Financial Presentation (Year Ended March 2008)
May 14, 2008

FIELDS CORPORATIONTHE GREATEST LEISURE FOR ALL PEOPLE

FIELDS CORPORATIONJASDAQ: 2767

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Copyright 2008 FIELDS CORPORATION All rights reserved.

Ｃｏｎｔｅｎｔｓ

Year Ended March 2008 Results(Consolidated)

Full-Year Forecast for the Year Ending March
2009(Consolidated)■ General Description

4■ Highlights for the Year Ending March 200913

■ Results for the Year Ended March 2008-(P/L)

5

14■ Highlights for the Year Ended March 2008
-PS Field■ Highlights for the Year Ended March 2008
-Game Field/Other Field■ Segment Information for the Year Ended March
2008■ Results for the Year Ended March 2008-(B/S)(Overview )6■ Full-Year Forecast for the Year Ending March2009■ Introduction of Newly Group Companies

9■ Med-Term Management Plan

16

15

10
11

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Year Ended March 2008 Results(Consolidated)■ General Description

4■ Results for the Year Ended March 2008-(P/L)

5■ Highlights for the Year Ended March 2008
-PS Field■ Highlights for the Year Ended March 2008
-Game Field/Other Field■ Segment Information for the Year Ended March 2008

6

■ Results for the Year Ended March 2008-(B/S)(Overview)

9
10
11

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General Description
PS Field
Strategies for theYear Ended
March 2008

Game Field

Other Field

Business results

 1st Half: Focus on sales of pachislot machines.
 2nd Half: Focus on sales of pachinko machines.
 Create synergies mainly in the PS Field.
 Introduce original global content worldwide.
 Create Group synergies through cross-media development of content.
 Invest in content development for the year ending March 2009, and beyond.

 Revised the plan upward (Consolidated and Non-Consolidated).
 Obtained the information security management system ISO27001 certification.
 Introduced a new key system (mySAP ERP) and streamlined the operational flow.
 Announced a business alliance with KYORAKU SANGYO.

Full-Year

Management

TOPICS Strengthened our capital relationship with SANKYO CO., LTD., and SANKYO became
our second largest shareholder in February 2008.
 Distributed a 20th anniversary commemorative dividend, leading to anannual dividend of ￥4,500.
 Started operation of Lucent Pictures Entertainment, Inc.

Group strategies

Source: Fields(entered the animation video field).
 Established new Group companies for sports, mobiles, movies and animation, etc.
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Results for the Year Ended March 2008-(P/L)
Net sales■ ￥101.81 billion (up ￥16.49 billion, or 19.3%, from a year earlier) ⇒ Record highOperating income■ ￥ 13.15 billion (up ￥ 4.21 billion, or 47.1%, from a year earlier) ⇒ Record highNet income■ ￥5.29 billion (up ￥ 1.58 billion, or 42.8%, from a year earlier)■ Sales of pachinko/pachislot machines progressed favorably, and the Group companies’ businesses

generally progress as expected.

Highlights■ Non-Consolidated: ①November 6, 2007 ②February 5, 2008 Revised full-year forecast upward■ Consolidated:

Change in net sales(Unit: ￥Million)+￥3.81 billion
Initial target: ¥98 billion
100,000①November 6, 2007 ②March 10, 2008 Revised full-year forecast upward

Change in operating income
101,818(Unit: ￥Million)

12,00085,32180,00013,158+￥3.55 billion
Initial target: ¥9.6 billion

10,0008,944

64,648

7,822

8,000

60,00047,122(Unit: ￥Million)

6,000
5,296
5,000

3,077

2,000
1,000

2,000
0

0

3,710

2,225

4,000
20,000+￥1.49 billion
Initial target: ¥3.8 billion

4,000

4,720

40,000Source: Fields

Change in net income

3,000

6,000

Results far
better than theinitial targets

0

07/03 07/03

08/03 08/03

07/03 07/03

08/03 08/03

07/03 07/03

08/03 08/03

1st Half Full-Year
Results Results

1st Half Full-Year
Results Results

1st Half Full-Year
Results Results

1st Half Full-Year
Results Results

1st Half Full-Year
Results Results

1st Half Full-Year
Results
Results

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Highlights for the Year Ended March 2008-PS Field

PS Field

 1st Half: Focused on sales of pachislot machines in anticipation of large-scale replacement with new regulation pachislot
machines.
 2nd Half: Focused on sales of pachinko machines, expecting strong replacement demand.
 Full-year: Cumulative number of pachinko machines sold: 273,981; Cumulative number of pachislot machines sold: 210,553
 Pachinko machines (1st Half: 2 models; 2nd Half: 4 models)・TOPICS 4Q: Sold about 200,000 machines of CR Neon Genesis Evangelion－The Angels Are Back Again by Bisty.
 Pachislot machines (1st Half: 6 models; 2nd Half: 4 models)・TOPICS 2Q: Sold about 100,000 machines of Neon Genesis Evangelion－‘Magokoro wo Kimini’ by Bisty.
Pachinko Machines

Pachislot Machines

Introduced attractive products
responding to
replacement demand

1Q
1st Half■CR LOONEY TUNES BIA

Limited to only two models
and focused on pachislot
machine sales■Morning Musume■Devil May Cry 3■CR Sakura Taisen■Neon Genesis Evangelion■Kaiketsu Harimau■Cream Stew

■CR The Mask of Zorro ■CRA Felix the Cat ■CR Tomb Raider■Beach Club

■Virtua Fighter

Stable supply of products
full of interesting game features

2Q

ｰ‘Magokoro wo Kimini’■The Mask of Zorro

3Q
2nd Half
4Q

Eva Series
Record 197,000 machines sold■Shin Sangokumusou■CR Neon Genesis Evangelion—The Angels Are Back Again■ Tenka Muteki! Salaryman Kintaro

Source: Fields©UP-FRONT AGENCY/FIELDS©CAPCOM CO., LTD. 2005 All Rights Reserved./Illustrations: Kazuma Kaneko/ATLUS ©Sammy ©RODEO
TM&©Warner Bros. Entertainment Inc.
©GAINAX・Color/Project Eva. ©Bisty©GAINAX・Color/Project Eva.
(s07)
©SENKOKIKAKU
Produced under license by Cross Media International, LLC©1998
TriStar Pictures, Inc. All Rights Reserved. ©2007 Zorro Productions, Inc. All Rights Reserved. ©Sammy ©RODEO©SEGA ©RED ©Sammy©Cream Stew ©Sammy ©RODEO©1998 TriStar Pictures, Inc. All Rights Reserved. ©2007 Zorro Productions, Inc. All Rights Reserved.
©SEGA ©Sammy ©RODEO
TM&©FELIX THE CAT PRODUCTIONS, INC.
©Hiroshi Mitomiya/SHUEISHA Inc./FIELDS ©Sammy ©RODEO© 2007 Paramount Pictures Corp. All Rights Reserved. Lara Croft and Tomb Raider are trademarks of Eidos Interactive Limited.
© KOEI Co., Ltd. All rights reserved.
Eidos and the Eidos logo are trademarks of the Eidos Group of Companies. All rights reserved.

Copyright 2008 FIELDS CORPORATION All rights reserved.

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Alliance with KYORAKU SANGYO
7 Feb 2008： Agreement to affiliation in new alliance

Alliance■ Aim to produce entertainment machines that are not dependent on gambling nature■ Mutual cooperation in new product development■ Product planning, development, and sales with higher entertainment and playability value■ Increase fan base, contribute to expansion and development of the industry

KYORAKU SANGYO ： Renowned for excelling in the production and development of high quality products with a wide variety of themes and playability
Corporate Date

(As of February 1, 2008)

Company NameKYORAKU SANGYO

Established

August 1, 1961

Representative
Directors

Chairman Hiroshi Enomoto
President Yoshinori Enomoto

Head officeaddress

Main title of Pachinko Machines sold (After 2005)(As of March 31, 2008)

Apr, 2008

CR Pachinko Winter SonataⅡ

Jul, 2007

CR Pachinko Kamen Rider shokker zenmetsu daisakusen

Apr, 2007

CR Pachinko Hissatsu Shigotonin Ⅲ

3-24-4, Nishiki, Naka-ku, Nagoya-shi Aichi 460-0003, Japan

Dec, 2006

CR Pachinko Ultraman

Paid in capital￥45 million

Sep, 2006

CR Pachinko Misora Hibari

Number of employees

314
Planning, development, manufacture, and distribution of pachinko
gaming machines and the acquisition, management, and licensingof industrial and intellectual property.

Mar, 2006

CR Pachinko Winter Sonata

Main businessactivities

May, 2005

CR Pachinko Ultra Seven

Market Share and machine sales for past 3 years
2004
Manufacturer
Machines soldShare (%)
Sanyo
920,000
22.9%

Manufacturer
Sanyo

2005
Machines sold1,000,000

Share (%)
24.7%

〈Hissatu Shigotonin III〉 〈Winter Sonata Ⅱ〉

Manufacturer
Sanyo

2006
Machines sold
887,000

Share (%)
23.1%

*SANKYO849,911

21.1%*SANKYO

740,320

18.2% KYORAKU SANGYO

804,000

20.9%

Heiwa

350,184

8.7% KYORAKU SANGYO

390,000

9.6%*SANKYO636,105

16.6%

Daiichi Shokai

308,173

7.6%

Newgin320,000

7.9%

Newgin253,000

6.6%

Newgin278,000

6.9%

Sammy

288,895

7.1%

Daiichi Shokai

195,947

5.1%

Sammy

233,049

5.8%

Heiwa

242,276

6.0%

Heiwa

184,832

4.8%

KYORAKU SANGYO

225,000

5.6%

FUJISHOJI

185,572

4.6%

FUJISHOJI

180,006

4.7%*SANKYO includes Bisty.
Source: “Trend and market share of Pachinko related makers 2007” by Yano Research Institute©松竹, ABC©KBS Media/Pan Entertainment All Right Reserved.

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Business Model Configure product line that can draw out the strengths of manufacturers in alliance

Manufacturers inalliance with Fields

 Aim to commercialize products faster through a new alliance with KYORAKU SANGYO(As of March 31, 2008)

TV/movie, animation, sports and other（Rights/Product planning)(Development/
Manufacture)(Development/
Manufacture)(Development/
Manufacture)（Fields original model）(SECTA)*(SECTA)*(SECTA)*

February 2008 Alliancepachinko
Pachinko

Pachislot（From 2003）（From 2000）

Agency Model(Commission Sales)

Distribution Model(Wholesales)pachinko
Pachinko（From(20032003）～)

pachinko
Pachinko

Pachislot（From 2003）

Agency Model(Commission sales)（From 2006 ）Distribution Model(Wholesales)

Pachislot

in progress
pachinko（From 2006 ）Distribution Model(Wholesales)

Distribution Model(Wholesales)(Sales agency)
Fields Sales

Fields Sales

Fields Sales

Pachinko Halls

Sammy GroupSANKYO GroupOlympia

KYORAKU SANGYO*Security Electronics Communications Technology Association

Source: Fields©SEGA ©RED ©Sammy ©SEGA ©Sammy ©RODEO ©GAINAX・Color/Project Eva. ©Bisty©GAINAX・Color/Project Eva.
©D3 PUBULISHER/TAITO/IMJE/FLAT-OUT/MEDIA FACTORY ©Ikki Kajihara•Jiro Tsunoda/Kodansha Ltd.
©CAPCOM CO., LTD. 2005 All Rights Reserved./Illustrations: Kazuma Kaneko/ATLUS ©Sammy ©RODEO

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Highlights for the Year Ended March 2008
-Game Field/Other Field
Game Field Domestic: Both full-priced game software and mobile content progressed favorably.
 Overseas: Released the original global content “darkSector” in March 2008 and accelerated development overseas.

Highlights
SIMPLE seriesGame software
Sold 4.98 million game software
packages(up 23.2% from a year earlier).

Titles Sold (examples)
SIMPLE series (mobiles)
Global content (High-end software)

Global content“darkSector”
highly evaluated.

Ben10

European and American market
Animation-related titles
sold well.

High-end software
PUZZLE QUESTJapanese market
Copyrighted titles sold well.
MobilesNumber of members
and supplied content
advanced steadily.

Other Field

Jushin-Enbu DS(Hero Tales)

Winning Pachinko ★ Pachislot series
darkSector

NARUTO Series

 Made aggressive investments in the sports, mobiles, movie, animation and other fields.
 Accelerated content development by Group companies.

■ Japan Sports Marketing Inc.
→Athlete management business saw steady progress.
→Fair price system by TWO; newly opened a branch inprovincial Fukuoka.
■ FutureScope Corporation→Fields mobile: It has been about one year since service
began. Steadily progressed with the number of members
exceeding 300,000.

Source: Fields※ The “i-mode” and “i-appli” logos are NTT DoCoMo’s registered trademarks.
※ The “Yahoo!” and “Y!” logos are registered brands or trademarks of U.S.-based Yahoo! Inc.
※ “EZweb” is a trademark of KDDI CORPORATION.
© GAINAX･Color/Project Eva. ©Bisty ©D3 PUBLISHER©HUANG JIN-ZHOU･GENCO･FLAG ©2007 Hero Tales production committee ©2007 Fields
Pictures■ Fields Pictures Corporation→Aggressive investments in content funds.
Example: Released “Watashitachi-no-shiawasena jikan(our happy time)” and made DVDs for it.

【Newly consolidated subsidiaries/equity-method affiliates】
・EXPRESS Inc.
・Haruki Fields Cinema Fund・SPO, Inc.

■ Lucent Pictures Entertainment, Inc.
→Started operation in October 2007; entered the animation

・Bbmf Magazine, Inc.

video field.
→Began planning and development.

CARTOON NETWORK, BEN 10, the logos and all related characters and elements are trademarks of and © Cartoon Network.
(s07)
Game and Software ©2007 D3Publisher of America, Inc. Published exclusively by D3Publisher of America, Inc. worldwide.

Copyright 2008 FIELDS CORPORATION All rights reserved.

NARUTO ©2002 MASASHI KISHIMOTO. Game and Software ©2007 TOMY. CLASH OF NINJA ™ and © 2002 TOMY. PATH OF NINJA ™ and © 2007 SHUEISHA. All rights reserved.
™ and © 2006 Infinite Interactive Pty. Ltd. Published exclusively by D3Publisher of America, Inc., worldwide. Puzzle Quest: Challenge of the Warlords™ and its associated characters and names are trademarks of Infinite Interactive Pty. Ltd. and are used under license.
Dark Sector ©2007 Digital Extremes, London, Canada. Dark Sector and the Dark Sector logo are trademarks of Digital Extremes. Digital Extremes and the Digital Extremes logo are trademarks of 1085522 Ontario Ltd.
All Rights Reserved. Published by D3 Inc. under license from Digital Extremes. All other trademarks are the property of their respective owners.

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Segment Information for the Year Ended March 2008
(Unit: ￥Million)

PS Field

Year Ended March
2006

Year Ended March2007

Full-Year Results

Full-Year Results

Full-Year Results

Composition (%)

Net sales

88,34971,30682,76380.2%

116.1%

Operating income

12,711

9,073

12,74796.7%

140.5%

Year Ended March 2008
YOY (%)

 1st Half: Focused on pachislot machines; 2nd Half: Focused on pachinko machines
 Number of pachinko machines sold: 273,981 (6 models introduced, a 20.8% year-over-year decrease) Number of pachislot machines sold: 210,553 (10 models introduced, a 27.3% year-over-year increase)
Total number of machines sold: 484,531

Game Field

Net sales

5,052

9,946

14,52814.1%

146.1%

Operating income

277

220

952

7.2%

432.7%

 Sales of high-end software and mobile content in the domestic market progressed steadily.
 Favorable overseas sales of original global content included “darkSector” (released in March 2008),“Ben10” and the “NARUTO” series.

Other Field

Net sales

4,083

5,521

5,919

5.7%

107.2%

Operating income

(655)

(513)

(516)

-3.9%

-

Aggressively investing in the sports, mobiles, movie, animation and other fields.
Accelerated content development by Group companies.

Source: Fields

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10

Results for the Year Ended March 2008-(B/S)(Overview)(Unit: ￥Million)

At March 31, At March 31, Increase/
2007
2008
Decrease

Major factors causing the increase/decrease

Total current assets

46,14439,559(6,585)(Cash and cash equivalents)

17,902

12,841(Inventories)

2,972

4,013

Use of cash and cash equivalents for investment(5,061) securities, etc.
Increases in game software and visual software in
1,041 progress

Total fixed assets

19,936

29,6099,673(Total tangible fixed assets)

5,756

8,093

(Total intangible fixed
assets)(Total Investments andother assets)

4,036

3,937

10,144

17,578

Increase due to the purchase of land for
2,337 establishing branches
Increase in software to establish a key system(99) Decrease in goodwill
Increase in investment securities (SANKYO/GOMA
7,434 HD, etc.)

Total assets

66,081

69,1683,087

Total current liabilities

18,86519,322457(Short-term borrowings)

2,230

3,398

1,168 Influence of D3 Inc.

(Accrued income taxes)

2,032

3,743

1,711

Total fixed liabilities

4,379

3,514

(865) Decrease in long-term borrowings

Total liabilities

23,244

22,836(408)

Total net assets

42,836

46,331

Increase in retained earnings due to an increase in
3,495 Fields’ earnings

Total liabilities and net assets

66,081

69,1683,087

Source: Fields

Copyright 2008 FIELDS CORPORATION All rights reserved.

11Full-Year Forecast for the Year Ending March 2009
(Consolidated)■ Highlights for the Year Ending March 200913

■ Full-Year Forecast for the Year Ending March 200914

■ Introduction of Newly Group Companies

15■ Med-Term Management Plan

16

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12

Highlights for the Year Ending March 2009
 Year to Start Med-Term Management Plan Pachinko / pachislot
PS Field Replacement demandin the market

・Sales of pachinko machines will be steady, leveraged by favorable operations of pachinko halls
and the emergence of attractive machines.
・Sales of pachislot machines for the year ending March 2009 should level off compared with asurge due to special demand during the 1st Half of the year ended March 2008.

 Strengthen planning and development focusing on sales of pachinko machines; introduce a new series of titles.
 Show our strength as an independent distributor trading firm.

 Group-related Domestic: Develop products of our mainstay “SIMPLE series”; introduce titles produced through tie-ups with movies and TV
programs; reinforce the mobile business.

Game Field

Other Field Overseas: Accelerate overseas development by continually introducing global content; start the supply of titles in Europe.
 Forecast for business results of D3 Inc.: Sales of mainstay titles should be strong mainly in the 2nd Half.
→Year-over-year change in operating income: 1st Half: a ￥770 million decrease;
Full-year: a ￥1.2 billion increase Fully reinforce the creation of primary content and outlet strategies for the use of content→Reinforce the Group synergies through multiple uses of content→Accelerate the shift to the profit-contribution structure by existing Group companies

 Management
Management
structure Launch the Med-Term Management Plan.
 Implement measures to reinforce Group governance.
 Nurture good corporate culture and raise awareness of it.
 Achieve the basic management policy of “Shareholders First.”

Projected
dividends

Source: Fields

 Projected dividend for the year ending March 2009
→Including a commemorative dividend of ￥500 for the year ended March 2008.
→Annual dividend per share of ￥4,500 (interim dividend of ￥2,000 and a year-end dividend of ￥2,500).

Copyright 2008 FIELDS CORPORATION All rights reserved.

13

Full-Year Forecast for the Year Ending March 2009
Net sales■ ￥75 billion (down ￥26.81 billion, or 26.3%, from a year earlier)Operating income
Net income■ ￥10 billion (down ￥ 3.15 billion, or 24.0%, from a year earlier)

Aim to increase profits
by improving
product capability■ ￥5.3 billion (up￥4 million, or 0.1%, from a year earlier)■ Introduce machines with preferred content into the market.

Highlights■ Introduce pachinko machines with a new series of titles; expand sales by introducing pachinko
machines of popular series.

Operating income

Net sales
Year-over-year decrease in earnings due to the difference ofaccounting methods for pachinko and pachislot machines(Agency, Distribution)(Unit: ￥Million)

100,000

Achieve market strategies
Increase in market valuation by introducing machines using preferred content(Unit: ￥Million)

101,818
98,000Net income(Unit: ￥Million)

13,158

6,000

5,296

5,300

12,00080,00037,17075,00045,00010,0009,600 5,336

10,000

5,000
4,000

8,000

60,00038,000

5,300
7,500

6,000
64,648

3,000

4,000

2,000

7,822

3,077

53,00037,000

2,000

1,000

4,300

1,000

2,500
0

0

Source: Fields

4,600
2,800

40,00020,0003,800 2,219

08/03 08/03

09/03

InitialResults
forecast

Initialforecast

700

008/03 08/03

09/03

08/03 08/03

09/03

InitialResults
forecast

Initialforecast

InitialResults
forecast

Initialforecast

Copyright 2008 FIELDS CORPORATION All rights reserved.

14

Introduction of Newly Group Companies■ (Upper tier) Main business activities[Newly Consolidated subsidiaries/equity method affiliates]■ (Lower tier) roles expected in the Fields GroupShin-Nichi Technology Co., Ltd.

Lucent Pictures Entertainment, Inc.

Holding ratio ofFields Corporation

100%

Holding ratio ofFields Corporation

100%

Segment

PS Field

Segment

Other Field

 Planning, development and mass production of pachinko
devices Effective use of licenses held Planning and production of animation videos
 Content creation and its secondary-use development

EXPRESS Inc.

Haruki Fields Cinema Fund

Holding ratio ofFields Corporation

80%

Holding ratio ofFields Corporation

90%

Segment

Other Field

Segment

Other Field

 Management of sports clubs
 Reinforce relationships with teams and athletes inwestern Japan

 Production of movies produced by Haruki Kadokawa
 Content creation and its secondary-use development

SPO, Inc.

Bbmf Magazine, Inc.

Holding ratio ofFields Corporation

34%

Holding ratio ofFields Corporation(Fields Pictures Corporation
33.7%)

Segment

Other Field

Segment

Other Field

 Planning, production and distribution of movies fortheaters; planning, production and sales of videograms Distribution of licenses held, entertainment performance,
production and sales of videograms
Source: Fields

 Publication business mainly to distribute mobile comics
 Content creation and its secondary-use development

Copyright 2008 FIELDS CORPORATION All rights reserved.

15

Med-Term Management Plan
■ Please see the attached document “Medium-Term Management Plan”

Medium-Term Management Plan (FY2008–FY2012)
May 14, 2008

FIELDS CORPORATIONTHE GREATEST LEISURE FOR ALL PEOPLE

FIELDS CORPORATIONJASDAQ:2767

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1

Copyright 2008 FIELDS CORPORATION All rights reserved.

Source: Fields

Copyright 2008 FIELDS CORPORATION All rights reserved.

16

Disclaimer/Contact

The plans, strategies and estimates of the Company indicated in these documents, otherthan actual 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.

 IR Section,
Investor and Public Relations Office
Contact

 Tel.: +81-3-5784-2111
 E-mail: ir@fields.biz

Source: Fields

Copyright 2008 FIELDS CORPORATION All rights reserved.

17