Investors

From 11:30 A.M. on Tuesday, May 16, 2023, we held an online financial results briefing for the fiscal year ended March 2023.
This page provides information on our explanations (summary) at the briefing session.

Masayuki Nagatake, Director, TSUBURAYA FIELDS HOLDINGS INC./ President and COO, Tsuburaya Productions Co., Ltd.

New medium-term management plan for the Fiscal Year Ending March 31, 2023 (FY2023-FY2025)

Toward the realization of the corporate philosophy “The Greatest Leisure for All People” (up to March 2023)

⇒Page 2 and 3 of the briefing material

Major initiatives to shift from a pachinko/pachislot (hereinafter, “PS”) distribution company to a global content business company are shown in the chart below.
Our group has come this far with the common philosophy of “The Greatest Leisure for All People.” In the process of becoming a global content business company after going public in 2003, we acquired a gaming company and expanded overseas, developed IP in collaboration with publishers. In 2010, we made Tsuburaya Productions Co., Ltd. (hereinafter, “TPC”) and Digital Frontier Inc., our subsidiaries and more than a decade has passed. In particular, the major change was the resolution of the litigation issue in the U.S. in 2020, and this victory resulted in accelerated global expansion. In 2022, the movie SHIN ULTRAMAN was successful in Japan, and we continued accumulating knowledge and know-how and steadily expanding overseas. Through these milestones, we have been moving on to become a global content business company as TSUBURAYA FIELDS HOLDINGS.

Roadmap of the content and digital business/ Establishing the Tsuburaya brand globally for sustainable growth

⇒Page 4 and 5 of the briefing material

“Establishing the Tsuburaya brand in China and the ASEAN regions”
In order to establish the Tsuburaya brand in China and the ASEAN regions over the next three years, we will first build a robust cooperative structure with global business partners. By the end of the year, we want to establish overseas bases in China and Singapore, and next year, we want to also establish bases in Indonesia, Malaysia, and Thailand. In collaboration with our partners, first of all, in order to increase access to Ultraman, we will effectively expand into visual products and theme parks, and establish the Tsuburaya brand while developing merchandise in line with local cultures.

“Development of theme park”
In China, Ultraman area in Shanghai Haichang Ocean Park, which opened last year, is very strong. This was followed by the opening of a new Ultraman area within Dalian Discovery Kingdom theme park, China, in May 2023, which was larger than the one in Shanghai, and the number of visitors on the day of the opening also greatly exceeded the target. In June, we plan to roll out to a national theme park in Chengdu, China. By the end of the fiscal year, we plan to roll out to about two more locations, bringing total to around 10 locations by the final year of the medium-term management plan.
Ultraman has already gained overwhelming recognition and favorability, that enables us to develop in theme parks. In order to penetrate Ultraman brand, we will provide many touchpoints for Ultraman, not just in theme parks.
The development of visual products and theme parks, as well as merchandise on display at shops, is one of the touch points, and we will develop these touch points comprehensively.
Within Japan, we will open Ultraman the Ride in early summer in Seibuen Amusement Park. Expansion into theme parks also differentiates from other IP. In our survey, Ultraman is by far more favorable in China than other IP. We will aim to further penetrate the brand by expanding touch points at theme parks, etc.
After seeing our success in China, we have been approached by a large number of companies in various Asian countries who wish to collaborate with us.

“Development of culturally appropriate products”
In China, merchandise business centered on trading card games, has been performing well, however the number of new licensees is increasing in other categories as well with steady growth in block toys and other products. In addition, we will implement a variety of initiatives in the future, including digital services. In ASEAN region, although still small, looking at successful cases in China, the number of new partners is increasing. And we will develop merchandise tailored to the cultures of each country.

“Development in North America”
In terms of expansion into North America, we established a subsidiary in the U.S. in May. In 2024, Ultraman’s CG anime film produced by Netflix will be distributed worldwide. We intend to proceed with preparations through subsidiaries for North American expansion in line with distribution and contribute firmly to earnings.

Strengthening functions for global expansion

⇒Page 6 of the briefing material

In order to promote global business, various business functions are being established in each division. For example, support for the design and game function of card games developed abroad from within Japan. In addition, we are promoting alliances with prominent partners in each country, utilizing existing IP, creating new IP in line with the times, and optimizing digital marketing for each country and area’s market, while strengthening the structure for promoting these initiatives and developing global business.

Content and digital business segment operating profit (results/plan)

⇒Page 7 of the briefing material

The operating profit plan for content and digital business segment in the medium-term management plan is as shown in the chart below.

Ei Yoshida, Director, TSUBURAYA FIELDS HOLDINGS INC./ President and COO, FIELDS CORPORATION

Players and position of FIELDS in PS sector

⇒Page 9 of the briefing material

The present positions in pachinko and pachislot (hereinafter, “PS”) sector are shown in figure.
There are approximately 37 pachinko and 65 pachislot manufacturers (according to our survey). In addition, there are about 7,000 pachinko halls nationwide and about 2,000 hall-management enterprises (corporations), averaging 3.7 halls per corporation (source: National Police Agency, Yano Research Institute). We are the only distributor that operates on a nationwide scale, and we are the only company in the industry.

Pursue the ideal form as a distributor for the healthy development of the PS sector as a leisure activity

⇒Page 10 and 11 of the briefing material

As the only distributor, we provide our unique value and services to manufactures and pachinko halls based on the market-oriented approach. By selecting and acquiring IP that will be accepted by users and providing them to manufacturers based on big data obtained through the use of our nationwide sales system, manufacturers have developed an excellent merchandise that will lead to hits. In addition, given that there are many halls rooted in the region, we are able to analyze the needs of fans nationwide and provide customized information for each hall. Going forward, we will continue to pursue the ideal situation as a distributor and pursue initiatives for the sound development of PS industry as a leisure.

Mission as a distributor

⇒Page 12 of the briefing material

As a distributor, our mission is to provide everyone with the greatest leisure, and we will continue to develop a market-oriented approach with allied manufacturers to provide an excellent lineup of merchandise and provide a stable supply of merchandise to meet the needs of pachinko halls. To achieve this, we will aim to establish a system that enables us to sell one pachinko and pachislot title per month, for a total of 24 titles per year.

PS business segment operating profit (results/plan)

⇒Page 13 of the briefing material

The operating profit plan for PS business segment in the medium-term management plan is as shown in the chart below.

Consolidated operating profit plan (results/plan)

⇒Page 14 of the briefing material

The consolidated operating profit plan in the medium-term management plan is as shown in the chart below.