Summary(Translation)

FIELDS CORPORATION
Summary of Financial Information and Consolidated Business Results
for the First Quarter of the Year Ending March 31, 2021 (Japan GAAP)
August 6, 2020
Listed on: TSE 1st
Company Name:
Stock code:
Representative Director:
Inquiries:
Tel:

FIELDS CORPORATION(URL: https://www.fields.biz/ir/e/)
2767
Hidetoshi Yamamoto
Chairman, President and Group CEO
Hideaki Hatanaka
Corporate Officer; General Manager, Business Management Department+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 7, 2020―
No
No
(Rounded down to the nearest million)

1. Consolidated business results for the first quarter of the year ending March 31, 2021 (April 1, 2020 to June 30, 2020)(1) Consolidated operating results (cumulative total)(Percentage figures denote YoY changes)
Net salesFirst quarter, year ending
March 31, 2021
First quarter, year ended
March 31, 2020
(Note) Comprehensive income

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

2,341

(87.8)(2,403)－(2,383)－(2,910)―19,164

114.6

(599)

－

(546)

－

(607)

―

First quarter of the year ending March 31, 2021: ¥ (2,979) million (―%)
First quarter of the year ended March 31, 2020: ¥ (940) million (―%)

Profit per shareFirst quarter, year ending
March 31, 2021
First quarter, year ended
March 31, 2020

Diluted profit per share
Yen

Yen

(87.71)―(18.31)―(2) Consolidated financial position
Total assets

Net assets

Shareholders’ equity ratio

Millions of yen

Millions of yen%

First quarter, year ending
March 31, 2021

51,65530,968

59.2

Year ended March 31, 2020

64,31734,27952.6(Reference) Shareholders’ equity

First quarter of the year ending March 31, 2021: ¥ 30,567 million
Year ended March 31, 2020: ¥33,801 million

2. Dividends
Q1-endYear ended March 31, 2020
Year ending March 31, 2021
Year ending March 31, 2021

Annual dividends
Q3-endQ2-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

－
－

0.00

－

10.00

10.00

－

－

－

－

(Forecast)(Note) Revision of the most recently released dividend forecasts: No
We have yet to decide the dividend forecast for the year ending March 31, 2021.

3. Forecast of consolidated earnings for the fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021)
With regard to forecast of consolidated earnings, the Company will not disclose the forecast at this time, and will continue to collectrationale for calculations while assessing the impact of coronavirus disease (COVID-19), with the aim of disclosing them when it
becomes possible to disclose reasonable forecasts.

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 policies, accounting estimates, and revisions/restatements
1) Changes in account policies due to the revision to the accounting standards, etc.: No
2) Changes in accounting policies 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 shares)
1) Number of shares issued at end of year (including treasury shares)
First quarter of the year ending March 31, 2021
34,700,000 sharesYear ended March 31, 2020
34,700,000 shares
2) Number of shares of treasury shares at end of year
First quarter of the year ending March 31, 2021
1,516,300 sharesYear ended March 31, 2020
1,516,300 shares
3) Average number of shares outstanding (quarterly consolidated cumulative period)First quarter of the year ending March 31, 2021
33,183,700 sharesFirst quarter of the year ended March 31, 2020
33,183,700 shares* Summary of Financial Information and Consolidated Business Results are not subject to certified public accountants or audit
corporation.
* Explanation of the appropriate usage of forecast earnings and other specific matters# With regard to forecast of consolidated earnings for the FY2020, the Company will not disclose the forecast at this time, and willcontinue to collect rationale for calculations while assessing the impact of coronavirus disease (COVID-19), with the aim of
disclosing them when it becomes possible to disclose reasonable forecasts.

Summary of Financial Information and Consolidated Business Results for the First Quarter of the Year Ending March 31, 2021

Table of contents of Attached Document
1. Qualitative information on the quarterly financial resultsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(1) Analysis of operating results and consolidated earnings forecasts .......................................................................2(2) Analysis of financial position...............................................................................................................................3
2. Quarterly consolidated balance sheets and important notes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4(1) Quarterly consolidated balance sheets .................................................................................................................4(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income................6(3) Quarterly consolidated statements of cash flows .................................................................................................8(4) Note regarding the quarterly consolidated financial statements ...........................................................................9(Note regarding the operation of the company as a going concern) ...................................................................... 9(Note regarding occurrence of significant change in amount of shareholders’ equity) .......................................... 9(Application of the accounting method specific to quarterly consolidated financial statements) .......................... 91

Summary of Financial Information and Consolidated Business Results for the First Quarter of the Year Ending March 31, 2021

1. Qualitative information on the quarterly financial results(1) Analysis of operating results and consolidated earnings forecastsi.) Overview of the Q1 of the current fiscal year (April to June 2020)
In pachinko/pachislot markets, at the request of the prefectural government in accordance with the government’s declarationof emergency situation, pachinko halls in various areas of the country suspended operations, and the purchase of new machines
was refrained. Since the termination of the emergency declaration, however, pachinko halls have resumed operations while
thoroughly implementing measures to prevent infections, and their operation and purchase intentions have tended to recover toprevious levels. In addition, as the deadline for removal of the old regulation machines, which had been set at the end ofJanuary 2021, was extended for 1 year, we expect steady and planned replacement demand for pachinko halls.
Under these circumstances, in our pachinko/pachislot sales business, we have changed the delivery date for merchandise such
as BLACK LAGOON4, which was scheduled to be delivered in the Q1 to the Q2 or later, taking into account the demand of themarketplace.
At present, we have begun sales of BLACK LAGOON4, Pachislot for CHAR AZNABLE -RED COMET’s Counterattack and
PACHISLOT Ring-ni-kakero1 -World champion carnival version in pashislot machine and NEON GENESIS EVANGELION
Decisive Battle -Crimson- in pachinko machine. In addition, we are also developing titles for the current term and making
model certification test applications as planned.
We launched sales of merchandise for the prevention of infectious diseases in order to contribute to safe sales of pachinkohalls by leveraging our strengths as a distributor. At the same time, we will continue to promote the use of pachinko/pachislot
information stations and provide online advertising services and other services. In online advertising services, we collaborated
with RAKSUL INC., which is involved in the sharing platform business for printing and customer attraction, and launched
Optimize, a new advertising distribution platform.
Tsuburaya Productions Co., Ltd. is working in the image field with partner companies to study new content distribution
services in Japan and overseas in order to respond to rising consumption from staying at home. In the publication field, aheadof the publication of THE RISE OF ULTRAMAN, a collaborative work with Marvel Entertainment, LLC, new information has
been successively released worldwide, and expectation of fans are growing.
Digital Frontier Inc. has built a telework-based development system and continued to respond to the need for CG-related
video production from domestic game companies and others. In addition, utilizing the company’s visual production
technologies, the company, NIKKATSU CORPORATION and AOI TYO Holdings Co., Ltd. established VIRTUAL LINESTUDIOS CORPORATION. By combining the strengths of each company, it will provide a solution that replicateshigh-quality CG images at all locations around the world while staying in a studio.
As a result, consolidated results for the Q1 were as follows: net sales ¥2,341 million (down 87.8% YoY); operating loss
¥2,403 million (¥599 million in Q1 FY2019); ordinary loss ¥2,383 million (¥546 million in Q1 FY2019); and net loss
attributable to owners of parent ¥2,910 million (¥607 million in Q1 FY2019).

ii.) Explanation of consolidated earnings forecasts and other forward-looking statements
We intend to continue collecting reasonable rationales while assessing the effects of the spread of coronavirus disease
infection, as reported in the March 2020 Report, released on May 15, 2020, and to release the forecast promptly as soon as it
becomes possible to disclose reasonable predictions.

(Note) Merchandise names in this report are the trademarks or registered trademarks of each company.

2

Summary of Financial Information and Consolidated Business Results for the First Quarter of the Year Ending March 31, 2021

(2) Analysis of financial position(Assets)
Current assets decreased by ¥12,736 million from the end of the previous fiscal year to ¥37,844 million. This was mainly
due to a decrease in trade receivables.
Property, plant and equipment decreased by ¥54 million from the end of the previous fiscal year to ¥4,680 million. This was
mainly due to a reduction in tools, furniture and fixtures.
Intangible assets decreased by ¥37 million from the end of the previous fiscal year to ¥2,955 million. This was mainly due
to a reduction in goodwill.
Investments and other assets increased by ¥165 million from the end of the previous fiscal year to ¥6,174 million. The main
factor was an increase in investments in capital and leasehold deposits.
As a consequence, assets decreased by ¥12,661 million from the end of the previous fiscal year to ¥51,655 million.
(Liabilities)
Current liabilities decreased by ¥8,301 million from the end of the previous fiscal year to ¥9,695 million. This was mainly
attributable to a decrease in trade payables.
Non-current liabilities decreased by ¥1,048 million from the end of the previous fiscal year to ¥10,992 million. This was
mainly due to a reduction in long-term borrowings.
As a consequence, liabilities decreased by ¥9,350 million from the end of the previous fiscal year to ¥20,687 million.
(Net assets)
Net assets decreased by ¥3,311 million from the end of the previous fiscal year to ¥30,968 million. This was mainly due toa reduction in retained earnings.
(Analysis of cash flows)
Cash and cash equivalents (hereinafter, “cash”) at the end of the first quarter of the current fiscal year decreased by ¥1,802
million from the end of the previous fiscal year to ¥22,922 million.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥256 million (¥4,234 million revenue for same period of the previous fiscal
year). The main factors were a loss before income taxes of ¥2,950 million, a decrease in trade receivables of ¥13,576 million,a decrease in trade payables of ¥7,691 million, an increase in inventories of ¥1,376 million, and an increase/decrease in
consumption taxes receivable/payable of ¥901 million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥404 million (¥1,083 million expenditure for the same period of the previous fiscal
year). The main factors were a ¥175 million in payments for investments in capital and a ¥126 million in purchase ofnon-current assets.
(Cash flows from financing activities)
Net cash used in financing activities was ¥1,654 million (¥2,226 million expenditure for the same period of the previous
fiscal year). The main factors were repayments of long-term borrowings of ¥1,332 million and cash dividends paid of ¥320
million.

3

Summary of Financial Information and Consolidated Business Results for the First Quarter of the Year Ending March 31, 2021

2. Quarterly consolidated balance sheets and important notes(1) Quarterly consolidated balance sheets(Unit: Millions of yen)Previous fiscal year
(as of March 31, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Electronically recorded monetary claims-operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts

Q1of current fiscal year
(as of June 30, 2020)

24,825
14,171
1,087
446
4,852
2,574
2,652
(29)

23,022
1,741
747
1,672
5,290
2,282
3,103
(16)

50,58037,844

1,644

1,644

Other

3,090

3,036

Total property, plant and equipment

4,734

4,680

Intangible assets
Goodwill
Other intansible assets

2,156
836

2,081
873

Total intangible assets

Total current assets
Non-current assets
Property, plant and equipment
Land

2,992

2,955

Investments and other assets
Investment securities
Long-term loans receivable
Other
Allowance for doubtful accounts

1,325
373
4,682
(373)

1,358
377
4,811
(373)

Total investments and other assets

6,008

6,174

13,736

13,81064,31751,655

9,336
200
5,329
127
251
14
2,736

1,652
200
4,829
53
129

Total current liabilities

17,996

9,695

Non-current liabilities
Long-term borrowings
Retirement benefit liability
Asset retirement obligations
Other

7,691
674
889
2,784

6,858
691
916
2,525

Total non-current liabilities

12,04010,99230,037

20,687

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors
Other

Total liabilities

4

－
2,830

Summary of Financial Information and Consolidated Business Results for the First Quarter of the Year Ending March 31, 2021

(Unit: Millions of yen)Previous fiscal year
(as of March 31, 2020)
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

Q1of current fiscal year
(as of June 30, 2020)

7,948
7,579
20,060(1,821)

7,948
7,579
16,818(1,821)

33,76730,525

10
0
22

18
0
22

34

41

477

401

34,27930,96864,31751,655

Summary of Financial Information and Consolidated Business Results for the First Quarter of the Year Ending March 31, 2021

(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, 2020
(Unit: Millions of yen)
Q1 of previous fiscal year
(April 1, 2019 to June 30, 2019)

Q1 of current fiscal year
(April 1, 2020 to June 30, 2020)

Net sales
Cost of sales

19,164
16,365

2,341
2,000

Gross profit

2,798

340

Selling, general and administrative expenses

3,397

2,744

Operating profit (loss)(599)(2,403)

10
75
－
－
31

1
1
2
22
23

117

52

17
16
16
13

26
0

64

32

(546)

(2,383)

16

－

16

－

0
22

1
1
562

Non-operating income
Interest income
Dividend income
Purchase discounts
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary profit (loss)
Loss on retirement of non-current assets
Loss on litigation
Loss from coronavirus disease (COVID-19)
Other

－
1

－
5

－

Total extraordinary losses

24

566

Profit (loss) before income taxes(554)(2,950)

Income taxes

39

38

Profit (loss)(594)(2,988)

13

(77)

(607)

(2,910)

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

6Summary of Financial Information and Consolidated Business Results for the First Quarter of the Year Ending March 31, 2021

Quarterly consolidated statements of comprehensive income
First quarter of the year ending March 31, 2020
(Unit: Millions of yen)
Q1 of previous fiscal year
(April 1, 2019 to June 30, 2019)

Q1 of current fiscal year
(April 1, 2020 to June 30, 2020)(594)(2,988)

(347)
0
0

8
0
0

(346)

8

Comprehensive income(940)(2,979)Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests(954)(2,902)

13(76)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income

7Summary of Financial Information and Consolidated Business Results for the First Quarter of the Year Ending March 31, 2021

(3) Quarterly consolidated statements of cash flows(Unit: Millions of yen)
Q1 of previous fiscal year
(April 1, 2019 to June 30, 2019)

Q1 of fiscal year under review(April 1, 2020 to June 30, 2020)

(554)
401
139

(2,950)
193
74

5

(13)

(119)

(122)

(10)

(14)

9
(86)

16
(3)

16

(22)

17
891
(192)

26
13,576(1,376)

(45)

(60)

3,493

(7,691)

380

(901)

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors
Increase (decrease) in retirement benefit liability
Interest and dividend income
Share of loss (profit) of entities accounted for using
equity method
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in advance payments formerchandise rights
Increase (decrease) in trade payables
Increase (decrease) in consumption taxes
receivable/payable
Other, net

(73)

(340)

Subtotal

4,274

388

Interest and dividends received
Interest paid
Income taxes (paid) refund

86
(17)
(109)

3
(26)
(108)

Net cash provided by (used in) operating activities

4,234

256

(896)
47
(96)
200
29
(172)

(60)
0
(65)
－
4
(175)

1

－

－
7
(202)

(38)
8
(77)

(1,083)(404)

Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Other, net(1,496)
250
(651)
(322)
(5)

－
－
(1,332)(320)(1)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(2,226)(1,654)

(0)

(0)

923

(1,802)

Cash and cash equivalents at beginning of period

28,807

24,725

Cash and cash equivalents at end of period

29,731

22,922

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from redemption of investment securities
Proceeds from sales of investment securities
Payments for investments in capital
Proceeds from sales of shares of subsidiaries andassociates
Loan advances
Collection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

8Summary of Financial Information and Consolidated Business Results for the First Quarter of the Year Ending March 31, 2021

(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)
Calculation of tax expenses
Tax expenses are calculated by multiplying profit before income taxes by a reasonably estimated effective tax rate after theapplication of tax effect accounting to profit before income taxes for the fiscal year, including the Q1 of the fiscal year underreview.

9