Summary(Translation)

FIELDS CORPORATION
Summary of Financial Information and Consolidated Business Results
for the Nine Months Ended December 31, 2020 (Year Ending March 31, 2021) (Japan GAAP)
February 10, 2021
Listed on: TSE 1st
Company Name:
Stock code:
Representative Director:
Inquiries:
Tel:

FIELDS CORPORATION(URL: https://www.fields.biz/ir/e/)
2767
Hidetoshi Yamamoto
Chairman, President and Group CEO
Hideaki Hatanaka
Corporate Officer; General Manager, Business Management Department+81-3-5784-2111

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

February 12, 2021―
Yes
No
(Rounded down to the nearest million)

1. Consolidated business results for the nine months ended December 31, 2020 (April 1, 2020 to December 31, 2020)(1) Consolidated operating results (cumulative total)(Percentage figures denote YoY changes)
Net sales
Nine months ended
December 31, 2020
Nine months ended
December 31, 2019
(Note) Comprehensive income

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

29,182(21.5)(1,865)―(1,690)―(2,677)―

37,165(1.2)(4,113)―(3,970)―(4,287)―

Nine months ended December 31, 2020: ¥ (2,564) million (―%)
Nine months ended December 31, 2019: ¥ (4,762) million (―%)

Profit per share
Nine months ended
December 31, 2020
Nine months ended
December 31, 2019

Diluted profit per share
Yen

Yen

(81.77)―(129.22)―(2) Consolidated financial position

Millions of yen

Millions of yen

Shareholders’ equity
ratio%

Nine months ended
December 31, 2020

56,48331,08854.0

Year ended March 31, 2020

64,31734,27952.6

Total assets(Reference) Shareholders’ equity

Net assets

Nine months ended December 31, 2020: ¥ 30,514 million
Year ended March 31, 2020: ¥ 33,801 million

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

Annual dividends
Q3-endQ2-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

―
―

0.00
0.00

―
―

10.00

10.00

10.00

10.00

(Forecast)(Note) Revision of the most recently released dividend forecasts: No

3. Forecast of consolidated earnings for the fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021)(Percentage figures denote YoY changes)

Operating profit
Full-year

Ordinary profit

Millions of yen%

Millions of yen%(2,200)―(2,000)―

Profit attributable toowners of parent
Millions of yen%(Note) Revision of the most recently released performance forecasts: Yes
A full-year forecast of net sales is not disclosed considering the current pachinko/pachislot market environment.

1(3,300)―

Profit per share

Yen(101.09)

*Notes(1) Transfer of important subsidiaries during the year under review (Transfer of specific subsidiaries that results in a change in thescope of consolidation): No(2) Application of the accounting method specific to quarterly consolidated financial statements: Yes(3) Changes in accounting policies, accounting estimates, and revisions/restatements
1) Changes in account policies due to the revision to the accounting standards, etc.: No
2) Changes in accounting policies due to any reason other than those in 1) above: No
3) Changes in accounting estimates: No4) Revisions/restatements: No(4) Number of shares issued (common shares)
1) Number of shares issued at end of year (including treasury shares)
Nine months ended December 31, 2020
34,700,000 sharesYear ended March 31, 2020
34,700,000 shares
2) Number of treasury shares at end of year
Nine months ended December 31, 2020
2,368,300 sharesYear ended March 31, 2020
1,516,300 shares
3) Average number of shares outstanding (quarterly consolidated cumulative period)
Nine months ended December 31, 2020
32,744,994 shares
Nine months ended December 31, 201933,183,700 shares* Summary of Financial Information and Consolidated Business Results are not subject to audit.
* Explanation of the appropriate usage of forecast earnings and other specific matters# This document contains projections of performance and other projections that were made based on information currently available
and certain assumptions judged to be reasonable. The actual results may differ significantly from forecast figures due to the various
factors. Please refer to (1) Analysis of operating results and consolidated earnings forecasts under 1. Qualitative information on thequarterly financial results on page two of the attached documents for details of assumptions for financial forecasts and other related
matters.

Summary of Financial Information and Consolidated Business Results for the Nine Months Ended December 31, 2020

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

Summary of Financial Information and Consolidated Business Results for the Nine Months Ended December 31, 2020

1. Qualitative information on the quarterly financial results(1) Analysis of operating results and consolidated earnings forecasts
During the nine months ended December 31, 2020, pachinko and pachislot machine (hereinafter, “PS”) industry wasaffected by the stagnant trend in the market. In response to the spread of coronavirus disease (COVID-19), the government
launched declaration of emergency situation in April 2020, pachinko halls refrained operating, procuring semiconductor andother manufacturing materials were delayed in manufacturers, and the deadline for removal of the old regulation machines
was partly extended. As a result, we complied with declaration of emergency situation in April and May and refrained fromsales activities. We resumed sales activities after declaration of emergency situation was lifted, and unit sales in the H1 ended
at 16,000 units.
In the Q3 (October to December), the operation of pachinko hall rapidly recovered as the government worked tosimultaneously socioeconomic activities and infection suppressing, mainly in response to the decline in the number of patientsof COVID-19. In addition, new machines which is equipped with a new game function due to the revision of the internal
regulation of pachinko and other, has been highly regarded in the market. As a result, the total number of units sold in themarket increased compared to the H1 of the fiscal year. Under these circumstances, we planned to sell a total of 120,000 unitsof five titles pachinko and six titles pachislot in the H2 of the fiscal year. Of this total, we sold two pachinko titles and threepachislot titles in the Q3, resulting in a total of 52,000 units.
Tsuburaya Productions Co., Ltd. (hereinafter, “Tsuburaya Productions”) is expanding the number of Ultraman fans byoffering video titles such as live-action and anime that are suitable for the fan base domestically and overseas through movies,
TVs, and distribution. At the same time, Tsuburaya Productions is promoting a medium-term business strategy that will
generate profits in both the imaging products business and merchandising. In the imaging products business, Tsuburaya
Productions is making steady progress in preparing for the release of the movie SHIN ULTRAMAN, including theestablishment of an official Twitter account and the release of special newsletters. Merchandising is also robust both
domestically and overseas.
Digital Frontier Inc. (hereinafter, “DF”) continued to respond to demand for CG video production centered on domestic
game companies and VFX video production from both domestic and overseas. Alice in Borderland, an original NETFLIX
video product for which DF was involved in VFX, was launched worldwide in December last year, and has been wellreceived, and the production of season 2 has been decided.
In other business, we have overcome the impact of the spread of coronavirus disease (COVID-19) in the H1 of the fiscal
year and are making steady progress.
Consequently, consolidated operating profit for the Q3 (October to December) was ¥1.46 billion, and the consolidated
results for the Q3 of the fiscal year under review were as follows: net sales of ¥29,182 million (down 21% YoY), operating
loss of ¥1,865 million (¥4,113 million in the same period of the previous fiscal year), ordinary loss of ¥1,690 million (¥3,970
million in the same period of the previous fiscal year), and loss attributable to owners of parent of ¥2,677 million (¥4,287
million in the same period of the previous fiscal year).
In Q4, we planned to sell a total of 70,000 units of pachinko three titles and pachislot three titles (excluding later-remodeledmachines). Based on this, we announced our full-year consolidated earnings forecasts on November 13, 2020, which areoperating profit of ¥1.2 billion, ordinary profit of ¥1.2 billion and profit attributable to owners of parent of ¥350 million.
Subsequently, in the Q4, declaration of emergency situation was relaunched on January 7, and strong requests from thegovernment and local governments to reduce the chances of going out and other contacts continued to hinder sales activities ofvisiting pachinko halls. In addition, the extension of declaration of emergency situation to March 7 is expected to continue thetendency for pachinko halls to refrain from purchasing new machines for the foreseeable future.
In light of these factors, we have decided to postpone the delivery of three titles in the six titles that we had planned to sellin the Q4 to the Q1 of the next fiscal year, when the spread of infections is expected to end. In the Q4 of the fiscal year underreview, unit sales are expected to be 25,000 units (currently on sale) and consolidation of operating loss are expected to reach2

Summary of Financial Information and Consolidated Business Results for the Nine Months Ended December 31, 2020

¥340 million. As shown in Table (1), we revised the forecast for the full-year consolidated results to operating loss ¥2.2
billion, ordinary loss ¥2.0 billion, and loss attributable to owners of parent ¥3.3 billion.
The breakdown of the three titles scheduled for delivery in the Q4 and delayed to the Q1 of the next fiscal year is asfollows.
Three titles which is to be delivered in Q4
Pachinko: P CODE GEASS Lelouch of the Rebellion (currently on sale)
Pachislot: ZETTAI SHOGEKI Ⅲ, etc., two titles in total
Three titles postponed to the next Q1
Pachinko: PACHINKO ULTRAMAN TARO2, etc., two titles in total
Pachislot: one title
In the Q1 of the next fiscal year, we will sell three titles (planned total of 50,000 units) for which sales have been
postponed, as well as 2-3 titles (currently under consideration) scheduled from the beginning. As a result, consolidated
operating profit for the Q1 of the next fiscal year is expected to be ¥2.0 billion or more ( ¥(2.4) billion for the Q1 of the fiscal
year under review).

Trends in sales title /unit sales and quarterly operating profit
H1

H2

Next Q1

Q4

TitlesQ1

Q2

postponed

Q3

Plan

Amendment

Variancefrom theInitialsales
forecast

previous
fiscal year

Total

titlesSales titles
Pachinko

―

―

2

3

1

(2)

➡

2

2-3

Pachislot

―

3

3

3

2

(1)

➡

1

Units sales

16,000 units

52,000 units

70,000 units

25,000 units(50,000) units➡ 50,000 units(0.92)

1.46

3.06(0.34)(3.40)―(3.32)(1.86)

1.20(2.20)(3.40)

5-6

Quarterly
operating profit(unit: billions(2.40)

2.0 ormoreof yen)Cumulative
total
operating profit(unit: billionsof yen)Table (1) Revisions to consolidated earnings forecasts (unit: millions of yen)
Year ended March 31, 2020

Results

Year ending March 31, 2021

Operating profit
Ordinary profit

713
939

Previous Forecast
1,200
1,200

Profit attributable toowners of parent

490

350

Revised forecast(2,200)(2,000)(3,300)(Note 1) All figures in this report are based on our estimates.
(Note 2) Merchandise names in this report are trademarks or registered trademarks of each company.

3

Increase (decrease)(3,400)(3,200)(3,650)Summary of Financial Information and Consolidated Business Results for the Nine Months Ended December 31, 2020

(2) Analysis of financial position(Assets)
Current assets decreased by ¥7,564 million from the end of the previous fiscal year to ¥43,016 million. This was mainly due
to a decrease in trade receivables.
Property, plant and equipment decreased by ¥266 million from the end of the previous fiscal year to ¥4,468 million. Thiswas mainly due to a decrease in buildings and structures.
Intangible assets decreased by ¥235 million from the end of the previous fiscal year to ¥2,757 million. This was mainly due
to a decrease in goodwill.
Investments and other assets increased by ¥231 million from the end of the previous fiscal year to ¥6,240 million. This was
mainly due to an increase in investment securities.
Consequently, assets decreased by ¥7,834 million from the end of the previous fiscal year to ¥56,483 million.

(Liabilities)
Current liabilities decreased by ¥2,831 million from the end of the previous fiscal year to ¥15,165 million. This was mainly
due to a decrease in trade payables.
Non-current liabilities decreased by ¥1,811 million from the end of the previous fiscal year to ¥10,228 million. This was
mainly due to a decrease in long-term borrowings.
Consequently, liabilities decreased by ¥4,643 million from the end of the previous fiscal year to ¥25,394 million.
(Net assets)
Net assets decreased by ¥3,191 million from the end of the previous fiscal year to ¥31,088 million. This was mainly due toa decrease in retained earnings.
(Analysis of cash flows)
Cash and cash equivalents (hereinafter referred to as “cash”) for the Q3 of the current fiscal year increased by ¥198 million
from the end of the previous fiscal year to ¥24,924 million.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥4,865 million (¥1,877 billion used in the same period of the previous fiscal
year). This was mainly due to a loss before income taxes of ¥2,324 million, a decrease in trade receivables of ¥8,487 million,a decrease in trade payables of ¥1,693 million, a decrease in inventories of ¥733 million, and a decrease/increase in
consumption taxes receivable/payable of ¥716 million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥917 million (¥1,220 million provided in the same period of the previous fiscal
year). This was mainly due to purchase of non-current assets of ¥447 million and payments for investments in capital of ¥260
million.
(Cash flows from financing activities)
Net cash used in financing activities was ¥3,749 million (¥5,597 million used in the same period of the previous fiscal
year). This was mainly due to repayments of long-term borrowings of ¥3,990 million, purchase of treasury shares of ¥365
million and cash dividends of ¥331 million.

4

Summary of Financial Information and Consolidated Business Results for the Nine Months Ended December 31, 2020

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

End of Q3 of current fiscal year
(as of December 31, 2020)

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

25,024
6,955
932
879
4,190
2,068
2,983
(16)

50,58043,016

1,644
3,090

1,645
2,822

4,734

4,468

2,156
836

1,938
818

2,992

2,757

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

1,325
373
4,682
(373)

1,653
369
4,619
(402)

Total investments and other assets

6,008

6,240

13,736

13,46664,31756,483

9,336
200

7,672
280

Current portion of long-term loans borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Other

5,329
127
251
14
2,736

3,712
28
164
9
3,297

Total current liabilities

17,99615,165

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

7,691
674
889
2,784

6,028
731
908
2,560

Total non-current liabilities

12,040

10,22830,03725,394

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings

Total liabilities

5Summary of Financial Information and Consolidated Business Results for the Nine Months Ended December 31, 2020

(Unit: Millions of yen)
End of Q3 of current fiscal year
(as of December 31, 2020)

Previous fiscal year
(as of March 31, 2020)
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares

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

7,948
7,579
16,879(1,946)33,76730,461

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

10
0
22

28
0
23

Total accumulated other comprehensive income

34

53

－

1

Total shareholders’ equity

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

6

477

572

34,27931,08864,31756,483

Summary of Financial Information and Consolidated Business Results for the Nine Months Ended December 31, 2020

(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income
Quarterly consolidated statements of income
Nine months ended December 31, 2020
(Unit: Millions of yen)
Nine months ended
December 31, 2019

Nine months ended
December 31, 2020

(April 1, 2019–December 31, 2019)(April 1, 2020–December 31, 2020)

37,16530,82929,182
22,027Gross profit

6,336

7,154

Selling, general and administrative expenses

10,449

9,019

Operating profit (loss)(4,113)(1,865)

16
79
138
－
17
76

4
2
14
182
12
93

328

309

46
61
19
57

71

Net sales
Cost of sales

Non-operating income
Interest income
Dividend income
Purchase discounts
Share of profit of entities accounted for using equity method
Distributions from investments
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of investment securities
Loss on litigation
Losses from coronavirus disease (COVID-19)
Other

185

133

(3,970)(1,690)

16
17

－

34

0

3
212
58

10

－
1

Total extraordinary losses
Profit (loss) before income taxes

－
28
34

0

－
10
609
3

275

634

(4,212)(2,324)

Income taxes

76

267

Profit (loss)(4,288)(2,592)

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

7

(0)

85

(4,287)(2,677)

Summary of Financial Information and Consolidated Business Results for the Nine Months Ended December 31, 2020

Quarterly consolidated statement of comprehensive income
Nine months ended December 31, 2020
(Unit: Millions of yen)
Nine months ended
December 31, 2019

Nine months ended
December 31, 2020

(April 1, 2019–December 31, 2019)(April 1, 2020–December 31, 2020)(4,288)(2,592)

(476)
0
1

26
0
0

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

(474)

27

Comprehensive income

Total other comprehensive income(4,762)(2,564)Comprehensive income attributable to
Owners of parent
Non-controlling interests(4,765)
3(2,658)94

8

Summary of Financial Information and Consolidated Business Results for the Nine Months Ended December 31, 2020

(3) Quarterly consolidated statements of cash flows(Unit: Millions of yen)
Nine months ended
December 31, 2019

Nine months ended
December 31, 2020

(April 1, 2019–December 31, 2019)(April 1, 2020–December 31, 2020)(4,212)
1,052
419
2
(119)

(2,324)
611
217
16
(87)

(0)

(4)

30
(96)
61
46
3,525
(40)
(132)
(4,337)
212
603
1,167

57
(6)
(182)
71
8,487
733
4
(1,693)
(716)
246
(311)

(1,815)

5,117

96
(46)
(112)

5
(71)
(186)

Net cash provided by (used in) operating activities(1,877)

4,865

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from redemption of investment securities
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sales of shares of subsidiaries and associates
Payments for investments in capital(1,575)
48
(385)
200
(215)
3,593
(10)
1
(336)

(252)
4
(194)

Loan advances
Collection of loans receivable
Other, net

－
46
(145)

(47)
32
(100)

Net cash provided by (used in) investing activities

1,220

(917)

(1,496)250(3,983)
－
(331)
(35)

80
710
(3,990)
(365)
(331)
147

(5,597)(3,749)(0)0Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in retirement benefit liability
Interest and dividend income
Share of loss (profit) of entities accounted for using equity method
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in merchandising rights advances
Increase (decrease) in trade payables
Decrease/increase in consumption taxes receivable/payable
Investments in capital depreciation
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes (paid) refund

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

－
(44)
43
(99)
－
(260)

Net increase (decrease) in cash and cash equivalents(6,255)

198

Cash and cash equivalents at beginning of year

28,807

24,725

Cash and cash equivalents at end of period

22,552

24,9249

Summary of Financial Information and Consolidated Business Results for the Nine Months Ended December 31, 2020

(4) Note regarding the quarterly consolidated financial statements(Note regarding the operation of the company as a going concern)
No relevant items(Note regarding occurrence of significant change in amount of shareholders’ equity)
No relevant items(Application of the accounting method specific to quarterly consolidated financial statements)
Calculation of tax expenses

Tax expenses are calculated by reasonably estimating the effective tax rate after the application of tax effectaccounting to income before income taxes for the consolidated fiscal year including the Q3 under review, andmultiplying income before income taxes by this estimated effective tax rate.

10