Investors

FIELDS CORPORATION held a financial briefing for the FY3/2019 at Shibuya Garden Tower (Shibuya-ku, Tokyo) on May 16, 2019 (Thursday) at 12:00.
This page provides an overview of our explanation at the financial presentation.

Kenichi Ozawa, Director

Overview of the financial results (FY3/2019)

⇒Page 3 to 5 of Financial Briefing Material

In this fiscal year, we recorded the operating loss of ¥1.3 billion. This has been impacted by the Group’s decision to record licensing sales revenues of about ¥1.6 billion, which were projected for the fiscal year under review, after April 2019 when fees corresponding to these sales are collected. The revenues will be recorded in installment after FY3/2020, and we will hereafter report them at the time of collection of each payment. We plan to discuss with our auditing firm how to recognize revenue from this point on and after April 1, 2021 and we will review the procedure for revenue recognition again.
The main factor of change in B/S is consolidation of NANASHOW Corporation in Q3.
Regarding C/F, cash and cash equivalents increased by about ¥4.4 billion. Cash and cash equivalents at end of period was about ¥28.8 billion. We intend to continue our efforts to secure ample funds.

Ei Yoshida, Senior Managing Director

Business activities in the FY3/2019

[Pachinko/Pachislot business]

⇒Page 7 to 8 of Financial Briefing Material

We have analyzed all of the new-regulation pachinko/pachislot (hereinafter, “PS”) machines installed in the market from around autumn 2018. We are now brushing up together with our affiliated manufacturers the products we developed. The machines are supposed to pass the model certification tests after H2 in the next fiscal year and be sold.
Regarding the new business, in the sound distribution business we have alliances with nine manufacturers and contract with 5,500 halls regarding installation and parts checking operations. We intend to increase the number of manufacturers and contracts.
Regarding the used machines distribution platform, we planned to start it in this fiscal year but we had to postpone due to security measures etc. We are preparing to provide high-level services in the future.
In the mobile targeting ad business, we have been introducing the system at approximately 900 pachinko halls, which extremely satisfy them. We would like to proceed with this business with a view to a variety of other industries.
Finally in the media solution business, we are to start the distribution of “Pachinko Pachislot Information Station” from July. We are now in the process of developing a scheme involving the entire industry.

Hidetoshi Yamamoto, Chairman, President and Group CEO

Business activities in the FY3/2019

[Tsuburaya Productions]

⇒Page 9 to 12 of Financial Briefing Material

Tsuburaya Productions Co., Ltd. (hereinafter, “Tsuburaya Productions”) has made its profit by selling the character goods and license business. In the future, it will expand its business by increasing the profitability of movies, monetizing through tie-ups with other companies, and strategic expansion to North America.
Tsuburaya Productions has distributed an anime ULTRAMAN worldwide through NETFLIX, and received a strong response.
Also in Shanghai, an event held in a shopping mall for a month got over 700 thousand of visitors. We will cooperate with partner companies to expand this kind of event to other areas of China, and to provide various works like movies at proper time.
As the reconstruction of management system, Mr. Tsukagoshi has served as CEO, who had been appointed CEO in the video field of Disney’s Japan Group. For the COO position we invited Mr. Nagatake, who had been in charge of strategy and overseas business in the toy industry after the financial and apparel industries.
We plan to make a large profit with them based on the business model above. Please look forward to the next works.

Initiatives for the FY3/2020

PS Product lineup, profit plan for FY3/2020

⇒Page 14 to 15 of Financial Briefing Material

In the latest PS market, it is getting harder to take the model certification tests, for the number of manufacture applications for model certification tests increased rapidly with transition to the new regulation. The passing test ratio has also been sluggish. Those factors affect the sales plan of each manufacturer. We have formed a business plan that strictly takes the future situation of model certification tests into account.
We plan to sell seven titles of PS machines in H1 and 11 titles in H2, and we expect the operating profit for FY3/2020 to be ¥1.5 billion because these is a possibility that we do not sell some of the new machines.
We will announce the three-year profit plan of the medium-term management plan.