fitness segment. Income before income taxes and equity in net income of affiliated company was ¥9,228 million, and net income attributable to KONAMI CORPORATION was ¥3,834 million.

KONAMI IR Search

Consolidated Statements of Cash Flows (Key items)(Yen in Millions)

As of March 31,2014

As of March 31,2013

Net cash provided by operating activities

9,027 10,236

Net cash used in investing activities (26,734) (11,575)

Net cash used in financing activities 3,448 (12,377)

Cash and cash equivalents, end of period

50,024 63,669

Consolidated Balance Sheets (Key items)(Yen in Millions)

As of March 31,2014

As of March 31,2013

Current assets 139,658 153,483

Fixed assets 180,593 169,465

Total assets 320,251 322,948

Current liabilities 45,328 59,512Long-term liabilities 49,131 37,437

Equity 225,792 225,999Total liabilities and equity 320,251 322,948

Consolidated Statements of Income (Key items)(Yen in Millions)

As of March 31,2014

As of March 31,2013

Net revenues 217,595 225,995

Operating income 7,696 21,875

Income before income taxes 9,228 21,915

Net income 3,834 13,174

Topics Consolidated Financial Highlights (U.S. GAAP) Hot News

KONAMI actively participates at numerous gaming shows around the world and has earned a stellar reputation among many casino operators. At International Casino Exhibition 2014, held in London, UK, we displayed a number of new slot machines and the casino management system SYNKROS. Of the slot machines on view, linked progressive machines Dragon’s Victory and SeleXion, in their European debut, attracted a lot of attention from visitors. The SYNKROS exhibit area was hugely popular during the event, and demonstrations of various enhanced functions, including True-Time Tournaments, which enable the operation of several synchronized tournaments, wowed visitors. KONAMI will continue to deliver new fun and valuable time to customers around the world through an extensive range of casino-oriented products.

Monster Retsuden ORECA BATTLE (Monster Chronicles ORECA BATTLE), popular children’s content from KONAMI, marks its third year as a card-collecting arcade card game, and is now quickly expanding across media platforms. In April 2014, the TV TOKYO Network began airing the TV cartoon ORECA BATTLE & DRAGON COLLECTION. Through the cartoon and other cross-media diversification, such as a smartphone app, comics, a medal game, toys and stationery, KONAMI will enhance the appeal and fun factor of Monster Retsuden ORECA BATTLE to the certain delight of even more children. KONAMI will continue to pursue cross-media diversification of content, giving an ever-increasing customer base more opportunities to enjoy KONAMI content.

Konami Sports Clubs developed the KONAMI METHOD, which brings together scientific research results advocating continued exercise and the Konami Group’s accumulated know-how about exercise and good health. As a complement to this system, Konami Sports Clubs created advice sheets that provide customers with personalized guidance on the theme “you can continue,” highlighting attainable suggestions geared to each person’s goals and anticipated frequency of facility use. The KONAMI METHOD combines the exercise and guidance know-how Konami Sports Clubs has acquired as Japan’s largest general sports club operation with scientific research indicating the impact that exercise can have on mental well-being and the brain. The research was conducted under the supervision of brain scientist Kikunori Shinohara from the Tokyo University of Science, Suwa. The advice sheets combine the five reasons most often given by customers for joining a sports club and frequencies of use. Customers consult on exercise plans with an instructor and

choose from the 15 available advice sheets based on individual goals and lifestyle. This way, even customers who do not visit the sports club very often can still find a solution that will help them reach their objectives.

KONAMI is making new inroads with entertainment e-money Pay

Smart, Enjoy Life (PASELI).

PASELI is an e-currency introduced in 2009 for KONAMI arcade game

cabinets and other applications.

With PASELI, customers no longer have the hassle of preparing coins

for machines. In addition, the arcade experience has become a lot more

fun thanks to this payment option. PASELI also makes it possible for

arcade operators to adopt flexible payment systems, effectively

eliminating traditional ¥100 increments in game pricing, so KONAMI is

proposing PASELI as an efficient way of dealing with the recent increase

in consumption tax in Japan.

Going forward, all future KONAMI arcade

game machines will feature a special PASELI

mode compatible with varied pricing levels,

which will expand the range of fun provided by

KONAMI arcade games. In addition, KONAMI is

setting the stage for broader use of PASELI with

the PASELI Reader scanning device, which will

extend PASELI functionality to non-KONAMI

arcade game machines and other equipment.

KONAMI wi l l cont inue to del iver new

products and services that make arcade games

all the more fun and exciting.

Digital EntertainmentAccelerating Cross-Media Diversification of Monster Retsuden ORECA BATTLE

Health & Fitness

Debut of KONAMI METHOD Using Scientific Research to Promote Continued Exercise Routine

MAGICAL HALLOWEEN 4, the latest title in the popular MAGICAL HALLOWEEN series, was launched at pachinko parlors around the country. Since the first title release in 2007, this KPE original series has attracted a loyal following. MAGICAL HALLOWEEN 4, fully packed with all the know-how accumulated in the development of this series to date, has been well received by pachinko slot machine fans for its high gameplay quality and the unique perspective woven into the game world through its characters. GEKITO ! SAIYUKI, boasting new technology, began rolling out nationwide in January 2014. The presentation has attracted interest at pachinko parlors for its wide use of animation with entertaining characters based on the story Saiyuki (Journey to the West)—familiar, particularly in Japan, to people of diverse age groups. This title also features a new acceleration technique. KONAMI will continue to deliver appealing entertainment content full of fun to fans of pachinko slot machines.

Pachinko & Pachinko Slot MachinesNew Pachinko Slot Machines, Rolling Out One After Another

Gaming & SystemsBroad Product Lineup at Gaming Trade Shows Around the WorldEntertainment e-Money

New Development for PASELI

Advice sheets

MAGICAL HALLOWEEN 4

GEKITO ! SAIYUKI

Smartphone app

Stationery

Toys

3 4 5 6

Net Revenues Operating Income Net Income

258.0 265.8

20.812.9

41.0

0

100

200

300262.1

226.0

0

10

20

40

30

20

50 25

5

10

15

0

217.6

21.9

(¥ billion)

(Fiscal years ended March 31)

(¥ billion) (¥ billion)

(Fiscal years ended March 31) (Fiscal years ended March 31)’10 ’12’11 ’10 ’12’11 ’10 ’12’13 ’13 ’13’14 ’14 ’14’11

18.7

7.7 3.8

13.213.3

23.0

For more detailed financial data, please visit the KONAMI website and look under the Financial Information page.

In the Digital Entertainment segment of Konami Group, mobile games, including DRAGON COLLECTION, continued to enjoy steady sales. Meanwhile, we launched computer and video game titles, including WORLD SOCCER Winning Eleven 2014 (known in the U.S. and Europe as Pro Evolution Soccer 2014), the latest title in the WORLD SOCCER Winning Eleven series, and METAL GEAR SOLID V: GROUND ZEROES. In our Health & Fitness segment, based on the concept “you can continue,” we updated our services for Konami Sports Clubs and introduced a new pricing plan that 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. We intend to promote and broaden services supporting the concept “you can continue.” In our Gaming & Systems segment, sales of products such as the Podium video slot machine and the Advantage mechanical slot machine series continued to be received favorably, mainly in the U.S. market. In the Pachinko & Pachinko Slot Machines segment, we launched the latest title in the popular series of pachinko slot machines MAGICAL HALLOWEEN 4 and launched GEKITO ! SAIYUKI, which is the first pachinko slot machine to be equipped with customized moving game parts. In terms of the consolidated results for the year ended March 31, 2014, net revenues amounted to ¥217,595 million. Operating income was ¥7,696 million, reflecting ¥5,251 million of impairment charges for long-lived assets and other intangible assets and impairment charges for goodwill in our Health & Fitness segment. Income before income taxes and equity in net income of affiliated company was ¥9,228 million, and net income attributable to KONAMI CORPORATION was ¥3,834 million.

KONAMI IR Search

Consolidated Statements of Cash Flows (Key items)(Yen in Millions)

As of March 31,2014

As of March 31,2013

Net cash provided by operating activities

9,027 10,236

Net cash used in investing activities (26,734) (11,575)

Net cash used in financing activities 3,448 (12,377)

Cash and cash equivalents, end of period

50,024 63,669

Consolidated Balance Sheets (Key items)(Yen in Millions)

As of March 31,2014

As of March 31,2013

Current assets 139,658 153,483

Fixed assets 180,593 169,465

Total assets 320,251 322,948

Current liabilities 45,328 59,512Long-term liabilities 49,131 37,437

Equity 225,792 225,999Total liabilities and equity 320,251 322,948

Consolidated Statements of Income (Key items)(Yen in Millions)

As of March 31,2014

As of March 31,2013

Net revenues 217,595 225,995

Operating income 7,696 21,875

Income before income taxes 9,228 21,915

Net income 3,834 13,174