Final Results Part 3
Konami Co Ltd
16 May 2000
PART 3
6. Market Value of Securities
(millions of yen)
March 31, 2000
Balance sheet Market Unrealized
Amount value gain/loss
(1) Current assets
Stocks 0 0 0
Subtotal 0 0 0
(2) Fixed assets
Stocks 10 3 -7
Subtotal 10 3 -7
Total 11 3 -7
Note: 1. Market value
(1) Listed securities ...Principally closing prices on the
Tokyo Stock Exchange.
(2) Over-the counter securities ... Trading prices
announced by the Japan Securities Dealers Association.
2. Figures in parentheses denote the amount of subsidiaries.
3. Non-marketable securities not listed above.
Included in 'Fixed assets' March 31, 2000
Funds and investments in trusts
within closed period Y 200 million
Unlisted Stocks excluding
over-the-counter securities Y 539 million
(shares of subsidiaries) (Y 165 million)
7. Contract value, Market value and
Unrealized gain(loss) of Derivative Transaction
(Millions of yen)
March 31, 2000
Unrealized
Contract amount Market gain
(term over 1 year) value (loss)
Unlisted transactions
Interest swaps
Receive floating/ 1,000 - -
pay fixed (-)
Total 1,000 - -
(-)
Note: Above swap transaction was arranged to hedge against interest rate
fluctuations on a (floating-rate) long-term loan.
The unrealized gain/loss related was immaterial, and had no effect on the
Company's Statements of Income.
8. Summary of non-consolidated financial results
- FISCAL YEAR 2000 (Year ended March 31, 2000)
May 16,2000
KONAMI CO, LIMITED
3-1, Toranomon 4-chome, Minato-ku, Tokyo, Japan
Stock Code Number: 9766
Shares Listed: Tokyo Stock Exchange. Ltd.(First Section)
Osaka Securities Exchange, Ltd.
(First Section)
London Stock Exchange, Ltd.
Singapore Exchange, Ltd. (Main Board)
Interim dividend payment: Paid
For further information,
please contact: Noriaki Yamaguchi,
Managing Director
Phone:03(3578)0573
http://www.konami.com
1. Date of Board Meeting on financial results: May 16,2000
2. Date of Annual Stockholders Meeting: June 23, 2000
3. Fiscal Year 2000 non-consolidated financial results (for the year ended
March 31, 2000)
(1) Performance (Figures truncated)
Net (Year-on- Operating (Year-on Operating (Year-on
sales year income year income year
change) change) change)
(Y millions) % (Y millions) % (Y millions) %
Fiscal
2000 130,124 (29.1) 25,613 (80.2) 25,374 (96.4)
Fiscal
1999 100,779 (40.0) 14,215 (149.0) 12,918 (133.7)
Net (Year-on- Net Net Income- Ordinary Ordinary
Income year Income Income equity income to income to
Change) per per ratio assets sales
Share share ratio ratio
(fully
diluted)
(Y millions) (%) (Y) (Y) (%) (%) (%)
Fiscal
2000 16,236 (224.3) 290.26 288.63 26.4 22.6 19.5
Fiscal
1999 5,006 (0.1) 141.15 132.99 10.3 13.7 12.8
Notes: 1. Average number of shares outstanding
Fiscal Year 2000 55,937,977 shares
Fiscal Year 1999 35,466,584 shares
2. Changes in accounting policy
Refer to Summary of Significant Policies
(2) Dividends
Cash dividends per share Total Payout Ratio of
Total Interim Fiscal year-end Dividend ratio cash
Payout dividends
to share-
holders
equity
(Y) (Y) (Y) (Y millions) % %
Fiscal
2000 97.00 45.00 52.00 5,510 33.9 7.7
Fiscal
1999 43.00 15.00 28.00 1,536 30.7 3.0
Note: There was no commemorative or special dividend included in Fiscal 2000.
(3) Financial position
Total assets Total share- Equity-assets Total share-
holders' ratio holders' equity
equity per share
(Y millions) (Y millions) % (Y)
Fiscal 2000 120,859 71,154 58.9 1,251.21
Fiscal 1999 103,527 51,705 49.9 1,433.51
Note: 1. Number of shares outstanding
Fiscal Year 2000 56,868,783 shares
Fiscal Year 1999 36,069,374 shares
(Par-value stock: 100-share units)
(4) Fiscal Year 2001 forecast (Year ending March 31, 2001)
Cash dividends per share
Net sales Ordinary Net income Interim Year-end
income
(Ymillions) (Ymillions) (Ymillions) (Y) (Y)
Fiscal 2001
(Six months
ending September
30, 2000) 60,000 8,000 4,500 15.00 - -
Fiscal 2001
(Year ending
March 31,2001 124,000 17,000 9,500 - 20.00 35.00
Notes: 1. Full-year net income per share forecast for fiscal Year 2001 is
Y83.53.
2. Fluctuations may occur in dividends per share, because the Company's
objective for cash dividends per share is set at 30% of consolidated
net income.
3. A 2-for-1 stock split, resolved by the Board of Directors on February
8, 2000, will be implemented on May 19, 2000, on the total number of
shares issued as of March 31, 2000. Thus, the number of shares
outstanding for the fiscal 2001 forecast is 113,737,566 shares.
3. These estimates are forward-looking statements based on a number of
assumptions and beliefs in light of the information currently
available to management and subject to significant risks and
uncertainties. Actual financial results may differ materially
depending on a number of factors including, without limitation:
general economic conditions in world markets; exchange rates between
the yen and other currencies in which Konami makes significant sales
or in which Konami's assets and liabilities are denominated, and
Konami's ability to continue to win acceptance of its products,
which are offered in highly competitive markets characterized by
continual new product introductions.
9. Non-consolidated Financial Statements
(1) Non-consolidated Balance Sheets
(Millions of yen)
March 31,2000 March 31,1999 Year-on-year
Share of Share of Change
total total
assets assets
ASSETS: (%) (%)
Current assets Y 94,522 78.2 Y 70,661 68.3 Y 23,861
Cash and cash
equivalents 48,578 19,530 29,048
Trade notes receivable 3 786 -783
Trade accounts
receivable 25,723 28,465 -2,741
Marketable securities 0 1,463 -1,462
Treasury Stock 1 6 -5
Finished products 2,187 2,048 138
Raw materials and
supplies 789 686 103
Work in process 1,808 3,265 -1,456
Advances 1,850 l,324 525
Prepaid expenses 1,007 575 432
Short-term loans 10,796 12,242 -1,446
Current portion of
long-term loans 106 120 -14
Deferred taxes 1,438 - 1,438
Other 416 420 -3
Allowance for doubtful
receivables -186 -274 -87
Fixed Assets 26,337 21.8 32,866 31.7 -6,529
Tangible fixed assets 10,216 8.5 19,142 18.5 -8,925
Buildings 5,427 9,481 -4,054
Structures 154 370 -215
Machinery 9 4 4
Transportation equipment 31 21 10
Tools and fixtures 1,105 1,227 -122
Land 3,488 7,959 -4,470
Construction in progress - 76 -76
Intangible fixed
assets 1,199 1.0 36 0.0 1,163
In-house software 1,170 - 1,170
Telephone line rights 20 20 0
Other 8 16 -7
Investments and other
assets 14,920 12.3 13,687 13.2 1,233
Investment securities 240 - 240
Shares of subsidiaries 11,846 9,963 1,883
Treasury stock 30 338 -307
Long-term loans 55 166 -111
Long-term prepaid
expenses 4 979 -974
Lease deposits 1,998 1,991 7
Deferred taxes 499 - 499
Other 245 249 -4
Allowance for doubtful
receivables -0 -1 1
Total assets Y 120,859 100.0 Y 103,527 100.0 Y 17,332
(Millions of yen)
March 31,2000 March 31,1999 Year-on-year
Share of Share of Change
total total
liabilities liabilities
and share- and share-
holders' holders'
equity equity
LIABILITIES: (%) (%)
Current liabilities Y 36,740 30.4 Y 33,326 32.2 Y 3,414
Trade notes payable 11,403 8,296 3,106
Trade accounts payable 6,881 6,350 531
Short-term debt 796 542 253
Current portion of
straight corporate bonds - 400 -400
Current portion of
convertible bonds - 5,367 -5,367
Current portion of long-
term debt 1,000 - 1,000
Accounts payable - other 3,722 3,789 -67
Income taxes payable 9,751 6,775 2,976
Accrued expenses 2,430 1,110 1,320
Allowance for bonuses 519 512 7
Plant and equipment notes
payable 88 50 38
Stock purchase warrants - 13 -13
Other 148 119 29
Long-term liabilities 12,964 10.7 18,494 17.9 -5,530
Straight corporate bonds 10,000 15,000 -5,000
Long-term debt - 1,000 -1,000
Liability for directors'
retirement benefits 1,486 1,020 465
Allowance for loss incurred
by a subsidiary 1,430 1,430 -
Long-term deposits 47 44 3
Total liabilities 49,704 41.1 51,821 50.1 -2,116
SHAREHOLDERS' EQUITY:
Common stock 15,793 13.1 13,014 12.6 2,778
Legal reserve 16,678 13.8 13,515 13.0 3,163
Additional paid-in capital 15,516 12,726 2,790
Legal reserve 1,162 788 373
Retained earnings 38,682 32.0 25,175 24.3 13,506
General reserve 22,803 18.9 19,878 19.2 2,925
Reserve for fixed asset
reduction 225 400 -174
Other general reserve 22,578 19,478 3,100
Unappropriated profits 15,878 13.1 5,297 5.1 10,581
(Net income) (16,236) (5,006) 11,230
Total shareholders' equity 71,154 58.9 51,705 49.9 19,449
Total liabilities and
shareholders' equity Y120,859 100.0 Y103,527 100.0 Y17,332
(2)Non-consolidated Statements of Income
(Millions of yen)
Year ended Year ended Year-on-year
31 March,2000 31 March,1999 Change
Share of Share of
Net sales Net sales
(%) (%)
1 Net sales Y 130,124 100.0 Y 100,779 100.0 Y 29,344
Cost of sales 87,719 67.4 71,234 70.7 16,485
II Gross profit 42,404 32.6 29,544 29.3 12,859
Selling, general and
administrative
expenses 16,790 12.9 15,329 15.2 1,461
III Operating income 25,613 19.7 14,215 14.1 11,398
IV Non-operating income 1,372 1.1 469 0.5 903
Interest income 175 95 79
Dividend income 87 163 -75
Gain on sale of
marketable securities 634 - 634
Gain on sale of Treasury
Stocks 213 - 213
Rents income 114 134 -19
Other 146 76 70
V Non-operating expenses 1,610 1.2 1,765 1.8 -154
Interest expense 100 89 11
Bond interest expense 384 327 56
Devaluation of marketable
securities - 218 -218
Bond issuance expense - 91 -91
Foreign exchange losses
- net 615 927 -311
Loss on retirement of
Corporate Bond 100 - 100
Other 408 110 298
Ordinary income 25,374 19.5 12,918 12.8 12,456
VI Extraordinary income 8,769 6.7 500 0.5 8,268
Gain on sale of fixed
assets 56 2 53
Gain on transfer of
intellectual property
rights 831 498 333
Gain on sale of part of
subsidiaries' shares 7,793 - 7,793
Gain on return of
allowance for doubtful
receivables 88 - 88
VII Extraordinary losses 4,861 3.7 1,410 1.4 3,451
Loss on sale or disposal
of fixed assets 4,759 633 4,125
Loss on disposal of
inventory - 776 -776
Loss on sale of part of
subsidiaries' shares 101 - 101
Income before income
taxes 29,282 22.5 12,009 11.9 17,273
Income, local and
enterprise taxes 13,609 10.4 7,003 6.9 6,606
Income tax adjustments -564 -0.4 - - -564
Net income 16,236 12.5 5,006 5.0 11,230
Unappropriated profit at
beginning of year 914 873 41
Differed tax adjustments 1,373 - 1,373
Reversal of reserve for
fixed asset reduction
following adoption of
deferred taxation 163 - 163
Interim cash dividends 2,553 529 2,024
Transfer to legal reserve
interim cash dividends 255 52 202
Unappropriated profit at
end of year Y 15,878 Y 5,297 Y 10,581
(3) Appropriation of Retained Earnings
(Millions of yen)
Year ended Year ended
March 31, 2000 March 31, 1999
Unappropriated profit at end of year Y 15,878 Y 5,297
Reversal of reserve for fixed asset
reduction 6 11
Total 15,885 5,308
To be appropriated as follows.
Transfer to legal reserve 312 117
Cash dividends 2,956 1,006
(52.0 yen per share) (28.0 yen per
share)
Directors bonuses 170 170
General reserve 10,446 3,100
Unappropriated profit for next year Y 2,000 Y 914
Note: 1. On December 10, 1998, interim cash dividends amounting to
Y529 million (Y15.0 per share) were paid.
Y52 million were transferred to legal reserve.
2. On December 11, 1999, interim cash dividends amounting to
Y2,553 million (Y45.0 per share) were paid.
Y255 million were transferred to legal reserve.
3. Reversal of reserve for fixed asset reduction is subject
to a special tax clause.
1. Methods and standards for evaluation of securities
Securities listed on stock exchanges ... Lower of cost or
market, based on moving average method. (The method of adding
back the credited reserve amount in full to the income in the
period.)
2. Evaluation of inventories
(1) Finished products, raw materials and work in process ... At
cost, based on the moving average method.
(2) Work in process of goods under production ... At cost,based
on the specific identification method.
3. Depreciation of fixed assets
(1) Tangible fixed assets ... Declining balance method, based on
Corporation Tax Law
(2) Intangible assets ... Straight-line method, based on
Corporation Tax Law
Straight-line method, based on durable periods (5
years) for In-house software
(3) Long-term prepaid expenses ... Straight-line method
4. Deferred assets
(1) Research and development expenses ... Charged to total income as
incurred
(2) Stock issue expenses ... Charged to total income as incurred
5. Reserves
(1) Reserve for bad debt ... As contingency for possible losses
due to default on payment of receivables, a certain amount
for estimated bad debt is set aside according to the
Corporation Tax Law (legal transfer ratio) or by independent judgement.
(2) Reserve for bonuses ... To provide for bonuses paid to
employees, a certain amount is set aside as part of estimated bonus
payments for the following term.
(3) Reserve for directors' retirement benefits ... The liability for
retirement benefits represents accrued benefits for directors and
corporate auditors of the Company and is provided for at such amounts as
would be required if all such individuals retired at each balance
sheet date.
(4) Allowance for loss incurred by a subsidiary ... The Company provides a
provision for loss incurred by a subsidiary at amounts determined after
consideration of the financial position of the subsidiary.
6. Lease transactions
Finance lease transactions other than those in which official
ownership of leased equipment is transferred to the lessee are
based on accounting methods for operating lease transactions.
7. Consumption tax
In principle, consumption tax withheld by the Company on the sale of goods
and services is excluded from the 'net sale' amount in the accompanying
statements. In addition, consumption taxes borne by the Company on expenses
and the purchase of goods and services are excluded from these figures.
Additional information
1. Effected April 1, 1999, the new accounting standards,
'Accounting for In-house software' was introduced. Under the new standards,
In-house software, which was previously included in 'Long-term prepaid
expenses', is reclassified in 'In-house software' under Intangible fixed
assets from the year under review. Such In-house software' is depreciated
under straight-line method over 5 years.
2. Effected by the change of Accounting Policies and Regulations, Konami has
adopted the Tax allocation from the year under review. In line with this
change, 'Deferred taxes assets' were Y1,937 million (Y1,438 million under
Current assets and Y499 million under Investments and other assets), and
'Net income' and 'Unappropriated profits' were Y564 million and Y2,101
million higher, respectively, than would have been the case under
accounting methods used previously.
Notes to balance sheets
(1) Accumulated depreciation of tangible assets
(Millions of yen)
March 31,2000 March 31,1999
5,760 7,442
(2) Major Assets and liabilities to subsidiaries
(Millions of yen)
March 31,2000 March 31,1999
Accounts receivable 9,444 10,232
Advances 1,119 1,040
Accounts payable 831 1,917
Accrued expenses 566 1,430
(Millions of yen)
March 31,2000 March 31,1999
7,519 9,212
(4) Major Assets and liabilities in foreign currencies
(Thousands of foreign currency; figures in parentheses
denote Millions of yen)
March 31,2000 March 31,1999
Accounts receivable Australia dollar 6,792 11,145
(441) (843)
Euro 4,289 17,827
(438) (2,304)
U.S. Dollar 2,915 21,008
(309) (2,532)
Short-term loans U.S. Dollar 7,500 4,500
(796) (542)
Current portion of
Long-term U.S. Dollar 1,000 1,000
Loans (106) (120)
Shares of subsidiaries U.S. Dollar 42,700 18,700
(4,640) (2,055)
Dutch Guilder 1,000 1,000
(1,250) (1,250)
Singapore Dollar 1,500 1,500
(121) (121)
Accounts payable U.S. Dollar 1,546 4,544
(171) (547)
U.K. Pound - 739
(-) (143)
Short-term debt U.S. Dollar 7,500 4,500
(796) (542)
Accounts payable-other U.S. Dollar 1,150 -
(167) (-)
Accrued expenses U.S. Dollar - 1,214
(-) (146)
March 31,2000 March 31, 1999
(5) Authorized shares 129,700,000 shares 129,700,000 shares
Numbers of shares
issued 56,868,783 shares 36,069,374 shares
Treasure stock
Listed under current
assets 162 shares 1,314 shares
Y 1 million Y 6 million
Listed under fixed assets 15,000 shares 110,000 shares
Y30 million Y338 million
Stocks issued during fiscal 2000 are classified as follows:
Number of
Item Type shares issued
Issued as result of stock split Common stock 18,034,687 shares
implemented on May 20,1999
Issued as result of Common stock 2,671,059 shares
conversion of convertible
bonds into common stock
Issued due to exercise Common stock 93,663 shares
of new-share warrants
Notes to statements of income
(1) Major transactions to subsidiaries
March 31, 2000 March 31, 1999
Net sales 31,636 22,624
Interest income 156 51
Dividend income 75 142
Accounting for leases
Finance leases transactions other than those in which official ownership of
leased equipment is transferred to the lessee.
(1) Acquisition cost equivalent, accumulated depreciation
equivalent, and year-end balance equivalent
(Millions of yen)
March 31,2000 March 31,1999
Acqui- Accumu- Balance Acqui Accumu- Balance
sition lated equiva- sition lated equiva-
Cost deprec- lent cost deprec- lent
Equiva- iation equiva- iation
lent equivalent lent equivalent
Tools and
fixtures 518 184 334 216 80 136
Total 518 184 334 216 80 136
(2) Obligation under finance lease at year-end, disbursement lease amount, and
depreciation equivalent
(Millions of yen)
March 31,2000 March 31,1999
Obligation under finance leases
at year-end
Due within 1 year 157 61
Due after 1 year 176 74
Total 334 136
Disbursement lease amount 118 91
Depreciation equivalent 118 91
Notes: 1. Since the total value of unexpired leases at year-end
occupies only a small share of the year-end value of
tangible fixed assets, acquisition cost and total value
of unexpired leases at year-end are calculated
inclusive of interest
2. Method of calculating depreciation expenses:
Calculated according to the straight-line method,
whereby the lease period is computed as useful
life and the remaining payment amount is computed as
zero.
Tax allocation
The significant components of the deferred tax assets and liabilities at March
31, 2000 were as follows:
(millions of yen)
Fiscal 2000
Deferred tax assets
Accrued enterprises taxes 901
Allowance for losses incurred by subsidiaries 625
Allowance for directors' retirement benefits 624
Accrued expenses 465
Allowance for bonuses 90
Other 35
Total 2,740
Loss - Valuation allowance (625)
Total deferred tax assets 2,115
Deferred tax liabilities
Reversal of reserve for fixed asset reduction
following adoption of deferred taxation -158
Other -20
Total deferred tax liabilities -178
Deferred tax assets - net 1,937
Market Value of Securities
(millions of yen)
March 31,2000 March 31,1999
Balance Market Unrealized Balance Market Unrealized
Sheet value gain/loss sheet value gain/loss
Amount amount
(l) Current assets
Stocks 1 1 0 1,469 1,625 155
Subtotal 1 1 0 1,469 1 625 155
(2) Fixed assets
Stocks 361 42,447 42,085 338 481 143
(331)(42,237) (41,905)
Subtotal 361 42,447 42,085 338 481 143
(331)(42,237) (41,905)
Total 363 42,448 42,085 1,807 2,107 299
(331)(42,237) (41,905)
Notes: 1. Market value
(1) Listed securities ... Principally closing prices on the Tokyo Stock
Exchange.
(2) Over-the-counter securities ... Trading prices Announced by the Japan
Securities Dealers Association
2. Figures for 'Stocks' listed under 'Current assets in the
above table include Treasury stock, Related - Unrealized
gain/loss
March 31,2000 March 31,1999
Listed under current assets Y 0 million Y -0 million
Listed under fixed assets Y 179 million Y 143 million
3. Figures in parentheses denote the amount of
subsidiaires.
4. Securities not listed above
March 31,2000 March 31,1999
Included in 'Fixed assets' Y 11,755 million Y 9,963 million
(Unlisted Stocks excluding (Y 11,515 million) (Y 9,963 million)
over-the-counter securities)
Contract value, Market value and Unrealized gain(loss) of Derivative Transaction
(millions of yen)
March 31,2000 March 31,1999
Contract Market Unreal- Contract Market Unreal-
Amount value ized Amount value ized
(term gain (term gain
over 1 (loss) over 1 (loss)
year) year)
Unlisted transactions
Interest Swaps Receive
floating/ 1,000 - - 1,000 - -
pay fixed (-) (1,000)
Total 1,000 - - 1,000 - -
(-) (1,000)
Note: Above swap transaction was arranged to hedge against interest
rate fluctuations on a (floating-rate) long-term loan.
The unrealized gain/loss related was immaterial, and had no
effect on the Company's Statements of Income.
10. Changes in Board of Directors
(As from June 23, 2000)
1. Changes in Representative Directors
No changes.
2. Changes in other Directors
(1) New Directors
Director Hidetoshi Inatomi
(Current title: Senior Corporate Officer)
Director Takuya Iwasaki
(Previous title: President, Nikko Securities
Co.Ltd)
(Current title: Advisor, Nikko Securities
Co.Ltd)
Director Satoshi Akagi
(Previous title: Deputy Super Intendent of
Education, Education Committee in Hyogo
Prefecture
(Current title: Director, Kozuki Foundation
for Information Technology Education)
Director Haruhiko Yoshida
(Previous title: General Manager of Account
Management Division 4,
DENTSU INC.)
(Current title: General Manager of Sales
Division, Delphys Inc.)
(2) Retiring Directors
Director Yukio Goto
Director Yoshinobu Tazaki
Director Kiyoshi Miyauchi
3. Changes in Corporate Auditors
(1) New Corporate Auditors
Standing Corporate Auditor* Tetsuro Yamamoto
(Current title: Director, The Bank of Tokyo-
Mitsubishi Ltd)
Corporate Auditor* Minoru Nagaoka
(Previous title: Administrative Vice Minister,
Ministry of Finance Chairman of
the Board, Tokyo Stock Exchange,
Ltd. Member of National Public
Safety Commission)
Corporate Auditor* Masataka Imaizumi
(Previous title: Super Intendent-General of the
Metropolitan Police)
(Current title: Chairman of the Board, Japan
Traffic Safety Association)
(2) Retiring Corporate Auditors
Corporate Auditor* Shosuke Kawasaki
Corporate Auditor* Shiegeo Ishii
Corporate Auditor* Mutsuko Yoshioka
Note: The Corporate Auditors with an asterisk(*) mark are external
auditors required by Japanese Commercial Code's Special Law
Article 18 Section 1.
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