1st Quarter of Year Ending March 2008 Results

Aug 3, 2007
Fields Corporation

FIELDS CORPORATIONTHE GREATEST LEISURE FOR ALL PEOPLE

2767:JASDAQ
http://www.fields.biz
Copyright 2007 FIELDS CORPORATION All rights reserved. 1

Index1.

Highlights for the 1st Quarter of Year Ending March 2008

P.

3

2.

PS Field

P.

7

3.

Game Field

P. 11

4.

Appendix I

P. 13

5.

Appendix II

P. 22

Copyright 2007 FIELDS CORPORATION All rights reserved.

2

Highlights for the 1st Quarter of Year Ending March 2008

Copyright 2007 FIELDS CORPORATION All rights reserved.

3

1st Quarter of Year Ending March 2008
Consolidated Operating Results(Unit: ¥million)

Year Ended March 2007
1st Quarter 1st Half
Results
Results

Year Ending March 2008

Full Year 1st Quarter
Results YOY (%)
Results

1st HalfPlan

YOY (%)

Full Year
YOY (%)
Plan

25,362

47,12285,321

24,234

95.6%

53,000112.5%

98,000114.9%

Gross profit

7,570

14,05029,248

6,763

89.3%

14,400102.5%

32,100109.8%

SG&A expenses

4,393

9,329

20,3034,440

101.1%

10,100108.3%

22,500110.8%

Operating income

3,176

4,720

8,944

2,322

73.1%

4,300

91.1%

9,600

107.3%

12.5%

10.0%

10.5%

9.6%

3,413

4,980

9,202

2,627

13.5%

10.6%

10.8%

10.8%

1,658

2,225

3,710

1,156

6.5%

4.7%

4.3%

4.8%

Net sales

Operating income margin
Ordinary income
Ordinary income margin
Net income
Net income margin

Source: Fields

8.1%

77.0%

4,200

9.8%

84.3%

7.9%

69.7%

1,000
1.9%

9,300

101.1%

9.5%

44.9%

3,800

102.4%

3.9%

Copyright 2007 FIELDS CORPORATION All rights reserved.

4

1st Quarter of Year Ending March 2008
Non-Consolidated Operating Results(Unit: ¥million)

Year Ended March 2007
1st Quarter 1st Half
Results
Results

Year Ending March 2008

Full Year 1st Quarter
Results YOY (%)
Results

1st HalfPlan

YOY (%)

Full Year
YOY (%)
Plan

22,75641,141

71,31421,09492.7%

46,000111.8%

75,000105.2%

Gross profit

6,720

12,351

25,150

5,757

85.7%

12,30099.6%

24,160

96.1%

SG&A expenses

3,441

7,373

16,150

3,226

93.8%

7,600

103.1%

15,76097.6%

Operating income

3,279

4,977

8,999

2,531

77.2%

4,700

94.4%

8,400

93.3%

14.4%

12.1%

12.6%

12.0%

3,535

5,284

9,393

2,614

15.5%

12.8%

13.2%

12.4%

1,948

2,810

4,773

1,397

8.5%

6.8%

6.7%

6.6%

Net sales

Operating income margin
Ordinary income
Ordinary income margin
Net income
Net income margin

Source: Fields

10.2%

73.9%

4,800

11.2%

90.8%

10.4%

71.7%

800
1.7%

8,500

90.5%

11.3%

28.5%

2,800

58.7%

3.7%

Copyright 2007 FIELDS CORPORATION All rights reserved.

5

1st Quarter of Year Ending March 2008
Consolidated Segment Information(Unit: ¥million)

Year Ended March 2007
1st Quarter
Results

1st Half Results

Year Ending March 2008
Full Year
Results

1st Quarter
Results

Composition(%)

YOY (%)Net sales

41,14471,30621,093

86.8%

‐

3,879

9,946

2,223

9.1%

‐

2,398

5,521

989

4.1%

‐

47,422

86,77424,306

100%

(300)

(1,453)(72)

47,12285,321

24,234PS field

5,026

9,073

2,540

109.3%‐

Game field

(81)

220

12

0.5%

‐

Other field

(286)

(513)

(228)

-9.8%

‐

4,658

8,780

2,324

100%

62

164

(1)

4,720

8,944

2,322

PS fieldGame field
Other field
Subtotal
Elimination or incorporation
Total

Quarterly segment
information is to bedisclosed from the year
ending March 31, 2008,
and therefore is notindicated for prior fiscal
years.

Operating income

Subtotal
Elimination or incorporation
Total
Source: Fields

Copyright 2007 FIELDS CORPORATION All rights reserved.

6

PS Field

Copyright 2007 FIELDS CORPORATION All rights reserved.

7

PS Field

Number of Pachinko Machines Sold According to Manufacturer(Unit: Machines)

Year Ended March 2007
1st Quarter

1st Half

Year Ending March 2008
Full Year

1st Quarter

YOY (%)

Sammy

4,610

4,664

36,893

0

-

Bisty

56,975111,253

292,905

22,128

38.8%

-

-

1,540

1,255

-

Other

4,052

7,354

14,485

4,391

108.3%

Total

65,637

123,271

345,823

27,774

42.3%

Olympia

Source: Fields

Copyright 2007 FIELDS CORPORATION All rights reserved.

8

PS Field

Number of Pachislot Machines Sold According to Manufacturer(Unit: Machines)

Year Ended March 2007
1st Quarter

1st Half

Year Ending March 2008
Full Year

1st Quarter

YOY (%)

Rodeo

19,76024,48542,81848,387244.8%

Bisty

ブランド

1,688

41,49573,714

7,805

462.3%

Olympia

34,99136,854

43,389

53

0.1%

Other

2,198

3,702

5,503

1,130

51.4%

Total

58,637

106,536

165,424

57,37597.8%

Source: Fields

Copyright 2007 FIELDS CORPORATION All rights reserved.

9PS Field

Main Titles of Pachinko/Pachislot Machines Soldfor the 1st Quarter of Year Ending March 2008
(Unit: Machines)

ReleaseManufacturer

Title

Cumulative
Machines Sold1,2

Machines Sold1

Pachinko
1Q

Bisty

CR LOONEY TUNES BIA

Others--23,295

Total number of Pachinko machines sold during the 1st Quarter

27,774

Pachislot
1Q

Bisty

Morning Musume

-

-

Rodeo

Devil May Cry 3

41,12548,742Others

10,844

Total number of Pachislot machines sold during the 1st Quarter

57,375

Total number of Pachinko/Pachislot machines sold during the 1st Quarter

85,149

1. Regarding the titles of pachinko machines for which the number of machines sold was less than 10,000, the number of machines sold was not released.
2. The figures for Cumulative machines Sold were as of July 31, 2007.
Source: Fields

Copyright 2007 FIELDS CORPORATION All rights reserved. 10

Game Field

Copyright 2007 FIELDS CORPORATION All rights reserved. 11

Game Field

Game Software Sales Performance by D3 Inc.
for the 1st Quarter of Year Ending March 31, 2008
(Unit: Thousand)Year Ended
March 2007
Full Year
Results

1st Quarter of Year Ending March 2008
Low-price Software High-end software(SIMPLE series)

Year Ending March 2008

Total

Full Year Plan

Progress(%)

Japan

1,469

124

192

317

1,734

18.3%

North America

2,002

－

393

393

2,569

15.3%

Europe

568

16

44

61

708

8.7%

Total

4,040

141

630

771

5,011

15.4%
(Unit: Thousand)Best-Selling Titles

Platform

Sales area

CR Neon Genesis Evangelion—Kiseki no Kachiwa

PS2

Japan

165

Naruto：Ninja Council 3

DS

North America

156

Naruto：Clash of Ninja 2

GC

North America

73

Source: Fields

Sales Units

Copyright 2007 FIELDS CORPORATION All rights reserved. 12

Appendix I

Copyright 2007 FIELDS CORPORATION All rights reserved. 13

Corporate Profile
Principal Shareholders

Corporate Data
(As of June 30, 2007)(As of March 31, 2007)

Shareholders

Number ofshares held

Percentage ofoutstanding
shares held

Company name

FIELDS CORPORATION
http://www.fields.biz/

Hidetoshi Yamamoto

112,200

32.33%

Establishment

June 1988 (Started business as TOYO Shoji Corporation in 1983)

Takashi Yamamoto

40,00011.53%

Address of the
Head office

E Space Tower , 3-6, Maruyama-cho, Shibuya-ku, Tokyo
150-0044, Japan

Sammy Corporation

27,5007.93%

Mint Co.

16,000

4.61%

Common stock¥7,948.03 million

5,960

1.72%

Stock information

Total number of shares issued and outstanding: 347,000 shares

RBC Dexia Investor Services
Trust London Lending account client accountJapan Securities Finance

5,316

1.53%

Japan Trustee Services Bank, Ltd. (Trust account)

4,550

1.31%

State Street Bank and Trust Company 505019

4,018

1.16%

Morgan Stanley & Co. Inc.

3,936

1.13%

IXIS CIB

3,800

1.10%

Securities exchange JASDAQ (Ticker Code: 2767)
Number of
employees

737 (Non-consolidated); 1,022 (Consolidated) (As of March 31, 2007)

Main businessactivities

Planning, development and sales of pachinko/pachislot machines

Branch offices

Sapporo, Aomori, Sendai, Koriyama, Niigata, Takasaki,
Utsunomiya, Tsukuba, Saitama, Chiba, Tokyo, Western Tokyo,
Yokohama, Shizuoka, Nagoya, Nagano, Aichi, Mie, Kanazawa,
Kyoto, Osaka, Kobe, Hiroshima, Okayama, Yamaguchi,
Matsuyama, Fukuoka, Saga, Kagoshima, Kumamoto (30 bases
nationwide)

Consolidated
subsidiaries
Equity method
companies
Source: Fields

・Japan Sports Marketing Inc.
・Fields Jr. Corporation
・Fields Pictures Corporation
・FutureScope Corporation.
・D3 Inc. and ten other companies
・Rodeo Co., Ltd. ・Kadokawa Haruki Corporation

Number of shareholders by
category

Financial institutions 3.84%
Securities companies 1.77%
Other companies

14.40%

Foreign companies
and others

11.41%

Individuals and others
68.58%

Copyright 2007 FIELDS CORPORATION All rights reserved. 14

Our Tracks
As a trailblazing creator pursuing more entertaining pachinko/pachislot machines■January 2004 Invested in D3 Publisher Inc.
■March 2005 Consolidated D3 Publisher Inc. as a subsidiary of theCompany.
■Established Professional Management Co.,■March 2005 Invested in Kadokawa Haruki Corporation.
Ltd., and Total Workout Corporation.

Aiming to distribute pachinko/pachislot
machines more widely■Renamed Fields Corporation■Nationwide expansion: to Tohoku,
Chugoku, Shikoku, Kansai■Established branch offices in Tokyo.

■July 2005 Invested in and consolidated J. Sakazaki Marketing INC. as a
subsidiary of the Company.

■Established White Trash
Charms Japan Co., Ltd.

■Established in Nagoya to sell pachinko/pachislot machines.
■Obtained ISO9002: 1994.

■October 2005 Integrated three subsidiaries andestablished Japan Sports Marketing Inc.
■April 2006 Consolidated thinkArts Co., Ltd.,
as a subsidiary of the Company.

■Consolidated Fields Jr.
Corporation as a subsidiary.

■April 2006 Consolidated Fields Pictures
Corporation as a subsidiary of the Company.

■Obtained ISO9001: 2000.

■October 2006 Consolidated FutureScope
Corporation. as a subsidiary of the Company.

■March 2003 Listed on JASDAQ.
88

92

95

00
01
99
■Established a sales tie-up with a pachinko/
pachislot machine manufacturer Sammy Corporation.

02

03

04

Evolution of LCD and chiptechnologies■Started to sell Rodeo’s pachinko/pachislot
machines as a sales channel of Rodeo Co., Ltd.
■Launched “Pachinko Information Station,” a CS service
for the industry in collaboration with Mitsui & Co., Ltd.
■Merged Leisure Nippon Newspaper Company and launched a new industrial
vision.
■Launched the “Hall TV” system to support pachinko hall management.

05■February 2007 Established
Ildel Corporation
07

06■May 2006 Launched a full-scale collaboration
with Olympia Co., Ltd., for a Gold Olympia brand.
■June 2005 Established G&E Corporation via joint investments ofSammy Corporation, Sankyo Corporation and Fields Corporation.

■Invested in Rodeo Co., Ltd.
■July 2003 Released Sammy pachinko machines exclusively for Fields.
■November 2003 Established business tie-up with the Sankyo Group and Bisty Co., Ltd.
■November 2004 Released the first machine made via afull-scale collaboration with Bisty Co., Ltd.

An increase in needs for enjoyment andrecreation—diversifying tastes and preferences
Based on our firm recognition of potential needs for pachislot machines
For higher recognition of and to revitalize the industry
Independent distributor of all models by all manufacturers
Source: Fields

Toward a fabless manufacturer

Toward a content provider

NEXT

Copyright 2007 FIELDS CORPORATION All rights reserved. 15

The Group Structure(As of June 30, 2007)

Fields Corporation [2767]

PS FieldGame Field

Fields Jr. Corporation(100%)

Rodeo Co., Ltd.

(35%)

Business
partner

Other Field

D3 Inc. [4311](57.2%)

Japan Sports Marketing Inc.

(61.8%)

D3 Publisher Inc.

White Trash Charms Japan
Co., Ltd.

(100%)

Entertainment Software
Publishing Inc.

Fields Pictures Corporation(100%)Sammy Corporation

D3Publisher of America, Inc.
(U.S.A.)

FutureScope Corporation.

(83.3%)Sankyo Corporation

Vicious Cycle Software, Inc.
(U.S.A.)

G&E Corporation(33.3%)

Olympia Co., Ltd.

D3Publisher of Europe Ltd.
(U.K.)

Kadokawa Haruki
Corporation(30%)

D3DB S. r. l.
(Italy)thinkArts Co., Ltd.

(100%)

Note: The above Group structure was prepared based on the consolidated subsidiaries and affiliates.
Source: Fields

Copyright 2007 FIELDS CORPORATION All rights reserved. 16

Fields Group Companies■Game Field■ PS Field

Fields Jr. Corporation

D3 Inc.

■Registers and manages approximately about 1,200 college

students across Japan who are involved in the delivery andinstallation of pachinko/pachislot machines. Also conducts
nationwide marketing research for about 15,000 pachinkohalls and collects information on the types of machines
installed in halls and the usage. Such information is used in
the planning and development of new machines.

■In March 2005, the Company consolidated a game publisher,

D3 Publisher Inc., as a subsidiary, for content development
via various media with a global outlook.
A close business alliance with D3 Inc. reinforces the Company’s content provider
business such as revitalizing activities to obtain copyrights in Europe and the United States,
as well as enables speedy product planning, development and sales of game software.
Note: In April 2006, D3 Group shifted to a holding company system composed of D3,
Inc., a holding company, and the following operating companies: D3 Publisher Inc.
in Japan, D3Publisher of America Inc. and D3Publisher of Europe LTD.
Securities code 4311: JASDAQ■The D3 Group

http://www.d3i.co.jp/

D3 Inc.

Rodeo Co., Ltd.

D3 Publisher Inc.

■The Company invests in and is a comprehensive sales

agency of Rodeo Co., Ltd., which is a group company of a
top pachislot machine manufacturer, Sammy Corporation.
We are promoting collaborations by combining the SammyGroup’s outstanding development capability with Fields’
strong capability to produce high-profile products based on
sublicense copy rights and planning/development abilities.
http://www.rodeo.ne.jp/

Entertainment Software Publisher Inc.
D3Publisher of America, Inc. (U.S.A.)
Vicious Cycle Software, Inc. (U.S.A.)
D3Publisher of Europe Ltd. (U.K.)
D3DB S. r. l. (Italy)

thinkArts Co., Ltd.
■The Company newly consolidated as a subsidiary thinkArts

Co., Ltd., which engages in the development of image
software and game software for pachinko/pachislot
machines. In alliance with the Company’s Group companies,
the Company will steadily establish a system to produce
high-value-added digital content.
http://www.thinkarts.jp/
Source: Fields

Copyright 2007 FIELDS CORPORATION All rights reserved. 17

Fields Group Companies (Continued)■Other Field

FutureScope Corporation.

Japan Sports Marketing Inc.
■Established in October 2005 through the merger of J.

Sakazaki Marketing Inc., which became a consolidated
subsidiary in July 2005; Professional Management Co.,
Ltd.; and Total Workout Corporation. Involved in a wide
range of sports entertainment businesses such as planningand organizing of sports events, broadcasting rights
distribution, sports marketing and gym operation.

■Pursuing the further possibilities of mobile entertainment,

this company was established in October 2006 to propose amore convenient and more enjoyable lifestyle to the world.
Using Fields’ wide range of entertainment content, we will
strive to provide various entertainment services and realize
new community-type membership service applying highlevel Internet technologies.

http://www.futurescope.jp/

http://www.jsm.jp

G&E Corporation
White Trash Charms Japan Co., Ltd.
■A fashion accessories brand that originated on the U.S. West

Coast and is widely cherished by fashion leaders, including
Hollywood stars, artists and stylists. Started selling imported
products in Japan in April 2002. Opened a directly managed
shop in Roppongi Hills in April 2003. Plans are under way to
expand its product lineup.
http://www.whitetrashcharmsjapan.com

Fields Pictures Corporation■Established to create profitable content for movies andanimation.
Through the multiple use of digital content for
pachinko/pachislot and games, the Group will create its
original primary content.

Source: Fields■Via joint investments of Sankyo Corporation, Sammy

Corporation and Fields Corporation, G&E Corporation wasestablished as Japan’s first school to train human resources
for comprehensive entertainment companies.
At this school, students not only learn the basics of the industry but also improve businessskills, and systematically learn and acquire leading-edge technologies and knowledge.
Many career opportunities in the investing companies and other entertainment companies
await the graduates.
http://www.g-e.jp/

Kadokawa Haruki Corporation■Kadokawa Haruki Corporation has established a distinctive position in the
publication industry through exploring untapped genres in each field. Haruki
Kadokawa, its Special Advisor, is known as a forerunner of a media mixing
strategy that promotes multifaceted content development for publication, movies
and music, etc.
In collaboration with this company, Fields Corporation conducts joint businesses
regarding the multiple use of content held by Kadokawa Haruki Corporation, andcreates primary content and characters with the help of said company’s content
development abilities, thereby getting out of the current content provider
businesses primarily for the secondary use of existing content.
http://www.kadokawaharuki.co.jp/
Copyright 2007 FIELDS CORPORATION All rights reserved. 18

Financial Highlights
Key financial data (¥thousand)Net sales
Operating income
Ordinary income
Net income
Common stock
Net assets
Total assets
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period

Indicators per share (Yen)Net assets per share
Annual dividend per share(Non-consolidated)

1999.3(Non-consolidated)2000.3(Non-consolidated)2001.3(Non-consolidated)2002.3(Non-consolidated)2003.3(Consolidated)2004.3(Consolidated)2005.3(Consolidated)2006.3(Consolidated)2007.3(Consolidated)2008.3 1Q(Consolidated)

11,811,500
138,791
107,358
34,842
10,00023,9385,388,131

10,017,585
768,876
726,910262,168
10,000286,107
6,199,947

－
－
－
－

－
－
－
－

11,496,060
1,700,893
1,681,106
583,081
116,000
1,069,803
6,211,821
1,105,738
269,440(920,780)
1,414,660

34,560,468
5,730,688
5,664,866
3,041,486
530,500
3,883,201
18,631,438
4,525,559(724,077)
2,004,198
6,857,525

61,888,832
6,781,196
7,022,048
3,524,372
1,295,500
8,752,797
17,090,435
3,316,128(2,253,217)(2,454,804)
5,739,061

66,211,589
11,866,578
12,209,509
6,620,253
1,295,500
14,507,820
37,115,839
851,192(3,190,193)
2,029,999
5,437,758

81,658,011
12,097,224
12,480,571
6,926,791
7,948,036
33,426,273
72,584,547
2,965,857(5,257,154)
10,177,881
13,326,256

96,814,364
12,348,156
13,127,685
7,085,994
7,948,036
39,411,552
87,556,534
6,164,786(2,224,610)(1,540,544)
15,777,313

85,321,144
8,944,975
9,202,537
3,710,224
7,948,036
42,836,691
66,081,557
5,293,740(4,772,711)
1,488,670
17,819,928

24,234,564
2,322,818
2,627,373
1,156,602
7,948,036
43,316,262
83,971,520
5,411,415(2,145,358)(487,109)
20,674,252

1999.3(Non-consolidated)2000.3(Non-consolidated)2001.3(Non-consolidated)2002.3(Non-consolidated)2003.3(Consolidated)2004.3(Consolidated)2005.3(Consolidated)2006.3(Consolidated)2007.3(Consolidated)2008.3 1Q(Consolidated)

119,690

1,430,535

461,122

1,325,324

268,600

89,30596,026113,275

118,487

119,850－－

15,000Old shares

100,000

New shares

27,398

2nd new shares

Net income per share

10,000548

24,000
4,000
4,000
4,000
・Commemorative 10,000
4,000
dividend 10,000 ・Interim dividend 2,000 ・Interim dividend 2,000 ・Interim dividend 2,000 ・Interim dividend 2,000・Interim dividend 10,000 ・Year-end dividend 2,000 ・Year-end dividend 2,000 ・Year-end dividend 2,000 ・Year-end dividend 2,000
・Year-end dividend 4,000

174,211

1,310,844

2,075,024

1,275,256

117,233

40,46519,888

20,118

10,692

3,333

Management indicators (%)

1999.3(Non-consolidated)2000.3(Non-consolidated)2001.3(Non-consolidated)2002.3(Non-consolidated)2003.3(Consolidated)2004.3(Consolidated)2005.3(Consolidated)2006.3(Consolidated)2007.3(Consolidated)2008.3 1Q(Consolidated)

Shareholders’ equity ratio
Return on equity (ROE)
Return on assets (ROA)
Payout ratio

0.4
534.6
2.2

4.6
169.1
12.6
－

20.8
122.8
45.6
7.8

51.2
55.9
39.3
7.9

39.1
56.9
45.1
(1)
20.1

46.0
28.9
22.8
20.7

45.0
19.5
16.4
20.3

62.2
9.2
12.0
(2)
37.4

49.5

－

17.2
86.0
27.1
6.0

(1)

Other
Total number of shares issued andoutstanding (shares) (3)Number of employees (persons)

Payout ratio for the year ended March 2004 was computed including a commemorative dividend.

Consolidated payout ratio

1999.3(Non-consolidated)2000.3(Non-consolidated)2001.3(Non-consolidated)2002.3(Non-consolidated)2003.3(Consolidated)2004.3(Consolidated)2005.3(Consolidated)2006.3(Consolidated)2007.3(Consolidated)2008.3 1Q(Consolidated)

200
166

200
210

2,320
319

2,930
323

32,300460

161,500
651

347,000
758

347,000
901

347,000
1,022

347,000

・September 2004

1:2 stock split(3)

Source: Fields(2)・October 2002

1:10 stock split

・November 2003

1:5 stock split

Copyright 2007 FIELDS CORPORATION All rights reserved. 19

PS Field

Main Titles during the 1st Quarter of Year Ending
March 2008
Pachinko machine

Pachislot machine[New regulation machine]
TitlesTitles■CR LOONEY TUNES BIA
・The new machine features characters from the movie
LOONEY TUNES BACK IN ACTION.
・Displayed in nine partitions and eight lines. Dynamic
in-machine moving devices enhance LCD movements.
TM&©Warner Bros.Entertainment Inc.
(s07)
Produced under license by Cross Media International,LLC■Morning Musume
・The characters featured in the new machine are former
members of the Japanese pop group Morning Musume,
who participate actively in diverse fields since having
left the group.
・Their actions to protect the peace of the universe are
depicted through the combination of the LCD and agigantic shutter.
©UP-FRONT AGENCY/FIELDS■Devil May Cry 3
・The new machine features content from the “Devil May
Cry 3” video game software for family developed by
Capcom Co., Ltd.
・With Capcom’s full cooperation, amazing quality andbeautiful images were realized.
©CAPCOM CO.,LTD.2005 ALL RIGHTS RESERVED./ILLUSTRATIONS:Kazuma Kaneko/ATLUS ©Sammy ©RODEO

Source: Fields

Copyright 2007 FIELDS CORPORATION All rights reserved. 20

PS Field

PS Field: Transition in the Number of machines Sold
（Unit:Machines）

Number of machines sold

Year
ended
March
2001

Year
ended
March
2002

Year ended
March 2003

Year ended
March 2004

Year ended
March 2005

Year ended
March 2006

Full
Year

Full
Year

1st Half 2nd Half Total

1st Half 2nd Half Total

1st Half 2nd Half Total

1st Half 2nd Half Total

Year
Year ended ending
March 2007 March
2008
1Q

2Q

1st Half

166,339 222,660 133,448 126,365 259,813 153,254 170,683 323,937 168,707 305,337 474,044 159,387 384,934 544,321 124,274 105,533 229,807

3Q

4Q

2nd Half Total

71,750 209,690 281,440 511,247

1Q
85,149

Sales ratio
Pachinko

Unit
Composition

95,631 62,809 34,823 43,876 78,699 42,575 102,456 145,031 91,157 190,943 282,100 74,344 255,317 329,661 65,637 57,634 123,271 42,026 180,526 222,552 345,823 27,774
57.50% 28.20% 26.09% 34.72% 30.29% 27.78% 60.03% 44.77% 54.03% 62.54% 59.51% 46.64% 66.33% 60.56% 52.82% 54.61% 53.64% 58.57% 86.09% 79.08% 67.64% 32.62%

Pachislot

Unit
Composition

70,708 159,851 98,625 82,489 181,114 110,679 68,227 178,906 77,550 114,394 191,944 85,043 129,617 214,660 58,637 47,899 106,53 29,724 29,164 58,888 165,424 57,375
42.50% 71.80% 73.91% 65.28% 69.71% 72.22% 39.97% 55.23% 45.97% 37.46% 40.49% 53.36% 33.67% 39.44% 47.18% 45.39% 46.36% 41.43% 13.91% 20.92% 32.36% 67.38%

Agency/distribution sales ratio
Agencysales

Unit
Composition

164,705 151,423 36,840 46,569 83,409 45,892 105,718 151,610 92,584 194,221 286,805 82,152 273,980 356,132 67,938 59,143 127,081 43,098 179,988 223,086 350,167 27,675
99.01% 68.01% 27.61% 36.85% 32.11% 29.95% 61.96% 46.81% 54.87% 63.61% 60.50% 51.54% 71.18% 65.43% 54.67％ 56.04% 55.30% 60.07% 85.84% 79.27% 68.49% 32.50%

Distribution
sales

Unit
Composition

1,634 71,237 96,608 79,796 176,404 107,362 64,965 172,327 76,123 111,116 187,239 77,235 110,954 188,189 56,336 46,390 102,726 28,652 29,702 58,354 161,080 57,474
0.99% 31.99% 72.39% 63.15% 67.89% 70.05% 38.04% 53.19% 45.13％ 36.39% 39.50% 48.46% 28.82% 34.57% 45.33% 43.96% 44.70% 39.93% 14.16% 20.73% 31.51% 67.50%

Direct/Indirect sales ratio
Direct sale

Unit
Composition

77,268 129,020 79,859 82,989 162,848 98,305 128,291 226,596 123,338 239,310 362,648 112,917 291,982 404,899 88,448 79,340 167,788 55,124 163,379 218,503 386,291 68,170
46.45% 57.94% 59.84% 65.67% 62.78% 64.15% 75.16% 69.95% 73.10% 78.38% 76.50% 70.84% 75.85% 74.39% 71.17% 75.18% 73.01% 76.83% 77.91% 77.64% 75.56% 80.06%

Indirect sales Unit
Composition

89,071 93,640 53,589 43,376 96,965 54,949 42,392 97,341 45,369 66,027 111,396 46,470 92,952 139,422 35,826 26,193 62,019 16,626 46,311 62,937 124,956 16,979
53.55% 42.06% 40.16% 34.33% 37.32% 35.85% 24.84% 30.05% 26.90% 21.62% 23.50% 29.16% 24.15% 25.61% 28.83% 24.82% 26.99% 23.17% 22.09% 22.36% 24.44% 19.94%

Source : Fields

Copyright 2007 FIELDS CORPORATION All rights reserved. 21

Appendix II

Copyright 2007 FIELDS CORPORATION All rights reserved. 22

Japanese Leisure Market
Market Scale of Pachinko / Pachislot Industry
2006 Japanese Leisure market - total size of JPY78.9 trillion

Changes in Pachinko Market
91.0 89.0

87.0

87.0

86.0

85.0

83.0

83.0

82.0

81.0

80.1

78.9

28.5

28.7

27.8

29.2

29.6

29.4

28.7

27.4

2005

2006

Total leisure market

Sports
JPY4.3 trillion
Sightseeing / excursion （5.5%）
JPY10.7 trillion
Game / gambling / food & drink（13.5%）
JPY25.5 trillion（32.3%）
Hobby / creation
JPY11.0 trillion（13.9%）

30.9

30.0

28.4

28.0

Pachinko Market

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Changes in Number of Pachinko Players
Pachinko / Pachislot
JPY27.5 trillion（34.8%）

3,877

4,423

(10,000 people)

Entertainment business Institute2,865 2,998

2,819 2,766
2,100

2,900 2,760
2,310

2,170
1,900

1,980 1,860 2,020 1,930 1,823

1,740

1,790 1,710 1,660
1,509 1,606

1,345

2004

2006

White Paper on Leisure

Pachinko / pachislot is one of the leading forms of entertainment in Japan, being playedby 13.0% of the population in one of 14,700 venues
1995

1996

Source: “White Paper on Leisure 2007”by Central Research Service, Inc., “Pachinko Participation Fact-Finding Survey 2007”by Entertainment business Institute

1997

1998

1999

2000

2001

2002

2003

2005

Copyright 2007 FIELDS CORPORATION All rights reserved. 23

Market Scale of Pachinko/Pachislot Industry(2006)
Income Structure of Pachinko Halls

Scale of the pachinko/pachislot market: ¥27.5 trillion （Total lease amount of pachinko balls）

Gross profit:¥2.7 trillion

Premiums: ¥24.8 trillion

Gross profit: ¥2.7 trillion

New machine installment costs(purchase amount of new machines)▼

Investment for customer expansion

・Pachinko machine: ¥ 8,750 billion
・Pachislot machine: ¥ 4,854 billion▼

Costs for constructing new halls and refurbishingexisting halls
Advertisement, marketing and after-service
expensesRelated equipment expenses
Other expenses
Net income

Pachinko/pachislot machine
market: approximately¥ 13,604 billion
Source: “White Paper on Leisure 2007”by Central Research Service, Inc, “Trend and market share of Pachinko related makers 2007”, Estimation by Fields

Copyright 2007 FIELDS CORPORATION All rights reserved. 24

Players in the Pachinko/Pachislot Industry
Players
Machine manufacturers■ 28 pachinko machine manufacturers

Pachinko Hall Operators
Direct sales■Around 14,674 in Japan■Over 60 pachislot machine manufacturers■Neighbourhood based■Regulated

40% for pachinko and 20% for Pachislot■Large number of small owner operators but somesignificant chains■Constant need to attract and retain players■‘Fickle’ client baseDistributors■High machine turnover (every 12 months)

Indirect sales■On average, each machine pays for itself in c. 3-6
weeks■Usually paid via a commission from manufacturers
but may also have a resale model for pachislot■Network of salesmen■Not directly regulated

Source: Yano Research Institute Ltd.

■Regulated

60% for pachinko and 80% for Pachislot

Copyright 2007 FIELDS CORPORATION All rights reserved. 25

Number of Pachinko Halls and Installed Machines Per Hall
43000

336.5
340

323.1
318.2

38000

320

304.3
33000

294.7

300

284.9

# of installed machines per hall
28000

279.9
274.3
268.0

268.0

18,164

17,773

280

270.3

23000

260.5
260

18,22418000

Pachinko/Pachislot parallel
establishment (Store #)17,426

17,173

16,98816,801

16,504

16,076

15,617

15,165

14,674240

13000

17,594

17,611

17,174

16,764

16,021

16,413

15,691

15,255

14,695

13,844

13,163

1,773

2,002

12,588220

8000

Pachislot Specialty Stores (Store#)
200
3000

570

613
-2000

1995

1996

662

599

1997

Source: “Trend and market share of Pachinko related makers 2007” by Yano Research Institute

1998

1999

1,110

967

760

2000

2001

1,381

1,249

2002

2003

2004

2005

2,086

2006

180

Copyright 2007 FIELDS CORPORATION All rights reserved. 26

Unit Sales and Sales Amount of Pachinko/Pachislot Machines
12,000,000

8,750

8,672

9000

7,864

Pachinko Machine Sales Amount (hundred million yen）

6,707

10,000,000

7000

5,684

5,691

5,615

5,184

Pachislot Machine Sales Amount（hundred million yen）
8,000,000

5,255

3,623

5000

5,430

5,248

4,854
3,966
3,513

3,146

6,000,000

5,529,069

2,693

2,353
1,828

Unit sales of Pachinko machines 4,067,195

3000

4,503,180

4,359,056

4,521,208

5,687,950

5,851,719
5,469,064

4,675,973

1000

4,060,759

4,000,000

3,373,704

3,133,340
3,128,054

3,935,063

3,716,599

2,847,838

2,000,000

Unit sales of Pachislot machines

3,230,489

3,368,839

4,047,427

4,012,901

3,686,677

3,831,211

3,174,079-1000

2,358,321-3000

423,993

350,596

525,866

1,134,341

932,705

775,019

1,290,719

1,842,392

1,501,894

1,675,049

1,804,292

1,637,853

0Pachinko/Pachislot Machine Total
Sales Amount (hundred million yen）

-5000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

11,962

13,112

14,102

13,604NA

NA

NA

Source: “Trend and market share of Pachinko related makers 2007” by Yano Research Institute

5,977

7,876

8,830

9,205

9,581

Copyright 2007 FIELDS CORPORATION All rights reserved. 27

Number of Installed Pachinko/Pachislot Machines andAnnual Turnover Rate
12,000,000

1.37

1.31

1.30

(1)

Annual turnover rate of Pachinko machine (times)
1.30

1.14
1.01

10,000,000

0.97

0.98

0.97

0.98
1.11

0.88
0.77

0.74

(1)

Annual turnover rate of Pachislot machine (times)

0.82

6,000,000

0.50

0.93

0.89

0.80

0.82

0.64

0.60

0.55

0.94

0.89

0.86

8,000,000

0.30

Number of installed
Pachinko machines

4,753,358

4,868,050

4,710,646

4,709,796

4,755,302

4,786,255

4,891,944

4,969,156

4,899,198

4,937,381

4,000,000

3,906,767

3,827,577

Number of installed
Pachislot machines

4,763,433

4,864,062

3,853,529

3,686,066

3,558,036

3,422,650

3,321,391

3,252,241

3,227,239

3,077,537

2,960,939

1,459,233

1,660,839

1,936,470

1,323,729

1,887,239

1,139,356

1,606,123

1,004,642

2,932,952-0.20

2,000,000

880,090

767,584

700,332

2,003,482

0Annual turnover rate of totalmachines (times)）

-0.70

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

0.86

0.90

0.71

Source: “Trend and market share of Pachinko related makers 2007” by Yano Research Institute

0.67

0.86

0.95

0.95

0.96

1.13

1.15

1.20

1.11

Copyright 2007 FIELDS CORPORATION All rights reserved. 28

Market Share by Manufacturers
Unit Sales Share - Pachinko Machine
2000

2001

2002

2003

2004

2005

2006

Ranking Manufacturer Market share Manufacturer Market share Manufacturer Market share Manufacturer Market share Manufacturer Market share Manufacturer Market share Manufacturer Market share
1

SANKYO

18.6%

Sanyo

18.9%

Sanyo

16.4%

Sanyo

25.2%

Sanyo

22.9%

Sanyo

24.7%

Sanyo

23.1%

2

Sanyo

15.1％

SANKYO

17.3%

SANKYO

14.8%

SANKYO

16.4%

SANKYO

21.1%

SANKYO

18.2%

Kyoraku

20.9%

3

Heiwa

11.7%

Heiwa

10.8%

Heiwa

10.0% Daiichi Shokai

9.5%* Heiwa

8.7%

Kyoraku

9.6%

SANKYO

16.6%

4 Daiichi Shokai
5

Sofia

7.4% Daiichi Shokai

10.3％ Daiichi Shokai

8.1%

Heiwa

7.1% Daiichi Shokai

7.6%

Newgin7.9%

Newgin

6.6%

5.9％

7.6%

7.9%

Sammy

6.7%

6.9%

Sammy

7.1% Daiichi Shokai

5.1%

Kyoraku

Kyoraku

Newgin*The number of sales of Heiwa in FY2004 is converted for 15 months for the accounting period change.
*Sankyo sales includes Bisty

Unit Sales Share - Pachislot Machine
2000
Ranking

2001

2002

2003

2004

2005

2006

Manufacturer Market share Manufacturer Market share Manufacturer Market share Manufacturer Market share Manufacturer Market share Manufacturer Market share Manufacturer Market share
1

Aruze

36.2%

Sammy

32.8%

Sammy

31.1%

Sammy

32.1%

Sammy

40.4%

Sammy

33.6%

Sammy

31.9%

2

Yamasa17.6%

Yamasa17.8%

Yamasa20.4%

Olympia18.5%

Olympia

16.4%

Daito giken

13.0%

Daito giken

12.2%

3

Sammy

13.5%

Aruze

16.1%

Aruze

19.8%

Aruze

13.6%

Yamasa8.9%

Olympia

10.3%

Yamasa10.5%

4

Olympia

8.8%

Olympia

8.5%

Olympia

11.7%

Yamasa11.9%

Daito giken

7.8%

Yamasa8.3%

Olympia

9.6%

5

Net

4.4%

Pioneer

5.0%

Pioneer

3.3%

Daito giken

4.8%

Aruze

4.6%

SANKYO

6.1% Kita Denshi

9.4%*Sammy sales includes Rodeo*Sankyo sales includes Bisty*Aruze sales includes Eleco,Mizuho and Macy
*Olympia sales includes Heiwa

Source: “Trend and market share of Pachinko related makers 2007” by Yano Research InstituteCopyright 2007 FIELDS CORPORATION All rights reserved. 29Disclaimer

The plans, strategies and estimates of the Company indicated in these documents, other thanactual results and facts, include potential risks and uncertainties and cannot be guaranteed.
Potential risks and uncertainties include, but are not limited to, the economic environment of
the pachinko/pachislot market in which the Company operates, market competition and the
products handled by the Company.

Source: Fields

Copyright 2007 FIELDS CORPORATION All rights reserved. 30