Summary（Translation）

FIELDS CORPORATION
Financial presentation (Year Ended March 31, 2005)

May 13 (FRI), 2005

THE GREATEST LEISURE FOR ALL PEOPLE

2767:JASDAQ

FIELDS CORPORATION
Copyright 2005
FIELDSCORPORATION All rights reserved.
Statements in these materials concerning plans, strategies, forecasts and other items that are not historical facts, including corporate risks and uncertainties,
cannotbe guaranteed.
Risks and uncertainties include, but are not limited to, economic conditions, the competitive environment and products supplied by Fields, all chiefly involving the company’s corepachinko / pachislot business domain.

1

Corporate Profile
Corporate Data

（As of March 31, 2005）

Principal shareholders（As of March 31, 2005）

Number ofshares held

Name of shareholders

Percentage ofoutstanding
shares owned

Hidetoshi Yamamoto

112,200

32.33%

Establishment

FIELDS CORPORATION
http://www.fields.biz/
June 1998 （Started business as TOYO Shoji Corporation in
1983）

Takashi Yamamoto

40,00011.53%

Head office address

E Space Tower 12F, 3-6, Maruyama-cho, Shibuya-ku, Tokyo
150-0044 Japan

Yoko Yamamoto

35,00010.09%

Paid-in capital¥7948.03 billion

Sammy Corporation

27,5007.92%

Mint Co.

16,000

4.61%

Stock information

Total outstanding shares: 347,000 shares※two-for-one stock split in September 2004

Morgan Stanley & Co.International Limited

5,479

1.57%

MarketJASDAQ 2767

Fields Employee Shareholding Association

5,435

1.56%

Yuki Yamamoto

5,000

1.44%

Morgan Stanley & Co. Inc.

4,761

1.37%

Japan Trustee Service Bank, Ltd. (in trust)

4,547

1.31%

Number of shareholders by
category

Financial institutions

4. 81%

Securities companies

1.59%

Other companies

15.09%

Company name

Number of employees 625 (non-consolidated)

758 (consolidated)

Main businessactivities

Planning, development, and sales of amusement machines

Branch offices

Sapporo, Aomori, Sendai, Koriyama, Niigata, Takasaki, Tsukuba,
Utsunomiya, Saitama, Chiba, Tokyo, Western-Tokyo, Yokohama,Shizuoka, Nagoya, Nagano, Aichi, Mie, Kanazawa, Kyoto, Osaka,
Kobe, Hiroshima, Okayama, Yamaguchi, Matsuyama, Fukuoka,
Saga, and Kagoshima (29 bases nationwide)

Consolidated
subsidiaries

・Professional Management Co., Ltd.
・Fields Jr. Corporation
・White Trash Charms Japan Co., Ltd.
・Total Workout Corporation
・Digital Lord Corporation
・D3 Publishers Inc.（from March 2005)
other 3 companies

Equity method
companies

・RODEO Co., Ltd. ・Kadokawa Haruki Corporation
other 1 company

Foreign companies and others 6.13%

Individuals and other72.38%

Source: Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

2

Content Provider Fields
Business Model

Copyrights

Content development

Production

Advertisement
plannerCMcreatorGame
creatorCellular phone content

TVplannerCopywriter

Broadcast
ProgramcreatorDistribution

TV & CMSportsSportsCD & DVD

Fans/
Players

Overseas players

Games
Games

Content providingEntertainers
Entertainers &&Artists
Artists

Copyright acquisition

Copyright
Acquisition

Research

CartoonCartoon&&Animation
Animation

Copyright development

TV
TV&&MoviesMoviesDomestic players

Movies & Music

Various goods
Pachinko
Pachislot
Arcade games
Home-use games

RelatedRelated companies
companies

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

3

Year Ended March 2005

Highlights

Copyright 2005 FIELDS CORPORATION All rights reserved.

4

Year ended March 2005
Non-consolidated operating results
Result for year ended March 2005 (non-consolidated)（Millions of Yen）

（Unit : ¥million）

Year ended March 2004

Year ended March 2005

Year ended March 2005

YOY

Actual to Plan

ActualPlan

Actual（％）（％）

Net sales

65,14071,70079,970122.8%

111.5%

Cost of Sales

43,97545,80055,787126.9%

121.8%

Gross profit

21,16425,80024,182114.3%

93.7%

SG&A

9,213

12,00011,906129.2%

99.2%

Operating income

11,95113,80012,275102.7%

88.9%

Ordinary income

12,054

13,80012,312102.1%

89.2%

Net income

6,520

7,490

6,721

103.1%

89.7%

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

5

Year ended March 2005
Consolidated operating results
Result for year ended March 2005 (consolidated)（Millions of Yen）

（Unit : ¥million）

Year ended March 2004

Year ended March 2005

Year ended March 2005

YOY

Actual to Plan

ActualPlan

Actual（％）（％）

Net sales

66,21173,70081,658123.3%

110.8%

Cost of Sales

44,633

47,10056,905

127.5%

120.8%

Gross profit

21,57826,60024,752114.7%

93.1%

SG&A

9,711

12,90012,655130.3%

98.1%

Operating income

11,866

13,80012,097101.9%

87.7%

Ordinary income

12,20914,00012,480102.2%

89.1%

Net income

6,620

7,600

6,926

104.6%

91.1%

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

6

Business results in FY2000-2004（Unit : ¥million）（Millions of Yen）
Net sales
Gross profit
Operating income
Ordinary income
Net income
Number of amusement machines

Year ended March 2001
Year ended March 2002
Year ended March 2003
Year ended March, 2004
Year ended March 2005
（Non-consolidated）（Non-consolidated）（Consolidated）（Consolidated）（Consolidated）
11,49634,56061,88866,211
81,6585,368
12,703
15,992
21,57824,752
1,700
5,730
6,781
11,866
12,097
1,681
5,664
7,022
12,20912,480
583
3,041
3,524
6,620
6,926
166,339
222,660
259,813
323,937
474,044

Financial results
Sales

Gross profit

Ordinary income（Unit : ¥million）

Unit sales of amusement machines

81,658T he number of sales of amusement machines（Unit : Machines）
474,044

66,211
61,888323,937

24,752
34,560259,813

21,578

222,660
166,339

15,992
12,703

12,20912,4802004.32005.3

11,496
5,368
1,681
2001.3

5,664
2002.3

7,022
2003.3

2001.3

2002.3

2003.3

2004.32005.3

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

7

Market share based on volume and unit sales of amusement
machines by sales channel -Ⅰ
Japanese market for amusement machines, based on（Unit : Machines）
volume, and market share of Fields
8.38%

T he number of sales in whole market

Unit sales of amusement machines by sales channel（Unit : Machines）(direct/indirect)
Direct sales

Indirect sales

Market share of Fields

474,044

111,396（23.5%）
5.86%
5.56%

4,503,180
3.69%

4,521,208

323,937

5,656,000*

4.92%

5,529,069
259,813

4,675,973

97,341（30.1%）

222,660

96,965（37.3%）
166,339

362,648（76.5%）

93,640（42.1%）

89,071（53.5%）
129,020（57.9%）

77,268（46.5%）
2001.3

2002.3

2003.3

2004.32005.3※The number of sales in whole market is calculated yearly

2001.3

2002.3

162,848（62.7%）

2003.3

226,596（69.9%）

2004.32005.3*The number of sales in whole market in 2004 is estimated by Fields
Source : Fields, “Trend and market share of Pachinko related makers 2004” Yano Research InstituteCopyright 2005 FIELDS CORPORATION All rights reserved.

8

Unit sales of amusement machines by maker and type ofmachine – Ⅱ
Unit sales by maker

Unit sales by type of machine (Pachinko/Pachislot)（Unit : Machines）

Sammy group

SANKYO group（Unit : Machines）

Pachislot

other makers

Pachinko

474,044474,044

29,083（6.1%）

323,937
52,869（16.4%）
259,813
222,660

166,339

41,335（18.6%）
314（0.1%）

286（0.1%）（3.1%）

222,660242（0.1%）
166,339

260,893（80.5%）

209,295（80.5%）

282,100（59.5%）

259,813

256,871（54.2%）

62,809（28.2%）

95,631（57.5%）
159,851（71.8%）

78,699（30.3%）

181,114（69.7%）

145,031（44.8%）

178,906（55.2%）

191,944（40.5%）

70,708（42.5%）

72,485（43.6%）
2001.3323,937

10,17550,276（19.4%）

93,568（56.3%）
181,011（81.3%）

188,090（39.7%）

2002.3

2003.3

2004.32005.3

2001.3

2002.3

2003.3

2004.32005.3*Sammy group : Sammy Pachinko, Rodeo Pachislot, SANKYO group : Bisty Pachinko, Bisty Pachislot

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

9Unit sales by product type (Pachinko/Pachislot)

Year ended
March 2001

Year ended
March 2002

Full year

Full year

Year ended
March 2003
1st Half

2nd Half

Full year

Year ended
March 2004
1st Half

2nd Half

Full year

Year ended
March 2005
1st Half

2nd Half

Full year（in Y thousand）
Operating income

1,700,893

5,730,688

4,406,268

2,374,928

6,781,196

6,111,557

5,755,021

11,866,578

3,171,648

8,925,576

12,097,224

Ordinary income

1,681,106

5,664,866

4,589,086

2,432,962

7,022,048

6,413,795

5,795,714

12,209,509

3,280,677

9,199,894

12,480,571

583,0813,041,486

2,278,072

1,246,300

3,524,372

3,523,380

3,096,873

6,620,253

1,972,236

4,954,555

6,926,791

Sum of Pachinko andPachislot

166,339

222,660

133,448

126,365

259,813

153,254

170,683

323,937

168,707305,337

474,044

Unit sales of Pachinko
Machines (sales ratio)

95,631
57.5%

62,80928.20%

34,82326.09%

43,87634.72%

78,69930.29%

42,57527.78%

102,456
60.03%

145,03144.77%

91,15754.03%

190,943
62.54%

282,100
59.51%

Unit sales of Pachislot
machines (sales ratio)

70,70842.5%

159,85171.80%

98,62573.91%

82,48965.28%

181,11469.71%

110,679
72.22%

68,22739.97%

178,906
55.23%

77,55045.97%

114,39437.46%

191,944
40.49%

Agency sales(Machines)

164,705
99.01%

151,42368.01%

36,84027.61%

46,56936.85%

83,40932.11%

45,89229.95%

105,71861.96%

151,61046.81%

92,58454.87%

194,22163.61%

286,80560.50%

Distribution sales(Machines)

1,634
0.99%

71,23731.99%

96,60872.39%

79,79663.15%

176,404
67.89%

107,36270.05%

64,96538.04%

172,327
53.19%

76,12345.13％

111,11636.39%

187,23939.50%

Direct sales(Machines)

77,26846.45%

129,02057.94%

79,85959.84%

82,98965.67%

162,848
62.78%

98,30564.15%

128,291
75.16%

226,596
69.95%

123,33873.10%

239,31078.38%

362,648
76.50%

Indirect sales(Machines)

89,07153.55%

93,64042.06%

53,58940.16%

43,37634.33%

96,96537.32%

54,94935.85%

42,39224.84%

97,34130.05%

45,36926.90%

66,02721.62%

111,39623.50%Net income
Unit sales of machines

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

10

Year Ended March 2006 Outlook

Copyright 2005 FIELDS CORPORATION All rights reserved.

11

Year ended March 2006
Non-consolidated operating plan
Estimates for year ended March 2006 (non-consolidated)Year ended
March 2005
（Millions of Yen）

1st Half result

2nd Half result Full year result

Year ended
March 2006
1st Half plan

YOY（％）

2nd Half plan

YOY（％）

Full year plan

YOY（％）

30,26549,70579,97034,500114.0%

51,300103.2%

85,800107.3%

8,727

15,45524,182

12,200139.8%

16,700108.1%

28,900119.5%

SG&A

5,398

6,508

11,9067,200

133.4%

7,700

118.3%

14,900125.1%

Operating income

3,328

8,947

12,2755,000

150.2%

9,000

100.6%

14,000114.1%

Ordinary income

3,265

9,047

12,312

5,100

156.2%

8,900

98.4%

14,000113.7%Net income

1,992

4,729

6,721

2,700

135.5%

4,700

99.4%

7,400

110.1%Net sales
Gross profit

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

12

Year ended March 2006
Consolidated operating plan
Year ended
March 2005
（Millions of Yen）

1st Half result

2nd Half result Full year result

Year ended
March 2006
1st Half plan

YOY（％）

2nd Half plan

YOY（％）

Full year plan

YOY（％）

30,97550,68381,65838,500124.3%

56,400111.3%

94,900116.2%

8,986

15,76624,75213,800153.6%

18,600118.0%

32,400130.9%

SG&A

5,814

6,841

12,6558,800

151.4%

9,000

131.6%

17,800140.7%

Operating income

3,171

8,926

12,0975,000

157.7%

9,600

107.6%

14,600120.7%

Ordinary income

3,280

9,200

12,4805,200

158.5%

9,500

103.3%

14,700117.8%Net income

1,972

4,954

6,926

2,700

136.9%

5,000

100.9%

7,700

111.2%Net sales
Gross profit

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

13

Strategic Expansion

Copyright 2005 FIELDS CORPORATION All rights reserved.

14

Evolution of pachinko / pachislot business
Establishing a fabless company model in the pachinko / pachislot industry

Licensing

Planning

Sales
company
periodPresent

Fabless
model

Development

Production

MakersFieldsMakersMakersFieldsSales

FieldsFields began as a sales company with a small scaleof operations and considerable risks associatedwith its reliance on makers.

FieldsFields strengthened its position relative to makers
by expanding in the licensing and planningdomains.

FieldsAs a fabless company, Fields reduced reliance on
makers by branching into the development of
displays for machines.

Reliance on makers further declined as Fields steadily enlarged its business domains■As a fabless maker in the pachinko / pachislot industry, Fields is developing displays for machines. By enlarging business domains through this approach, Fields is confident that it
can minimize risk associated with reliance on makers.

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

15

Increase of sales by expansion of business domains
Added value supplied to date

Added value we intend to provide
Image
Image

Licensing Planning

Development
of displays

Developmentof otherdevices

Production

Sales

Total

Licensing Planning

Development
of displays

Developmentof otherdevices

Production

Sales

Total

Aiming to make planning and display development into another core profit center alongside sales■By supplying content in recent years, Fields has been gaining expertise in evaluating, planning and other aspects of the business. As one way to use this knowledge, the company
has decided to start a business with the goal of supplying entire units. Many companies generate profits by supplying units, including Daikoku Denki and Eizo Nanao. Furthermore,these companies have extremely consistent earnings. Fields plans to develop the planning and display development business into a core profit center alongside its amusement
machine sales business.
Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

16

Strategy to increase market share in amusement machine sales
Further increase of market share by pursuing current strategy
Increasing sales force

Expansion of product supply lines

5

Bisty line

500
400

Rodeo
line

300

Pachinko line exclusive
for Sammy, Fields

The company is planning
to increase dealing in goods and brands
in an alliance with Olympia.

2002.3

2004.3200
100
02001.3

2002.3

2003.3

2004.32005.30
2001.32006.3

2003.32005.32006.320.0%

Market share by volume
15.0%

10.0%

5.0%

0.0%
2001.3

2002.3

2003.3

2004.32005.32006.3

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

17

Content integrator model
Broadening scope of content business

Content life cycle and provisionMarket development

Payback
CreationContent
The company has influencein these channels
It plans to spread toother channels

Books
Goods
Games

EventsPachinko
Pachislot

TV

Internet

Cellular phones
MoviesFields believes the content business has three stages. First is
the creation of the content. Second is the market
development stage that boosts value. And third is thepayback stage when investments in content are recovered.

CD / DVD

Fields will create content and utilize it in many ways while
taking into consideration life spheres and the three stages of
the content life cycle.

Providing channels

Home
Work
Life spheres

How can individuals most enjoy their leisure? Exactly what
is leisure? Fields is constantly monitoring changes in life
styles from this perspective in order to develop an effective
marketing approach.

LeisureAim to offer the greatest leisure for all people■Fields manages content to promote its model for success. At the same time, Fields is working on gaining influence over the channels that provide content. By establishing thisbusiness model, Fields intends to offer the greatest leisure for all people.

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

18

Realization of the business model through alliances
Japanese companies in the content business, including two
partners
Content life cycle

Content creation

Market development

Alliances with companies that share thesame ambitions

Payback

CellularphonesInternet
Publishing

Kadokawa
Haruki
Corporation

One company alone cannot easily cover all categories of
the immense content business. This is why Fields forges
alliances with companies in the content business thatshare the same ambitions. In this manner, Fields aims toestablish an “integrator model” in the expansive
content business.

CD / DVD
Providing channels

Games
Pachinko
Pachislot
TV
MoviesEventsKadokawa
Haruki
Corporation

Icons for alliance partners

Athletic
gyms：Kadokawa Haruki
Corporation

Goods：FEG Inc.

Aim to provide enjoyable content in all spheres of human activity■Fields believes that the enjoyment of interesting content is one means to enhance leisure time.
To provide such content, Fields will collaborate with companies that share the same ambitions.

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

19

Fields group : Business expansion to U.S. and Europe
Worldwide business expansion– Development of content provider business■Fields will acquire the copyrights to popular characters, plan the use of these charactersin machines, and develop machine monitors. It will sell these machines throughastute marketing.

■January 2005 Establishment of “D3DB S.r.l.”, joint enterprise in Europe

Game software

Copyrights■November 2004 Establishment of “D3Publisher of America. Inc.”, subsidiary in U.S.

Game software
Copyrights

Gaining copyrights

Gaining copyrights

Close connection by
conversion of D3Publisher
into a consolidated subsidiary■Make content provider business even more competitive■Create a content development infrastructure centered on producers, creators and other contributors in local
markets.
■Build a distribution system with deep regional roots.
■Enter the enormous markets for home game software in Europe and US on a full scale.
■Aggressively acquire content in Europe and US

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

20

Appendix

Copyright 2005 FIELDS CORPORATION All rights reserved.

21

Distribution model / Agency model
Distribution model

Agency model

Nationwide pachinko halls（Player）

Nationwide pachinko halls（Player）

Payment
collection

Payment
collection

Independent
sales agent
Payment ofcommission

Payment ofcommission

Transfer ofpayment
Delivery of machines（Maker → Direct delivery tohalls）

Our company

Payment
collection

subagent

Sales

Transfer ofpayment
Delivery of machines（Maker → Direct delivery tohalls）

Our company（As agent）

Commission
from maker

Purchase

Pachislot machines makers（Rodeo, Bisty, etc.）

Transfer ofpayment

Pachinko, and other amusement
machines makers■Distribution model : Pachislot sales of Rodeo, Bisty, and Olympia■Agency model : All pachinko makers, Some pachislot makers※Sales addition : Shipping basis※Sales addition : Normally adding sales up by payment collection and payment to maker 1monthafter of delivery※Distribution model : Sales price = Net sales（Examples）
 Distribution
model

November

December※Agency model : Commission = Net sales（ Examples）
November
DecemberJanuary＝Sales addition

Pachislot A▲Delivery■ Agency
model

January＝Sales addition

Pachinko A▲Delivery

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

22

Financial highlights, FY1998-2004
Key financial data （: ¥thousands）

Net sales

1999.3

2000.3

2001.3

2002.3

2003.3(Consolidated)2004.3 (Consolidated)2005.3 (Consolidated)

11,811,500

10,017,585

11,496,060

34,560,468

61,888,832

66,211,589

81,658,011

Operating income

138,791

768,876

1,700,893

5,730,688

6,781,196

11,866,578

12,097,224

Ordinary income

107,358

726,910

1,681,106

5,664,866

7,022,048

12,209,509

12,480,571

Net income

34,842

262,168

583,0813,041,486

3,524,372

6,620,253

6,926,791

Paid-in capital

10,00010,000116,000

530,500

1,295,500

1,295,500

7,948,036

Shareholders’ equity

23,938286,107

1,069,803

3,883,201

8,752,797

14,507,820

33,426,273
72,584,547

Total assets

5,388,131

6,199,947

6,211,821

18,631,438

17,090,435

37,115,839

Cash Flows from Operating activities－－

1,105,738

4,525,559

3,316,128

851,192

2,965,857

Cash Flows from Investing activities－－

269,440△ 724,077△ 2,253,217△ 3,190,193△5,257,154

Cash Flows from Financial activities－－△ 920,780

2,004,198△ 2,454,804

2,029,999

10,177,881

Cash and cash equivalents at end of the period－－

1,414,660

6,857,525

5,739,061

5,437,758

13,326,256

2003.3(Consolidated)2004.3 (Consolidated)2005.3 (Consolidated)

268,600

89,30596,026

10,00024,000・Memorial 10,000
・Interim 10,000
・Full year 4,000

4,000・Interim 2,000・Full year 2,000

117,233

40,46519,888

2003.3(Consolidated)2004.3 (Consolidated)2005.3 (Consolidated)

Indicators per share（Unit : JPY）
Shareholders’ equity per share

1999.3

Management indicators（Unit : %）2001.3

2002.31,430,535

461,122－－

15,0001,325,324
Old shares 100,000

Annual dividend per share（non-consolidated）
Net income per share2000.3

119,690

174,2111999.3

Shareholders’ equity ratio
Return on equity
Dividend as percentage of shareholders’ equity(non-consolidated）

1,310,844
2000.3New shares

27,398

2nd new shares

548

2,075,024
2001.3

1,275,256
2002.3

0.4

4.6

17.2

20.8

51.2

39.1

46.0

534.6

169.1

86.0

122.8

55.9

56.9

28.9

－

－

6.0

7.8

7.9

*20.1

20.7

*Dividend as percentage of shareholders’ equity in 2004.3 is calculated including memorial dividend

Others1999.3

2000.3

2001.3

2002.3

Total outstanding shares

200

200

2,320

Employees (persons)

166

210

319
・October, 2002

Source : Fields

2,930
323
10-for-1 stock split

2003.3(Consolidated)2004.3 (Consolidated)2005.3 (Consolidated)

32,300161,500

347,000

460
・November, 2003

651
5-for-1 stock split

758

・September, 2004

2-for-1 stock split

・Consolidated from 2003.3

Copyright 2005 FIELDS CORPORATION All rights reserved.

23

References

Copyright 2005 FIELDS CORPORATION All rights reserved.

24

Whole pachinko market

Year ending March 2006
Pachinko / Pachislot market forecast and plans to deal with themarketⅠ
Forecast for pachinko machines■Since the pachinko market peaked in 1995, the key theme has been to build a structure in whichhigher spending per user offsets the decline in the number of pachinko fans.

■2004 revisions to regulations were designed to facilitate the development of many types of■Macroeconomic trend: Dispersion of needs due to maturing of the environment for entertainment■Elimination of previous categorization and easing of restrictions on machine structurespoints to greater freedom in developing machines.

■Microeconomic trend: Revisions to regulations in 1995 limited freedom to develop new products,
greatly reducing the variety of machines■2004 revisions to regulations greatly raised the freedom to develop new models based on thepremise of holding gambling elements within certain limits.

game machines that remained within proper limits concerning gambling elements.

■Based on past trends, there is a big increase in the number of machines sold in the two years
after the easing of government regulations (or NIKKOSO rules).
■Regulations were revised in 1995, 1999, 2002, and this time ; these revisions are expected to
produce sales volume that exceeds the number of machines now in use.

■An environment in which the use of innovative technology like LCDs and image processing can beused to attract not only pachinko fans, but also a broad range of other individuals■Following the 2004 revision, there was a constant stream of new models using large LCDs,
high-grade images and famous characters.

■The number of pachinko balls is declining, but the number of machines per location is rising,leading to growth in the number of large pachinko halls■The previous new model development progression was “specs>hardware>content”; fromnow on, “content>hardware>specs.
■An environment in which the consensus and enthusiastic support of the entire industry is
possible with regard to gambling characteristics of machines

Forecast for pachislot machines

Number of pachinko fans
■Looking ahead, the pachinko industry requires the ability to “preserve the current market scale byachieving a recovery in the population of fans while holding down the amount spent per
customer.”■In 2003, when the number of pachinko fans hit bottom, Fields launched “Project 45” for the
purpose of increasing the number of fans. This was to be accomplished by targeting a broad
spectrum of needs of many kinds of people against a backdrop of Japan’s maturing entertainment
business climate.
■Pachinko fans were accustomed to passive entertainment machines with look-alike designs (Ocean).
But they became more interested in pachinko due to the introduction of machines with major
characters and story lines made possible by models that take advantage of new regulations.
■In recent years, the number of young pachinko fans has been growing due to a decline in thegambling aspects of machines and to advances in imaging hardware and software. This growth islikely to continue for the foreseeable future.

■Since the reinterpretation of the 1998 regulations, machines have been allowed to makegreater use of technology. The result is the emergence of machines that permit players to winlarge numbers of balls. Approval to use video, audio and other sub-controls is leading to theincorporation of LCDs, AT functions and other new features, attracting a broad spectrum offans.
■2004 revisions placed restrictions on functions that permit players to win large numbers ofballs, AT functions and other features that had driven growth of the pachislot market.
■As of April 2005, no models conformed to the standards of the Security Electronics andCommunications Technology Association. For the time being, only machines that havealready been approved under the previous regulations can be sold.
■The industry is anticipating the appearance of machines that comply with new regulations
over the next few years.

■Looking ahead, Fields must focus not only on developing amusement machines, but on adopting adiverse approach that includes developing spaces, services and other items that can cater to a broad
range of people.
Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

25

Trend of pachinko makers

Year ending March 2006
Pachinko / Pachislot market forecasts and plans to deal with themarket Ⅱ
Strategy of Fields■Since the appearance of machines conforming to new regulations, there has been a big shift in salesof amusement machines to highly competitive models incorporating large LCDs, outstanding
picture quality and famous characters.
■SANKYO group: Developed products that radically altered the image of pachinko machines: CRF
Dai-Yamato (SANKYO) and CR Neon Genesis Evangelion (Bisty). Increased panel size by 30%
compared with conventional models. Incorporated 10.4-inch LCD, the industry’s largest. State-ofthe-art chips and image processing technology.
→ Excels not only in the number of units sold, but also by contributing to pachinko halls’
productivity and earnings.
■The focus of competition among makers is certain to be larger LCDs, higher resolution images andthe use of highly appealing characters.

■Making pachinko halls a place for entertainment
・Create new kinds of entertainment spaces by proposing ideas for multifaceted facilities centered onpachinko halls■Develop new models that use large LCDs and use characters that are at the peak of their
popularity
・Aim to offer content that takes advantage of larger LCDs as technological skills grow. Further
refine Fields’ character evaluation system to select and acquire characters that will generate themost fans.
・Create plans that take full advantage of the appeal of characters and heighten development
capabilities.

■In conjunction with changes in regulations, shift emphasis of new product developmentfrom gambling to gaming.
・Advances in chip compression technology are increasing game capabilities. Aim to plan anddevelop new models with performance on a par with character-based home video games, andstrengthen skills in developing new technologies.

Trend of pachislot makers■Market needs will remain centered on machines for old regulations for the time being even if
machines conforming to new regulations are introduced.
■Machines conforming to old regulations can be sold and used until June 2007. The point now iswhether machines can be supplied with the proper balance to meet upcoming demand frompachinko halls to replace these old machines.
■There is a need to launch machines conforming to new regulations that emphasize entertainment
smoothly while continuing to make use of old-regulation machines.

■Conduct promotions that increase the number of fans.
・Highly appealing characters can attract large numbers of new fans.
・Makers can use characters to develop new machines, and pachinko halls can use the characters intheir advertising and marketing activities.
・Make a broad range of people aware of these advances, and broaden the base of fans

■The Yoshimune mdel, which has a large market share (estimated 230,000 units), and the Hokutono-Ken model (estimated 600,000 units) will reach the end of their certification periods in July 2006
and October 2006, respectively, meaning they will have to be replaced.

→Increase business opportunities by using “Project 45”* to conduct educational activities targetingmakers, sales agencies and pachinko halls.

■Fields will take full advantage of its position as a distributor and controller to coordinate theinterests of different makers to see that the right machines are introduced at the right times.

*“Project 45”: A core project started by Fields in 2003 that targets the entire pachinko/pachislot
industry. The aim is to raise the population of pachinko users from the current 20 million to half ofthe total number of potential users in Japan, which is about 90 million.

Source : Fields

Copyright 2005 FIELDS CORPORATION All rights reserved.

26

Market scale of core businesses
Japanese market for Pachinko machines

Japanese market for amusement machines
Market value (hundred million yen）

Market value (hundred million yen）
4,200,000
6,707
5,684 5,691 5,615
3,935,063
4,000,000
5,184
3,716,599
3,686,677
3,368,839
3,230,489
3,128,054
3,174,079
2,847,838 3,623

Y2003

11,962

Pachinko：6,707 hundred million
Pachislot：5,255 hundred million

2,358,321

Sum：11,962 hundred million

9,581
Unit sales of Pachinko machines

8,830
7,876

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

4,359,056

Japanese market for Pachislot machines423,993525,866
350,596
1995

1996

1997

3,146

4,060,759

Unit sales of amusement machines

3,966

1,842,392
1,656,000
1,501,894
1,600,000
1,290,719
1,134,341
775,019 932,705
2,353

1,828

2,693

3,513

5,800,000
5,656,000
5,529,069
4,675,973
4,521,208
4,503,180

3,373,704
3,133,340

5,255
Market value（hundred million yen）

5,977

4,067,195

9,205

Unit sales of Pachislot machines
1998

1999

2000

2001

2002

2003

2004

2005

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Source : “Trend and market share of Pachinko related makers 2004” Yano Research Institute, Estimation by Fields after 2004

Copyright 2005 FIELDS CORPORATION All rights reserved.

27