Financial Presentationfor the First Half of the Year Ending March 31, 2019

November 8, 2018
FIELDS CORPORATION Group
FIELDS CORPORATION

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FIELDS CORPORATION All rights reserved.

Summary ofconsolidated results for the H1 of the FY3/2019
and performance forecast

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OverviewMarket environment
Amendment of the Regulation for Enforcement of the Amusement
Businesses Law revised/enforced for the first time in 14 years(Feb. 1, 2018)
Pachinko halls : Strengthening business capabilities

Manufacturers : Proceeding to launch new regulation machines

Players : Expecting for new entertainment aspects for PS

Trend of well-performing new regulation machines
Increasing purchase intention of halls/
Expectation for market revitalization
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OverviewGroup management
New management structure (May 2018)● PS distribution unit/PS development unit/
IP&MD unit/Visual production unit
● Formulated a new growth plan for each unit

Management with optimal cost effectiveness● Cost reduction measures : cut ¥4 billion in full year
Consolidated SG&A (FY3/2018 ¥19 billion ➡FY3/2019E ¥15 billion)
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Overview

Business results for the H1, FY3/2019
Operating profit (loss) ¥-3.9 billion
PS business: Remade PS machines for adaptation for new regulation➡ Mainly sold old regulation/later remodeled machines
pachinko unit sales : 33,000 units + pachislot unit sales : 10,000 units= 43,000 units in total (down 56,000 units YoY)

The other business had little effect on operating profit

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Consolidated P/L (summary)(Unit: Billions of yen)

FY3/2018
H1Net sales

FY3/2019
Full-year

H1

YoY change

YoY change (%)

35.21

61.05

18.04

(17.17)(48.8)

Gross profit

6.94

13.40

3.85

(3.09)(44.5)

SG&A expenses

9.72

19.13

7.75

(1.96)(20.2)

Operating profit(loss)(2.78)(5.73)(3.90)(1.12)-

Ordinary profit(loss)(3.28)(5.20)(4.06)(0.77)-

Profit (loss)
attributable toowners of parent(3.28)(7.69)(3.25)

0.03-* The figures have been rounded down to the nearest million.

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6Consolidated B/S and C/F (summary)(Unit: Billions of yen)

End of Mar. End of Sep.
201820182) Consolidated B/SChangeMain factors for increase/decrease
Decrease in cash and deposits(9.02) Decrease in notes and accounts receivable - trade(3.05)

Current assets

42.17

33.14

(Cash and deposits)
Property, plant and equipment

24.47
5.27

21.41
4.81

Intangible assets

1.38

0.91

Investments and other assets

23.49

22.47

(0.47) Decrease in software(1.02) Decrease in sales of investment securities

72.33

61.34

(10.99)

22.48
14.34
35.50

15.91
12.93
32.49

(6.56) Decrease in notes and accounts payable - trade(1.41) Decrease in long-term loans payable(3.01) Decrease in retained earnings

72.33

61.34

(10.99)FY3/2018
H1
Full-year

FY3/2019
H1

Total assets
Current liabilities
Non-current liabilities
Net assets

Total liabilities and net assets3) Consolidated C/F(0.46) Decrease in buildings and structures
Decrease in goodwill

Factors
Loss before income taxes (3.13)

Cash flows
from operating activities(0.91)(1.09)(4.17) Decrease in notes and accounts payable - trade (6.61)

Cash flows
from investing activities

4.90

4.39

1.65 Proceeds from sales of investment securities +0.52

Cash flows
from financing activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginningof period
Cash and cash equivalents at end ofperiod

Decrease in notes and accounts receivable - trade +3.04
Proceeds from sales of shares of subsidiaries and associates +1.80

Repayments of long-term loans payable (1.29)(0.53) Cash dividends paid (0.16)
Increase in short-term loans payable +0.93(0.41)(2.02)

3.57

1.28(3.05)

23.09

23.09

(24.37)

26.66

24.37

21.31

* The figures have been rounded down to the nearest million.

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Forecast

Launching new regulation machines of major titles
 Implementing a new growth plan in each unit
 Thorough cost reduction measures/results

Q3 (Oct.-Dec.)
 Pachinko 2 titles

Sold as planned

 Pachislot 3 titles

CR ULTIMATE JUDGEMENT

Pachinko Onimusha:
Dawn of Dreams Super Souken

Pachislot LORD of VERMILION Re:

Planned operating profit in Q3: approx. ¥2.5 billion©NANASHOW©CAPCOM CO., LTD. ALL RIGHTS RESERVED．©OK!! Manufactured by KYORAKU SANGYO©2007-2018 SQUARE ENIX CO., LTD. All Rights Reserved. ©NANASHOW

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8Forecast

Q4 (Jan.-Mar. 2019)
Pachinko 7 titles (including 3 Amadigi-type titles), pachislot 3 titles
1. 3 titles : Begun selling
2. 3 titles (including main titles):Preparation
for launch

Passed model certification test
3. 4 titles : Submitted for model certification test

Planned operating profit in Q4: approx. ¥3.5 billion
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9Forecast

Full-year forecast
 PS business

Operating profit ➡ approx. ¥1.5 billion(PS distribution + development) Tsuburaya Productions

Operating profit ➡ approx. ¥0.5 billion

 Other business

Operating profit ➡ approx. ¥0 billion
FY3/2018
Full-year¥2 billion(Unit: billions of yen)

FY3/2019 forecast
Full-year

YoY change

Net sales

61.05

95.00

33.95

Gross profit

13.40

17.00

3.60

SG&A expenses

19.13

15.00

(4.13)

Operating profit (loss)(5.73)

2.00

7.73

Ordinary profit (loss)(5.20)

2.50

7.70

Profit (loss) attributable toowners of parent(7.69)

1.50

9.19* The figures have been rounded down to the nearest million.

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10Mid-term management plan

Business plan for 3 fiscal year from 2018 to 2020
 Formulating a new growth plan for each unit
- Outline1. PS distribution unit : New business strategies
2. IP&MD unit : Tsuburaya Productions’ growth strategies
3. Business plan (operating profit plan) for 3 yearsCopyright 2018

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PS distribution unit
New business strategies

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PS distribution unit
Further strengthening sales capabilities
Contributing to industrial revitalization bysales capabilities × technology × marketing capabilities

New machine selling business + developing/expanding new businessNew business

Newmachine
sellingbusiness1

E-commerce business2Sound distribution business3

Mobile targeting ad

4

PS information distribution platform

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13E-commerce businessOffering appropriate distribution base to transition of used machines(service starts from spring 2019)Market scale ¥143 billion(Unit: Thousands of machine)
5,520

5,680

5,830

New machines selling

5,480
4,910

4,260

4,090

3,880

Complete transfer to regulation 5.0 machine▼
2,310
Regulatory amendment
2,180 2,220
▼
1,830
1,680
1,590
1,540 1,560

3,860

3,820

1,640

1,710

Trade ¥127 billion
Document issuance ¥10 billion
Handing charges¥6 billion
3,450

3,250

1,580 1,600

2,850

1,650

2,430

1,510

2,010

1,530

Used machines selling

2004

UsedUd machineshidistribution(gross(gprofit)p)Other retail sales(gross profit)

2007

2017

FY3/2019

FY3/2020

FY3/2021-¥0.30 billion¥0.60 billion

Transaction unit 50,000 units

Transaction unit 120,000 units¥0.90 billion¥1.20 billion¥0.35 billion

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14E-commerce businessRealizing safe and very secure trading ofused machines
Optimum price
Offer optimum product pricebased on all data

Problem
handling

Nationwide distribution
network

Eliminate loss due to unforeseen
situations to facilitate purchase withpeace-of-mind

Facilitate purchase of optimum property
nationwide without concern about physicaldistance

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Sound distribution business
Improve efficiency of machine installation and parts checking operations suitable formarket environment (starts from Q2 FY3/2019, contracted with 6 companies)
Centralizing installation and parts checking operations
FIELDS-soldFIELDS
ldmachinesA
A-manufactured
fdmachines
B
B-manufactured
fdmachines
CC-manufactured
fdmachines

FIELDSCorp. GroupOperator・New machines installed
Pachinko 330,000
Pachislot 230,000

Approx. 50,000
business transactions annuallyGreater efficiency byconsolidating operations foreach manufacturer

5,200 registeredhandling managers nationwide

Improved security byconsolidating operators

Market scale ¥7-8 billion

Business plan(gross profit)

FY3/2019

FY3/2020

FY3/2021¥0.50 billion¥0.70 billion¥1.00 billion

7 companies 10,000 deals

8 companies 50,000 deals

10 companies 120,000 deals

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Mobile targeting ad
ホール間の中古機移動の適正な流通基盤の提供（2019年春よりサービススタート）
Realizing an Internet advertising
serviceutilizing industry-first advanced technology

Industry-first technology

Scale of pachinko halladvertising market

Safe and secure systems

Ad insert
Approx. ¥30 billion

FIELDS
Major
marketingcompanies

Obtained patent for shop visit
detection technology using location
information (No. 6316353)

Approx. 30 million users can bedetected through advertisingsystem in partnership with major
corporations

FY3/2019
Business plan(gross profit)

Major
mobile phone
carriers

Flyer, promotion goods,
poster, internet ad etc.
Over ¥70 billion

Market scale over ¥100 billion

FY3/2020¥0.30 billion ¥0.50 billion-Introduced to 1,000 halls
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FY3/2021¥0.70 billion
Introduced to 2,500 halls
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PS information distribution platform
PS machine video distribution service supporting new machine installation
Offering products and services needed in halls (coordinated with EC site)

Products contribute tohall management

Cooperate with
2 major media companies

・New machine information
・News in PS industry
・Hall equipment etc.

Distribution equipment

Planned to start from spring 2019
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Summary of new business
Securing and expanding revenue base by new businessBusiness plan(gross profit)

FY3/2019

FY3/2020

FY3/2021

Usedmachine
distribution-¥0.30 billion¥0.60 billion

Other¥0.35 billion¥0.90 billion¥1.20 billion

Sound distributionbusiness¥0.50 billion¥0.70 billion¥1.00 billion

Mobile targetingad¥0.30 billion¥0.50 billion¥0.70 billon

PS information
distribution platform---

New business

ECbusinessTotal gross profit¥1.15 billion+α ¥2.40 billion+α ¥3.50 billion+αCopyright 2018

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IP&MD unit
Tsuburaya Productions’ growth strategies©Tsuburaya Productions Co., Ltd. All rights reserved

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Tsuburaya Productions’ growth strategies

To be a global entertainment company
based on brand strategies
Changing to■ Brand from Character■ TSUBURAYA from ULTRAMAN■ Studio from Production■ Global from Domestic■ Digital from Analog©Tsuburaya Productions Co., Ltd. All rights reserved

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Changing to Brand from Character■ Changing to Brand for people of all ages
from Character for 3 to 6-year-old-boys
Up to dateLMHH

Structure of “Strategy projects”MLLM

HHM

L

FamilyFamilyComprehend alltargets

Young

Young
New gen

New genBaby

Baby

MaleMaleFemale

FemaleFamilyFamilyYoungFamilyNew gen

Young

Young

Young

NewgenNewgenNewgen

Baby

Baby

Baby

Baby
FamilyEnthusiast
Family

Girl

Young

Young

Young

New
gen

New
gen

Newgen

Baby

Baby

Baby

©Tsuburaya Productions Co., Ltd. All rights reserved

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Changing to Brand from Character■ Changing to Brand for people of all ages
from Character for 3 to 6-year-old-boys

Brand
Character (design) / Story (brand promise/worldview)

Works

Products©Tsuburaya Productions Co., Ltd. All rights reserved

Services

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Changing to Brand from Character■ Changing to Brand for people of all ages
from Character for 3 to 6-year-old-boys©Tsuburaya Productions Co., Ltd. All rights reserved

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Changing to TSUBURAYA from ULTRAMAN■3 core brands of IP strategy for the global market<brand><main line up>

1. ULTRAMAN works
ULTRAMAN－1st generation (since 1966)－2nd generation (since 1996)－3rd generation (since 2013)

ULTRAMAN
UNIVERSETSUBURAYA

2. ULTRAMAN UNIVERSE works

3. TSUBURAYA Works©Tsuburaya Productions Co., Ltd. All rights reserved

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Changing to Studio from Production■Changing to IP production studiofrom TV program movie development- Movie development
ULTRAMAN TV series,
special effects video- Planning/producing
existing IP
Novel/ComicGame
Stage show
Digital entertainment
SeriesMovie・・・- Producing new IPs©Tsuburaya Productions Co., Ltd. All rights reserved

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Changing to Global from Domestic■ Overseas expansion- 1st Europe/America
China- 2nd Asia/Australia- 3rd South America/Middle East
- 4th Africa©Tsuburaya Productions Co., Ltd. All rights reserved

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Changing to Digital from Analog■Developing technology foundation
which constantly create a new surprise(“TSUBURAYA IMAGINEERING”)- Applying digital visual effect- Improving entertainment value of stage shows- Developing digital contents©Tsuburaya Productions Co., Ltd. All rights reserved

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Summary

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Summary

Core company
FIELDS and some others

PSdistribution
unit

IP&MD
unit

Core company
BOOOM and some others

PSdevelopment
unit

Videoproduction
unitCore company
Tsuburaya Productions

Core company
Digital Frontier

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Business plan
[Operating profit plan]¥2.0 billion¥6.0 billion¥4.0 billion

FY3/2019

FY3/2020

FY3/2021

Tsuburaya Productions¥0.50 billion¥0.60 billion¥0.70 billion

PS development¥1.00 billion¥1.50 billion¥2.50 billion

PS distribution¥0.50 billion¥2.00 billion¥2.50 billion

Other¥0.00 billion¥0.00 billion¥0.30 billion¥2.00 billion¥4.00 billion+¥6.00 billion+

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Disclaimer

The plans, strategies and estimates of the Company indicated in these documents, other than actual
results and established facts, include potential risks and uncertainties and cannot be guaranteed.
Potential risks and uncertainties include, but are not limited to, the economic environment of the PS
market in which the Company operates, market competition and the products handled by the Company.

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