Investors

Question & Answer Session (Summary) at the financial results briefing (online) for the FY2023

[Content and digital business-related]

Q1: How fast will you switch from agency sales to in-house planned and developed merchandise sales in China?

A1: We are not switching from agency sales to in-house planned and developed merchandise sales.
While continuing to aggressively develop agency sales (royalty income businesses), the company will also distribute its own merchandise to them.
Currently, in addition to the domestic royalty income business, the company is developing in-house merchandise sales, and both are steadily growing.


Q2: Will there be significant capital outlays for the deployment of your own merchandise?

A2: Because of its thorough branding in FY2024, the company expects to spend a certain amount on global promotions in line with its merchandise deployment.
In the medium term, the company will make necessary investments in human resources and facilities, but does not plan to make any significant investments.


Q3: Please tell us if there is a revenue image for Japan, China, ASEAN-regions, and the United States in five years from now in the content and digital business segment.

A3: Growth is considered high in all regions.
Two markets-the United States and ASEAN-regions are considered to have particularly high potential.
There is already a merchandise category with a No.1 of shares in China. However, there are many merchandise categories that have not yet been developed, and there is ample room for this because the market is growing.


Q4: Regarding anime of Ultraman distributed worldwide in Netflix, the contribution to branding seems to be reasonable, but how do you see the impact?

A4: Ultraman: Rising, which is scheduled to be distributed worldwide through Netflix in June, is a great work to enhance Ultraman's branding globally, mainly in the United States.
The company will do our utmost to conduct business in line with the development of its products.
Since we will also sell new trading cards after the summer, we will develop a variety of drastic measures there to ensure that we do not lose ground.
In the future, the trading card will be made into a series every year, and drastic promotions will be carried out to produce a good track record.


[PS business-related]

Q5: To what extent is the impact of Sophia group of PS business’s 13.5 billion operating profit plan for FY2024 incorporated?

A5: ACE DENKEN Co., Ltd. (hereinafter, ACE DENKEN) is a company that has a major impact on the scope of consolidation.
The company’s operating profit target for this fiscal year is around ¥1.5 billion, but detailed figures are currently under scrutiny.


Q6: How much can we expect from the synergies between ACE DENKEN's island facilities sales and FIELDS Corp’s PS machine sales?

A6: The synergies between FIELDS Corp. and ACE DENKEN and how much value can be provided to pachinko hall are currently under scrutiny and consideration.
PS is a hands-on, hands-on leisure activity that can only be played in pachinko hall with limited location, time and age depending on the Act on Control and Improvement of Amusement Business.
In addition, the average game time is about 1-3 hours, and the game is not a major win-loss such as horse racing.
At present, the advent of smart PS machine has enabled free space designs for island facilities and PS.
Against this backdrop, we believe that the production of game spaces is crucial for PS leisure to become an even more attractive entertainment for users.
Accordingly, we are confident that by forming an alliance with ACE DENKEN, the leading provider of island facilities, we will be able to create value for a new PS.


Q7: Would you tell us about your policies for strengthening your brand?

A7: We will work with highly aspiring manufacturers to design pachinko hall spaces and to revitalize PS industry by delivering the best merchandise at the lowest possible cost.
In terms of its own brands, from the perspective of securing a lineup as a distribution company, it will also develop a certain level of finished goods in-house.


Q8: I would like to know how to get copyright of anime IP and what the status is.

A8: Japan is a unique country, with a high level of anime production that is unparalleled in the world. It is a country with a high level of motivation.
As long as we are doing business in such a country, we would like to acquire a great anime IP and other IP as well.
With respect to copyright acquisitions, we will identify and select appropriate values.
As part of its policy of acquiring anime IP, the company intends to acquire anime and other new IP in recent years that will lead to an expansion in the number of young players.


[Overall management]

Q9: Why did this stock repurchase take place under such special schemes?

A9: We recognize it as the best choice for us and do not consider it a special scheme.
Going forward, the Company intends to continue to emphasize governance and make sound management and shareholder contributions.
In the same way, we will consider appropriate dividends in view of the business situation.



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