April 1, 2011 – March 31, 2012

Fiscal 2012

Konami Group Report

KONAMI CORPORATION

1

To Our Shareholders

I sincerely hope that this report finds our shareholders prospering and in

good health.

I was recently appointed as president and representative director of KONAMI

CORPORATION.

This year, KONAMI will mark its 40th anniversary since its establishment, and I

feel a great sense of responsibility to have been selected as the new president at

this important turning point.

The Konami Group will do its utmost to achieve further growth and be a company

that is highly regarded by society.

At this point, the future course of business conditions in Japan remains unclear as

a result of the influence of the Great East Japan Earthquake, the prolonged strength

of the yen, and the monetary crises in Europe. Our ability to record continued steady

growth in this operating environment is a result of the support we have received

from all our stakeholders.

As we move forward, we will endeavor to develop businesses not only in Japan

but overseas. It is essential we aim to be the first to grasp emerging trends in global

markets and lead the industry forward. In addition, providing “Valuable Time” to

people around the world and helping people to live healthier lifestyles are important

social missions for KONAMI.

In the future, in the Group’s fields of business—Digital Entertainment, Health &

Fitness, Gaming & Systems, and Pachinko & Pachinko Slot Machines—we will

constantly address changes in the operating environment and strive to manage

the Group in a way that ensures sustained growth.

On behalf of the Konami Group, I ask you, our valued shareholders, for your

continued support and encouragement of our efforts.

July 2012

Takuya KozukiPresident and Representative Director

Digital Entertainment Segment

Business Content We produce a wide range of products, including social content, computer and video games, amusement arcade video games, and card games.

Gaming & Systems Segment

Business Content We design, manufacture, sell, and service gam-ing machines and casino management systems in the globally expanding gaming market.

Health & Fitness Segment

Business Content We operate fitness clubs in addition to design-ing, manufacturing, and selling fitness machines and health-related products.

Pachinko & Pachinko Slot Machines Segment

Business Content We handle all business aspects related to pachinko and pachinko slot machines from research, design, and production to sales.

2

Four Pillars Supporting KONAMI Operations

Digital Entertainment

Health & Fitness

Total Number of Registered Users for KONAMI Social Content Surpasses 20 Million

Konami Sports Club “Undo-Juku” ~ Aiming to Support Child Development through a Variety of Sports ~

By the end of March 2012, the total number of registered us-

ers for KONAMI social content, which is available on social net-

working sites (SNS), had surpassed 20 million. In addition,

KONAMI had outstanding results at the GREE Platform Award

2011, which was held in March 2012. DRAGON COLLECTION,

Professional Baseball Dream Nine, CROWS × WORST - Saikyou

Densetsu, and J. LEAGUETM Dream Eleven had the distinction of

receiving awards.

DRAGON COLLECTION, which won an award for the third time

this year, has maintained tremendous popularity since its

launch in September 2010.

Leveraging the game management know-how that we

have cultivated with these popular titles, we launched STAR

WARSTM COLLECTION, based on the Star WarsTM movie series, and

HUNTER CHRONICLE, which is linked with the STEEL CHRONICLE

amusement arcade video game.

Also, we communicated the appeal and world settings of our

game content through a variety of platforms and media, such as

manga serializations for SENGOKU COLLECTION and TV anima-

tion broadcasts.

Through the continued provision of high-quality social

games, the Konami Group will strive to offer the enjoyment of

KONAMI content to even more customers while contributing to

the sound development of the social content market.

Konami Sports Club is developing the “Undo-Juku” as an after-

school club for children.

“Undo-Juku” is divided into classes in accordance with the

children’s ages, physical strength, and capabilities. High-level

guidance is provided by staff members with advanced training,

and a wide-ranging lineup of classes, such as swimming, gym-

nastics, golf, tennis, soccer, baseball, dance, karate, and culture,

has been well received.

Besides the regular lessons, there are special classes offered

by Kohei Uchimura and other members of the KONAMI Gym-

nastics Team, and there is a broad array of events to cultivate an

interest in sports and motivate participants, such as nationwide

tournaments in each field.

Also, in March, at the JAPAN HIPHOP CHAMPIONSHIP 2012,

the “Star Team” junior funk team, selected from KONAMI dance

schools, came in second place in

the junior division and first place

for the second year in a row in the

varsity division.

In the future, KONAMI will strive

to contribute to improving the

athletic skills of children and pro-

moting their sound growth

through these types of programs.

3

Topics

Gaming & Systems

Pachinko & Pachinko Slot Machines

Actively Exhibiting at Gaming Shows Around the World

Mesmerizing players with diverse dramatic appeal ~ Launch of Castlevania III pachinko slot machine ~

KONAMI actively exhibited at many gaming shows around

the world and received positive reviews from large numbers of

casino operators.

Major Shows that KONAMI attended in the Second Half of Fiscal 2012.3

• GlobalGamingExpo(LasVegas,Nevada,UnitedStates)

• SAGSEBuenosAires(BuenosAires,Argentina)

• InternationalCasinoExhibition(London,UnitedKingdom)

• NSWClubTradeExpo(GoldCoast,Australia)

• ClubManagers’AssociationAustraliaHospitalityExpo

(Sydney, Australia)

• Hospitality&GamingAustralasia(Brisbane,Australia)

KONAMI products were well received at the Global Gaming

Expo, the largest gaming industry trade show. These included

KP3, our next-generation 3D slot machine platform, and new

models with distinctive KONAMI entertainment value and

game play, such as Advantage 3, which effectively uses lights

and liquid crystal displays.

Moreover, we actively exhibited at gaming trade shows in

regions around the world, such as SAGSE Buenos Aires, in Latin

America; the International Casino Exhibition, in Europe; and the

Club Managers’ Association Australia Hospitality Expo in Aus-

tralia. At these shows, we exhibited content that has been pop-

ular in North America in formats suitable for each local market.

We also demonstrated the Konami Casino Management Sys-

tem. With the use of a network connection, this system makes it

possible to manage, in real time, slot machine and customer

information and to handle casino accounting management.

Our exhibits were well received by local casino operators.

In the future, KONAMI will continue to provide new enter-

tainment and valuable time to customers around the world

with gaming products

that meet local market

needs.

KONAMI launched Castlevania III, the latest entry in the popu-

lar pachinko slot machine series, in pachinko halls throughout

Japan. Castlevania III has superb entertainment value, with at-

tractive graphics and full-fledged music, recorded with the use

of a chorus—features that have been popular throughout the

series. In addition, it has a new game system. With enhanced

functionality and entertainment value, Castlevania III offers

even more to captivate players.

Moreover, in cooperation with the

mobile site “e-SLOT,” users can easily

enjoy the display of results and the

ability to customize music. Moving

forward, KONAMI will continue striv-

ing to create pachinko slot machines

that are even more enjoyable for

customers.

4

Topics

0

100

200

400

300

’08 ’09 ’10 ’11 ’12

Net Revenues

265.8262.1 258.0309.8297.4

(¥ billion)

(Fiscal years ended March 31)

0

10

20

30

41.0

18.7 20.8

27.4

33.840

Operating Income(¥ billion)

(Fiscal years ended March 31)’08 ’09 ’10 ’11 ’12

0

5

10

25

20

15

23.0

12.913.310.9

18.3

Net Income(¥ billion)

(Fiscal years ended March 31)’08 ’09 ’10 ’11 ’12

KONAMI IR Search

5

Consolidated Financial Highlights (U.S. GAAP)

Overview of the Fiscal YearIn the Digital Entertainment Segment, we continued to record growth

in the number of registered users for our social content, centered on DRAGON COLLECTION, SENGOKU COLLECTION, and Professional Baseball Dream Nine. In video game software, strong growth was recorded by our core titles, such as Winning Eleven (known as Pro Evolution Soccer in the United States and Europe).

In the Health & Fitness Segment, we provided services to increasingly health-conscious customers. For example, in order to meet diversifying customer needs, we drew on our strengths to develop and introduce new services that utilize IT in exercise guidance, nutritional guidance, and health management for individuals.

In the Gaming & Systems Segment, our sales including the Podium video slot machine and the Advantage 5 five-reel mechanical slot ma-chine series were strong, especially in the U.S. market.

In the Pachinko & Pachinko Slot Machines Segment, we delivered a solid performance. Unit shipments of MAGICAL HALLOWEEN 3 set a re-cord high for the Group’s pachinko slot machines, and the release of the GAMBARE GOEMON 2 and Castlevania III pachinko slot machines, which feature original KONAMI content, also resulted in record high sales.

In terms of the consolidated results for the year ended March 31, 2012, net revenues amounted to ¥265,758 million (a year-on-year increase of 3.0%), operating income was ¥40,950 million (a year-on-year increase of 97.0%), income before income taxes and equity in net income of affiliat-ed companies was ¥40,026 million (a year-on-year increase of 109.8%), and net income attributable to KONAMI CORPORATION was ¥23,012 mil-lion (a year-on-year increase of 77.9%). Including the interim dividend of ¥25 per share, the full-year dividend has been set at ¥50 per share. Oper-ating income and net income attributable to KONAMI were new record highs for the Company.

Consolidated Statements of Income (Key items)(Yen in millions)

As of March 31, 2012

As of March 31, 2011

Net revenues 265,758 257,988

Operating income 40,950 20,791

Income before income taxes

40,026 19,082

Net income 23,012 12,934

Consolidated Statements of Cash Flows (Key items)(Yen in millions)

As of March 31, 2012

As of March 31, 2011

Net cash provided by (used in) operating activities

37,915 26,605

Net cash used in investing activities

(7,646) (10,773)

Net cash used in financing activities

(13,254) (6,182)

Cash and cash equivalents, end of period

76,451 59,541

For more-detailed financial data, please visit the KONAMI website and look under the Financial Information page.

Consolidated Balance Sheets (Key items)(Yen in millions)

As of March 31, 2012

As of March 31, 2011

Current assets 161,965 148,934

Fixed assets 166,041 164,957

Total assets 328,006 313,891

Current liabilities 67,890 63,155

Long-term liabilities 44,396 52,329

Equity 215,720 198,407

Total liabilities and equity

328,006 313,891

Kohei Uchimura Koji Yamamuro Yusuke Tanaka Takuro Fujii

Kohei Uchimura, Koji Yamamuro, and Yusuke Tanaka, from the

KONAMI Gymnastics Team, and Takuro Fujii, from the KONAMI Swim-

ming Team, have been chosen to compete at the London Olympics,

which will be held in July.

Kohei Uchimura, who last year became the first person to win the

gold in the men’s all-around competition for three consecutive years

in the world championships, was highly evaluated by the Japan

Gymnastic Association for his achievements and capabilities. Prior

to the Olympic trials, held in April, he was chosen to represent Japan

in the Olympics for the second time, following his participation in

the Beijing Olympics.

Koji Yamamuro and Yusuke Tanaka were selected to represent Ja-

pan at the Olympics based on their performances at the 51st NHK Cup,

held on April 4 and 5, and at the 66th All Japan Artistic Gymnastics All

Around Championships, held in April. The three KONAMI gymnasts

are expected to compete in individual artistic gymnastics events and

to strive for the gold medal in the team event.

Takuro Fujii took first place in the 100m butterfly at Japan Swim

2012 / 30th Olympic swim team trials, which were held at the Tokyo

Tatsumi International Swimming Center, and he was chosen to repre-

sent Japan at the London Olympics. This will be his second Olympics,

following his participation in the Beijing Olympics.

Moving forward, the Konami Group will continue to contribute to the

wide range of customer health support activities undertaken by the

KONAMI Sports Club and to the promotion and development of the

Japanese sporting world through the nurturing of KONAMI athletes.

Four employees from the KONAMI Gymnastics and Swimming Teams will participate in the London Olympics, the pinnacle of international sports competition.

Gymnastics Gymnastics Gymnastics Swimming

6

Hot News

Stock Information (As of March 31, 2012)

Shareholder Information

Fiscal Year-End March 31Ordinary General Meeting of Shareholders JuneRecord Date for Shareholders Annual shareholders’ meeting: March 31 Year-end dividend: March 31 Interim dividend: September 30 Other (when necessary): As announced in advanceTransfer Agent Sumitomo Mitsui Trust Bank, Limited 1-4-1, Marunouchi, Chiyoda-ku, Tokyo, JapanLocation of Transfer Agent Handling Office Sumitomo Mitsui Trust Bank, Limited Stock Transfer Agency Department 4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan Mailing Address Sumitomo Mitsui Trust Bank, Limited Stock Transfer Agency Department 4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8233, Japan Telephone Inquiries 0120-176-417Internet URL http://smtb.jp/english/index.htmlPublic Notices Shown on the Company’s website http://www.konami.co.jp/en/ir/Stock Exchange Listings Tokyo, New York, and London

For ADR Holders

Depositary and Transfer Agent for American Depositary Receipts: JPMorgan Chase Bank, N.A. 1 Chase Manhattan Plaza, Floor 58, New York, NY 10005, U.S.A.ADR Holder Contact: JPMorgan Service CenterJPMorgan ADR Holder Transfer Services: Telephone Inquiries Toll-free U.S. & Canada 1-800-990-1135 Outside U.S. 1-651-453-2128 Hearing impaired 1-866-700-1652 An automated IVR system is available 24 hours / 7 days a week. Representatives are available 8:00 am to 8:00 pm EST weekdays. Internet URL Visit http://www.adr.com and go to the Shareholder Services page. Mail for regular correspondence JPMorgan Chase Bank, N.A. P.O. Box 64504, St. Paul, MN 55164-0504, U.S.A.

© 2012 KONAMI

Common Stock

Authorized: 450,000,000 shares

Outstanding: 143,500,000 shares (including 4,879,848 treasury shares)

Number of shareholders: 54,166

The 10 Largest Shareholders

Shareholder’s NameShares

(Thousands) % of Total

Kozuki Foundation For Sports and Education 15,800 11.40

Kozuki Holding 15,700 11.33

The Master Trust Bank of Japan, Ltd. (Trust Account) 11,380 8.21

Japan Trustee Services Bank, Ltd. (Trust Account) 8,542 6.16

Kozuki Capital Corporation 7,048 5.08

Sumitomo Mitsui Banking Corporation 4,017 2.90

JPMorgan Securities Japan Co., Ltd. 2,852 2.06

Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)

2,342 1.69

State Street Bank and Trust Company 1,977 1.43

Mizuho Securities Co., Ltd. 1,900 1.37

Note: The above shareholding ratios are calculated after the deduction of treasury shares.

Guide to Investor Relations Site

Our website includes an investor relations section that provides easy access to our

latest financial information, news releases, and other relevant IR information.

URL: www.konami.co.jp/en/ir

Company Name KONAMI CORPORATION

Headquarters 9-7-2, Akasaka, Minato-ku,

Tokyo 107-8323, Japan

TEL: 81-3-5770-0573

FAX: 81-3-5412-3300

Founded March 21, 1969

Incorporated March 19, 1973

Paid-in Capital ¥47,399 million

Home Page URL http://www.konami.co.jp/en

Corporate Data (As of March 31, 2012)