Konami : Consolidated Results for the Year Ended March 31, 2016(Prepared in Accordance with IFRS)

KONAMI HOLDINGS CORPORATION hereby announces that the consolidated total revenues and operating profit for the year ended March 31, 2016 were ¥249,902 million (114.6% of the same period in the previous year) and ¥24,679 million (161.2% of the same period in the previous year), respectively.

Profit before income taxes and profit attributable to owners of the parent company were ¥23,768 million (140.1% of the same period in the previous year) and ¥10,516 million (106.0% of the same period in the previous year), respectively.

In Digital Entertainment business, mobile games, including 'JIKKYOU PAWAFURU PUROYAKYU,' the WORLD SOCCER COLLECTION series, and 'PROFESSIONAL BASEBALL SPIRITS A (Ace),' continued to enjoy steady sales. In addition, we released 'METAL GEAR SOLID V: THE PHANTOM PAIN' and 'PES 2016 - Pro Evolution Soccer -,' the latest titles in the METAL GEAR and Pro Evolution Soccer PC/console game series. These factors resulted in increases in revenues and operating profit compared to the same period in the previous year.

In Health & Fitness business, we made ongoing efforts to promote and spread Konami Sports Club services that support the concept of 'sustainable fitness' by further developing pricing plans that enable customers to select the most suitable options based on their personal usage frequency and facilities they wish to use. We also promoted operational efficiency of facilities, although we saw a decrease in sales mainly due to the closing of large-scale facilities. Overall, these factors resulted in increases 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 cabinet series, and 'SYNKROS' casino management system, continued steadily mainly in North America and Australia, against the backdrop of their current severe market environments.

In Pachislot & Pachinko Machines business, we released 'MAGICAL HALLOWEEN 5' following on from the releases of 'GUN SWORD,''SKYGIRLS-Zero, Futatabi' and 'SILENT HILL.' In addition, we released 'CR PACHINKO Castlevania (Japanese Title: CR PACHINKO Akumajo Dracula),' the second proprietary pachinko machine derived from KONAMI's original content.

During the year ended March 31, 2016, in light of rapid changes in market structure surrounding the Pachislot & Pachinko Machine industry, impairment and other losses on property, plant and equipment and intangible assets of ¥8,443 million were recognized (included in other income and other expenses, net in the consolidated statement of profit or loss) as we worked on restructuring our pachinko machine business.
In addition, following careful consideration regarding the recoverability of deferred tax assets based on projections for future business performance, we decided to extinguish part of our deferred tax assets and recognize deferred tax expenses of ¥3,895 million during the year ended March 31, 2016.

1. Consolidated Results of Operation

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2. Business Segment Information - Revenue

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3. Business Segment Information - Operating Income

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Overview for the Year Ended March 31, 2016

Digital Entertainment Business

1. Strong revenue generated from the mobile game 'JIKKYOU PAWAFURU PUROYAKYU,' which surpassed 22 million downloads and became top seller in the App Store sales ranking (game category) in March 2016 for the first time since its distribution began
2. Solid sales of mobile games, including 'PROFESSIONAL BASEBALL SPIRITS A (Ace)' released in October 2015, the WORLD SOCCER COLLECTION series, the CROWS×WORST series, and the Professional Baseball Dream Nine series
3. Steady performance of mobile games for the global market, such as 'Star Wars: Force Collection,' and 'Winning Eleven CLUB MANAGER' (known in overseas as 'PES CLUB MANAGER' )
4. Release of new arcade titles, including 'MÚSECA' (the latest arcade title in the music genre) and 'TSUNAGA Lotta' (a next-generation nationwide real-time ball lottery medal game), and stable recurring revenues from 'e-AMUSEMENT Participation' arcade games, including 'MAHJONG FIGHT CLUB' and music genre games
5. Steady sales of the Yu-Gi-Oh! TRADING CARD GAME series in the global market, with the world tournament held in Kyoto, Japan
6. Favorable performance of PC/console games on the global market, including the worldwide release of 'METAL GEAR SOLID V: THE PHANTOM PAIN,' the latest installment in the METAL GEAR series, and 'PES 2016 - Pro Evolution Soccer,' the latest addition to the twenty-year-spanning Winning Eleven series

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, implementing a free-form exercise plan without limits to usage frequency, discounted ticket books to be sold year-round, and the ability to combine usage of four franchise facilities with other Konami Sports Club facilities starting in October 2015
2. Opened the Nasu Highland Golf Club - Konami Sports Club Beginners' Golf Course in August 2015
3. Opened the renewed Grancise Yebisu Garden in September 2015, bringing the current number of top-brand Grancise facilities in operation to three
4. Developed our revamped personal training programs, including dieting program 'BIOMETRICS' and body conditioning program 'V-BODY'
5. Introduced the 'Konami Method,' a series of activities demonstrating the correct ways to perform various physical exercises, and condensed it into the video series 'Konami Methods Matome.' The videos feature athletes affiliated with the Konami Sports Club Gymnastics and Swimming Athlete Teams, and provide ideas for practice methods and ways for parents to stay active with their children. This measure intends to promote the sheer joy of exercise
6. Decrease in sales due to the closing of large-scale facilities and a reduction in the number of facilities with management outsourced to Konami Group in the previous fiscal year. However, this improvement in operational efficiency led to an increase in operating profit

Gaming & Systems Business

1. Favorable sales of the new 'Concerto' cabinet for video slot machines in North America. Initiated its sales in Asia and Oceania in the three-month period ended March 31, 2016
2. Expanded the Podium series video slot machine category and accelerated the development of products aimed at specific market demands amid the difficult market environment in North America, as well as focusing on expanding sales activities and offering a wider array of products in the Central and South American and European markets
3. 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
4. Achieved strong performance in Malaysia and the Philippines by rolling out a richly diverse product lineup, including 'Podium Stack' of the Podium series. Also conducted aggressive marketing in the South African market
5. Increase in operating expenses mainly due to slow growth in earnings under harsh market conditions on account of intensified competition and the stalled North American market, as well as advance investments, including product development costs resulting from expansion of the product lineup

Pachislot & Pachinko Machines Business

1. Launched 'MAGICAL HALLOWEEN 5,' the latest title in the MAGICAL HALLOWEEN series which operates at the top of the market among new standard pachislot machines, and received favorable reviews from users and pachinko parlor operators. This followed on from the releases of 'GUN SWORD,''SKYGIRLS-Zero, Futatabi' and 'SILENT HILL'
2. Released 'CR PACHINKO Castlevania,' the second proprietary pachinko machine derived from KONAMI's original content
3. In light of rapid changes in market structure surrounding the Pachislot & Pachinko Machine business, including the trend of the pachinko market shrinking and regulations for pachislot and pachinko machines being strengthened, impairment and other losses on property, plant and equipment and intangible assets were recognized (included in other income and other expenses, net in the consolidated statement of profit or loss) due to selection and concentration of the titles for restructuring of the pachinko machine business

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