Investors

FIELDS CORPORATION held a financial presentation for the first quarter of the year ending March 31, 2016 in OTEMACHI 1st SQUARE CONFERENCE (Chiyoda-ku, Tokyo) on August 3, 2015 (Monday) at 11:30 am.
This page provides an overview of our explanation (summary) at the financial presentation.

Takashi Oya, President & COO

1. Overview

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In the first quarter of the fiscal year ending in March 2016, net sales totaled 17.1 billion yen and we posted an ordinary loss of 0.8 billion yen.
Earnings are generally in line with full-year forecasts.
We sold 15,000 pachinko machines and 28,000 pachislot machines in the first quarter. All together, we announced several pachinko/pachislot machines that will be launched in the second quarter, and are currently moving ahead with marketing activities. In addition, we made K.K. Aristocrat Technologies and K.K. Spiky consolidated subsidiaries.
We have acquired and created a total of 157 IP titles, and plan media development for 103 IP in the fiscal year ending March 31, 2016.

2. Summary of Results for the First Quarter of the Year Ending March 31, 2016 (Consolidated)

Consolidated P/L

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The table shows the consolidated P/L statement for the first quarter of the year ending March 31, 2016.
We posted 17.1 billion yen in net sales, 1.0 billion yen operating loss, 0.8 billion yen ordinary loss and 0.8 billion net loss attributable to owners of the parent company. As such, earnings are generally in line with full-year forecasts.

Main pachinko/pachislot machines lineup

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The table shows the pachinko/pachislot machine lineup already announced for the year ending March 31, 2016.
In the first quarter, we posted 23,000 pachislot machines in the “EVANGELION—Spear of Hope” and several thousand pachinko machines in the “CR EVANGELION 9 Type zero ver.”
We have already announced 5 titles for the second quarter, and sales of “Resident Evil 6” and “CR Million GOD RISING,” delivered in July, have generally been in line with forecasts.
“CR EVANGELION X,” which we are currently marketing, will be delivered in September but will be posted the following month (third quarter) since they are agency sales.

Consolidated B/S

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The table shows the consolidated B/S.
There are no points particularly worthy of note.

Consolidated cash flow

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The table shows the consolidated cash flow.
There are no points particularly worthy of note.

New consolidated subsidiaries

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The handout shows an overview of our new consolidated subsidiaries.
We will begin developing products utilizing hard and soft assets and others owned by K.K. Aristocrat Technologies and K.K. Spiky in collaboration with affiliated manufacturers and Group companies.

(Reference) Trends in Pachinko/Pachislot Market

Status of pachislot machine sales

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The status of pachislot machines sales is shown in the graph.
The number of titles sold is decreasing compared to the previous year as a result of changes in model certification test methods, but the number of machines sold fell only slightly.

Status of pachislot machine installation

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The status of pachislot machines installed is shown in the graph.
The installation of new regulation machines, which reduce high-stakes gambling elements, has begun. Although there were claims that the market would not support machines conforming to the new regulations, users have been pleased and we have observed utilization exceeding that of machines conforming to the old regulations.

Status of pachinko machine sales

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The status of pachinko machine sales is shown in the graph.
Compared to the previous year, the number of machines sold was flat, but the number of titles sold declined. We attribute this to the fact that some mid-sized manufacturers were unable to release products, but there has not been any essential significant change.
Major manufacturers in particular are expected to sell large numbers of MAX-type machines ahead of the deadline at the end of October for the installation of new machines under the old regulations.

Status of pachinko machine installation

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The status of pachinko machines installed is shown in the graph.
There are no points particularly worthy of note.

Status of implementation of SCA’s model certification test

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The status of conformance to the Security Communications Association’s certification tests is shown in the graph. Compared to the previous year, the number of applications for pachislot machines has declined due to a sharper focus, and the number of applications for pachinko machines has increased on a last-minute rush ahead of the deadline for the installation of new machines conforming to the old regulations.

Tetsuya Shigematsu, Executive Vice President

3. IP Initiatives

Status of IP development

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The total number of IP and status of IP development are shown in the graphs.
The absolute number of IP will increase going forward. Moreover, we are aiming to increase revenue through cross-media development of IP.

Status of IP creation

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The handout shows the status of IP creation.
We will develop new IP, primarily based on “HERO’S” Monthly. In particular, we will move forward with various measures to develop other companies’ IP with strong name recognition in “HERO’S” Monthly ahead of the fourth anniversary of its founding. We are carefully selecting the titles to be run in the magazine to better focus our resources.
In cross-media development, we published the sixth volume of “ULTRAMAN,” bringing the cumulative total to 1.7 million copies. At present, we are expanding merchandising ahead of filming both in Japan and overseas. In addition, we are developing 7 IP as films and 9 titles as games and pachinko/pachislot machines.

Current status of IP film development

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The handout shows the status of IP film development.
Broadcasts of the “Ultraman X” TV series began in July, and sales of goods have been stronger than for its predecessor, “Ultraman Ginga S.”
We opened a restaurant based on the concept of “KAIJU RESTAURANT,” and collaborated with outside creators and others to carry out cross-media development, including films and goods.

Status of IP merchandising (social game)

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The handout shows the status of social games.
We are working to further improve the game functions of existing titles while focusing our resources on select titles. In particular, we are taking various measures to reinforce monetization of “ANIMAL × MONSTER” with large-scale updates and various collaborations.
At the same time, we plan to launch 4 to 5 native applications. Advance registrations for “the TOWER of PRINCESS” exceeded 100,000 in a single week. The way in which this leads to monetization going forward will be a key point. The release of a browser with difficult market conditions was canceled.

Status of IP merchandising (commercialization of goods, etc.)

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The handout shows the status of commercialization of goods, etc.
At present, 27 companies have licensed “A MAN of ULTRA,” and we plan further collaborations with diverse manufacturers. Moreover, in the fall we plan to develop a concept shop in Omotesando Hills.
“NINJA SLAYER FROM ANIMATION,” content primarily distributed on the Internet, has a total audience of more than 8 million for its 15 episodes, and 28 companies have licensed the content. We hope to expand the scope of cross-media development and apply this as leverage.

Status of IP merchandising (live entertainment)

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The handout shows the status of live entertainment.
“ULTRA HEROES THE LIVE ACROBATTLE CHRONICLE” has been presented in 3 cities in Japan. It has also been shown in Hong Kong, and presentations are planned for Macao and China. This show is not intended primarily as entertainment, but rather as a hook (opportunity) for merchandising development and use in advertising.