Financial

Consolidated Financial Results: Nine Months Ended December 31, 2020

Published by Konami Holdings Corporation

Summary

Konami achieved record-high business, operating, and pre-tax profits for the nine-month period ending December 31, 2020, despite a marginal 0.6% decline in total revenue to ¥191,930 million. This financial performance highlights a strategic pivot toward digital growth, as the Digital Entertainment segment surged by 33.1% to reach ¥144,136 million. This robust expansion effectively insulated the company from the severe operational disruptions caused by the global pandemic, which disproportionately impacted physical business segments. The Amusement, Gaming & Systems, and Sports divisions faced substantial headwinds throughout this period. The Sports segment, in particular, experienced a 43.9% revenue decline to ¥25,925 million, resulting in a business loss of ¥4,027 million due to mandatory facility closures. In response, the company initiated a comprehensive restructuring of its cost base, which included closing underperforming locations and pivoting toward digital and outsourced fitness services to stabilize long-term operations. Overall, the group’s profit rose significantly to ¥27,006 million, compared to ¥16,312 million in the prior year. While the company maintains a stable dividend policy of 45.00 yen per share, the ongoing economic volatility associated with the pandemic has precluded the issuance of a consolidated earnings forecast for the fiscal year ending March 31, 2021. The results underscore a successful transition toward digital-first revenue streams that effectively offset the contraction of traditional, location-based industry segments during a period of global instability.

From the report

Consolidated Financial Results for the Nine Months Ended December 31, 2020 February 4, 2021 (Prepared in Accordance with IFRS) Address: 11-1, Ginza 1-chome, Chuo-ku, Tokyo, Japan KONAMI HOLDINGS CORPORATION Stock code number, TSE: 9766 Ticker symbol, LSE: KNM URL: https://www.konami.com/ Shares listed: Tokyo Stock Exchange and London Stock Exchange Representative: Kimihiko Higashio, Representative Director, President Contact: Junichi Motobayashi, Corporate Officer, General Manager, Finance Division Beginning date of dividend (Phone: +81-3-6636-0589) payment: - (Amounts are rounded to the nearest million, except percentages and per share amounts) 1. Consolidated Financial Results for the Nine (Millions ~~of Yen, ~~ except percentages ~~and per ~~ share ~~amounts)~~ (1) Consolidated Results of Operations Months Ended December 31, 2020 ~~Profit ~~ Business Operating Profit before Profit for the ~~attributable ~~ to Revenue profit profit income taxes period owners of the Nine months ended December 31, 2020 191,930 45,803 40,529 39,521 27,006 parent % change from previous year (0.6)% 36.4% 69.0% 68.2% 65.6% 27,003 Nine months ended December 31, 2019 193,106 33,585 23,976 23,494 16,312 65.6% % change from previous year 0.2% (16.6)% (39.2)% (40.0)% (40.1)% 16,309 Total comprehensive income for the period: Nine months ~~ended December ~~ 31, 2020: ¥ ~~26,294 ~~ million; ~~65.5%~~ (40.1)% Note) Business profit is calculated by Nine months ended December 31, 2019: ¥15,885 million; (43.

5.6% % change from previous year 0.2% (16.6)% (39.2)% (40.0)% (40.1)% 16,309 Total comprehensive income for the period: Nine months ~~ended December ~~ 31, 2020: ¥ ~~26,294 ~~ million; ~~65.5%~~ (40.1)% Note) Business profit is calculated by Nine months ended December 31, 2019: ¥15,885 million; (43.5)% deducting “cost of revenue” and “selling, general and administrative expenses” from “revenue.” Basic earnings per Diluted earnings per share (attributable to share (attributable to owners of the parent) owners of the parent) Nine months ended December 31, 2020 (yen) (yen) Nine months ended December 31, 2019 202.70 199.46 120.60 118.80 (2) Consolidated Financial Position (Millions of Yen, except percentages ~~and ~~ per share amounts) Total equity Ratio of equity Total assets Total equity attributable to owners attributable to owners December 31, 2020 482,896 291,305 of the parent of the parent March 31, 2020 419,134 268,943 290,500 60.2% 268,141 64.0%

2. Cash Dividends Cash ~~dividends ~~ per ~~share~~ (yen) Record Date First quarter Second ~~quarter ~~ Third quarter Year end Annual Year ended March 31, 2020 end - end end ~~Year ending March 31, 2021~~ - 38.00 - 7.00 45.00 ~~Year ending March 31, 2021~~ 22.50 - 22.50 45.00 (Forecast) Recently announced ~~change ~~ in ~~dividend ~~ forecasts for ~~the ~~ fiscal year ~~ending ~~ March ~~31, ~~ 2021 during Note) the three months ~~ended ~~ December 31, 2020: No It is difficult to reasonably calculate the impact of the coronavirus outbreak on our projected consolidated results 3. Consolidated Earnings Forecast for the Year Ending March 31, 2021 at present. Projected consolidated results for the fiscal year ending March 31, 2021 has consequently not been determined. We will carefully assess the projections and announce it promptly when we can disclose it. Noted Items None (1) Changes in significant consolidated subsidiaries during the period (status changes of subsidiaries due to changes in the scope of consolidation): (2) 1. Changes in accounting policies required by IFRS: No Changes in accounting policies and accounting estimate 2. Other changes: Yes 3. Changes in accounting estimate: No (3) 1. Number of shares issued: (Treasury shares included) Number of shares issued (Share capital) As of December 31, 2020 143,500,000 shares 2. As of March 31, 2020 143,500,000 shares Number of treasury shares: As of December 31, 2020 10,286,091 shares 3.

Yes 3. Changes in accounting estimate: No (3) 1. Number of shares issued: (Treasury shares included) Number of shares issued (Share capital) As of December 31, 2020 143,500,000 shares 2. As of March 31, 2020 143,500,000 shares Number of treasury shares: As of December 31, 2020 10,286,091 shares 3. As of March 31, 2020 10,285,500 shares Average number of shares outstanding: Nine months ended December 31, 2020 133,214,348 shares Nine months ended December 31, 2019 135,232,809 shares

Earnings release (Kessan Tanshin) regarding these consolidated financial results is not subject to auditing procedures. Cautionary statement with respect to f Statements made in this document orward-looking statements and other matters: including the above with respect to our current plans, estimates, strategies and beliefs, statements forecasts, are forward-looking statements about our future performance. These to it and, are based on management's assumptions and beliefs in light of information currently available cause therefore, you should not place undue reliance on them. A number of important factors could actual results to be materially different from and worse than those discussed in forward-looking statements. Such factors include, but are not limited to: (i) changes in economic conditions affecting our operations; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar and the Euro; (iii) our 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; (iv) the timing of the release of new game titles and products, especially game titles and products that are part of historically popular series; (v) our ability to successfully expand internationally with a focus on our Digital Entertainment, Amusement, and Gaming & Sys

anging consumer preferences; (iv) the timing of the release of new game titles and products, especially game titles and products that are part of historically popular series; (v) our ability to successfully expand internationally with a focus on our Digital Entertainment, Amusement, and Gaming & Systems businesses; (vi) our ability to successfully expand the scope of our business and broaden our customer base through our Sports business; (vii) regulatory developments and changes and our ability to respond and adapt to those changes; (viii) our expectations with regard to further acquisitions and the integration of any companies we may acquire; and (ix) the outcome of existing contingencies. Please refer to page from 9 to 12 for further information regarding our business forecasts. KONAMI HOLDINGS CORPORATION (the “Company”) disclosed the supplemental data for the consolidated financial statements via the Company's website on February 4, 2021.

Pages: 21
Words: 7,047
Type: Financial

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