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Konami Group Report April 1, 2013 – March 31, 2014 Fiscal 2014 KONAMI CORPORATION

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Page 1: Shareholder Information Corporate Data To Our Shareholders ... · conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall,

To Our ShareholdersCSR Initiatives

Konami Group ReportApril 1, 2013 – March 31, 2014

Fiscal 2014

KONAMI CORPORATION

Stock Information (As of March 31, 2014)

Shareholder Information

Fiscal Year-End March 31Ordinary General Meeting of Shareholders JuneRecord Date for Shareholders Annual shareholders’ meeting: March 31

Year-end dividend: March 31Interim dividend: September 30Other (when necessary): As announced in advance

Transfer Agent Sumitomo Mitsui Trust Bank, Limited1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

Location of Transfer AgentSumitomo Mitsui Trust Bank, LimitedStock Transfer Agency Department1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

Mailing Address Sumitomo Mitsui Trust Bank, LimitedStock Transfer Agency Department

Internet URLPublic Notices Shown on the Company’s website

http://www.konami.co.jp/en/ir/Stock Exchange Listings Tokyo, New York, and London

For ADR Holders

Depositary and Transfer Agent for American Depositary Receipts:JPMorgan Chase Bank, N.A.1 Chase Manhattan Plaza, Floor 58, New York, NY 10005, U.S.A.

ADR Holder Contact:JPMorgan Service Center

JPMorgan ADR Holder Transfer Services:Telephone Inquiries

Toll-free U.S.A. & Canada 1-800-990-1135Outside U.S.A. 1-651-453-2128Hearing impaired 1-866-700-1652An automated IVR system is available 24 hours / 7 days a week.Representatives are available 8:00 am to 8:00 pm EST weekdays.

Internet URLVisit http://www.adr.com and go to the Shareholder Services page.

Mail for regular correspondenceJPMorgan Chase Bank, N.A.P.O. Box 64504, St. Paul, MN 55164-0504, U.S.A.

© 2014 KONAMI

Common Stock

Authorized 450,000,000 shares

Outstanding 143,500,000 shares (including 4,887,679 treasury shares)

Number of shareholders 47,769

The 10 Largest Shareholders

ShareholderShares

(Thousands) % of Total

Kozuki Foundation

Kozuki Holding

The Master Trust Bank of Japan, Ltd. (Trust Account)

Japan Trustee Services Bank, Ltd. (Trust Account)

Kozuki Capital Corporation

Sumitomo Mitsui Banking Corporation

BNP Paribas Securities (Japan) Ltd.

Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)

Nothern Trust Co. (AVFC) Re Silchester International Investors International Value Equity Trust

Konami Shain Mochikabukai

Note: The above shareholding ratios are calculated after the deduction of treasury shares.

Guide to Investor Relations Site

Our website includes an investor relations section that provides easy access to our

URL: http://www.konami.co.jp/en/ir

Company Name KONAMI CORPORATION

Headquarters 9-7-2, Akasaka, Minato-ku,

Tokyo 107-8323, Japan

TEL: 81-3-5770-0573

FAX: 81-3-5412-3300

Founded March 21, 1969

Incorporated March 19, 1973

Paid-in Capital ¥47,399 million

Home Page URL http://www.konami.co.jp/en

Corporate Data (As of March 31, 2014)

Handling O�ce

16,600

15,700

15,566

9,313

7,048

4,017

3,433

2,498

2,308

1,485

11.98

11.33

11.23

6.72

5.09

2.90

2.48

1.80

1.67

1.07

http://smtb.jp/tools/english/

2-8-4, Izumi, Suginami-ku,Tokyo 168-0063, Japan

I sincerely hope that this report finds shareholders prospering and in good health.

Getting down to business, shareholders approved the proposal for election of directors at the 42nd General

Meeting of Shareholders, on June 27, and the Company kicked off operations under a revitalized management

team. On behalf of the new Board of Directors, let me say that our goal is to achieve more robust growth with a

continued emphasis on the four pillars of our operations: Digital Entertainment, Health & Fitness, Gaming &

Systems, and Pachinko & Pachinko Slot Machines.

In Japan, the economy remains characterized by fierce competition and drastic changes. But the gradual

recovery trend that emerged last year continues and this heralds promising signs for the domestic market.

Given these social circumstances, we believe our primary role is to consistently provide products and services

that reflect prevailing needs from a global perspective. We will

work harder to raise the cohesive power of the Group and

improve corporate value to facilitate major expansion in the four

business segments. We will take on whatever challenges come

our way and clear the cresting waves of the new age, so as

to ensure qu ick responses to the demands and

expectations of society.

On behalf of the Konami Group, I ask you, our valued

s h a r e h o l d e r s , f o r y o u r c o n t i n u e d s u p p o r t a n d

encouragement of our efforts.

Takuya Kozuki

President and Representative Director

As a good corporate citizen, the Konami Group has designated making positive contributions to society a core management policy and undertakes initiatives for corporate social responsibility across the entire Group.

Supporting Education and Human Resource Development for Gaming Industry Growth In February 2014, KONAMI management gave the green light for a $2.5 million gift to the University of Nevada, Las Vegas (UNLV) with the objective being to further develop the gaming industry. This follows the $1 million donation made in 2010. The $2.5 million donation will be applied to the construction of a new academic building—provisionally named Hospitality Hall—that is scheduled for completion in 2017. The building will be used by the university’s hotel and hospitality faculty, which has a strong track record for excellence in human resource development for the hospitality sector, including gaming, tourism and hotel administration. UNLV is a state-run university established in 1957. Located on this campus is the International Gaming Institute

(IGI). It is headed up by Bo Bernhard, Ph.D., a top researcher and educator in the field of gaming and conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall, is named KONAMI GAMING LABORATORY in recognition of the Company’s support of gaming education. It is the venue for classes and leading-edge research on a wide range of topics, from casino operations to gambling addiction, and contributes to the development of the gaming industry and its future leaders. Past and present donations exemplify KONAMI’s ongoing ef for ts to support a more wholesome development of the gaming industry.

Artist’s rendition of the new Hospitality Hall (provisional name), scheduled for completion in 2017

2 1

Page 2: Shareholder Information Corporate Data To Our Shareholders ... · conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall,

To Our ShareholdersCSR Initiatives

Konami Group ReportApril 1, 2013 – March 31, 2014

Fiscal 2014

KONAMI CORPORATION

Stock Information (As of March 31, 2014)

Shareholder Information

Fiscal Year-End March 31Ordinary General Meeting of Shareholders JuneRecord Date for Shareholders Annual shareholders’ meeting: March 31

Year-end dividend: March 31Interim dividend: September 30Other (when necessary): As announced in advance

Transfer Agent Sumitomo Mitsui Trust Bank, Limited1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

Location of Transfer AgentSumitomo Mitsui Trust Bank, LimitedStock Transfer Agency Department1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

Mailing Address Sumitomo Mitsui Trust Bank, LimitedStock Transfer Agency Department

Internet URLPublic Notices Shown on the Company’s website

http://www.konami.co.jp/en/ir/Stock Exchange Listings Tokyo, New York, and London

For ADR Holders

Depositary and Transfer Agent for American Depositary Receipts:JPMorgan Chase Bank, N.A.1 Chase Manhattan Plaza, Floor 58, New York, NY 10005, U.S.A.

ADR Holder Contact:JPMorgan Service Center

JPMorgan ADR Holder Transfer Services:Telephone Inquiries

Toll-free U.S.A. & Canada 1-800-990-1135Outside U.S.A. 1-651-453-2128Hearing impaired 1-866-700-1652An automated IVR system is available 24 hours / 7 days a week.Representatives are available 8:00 am to 8:00 pm EST weekdays.

Internet URLVisit http://www.adr.com and go to the Shareholder Services page.

Mail for regular correspondenceJPMorgan Chase Bank, N.A.P.O. Box 64504, St. Paul, MN 55164-0504, U.S.A.

© 2014 KONAMI

Common Stock

Authorized 450,000,000 shares

Outstanding 143,500,000 shares (including 4,887,679 treasury shares)

Number of shareholders 47,769

The 10 Largest Shareholders

ShareholderShares

(Thousands) % of Total

Kozuki Foundation

Kozuki Holding

The Master Trust Bank of Japan, Ltd. (Trust Account)

Japan Trustee Services Bank, Ltd. (Trust Account)

Kozuki Capital Corporation

Sumitomo Mitsui Banking Corporation

BNP Paribas Securities (Japan) Ltd.

Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)

Nothern Trust Co. (AVFC) Re Silchester International Investors International Value Equity Trust

Konami Shain Mochikabukai

Note: The above shareholding ratios are calculated after the deduction of treasury shares.

Guide to Investor Relations Site

Our website includes an investor relations section that provides easy access to our

URL: http://www.konami.co.jp/en/ir

Company Name KONAMI CORPORATION

Headquarters 9-7-2, Akasaka, Minato-ku,

Tokyo 107-8323, Japan

TEL: 81-3-5770-0573

FAX: 81-3-5412-3300

Founded March 21, 1969

Incorporated March 19, 1973

Paid-in Capital ¥47,399 million

Home Page URL http://www.konami.co.jp/en

Corporate Data (As of March 31, 2014)

Handling O�ce

16,600

15,700

15,566

9,313

7,048

4,017

3,433

2,498

2,308

1,485

11.98

11.33

11.23

6.72

5.09

2.90

2.48

1.80

1.67

1.07

http://smtb.jp/tools/english/

2-8-4, Izumi, Suginami-ku,Tokyo 168-0063, Japan

I sincerely hope that this report finds shareholders prospering and in good health.

Getting down to business, shareholders approved the proposal for election of directors at the 42nd General

Meeting of Shareholders, on June 27, and the Company kicked off operations under a revitalized management

team. On behalf of the new Board of Directors, let me say that our goal is to achieve more robust growth with a

continued emphasis on the four pillars of our operations: Digital Entertainment, Health & Fitness, Gaming &

Systems, and Pachinko & Pachinko Slot Machines.

In Japan, the economy remains characterized by fierce competition and drastic changes. But the gradual

recovery trend that emerged last year continues and this heralds promising signs for the domestic market.

Given these social circumstances, we believe our primary role is to consistently provide products and services

that reflect prevailing needs from a global perspective. We will

work harder to raise the cohesive power of the Group and

improve corporate value to facilitate major expansion in the four

business segments. We will take on whatever challenges come

our way and clear the cresting waves of the new age, so as

to ensure qu ick responses to the demands and

expectations of society.

On behalf of the Konami Group, I ask you, our valued

s h a r e h o l d e r s , f o r y o u r c o n t i n u e d s u p p o r t a n d

encouragement of our efforts.

Takuya Kozuki

President and Representative Director

As a good corporate citizen, the Konami Group has designated making positive contributions to society a core management policy and undertakes initiatives for corporate social responsibility across the entire Group.

Supporting Education and Human Resource Development for Gaming Industry Growth In February 2014, KONAMI management gave the green light for a $2.5 million gift to the University of Nevada, Las Vegas (UNLV) with the objective being to further develop the gaming industry. This follows the $1 million donation made in 2010. The $2.5 million donation will be applied to the construction of a new academic building—provisionally named Hospitality Hall—that is scheduled for completion in 2017. The building will be used by the university’s hotel and hospitality faculty, which has a strong track record for excellence in human resource development for the hospitality sector, including gaming, tourism and hotel administration. UNLV is a state-run university established in 1957. Located on this campus is the International Gaming Institute

(IGI). It is headed up by Bo Bernhard, Ph.D., a top researcher and educator in the field of gaming and conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall, is named KONAMI GAMING LABORATORY in recognition of the Company’s support of gaming education. It is the venue for classes and leading-edge research on a wide range of topics, from casino operations to gambling addiction, and contributes to the development of the gaming industry and its future leaders. Past and present donations exemplify KONAMI’s ongoing ef for ts to support a more wholesome development of the gaming industry.

Artist’s rendition of the new Hospitality Hall (provisional name), scheduled for completion in 2017

2 1

Page 3: Shareholder Information Corporate Data To Our Shareholders ... · conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall,

To Our ShareholdersCSR Initiatives

Konami Group ReportApril 1, 2013 – March 31, 2014

Fiscal 2014

KONAMI CORPORATION

Stock Information (As of March 31, 2014)

Shareholder Information

Fiscal Year-End March 31Ordinary General Meeting of Shareholders JuneRecord Date for Shareholders Annual shareholders’ meeting: March 31

Year-end dividend: March 31Interim dividend: September 30Other (when necessary): As announced in advance

Transfer Agent Sumitomo Mitsui Trust Bank, Limited1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

Location of Transfer AgentSumitomo Mitsui Trust Bank, LimitedStock Transfer Agency Department1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

Mailing Address Sumitomo Mitsui Trust Bank, LimitedStock Transfer Agency Department

Internet URLPublic Notices Shown on the Company’s website

http://www.konami.co.jp/en/ir/Stock Exchange Listings Tokyo, New York, and London

For ADR Holders

Depositary and Transfer Agent for American Depositary Receipts:JPMorgan Chase Bank, N.A.1 Chase Manhattan Plaza, Floor 58, New York, NY 10005, U.S.A.

ADR Holder Contact:JPMorgan Service Center

JPMorgan ADR Holder Transfer Services:Telephone Inquiries

Toll-free U.S.A. & Canada 1-800-990-1135Outside U.S.A. 1-651-453-2128Hearing impaired 1-866-700-1652An automated IVR system is available 24 hours / 7 days a week.Representatives are available 8:00 am to 8:00 pm EST weekdays.

Internet URLVisit http://www.adr.com and go to the Shareholder Services page.

Mail for regular correspondenceJPMorgan Chase Bank, N.A.P.O. Box 64504, St. Paul, MN 55164-0504, U.S.A.

© 2014 KONAMI

Common Stock

Authorized 450,000,000 shares

Outstanding 143,500,000 shares (including 4,887,679 treasury shares)

Number of shareholders 47,769

The 10 Largest Shareholders

ShareholderShares

(Thousands) % of Total

Kozuki Foundation

Kozuki Holding

The Master Trust Bank of Japan, Ltd. (Trust Account)

Japan Trustee Services Bank, Ltd. (Trust Account)

Kozuki Capital Corporation

Sumitomo Mitsui Banking Corporation

BNP Paribas Securities (Japan) Ltd.

Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)

Nothern Trust Co. (AVFC) Re Silchester International Investors International Value Equity Trust

Konami Shain Mochikabukai

Note: The above shareholding ratios are calculated after the deduction of treasury shares.

Guide to Investor Relations Site

Our website includes an investor relations section that provides easy access to our

URL: http://www.konami.co.jp/en/ir

Company Name KONAMI CORPORATION

Headquarters 9-7-2, Akasaka, Minato-ku,

Tokyo 107-8323, Japan

TEL: 81-3-5770-0573

FAX: 81-3-5412-3300

Founded March 21, 1969

Incorporated March 19, 1973

Paid-in Capital ¥47,399 million

Home Page URL http://www.konami.co.jp/en

Corporate Data (As of March 31, 2014)

Handling O�ce

16,600

15,700

15,566

9,313

7,048

4,017

3,433

2,498

2,308

1,485

11.98

11.33

11.23

6.72

5.09

2.90

2.48

1.80

1.67

1.07

http://smtb.jp/tools/english/

2-8-4, Izumi, Suginami-ku,Tokyo 168-0063, Japan

I sincerely hope that this report finds shareholders prospering and in good health.

Getting down to business, shareholders approved the proposal for election of directors at the 42nd General

Meeting of Shareholders, on June 27, and the Company kicked off operations under a revitalized management

team. On behalf of the new Board of Directors, let me say that our goal is to achieve more robust growth with a

continued emphasis on the four pillars of our operations: Digital Entertainment, Health & Fitness, Gaming &

Systems, and Pachinko & Pachinko Slot Machines.

In Japan, the economy remains characterized by fierce competition and drastic changes. But the gradual

recovery trend that emerged last year continues and this heralds promising signs for the domestic market.

Given these social circumstances, we believe our primary role is to consistently provide products and services

that reflect prevailing needs from a global perspective. We will

work harder to raise the cohesive power of the Group and

improve corporate value to facilitate major expansion in the four

business segments. We will take on whatever challenges come

our way and clear the cresting waves of the new age, so as

to ensure qu ick responses to the demands and

expectations of society.

On behalf of the Konami Group, I ask you, our valued

s h a r e h o l d e r s , f o r y o u r c o n t i n u e d s u p p o r t a n d

encouragement of our efforts.

Takuya Kozuki

President and Representative Director

As a good corporate citizen, the Konami Group has designated making positive contributions to society a core management policy and undertakes initiatives for corporate social responsibility across the entire Group.

Supporting Education and Human Resource Development for Gaming Industry Growth In February 2014, KONAMI management gave the green light for a $2.5 million gift to the University of Nevada, Las Vegas (UNLV) with the objective being to further develop the gaming industry. This follows the $1 million donation made in 2010. The $2.5 million donation will be applied to the construction of a new academic building—provisionally named Hospitality Hall—that is scheduled for completion in 2017. The building will be used by the university’s hotel and hospitality faculty, which has a strong track record for excellence in human resource development for the hospitality sector, including gaming, tourism and hotel administration. UNLV is a state-run university established in 1957. Located on this campus is the International Gaming Institute

(IGI). It is headed up by Bo Bernhard, Ph.D., a top researcher and educator in the field of gaming and conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall, is named KONAMI GAMING LABORATORY in recognition of the Company’s support of gaming education. It is the venue for classes and leading-edge research on a wide range of topics, from casino operations to gambling addiction, and contributes to the development of the gaming industry and its future leaders. Past and present donations exemplify KONAMI’s ongoing ef for ts to support a more wholesome development of the gaming industry.

Artist’s rendition of the new Hospitality Hall (provisional name), scheduled for completion in 2017

2 1

Page 4: Shareholder Information Corporate Data To Our Shareholders ... · conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall,

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

Page 5: Shareholder Information Corporate Data To Our Shareholders ... · conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall,

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

Page 6: Shareholder Information Corporate Data To Our Shareholders ... · conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall,

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

Page 7: Shareholder Information Corporate Data To Our Shareholders ... · conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall,

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

Page 8: Shareholder Information Corporate Data To Our Shareholders ... · conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall,

To Our ShareholdersCSR Initiatives

Konami Group ReportApril 1, 2013 – March 31, 2014

Fiscal 2014

KONAMI CORPORATION

Stock Information (As of March 31, 2014)

Shareholder Information

Fiscal Year-End March 31Ordinary General Meeting of Shareholders JuneRecord Date for Shareholders Annual shareholders’ meeting: March 31

Year-end dividend: March 31Interim dividend: September 30Other (when necessary): As announced in advance

Transfer Agent Sumitomo Mitsui Trust Bank, Limited1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

Location of Transfer AgentSumitomo Mitsui Trust Bank, LimitedStock Transfer Agency Department1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

Mailing Address Sumitomo Mitsui Trust Bank, LimitedStock Transfer Agency Department

Internet URLPublic Notices Shown on the Company’s website

http://www.konami.co.jp/en/ir/Stock Exchange Listings Tokyo, New York, and London

For ADR Holders

Depositary and Transfer Agent for American Depositary Receipts:JPMorgan Chase Bank, N.A.1 Chase Manhattan Plaza, Floor 58, New York, NY 10005, U.S.A.

ADR Holder Contact:JPMorgan Service Center

JPMorgan ADR Holder Transfer Services:Telephone Inquiries

Toll-free U.S.A. & Canada 1-800-990-1135Outside U.S.A. 1-651-453-2128Hearing impaired 1-866-700-1652An automated IVR system is available 24 hours / 7 days a week.Representatives are available 8:00 am to 8:00 pm EST weekdays.

Internet URLVisit http://www.adr.com and go to the Shareholder Services page.

Mail for regular correspondenceJPMorgan Chase Bank, N.A.P.O. Box 64504, St. Paul, MN 55164-0504, U.S.A.

© 2014 KONAMI

Common Stock

Authorized 450,000,000 shares

Outstanding 143,500,000 shares (including 4,887,679 treasury shares)

Number of shareholders 47,769

The 10 Largest Shareholders

ShareholderShares

(Thousands) % of Total

Kozuki Foundation

Kozuki Holding

The Master Trust Bank of Japan, Ltd. (Trust Account)

Japan Trustee Services Bank, Ltd. (Trust Account)

Kozuki Capital Corporation

Sumitomo Mitsui Banking Corporation

BNP Paribas Securities (Japan) Ltd.

Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)

Nothern Trust Co. (AVFC) Re Silchester International Investors International Value Equity Trust

Konami Shain Mochikabukai

Note: The above shareholding ratios are calculated after the deduction of treasury shares.

Guide to Investor Relations Site

Our website includes an investor relations section that provides easy access to our

URL: http://www.konami.co.jp/en/ir

Company Name KONAMI CORPORATION

Headquarters 9-7-2, Akasaka, Minato-ku,

Tokyo 107-8323, Japan

TEL: 81-3-5770-0573

FAX: 81-3-5412-3300

Founded March 21, 1969

Incorporated March 19, 1973

Paid-in Capital ¥47,399 million

Home Page URL http://www.konami.co.jp/en

Corporate Data (As of March 31, 2014)

Handling O�ce

16,600

15,700

15,566

9,313

7,048

4,017

3,433

2,498

2,308

1,485

11.98

11.33

11.23

6.72

5.09

2.90

2.48

1.80

1.67

1.07

http://smtb.jp/tools/english/

2-8-4, Izumi, Suginami-ku,Tokyo 168-0063, Japan

I sincerely hope that this report finds shareholders prospering and in good health.

Getting down to business, shareholders approved the proposal for election of directors at the 42nd General

Meeting of Shareholders, on June 27, and the Company kicked off operations under a revitalized management

team. On behalf of the new Board of Directors, let me say that our goal is to achieve more robust growth with a

continued emphasis on the four pillars of our operations: Digital Entertainment, Health & Fitness, Gaming &

Systems, and Pachinko & Pachinko Slot Machines.

In Japan, the economy remains characterized by fierce competition and drastic changes. But the gradual

recovery trend that emerged last year continues and this heralds promising signs for the domestic market.

Given these social circumstances, we believe our primary role is to consistently provide products and services

that reflect prevailing needs from a global perspective. We will

work harder to raise the cohesive power of the Group and

improve corporate value to facilitate major expansion in the four

business segments. We will take on whatever challenges come

our way and clear the cresting waves of the new age, so as

to ensure qu ick responses to the demands and

expectations of society.

On behalf of the Konami Group, I ask you, our valued

s h a r e h o l d e r s , f o r y o u r c o n t i n u e d s u p p o r t a n d

encouragement of our efforts.

Takuya Kozuki

President and Representative Director

As a good corporate citizen, the Konami Group has designated making positive contributions to society a core management policy and undertakes initiatives for corporate social responsibility across the entire Group.

Supporting Education and Human Resource Development for Gaming Industry Growth In February 2014, KONAMI management gave the green light for a $2.5 million gift to the University of Nevada, Las Vegas (UNLV) with the objective being to further develop the gaming industry. This follows the $1 million donation made in 2010. The $2.5 million donation will be applied to the construction of a new academic building—provisionally named Hospitality Hall—that is scheduled for completion in 2017. The building will be used by the university’s hotel and hospitality faculty, which has a strong track record for excellence in human resource development for the hospitality sector, including gaming, tourism and hotel administration. UNLV is a state-run university established in 1957. Located on this campus is the International Gaming Institute

(IGI). It is headed up by Bo Bernhard, Ph.D., a top researcher and educator in the field of gaming and conducts research and classes on different aspects of gaming. IGI’s gaming lab, built to resemble a casino hall, is named KONAMI GAMING LABORATORY in recognition of the Company’s support of gaming education. It is the venue for classes and leading-edge research on a wide range of topics, from casino operations to gambling addiction, and contributes to the development of the gaming industry and its future leaders. Past and present donations exemplify KONAMI’s ongoing ef for ts to support a more wholesome development of the gaming industry.

Artist’s rendition of the new Hospitality Hall (provisional name), scheduled for completion in 2017

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