FY2013 2 nd Quarter Financial Results April 1 September 30, 2012 KONAMI CORPORATION November 1, 2012
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) FY2013 Guidance 12 months ending March 2013 Net Revenues 123.1 106.7 270.0 Operating Income 20.2 12.6 41.1 Income Before Income Taxes 19.4 11.5 40.1 Net Income 11.5 7.0 23.1 Net Income Per Share (Yen) 82.89 50.17 166.64 Cash Dividends Per Share (Yen) 25.00 25.00 50.00 3
Net Revenues and Operating Income by Business Segment Net Revenues (Yen in Billions) FY2013 Guidance 12 months ending March 2013 Digital Entertainment 58.1 52.7 141.0 Health & Fitness 41.6 40.3 81.0 Gaming & Systems 10.5 11.4 26.0 Pachinko & Pachinko Slot Machines 13.3 2.6 23.0 Other / Elimination -0.5-0.4-1.0 Total 123.1 106.7 270.0 Operating Income Digital Entertainment 15.1 11.7 33.0 Health & Fitness 1.1 1.4 3.0 Gaming & Systems 2.8 2.9 7.0 Pachinko & Pachinko Slot Machines 3.7 0.2 4.5 Other / Elimination -2.4-3.6-6.4 Total 20.2 12.6 41.1 4
Digital Entertainment (1) Net revenues and operating income (Yen in Billions) Consumer Games 17.0 15.2 SNS 16.9 15.8 e-amusement 11.1 10.0 Card Games 12.5 11.3 Other 0.6 0.4 Total Net Revenues 58.1 52.7 Operating Income 15.1 11.7 Operating Margin 26.0% 22.2% FY2013 Q2 summary Solid sales of Pro Evolution Soccer 2013. Total registered members of social media content including Dragon Collection surpasses 26 million. Stable recurring revenues from e-amusement Participation. Solid sales of Yu-Gi-Oh! trading card games. 5
Digital Entertainment (2) Social Media Content - Registered Members - *Cumulative registered members at the end of each month for all domestic social media content released by KONAMI. 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0 (Millions of members) Dec '10 Mar '11 Jun '11 Sep '11 Dec '11 Mar '12 Jun '12 Sep '12 Titles in service Title Rlease Date Platform Dragon Collection Sep 2010 GREE Sengoku Collection Dec 2010 Mobage Professional Baseball Dream Nine Apr 2011 GREE Mobage mixi dgame CROWS WORST -Saikyou Densetsu- May 2011 GREE Remarks No.1 on GREE ranking (as of Oct 31) For smartphones / feature phones Available as an ios app from Oct 2012 No. 10 on Mobage ranking (as of Oct 30) For smartphones / feature phones No. 2 on GREE ranking (as of Oct 31) For smartphones / feature phones Launched for Mobage in Oct 2011 Launched for mixi in Mar 2012 Slotore! KPE Jun 2011 GREE For feature phones World Soccer Collection Aug 2011 GREE Mobage dgame To be launched for dgame in late Nov 2012 No. 3 on GREE ranking (as of Oct 31) For smartphones / feature phones No. 7 on GREE ranking (as of Oct 31) For smartphones / feature phones Launched for Mobage in Jun 2012 To be launched for dgame in late Nov 2012 Hisho Collection Aug 2011 GREE For smartphones / feature phones Dream Stallion Nov 2011 Mobage For smartphones / feature phones STAR WARS COLLECTION Feb 2012 GREE For smartphones / feature phones Yu-Gi-Oh! BAM Jun 2012 Facebook For overseas market PAWAFURU PUROYAKYU Aug 2012 GREE Pre-registration from Jun 12, 2012 Mobage For smartphones / feature phones Professional Baseball Dream Nine Aug 2012 T store For South Korean market Yuru Veggie Farm Sep 2012 mixi For smartphones Sokkuri Museum Sep 2012 mixi For smartphones MLB DREAM NINE Sep 2012 Facebook For North American market The Prince of Tennis Oct 2012 Mobage For smartphones / feature phones CROWS WORST -Kenka Retsuden- Oct 2012 Mobage For smartphones / feature phones J. LEAGUE Dream Legends Oct 2012 Mobage For smartphones / feature phones 6
Digital Entertainment (3) Unit sales - video games Unit sales breakdown (units in million) Geographic Region Japan 3.04 1.34 Americas 1.66 2.29 Europe 2.52 2.52 Asia 0.15 0.13 Total 7.36 6.28 Unit sales platform mix Wii 9% PC 2% X360 11% PS3 37% 3DS 4% DS 11% PS2 3% PSP 23% (units in million) Genre / Category Soccer 2.93 3.68 Baseball 0.97 0.39 TV Animated 0.34 0.02 Music 0.36 0.14 METAL GEAR 0.34 0.72 Other 2.42 1.33 Total 7.36 6.28 Wii 4% PC 3% X360 18% 3DS 3% PS3 50% DS 2% PSV 6% PSP 12% PS2 2% 7
Digital Entertainment (4) Pipeline TiTle Platform Geographic Region Release Date METAL GEAR RISING REVENGEANCE PS3 / X360 Global Feb. 2013 Castlevania: Lords of Shadow - Mirror of Fate 3DS Global FY2013 H2 METAL GEAR RISING REVENGEANCE Castlevania: Lords of Shadow Mirror of Fate Castlevania: Lords of Shadow 2 PS3 / X360 Global 2013 METAL GEAR SOLID SOCIAL OPS GREE Japan 2012 Castlevania: Lords of Shadow 2 DAIFUGO MONSTERS DAIFUGO MONSTERS dgame Japan Late Nov 2012 DRAGON COLLECTION The Ambition of The Pepper Gang Arcade Machine Japan TBD METAL GEAR SOLID SOCIAL OPS DRAGON COLLECTION The Ambition of The Pepper Gang 8
Health & Fitness Net revenues and operating income (Yen in Billions) Directly Operated Clubs 33.8 32.7 Contract-based Clubs (*) 3.7 4.0 Health Related Products 4.1 3.6 Total Net Revenues 41.6 40.3 Operating Income 1.1 1.4 Operating Margin 2.6% 3.4% (*) Contract-based clubs: Outsourcing the operations of sports facilities run by regional public bodies and private-sectors to KONAMI. FY2013 Q2 summary Increased income through efficient operations in directly operated clubs. 9
Gaming & Systems Net revenues and operating income (Yen in Billions) Net Revenue 10.5 11.4 Operating Income 2.8 2.9 Operating Margin 26.1% 25.0% FY2013 Q2 summary Market share expansion through solid sales of slot machines and increased participation revenues. Showcased the multi-game SeleXion software package, the jumbo-sized Podium Goliath cabinet, and the new casino management system Synkros at the Global Gaming Expo. 10
Pachinko & Pachinko Slot Machines Net revenues and operating income (Yen in Billions) Net Revenue 13.3 2.6 Operating Income 3.7 0.2 Operating Margin 27.7% 8.0% FY2013 Q2 summary Launched pachislot title Senjin Uesugi Kenshin. 11
THANK YOU 2012 KONAMI 12