Summary(Translation)

FIELDS CORPORATION
Summary of Financial Information and Business Results (Consolidated)
for the First Quarter of the Year Ending March 31, 2018 (Japan GAAP)
July 31, 2017
Listed on: TSE 1st
Company Name:
Stock code:
Representative Director:
Inquiries:
Tel:

FIELDS CORPORATION(URL: http://www.fields.biz/)2767
Tetsuya Shigematsu, President & COO
Hideaki Hatanaka, Corporate Officer and General Manager, Corporate Communications Office+81-3-5784-2111

Planned date for submission of the quarterly report:
Planned date for start of dividend payment:
Quarterly earnings supplementary explanatory materials:
Quarterly earnings presentation:

August 8, 2017―
Yes
Yes (For institutional investors and security analysts)(Rounded down to the nearest million)

1. Consolidated business results for the first quarter of the year ending March 31, 2018 (April 1, 2017 to June 30, 2017)(1) Operating results (cumulative total)(Percentage figures denote YoY changes)
Net salesFirst quarter, year
ending March 31, 2018
First quarter, year
ended March 31, 2017
(Note) Comprehensive income

Operating income

Net income attributableto owners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

12,446(18.6)(2,902)―(3,055)―(2,752)―

15,295(10.8)(2,997)―(3,241)―(2,340)―First quarter of the year ending March 31, 2018: ¥ (2,398) million (―%)
First quarter of the year ended March 31, 2017: ¥ (2,652) million (―%)
Net income per shareFirst quarter, year
ending March 31, 2018
First quarter, year
ended March 31, 2017

Yen

Diluted net income per share
Yen(82.96)―(70.53)―(2) Financial position
Total assets

Net assets

Shareholders’ equity ratio

Millions of yen

Millions of yen%

First quarter, year
ending March 31, 2018

70,03739,99955.7

Year ended March 31, 201780,39743,22752.5(Reference) Shareholders’ equity

First quarter of the year ending March 31, 2018: ¥ 38,982 million
Year ended March 31, 2017: ¥ 42,225 million

2. Dividends

Year ended March 31, 2017
Year ending March 31, 2018Year ending March 31, 2018

First
quarter-end
Yen――(Forecast)Secondquarter-end
Yen
25.00

Annual dividends
Thirdquarter-end
Yen
―

25.00

―

Year-end

Annual

Yen
25.00

Yen
50.00

25.00

50.00

(Note) Revision of the most recently released dividend forecasts: No
3. Forecast of consolidated earnings for the fiscal year ending March 31, 2018 (April 1, 2017 to March 31, 2018)
Net sales

Operating income

Ordinary income(Percentage figures denote YoY changes)
Net income attributable
Net income
per share
to owners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
1,000―
0―0―
0―
82,000― 7.0――――
Full-year
10.9
2,000
2,000
1,000
30.14
85,000(Note) Revision of the most recently released performance forecasts: No
FIELDS CORPORATION discloses a full-year business forecast, as it manages its business performance on an annual basis.
Millions of yen

1*Notes(1) Transfer of important subsidiaries during the year under review (Transfer of specific subsidiaries that results in a change in thescope of consolidation): No(2) Application of the accounting method specific to quarterly consolidated financial statements: Yes(3) Changes in accounting principles, accounting procedures, presentation method and other factors
1) Changes due to the revision to the accounting standards, etc.: No
2) Changes due to any reason other than those in 1) above: No
3) Changes in accounting estimates: No4) Revisions/restatements: No(4) Number of shares issued (common stock)1) Number of shares issued at end of year (including treasury stock)
First quarter of the year ending March 31, 201834,700,000 sharesYear ended March 31, 201734,700,000 shares
2) Number of shares of treasury stock at end of year
First quarter of the year ending March 31, 2018
1,516,300 sharesYear ended March 31, 2017
1,516,300 shares
3) Average number of shares outstanding (quarterly consolidated cumulative period)First quarter of the year ending March 31, 201833,183,700 sharesFirst quarter of the year ended March 31, 201733,183,744 shares* This quarterly earnings report is not subject to review procedures based upon the Financial Instruments and Exchange Act.
* Explanation of the appropriate usage of forecast earnings and other specific matters# The above forecast relies on judgments and assumptions based on information available as of the date of announcement of thismaterial, and is subject to changes in risks, uncertainties, and economy, and other factors that could cause actual results to bematerially different from expectations. Please refer to“(3) Summary of forecasts for consolidated earnings and others” under“1. Qualitative information on quarterly financial results” on page 4 of the attached documents for the assumptions on which theforecast relies.
# The Company is planning to hold a results briefing for analysts and institutional investors on Tuesday, August 1, 2017.
Materials distributed at that briefing will be posted on the Company’s website after the briefing as soon as possible.

Summary of Financial Information and Business Results for the First Quarter of the Year Ending March 31, 2018

Table of contents of Attached Document

1. Qualitative information on the quarterly financial results···································································· 2(1) Analysis of operating results ................................................................................................................................2(2) Analysis of financial position...............................................................................................................................3(3) Summary of forecasts for consolidated earnings and others ................................................................................4
2. Quarterly consolidated balance sheets and important notes ································································· 5(1) Quarterly consolidated balance sheets .................................................................................................................5(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income................7(3) Quarterly consolidated statements of cash flows .................................................................................................9(4) Note regarding the quarterly consolidated financial statements .........................................................................10(Note regarding the operation of the company as a going concern) .................................................................... 10(Note regarding occurrence of significant change in amount of shareholders’ equity) ........................................ 10(Application of the accounting method specific to quarterly consolidated financial statements) ........................ 101

Summary of Financial Information and Business Results for the First Quarter of the Year Ending March 31, 2018

1. Qualitative information on the quarterly financial results(1) Analysis of operating results[Overview of operations for the three months ended June 30, 2017 (April 1, 2017 to June 30, 2017)]
The FIELDS CORPORATION Group has set out a corporate philosophy, “The Greatest Leisure for All People.” To achieve
this goal, the Group makes an effort to plan, develop, and provide products and services that will enrich the hearts of people of
the world, aimed at realizing sustainable growth. Under its medium- to long-term growth strategy, the Group carries out acyclical business in which it develops intellectual property (IP), such as characters and stories that are the bases ofentertainment, across multimedia formats, including comics, visuals, games and pachinko/pachislot machines.
The Group has announced a three-year Medium-Term Management Plan starting in the current business year. During thecurrent business year, the Group is concentrating on business activities focusing on improvement of earnings strength for the
medium-term. The Group is also working on rebuilding its business value chain, including thoroughly strengthening theCompany’s DNA, that is, its planning and production capabilities with an eye to the past and future of the market. In addition,
the Group is also promoting efforts to evolve a business model aimed at maximizing its earnings from both an IP perspective
and business platform perspective.
The Group’s main business activities during the first quarter under review are as follows.
In the pachinko/pachislot business, despite mounting feelings of uncertainty with respect to the market for pachinko/pachislot
machines due to impacts of the recent succession of regulations, the announcement by the National Police Agency on July 11,2017 for the “Draft Regulation Partially Amending the Ordinance for Enforcement of the Act on Control and Improvement of
Amusement Business, etc. and the Regulations for the Verification of Licenses, Formats and Other Aspects of Pachinko andPachislot Machines” has given cause for manufacturers to make a fresh start in the planning and development ofpachinko/pachislot machines that are all about being easier to play.
Amid such circumstances, the Group views this regulatory amendment as a favorable opportunity, and in addition to putting
effort into reviewing and expanding its lineup, the Group has further strengthened its planning and production for
pachinko/pachislot machines in the next period and later. The Group also promoted various measures for strengthening its
distribution infrastructure, including expanding partnerships with manufacturers.
In the visual field of the cross-media business, in addition to developing animation, such as TV broadcasts of 2 titles,
including reboot works appearing in “HERO’s Monthly,” the Group also promoted the planning and production of several
visual works, including the latest work in the “Ultraman Series.” Furthermore, in the license field, the Group sought to increase
IP value and diversify revenue, by offering up works adapted for film to the social games and so on of other companies. The
Group has also promoted measures designed for the commercialization of its IP holdings, such as promoting global licensing
expansion of its original games and e-books.
In terms of developing and strengthening its management foundation, the Group proceeded with rebuilding an effective
system of governance. This included changing the term of office for directors to one year. The Group also promoted a variety
of measures aimed at further stabilizing its financial footing, such as utilization of idle assets and improvement of cost
efficiencies.
The consolidated operating results for the first quarter under review are as follows.
The Company posted net sales of ¥12,446 million (down 18.6% YoY). The main factor was that sales of pachinko/pachislot
machines were kept to a total of 27,000 machines (down 9,000 YoY), comprised of 14,000 pachinko machines (including
additional orders for the highly-rated “Pachinko GANTZ,” which was released in the last fiscal year) and 12,000 pachislot
machines (5 new machines were released).
The Company posted an operating loss of ¥2,902 million (compared to an operating loss of ¥2,997 million for the same
period of the previous year). Despite total sales of pachinko/pachislot machines falling below the same period of the previous
year as mentioned above, ongoing effort for improvements in management efficiency resulted in a decrease in SG&A expenses,
which has led to the operating loss remaining on par with same period of the previous year.
The Company posted an ordinary loss of ¥3,055 million (compared to an ordinary loss of ¥3,241 million for the same periodof the previous year).
The Company posted a net loss attributable to owners of parent for the period of ¥2,752 million (compared to a net loss
attributable to owners of parent of ¥2,340 million for the same period of the previous year), in part due to recording gains on
the sale of tangible fixed assets.
The results described above are in line with the initial plan, and the full-year earnings forecast remains unchanged.
(Note 1) Please refer to “Quarterly Earnings Supplementary Explanatory Materials for the First Quarter of the Year Ending March 31, 2018” forthe initiatives for individual IPs.
(Note 2) The product names included in this report are the trademarks or registered trademarks of the respective companies.

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Summary of Financial Information and Business Results for the First Quarter of the Year Ending March 31, 2018

(2) Analysis of financial position(Assets)
Current assets amounted to ¥41,621 million, down ¥4,235 million from the end of the previous fiscal year. The principal
factor behind this was a decrease in notes and accounts receivable—trade.
Tangible fixed assets amounted to ¥5,625 million, down ¥4,740 million from the end of the previous fiscal year. The
principal factor behind this was a decrease in land.
Intangible fixed assets amounted to ¥2,231 million, down ¥238 million from the end of the previous fiscal year.
Investments and other assets amounted to ¥20,558 million, down ¥1,146 million from the end of the previous fiscal year.
This was mainly due to a decrease in investment securities.
As a result of the above, total assets amounted to ¥70,037 million, down ¥10,360 million from the end of the previous fiscal
year.
(Liabilities)
Current liabilities amounted to ¥13,956 million, down ¥6,519 million from the end of the previous fiscal year. The principal
factor behind this was a decrease in notes and accounts payable—trade.
Fixed liabilities amounted to ¥16,081 million, down ¥612 million from the end of the previous fiscal year.
As a result of the above, total liabilities amounted to ¥30,038 million, up ¥7,131 million from the end of the previous fiscal
year.
(Net assets)
Net assets amounted to ¥39,999 million, down ¥3,228 million from the end of the previous fiscal year. This primarilyreflected a decrease in retained earnings.
(Analysis of cash flows)
During the first quarter of the fiscal year under review, cash and cash equivalents (hereinafter referred to as “cash”)
increased by ¥4,479 million from the end of the previous fiscal year, amounting to ¥27,570 million.
(Cash flows from operating activities)
Net cash used in operating activities amounted to ¥915 million (¥4,808 million of expenditure for the same period of theprevious fiscal year). This was mainly due to a loss before income taxes and minority interests of ¥2,668 million, an decreasein notes and accounts payable—trade of ¥7,571 million, a decrease in notes and accounts receivable—trade of ¥8,942 million
and an increase in inventories of ¥476 million.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥4,995 million (¥247 million of expenditure for the same period of theprevious fiscal year). This was mainly due to proceeds from repayments of loans totaling ¥588 million, expenditure for loans
totaling ¥2,350 million, proceeds from the sale of fixed assets totaling ¥5,254 million, and proceeds from the sale of shares inaffiliates totaling ¥2,201 million.
(Cash flows from financing activities)
Net cash provided by financing activities amounted to ¥397 million (¥3,521 million of expenditure for the same period of
the previous fiscal year). This was mainly attributable to proceeds from short-term borrowings totaling ¥1,856 million,
repayment of long-term borrowings totaling ¥650 million, and dividends paid totaling ¥802 million.

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Summary of Financial Information and Business Results for the First Quarter of the Year Ending March 31, 2018(3) Summary of forecasts for consolidated earnings and others(Unit: Millions of yen)

Net sales
Operating income

Forecast for the year
ending March 31,
2018
82,000–85,000
1,000–2,000

Results for the year
ended March 31,
201776,668(5,374)

Ordinary income

0–2,000(9,068)Net income attributable to owners of parent

0–1,000(12,483)

YoY
7.0%–10.9% increase―――

The consolidated earnings forecasts for the year ending March 31, 2018 remain unchanged from those stated in the“Summary of Financial Information and Business Results (Consolidated) for the Year Ended March 31, 2017,” released on
May 9, 2017, as mentioned in “(1) Analysis of operating results” above.

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Summary of Financial Information and Business Results for the First Quarter of the Year Ending March 31, 2018

2. Quarterly consolidated balance sheets and important notes(1) Quarterly consolidated balance sheets(Unit: Millions of yen)Three months ended
June 30, 2017(as of June 30, 2017)

Fiscal year ended
March 31, 2017(as of March 31, 2017)
AssetsCurrent assets
Cash and cash equivalents

23,19027,670Notes and accounts receivable—trade

12,727

5,217

Electronically recorded monetary claims—operating

2,108

1,294

Merchandise and products

650

131

Work in process

686

1,480

Raw materials and supplies

87

88

Other current assets

6,478

5,810

Allowance for doubtful accounts

(73)

(71)

45,856

41,621

Land

7,206

2,257

Other tangible fixed assets

3,159

3,368

Total tangible fixed assets

10,366

5,625

1,007

926

Total current assets
Fixed assets
Tangible fixed assets

Intangible fixed assets
Goodwill
Other intangible fixed assets

1,461

1,305

Total intangible fixed assets

2,469

2,231

Investment securities

8,223

6,402

Long-term loans
Other assets

8,156

9,538

5,469

4,762

Allowance for doubtful accounts

(144)

(144)

Total investments and other assets

21,70520,55834,54028,41680,39770,037

Notes and accounts payable—trade

12,792

4,875

Short-term borrowings
Current portion of long-term borrowings

281

2,137

2,600

2,600

Investments and other assets

Total fixed assets
Total assets
Liabilities
Current liabilities

Accrued income taxes
Accrued bonuses

126

52

357

167

Accrued bonuses to directors and auditors—

25

Reserve for returned goods unsold

22

22

4,295

4,075

20,475

13,956

12,607

11,957615

628

Other fixed liabilities

3,471

3,495

Total fixed liabilities

16,69416,081

Total liabilities

37,17030,038Other current liabilities
Total current liabilities
Fixed liabilities
Long-term borrowings
Net defined benefit liability5Summary of Financial Information and Business Results for the First Quarter of the Year Ending March 31, 2018

(Unit: Millions of yen)Three months ended
June 30, 2017(as of June 30, 2017)

Fiscal year ended
March 31, 2017(as of March 31, 2017)
Net assets
Shareholders’ equity
Common stock

7,948

7,948

Capital surplus

7,994

7,994

Retained earnings

30,03526,452

Treasury stock(1,821)(1,821)

Total shareholders’ equity

44,156

40,573(1,836)(1,508)Foreign currency translation adjustment

00Remeasurements of defined benefit plans

(94)

(83)

(1,930)(1,590)Non-controlling interest

1,002

1,016

Total net assets

43,22739,99980,39770,037

Accumulated other comprehensive income
Unrealized holding gain on available-for-sale securities

Total accumulated other comprehensive income

Total liabilities and net assets

6Summary of Financial Information and Business Results for the First Quarter of the Year Ending March 31, 2018

(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income
Quarterly consolidated statements of income
First quarter of the year ending March 31, 2018
Three months ended
June 30, 2016
(April 1, 2016–June 30, 2016)(Unit: Millions of yen)Three months ended
June 30, 2017
(April 1, 2017–June 30, 2017)

Net sales

15,295

12,446

Cost of sales

12,807

10,484Gross profit

2,487

1,961

Selling, general and administrative expenses

5,485

4,864

ሺ2,997)

ሺ2,902)

Interest income

22

29

Dividend income

74

74

Discounts on purchases

95

67

Others

77

76

Total non-operating income

269

248

8

20

Equity method investment loss

410

305

Amortization of equity investment

34

69

Others60

6Total non-operating expenses

513

400

ሺ3,241)

ሺ3,055)Gain on sale of fixed assets

4555

Others—0

Total extraordinary income

4555

Provision for loss on liquidation of subsidiaries and associates

320—

Loss on discontinuation of production

20

58

Loss on litigation charges

28

106

Others173

Total extraordinary losses

385

168

Income (loss) before income taxes and non-controlling interests

ሺ3,622)

ሺ2,668)

Income taxes

ሺ1,251)70

Net income (loss)

ሺ2,370)ሺ2,739)ሺ30)

13(2,340)(2,752)

Operating income (loss)
Non-operating income

Non-operating expenses
Interest expenses

Ordinary income (loss)
Extraordinary income

Extraordinary losses

Net income (loss) attributable to non-controlling interests
Net income (loss) attributable to owners of parent

7

Summary of Financial Information and Business Results for the First Quarter of the Year Ending March 31, 2018

Quarterly consolidated statements of comprehensive income
First quarter of the year ending March 31, 2018

Net income (loss)

Three months ended
June 30, 2016
(April 1, 2016–June 30, 2016)(Unit: Millions of yen)Three months ended
June 30, 2017
(April 1, 2017–June 30, 2017)

ሺ2,370)ሺ2,739)

ሺ292)

329

1

0

Other comprehensive income
Unrealized holding gain on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, before tax
Total other comprehensive income
Comprehensive income

9

11

ሺ281)

340

ሺ2,652)

ሺ2,398)

ሺ2,622)

ሺ2,413)

ሺ29)

14(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

8

Summary of Financial Information and Business Results for the First Quarter of the Year Ending March 31, 2018(3) Quarterly consolidated statements of cash flows(Unit: Millions of yen)Three months ended
Three months ended
June 30, 2016
June 30, 2017
(April 1, 2016–June 30, 2016) (April 1, 2017–June 30, 2017)
Cash flows from operating activitiesሺ3,622)

ሺ2,668)Depreciation and amortization

507

324

Amortization of goodwill

80

81

Increase (decrease) in allowance for doubtful accounts

ሺ1)

ሺ2)

Increase (decrease) in accrued bonuses

ሺ196)

ሺ190)

Increase (decrease) in accrued bonuses to directors and auditors

ሺ146)

25

35

24

Interest and dividend income

ሺ96)

ሺ103)

Equity method investment loss (gain)

410

305

8

20

Decrease (increase) in notes and accounts receivable—trade

4,786

8,942

Decrease (increase) in inventories

ሺ797)

ሺ476)

Decrease (increase) in merchandising right advances

ሺ393)

68

Income (loss) before income taxes and minority interests

Increase (decrease) in net defined benefit liability

Interest expense

ሺ5,672)

ሺ7,571)Others921

812

Subtotal

ሺ4,177)

ሺ407)

111

119

Increase (decrease) in notes and accounts payable—trade

Interest and dividends received
Interest paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities

ሺ8)

ሺ20)

ሺ733)

ሺ607)

ሺ4,808)

ሺ915)

ሺ149)

ሺ428)

54

5,254

ሺ29)

ሺ117)

Cash flows from investing activities
Purchases of tangible fixed assets
Proceeds from sale of tangible fixed assets
Purchases of intangible fixed assets
Expenditure for acquiring shares in affiliates

—

ሺ10)

Proceeds from sales of shares of subsidiaries and associates

—

2,201

ሺ1,528)

ሺ2,350)

Expenditure for loans
Collection of loans receivable

2,117

588

Others

ሺ714)

ሺ142)

Cash flows from investing activities

ሺ247)

4,995

ሺ2,459)

1,856

ሺ3)

ሺ650)

ሺ805)

ሺ802)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of long-term borrowings
Dividends paid

ሺ252)

ሺ5)

ሺ3,521)

397

ሺ23)

1

Increase (decrease) in cash and cash equivalents

ሺ8,601)

4,479

Cash and cash equivalents at beginning of the year

32,20023,090Cash and cash equivalents at end of period

23,59827,570

OthersNet cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

9Summary of Financial Information and Business Results for the First Quarter of the Year Ending March 31, 2018(4) Note regarding the quarterly consolidated financial statements(Note regarding the operation of the company as a going concern)
No relevant items(Note regarding occurrence of significant change in amount of shareholders’ equity)
No relevant items(Application of the accounting method specific to quarterly consolidated financial statements)
Assessment of tax expenses
The Company makes a reasonable estimate of the effective tax rate after the application of tax effect accounting on income
before income taxes for the year ending March 31, 2018, including the three months ended June 30, 2017, and calculates tax
expenses by multiplying income before income taxes during the three months ended June 30, 2017 by the estimated effective
tax rate.

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