Konami : Consolidated Results for the Three Months Ended June 30, 2016(Prepared in Accordance with IFRS)

KONAMI HOLDINGS CORPORATION hereby announces that the consolidated total revenues and operating profit for the three months ended June 30, 2016 were ¥49,417 million (96.5% of the same period in the previous year) and ¥9,089 million (140.2% of the same period in the previous year), respectively.

Profit before income taxes and profit attributable to owners of the parent company were ¥8,419 million (122.7% of the same period in the previous year) and ¥5,814 million (135.8% of the same period in the previous year), respectively.

In Digital Entertainment business, mobile games, including 'JIKKYOU PAWAFURU PUROYAKYU,' 'PROFESSIONAL BASEBALL SPIRITS A (Ace),' and the WORLD SOCCER COLLECTION series, continued to enjoy steady sales. In addition, we released the PC/console title 'JIKKYOU PAWAFURU PUROYAKYU 2016' and the online-only title 'JIKKYOU PAWAFURU PUROYAKYU SUCCESS SPECIAL,' as well as 'UEFA EURO 2016/Winning Eleven 2016' (known overseas as PES 2016 - Pro Evolution Soccer -), a title featuring UEFA EURO 2016, one of the pinnacles of soccer competition worldwide, with national soccer teams representing Europe's various countries and regions competing. These factors resulted in an increase in revenues and operating profit compared to the same period in the previous year.

In Health & Fitness business, we made ongoing efforts to enhance Konami Sports Club services, through means such as pricing plans enabling customers to select the most suitable options based on their personal usage frequency, and a per-use plan for customers who are unable to visit facilities regularly. In addition, we introduced a series of videos that demonstrate the correct ways to perform various physical exercises, featuring athletes affiliated with the Konami Sports Club Gymnastics and Swimming Teams. There has also been releases of web video commercials featuring those athletes to acquire new members to our facilities, with the goal of reaching previously untapped customer demographics. Sales from this business decreased, however, mainly due to the previous fiscal year closing of facilities operated directory.Meanwhile, we promoted operational efficiency of facilities, such factors have resulted in a decrease in revenues and an increase in operating profit compared to the same period in the previous year.

In Gaming & Systems business, sales of products, such as the new 'Concerto' cabinet for video slot machines, the Podium series and 'SYNKROS' casino management system, continued steadily mainly in North America, against the backdrop of its current severe market environment. However, due to the effect of exchange rate changes by the rising yen, the business sees a decrease in revenues and an increase in operating profit compared to the same period in the previous year.

In Pachislot & Pachinko Machines business, we sold 'MAGICAL HALLOWEEN 5,' a pachislot machine released in the previous fiscal year, with additional orders due to its strong performance in the market. Due to the new products being released for this fiscal year mainly scheduled for the third quarter or later, the business sees a decrease in revenues and a decrease in operating profit compared to the same period in the previous year.

1. Consolidated Results of Operation

(Millions of yen)

2. Business Segment Information - Revenue

(Millions of yen)

3. Business Segment Information - Operating Profit

(Millions of yen)

4. Overview for the Three Months Ended June 30, 2016

Digital Entertainment Business

1. Strong sales of mobile games, including 'JIKKYOU PAWAFURU PUROYAKYU,' a title continued to enjoy its popularity exceeding 25 million downloads, 'PROFESSIONAL BASEBALL SPIRITS A (Ace),' the WORLD SOCCER COLLECTION series, and the Professional Baseball Dream Nine series
2. Steady performance of mobile games for the global market, such as 'Star Wars: Force Collection,' and 'Winning Eleven CLUB MANAGER' (known overseas as 'PES CLUB MANAGER')
3. Stable recurring revenues from 'e-AMUSEMENT Participation' arcade games, including 'MAH-JONG FIGHT CLUB ZERO' and music genre games
4. Steady sales of the Yu-Gi-Oh! TRADING CARD GAME series in the global market, and favorable reception of products in commemoration of the release of the cinematic version of 'Yu-Gi-Oh! THE DARK SIDE OF DIMENSIONS' in the domestic market
5. Release of the latest addition to the PAWAPURO PC/console game series 'JIKKYOU PAWAFURU PUROYAKYU 2016' in April 2016, and simultaneous distribution of the online-only title 'JIKKYOU PAWAFURU PUROYAKYU SUCCESS SPECIAL' (free of charge for basic functionality)
6. Release of 'UEFA EURO 2016/Winning Eleven 2016' (known overseas as PES 2016 - Pro Evolution Soccer -), a title featuring UEFA EURO 2016, one of the pinnacles of soccer competition worldwide, with national soccer teams representing Europe's various countries and regions competing

Health & Fitness Business

1. Enhanced services to meet diversifying customer needs, through means such as pricing plans enabling customers to select the most suitable options based on their personal usage frequency, and a per-use plan for customers who are unable to visit facilities regularly
2. Increase in new members of swimming and gymnastics school programs as well as trial participants driven by the video series 'Konami Methods Matome,' which demonstrates the correct ways to perform various physical exercises, featuring athletes affiliated with the Konami Sports Club Gymnastics and Swimming Teams and instructors
3. Promoted the acquisition of new members and recognition of Konami Sports Club brand, with the release of web video commercials featuring Kohei Uchimura and Ryohei Kato of the Konami Sports Club Gymnastics Team starting June 2016
4. Started operation of 29 new contract-based public sports facilities in April 2016
5. Decrease in sales due to a reduction in the number of facilities operated directly in the previous fiscal year. On the other hand, reduced expenses due to improved operational efficiency

Gaming & Systems Business

1. Favorable sales of the Podium series, including the new 'Concerto' cabinet for video slot machines in North America since its release in the second half of the previous fiscal year, as well as in Asia, mainly in the Philippines
2. Maintained stable earnings from participation agreements by introducing an expanded lineup of premium products and game content, such as 'Podium Goliath', a larger size version of Podium
3. Steady introduction of the 'SYNKROS' casino management system into casinos in multiple areas throughout North America, and facilities in 18 large cruise ships in service overseas
4. Slight decrease in sales compared to the same period in the previous year due to the effect of exchange rate changes by the rising yen

Pachislot & Pachinko Machines Business

1. Conducted nationwide self-imposed moratorium on replacement of pachislot and pachinko machines over a period of one month in May 2016 due to the impact of the G7 Ise-Shima Summit
2. Received solid repeat orders for 'MAGICAL HALLOWEEN 5,' a pachislot machine released in the previous fiscal year, due to its top-level performance among other models adapted to new regulations following a change in testing methods
3. Limited sales in the current term because new product releases for this fiscal year are mainly scheduled for the third quarter or later

*Statements made in this news release reflect information available on the date of its announcement, and is subject to change without prior notice.