2
Topics Digital Entertainment Hugely Popular Monster Retsuden ORECA BATTLE Enables People to Create their Own Cards Konami Sports Club Launching an Array of New Services Health & Fitness Monster Retsuden ORECA BATTLE is an amusement arcade card game machine that combines the video game fun of raising monsters and engaging them in battle while collecting cards. This offering is becoming particularly popular among elementary school boys with its novel fun factor which enables players to obtain cards of their own composition. We distribute the ORECA BATTLE smartphone app. Players can access codes that transfer the monsters that they raise to a card game machine. More and more families are visiting amusement game arcades these days. The app lets adults and children transfer and collaborate with the monsters they have raised to enjoy vanquishing stronger monsters together. KONAMI will continue to provide unique enjoyment to customers by pursuing new challenges in amusement arcade game machines. The Konami Sports Club offers new services as a total health partner. A good example is OyZ, which we launched in September 2012. Expert physiotherapists, personal trainers, and other professionals supervise this safe and effective exercise program for members over the age of 60. The program helps members enjoy life by staying youthful and active. MY Fit Planner, which we introduced in November 2012, offers an ongoing training program that displays results according to one’s physical condition, training frequency, and needs. This tool leverages the database we have amassed from fitness club instruction, proprietary counseling techniques, and attentive one-on-one training. Through our services, we will continue to foster healthy living as a total health partner that remains dedicated to customers by helping them stay healthy, fit, and attractive. 3

Topics Consolidated Financial Highlights (U.S. GAAP ... · PDF fileCORPORATION shifted to a pure holding company structure to ... move enabled us to leverage business synergies then

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Page 1: Topics Consolidated Financial Highlights (U.S. GAAP ... · PDF fileCORPORATION shifted to a pure holding company structure to ... move enabled us to leverage business synergies then

Celebrating Our 40th AnniversaryConsolidated Financial Highlights (U.S. GAAP)Topics

Digital EntertainmentHugely Popular Monster Retsuden ORECA BATTLE Enables People to Create their Own Cards

Exhibiting the Latest Arcade Machines at Global Gaming Expo 2012 Gaming & Systems

Debuting SENGOKU COLLECTION—A New Pachinko Slot Machine Pachinko & Pachinko Slot MachinesKonami Sports Club Launching an Array of New Services Health & Fitness

KONAMI exhibited its latest offerings in Las Vegas at Global

Gaming Expo 2012, the world’s biggest gaming trade show.

Visitors loved the new SeleXion game machine cabinet, and

many were keen for us to launch all the systems we exhibited.

They included Podium Goliath, an enlarged version of our very

popular Podium cabinet, and KP3, whose content employs a

next-generation 3D graphics platform.

We introduced SYNKROS, a new version of the Konami Casino

Management System. SYNKROS is a next-generation management

system incorporating a host of new features. They include Super

Series, which enables the integrated development of cutting

edge machines with a variety of functions and levels for entire

floors.

KONAMI will continue to supply gaming products that

Monster Retsuden ORECA BATTLE is an amusement arcade card

game machine that combines the video game fun of raising

monsters and engaging them in battle while collecting cards.

This offering is becoming particularly popular among

elementary school boys with its novel fun factor which enables

players to obtain cards of their own composition.

We distribute the ORECA BATTLE smartphone app. Players

can access codes that transfer the monsters that they raise to a

card game machine.

More and more families are visiting amusement game

arcades these days. The app lets adults and children transfer

and collaborate with the monsters they have raised to enjoy

vanquishing stronger monsters together.

KONAMI will continue to provide unique enjoyment to

customers by pursuing new challenges in amusement arcade

game machines.

accommodate the diverse needs of customers and will deliver

new entertainment value worldwide.

The Konami Sports Club offers new services as a total health

partner. A good example is OyZ, which we launched in

September 2012. Expert physiotherapists, personal trainers,

and other professionals supervise this safe and effective

exercise program for members over the age of 60. The

program helps members enjoy life by staying youthful and

active.

MY Fit Planner, which we introduced in November 2012,

offers an ongoing training program that displays results

according to one’s physical condition, training frequency, and

needs. This tool leverages the database we have amassed from

fitness club instruction, proprietary counseling techniques, and

attentive one-on-one training.

Through our services, we will continue to foster healthy

living as a total health partner that remains dedicated to

customers by helping them stay healthy, fit, and attractive.

We have made the SENGOKU COLLECTION available in a

pachinko slot machine format. We originally developed the

SENGOKU COLLECTION as anime and manga content for social

networks, attracting a total of more than 3.5 million registered

users.

The machine brings additional excitement to the game with

aspects of the content for social networks arena. For example, it

includes the well-known Gosei (composing cards), Gacha

(drawing cards), and Battle (fighting between cards). Players can

enjoy the content even more, including those who are already

fans of the content for social networks version of SENGOKU

COLLECTION.

We will continue to deliver fun-packed entertainment by

KONAMI celebrated its 40th anniversary on March 19, 2013.

We started out as a jukebox rental and repair service in Osaka

in 1969. In 1973, KONAMI INDUSTRY CO., LTD. was established

with capitalization of ¥1 million to pioneer a nascent

entertainment industry by manufacturing and selling

amusement arcade machines.

We have since built a large customer base by deploying

numerous products in Japan and overseas. In 1984, we became

the first company in the entertainment sector to list on the

second section of the Osaka Securities Exchange.

In 1988, we listed on the first sections of the Tokyo Stock

Exchange and Osaka Securities Exchange. In 1991, we boosted

net revenues to more than ¥50 billion, renaming KONAMI

INDUSTRY as KONAMI CO., LTD.

We started our Pachinko & Pachinko Slot Machines business

in 1992 and our Gaming & Systems business in 1997. The Health

& Fitness business followed in 2001. These and the Digital

Entertainment business together constitute our four core

operations.

In September 2002, KONAMI became a truly global entity by

listing on the New York Stock Exchange. In 2006, KONAMI

CORPORATION shifted to a pure holding company structure to

enable each company to cultivate its businesses in keeping

with specific industry trends.

In 2007, we located all Konami Group offices at Tokyo

Midtown. They were previously dispersed around Tokyo. This

move enabled us to leverage business synergies then we could

further cultivate the Konami Group brand.

In 2013, KONAMI continues to pursue new challenges then it

can remain a change driver in creating and providing “Valuable

Time” to our customers.

We would like to reiterate our thanks to you, and look

forward to your ongoing trust and support for our efforts.

First headquarters and factory

First product PICCADILLY CIRCUS

Digital Entertainment

Health & Fitness

Gaming & Systems

Pachinko & Pachinko Slot Machines

Four core operations of KONAMIcombining the enjoyment of pachinko slot machine games

with KONAMI proprietary content.

3 4 5 6

258.0 265.8

20.812.9

41.0

0

100

200

400

300

(¥ billion)

309.8

262.1

Net Revenues

(Fiscal years ended March 31)

226.0

(¥ billion)

Operating Income

0

10

20

40

30 27.4

18.7

(¥ billion)

10.913.3

Net Income

20

50 25

5

10

15

0’10’09 ’12

21.913.2

23.0

’11(Fiscal years ended March 31)

’10’09 ’12’11(Fiscal years ended March 31)

’10’09 ’12’13 ’13 ’13’11

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

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

As of March 31,2013

As of March 31,2012

Current assets 153,483 161,965

Fixed assets 169,465 166,041

Total assets 322,948 328,006

Current liabilities 59,512 67,890Long-term liabilities 37,437 44,396

Equity 225,999 215,720Total liabilities and equity 322,948 328,006

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

As of March 31,2013

As of March 31,2012

Net cash provided by (used in) operating activities

10,236 37,915

Net cash used in investing activities (11,575) (7,646)

Net cash used in financing activities (12,377) (13,254)

Cash and cash equivalents, end of period

63,669 76,451

In the Digital Entertainment Segment of Konami Group, the number of registered users of content for social networks including DRAGON COLLECTION continued to grow. Meanwhile, as for video games, the latest titles in the Winning Eleven series (known in the U.S. and Europe as Pro Evolution Soccer) and the METAL GEAR series were also released and sold steadily.

In our Health & Fitness Segment, a new counseling system, MY Fit Planner, was introduced in Konami Sports Clubs nationwide, in addition to supporting activities to improve the health and physical condition of our users according to each customer’s need. These efforts are performing favorably in the market.

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 favorable mainly in the U.S. market.In the Pachinko & Pachinko Slot Machines Segment, we released

the pachinko slot machine SENGOKU COLLECTION, which leverages our popular content for social networks into pachinko slot machines, and SKYGIRLS - Yoroshiku! Zero -, which utilizes original content from the Konami Group. Those received favorable reviews.

In terms of the consolidated results for the year ended March 31, 2013, net revenues amounted to ¥225,995 million, operating income was ¥21,875 million, income before income taxes and equity in net income of affiliated company was ¥21,915 million, and net income attributable to KONAMI CORPORATION was ¥13,174 million.

Overview of the Fiscal Year

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

As of March 31,2013

As of March 31,2012

Net revenues 225,995 265,758

Operating income 21,875 40,950

Income before income taxes 21,915 40,026

Net income 13,174 23,012

KONAMI IR Search

Page 2: Topics Consolidated Financial Highlights (U.S. GAAP ... · PDF fileCORPORATION shifted to a pure holding company structure to ... move enabled us to leverage business synergies then

Celebrating Our 40th AnniversaryConsolidated Financial Highlights (U.S. GAAP)Topics

Digital EntertainmentHugely Popular Monster Retsuden ORECA BATTLE Enables People to Create their Own Cards

Exhibiting the Latest Arcade Machines at Global Gaming Expo 2012 Gaming & Systems

Debuting SENGOKU COLLECTION—A New Pachinko Slot Machine Pachinko & Pachinko Slot MachinesKonami Sports Club Launching an Array of New Services Health & Fitness

KONAMI exhibited its latest offerings in Las Vegas at Global

Gaming Expo 2012, the world’s biggest gaming trade show.

Visitors loved the new SeleXion game machine cabinet, and

many were keen for us to launch all the systems we exhibited.

They included Podium Goliath, an enlarged version of our very

popular Podium cabinet, and KP3, whose content employs a

next-generation 3D graphics platform.

We introduced SYNKROS, a new version of the Konami Casino

Management System. SYNKROS is a next-generation management

system incorporating a host of new features. They include Super

Series, which enables the integrated development of cutting

edge machines with a variety of functions and levels for entire

floors.

KONAMI will continue to supply gaming products that

Monster Retsuden ORECA BATTLE is an amusement arcade card

game machine that combines the video game fun of raising

monsters and engaging them in battle while collecting cards.

This offering is becoming particularly popular among

elementary school boys with its novel fun factor which enables

players to obtain cards of their own composition.

We distribute the ORECA BATTLE smartphone app. Players

can access codes that transfer the monsters that they raise to a

card game machine.

More and more families are visiting amusement game

arcades these days. The app lets adults and children transfer

and collaborate with the monsters they have raised to enjoy

vanquishing stronger monsters together.

KONAMI will continue to provide unique enjoyment to

customers by pursuing new challenges in amusement arcade

game machines.

accommodate the diverse needs of customers and will deliver

new entertainment value worldwide.

The Konami Sports Club offers new services as a total health

partner. A good example is OyZ, which we launched in

September 2012. Expert physiotherapists, personal trainers,

and other professionals supervise this safe and effective

exercise program for members over the age of 60. The

program helps members enjoy life by staying youthful and

active.

MY Fit Planner, which we introduced in November 2012,

offers an ongoing training program that displays results

according to one’s physical condition, training frequency, and

needs. This tool leverages the database we have amassed from

fitness club instruction, proprietary counseling techniques, and

attentive one-on-one training.

Through our services, we will continue to foster healthy

living as a total health partner that remains dedicated to

customers by helping them stay healthy, fit, and attractive.

We have made the SENGOKU COLLECTION available in a

pachinko slot machine format. We originally developed the

SENGOKU COLLECTION as anime and manga content for social

networks, attracting a total of more than 3.5 million registered

users.

The machine brings additional excitement to the game with

aspects of the content for social networks arena. For example, it

includes the well-known Gosei (composing cards), Gacha

(drawing cards), and Battle (fighting between cards). Players can

enjoy the content even more, including those who are already

fans of the content for social networks version of SENGOKU

COLLECTION.

We will continue to deliver fun-packed entertainment by

KONAMI celebrated its 40th anniversary on March 19, 2013.

We started out as a jukebox rental and repair service in Osaka

in 1969. In 1973, KONAMI INDUSTRY CO., LTD. was established

with capitalization of ¥1 million to pioneer a nascent

entertainment industry by manufacturing and selling

amusement arcade machines.

We have since built a large customer base by deploying

numerous products in Japan and overseas. In 1984, we became

the first company in the entertainment sector to list on the

second section of the Osaka Securities Exchange.

In 1988, we listed on the first sections of the Tokyo Stock

Exchange and Osaka Securities Exchange. In 1991, we boosted

net revenues to more than ¥50 billion, renaming KONAMI

INDUSTRY as KONAMI CO., LTD.

We started our Pachinko & Pachinko Slot Machines business

in 1992 and our Gaming & Systems business in 1997. The Health

& Fitness business followed in 2001. These and the Digital

Entertainment business together constitute our four core

operations.

In September 2002, KONAMI became a truly global entity by

listing on the New York Stock Exchange. In 2006, KONAMI

CORPORATION shifted to a pure holding company structure to

enable each company to cultivate its businesses in keeping

with specific industry trends.

In 2007, we located all Konami Group offices at Tokyo

Midtown. They were previously dispersed around Tokyo. This

move enabled us to leverage business synergies then we could

further cultivate the Konami Group brand.

In 2013, KONAMI continues to pursue new challenges then it

can remain a change driver in creating and providing “Valuable

Time” to our customers.

We would like to reiterate our thanks to you, and look

forward to your ongoing trust and support for our efforts.

First headquarters and factory

First product PICCADILLY CIRCUS

Digital Entertainment

Health & Fitness

Gaming & Systems

Pachinko & Pachinko Slot Machines

Four core operations of KONAMIcombining the enjoyment of pachinko slot machine games

with KONAMI proprietary content.

3 4 5 6

258.0 265.8

20.812.9

41.0

0

100

200

400

300

(¥ billion)

309.8

262.1

Net Revenues

(Fiscal years ended March 31)

226.0

(¥ billion)

Operating Income

0

10

20

40

30 27.4

18.7

(¥ billion)

10.913.3

Net Income

20

50 25

5

10

15

0’10’09 ’12

21.913.2

23.0

’11(Fiscal years ended March 31)

’10’09 ’12’11(Fiscal years ended March 31)

’10’09 ’12’13 ’13 ’13’11

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

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

As of March 31,2013

As of March 31,2012

Current assets 153,483 161,965

Fixed assets 169,465 166,041

Total assets 322,948 328,006

Current liabilities 59,512 67,890Long-term liabilities 37,437 44,396

Equity 225,999 215,720Total liabilities and equity 322,948 328,006

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

As of March 31,2013

As of March 31,2012

Net cash provided by (used in) operating activities

10,236 37,915

Net cash used in investing activities (11,575) (7,646)

Net cash used in financing activities (12,377) (13,254)

Cash and cash equivalents, end of period

63,669 76,451

In the Digital Entertainment Segment of Konami Group, the number of registered users of content for social networks including DRAGON COLLECTION continued to grow. Meanwhile, as for video games, the latest titles in the Winning Eleven series (known in the U.S. and Europe as Pro Evolution Soccer) and the METAL GEAR series were also released and sold steadily.

In our Health & Fitness Segment, a new counseling system, MY Fit Planner, was introduced in Konami Sports Clubs nationwide, in addition to supporting activities to improve the health and physical condition of our users according to each customer’s need. These efforts are performing favorably in the market.

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 favorable mainly in the U.S. market.In the Pachinko & Pachinko Slot Machines Segment, we released

the pachinko slot machine SENGOKU COLLECTION, which leverages our popular content for social networks into pachinko slot machines, and SKYGIRLS - Yoroshiku! Zero -, which utilizes original content from the Konami Group. Those received favorable reviews.

In terms of the consolidated results for the year ended March 31, 2013, net revenues amounted to ¥225,995 million, operating income was ¥21,875 million, income before income taxes and equity in net income of affiliated company was ¥21,915 million, and net income attributable to KONAMI CORPORATION was ¥13,174 million.

Overview of the Fiscal Year

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

As of March 31,2013

As of March 31,2012

Net revenues 225,995 265,758

Operating income 21,875 40,950

Income before income taxes 21,915 40,026

Net income 13,174 23,012

KONAMI IR Search