Fiscal 2013 Konami Group Report

Transcription

1 Fiscal 2013 Konami Group Report April 1, 2012 March 31, 2013 KONAMI CORPORATION

2 To Our Shareholders I sincerely hope that this report finds our shareholders prospering and in good health. Although the world economy remains uncertain, from the end of last year domestic economic stimulus measures have helped bolster personal consumption, keep the yen depreciating and stock prices rising. It is against this backdrop that KONAMI CORPORATION celebrated its 40th anniversary this year. We have expanded over the years by contending with tremendous social and market changes, and are deeply grateful to you, our shareholders and other stakeholders, for your support. We have made great strides in the fields of entertainment and health, and I believe that we have an important social role to play in helping people lead richer lives by providing high-quality products and services in these areas. The Konami Group will continue working together as one to take on new challenges while living up to your trust and expectations. On behalf of the Konami Group, I ask you, our valued shareholders, for your continued support and encouragement of our efforts. July 2013 Takuya Kozuki President and Representative Director 1

3 Corporate Social Responsibility Initiatives Sports & Sponsorship As a good corporate citizen, the Konami Group has designated making positive contributions to society a core management policy and takes initiative for corporate social responsibility across the entire group. Sponsoring the 2013 WORLD BASEBALL CLASSICTM KONAMI sponsored the 2013 WORLD BASEBALL CLASSICTM, baseball s world championship, to foster the international popularity and development of the game. KONAMI created baseball-themed game content, including the JIKKYOU PAWAFURU PUROYAKYU series and Professional Baseball Dream Nine. Other examples of our deep commitment to this sport include our partnership with the Nippon Professional Baseball Organization and our sponsorship of the Konami Nippon Series and the SAMURAI JAPAN team. We will continue to support baseball and to spark the Trademarks, copyrights and other proprietary materials are used with permission of WORLD BASEBALL CLASSIC, imaginations of sports fans around the world. Inc., its affiliated entities and/or its licensees. Sponsoring Japan s National Soccer Teams KONAMI has long sponsored Japan s national soccer teams* on the international stage. In the years ahead, we will continue helping to popularize soccer and foster the cultural development of this sport by providing quality game content to larger audiences while promoting Japan s national soccer teams through sponsorship initiatives. Kirin Challenge Cup 2013 on February 6, 2013 Match against Latvia Japan national soccer team, starting lineup *Japan s National Soccer Teams Japan s national soccer teams consist of the Japan national team, the Japan women s national team, Japan national teams at each age level, the Japan national futsal team, and the Japan national beach soccer team. (C)J.LEAGUE PHOTOS 2

4 Topics Hugely Popular Monster Retsuden ORECA BATTLE Enables People to Create their Own Cards Digital Entertainment Monster Retsuden ORECA BATTLE is an amusement arcade card KONAMI will continue to provide unique enjoyment to game machine that combines the video game fun of raising customers by pursuing new challenges in amusement arcade monsters and engaging them in battle while collecting cards. game machines. 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 Sports Club Launching an Array of New Services Health & Fitness The Konami Sports Club offers new services as a total health Through our services, we will continue to foster healthy partner. A good example is OyZ, which we launched in living as a total health partner that remains dedicated to September Expert physiotherapists, personal trainers, customers by helping them stay healthy, fit, and attractive. 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. 3

5 Exhibiting the Latest Arcade Machines at Global Gaming Expo 2012 KONAMI exhibited its latest offerings in Las Vegas at Global Gaming & Systems accommodate the diverse needs of customers and will deliver Gaming Expo 2012, the world s biggest gaming trade show. new entertainment value worldwide. 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 Debuting SENGOKU COLLECTION A New Pachinko Slot Machine We have made the SENGOKU COLLECTION available in a Pachinko & Pachinko Slot Machines combining the enjoyment of pachinko slot machine games pachinko slot machine format. We originally developed the with KONAMI proprietary content. 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 4

6 Consolidated Financial Highlights (U.S. GAAP) Net Revenues Operating Income Net Income ( billion) ( billion) ( billion) (Fiscal years ended March 31) (Fiscal years ended March 31) (Fiscal years ended March 31) Consolidated Balance Sheets (Key items) (Yen in millions) Current assets 153, ,965 Fixed assets 169, ,041 Total assets 322, ,006 Current liabilities 59,512 67,890 Long-term liabilities 37,437 44,396 Equity 225, ,720 Total liabilities and equity 322, ,006 Consolidated Statements of Income (Key items) (Yen in millions) Net revenues 225, ,758 Operating income 21,875 40,950 Income before income taxes 21,915 40,026 Net income 13,174 23,012 Consolidated Statements of Cash Flows (Key items) (Yen in millions) Net cash provided by (used in) operating activities Net cash used in investing activities Net cash used in financing activities Cash and cash equivalents, end of period ,236 37,915 (11,575) (7,646) (12,377) (13,254) 63,669 76,451 Overview of the Fiscal Year 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. For more detailed financial data, please visit the KONAMI website and look under the Financial Information page. 5 KONAMI IR Search

7 Celebrating Our 40th Anniversary KONAMI celebrated its 40th anniversary on March 19, Entertainment business together constitute our four core We started out as a jukebox rental and repair service in Osaka operations. in In 1973, KONAMI INDUSTRY CO., LTD. was established In September 2002, KONAMI became a truly global entity by with capitalization of 1 million to pioneer a nascent listing on the New York Stock Exchange. In 2006, KONAMI entertainment industry by manufacturing and selling CORPORATION shifted to a pure holding company structure to amusement arcade machines. enable each company to cultivate its businesses in keeping We have since built a large customer base by deploying with specific industry trends. numerous products in Japan and overseas. In 1984, we became In 2007, we located all Konami Group offices at Tokyo the first company in the entertainment sector to list on the Midtown. They were previously dispersed around Tokyo. This second section of the Osaka Securities Exchange. move enabled us to leverage business synergies then we could In 1988, we listed on the first sections of the Tokyo Stock further cultivate the Konami Group brand. Exchange and Osaka Securities Exchange. In 1991, we boosted In 2013, KONAMI continues to pursue new challenges then it net revenues to more than 50 billion, renaming KONAMI can remain a change driver in creating and providing Valuable INDUSTRY as KONAMI CO., LTD. Time to our customers. We started our Pachinko & Pachinko Slot Machines business We would like to reiterate our thanks to you, and look in 1992 and our Gaming & Systems business in The Health forward to your ongoing trust and support for our efforts. & Fitness business followed in These and the Digital Four core operations of KONAMI Digital Entertainment Gaming & Systems Health & Fitness Pachinko & Pachinko Slot Machines First headquarters and factory First product PICCADILLY CIRCUS 6

8 Corporate Data ( 2013) Company Name Headquarters Stock Information ( 2013) Common Stock The 10 Largest Shareholders 450,000,000 shares 53,101 Shares (Thousands) % of Total Kozuki Foundation for Sports and Education 15, Kozuki Holding 15, The Master Trust Bank of Japan, Ltd. (Trust Account) 12, Japan Trustee Services Bank, Ltd. (Trust Account) 8, Kozuki Capital Corporation 7, Sumitomo Mitsui Banking Corporation 4, Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account) BNP Paribas Securities (Japan) Ltd. 2, Societe Generale Securities (North Pacific) Ltd. 1, Mizuho Securities Co., Ltd. 1, Note: The above shareholding ratios are calculated after the deduction of treasury shares. Kozuki Foundation for Sports and Education became Kozuki Foundation on April 1, Guide to Investor Relations KONAMI CORPORATION 9-7-2, Akasaka, Minato-ku, Tokyo , Japan TEL: FAX: Founded March 21, 1969 Incorporated March 19, 1973 Paid-in Capital Home Page URL Authorized Outstanding Number of shareholders 47,399 million 143,500,000 shares (including 4,881,940 treasury shares) Shareholder 2, Our website includes an investor relations section that provides easy access to our Shareholder Information Fiscal Year-End March 31 Ordinary General Meeting of Shareholders June Record Date for Shareholders Annual shareholders meeting: March 31 Year-end dividend: March 31 Interim dividend: September 30 Other (when necessary): As announced in advance Transfer Agent Sumitomo Mitsui Trust Bank, Limited 1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan Location of Transfer Agent Handling Office Sumitomo Mitsui Trust Bank, Limited Stock Transfer Agency Department 4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan Mailing Address Sumitomo Mitsui Trust Bank, Limited Stock Transfer Agency Department 8-4, Izumi 2-chome, Suginami-ku, Tokyo , Japan Telephone Inquiries Internet URL Public Notices Shown on the Company s website 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 Outside U.S.A Hearing impaired An automated IVR system is available 24 hours / 7 days a week. Representatives are available 8:00 am to 8:00 pm EST weekdays. Internet URL Visit and go to the Shareholder Services page. Regular correspondence JPMorgan Chase Bank, N.A. P.O. Box 64504, St. Paul, MN , U.S.A KONAMI