Notice: Business Reorganization.

KONAMI GROUP CORPORATION (the "Company") hereby announces that it resolved at the Board of Directors meeting held today to transfer a portion of the business of its wholly owned subsidiary, Konami Amusement Co., Ltd.  ("Konami Amusement"), to Konami Arcade Games Co., Ltd.  ("Konami Arcade Games"), a new company to be established on June 2, 2025, through an absorption-type company split, with the effective date set as October 1, 2025, as outlined below.

1.   Purpose of the absorption-type company split

In recent years, the market environment surrounding arcade games and pachinko and pachislot machines continues to change significantly. To respond swiftly and effectively to these changes, the Company Group will establish highly independent entities focused respectively on the arcade games business and the pachinko and pachislot machines business, each with a dedicated management structure.

This reorganization is intended to accelerate decision-making and enable flexible, responsive management aligned with the specific characteristics of each market, thereby driving further growth and expansion of both businesses.

Manufacturing and logistics functions will remain centralized within Konami Amusement to ensure continued operational efficiency across the Group.

2.   Summary of the absorption-type company split

(1)  Schedule of the absorption-type company split

Resolution of the Board of Directors: May 15, 2025 (today)

Scheduled execution date of the company split agreement: June 16, 2025

Scheduled effective date of the company split: October 1, 2025

(2)  Format of the absorption-type company split

This will be an absorption-type company split, in which Konami Amusement is the splitting company and Konami Arcade Games is the succeeding company in the company split.

(3)  Details of allotments related to the absorption-type company split

As this is an internal reorganization between wholly owned subsidiaries of the Company, no shares or other consideration will be delivered.

(4)  Rights and obligations to be assumed by the succeeding company

Pursuant to the absorption-type company split agreement, Konami Arcade Games will assume assets, contracts, liabilities, and other obligations related to the arcade game business of Konami Amusement.

(5)  Prospects for fulfilling obligations

Following the absorption-type company split, both the splitting company and the succeeding company are expected to maintain a sound financial position, and there are no anticipated issues with respect to the fulfillment of their respective obligations.

3.   Overview of the companies involved in the company split

4.   Outlook

The impact of this absorption-type company split on the Company's consolidated financial results is expected to be minimal.

End

Cautionary statement with respect to forward-looking statements and other matters:

Statements made in this document with respect to our current plans, estimates, strategies and beliefs, including the above forecasts, are forward-looking statements about our future performance. These statements are based on management's assumptions and beliefs in light of information currently available to it and, therefore, you should not place undue reliance on them. A number of important factors could cause 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 & 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.