FY2015 1st Quarter Financial Results Three months ended June 30, 2014
KONAMI CORPORATION August 5, 2014
Cautionary statement with respect to forward-looking statements Statements made in this presentation with respect to the KONAMI’s current plans, estimates, strategies and beliefs, including forecasts, are forward-looking statements about the future performance of KONAMI. These statements are based on management’s assumptions and beliefs in light of information currently available to it and, therefore, you should not place undue reliance on them. A number of important factors could cause actual results to be materially different from and worse than those discussed in forward-looking statements. Such factors include, but are not limited to (1) Changes in economic conditions affecting our operations; (2) Fluctuations in foreign exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro; (3) KONAMI’s ability to continue to win acceptance of our products, which are offered in highly competitive markets characterized by the continuous introduction of new products, rapid developments in technology and subjective and changing consumer preferences; (4) KONAMI’s ability to successfully expand internationally with a focus on our Digital Entertainment business and Gaming & Systems business; (5) KONAMI’s ability to successfully expand the scope of our business and broaden our customer base through our Health & Fitness business; (6) Regulatory developments and changes and our ability to respond and adapt to those changes; (7) KONAMI’s expectations with regard to further acquisitions and the integration of any companies we may acquire; and (8) the outcome of contingencies. - Financial information included herein is not audited by independent public accountants (1) Numbers included in this presentation material are; a) in accordance with U.S. GAAP b) rounded to the nearest one hundred million yen (2) Revenues of each segment include inter-segment sales
2
Consolidated Financial Results (Yen in Billions)
FY2014 Q1
FY2015 Q1
FY2015 Guidance
3 months ended June 2013
3 months ended June 2014
12 months ending March 2015
45.6
48.6
220.0
Operating Income
1.5
3.2
12.0
Income Before Income Taxes
2.1
2.6
11.0
Net Income
0.9
1.4
7.0
Net Revenues
Net Income / Share (JPY) Annual Dividends / Share (JPY)
6.74 -
9.82 -
50.50 17.00
3
Net Revenues and Operating Income by Business Segment (Yen in Billions)
Net Revenues Digital Entertainment Health & Fitness Gaming & Systems Pachinko & Pachinko Slot Machines
Other / Elimination Total
FY2014 Q1
FY2015 Q1
FY2015 Guidance
3 months ended June 2013
3 months ended June 2014
12 months ending March 2015
20.0 19.0 6.1 0.7 -0.2 45.6
20.4 18.0 6.8 3.5 -0.1 48.6
105.0 76.0 30.0 10.0 -1.0 220.0
1.7 0.3 1.2 -0.5 -1.2 1.5
3.4 -0.1 1.3 -0.4 -1.0 3.2
10.0 1.0 7.0 0.0 -6.0 12.0
Operating Income Digital Entertainment Health & Fitness Gaming & Systems Pachinko & Pachinko Slot Machines
Corporate / Elimination Total
4
Digital Entertainment (1)
Net revenues and operating income (Yen in Billions)
Net Revenues Operating Income Operating Margin
FY2014 Q1
FY2015 Q1
3 months ended June 2013
3 months ended June 2014
20.0 1.7 8.4%
20.4 3.4 16.5%
FY2015 Q1 summary Domestic launch of WORLD SOCCER Winning Eleven 2014: Aoki Samurai no Chousen and strong repeat sales of METAL GEAR SOLID V: GROUND ZEROES Mobile sales driven by titles including Dragon Collection and World Soccer Collection series with solid growth in number of native app downloads Stable recurring revenues from “e-AMUSEMENT Participation” arcade games Launched new series of Yu-Gi-Oh! trading card game in tune with its new TV cartoon show 5
Digital Entertainment (2) Unit sales - video games ■ Unit sales breakdown
■ Unit sales platform mix
(units in million) Geography Japan Americas Europe Asia Total
FY2014 Q1
FY2015 Q1
3 months ended June 2013
3 months ended June 2013
0.42 0.30 0.30 0.01 1.03
FY2014 Q1
DS 3% 3DS PSV X360 Wii 7% 6% 5% 5%
0.53 0.41 0.34 0.01 1.29
PSP 20% PS2 2%
PS3 52%
(units in million) Genre / Category Soccer Baseball METAL GEAR Other Total
FY2014 Q1
FY2015 Q1
3 months ended June 2013
3 months ended June 2013
0.39 0.09 0.19 0.35 1.03
0.42 0.04 0.57 0.26 1.29
FY2015 Q1 PC 4% XOne 4% Wii 2%
X360 8% PS4 12%
DS 1% 3DS 12%
Others 3% PSV PSP 4% 8%
PS3 42%
6
Digital Entertainment (3) ■ Q1 releases / Pipeline Title
PAWAFURU PUROYAKYU TOUCH 2014 WORLD SOCCER Winning Eleven 2014 Aoki Samurai no Chousen The New Prince of Tennis: Puzzle & Tennis
Platform
Geography
Release Date
App Store / Google Play
Japan
Apr 2014
PS3 / PSP / 3DS
Japan
May 2014
App Store / Google Play
Japan
May 2014
Dragon Collection RPG: Shonen to Kamigari no Ryu
App Store / Google Play
Japan
May 2014 (Android)
PES Manager
App Store / Google Play
Latin / North America Europe, Asia
May 2014
NetEase
China
May 2014
Ultimate Striker
Arcade
Japan
Jun 2014
Shinken Shobu! Puroyakyu Dream Stadium
Arcade
Japan
Jun 2014
Zeus Maxia
GREE
Japan
Jul 2014
Dragon Dice
App Store / Google Play
Japan
Jul 2014 (iOS)
BeatStream
Arcade
Japan
Jul 2014
SILENT SCOPE BONE-EATER
Arcade
Japan
Jul 2014
Castlevania: Lords of Shadow 2
PS3 / X360
Japan
Sep 2014
multi-platform
Global
Autumn / Winter 2014
PSV
Japan
TBD
Shikuangjulebu ( 実況倶楽部)
Pro Evolution Soccer 2015 Nisekoi Yomeiri !?
All copyrights or trademarks are the property of their respective owners and used under permission
Pro Evolution Soccer 2015
Castlevania: Lords of Shadow 2
BeatStream
SILENT SCOPE BONE-EATER
Dragon Collection RPG: Shonen to Kamigari no Ryu
Dragon Dice
Health & Fitness
Net revenues and operating income (Yen in Billions)
Net Revenues Operating Income Operating Margin
FY2014 Q1
FY2015 Q1
3 months ended June 2013
3 months ended June 2014
19.0 0.3 1.8%
18.0 -0.1 -
FY2015 Q1 summary Focused on promoting the Konami Sports Club brand through TV commercials, etc. Added 32 new contract-based clubs
8
Gaming & Systems
Net revenues and operating income (Yen in Billions)
Net Revenue Operating Income Operating Margin
FY2014 Q1
FY2015 Q1
3 months ended June 2013
3 months ended June 2014
6.1 1.2 20.0%
6.8 1.3 18.7%
FY2015 Q1 summary Record-high Q1 revenues and operating profit Continued solid sales of Podium / Advantage series of cabinets Unveiled the Dungeons & Dragons slots based on the successful fantasythemed role-playing game Casino management system SYNKROS well-reputed by casino operators 9
Pachinko & Pachinko Slot Machines
Net revenues and operating income (Yen in Billions)
Net Revenue Operating Income Operating Margin
FY2014 Q1
FY2015 Q1
3 months ended June 2013
3 months ended June 2014
0.7 -0.5 -
3.5 -0.4 -
FY2015 Q1 summary Released pachislot titles “Kenka Matsuri” and “MAH-JONG FIGHT CLUB”, and launched Konami group’s first ever pachinko title “CR Pachinko Magical Halloween”
