FY2015 2 nd Quarter Financial Results Six months ended September 30, 2014 KONAMI CORPORATION November 6, 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 FY2015 Guidance 12 months ending March 2015 Net Revenues 97.9 98.7 220.0 Operating Income 3.8 5.9 12.0 Income Before Income Taxes 4.2 6.2 11.0 Net Income 2.0 3.3 7.0 Net Income / Share (JPY) 14.54 23.64 50.50 Annual Dividends / Share (JPY) 17.00 8.50 17.00 3
Net Revenues and Operating Income by Business Segment Net Revenues FY2015 Guidance 12 months ending March 2015 Digital Entertainment 44.6 44.0 105.0 Health & Fitness 38.6 37.0 76.0 Gaming & Systems 13.6 13.6 30.0 Pachinko & Pachinko Slot Machines 1.4 4.5 10.0 Other / Elimination -0.3-0.3-1.0 Total 97.9 98.7 220.0 Operating Income Digital Entertainment 3.7 6.2 10.0 Health & Fitness 0.7 0.3 1.0 Gaming & Systems 3.0 2.0 7.0 Pachinko & Pachinko Slot Machines -1.1-0.6 0.0 Corporate / Elimination -2.6-2.0-6.0 Total 3.8 5.9 12.0 4
Digital Entertainment (1) Net revenues and operating income Net Revenues 44.6 44.0 Operating Income 3.7 6.2 Operating Margin 8.3% 14.1% FY2015 Q2 summary Solid repeat sales of METAL GEAR series 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 Geography (units in million) Japan 0.99 0.99 Americas 1.49 0.70 Europe 1.78 0.67 Asia 0.10 0.02 Total 4.36 2.39 Unit sales platform mix Wii 3% PC 3% X360 16% 3DS 4% PS3 57% DS 1% PSV 5% PSP 10% PS2 1% Genre / Category (units in million) Soccer 2.57 0.55 Baseball 0.14 0.07 METAL GEAR 0.53 1.09 Other 1.13 0.68 Total 4.36 2.39 XOne 4% Wii 2% X360 9% PS4 10% PC 5% 3DS 9% Others 3% PSV 9% PSP 8% PS3 41% 6
Digital Entertainment (3) Q2 releases / Pipeline Dragon Dice Title Platform Geography Japan Release Date 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 JIKKYO PAWAFURU PROYAKYU 2014 PS3 / PSV Japan Oct 2014 BOMBERMAN Pro Evolution Soccer 2015 WORLD SOCCER Winning Eleven 2015 PS4 / XOne PS3 / X360 / PC Japan Nov 2014 Global Nov 2014 Pro Evolution Soccer 2015 JIKKYO PAWAFURU PROYAKYU 2014 NPB2014 Nisekoi Yomeiri!? PSV Japan Nov 2014 Yu-Gi-Oh ARC-V TAGFORCE SPECIAL PSP Japan This Winter CHRONOS RING KYOJIN SENSOU Kingdom Dragonion JIKKYOU PAWAFURU PUROYAKYU Japan Japan Japan Japan This Fall This Winter This Winter This Winter Monster Strike MULTI BURST Otocadoll Monster Strike MULTI BURST Arcade Japan Spring 2015 Disney Tsum Tsum Arcade Japan TBD Otocadoll Arcade Japan TBD Mawase! Gear Drive Arcade Japan TBD ShadowPrincess Arcade Japan TBD Metal Gear Solid V: The Phantom Pain PS4 / XOne PS3 / X360 / PC Global 2015 CHRONOS RING Metal Gear Solid V: The Phantom Pain adidas, the 3-Bars logo, the 3-Stripe trade mark, adipure, Predator, Climacool, Nitrocharge and adizero are registered trade marks of the adidas Group, used with permission. F50 and 11pro are trade marks of the adidas Group, used with permission Official Licensed Product of A.C. Milan All other copyrights or trademarks are the property of their respective owners and are used under license. 7
Health & Fitness Net revenues and operating income Net Revenues 38.6 37.0 Operating Income 0.7 0.3 Operating Margin 1.8% 0.7% FY2015 Q2 summary Extended number of gyms offering fitness program OyZ targeting the elderly Solid sales growth from contract-based clubs 8
Gaming & Systems Net revenues and operating income Net Revenue 13.6 13.6 Operating Income 3.0 2.0 Operating Margin 22.3% 14.7% FY2015 Q2 summary Continued solid sales of Podium cabinets Presented an array of new themes e.g. Dungeons & Dragons at the Global Gaming Expo 2014 in Las Vegas, and unveiled Neo Contra, making the first ever release of KONAMI s popular video game IP to slots Casino management system SYNKROS well-reputed by casino operators 9
Pachinko & Pachinko Slot Machines Net revenues and operating income Net Revenue 1.4 4.5 Operating Income -1.1-0.6 Operating Margin - - FY2015 Q2 summary Received solid repeat orders for pachislot title MAH-JONG FIGHT CLUB due to its strong performance in parlors 10
THANK YOU 2014 KONAMI