Fiscal 2024 Konami Group Report April 1, 2023 – March 31, 2024 KONAMI GROUP CORPORATION 1 I sincerely hope that this report finds our shareholders in good health and happiness. I would like to express my genuine appreciation for your continued and generous support. In this era of the new normal following the COVID-19 pan- demic, global monetary tightening, inflation, especially in devel- oped nations like the United States and Europe, and in- creased geopolitical risks as a result of the Middle East crisis are all contributing to significant changes in the contemporary socioeconomic landscape. Despite this uncertain environment, our business portfolio was able to generate strong earnings. The Digital Entertainment Business made great strides, while the Amusement, Gaming & Systems, and Sports business segments all showed steady growth, reporting increases in both revenue and income. As a result, we are pleased to report record sales and profits for fiscal 2024. This strong performance has led to a year on year increase of ¥7 in our annual dividend per share, bringing it to a record ¥131. Sales and profits in fiscal 2025 are also expected to once again reach record highs, and we will aim to further increase dividend levels by expanding our business performance in the future. The KONAMI Group is pursuing a variety of initiatives to achieve further growth into the future. In the field of Entertainment, we are aiming for development based on three growth factors: further expansion of the revenue base for existing mainstay content (soccer, baseball, Yu-Gi-Oh!, etc.), rebooting the wealth of leading IP that we have built up over our more than 50-year history, and new businesses that utilize technologies and services such as Web3.0, non-fungible tokens (NFTs), artificial intelligence (AI), virtual and augmented reality (VR/AR), and fifth- and sixth-generation mobile communications (5G/6G). In the field of Sports, we will focus on light-asset/non-asset type businesses. Our plan is to expand into new business categories that require only a small initial investment, concentrating on specific high-demand categories, in addition to the contracted management of local government sports facilities. We are proactively expanding in these promising areas while continuing to reinforce our investments in human capital and health management, both of which are essential for long-term growth. The KONAMI Group continuously strives to catch the crest of the current era’s wave in order to deliver innovative products and services around the world and thereby achieve further sustainable growth and enhance its corporate value. As we work toward this goal, we would like to ask for the continued support of all of our shareholders. Kimihiko Higashio Representative Director, President To Our Shareholders 2 Note: Figures are in accordance with International Financial Reporting Standards (IFRS). For more detailed financial data, please visit the Financial Information page on the KONAMI website. https://www.konami.com/ir/en/ir-data/ In terms of the consolidated results for the fiscal year ended March 31, 2024, total revenue amounted to ¥360,314 million (a year-on-year increase of 14.6%), business profit was ¥88,212 million (a year-on-year increase of 55.8%), operating profit was ¥80,262 million (a year-on-year increase of 73.8%), profit before income taxes was ¥82,685 million (a year-on-year increase of 75.5%), and profit attributable to owners of the parent was ¥59,171 million (a year-on-year increase of 69.6%). In the Digital Entertainment Business, we launched Momotaro Dentetsu World-Chikyu wa Kibou de Mawatteru!-, the latest title of the nationally popular board game series Momotaro Dentetsu, has been released and already sold over one million copies. We began distribution, and the total number of down- loads across consoles, PC, and mobile platforms of eFootball™ 2024 has surpassed 700 million (750 million downloads as of April 2024) worldwide. To commemorate of the 25th anniversary of the Yu-Gi-Oh! card game, we held the “Yu-Gi-Oh! Duel Monsters: The Legend of Duelist QUARTER CENTURY” event at Tokyo Dome in February, which was attended by approximately 50,000 people. In eSports, the WBSC eBaseball™: POWER PROS World Finals of the Olympic eSports Series 2023, sponsored by the International Olympic Committee (IOC), were held and the competition was exciting. In the Amusement Business, the medal pusher game Momotaro Dentetsu -Medal game mo teiban!-, which was released in the previous fiscal year, continues to be well received by many of our customers. We have also launched a new music game for amusement facilities, Polaris Chord. In the pachislot machine space, we introduced Magical Halloween 8 as a “smart pachislot” product into the market, and it has maintained continuously high usage rates. In the Gaming & Systems’ slot machine business, we introduced the new DIMENSION 43x3™ cabinet from the DIMENSION series into the market. Furthermore, sales of DIMENSION 27™ and DIMENSION 49™ cabinets remain steady. In terms of gaming content, the All Aboard™ series continues to be popular. In the North American market, such titles as Stuffed Coins Toad™ and Dragon’s Law Fortune Bags™ are also performing very well. In the Australian market, the Bull Rush™ series is performing strongly. In casino management systems, SYNKROS® was introduced at Fontainebleau Las Vegas, a large-scale IR facility in Las Vegas. In the Sports Business, we opened 18 new “Pilates Mirror” studios, which offer machine Pilates, and have continued to receive positive feedback from many of our customers. In addition, we have utilized the operational and instructional expertise and history we have cultivated over the years to begin engaging in the contracted operation of sports facilities and school swimming classes, and this has been well received by its users. Total Revenue (¥ billion) Record High YoY 14.6% Increase 0 100 200 300 400 (Fiscal years ended March 31) 360.3 314.3 299.5 272.7 262.8 ’22 ’21 ’23 ’24 ’20 Operating Profit (¥ billion) 0 20 40 60 80 100 YoY 73.8% Increase (Fiscal years ended March 31) 46.2 74.4 36.6 31.0 80.3 ’20 ’22 ’21 ’23 ’24 Record High Business Profit (¥ billion) 0 20 40 60 80 100 YoY 55.8% Increase (Fiscal years ended March 31) 88.2 56.6 80.3 64.2 44.3 ’20 ’22 ’21 ’23 ’24 Record High Profit Attributable to Owners of the Parent (¥ billion) 0 20 40 60 80 YoY 69.6% Increase (Fiscal years ended March 31) 59.2 54.8 32.3 19.9 34.9 ’20 ’22 ’21 ’23 ’24 Record High Consolidated Financial Highlights 3 Topics Digital Entertainment Amusement PAWAPURO 30TH×PROSPI 20TH ANNIVERSARY Amusement Facilities Across Japan Launched Shohei Ohtani Appointed as Ambassador New Polaris Chord Music Game 2024 is the 30th anniversary of the PAWAFURU PUROYAKYU series (hereinafter, the PAWAPURO series), which features stylistically distinctive diminutive characters. This year also marks the 20th anniversary of the PROFESSIONAL BASEBALL SPIRITS series (hereinafter, the PRO SPIRITS series), which has realistic graphics and features real-life players and settings. To mark this occasion, we have appointed Shohei Ohtani as our ambassador for KONAMI baseball games. A number of projects to liven up the 30th anniversary of PAWAPURO series and the 20th anniversary of PRO SPIRITS series are ongoing, including making Shohei Ohtani appear in PAWAFURU PUROYAKYU 2024–2025, which is scheduled to be released in July 2024, as well as in the mobile games PAWAFURU PUROYAKYU Eikan Nine Cross Road and JIKKYOU PAWAFURU PUROYAKYU. KONAMI has been developing baseball games for many years and providing new ways to enjoy baseball. Going forward, we aim to further expand the world of baseball together with Shohei Ohtani, a two-way player who is working to promote baseball. In March 2024, we launched the new Polaris Chord music game at amusement facilities across Japan. Designed for the current young generation of players, this arcade music game features music that has gone viral on social media, including songs by popular singers and VTu- bers. This game has a keyboard-type button device for players to tap and slide, and two fader devices that move left and right. Although this music game is straightforward to play, it offers a dynamic and unique experience within the realm of amusement machines and is intuitive enough that even beginners can enjoy it. One of this game’s features is that while the player enjoys the game, other people can enjoy watching the gameplay along with 3-D music videos featuring a variety of characters displayed on the top monitor. Going forward, we will continue to share the enjoyment of KONAMI’s music games with more customers through various events, including collaborations with VTubers. 4 Gaming & Systems Sports Equipment in the DIMENSION Series, Opening of a New Type of Personal Gym with Unique Mirrors Stuffed Coins™ Series Performing Well “Personal 30” Stuffed Coins™ series, one of KONAMI’s slot series, has been well received in North America, South America, and Europe. This game uses the DIMENSION 27™ slot machine, which has three stacked 27-inch screens, as well as the DIMENSION 43x3™ slot machine, which has three stacked 43-inch screens. This series features the ability to seamlessly make jackpots and bonuses flow across multiple monitors, with three expanded themes connected with the animals—Stuffed Coins Toad™, Stuffed Coins Pig™, and Stuffed Coins Rabbit™—that appear in the game scenarios. Stuffed Coins™ has been very well received in the market, ranking in the casino industry’s Top 25 Indexing Games—Core, Parent Theme for ten months, and it was also nominated for “Most Innovative Land-Based Game” in the 2024 EKG Slot Awards. Going forward, we will continue delivering products that fulfill the needs of the market to customers around the world by applying our advanced development and technological capabilities. Konami Sports opened the first branch of the Personal 30 gym in April 2024 in Kyodo (Setagaya-ku, Tokyo). “Personal 30” is a new type of personal training gym that was created based on the concept of getting the body you want in 30 minutes. Konami Sports conducts efficient training in a short time, drawing upon its 50-year history of exercise instruction. While training, customers and their coaches can check their form in mirrors that have been uniquely arranged to display angles and back views that exercisers cannot usually see, enabling them to strive to achieve their ideal body. Since only two groups of people can train at the same time, customers can concentrate on their training without worrying about being watched by others. The facility has attracted lots of attention, mainly from women, since its opening in April 2024. We will combine our long-cultivated exercise training experience with new perspectives to provide services that meet diversifying needs. 5 KONAMI Games Loved Across Generations: PAWAPURO 30th × PROSPI 20th Anniversary and “Yu-Gi-Oh! Card Game” 25th Anniversary KONAMI’s Frontline KONAMI has been taking on new challenges and continues to evolve, creating widely varied content that is and has been loved by people for a long time. 2024 marked the 30th anniversary of the PAWAFURU PUROYAKYU series (hereinafter, the PAWAPURO series), first released in 1994. The PAWAPURO series offers varied gameplay with a unique base- ball experience to appeal to many customers, including the best part of baseball—the competition—where players enjoy pitching and hitting, as well as modes where you can train your own original player, relive moments from the life of a professional baseball player, or lead your high school baseball team to victory as a manager. Two titles, JIKKYOU PAWAFURU PUROYAKYU (50 million total down- loads), and PAWAFURU PUROYAKYU Eikan Nine Cross Road (14 million registered users), have also been published as mobile games, making it possible to enjoy PAWAPURO anytime, anywhere. The newest console game, PAWAFURU PUROYAKYU 2024- 2025 (scheduled for release in July 2024), which commemorates the 30th anniversary of the series, will feature many legendary former players who have garnished the history of professional baseball, as well as KONAMI baseball game ambassador Shohei Ohtani, who will also appear in various modes of the game. Along with the PAWAPURO series, another of one KONAMI’s iconic baseball series, the PROFESSIONAL BASEBALL SPIRITS series, marked the 20th anniversary of its 2004 launch in 2024. This series uses 360-degree scanning technology to record professional baseball players and reproduces them in three dimensions as well as laser scanning technology that measures the exact shape of stadiums, enabling players to enjoy realistic baseball. The PROFESSIONAL BASEBALL SPIRITS A (Ace) mobile game (53 million total downloads) has been well-received by many baseball fans because it allows players to create their own dream lineups and conveniently enjoy authentic baseball games and training. The latest console PAWAFURU PUROYAKYU 2024-2025 PROFESSIONAL BASEBALL SPIRITS 2024-2025 6 “Yu-Gi-Oh! Duel Monsters: The Legend of Duelist QUARTER CENTURY” event making the 25th anniversary of the Yu-Gi-Oh! card game game, PROFESSIONAL BASEBALL SPIRITS 2024-2025 (scheduled for release in 2024), was created to commemorate the 20th anni- versary of the series, and was made using our proprietary eBase- ball™ Engine. KONAMI’s next-generation engine produces every motion and sound inside the stadium to bring customers a new dimension within baseball games, from the trajectory of a ball being hit, the spectacular movements of a first-class player, and the huge crowd erupting in cheers just like at a real stadium. The Yu-Gi-Oh! card game continues to be loved by fans all over the world and celebrated its 25th anniversary in February 2024. The “Yu-Gi-Oh! Duel Monsters: The Legend of Duelist QUARTER CEN- TURY” event was held at Tokyo Dome to commemorate the game’s 25th anniversary. The Yu-Gi-Oh! digital game using cutting-edge technologies such as VR and AI, was revealed and received a great response from the 50,000 event participants. Going forward, KONAMI will continue developing content that can be enjoyed across the generations, and we will continue providing new enter- tainment and fun to even more customers. Momotaro Dentetsu Kyoiku-ban Lite -Nihon-tte Omoshiroi!- Momotaro Dentetsu Series Well Received in the Education Field In 2023, KONAMI started providing the digital educational material Momotaro Dentetsu Kyoiku-ban Lite -Nihon-tte Omoshiroi!- (hereinafter, Momotaro Dentetsu: Education Edition), for free. Created with a focus on compatibility with educational content provided through the Momotaro Dentetsu series, which, using traditional board game motifs, allows players to travel around Japan and buy properties in various places. The game has been introduced by many schools and regional governments, and the total number of schools using it has surpassed 7,000, including more than 4,000 elementary schools (20% of Japan’s elementary schools) and middle and high schools (as of March 2024). Momotaro Dentetsu: Education Edition is a digital educational material that can be used on a PC using a web browser or on a tablet, with the game balance adjusted for use in educational settings. In addition to learning about each prefecture’s special- ties and famous places in a fun way, each school can adjust the way they use the program, such as for practicing difficult-to-read place names and calculating profit rates. The content of this educational material has been continuously improved while incorporating feedback from those in relevant fields, and we plan to continue updating it in the future. Also, starting in 2024, we will conduct joint research with the University of Tokyo to confirm the educational value and effective facilitation of learning provided by this educational material. Common Stock Authorized 450,000,000 shares Issued 143,500,000 shares (Including 7,942,166 treasury shares) Number of Shareholders 21,710 Guide to Investor Relations (IR) Site Our website includes an IR section that provides easy access to our latest financial information, news releases, and other relevant IR information. https://www.konami.com/ir/en/ The 10 Largest Shareholders Note: The above shareholding ratios are calculated after the deduction of treasury shares. ©KONAMI Company Name KONAMI GROUP CORPORATION Headquarters 1-11-1, Ginza, Chuo-ku, Tokyo 104-0061, Japan Tel: 81-3-6636-0573 Fax: 81-3-6893-1573 Founded March 21, 1969 Incorporated March 19, 1973 Paid-in Capital ¥47,398 million Consolidated Employees 8,843 (As of March 31, 2024) (Including temporary employees, converted at 160 hours per month) Website https://www.konami.com Shareholder Shares (Thousands) % of Total The Master Trust Bank of Japan, Ltd. (Trust Account) 28,039 20.68 Kozuki Foundation 17,100 12.61 KOZUKI HOLDING B.V. 15,700 11.58 Custody Bank of Japan, Ltd. (Trust Account) 15,107 11.14 Kozuki Capital Corporation 7,048 5.20 JP MORGAN CHASE BANK 380815 6,530 4.82 KOREA SECURITIES DEPOSITORY-SAMSUNG 3,538 2.61 HSBC HONGKONG-TREASURY SERVICES A/C ASIAN EQUITIES DERIVATIVES 2,323 1.71 STATE STREET BANK WEST CLIENT - TREATY 505234 1,886 1.39 JPMorgan Securities Japan Co., Ltd. 1,357 1.00 Fiscal Year-End March 31 Ordinary General Meeting of Shareholders June Record Dates for Shareholders Annual shareholders’ meeting: March 31 Year-end dividend: March 31 Interim dividend: September 30 Other (when necessary): As announced in advance Transfer Agent Sumitomo Mitsui Trust Bank, Limited 1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan Location of Transfer Agent Handling Office Sumitomo Mitsui Trust Bank, Limited Stock Transfer Agency Department 1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan Mailing Address Sumitomo Mitsui Trust Bank, Limited Stock Transfer Agency Department 2-8-4, Izumi, Suginami-ku, Tokyo 168-0063, Japan Website https://www.smtb.jp/english Public Notices Shown on the Company’s website: https://www.konami.com/ir/en/ Stock Exchange Listings Tokyo and London (As of March 31, 2024) Corporate Data Shareholder Information Stock Information