Summary(Translation)
Fields Corporation
Summary of Financial Information and Business Results (Consolidated)
for the Year Ended March 31, 2012 (Japan GAAP)May 9, 2012
Listed on: OSE [JASDAQ]
Company Name:

Fields Corporation(URL: http://www.fields.biz/)
Stock code:
2767
Representative Director:
Takashi Oya
President and COO
Inquiries:
Hideaki Hatanaka
Executive Officer, General Manager, Corporate Communications OfficeTel:+81-3-5784-2111
June 20, 2012
Planned Date for Ordinary General Meeting of Shareholders:June 21, 2012
Planned Date for Start of Dividend Payment:
June 20, 2012
Planned Date for Submittal of the Financial Statements Report:
Yes
Full year earnings supplementary explanatory materials:
Yes (For institutional investors and security analysts)
Full year earnings presentation:(Rounded down to the nearest million)
1. Consolidated business results for the year ended March 31, 2012 (April 1, 2011, to March 31, 2012)(1) Operating results(Percentage figures denote year-on-year changes.)
Net sales
Operating income
Ordinary income
Million yen%
Million yen%
Million yen%
Year ended
92,195 (11.0)
8,527 (35.1)
8,661 (36.7)
March 31, 2012
Year ended
103,593
56.2
13,136
61.7
13,684
76.3
March 31, 2011
Net income
Net income per share
Diluted net income per share
Million yen
%
Yen
Yen
Year ended
5,991 (20.3)
18,044.65―
March 31, 2012
Year ended
7,520 128.6
22,643.86―
March 31, 2011
(Note) Comprehensive income
Year ended March 31, 2012: ¥6,162 million (-16.5%) Year ended March 31, 2011: ¥7,382 million (105.1%)
Return on equity%

Ordinary income to total assets%

Year ended
12.2
March 31, 2012
Year ended
17.1
March 31, 2011
(Reference) Equity in earnings of affiliates
Year ended March 31, 2012: ¥102 million Year ended March 31, 2011: ¥552 million

Operating margin
%

10.0

9.2

17.1

12.7

(2) Financial position
Total assets

Shareholders’ equity
ratio%

Net assets

Million yen
Million yen
Year ended
93,601
51,555
March 31, 2012
Year ended
78,97147,021March 31, 2011
(Reference) Shareholders’ equity
Year ended March 31, 2012: ¥51,071 million Year ended March 31, 2011: ¥46,779 million

Net assets per share
Yen

54.6

153,904.22

59.2

140,853.00(3) Cash flows

Year ended
March 31, 2012
Year ended
March 31, 2011

Cash and cash equivalents
Cash flow fromfinancing activities
at end of the year
Million yen
Million yen

Cash flow fromoperating activities
Million yen

Cash flow frominvesting activities
Million yen

10,015(4,798)(2,565)18,2848,005(4,356)(3,915)

15,632

2. Dividends

Year ended
March 31, 2011
Year ended
March 31, 2012
Year ending March 31,
2013 (Forecast)First
quarter-end
Yen

Secondquarter-end
Yen

Annual dividends
Thirdquarter-end
Yen―

2,500.00――

Year ended
March 31, 2011
Year ended
March 31, 2012
Year ending March 31,
2013 (Forecast)

AnnualYen

Yen―

2,500.00

5,000.00

2,500.00―

2,500.00

5,000.00

2,500.00―

2,500.00

5,000.00

Million yen%

Dividend on
equity ratio(consolidated)
%

1,660

22.1

3.8

1,659

27.7

3.4

Total dividend(annually)

Year-end

Payout ratio(consolidated)

22.7

3. Forecast earnings for the year ending March 31, 2013 (April 1, 2012, to March 31, 2013)(Percentages denote year-on-year changes versus the corresponding year-earlier period.)
Net income
Net sales
Operating income
Ordinary income
Net income
per share
Million yen% Million yen% Million yen% Million yen%
Yen
Full year
115,000
24.7
14,000
64.2
7,300
21.8
14,50067.4
21,998.69(Note) Fields Corporation discloses a full year business forecast, as it manages its business performance on an annual basis.
4. Other information(1) Transfer of important subsidiaries during the year under review (Transfer of specific subsidiaries that results in a change in thescope of consolidation): No
New consolidation- firms
Deconsolidation- firms(2) 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(3) Number of shares issued (common stock)1) Number of shares issued (including treasury stock)
Year ended March 31, 2012
347,000 sharesYear ended March 31, 2011
347,000 shares
2) Number of treasury stock at the end of the year
Year ended March 31, 201215,162 sharesYear ended March 31, 2011
14,885 shares
3) Average number of shares outstanding
Year ended March 31, 2012
332,020 sharesYear ended March 31, 2011
332,115 shares* Presentation of implementation status for audit procedures# The audit procedures based on the Financial Instruments and Exchange Act do not apply to this Consolidated Financial Results, andthe audit procedures based on the Financial Instruments and Exchange Act have not been completed as of the release of thisdocument.
*Explanation of the appropriate usage of forecast earnings and other specific matters# The forward-looking statements made in this report such as performance perspective are based on currently available informationand certain premises that are judged reasonable by management. There are many uncertain factors inherent in forecasting, and there
might be cases in which actual results of future business operations and/or events differ from our forecasts depending on changes indiverse conditions. Please see “[3] Forecast earnings for the year ending March 31, 2013” under “(1) Analysis of operating results”
in Section 1 “Operating results” on page 2 in the attached document with regard to the cautions in using assumptions as the premisefor forecast earnings and in using the forecast earnings.
#The Company is planning to hold a results briefing for analysts and institutional investors on Thursday, May 10, 2012. Materials
distributed at that briefing will be posted on the Company’s website after the briefing Table of Contents of Attached Document
1.

Operating results.............................................................................................................................. 2(1) Analysis of operating results ....................................................................................................... 2(2) Analysis of financial position...................................................................................................... 5(3) Fundamental corporate policy for distributing profits and dividends for the current andnext fiscal years........................................................................................................................... 6

2.

Outline of the Fields Group ............................................................................................................. 7

3.

Management policies....................................................................................................................... 8(1) Fundamental corporate management policy................................................................................ 8(2) Issues to address.......................................................................................................................... 8(3) Management strategies for the medium to long term .................................................................. 9(4) Targeted management indicators ............................................................................................... 10(5) Other important matters affecting corporate management ........................................................ 10

4.

Consolidated financial statements ................................................................................................. 11(1) Consolidated balance sheets...................................................................................................... 11(2) Consolidated statements of income and consolidated statements of comprehensive income .... 13(3) Consolidated statement of change in net assets ......................................................................... 16(4) Consolidated statements of cash flows...................................................................................... 18(5) Note regarding the operation of the company as a going concern............................................. 20(6) Basis of presentation of the consolidated financial statements.................................................. 20(7) Change in the basis of presentation of the consolidated financial statements............................ 23(8) Notes to the consolidated financial statements .......................................................................... 24(Consolidated balance sheets) ................................................................................................. 24(Consolidated statements of income) ...................................................................................... 26(Consolidated statements of comprehensive income) ............................................................. 27(Consolidated statements of changes in net assets) ................................................................. 27(Consolidated statements of cash flows) ................................................................................. 28(Segment information) ............................................................................................................ 29(Per-share data) ....................................................................................................................... 33(Significant subsequent events)............................................................................................... 33

5.

Others ............................................................................................................................................ 34(1) Personnel change in officers...................................................................................................... 34-1-

1. Operating results(1) Analysis of operating results[1]

Overview of operations for the year ended March 31, 2012
During the year under review, the Company saw its revenue and profit grow substantially compared to the previous year: net
sales were ¥92,195 million (11.0% down year-over-year), operating income ¥8,527 million (35.1% down year-over-year), andordinary income ¥8,661 million (36.7% down year-over-year). Net income was ¥5,991 million (20.3% down year-on-year)
because income and other taxes decreased as a result of the dissolution and liquidation of subsidiaries.
The major contributing factors behind these financial results are as follows:
At the beginning of the year, taking into consideration the effects of the Great East Japan Earthquake, which occurred in March
2011, the Company laid out sales schedules for the pachinko/pachislot business emphasizing the second half of the year. Later,in response to the market environment, in which the shipments and sales of pachinko/pachislot machine manufacturers’ major
titles were concentrated in the second half of the year, the Company revised these schedules so that a balance was struck
between supply and demand.
In accordance with this policy, the Company launched 1 pachinko machine and 2 pachislot machines during the first half of theyear, and 1 pachinko machine and 4 pachislot machines during the second half. Sales largely went forward as scheduled
throughout the year, but part of the orders for the pachislot machines launched during the fourth quarter was shifted to the next
fiscal year. For this and other reasons, the financial results for the year ended March 31, 2012 are as described above.
The following is an overview of each business segment.

[2]

Analysis of operations for the year ended March 31, 2012 by business segment
Pachinko/Pachislot (PS) Field segment
The pachinko/pachislot market’s business environment underwent unprecedentedly violent changes during this fiscal year,
affected as it was by the earthquake. In order to respond to the threat of widespread power shortages, pachinko halls
implemented electricity-saving measures such as voluntarily reducing their business hours and rotated staged temporary
closings. Pachinko/pachislot machine manufacturers, meanwhile, were forced to draw up production and sales plans withgreater emphasis on the second half of the year because the earthquake had disrupted their (component) supply chains,significantly affecting their procurement of electronic components and other products.
Taking these circumstances into account, the Company limited its sales plan to launching only 1 pachinko machine and 2
pachislot machines during the first half of the year, and decided to concentrate the launch of several machines, including major
titles, on the second half. The supply chains fortunately returned to normal earlier than the summer or thereafter, as had initiallybeen predicted. Pachinko/pachislot machine manufacturers were therefore able to introduce a number of major titles insuccession during the third quarter (October to December), prompting the market to surge as the year-end and New Year sales
campaign approached.
As the supply of new machines was concentrated on the first 3 months of the second half of the year, the Company
decided—from its standpoint as a company responsible for distribution—to focus on introducing several major titles during thefourth quarter (January to March). This was done in order to maintain market momentum from the preceding quarter. The
pachinko machine “CR Evangelion 7”, launched at the beginning of 2012 as the first of the major titles, achieved strong
market support, helping attract continuous custom to pachinko halls, as had been initially intended. The Company also strove
to consolidate the continuously expanding pachislot market by launching “Evangelion—The Heartbeat of Life” in February.
This was followed in March by “Monster Hunter”, which was developed in a tie-up with a popular game software
manufacturer, and the Company also took a range of other marketing measures.
Orders for the highly popular “Monster Hunter” continued strong, but due to the floods in Thailand last year it became difficult
to procure some of the components and materials, which delayed some of the sales until the next fiscal year. In response to therevision of industry regulations by the industry organization, 1 pachinko title scheduled to be launched under the Bisty brandduring the fourth quarter will be introduced in the next fiscal year in order to enhance its appeal in terms of excitement andentertainment as a game.
As a result, the number of pachinko machines sold during the year under review was 233,223 (29,391 down year-over-year),and sales of pachislot machines were 179,167 (38,492 down year-over-year). Consequently, net sales for the
Pachinko/Pachislot (PS) Field were ¥83,959 million (10.8% down year-over-year), and operating income was ¥8,664 million(32.7% down year-over-year).

-2-

<Pachinko/Pachislot machine titles distributed by wholesalers during the year under review>
Month released

Pachinko machine sales titles
CR The story of ayumi hamasaki—introduction
CR The story of ayumi hamasaki—Light/Sweet Version

July 2011(Bisty Co., Ltd.)(November 2011)

CR Evangelion 7

January 2012 (Bisty Co., Ltd.)

Total number of pachinko machines sold (machines)

233,223Month released

Pachislot machine sales titles[Still on sale from the previous period]
MOBASLO Evangelion—for your own wish

March 2011 (Bisty Co., Ltd.)SAMURAI 7

May 2011 (Bisty Co., Ltd.)

Kaze no Youjinbou—Memory of Butterflies

August 2011 (Rodeo Co., Ltd.)

Rahxephon

October 2011 (Rodeo Co., Ltd.)Street Fighter IV

November 2011 (Enterrise Co., Ltd.)Evangelion—the Heartbeat of Life

February 2012 (Bisty Co., Ltd.)

Monster Hunter

March 2012 (Rodeo Co., Ltd.)

Total number of pachislot machines sold (machines)

179,167(Note) The total number of pachinko/pachislot machines sold includes the number of machines other than the above titles sold via agency sales.

Mobile Field segment
Both the mobile and PC Internet user environment in Japan continued to develop during the year ended March 31, 2012 backed
by the offering of increasingly high-speed communications and the improvement of communication access networks. With
regard to mobile communications in particular, the number of mobile phone subscribers reached 124.18 million by the end of
March 2012, and the shift to third-generation phones, which enable high-speed data transmission, also progressed steadily. Thisdata was obtained in a survey conducted by the Telecommunications Carriers Association. Along with mobile phones, thespread of high-function mobile terminals such as smart phones and tablet PCs got fully underway, and the number of smart
phone subscribers reached 25.22 million at the end of March 2012. MM Research Institute, Ltd. announced that the number ofsmart-phone subscribers is expected to exceed 81 million in 5 years.
With the development of the mobile user environment described above, it is expected that demand for entertainment content
such as social games and e-books will grow even further. In addition to expanding mobile and other online services making themost of pachinko/pachislot-related contents, which is a particular strength, the Company is striving to build up new services
effectively, using the contents it possesses in other segments.
Along with reviewing existing services utilizing pachinko/pachislot-related contents in the online service field, FutureScope
Corporation and IP Bros. Incorporated have made their services compatible with smart phones and built up new contents. At
the same time, they have made investments to improve the quality of their services. Both companies will continue to expand
pachinko/pachislot-related contents through social networking services and online services, and will furthermore also strive toincrease profitability by maximizing the value of the IP the Fields Group acquires and creates.
As a result of the above, the Mobile Field segment posted net sales of ¥1,924 million (5.3% down year-over-year) andoperating income of ¥11 million (95.1% down year-over-year), respectively.
Sports Entertainment Field segment
During the year ended March 31, 2012, the Company continued to strive to improve the management of sports-related businessas it had done in the previous year.
In the sports field, Japan Sports Marketing Inc. underwent drastic business restructuring, as described in the “Notice regarding
a Simplified Absorption-type Divestiture between Fields Corporation and its Subsidiary and a Special Liquidation of theSubsidiary” dated August 23, 2011, and special liquidation was completed in March 2012.
Total Workout, the fitness club business taken over by the Company, continued to steadily increase membership and personaltraining contracts at each outlet.
As a result, net sales and operating income for the Sports Entertainment Field segment were ¥1,945 million (down 10.4%
year-over-year) and ¥7 million (¥290 million in operating loss for the previous year), respectively.

-3-

Other Field segment
In November 1, 2011, HERO’S Inc., a publishing company established jointly with Shogakukan Creative Inc., founded the
comic magazine “HERO’S Monthly”. It is now in its seventh issue, dated May 1, 2012. At the same time, the publishingcompany is working actively to upgrade the contents of the magazine with future merchandising in mind.
In February 2012, Lucent Pictures Entertainment, Inc. released “BERSERK I THE HIGH KINGS EGG” nationwide. This
animation, Part I of the BERSERK Series, was planned and produced as a major project since its foundation. The company has
decided to release a sequel, “BERSERK II”, in June 2012. It plans merchandising using a range of mass media platforms.
Digital Frontier Inc. has advanced video production business in various fields, including the production of computer graphics(CG) for movies and games. In order to meet the growing demand for CG production for pachinko/pachislot machines and forthe production of full-length CG works, the company is actively expanding production lines. One effort in this regard is toestablish subsidiaries not only in Japan but in Taiwan and Malaysia as well.
In March 2012, Tsuburaya Productions Co., Ltd. released “Ultraman Saga”, the latest in the Ultraman movie series,
nationwide. The movie attracted audiences from a wide range of age groups through the casting of high-profile actors andpowerful 3D cinematography. The company is striving to enhance the value of the IP it offers and to bolster its merchandisingfoundation not only through movies but also through other mass media, including TV, which made “Ultraman Retsuden”(Episodes) popular.
As a result of the above, the Other Field segment posted net sales of ¥5,460 million (7.2% down year-over-year) and an
operating loss of ¥139 million (¥315 million in operating income for the previous year).
Note: The net sales reported by the individual segments are gross inter-group net sales and transfers.

[3]

Forecast earnings for the year ending March 31, 2013 (April 1, 2012 to March 31, 2013)(Unit: Million yen)

Net sales

Forecast for the year ending
March 31, 2013
115,000

Results for the year ended
March 31, 2012
92,195Year-over-year change+24.7%

Operating income

14,0008,527+64.2%

Ordinary income

14,5008,661+67.4%Net income

7,300

5,991

+21.8%

The full-year forecast for the year ending March 31, 2013 is as follows:
As a distributor in the Pachinko/Pachislot Field, the Company will introduce exciting and highly entertaining high-quality
game products in an effort to gain more fan support and to create new customers.
During the year under review, the Company expects to sell 480,000 pachinko/pachislot machines (a gain of 68,000 machines).
The Company will expand the lineup of pachinko machine products it has jointly planned and developed with existing
manufacturers. The Company will work with KYORAKU SANGYO to introduce products under the new joint brand “OK” In
response to the continuously expanding pachislot machine market, it will introduce major products that meet the increasingly
sophisticated needs of fans, thus contributing to the further revitalization of the market.
In the overall entertainment area, the Company will gain more fans and maximize the value of its IP by circulating the IP its
Group acquires, possesses, and creates through the new framework of IP value maximization it has developed (refer to“Management policies” on page 8).
For the year ending March 31, 2013, the Company will contribute to shareholder income by aiming to pay the largest-everdividend through achievement of further growth.

-4-(2) Analysis of financial position[1]

Assets, liabilities and net assets(Unit: Million yen)
Current fiscal year end(as of March 31, 2012)
93,601

Previous fiscal year end(as of March 31, 2011)
78,971

Total liabilities

42,046

31,94910,096

Total net assets

51,55547,021

4,533

Total assets

Year-over-year change
14,630AssetsCurrent assets amounted to ¥62,811 million, up ¥11,760 million year-over-year. This was mainly attributable to an increase innotes and accounts receivable—trade.
Tangible fixed assets amounted to ¥10,980 million, up ¥890 million year-over-year.
Intangible fixed assets amounted to ¥4,372 million, down ¥697 million year-over-year.
Investments and other assets amounted to ¥15,437 million, up ¥2,677 million year-over-year. This primarily reflectedpurchases of investment securities.
As a result of the above, total assets amounted to ¥93,601 million, up ¥14,630 million year-over-year.
Liabilities
Current liabilities amounted to ¥37,925 million, up ¥10,338 million year-over-year. The principal factor behind this was anincrease in notes and accounts payable—trade.
Fixed liabilities amounted to ¥4,121 million, down ¥241 million year-over-year. This was mainly attributable to the redemptionof corporate bonds.
As a result of the above, total liabilities amounted to ¥42,046 million, up ¥10,096 million year-over-year.
Net assets
Net assets amounted to ¥51,555 million, up ¥4,533 million year-over-year. This primarily reflected an increase in retained
earnings.

[2]

Cash flows
During the year under review, cash and cash equivalents (hereinafter referred to as “cash”) increased by ¥2,652 million
year-over-year and amounted to ¥18,284 million at the end of the year ended March 31, 2012.
Cash flow for the year ended March 31, 2012 and contributing factors are as follows:(Unit: Million yen)
Current fiscal year

Previous fiscal year

(Year ended March 31, 2012)(Year ended March 31, 2011)

Cash flows from operating activities

10,015

8,005

2,010

Cash flows from investing activities(4,798)(4,356)(441)

Cash flows from financing activities(2,565)(3,915)

1,349

-5-

Year-over-year changeCash flows from operating activities
Net cash provided by operating activities amounted to ¥10,015 million (¥8,005 million of income in the previous year). Thiswas mainly attributable to income before income taxes and minority interests of ¥8,265 million, an increase of ¥5,194 million
in notes and accounts receivable—trade, an increase of ¥11,048 million in notes and accounts payable—trade, income taxes
paid totaling ¥7,112 million, etc.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥4,798 million (¥4,356 million of expenditure in the previous year). This was
mainly attributable to expenditure for purchases of tangible fixed assets totaling ¥1,355 million, expenditure for purchases ofintangible fixed assets totaling ¥1,065 million, expenditure for purchases of shares in affiliates totaling ¥1,021 million, etc.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥2,565 million (¥3,915 million of expenditure in the previous year). This was
mainly attributable to dividends paid totaling ¥1,659 million, redemption of corporate bonds totaling ¥748 million, andreduction of short-term borrowings totaling ¥152 million, etc.
(Reference) Trends of cash flow indicators
Year ended
March 31, 2008

Year ended
March 31, 2009

Year ended
March 31, 2010

Year ended
March 31, 2011

Year ended
March 31, 2012

Shareholders’ equity ratio (%)

64.3

75.8

50.5

59.2

54.6

Shareholders’ equity ratio at
market value (%)
Interest-bearing debt/cash flow
ratio (years)

68.7

90.8

44.4

59.9

48.6

0.4

0.7

0.2

0.2

0.2

Interest coverage ratio (times)

145.7

36.0

310.5

311.7

556.2

Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio at market value:
Aggregate market value (based on the closing stock price at the end of the year)/Total assets
Interest-bearing debt/cash flow ratio: Interest-bearing debt/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest expense(Notes) 1 All of the above indicators are calculated for their respective values on a consolidated basis.
2 Aggregate market value is calculated based on the number of shares issued excluding treasury stock.
3 Interest-bearing debt indicates all the liabilities for which interest is paid posted in the consolidated balance sheets.
(3) Fundamental corporate policy for distributing profits and dividends for the current and next fiscal years
The Company regards the enhancement of corporate value as a principal management task, and its fundamental policy is to pay
dividends at an appropriate level that corresponds with profits. Specifically, dividends are determined on the basis of such factors
as cash flow conditions, and we aim to achieve a consolidated payout ratio of 20% or more. The Company makes every effort toeffectively use retained earnings for investments to enhance its financial condition, strengthen the management foundation,
expand businesses continually and secure a competitive edge.
For the year ended March 31, 2012, the Company paid an interim dividend of ¥2,500 per share to shareholders and intends todistribute a year-end dividend of ¥2,500 per share (¥5,000 for the whole year). As a result, this fiscal year’s consolidated payout
ratio will be 27.7%.
With regard to the year ending March 31, 2013, taking forecasts of profit growth into account, the Company also intends todistribute an annual dividend per share of ¥5,000 (an interim dividend of ¥2,500 and a year-end dividend of ¥2,500).

-6-

2. Outline of the Fields GroupThe Fields Group (parent company and associated companies) comprises Fields Corporation (“the Company”), 19 subsidiaries, 8affiliated companies, and 1 other related company.
The business segments of each company in the Fields Group are summarized below.
Business segment

Description of principal business

Pachinko/Pachislot (PS)
Field

Company nameFields Corporation
Fields Jr. Corporation
Planning, development, sales and
BOOOM Corporation
maintenance of
MICROCABIN CORP.
pachinko/pachislot machines,
purchasing of pachinko/pachislot Shin-Nichi Technology Co., Ltd.
machines, as well as planning and SOGO MEDIA INC.
development of software forRodeo Co., Ltd.
pachinko/pachislot machines
Sankyo Co., Ltd.
(and 3 other companies)

Mobile Field

Mobile content business

FutureScope Corporation
IP Bros. Incorporated

Sports Entertainment
Field

Management of sports gym

EXPRESS Inc. (and 2 other companies)

Tsuburaya Productions Co., Ltd.
Planning and production of
Digital Frontier Inc.
movies and TV programs
Lucent Pictures Entertainment, Inc.
Planning, manufacture, sales, etc.
HERO’S Inc.
of character goods

Other Field(and 9 other companies)

The following chart summarizes our business organization.
Pachinko/Pachislot (PS) Field
 BOOOM Corporation
 MICROCABIN CORP.
 Shin-Nichi Technology Co., Ltd.

and another equity method affiliate

Planning andconsignment ofdevelopment

Intellectual property (IP) (Content)

 Rodeo Co., Ltd.
 Sankyo Co., Ltd.

Development

and another consolidated subsidiary andanother unconsolidated subsidiaryIP

Machine manufacturer

Planning

IP and productplanning

Product
purchasing andconsigned sales

Fields Corporation
Consignment ofoperations

Product sales
Sales representation

 Fields Jr. Corporation
 SOGO MEDIA INC.

Provision

Nationwide pachinko halls (Users)IPof services

Mobile Field FutureScope Corporation
 IP Bros. Incorporated

Provisionof services

Sports Entertainment Field

IP
IP

Provision

 EXPRESS Inc.
And 2 other consolidated subsidiaries

of services

Users

IP

Other Field Tsuburaya Productions Co., Ltd.
 Digital Frontier Inc.
 Lucent Pictures Entertainment, Inc.
 HERO’S Inc.
And 3 consolidated subsidiaries, 3 other equity method affiliates,
2 non-consolidated subsidiaries, and another non-equity method affiliate
 : Consolidated subsidiary-7- : Equity method affiliate

Provisionof services

: Other related company

3. Management policies(1) Fundamental corporate management policy
With “The Greatest Leisure for All People” as its corporate philosophy, the Fields Group acquires and creates high value-added
intellectual property (IP) and develops it in multiple ways, thus producing contents with high commercial value. It also strives toexpand its business domains in the entertainment area with IP as its pivotal resource, and in each domain strives to provide
consumers with products and services that enrich their lives.
Along with this development of its business, the Company steadfastly maintains a stance of emphasizing shareholders as its basic
management policy, and aims to allocate its managerial resources in an optimal way in order to enhance its corporate value and toreturn profits to shareholders.
(2) Issues to address
Since 2002, the Ministry of Economy, Trade and Industry has encouraged the creation of game, animation and movie contents inorder to enrich the lifestyles of the Japanese people as a whole. Aiming to expand and develop such contents as a major business,
the Ministry has viewed this sector as one of Japan’s key industries for the next generation. In addition, the Ministry published thereport “Summary of the Report by the Study Group the Content Industry’s Growth Strategy” in May 2010 as a roadmap for theindustry, which is expected to drive the country’s economic growth. In the report, the Ministry referred to the economic growththat will be brought about by the globalization of relevant contents, particularly animations, comics, and movies, and placed great
expectations on the growth and development of the game, animation and movie industry.
Developing its intellectual property business, including character creation, is a key management task for the Fields Group. The
Group will encourage its growth in a stable and ongoing way in order to meet these expectations, contribute to Japan’s economic
growth, and enrich the lives of the people in the future. In recent years, however, the diversification of media, the proliferation ofindividual preferences and other factors have prevented appealing new characters from being easily created. As a result, there isconcern about the exhaustion of superior IP, and the Fields Group recognizes the creation of new characters and IP as an urgent
mission.

-8-

(3) Management strategies for the medium to long term
～Character business and other target IP business models for the Fields Group～
In the medium-to-long run, Fields and the Fields Group are taking on the challenge of drastically transforming themselves from a
distributor in the Pachinko/Pachislot Field to a group of IP-based companies.

Figure 1: The Business Models We Have Developed Since Listing
Comicsand books

Animation

MoviesDramasand other TV

Music(Artists)

Games

Paper
(Magazinesand comics)

Sportsetc.

High-quality intellectual property (IP)Sales
consignment

Sales
planning

Nationwide
Nationwidepachinko
pachinkohalls
halls

Advertisingplanners
Visualcreators
Visualtechnologies
Gamecreators

Copywriters

TV writers andplanners

Cross-media development

Content

Cross-media
development

Production
planning

Commercialization

Pachislot
manufacturers

Intellectual property
development

Cutting-edge creativity & technologies

Pachinko
manufacturers

Mobile phones
New mobile
Information
devicesTV
CDs and DVDs
(For sales andrentals)
MoviesVideogame
consolesCharactergoodsLive theater

Fans
Fans

Figure 2: Developing Business Models

Animations

ComicsAdd value to stories and characters through the mostadvanced technology, such as CG

Acquire and create stories and characters

Serialized

IP value maximization

Merchandising

Movies/TV

Interactive media
Consumer products
Pachinko and pachislot

Spread the contents to wide range of people in theform of animations, in order to expand the fan baseUtilize stories and characters in various media to earn
profits＜Business models the Company has built since its listing＞
The Company went public in March 2003. At that time, it announced a multifaceted strategy of developing IP, the basis for its
competitive advantage, and has since concentrated on implementing the strategy (see Figure 1).
The acquisition of IP constitutes the core of the strategy, and the Company has focused on obtaining many rights to develop
superior IP into products from companies that possess such IP in such areas as comics, animations, movies, TV drama, music,
games, and sports.
The Company has utilized the most of the merchandising rights thus obtained in order to bring highly entertaining
pachinko/pachislot machines into the Pachinko/Pachislot field, thus contributing to stabilizing and vitalizing the
Pachinko/Pachislot market. At that time, with IP-based pachinko/pachislot machines in short supply, the key to success was that
the Company embraced PS as a media comparable to animation, movies, and TV earlier than any other company and developed
highly entertaining Pachinko/Pachislot machines.

-9-In addition, the Company has continued to take on the challenge of working with outstanding creative production companies andto collaborate with partners who have the talented personnel and cutting-edge technology required to develop the merchandisingrights it has obtained in media other than Pachinko/Pachislot.
Through these initiatives, the Fields Group has expanded its business domains to cover diverse entertainment areas. During thisperiod, it has not only acquired IP but also placed Tsuburaya Productions Co., Ltd. and other companies owning superior IP under
its umbrella. It has also built networks with leading businesses in each field and has linked up with outstanding business partners
in order to increase the value of its IP; the Fields Group included in its group companies that cover particular fields of expertisesuch as comics, animations, and videos.
As a result, the Fields Group has become capable of continuously developing and marketing attractive pachinko/pachislot
machines, bringing substantial results in the PS Field. Furthermore, it has launched new initiatives aimed at IP creation in earnest
in an effort to not only utilize its existing IP for future growth but also to stop the progressive exhaustion of superior IP.
＜Developing business models＞
For several years, in order to achieve medium- to long-term growth, the Fields Group has striven to shift its strategy from thePS-based business model, which it had followed since it went public, to an IP core business model.
As the 10th year since its listing and the 25th anniversary of its establishment approach, the Group is analyzing its current strategy
and building a new business development model based on its prognosis of how developments will unfold over the next quarter
century. The Group will strive to achieve further growth based on the new business model (see Figure 2).
The business development model, which basically consists of 4 frameworks, aims at a virtuous cycle of success through circularbusiness development based on interaction between the frameworks.
1) Comics: A source of IP creation
The Company will acquire and create attractive stories and characters. It has already created characters, particularly heroes, by
publishing “HERO’S Monthly” magazine jointly with Shogakukan Creative Inc. In the future, it will create IP by taking various
approaches such as developing comics through cooperation and networking with partner companies.
2) Animations: Revitalizing IP through digitization
The Company will work to produce video versions of leading comics, making the best of the most advanced technology. In
producing such video versions, it will revitalize its IP by using effects that highlight the stories and characters, including thoserealized in the movie Berserk.
3) Movies/TV: Spreading IP and maximizing its value
The Company will raise the level of recognition for its works through movies and TV and maximize their value. The Company
aims to expand its fan base by carrying out effective promotion activities such as news tie-ins for new releases and successfullyusing 3D cinematography as it did for the movie “Ultraman Saga”.
4) Multimedia merchandising: Multiple IP development
The Company will increase profits through merchandising, using interactive media such as games, mobile terminals, and social
network services (SNS), consumer products and pachinko/pachislot machines.
In the future, the Fields Group will continue to aim at establishing its character business using its advantages as a PS distributor,
and will strive to bolster its systems to manage such business with the establishment of a holding company in mind.

(4) Targeted management indicators
The managerial goal of the Fields Group is to increase its corporate value by achieving greater operational efficiency andcontinuous business expansion. It places emphasis on management indicators such as return on equity, operating income, and cash
flow from operating activities.
(5) Other important matters affecting corporate management
No relevant items- 10 -

4. Consolidated financial statements(1) Consolidated balance sheets
Fiscal year ended
March 31, 2011(as of March 31, 2011)
AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable—trade
Merchandise and products
Work in process
Raw materials and supplies
Deferred tax assets
Merchandising rights advances
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Net amount of buildings and structures
Machinery, equipment and vehicles
Accumulated depreciation
Net amount of machinery, equipment and vehicles
Tools, furniture and fixtures
Accumulated depreciation
Net amount of tools, furniture and fixtures
Land
Construction in progress
Total tangible fixed assets
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans
Deferred tax assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets*1*2- 11 -

15,87327,948
300
826
231
1,249
2,067
2,755
(200)
51,051(Unit: Million yen)
Fiscal year ended
March 31, 2012(as of March 31, 2012)*1

18,34434,402
386
2,493
255
609
1,840
*4
4,580
(101)
62,811*4

5,478(2,430)
3,048
92
(65)
27
3,097
(2,442)
654
6,324
34
10,0896,078(2,815)
3,263
96
(75)
21
3,450
(2,682)
768
6,642
285
10,980

2,801
2,268
5,070

2,498
1,874
4,372

8,466
417
942
3,409
(475)
12,76027,92078,971*2

10,241
407
909
4,410
(531)
15,43730,79093,601Fiscal year ended
March 31, 2011(as of March 31, 2011)
Liabilities
Current liabilities
Notes and accounts payable—trade
Corporate bonds redeemable within 1 year
Short-term borrowings
Current portion of long-term borrowings
Accrued income taxes
Accrued bonuses
Accrued bonuses to directors and auditors
Reserve for returned goods unsold
Other current liabilities
Total current liabilities
Fixed liabilities
Corporate bonds
Long-term borrowings
Retirement benefit provisions
Other fixed liabilities
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interest
Total net assets
Total liabilities and net assets

17,939
740
85
*1
44
4,217
312
220
4,028
27,587- 12 -(Unit: Million yen)
Fiscal year ended
March 31, 2012(as of March 31, 2012)

29,100
618
450
*1
153
184
315
240
10
6,852
37,925

*1

*1

900
65
339
3,058
4,362
31,949

300
139
455
3,226
4,121
42,046

7,948
7,994
33,443(1,785)47,601

7,948
7,994
37,774(1,821)
51,895

(822)
0
(821)
242
47,021
78,971

(824)
(0)
(824)
483
51,55593,601

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenditures
Salaries
Provision for accrued bonuses
Provision for accrued bonuses to directors andauditors
Outsourcing expenses
Travel and transport expenses
Depreciation and amortization
Rents
Provision to allowance for doubtful accounts
Retirement benefit expenses
Amortization of goodwill
OthersTotal selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity method investment gain
Discounts on purchases
Lease income
OthersTotal non-operating income
Non-operating expenses
Interest expense
Provision to allowance for doubtful accounts
Amortization of equity investment
Loss on management of investment securities
Foreign exchange loss
Disaster-related support expenses
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of shares in affiliates
Reversal of allowance for doubtful accounts
Reversal of provision for bonuses
OthersTotal extraordinary income

Fiscal year ended March 31, 2011
(April 1, 2010–March 31, 2011)
103,593
68,46435,129(Unit: Million yen)
Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)
92,19560,86531,330

4,006
5,527
290
220

3,644
5,728
246
240

1,553
551
1,393
1,654
76
366
6,353
21,993
13,136

2,373
542
1,431
1,749
(52)
86
333
6,479
22,803
8,527

13
166
552
199
33
170
1,136

5
169
102
33
41
221
574

20
345
61
95
18
47
588
13,684

17
289
84
48
440
8,661

162
37
14
215

7
0
8

- 13 -

Fiscal year ended March 31, 2011
(April 1, 2010–March 31, 2011)
Extraordinary losses
Loss on disposal of fixed assets
Impairment loss
Amortization of goodwill
Provision to allowance for doubtful accounts
Loss on adjustment for changes of accounting
standards for asset retirement obligations
OthersTotal extraordinary losses
Income before income taxes and minority
interests
Current income taxes
Deferred income taxes
Total income taxes
Income before minority interests
Minority interests
Net income*1*2- 14 -

39
44
141
142

(Unit: Million yen)
Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)
*1
*2

83
197
45
-

120
488
13,410

78
404
8,265

5,933
(49)
5,883
7,527
6
7,520

1,450
649
2,099
6,165
174
5,991

Consolidated statements of comprehensive income

Income before minority interests
Other comprehensive income
Unrealized holding gain on available-for-salesecurities
Foreign currency translation adjustment
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to ownersof the parent
Comprehensive income attributable tominority interests

Fiscal year ended March 31, 2011
(April 1, 2010–March 31, 2011)
7,527(Unit: Million yen)
Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)
6,165

(145)

(1)

0
0

(0)
-

- 15 -

(144)
7,382

*

7,375

5,988

6

173

(2)
6,162

(3) Consolidated statement of change in net assets(Unit: Million yen)
Fiscal year ended March 31, 2011 Fiscal year ended March 31, 2012
(April 1, 2010–March 31, 2011) (April 1, 2011–March 31, 2012)
Shareholders’ equity
Common stock
Balance at beginning of the year
Amount of changes during the year
Total amount of changes during the year
Balance at end of the year
Capital surplus
Balance at beginning of the year
Amount of changes during the year
Total amount of changes during the year
Balance at end of the year
Retained earnings
Balance at beginning of the year
Amount of changes during the year
Dividends from surplus
Net income
Total amount of changes during the year
Balance at end of the year
Treasury stock
Balance at beginning of the year
Amount of changes during the year
Purchase of treasury stock
Total amount of changes during the year
Balance at end of the year
Total shareholders’ equity
Balance at beginning of the year
Amount of changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Total amount of changes during the year
Balance at end of the year
Accumulated other comprehensive income
Unrealized holding gain on available-for-sale securities
Balance at beginning of the year
Amount of changes during the year
Net amount of changes in items not included inshareholders’ equity during the year
Total amount of changes during the year
Balance at end of the year
Foreign currency translation adjustment
Balance at beginning of the year
Amount of changes during the year
Net amount of changes in items not included inshareholders’ equity during the year
Total amount of changes during the year
Balance at end of the year

- 16 -

7,948

7,948

7,948

7,948

7,994

7,994

7,994

7,994

27,58333,443(1,660)7,520
5,859
33,443(1,660)5,991
4,330
37,774(1,785)(1,785)(1,785)(36)(36)(1,821)

41,74147,601(1,660)7,520
5,859
47,601(1,660)
5,991
(36)
4,294
51,895

(676)

(822)

(145)

(1)

(145)
(822)

(1)
(824)

0

0

0

(0)

0
0

(0)
(0)

Fiscal year ended March 31, 2011
(April 1, 2010–March 31, 2011)
Total accumulated other comprehensive
incomeBalance at beginning of the year
Amount of changes during the year
Net amount of changes in items notincluded in shareholders’ equity during
the year
Total amount of changes during the year
Balance at end of the year
Minority interest
Balance at beginning of the year
Amount of changes during the year
Net amount of changes in items notincluded in shareholders’ equity during theyear
Total amount of changes during the year
Balance at end of the year
Total net assets
Balance at beginning of the year
Amount of changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Net amount of changes in items notincluded in shareholders’ equity during theyear
Total amount of changes during the year
Balance at end of the year

- 17 -(Unit: Million yen)
Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)

(676)

(821)

(145)

(2)

(145)
(821)

(2)
(824)

122

242

119

241

119
242

241
483

41,18747,021(1,660)7,520(25)(1,660)
5,991
(36)
238

5,834
47,021

4,533
51,555

(4) Consolidated statements of cash flows
Fiscal year ended March 31, 2011
(April 1, 2010–March 31, 2011)(Unit: Million yen)
Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)

13,410
1,734
44
507
118
33
85

8,265
1,962
197
333
(38)
(30)
20

64
(11)

78
-

(180)
(199)
(552)
20
142

(175)
(33)
(102)
17
-

95
98
4,907

356
(5,194)

628
771
153
(289)
(9,155)

(572)
226
(214)
200
11,048

(414)
145
(76)
1,021
13,102
186(25)(5,258)
8,005

805
(266)
563
(513)
16,933212(18)(7,112)
10,015

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in accrued bonuses
Increase (decrease) in accrued bonuses to directors
and auditors
Increase (decrease) in retirement benefit provisions
Increase (decrease) in allowance for losses on order
receiving
Interest and dividend income
Discounts on purchases
Equity method investment loss (gain)
Interest expense
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Loss on management of investment securities
Amortization of equity investment
Decrease (increase) in notes and accounts
receivable—trade
Decrease (increase) in inventories
Decrease (increase) in merchandising right advances
Decrease (increase) in prepaid expenses
Decrease (increase) in advance payments
Increase (decrease) in notes and accounts
payable—trade
Increase (decrease) in other accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
OthersSubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities- 18 -

(Unit: Million yen)
Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)

Fiscal year ended March 31, 2011
(April 1, 2010–March 31, 2011)
Cash flows from investing activities
Purchase of marketable securities
Proceeds from redemption ofmarketable securities
Purchases of tangible fixed assets
Purchases of intangible fixed assets
Purchases of investment securities
Expenditure for acquiring shares inaffiliates
Proceeds from sales of shares inaffiliates
Expenditure for acquiring shares insubsidiaries which involved change inthe scope of consolidation
Expenditure for equity investment
Expenditure for loans
Collection on loans
Payments for deposits and guarantees
Proceeds from cancellation of deposits
and guarantees
OthersCash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Repayment of long-term borrowings
Redemption of corporate bonds
Dividends paid
OthersNet cash provided by (used in)financing activities
Effect of exchange rate changes on cash
and cash equivalents
Increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginningof yearCash and cash equivalents at end of theyear*- 19 -

-

(503)
531

(482)
(1,008)
(366)
(315)

(1,355)(1,065)(400)(1,021)200

7(2,191)

(172)

(155)
(243)
113
(132)
16

(572)
(354)
263
(572)
129

208
(4,356)287(4,798)(1,209)

(152)

(63)
(877)
(1,657)(108)(3,915)(61)(748)(1,659)55(2,565)

(7)

0

(274)

2,652

15,906

15,632

15,632*

18,284

(5) Note regarding the operation of the company as a going concern
No relevant items(6) Basis of presentation of the consolidated financial statements
1. Scope of consolidation(1) Number of consolidated subsidiaries:

16

Names of consolidated subsidiaries:
Fields Jr. Corporation
Shin-Nichi Technology Co., Ltd.
Total Workout premium management Inc.
Lucent Pictures Entertainment, Inc.
Digital Frontier Inc.
K-1 INTERNATIONAL Corporation
MICROCABIN CORP.
IP Bros. Incorporated
FutureScope Corporation
EXPRESS Inc.
GEMBA Inc.
Digital Frontier (Taiwan) Inc.
Fly Studio SDN, BHD
NEX ENTERTAINMENT CO., LTD.
BOOOM Corporation
Tsuburaya Productions Co., Ltd.
During the year under review, the liquidation of JSM Hawaii, LLC and Japan Sports Marketing Inc. were completed, andtherefore, these companies have been excluded from the scope of consolidated accounting.
Total Workout premium management Inc. and Digital Frontier (Taiwan) Inc., newly established during the year under review,are now included in the scope of consolidated accounting.
Since the Company newly acquired shares in NEX ENTERTAINMENT CO., LTD. and Fly Studio SDN, BHD during the year
under review, it now includes these companies in its scope of consolidated accounting.
F Corporation changed its trade name to BOOOM Corporation during the year under review.
(2) Names of significant non-consolidated subsidiaries:
HERO’S Properties Inc.
APE Inc.
NEX Future Production Co., Ltd.
Reason for excluding from the scope of consolidation:
Non-consolidated subsidiaries have been excluded from consolidation owing to their small size and the fact that in no case dotheir aggregate total assets, net sales, net income (proportionate to equity stakes held) and retained earnings (proportionate toequity stakes held), etc., have a material impact on the consolidated financial statements.

- 20 -

2. Application of equity method(1) Number of affiliates accounted for using the equity method: 7
Mizuho Corp.
HERO’S Inc.
Rodeo Co., Ltd.
SOGO MEDIA INC.
Bbmf Magazine, Inc.
SPO Inc.
Kadokawa Haruki Corporation
Since the Company acquired shares in Mizuho Corp. during the year under review, it newly applies the equity method to thecompany.
(2) Names of non-consolidated subsidiaries and affiliates not accounted for using the equity method:
HERO’S Properties Inc.
APE Inc.
NEX Future Production Co., Ltd.
G&E Corporation
Reason for not applying the equity method:
These companies have a negligible impact on net income (proportionate to equity stakes held) and retained earnings(proportionate to equity stakes held) and have no significance as a whole, so they have been excluded from the application of
the equity method.
(3) Matters requiring clarification concerning procedures for application of the equity method:
With regard to companies accounted for by the equity method whose year-end settlement date differs from that for consolidated
accounts, the financial statements relating to those companies’ fiscal years are utilized.
3. Business years of consolidated subsidiaries
The accounts settlement dates of consolidated subsidiaries correspond with the Company’s consolidated accounts settlement dateof the Company.
4. Accounting standards(1) Valuation standards and methods for important assets[1]

Marketable securities
Held-to-maturity bonds:
Carried at amortized cost (straight-line method)
Other marketable securities
Securities with market prices:Stated at market value based on market price as of the consolidated balance sheet date (unrealized gains or losses arecharged or credited directly to net assets, with the cost of securities sold determined by the moving average method).
Securities without market prices:Stated at cost determined by the moving average method.

[2]

Derivatives:
Stated at market value[3]

Inventories
Inventories held for purposes of ordinary sales
Valuation policy for inventories held for purposes of ordinary sales is based on a cost basis (which reduces the book valueof assets whose profitability is diminished).
a. Merchandise
Fields Corporation:
Used pachinko/pachislot machines- 21 -

Specific identification method
OthersMoving average method
Consolidated subsidiaries:
Periodic average method
b. Work in process
Consolidated subsidiaries:
Specific identification methodc. Raw materials
The Company and its consolidated subsidiaries
Moving average methodd. Supplies
Last purchase price method(2) Depreciation methods for important depreciable assets[1]

Tangible fixed assets
Declining-balance method for the Company and domestic consolidated subsidiaries
However, the straight-line method is applied to buildings (excluding building fixtures) acquired on and after April 1, 1998.
The estimated useful lives of depreciable assets are as follows.

[2]

Buildings and structures

3–50 years

Machines and conveyors

2–12 years

Tools, furniture and fixtures:

2–20 years

Intangible fixed assets
Straight-line method
The straight-line method is applied to software for company use, based on its useful life within the Company (5 years).

[3]

Long-term prepaid expenses
Straight-line method(3) Accounting standards for important reserves[1]

Allowance for doubtful accounts
To provide against losses from doubtful accounts, allowances for ordinary receivables are provided using a rate determinedby past collection experience, and allowances for specific debts considered doubtful are accounted for by calculating theestimated amounts deemed uncollectible after individually reviewing collectability of the debts.

[2]

Accrued bonuses
To provide for employee bonuses, the Company and some of its consolidated subsidiaries recognize the amounts out of the
projected bonus payments to be allocated during the year under review.

[3]

Accrued bonuses to directors and auditors
To provide for bonuses to directors and auditors, the Company recognizes the amounts corresponding to the year underreview based on the projected bonus payments.

[4]

Retirement benefit provisions
To provide for employees’ retirement benefits, the Company and some consolidated subsidiaries recognize, on the basis ofprojected benefit obligations as of the end of the year under review, benefit obligations accrued as of the end of the year.
Actuarial differences are amortized proportionately by the straight-line method over a fixed number of years (5 years)
within the average remaining period of service of employees as of the time such differences arise. Amortization amounts are
expensed beginning with the fiscal year following that in which the differences arise.

[5]

Provision for sales returns
To provide against losses in future sales returns, some of the subsidiary companies factor in the projected amount of losses
from such returns in advance.

- 22 -

(4) Amortization method for goodwill and the amortization period
Goodwill is amortized equally for a reasonable number of years within 10 years, estimating the period when its effect isgenerated.
(5) Scope of funds in consolidated statements of cash flows
Funds include cash on hand, demand deposits, and short-term investments maturing or redeemable within 3 months after
acquisition that are highly liquid, easily convertible into cash, and exposed to low price fluctuation risk.
(6) Other significant matters in the preparation of the consolidated financial statements
Accounting for consumption taxes
Consumption tax is accounted for by the tax-excluded method.
(7) Change in the basis of presentation of the consolidated financial statements
Changes in presentation methods
Consolidated statements of income
Because the rubric “Loss on disposal of fixed assets,” which had been included in “Others” under extraordinary loss in theprevious fiscal year, accounted for more than 10% of total extraordinary losses, it is presented separately in the current fiscal year.
The consolidated balance sheet for the previous fiscal year has been rearranged to reflect this presentation method.
As a result, the sum of ¥159 million which had been included in “Others” under extraordinary loss in the consolidated statements
of income for the previous fiscal year has been divided in two: ¥39 million is reported as loss on disposal of fixed assets and ¥120
million as “Others.”

Consolidated cash flow statement
The rubric “Proceeds from payments by minority shareholders,” which had been presented separately under the cash flow fromfinancing activities until last fiscal year, is included in “Others” in the section concerning cash flows from financing activities,
because the amount has been reduced to an insignificant level. The consolidated balance sheet for the previous fiscal year has
been rearranged to reflect this presentation method.
As a result, the ¥22 million in proceeds from payments by minority shareholders in the consolidated statement of cash flows forlast fiscal year and the ¥(130) million in “Others” in the cash flow from financing activities have been combined, and ¥(108)million of the cash flow from financing activities is reported as “Others.” The amount of proceeds from payments by minority
shareholders in the current fiscal year is ¥2 million.

Additional information
Due to the accounting changes and past error corrections that have been made since the beginning of the current fiscal year, theCompany has applied the Accounting Standards for Accounting Changes and Error Corrections (ASBJ Statement No. 24, issued
on December 4, 2009) and the Guidance for the Application of the Accounting Standards for Accounting Changes and Error
Corrections (ASBJ Guidance No. 24, issued on December 4, 2009).

- 23 -

(8) Notes to the consolidated financial statements
Consolidated balance sheets*1 Assets provided as security
Assets provided as security
Fiscal year ended March 2011(as of March 31, 2011)
Time deposits

Fiscal year ended March 2012(as of March 31, 2012)¥40 million¥- million

Secured debts
Fiscal year ended March 2011(as of March 31, 2011)

Fiscal year ended March 2012(as of March 31, 2012)

Corporate bonds redeemable within 1
year¥10 million¥- million

Current portion of long-term borrowings
within 1 year

¥30 million¥- million*2 Related to non-consolidated subsidiaries and affiliates
Fiscal year ended March 2011(as of March 31, 2011)
Investment securities (shares)

Fiscal year ended March 2012(as of March 31, 2012)¥2,208 million¥3,553 million

3. Contingent liabilities
The Company provides payment guarantees for sales of pachinko/pachislot machines to pachinko halls from pachinko/pachislot
machine manufacturers when acting as a representative in such sales.
Fiscal year ended March 2011(as of March 31, 2011)
Niimi Co., Ltd.

Fiscal year ended March 2012(as of March 31, 2012)¥47 million¥88 million

Nobuta Enterprise Co., Ltd.

¥- million¥86 million

K.K. Corona¥5 million¥84 million

K.K. Ichiroku Shoji¥31 million¥55 million

K’s corporation¥13 million¥49 million

Gaia Co., Ltd.

¥3 million¥45 million

Asahi Shoji Co., Ltd.

¥0 million¥24 million

K. K. Taisei Kanko¥30 million¥21 million

K. K. The City

¥21 million¥21 million

Y. K. Big Shot

¥15 million¥19 million

Others¥655 million¥828 million¥824 million¥1,324 million

Total*4 Notes maturing at the end of the fiscal year

The accounting of notes maturing at the end of the fiscal year is based on the day when they are cleared.
Since the last day of the fiscal year fell on a holiday, the below-listed notes maturing on the day are included in the balance ofnotes receivable at the end of the fiscal year.
Fiscal year ended March 2011(as of March 31, 2011)

Fiscal year ended March 2012(as of March 31, 2012)

Notes receivable-¥420 million

Non-operating notes receivable-¥1 million- 24 -

5. Overdraft agreements
To raise working capital efficiently, the Fields Group has concluded an overdraft agreement with banks. Unutilized balances underthese agreements as of March 31, 2012, were as follows:
Fiscal year ended March 2011(as of March 31, 2011)
Overdraft limit¥17,100 million

Borrowings outstanding
Difference- 25 -

Fiscal year ended March 2012(as of March 31, 2012)¥17,400 million¥85 million¥400 million¥17,015 million¥17,000 million

Consolidated statements of income*1 Loss on disposal of fixed assets:
Fiscal year ended March 31, 2011
(April 1, 2010–March 31, 2011)

Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)

Buildings and structures¥3 million¥4 million

Tools, furniture and fixtures¥7 million¥9 million

Software¥28 million¥69 million

Telephone subscription rights¥- million¥1 million

Total¥39 million¥83 million*2 Impairment loss
The Fields Group has stated an impairment loss for the asset set out below.
Fiscal year ended March 31, 2011 (April 1, 2010–March 31, 2011)
Usage
Type
Location
AmountMiscellaneous business-related assets
Buildings and structures
Tools, furniture and fixtures
Setagaya-ku, Tokyo and other places¥44 million

When grouping its assets, with regard to business-use assets, the Fields Group adopts the method of grouping primarily by businesscategory in accordance with management accounting practice.
With regard to the miscellaneous business-related assets, the Company has recognized losses due to the earlier disposal of assets thaninitially projected in office relocation plans it could not expect to recover at book value. Such losses consist of ¥38 million on thebuildings and structures and ¥6 million on tools, furniture, and fixtures.
The recoverable value of these properties has been calculated on the basis of value in use because net selling prices are not available,
but such recoverable value is appraised at 0 because no future cash flow is expected.
Fiscal year ended March 31, 2012 (April 1, 2011–March 31, 2012)
Usage
Type
Location
AmountMobile business-related assets
Software
Shibuya-ku, Tokyo¥173 million

Miscellaneous business-related assets
Buildings and structures
Minato-ku, Tokyo¥23 million

When grouping its assets, with regard to business-use assets, the Fields Group adopts the method of grouping primarily by businesscategory in accordance with management accounting practices.
With regard to mobile business-related assets, the Company has recognized losses consisting of ¥173 million on the software, because
it could not expect to recover fixed assets at book value due to lower profitability.
The recoverable value of these properties has been calculated on the basis of value in use because net selling prices are not available,
but such recoverable value is appraised at 0 because no future cash flow is expected.
With regard to miscellaneous business-related assets, the Group has recognized losses, which consist of ¥23 million on buildings andstructures, because it planned to relocate its offices and disposed of the assets earlier than initially planned, and as a result, it could not
expect to recover their book value.
The recoverable value of these properties has been calculated on the basis of value in use because net selling prices are not available,
but such recoverable value is appraised at 0 because no future cash flow is expected.

- 26 -

Consolidated statements of comprehensive income
Fiscal year ended March 31, 2012 (April 1, 2011–March 31, 2012)* Recycling and tax effects related to other overall income
Unrealized holding gain on available-for-sale securities
Differences that arose during the current fiscal year
Amount of recycling
Pre-tax adjustments
Amount of tax effects
Unrealized holding gain on available-for-sale securities
Foreign currency translation adjustment
Differences that arose during the current fiscal year
Amount of recycling
Pre-tax adjustments
Amount of tax effects
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Differences that arose during the current fiscal year
Total other comprehensive income¥105 million¥- million¥105 million¥107 million¥(1) million¥(0) million¥- million¥(0) million¥- million¥(0) million¥- million¥(2) million

Consolidated statements of changes in net assets
Fiscal year ended March 31, 2011 (April 1, 2010–March 31, 2011)

1 Shares issued
Type

As of April 1, 2010

Common stock (shares)

Increase

Decrease

347,000-

As of March 31, 2011-

347,000

2 Treasury shares
Type

As of April 1, 2010

Common stock (shares)

Increase

Decrease

14,885-

As of March 31, 2011-

14,8853 Stock acquisition rights
No relevant items

4 Dividends(1) Dividends paid
Resolution
Ordinary General Meeting of
Shareholders on June 23, 2010
Meeting of the Board of
Directors on November 4, 2010

Total dividends
paid(Million yen)Type

Amount ofdividends per
share (Yen)

Cut-off date

Effective date

March 31, 2010

June 24, 2010

Common stock

830

2,500

Common stock830

2,500 September 30, 2010 December 3, 2010

(2) Dividends for which the cut-off date came during the fiscal year ended March 31, 2011, but the effective date will comeduring the fiscal year ended March 31, 2012 or thereafter
Resolution

Type

Ordinary General Meeting of
Shareholders on June 22,
2011

Common stock

Total dividends
paid(Million yen)

Source forpayment ofdividends

830

Retainedearnings- 27 -

Amount ofdividends per
share (Yen)

Cut-off date

2,500 March 31, 2011

Effective dateJune 23, 2011

Fiscal year ended March 31, 2012 (April 1, 2011–March 31, 2012)
1 Shares issued
Type

As of April 1, 2011

Increase

Decrease

347,000

Common stock (shares)-

As of March 31, 2012-

347,000

2 Treasury shares
Type

As of April 1, 2011

Increase

14,885

Common stock (shares)

Decrease
277

As of March 31, 2012-15,162Outline of the reason for change
Increase due to requests for purchase made in accordance with Paragraph 1, Article 797 of the Companies Act: 277 shares

3 Stock acquisition rights
No relevant items

4 Dividends(1) Dividends paid
Resolution

Total dividends
paid(Million yen)Type

Ordinary General Meeting of
Shareholders on June 22, 2011
Meeting of the Board of
Directors on November 2, 2011

Amount ofdividends per
share (Yen)

Cut-off date

Effective date

March 31, 2011

June 23, 2011

Common stock

830

2,500

Common stock830

2,500 September 30, 2011 December 2, 2011

(2) Dividends for which the cut-off date came during the fiscal year ended March 31, 2012 but the effective date will comeduring the fiscal year ending March 31, 2013 or thereafter
Resolution

Type

Ordinary General
Meeting of Shareholders
on June 20, 2012

Common stock

Total dividends
paid(Million yen)

Source forpayment ofdividends

829

Retainedearnings

Amount ofdividends per
share (Yen)

Cut-off date

2,500 March 31, 2012

Effective dateJune 21, 2012

Consolidated statements of cash flows*

Relationship between cash and cash equivalents as of the end of the fiscal year and cash amounts stated on the consolidatedbalance sheets
Fiscal year ended March 31, 2011
(April 1, 2010–March 31, 2011)

Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)

Cash and deposit accounts¥15,873 million¥18,344 million

Time deposits of which depositing period
exceeds 3 months¥(200) million¥(60) million

Deposits provided as security¥(40) million¥- million

Cash and cash equivalents¥15,632 million¥18,284 million- 28 -

Segment information
1

General information about reportable segment
The reportable segments of the Company are business units of the Fields Group for which the Company is able to obtain
individual financial information separately in order for the board of directors to conduct periodic investigation to determine
distribution of management resources and evaluate their business performance.
The Company’s reportable business segments are based on groups of similar products, services, etc., which are segmented into
Pachinko/Pachislot (PS) Field, Mobile Field, Sports Entertainment Field and Other Field.
Major operations covered by each reportable segment include the purchase and sale, planning, and development ofpachinko/pachislot machines, as well as related operations incidental thereto for the Pachinko/Pachislot (PS) Field, mobile
content, etc. for the Mobile Field, sports management and related activities for the Sports Entertainment field, and planning andproduction of videos such as movies and TV programs, as well as planning, production, sale, etc. of character goods in the
Other field.

2

Method for calculating the amount of net sales, income or loss, assets, liabilities, and other items in each reportable segment
In general, the method for the accounting of reportable business segments is the same as that described in the “Basis ofpresentation of the consolidated financial statements.”

3

Information on the amount of net sales, income or loss, assets, liabilities, and other items in each reportable segment
Fiscal year ended March 31, 2011 (April 1, 2010–March 31, 2011)(Unit: Million yen)
Pachinko/
SportsPachislot Mobile Field Entertainment Other Field
Field(PS) Field

Total

Adjustment(Note 1)

Amount in the
consolidated
statement ofincome (Note 2)

Net sales
Net sales to third parties

93,880

1,990

2,143

5,578

103,593-

103,593

Inter-group net sales or transfers

234

41

27

303

606

(606)

-

Total

94,115

2,032

2,171

5,881

104,200(606)

103,593

Segment income (loss)

12,866

236

(290)

315

13,127

8

13,136

Segment assets

75,210

1,422

904

6,128

83,667(4,695)78,971

1,290

179

96

171

1,738

(4)

1,734

9

4

2

28

44

-

44

Investments in companies towhich the equity method
applies

598

-

-

1,398

1,996

-

1,996

Amortization of goodwill

24

-

212

270

507

-

507

1,144

498

52

2,973

4,669

(14)

4,655

Other items
Depreciation and amortization
Impairment loss

Increase (decrease) in tangible
fixed assets and intangible fixed
assets(Note) 1. The adjustments for segment income (¥8 million), segment assets (-¥4,695 million), depreciation and amortization (-¥4 million), andincrease in tangible and intangible fixed assets are due to the write-off of intersegment transactions.
2. The segment income is adjusted with operating income in the consolidated statement of income.

- 29 -

Fiscal year ended March 31, 2012 (April 1, 2011–March 31, 2012)(Unit: Million yen)
Pachinko/
SportsPachislot Mobile Field Entertainment Other Field
Field(PS) Field

Total

Adjustment(Note 1)

Amount in the
consolidated
statement ofincome (Note 2)-

92,195Net sales
Net sales to third parties

83,780

1,741

1,938

4,734

92,195Inter-group net sales or transfers

178

182

6

725

1,093

(1,093)-

Total

83,959

1,924

1,945

5,460

93,288(1,093)92,195

Segment income (loss)

8,664

11

7

(139)

8,544

(16)

8,527

Segment assets

87,233

1,294

1,426

6,181

96,135(2,533)93,601

1,376

348

55

186

1,967

(4)

1,962

-

173

-

23

197

-

197

Investments in companies towhich the equity method
applies

1,597

-

-

1,398

2,995

-

2,995

Amortization of goodwill

54

1

-

277

333

-

333

2,075

418

27

345

2,866

(21)

2,845

Other items
Depreciation and amortization
Impairment loss

Increase (decrease) in tangible
fixed assets and intangible
fixed assets(Note) 1. The adjustments for segment income (-¥16 million), segment assets (−¥2,533 million), depreciation and amortization (-¥4 million), andincrease (decrease) in tangible fixed assets and intangible fixed assets (-¥21 million) are due to the write-off of intersegment
transactions.
2. The segment income is adjusted with operating income in the consolidated statement of income.

- 30 -

Related information
Fiscal year ended March 31, 2011 (April 1, 2010–March 31, 2011)
1

Information on each product and service
Information on each product and service has been omitted because net sales to external customers in a single product or service
category accounted for more than 90% of net sales in the consolidated statement of income.

2

Information on each region(1) Net sales
Information on net sales in each region has been omitted because net sales to external customers in Japan accounted formore than 90% of net sales in the consolidated statement of income.

(2) Tangible fixed assets
Not applicable because the Company does not have tangible fixed assets outside Japan.
3

Information on each major customer
Customer name

(Unit: Million yen)
Name of the related segment

Net sales

Bisty Co., Ltd.

13,350Pachinko/Pachislot (PS) Field

Fiscal year ended March 31, 2012 (April 1, 2011–March 31, 2012)
1

Information on each product and service
Information on each product and service has been omitted because net sales to external customers in a single product or service
category accounted for more than 90% of net sales in the consolidated statement of income.

2

Information on each region(1) Net sales
Information on net sales in each region has been omitted because net sales to external customers in Japan accounted formore than 90% of net sales in the consolidated statement of income.
(2) Tangible fixed assets
Information on the amount of tangible fixed assets in each region has been omitted because the amount of tangible fixed
assets in Japan accounted for more than 90% of the amount of tangible fixed assets in the consolidated balance sheet.

3

Information on each major customer
Customer name

(Unit: Million yen)
Name of the related segment

Net sales

Bisty Co., Ltd.

11,255

Pachinko/Pachislot (PS) Field

Information on impairment loss for fixed assets in each reportable segment
Fiscal year ended March 31, 2011 (April 1, 2010–March 31, 2011)(Unit: Million yen)

Impairment loss

Pachinko/
Pachislot (PS)Field
9SportsMobile Field Entertainment
Field
4
2

Other Field

Total

28

44

Fiscal year ended March 31, 2012 (April 1, 2011–March 31, 2012)(Unit: Million yen)

Impairment loss

Pachinko/
Pachislot (PS)
Field-

SportsMobile Field Entertainment
Field
173
- 31 -

Other Field
23

Total
197

Information on the amount of amortization of goodwill and balance in each reportable segment
Fiscal year ended March 31, 2011 (April 1, 2010–March 31, 2011)(Unit: Million yen)
Pachinko/
Pachislot (PS)
Field

SportsEntertainment
Field

Mobile Field

Other Field

Total

Amortization for the year
ended March 31, 2011

24

-

212

270

507

Balance at the end of the year
ended March 31, 2011

340

-

-

2,461

2,801

Fiscal year ended March 31, 2012 (April 1, 2011–March 31, 2012)(Unit: Million yen)
Pachinko/
Pachislot (PS)
Field

Mobile Field

SportsEntertainment
Field

Amortization for the year
ended March 31, 2012

54

1

-

277

333

Balance at the end of the year
ended March 31, 2012

309

-

-

2,188

2,498

Information on gain on negative goodwill in each reportable segment
Fiscal year ended March 31, 2011 (April 1, 2010–March 31, 2011)
No relevant items

Fiscal year ended March 31, 2012 (April 1, 2011–March 31, 2012)
No relevant items- 32 -

Other Field

Total

Per-share data
Item
Net assets per share (yen)Fiscal year ended March 31, 2011(as of March 31, 2011)
140,853.00

Fiscal year ended March 31, 2012(as of March 31, 2012)
153,904.22

22,643.86

18,044.65

Amount of net income per share (yen)(Note)

1. Since no latent share exists, the amount of diluted net income per share is not stated.
2. The amount of net income per share and the basis for calculation is as follows:

Fiscal year ended March 31, 2011
(April 1, 2010–March 31, 2011)
7,520

Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)
5,991

-

-

Net income allocable to common shares (million yen)

7,520

5,991

Average number of shares of common stock outstanding(shares)

332,115332,020Item
Net income (million yen)Amount not allocable to common shares

Outline of latent shares not reflected in the calculationof diluted net income per share since they have no
dilutive effect———Significant subsequent events
No relevant items- 33 -———

5. Others(1) Personnel change in officers[1]

Change of representatives of the Company
No relevant items[2]

Change of other officers
The nomination of candidates for auditors is as follows:
Each candidate will be elected auditor at the 24th General Meeting of Shareholders to be held on June 20, 2012.

Candidates for auditors
Name
Kenichi Ikezawa(new)Tadao Koike*

Yoshika Furuta(reelected)

Koichiro Nakamoto(reelected)(Notes) Mr. Kenichi Ikezawa, a candidate for auditor, is an outside auditor as stipulated in Item 16, Article 2 of theCompanies Act.
Mr. Shigeru Matsushita, one of the current auditors, is scheduled to resign with the expiration of his term ofoffice.
* Mr. Tadao Koike, who is currently serving as auditor, will not be included in the auditor-related resolution at theGeneral Meeting of Shareholders.

- 34 -