Investors

Fields Corporation held a financial presentation on the first half of the year ending March 31, 2014 in the Top of the Square “UTAGE” (Chiyoda-ku, Tokyo) on November 7, 2013 at 11:30 am.
This page provides an overview of our explanation (summary) at the financial presentation.

Takashi Oya, President and COO

1. Summary of Results for the First Half of the Year Ending March 31, 2014 (Consolidated)

Overview

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In the first half, 4 brands and 5 titles were launched in the pachinko/pachislot business which is our core revenue source with solid sales.

Initiatives to develop and commercialize IP have been steadily promoted.

Consolidated P/L

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Both sales and income increased on our consolidated P/L for the first half of the fiscal year.

This was primarily because growth in the number of pachinko/pachislot machines sold drove earnings.

Next I will explain pachinko/pachislot machine sales in greater detail.

Number of pachinko/pachislot machines sold

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Approximately 110,000 pachinko machines from 3 titles, including “CR EVANGELION 8” which is our main title and “New-century Pachinko BERSERK,” were sold in the first half of the current fiscal year, compared to approximately 46,000 pachinko machines from 2 titles sold in the first half of the previous fiscal year.

Approximately 54,000 pachislot machines, including sales of 2 titles and the portion due to cut-off error (“Monster Hunter”), were posted in the first half of the previous fiscal year, but it increased to approximately 61,000 in the first half of the current fiscal year due to the launch of the 2 titles “Kaiji 3” and “Devil May Cry 4,” accompanied by solid sales.

The number of both pachinko/pachislot machines sold increased compared to the first half of the previous fiscal year.

Consolidated B/S and cash flows

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The table here shows the consolidated balance sheet.
There are no particularly noteworthy points.

Consolidated cash flows

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This table shows consolidated cash flows.
There are no particularly noteworthy points.

2. Key IP initiatives

IP creation, development and commercialization

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Below we explain the main initiatives to create, develop and commercialize IP.

“HERO’S Monthly” has published 20 stories as of this point, and we continue to create IP for this comic.
We issued the third volume in the “ULTRAMAN” comic book series in September, and have sold about 900,000 cumulative copies as of the present. With such strong sales, we expect that this comic will be a million-copy seller soon.

TV broadcasts of the 24 stories in the “Majestic Prince” series concluded in September, and received greater acclaim than expected.
We are also focusing on raising IP value by using these characters to develop goods, social games and pachinko/pachislot machines, etc.

(Reference: Q4 on general review on TV broadcast of “GINGA KIKOTAI: Majestic Prince” and Q7 on development of “GINGA KIKOTAI: Majestic Prince” in the “Key Q&A (Summary)”)

In the “Ultraman” series, TV broadcast of the new series “Ultraman Ginga” began in July, and the movie was released in September.
Both the movie and the TV program of “ULTRA MONSTERS RUSH: ULTRA FRONTIER” were released in September, and a partner company launched an arcade game that same month.
We released the pachislot machine “PACHISLOT ULTRAMAN WARS” in October.
We will continue to create new characters and develop products in a wide range of media formats.

We released a social game and pachinko machine in the “BERSERK” series in August, taking advantage of the screening of the animation of trilogy released by February 2013.
We continue to plan and develop “BERSERK” for further expansion.

IP creation, development and commercialization: “Ultraman”

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The Group develops and commercializes IP in the 6 fields of comics, animation, movies/TV/live show, interactive media, consumer products and pachinko/pachislot.

This diagram shows an example of this with the IP development for the “Ultraman” series.
This demonstrates that we are moving ahead with a multi-use expansion to maximize IP value.

We will continue our multi-media development for other IP as well to enhance IP value.

(Reference: Q8 on overseas expansion of “Ultraman” IP in the “Key Q&A (Summary)”)

3-1. <Merchandising Field> Pachinko/Pachislot Business

Status of sales in the pachinko machines market

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This graph shows the number of pachinko machines sold and the number of titles sold.
(* A year as represented in the graph is January through December.)

Since there are no titles likely to sell more than 200,000 machines, as in 2012, in the first half of the current fiscal year, the number of machines sold is currently trending below the previous year’s level. Momentum appears to be slightly weak.

Status of sales in the pachislot machines market

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This graph shows the number of pachislot machines sold and the number of titles sold.
(* A year as represented in the graph is January through December.)

The number of machines sold continues to increase over the first half of the previous fiscal year.
Since manufacturers continue to launch new titles in October to December 2013, we expect to see year-over-year growth in January to December 2013 period as well.

Supplement: Average utilization of pachinko/pachislot machines

Average utilization of pachinko machines is not high, but it is stable.
While there are signs of a lull in the steady recovery in the average utilization of pachislot machines, this current situation is due to the absence of titles which is able to drive the market, rather than to any specific factor.

Product Line-up from Q3

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The line-up of new pachinko and pachislot titles currently announced for release from Q3 is as follows.

October: Pachislot “PACHISLOT ULTRAMAN WARS”
November: Pachinko “CR TEKKEN”
January: Pachislot “MOBILE SUIT GUNDAM”

“MOBILE SUIT GUNDAM,” which we launched recently, has a wide-ranging fan base, and this pachislot machine features transmissive LCD screens as well as 11-inch LCD screens on the bottom of the chassis. This enables players to enjoy the Gundam world in the pachislot format by fully experiencing the intense battles and numerous iconic scenes.

Tetsuya Shigematsu, Senior Managing Director

3-2. <Merchandising Field> Interactive Media Business and Consumer Products Business

Key social games in the fiscal year ending March 31, 2014

We released the following 4 game titles in the first half of this fiscal year.

“BERSERK”
“HISSATSUSHIGOTONIN”
“KIDATSU! Demons Saga”
“KstarsWonderland”

The recently released “KstarsWonderland,” which targets women, is a game simulating a love story with a South Korean pop star. We plan to gradually expand this in the same format while adding major artists.

The existing 4 titles, particularly “AKB48,” have generated stable revenue since the previous fiscal year.

(Reference: Q9: Development of “KstarsWonderland” Expansion in the “Key Q&A (Summary)”)

Key developments in consumer products

The consumer products business runs the concept shops, and the license business for Tsuburaya Productions.

The scale of this business steadily expanded in the first half of the current fiscal year due to goods development following the TV broadcast of “Ultraman Ginga.”

Going forward, we plan to build on the scale of this business by increasing the number of items we roll out while increasing the IP out-licensing.

IP correlation diagram

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We will focus on maximizing the value of each IP and increase our IP holdings in line with our business model, which promotes cycling IP through the fields of comics, animation, movies/TV/live show, interactive media, consumer products and pachinko/pachislot.

Note: Data; Green: Fields’ IP; Blue: External IP