Financial results for the fiscal year ended March 31, 2022

Medium-term management plan (FY2022 - FY2024)

Briefing materials

FIELDS CORPORATIONTokyo Stock Exchange, Prime Market
Security code: 2767
May 11, 2022

Copyright 2022 FIELDS CORPORATION All rights reserved.

1

Consolidated financial results
for the fiscal year ended March 31, 2022

Copyright 2022 FIELDS CORPORATION All rights reserved.

2

FY2021 [Consolidated P/L]
(Unit: billions of yen)

FY2020Consolidated P/L

Net sales

FY2021

Full year
(A)

Q1

H2

Q1-Q3

Full year(B)Change (B-A)

YoY

Earnings
forecast(As of March 22)

38.79

22.93

37.34

72.53

94.90

+56.1

-

Gross profit

9.92

3.37

6.12

11.37

15.78

+5.85

-

SG&A expenses

12.16

3.00

5.77

9.00

12.33

+0.17

-

Operating profit(2.24)

0.37

0.35

2.36

3.44

+5.68

3.24

Ordinary profit(2.03)

0.55

0.59

2.59

3.63

+5.66

3.43

Profit attributableto owners of parent(3.45)

0.33

0.31

1.78

2.47

+5.92

2.37

Cash dividends

10 yen20 yen-26.2%

Dividend payout ratio* Changes in accounting policies: the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and other standards from thebeginning of the first quarter of the current fiscal year.
* Amounts less than ¥10 million have been omitted.

Copyright 2022 FIELDS CORPORATION All rights reserved.

3

FY2021 [P/L by business segment](Unit: billions of yen)P/L by business segment

Contents and digital businesses

Tsuburaya Productions（TPC）

FY2020

FY2021YoY(Change)

Operating profit

0.45

1.46+1.01

Ordinary profit

0.44

1.46+1.02

Net profit

0.18

1.06

+0.88Operating profit

0.37

1.27+0.90

Ordinary profit

0.37

1.25+0.88

Net profit

0.16

0.92+0.76

Operating profit(3.53)

1.75+5.28

Ordinary profit(3.89)

1.88+5.77

Net profit(4.53)

1.70

+6.23

PS business・Delivered 13 titles, a total of 191,000 units

PS business-Six pachinko titles 140,000 units-Seven pachislot titles 51,000 units* Changes in accounting policies: the Company has applied the “Accounting Standard for Revenue Recognition# (ASBJ Statement No. 29, March 31, 2020) and other standards fromthe beginning of the first quarter of the current fiscal year.
* The results of Contents and digital and PS businesses are calculated by considering the elimination of intra-group transactions from the simple sum of the figures within therespective businesses.
* Amounts less than ¥10 million have been omitted.

Copyright 2022 FIELDS CORPORATION All rights reserved.

4

FY2021 [Trends in TPC’s MD license revenues](Unit: millions of yen)
FY2020

FY2021

YoY change

Strong domestic and overseas MD sales
Domestic MD and license revenue

713

1,386

+94.2%

Overseas MD and license revenue

959

2,087+117.5%

China524

1,547+195.3%

Total MD and license revenue

1,673

3,473

+107.6%

Imaging business revenue

1,011

1,429+41.4%

・Significant growth in China in particular* Amounts less than ¥1 million have been omitted.

Copyright 2022 FIELDS CORPORATION All rights reserved.

5

FY2021 [Consolidated B/S and C/F]
(Unit: billions of yen)

Consolidated B/S

FY2020

FY2021

ChangeCurrent assets

39.14

56.78

+17.63

Non-current assets

13.22

13.30

+0.09

52.37

70.08

+17.71

Current liabilities

10.89

27.95

+17.05Intangible assets

11.03

10.58

(0.44)

Total liabilities

21.92

38.53

+16.61

Total net assets

30.44

31.55

+1.10

Total liabilities and net assets

52.37

70.08

+17.71

Total assets

Consolidated C/F

FY2020

FY2021

ChangeCash flows from operating activities

3.69

7.98

+4.28

Cash flows from investing activities(1.07)(1.58)(0.51)Cash flows from financing activities(2.83)

1.38

+4.22

Net increase (decrease) in cash and cash equivalents(0.21)

7.77

+7.99

Cash and cash equivalents at beginning of year

24.72

24.51

(0.21)-0.01(0.01)

24.51

32.30

+7.79

Cash and cash Equivalents of newly consolidated
Subsidiaries
Cash and cash equivalents at end of year

* Changes in accounting policies: the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and other standards
from the beginning of the first quarter of the current fiscal year.
* Amounts less than ¥10 million have been omitted.

Copyright 2022 FIELDS CORPORATION All rights reserved.

6

FY2022 [Outlook for the next fiscal year](Unit: billions of yen)

FY2021
Consolidated results
Net sales

FY2022 E

Full year

Full year

YoY change

94.90

98.00

+3.3%

TPC・Video revenue: ¥2.2 billion expected

Operating profit

3.44

4.00

+16.1%

Consolidated

・MD license revenue: ¥5 billion expected
PS business

Ordinary profit
Profit attributableto owners of parent

3.63+10.1%-Seven pachinko titles-Eight pachislot titles

2.47
FY2021
Full year

By business segment

4.00

3.00

+21.4%

Total 220,000 units expected

FY2022 E
Full year
YoY change

Contents and digital business

Operating profit

1.46

2.00

+36.3%

PS business

Operating profit

1.752.50+42.8%* Changes in accounting policies: the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and other standards
from the beginning of the first quarter of the current fiscal year.
* The results of Contents and digital and PS businesses are calculated by considering the elimination of intra-group transactions from the simple sum of the figures within therespective businesses.
* Amounts less than ¥10 million have been omitted.

Copyright 2022 FIELDS CORPORATION All rights reserved.

7

Medium-term Management Plan
FY2022 - FY2024

Copyright 2022 FIELDS CORPORATION All rights reserved.

8Management reform from FY2018 and future management

Optimizing groupmanagement
・Selection and concentration of groupmanagement
・Strengthening the product and technologicalcapabilities of group companies
・Implementing continuous cost reduction
measures

Strengthening business
infrastructure
Restructuring business domains

Creating new corporate value
・Moving to a holding company structure
・Promoting active and innovative businesses
by group companies based on the mid-termplan

・Shifting to “IP × digital” companies
・Building solid infrastructure for stable PS
business in the mature market
・Formulation and promotion of new strategies
based on the above

Optimizing groupmanagement

Formulation of newstrategies

FY2018FY2021

Reforming cost structure

Growth StageFY2022 - FY2024
Maximizing corporate value
Period of the new mid-term plan

Copyright 2022 FIELDS CORPORATION All rights reserved.

9Basic framework of the mid-term management strategy
Corporate
Philosophy

Growthcapability

Earning
capability

Future areas“The Greatest Leisure for All People”
Contents and digitalbusiness

PS businessAccelerating growth globally
・Further growth in China and other Asian regions
・Exploring North American markets
・Development of digital domain businesses

Targeting 30% sales market share as a distributor
・Unit titles/year × Quality (copyright, etc.) = Sales units
・Develop digital communications business

IP × Digital

TPC ×DF (Digital Frontier)

Copyright 2022 FIELDS CORPORATION All rights reserved.

10Group organizational restructuring
Promoting enhancement of shareholder value through double pillars
of growth and earnings capabilities
Holding company
structure(As of October 3, 2022)

Content and digital business
Tsuburaya Productions which is
responsible for dynamic
promotion of growth capability

Growth capability

Strategic investments andbusiness alliances
Maximization of the group’s
corporate value

PS businessPlay a central role forprofitability
FIELDS CORPORATION

Earning capability
Copyright 2022 FIELDS CORPORATION All rights reserved.

11

Medium-term Management Plan (FY2022 – FY2024)

Contents and digital business
Tsuburaya Productions
Digital Frontier

Copyright 2022 FIELDS CORPORATION All rights reserved.

12

History of TPC since joining the FIELDS group■ Full-scale business in North America

7,000■ Release of SHIN ULTRAMAN■ New mid-term plan
6,000

■ Start subscription service(Tsuburaya Imagination)[Net Sales (billions of yen)]
5.0
5,000

■ COVID-19 pandemic■ Full-scale operation in China

4,000■ U.S. lawsuit■ Complete suit
(Winning Judgment)■ Tsuburaya basic strategy announced

3,000■ Invitation of Mr. Tsukagoshi to top management
2.5■ Revival of TV series

2,000■ Heros Ultraman Netflix distribution■ Heros Ultraman series launched□ Season 1 distribution■ Great East Japan Earthquake

1,000□ Season 2 distribution□ Scheduled season 3distribution■ Resolving excess liabilities■ Management reform■ Becoming a subsidiary0(FY)201020112012201320142015201620172018

2019

2020

2021

2022

2023

2024

Copyright 2022 FIELDS CORPORATION All rights reserved.

13

TPC’s IP business with growth opportunities in the global content market
Change in scale of domestic contents in overseas market
Publications
Smartphone/PC online game
Consumer game
Anime (including video and merchandising rights)
TVMovie (live-action)(Unit: billions of yen)
2,144.6
2,032.3

Trends in content market size in three major countries(Unit: trillions of yen)

United States 49.6

1,760.2
1,690.9
1,412.4
1,231.0
867.2

907.6

China 20.7

716.1Japan 12.02012201320142015

2016

2017201820192020 (Year)2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Year)*Source: Market Data Base on Japanese and Worldwide Media × Content Vol.15 (flash report) 2022 by HUMANMEDIA INC

Copyright 2022 FIELDS CORPORATION All rights reserved.

14

TPC’s revenue model

Domestic

Overseas

Domestic MD license

Overseas MD license

MDMD licensebusinessA

Toy Apparel Food etc.

B
China

Asia
(7 regions)North
America
OthersLicenseAdvertising Digital etc.

Imagingbusiness
Digital domain
business

Movie box office

Metaverse NFT

Distribution etc.

etc.

CD

Copyright 2022 FIELDS CORPORATION All rights reserved.

15

Major sources of revenue in the contents and digital businessNet sales 9.1 billion yen

MD licensing business (domestic and overseas)
Sales composition ratio 36%
Revenue from IP commercialization rights licensing (toys, foods, apparel, publishing,advertising use, etc.)

Net sales 7.1 billion yen

MD licensebusiness(overseas)

MD licensebusiness(domestic)
Imagingbusiness

Digital domain
business

Others

FY2020

FY2021

Imaging business
Sales composition ratio 10%
Revenue from investments in the production of IP and video licensing(film box office, program sales, distribution licenses, video gram sales, event box office, etc.)

Digital domain business
Sales composition ratio 46%
Revenue from new services and content production, and licensing in the digital area
utilizing IP*Includes DF sales

Copyright 2022 FIELDS CORPORATION All rights reserved.

16

A. MD licensing business (domestic)
As a result of strengthening IP planning and expanding exposure,domestic MD license sales have been firm in recent years
Growth is expected mainly in the family segment by continuing to strengthen the expansion of Ultraman exposure
Broadcasting area expansion

Strengthening exposure in owned media

Strengthening tie-up promotions

Strengthening store (retail) measures

FY2020 - FY2024

Annual growth rates

35%©TSUBURAYA PRODUCTIONS

Copyright 2022 FIELDS CORPORATION All rights reserved.

17

B. MD licensing business (China)
Further strengthening MD licensing, which accounts for approximately 80% of sales in China
Continuous exposure and increased awareness of the works has created a virtuous cycle leading to an increase in fans and licensees

Cycle of strong business in China

Expansion of licensees

Continued exposure of the works

120Approx.
billiontimes or more in total
Delivered about 60 titles to a total of 10companies, including four major distribution
platforms

UPMarketingstrategy

50companies/ year

YoY change in new licensees
UP 50 companies(FIELDS estimate)

FY2020 - FY2024

Annual growth rates

55%

Copyright 2022 FIELDS CORPORATION All rights reserved.

18B. MD licensing business (other Asian regions)
As a result of strengthening SNS,the popularity of Ultraman in Asian areas other than China is expanding
Creating influential touch-point by multi-lingual video support and strengthening marketing➥ Further support for licensees and expand

YouTube Ultraman
Official channel

North and SouthAmerica and Others
Approx. 460,000

Japan
Approx. 500,000(Approx. 24%)

(Approx. 22%)

Channel registrant

2,130,000

Channel registrant(Apr. 2022)

500,000(Jan. 2019)

Development phase

Asian region
Approx. 1,140,000(Approx. 54%)
Indonesia
Malaysia
ThailandSingapore
VietnamTaiwanHong Kong©TSUBURAYA PRODUCTIONS

Copyright 2022 FIELDS CORPORATION All rights reserved.

19

B. MD licensing business (North America)
The 2018 U.S. lawsuit winning ruling (finalized in 2020) triggered an opportunity to enter the market
Efforts to develop the North American market

Preparatory periodFoundation

Leap forward

building phase

Building a global business network
・Acquisition of licensees
・Expansion of media partners
・Strengthening owned media

・U.S. lawsuit(winning ruling)
FY2018
2019

Increasing sales inNorth Americanmarket

・Announced production of Netflix (ILM production) ULTRAMAN―･ Global distribution from North America
・Owned media Ultraman Connection
・Ultraman of Marvel Comics version―･ Winning ruling finalized2020

2021

2022

2023

2024

2025

2026

2027Throughout the period of this plan, we will build a full-fledged foundation for
cultivating the North American market.
Copyright 2022 FIELDS CORPORATION All rights reserved.

20

C. Imaging products business

Strategically strengthening Ultraman into a global brand
Japan origin(Investment in production)

US origin (license)

Kids/ Family

Kids/ Family

Japan and other Asianmarkets

North Americanmarket

New generation

Global anime

In recent years, the evaluation of titles has
been rising, driving force behind growth indomestic MD and license markets

High-quality animations (Netflix) produced byILM, a Lucas Film’s affiliated company

Young adult

Young adult

Under development
Series/ Films

Film/ Series
ULTRAMAN records the most viewed Netflix
animations from JapanSHIN ULTRAMAN to be released on May 13, 2022

Planning for Hollywood
studio-class production teams©TSUBURAYA PRODUCTIONS

Copyright 2022 FIELDS CORPORATION All rights reserved.

21

C. Imaging products business
Ultraman and other lineup plans (main titles)
FY2022

FY2023Distribution
MD development

Films originatedYoung adult(all target)

Japan originatedseries
NETFLIX

FY2024FY2025

Movie(planned)

FY2026

Distribution
MD development

FY2027

Movie(planned)

FY2028Distribution
MD development

MD development

MD development

US originatedanime series

MD development

NETFLIX
Kids/ Family
New generation

YoungWorks other thanUltraman→GRIDMANnew theatrical edition←TOEI ANIMATION co-production
KAIJU DECODE©TSUBURAYA PRODUCTIONS

Copyright 2022 FIELDS CORPORATION All rights reserved.

22

D. Digital domain
Initiatives in the digital domain business

TPC × DF
Integration of IP, technology, know-how, customers, etc.

Futurechallenges

Businessdevelopment
topics■Providing services on metaverse■Sales and in-service use of NFT items■Integrated Digital & Real attraction

Alreadychallengedand done

Videoviewing
NTT DOCOMO XR World(Examples of initiatives)

Online events

Linked to corporate
campaigns

ECTicket tracking

TSUBURAYA customers data
©TSUBURAYA PRODUCTIONS

Copyright 2022 FIELDS CORPORATION All rights reserved.

23

D. Potential of DF

Market and customer expansion

・Leading domestic CG and VFX video technology group, highly trusted
by major game companies and movie and distribution companies
・Developing new businesses by expanding digital assets and video development technologies

Metaverse
NFT, etc.
New markets・Digital human-based remote customer service
・Supplying of digital assets such as avatars and items in metaverse
・Space development service, etc. in metaverse

Video development capabilities
with outstanding CG and VFX technologies

Digital assets and technologies
・Digital human・Virtual production
・AI

Sophistication of products and technologies
Copyright 2022 FIELDS CORPORATION All rights reserved.

24

Setting targets for content and digital business in the mid-term plan
Targeting operating profit of ¥3 billion in FY2024 (CAGR of 60%)
Operating profit (results/ targets)(Unit: billions of yen)

Annual growth rates 60%

3*Base point FY2020/ FY2020-2024

0.45(Unit: billions of yen)

Operating profit

FY2020

FY2021

FY2022

FY2023

FY2024

0.45

1.46

2.00

2.50

3.00
Copyright 2022 FIELDS CORPORATION All rights reserved.

25

Medium-term management plan (FY2022 – FY2024)

PS business
FIELDS CORPORATION

Copyright 2022 FIELDS CORPORATION All rights reserved.

26

Market environment[Forecast of future changes in the PS markets]

Sales of new machines
market scale

Summer* FY2027-662.1 billion yen

Spring*(1,826,000 units)

FY2023Pachislot
Approx. 242.3
billion yen(665,000 units)

Pachinko
Approx. 419.7
billion yen(1,161,000 units)

FY2021

FY2022

Inbound demand
due to the opening of IR⇒ Positive impact on the PS industry

Expectations for revitalization of themarket through full-scale launch ofsmart pachinko and pachislot

Beginning of new market
under new regulations⇒ Stable development environmentis expected for 10 years*PS four season theory will be explained in the next page.
*Our survey

Copyright 2022 FIELDS CORPORATION All rights reserved.

27Market environment[four seasons theory based on the cycle of regulatory revisions]
The cyclical change of the pachislot market is often compared to seasonal change
1992 Revision of regulations(Regulation 4 machine era)
WinterSpring2004 revision of regulations(Regulation 5 machine era)
SummerMarket unit sales of pachislot

2

Unit sales of pachislot per title

百(million units)

AutumnWinterSpring2018 revision of regulations(Regulation 6 machine era)
SummerAutumnWinterSpringSummer(10 thousands units)

6.0
5.0

1.5

・Regulation 6.5 machine appeared
・Smart pachislot appeared

1

4.0

3.0
2.0

0.51.00
FY1992

0.0
FY1995

FY1998FY2001

Fiscal 2004

FY 2007

FY2010FY2013

FY2016FY2019FY2022

FY2025*Our survey

Copyright 2022 FIELDS CORPORATION All rights reserved.

28

PS business [future titles of our sales]<Evaluation of our sold titles based on sales results (units)>▶Enforcement of▶ COVID-19 pandemic ▶Introduction of regulation 6.5 machine / smart PS
revision of regulations
FY

Pachinko

2017

2018

2019

2020

2021

95,000units
2 titles

103,000
units
5 titles

136,000
units
7 titles

51,000units
3 titles

140,000
units
6 titles2022 E2023 E2024 E2025 E2026 E

7 titlesNumber ofmanufacturers

Valuation standards(million units)
S: 50,000 above
A: 30,000 above
B: 20,000 above
C: 9,000 above
D: 5,000 above
E: less than 5,000

Expansion of the number ofpartner manufacturers

×
Number of titles
95,000units
13 titles

34,000units
11 titles

54,000units
6 titles

45,000units
8 titles

51,000units
7 titlesTo secure a stable number of titles-×
Quality

8 titlesPachislot

Valuation standards(million units)
S: 30,000 above
A: 20,000 above
B: 10,000 above
C: 5,000 above
D: 3,000 above
E: less than 3,000Autumn

Leading IP contents titles

WinterSpring

SummerCopyright 2022 FIELDS CORPORATION All rights reserved.

29

Digital communications business to support the PS machine industry
Supporting for all types of communications revitalizationin the PS industry with digital technologies, etc.

Manufacturer➡ Developing into a growing business

HallFans

Existing services

Media for halls

Media for fans

Registered accounts: 10,000 (actual)➡ 22,000 (target)

MAU: over 220,000 (actual)➡ 1,240,000 (target)

Web advertising distribution service
to help pachinko halls attract customers

Installation and inspection services
Contacts for parts replacement
Number of deals closed: over 2,000 (actual)➡ over 4,000 (target)

New services

Media for PS operators from August 2022

PS machine secondary
distribution promotion site
for revitalizing the PS market

Copyright 2022 FIELDS CORPORATION All rights reserved.

30

PS business [Target]
Operating profit (results/targets)(Unit: billions of yen)

4.5

(3.53)(Unit: billions of yen)

FY2020

FY2021

FY2022

FY2023

FY2024

Operating profit(3.53)

1.75

2.50

3.00

4.50

Unit sales forecast

95,000 units

191,000 units

220,000 units—Copyright 2022 FIELDS CORPORATION All rights reserved.

31

Medium-term management plan (FY2022 – FY2024)

Quantitative target

Copyright 2022 FIELDS CORPORATION All rights reserved.

32

3-year business operation plan

(Unit: billions of yen)Group
consolidation

FY2021 results

FY2022 plan

FY2023 plan

FY2024 plan

Net sales

94.90

98.00

102.00113.00Operating profit

3.44

4.00

5.00

7.00

Copyright 2022 FIELDS CORPORATION All rights reserved.

33

Coming soon!

Copyright 2022 FIELDS CORPORATION All rights reserved.

34