2nd quarter(2011.7 – 2011.9)

Financial Presentation(1st Half of the Year Ending March 31, 2012)
November 4, 2011
THE GREATEST LEISURE FOR ALL PEOPLE

FIELDS CORPORATION

2767
Copyright 2011 FIELDS CORPORATION All rights reserved.

1

IndexSummary
Consolidated P/L
Pachinko/Pachislot Sales
Consolidated B/S (Overview)
Consolidated Statement of Cash Flows (Overview)
Segment Information
Profit Earning Capacity of Entertainment Business (Fields Group Business)
Entertainment Business (Fields Group Business) Summary-Mobile and On-line Service Field-Business Reorganization in Sports Field-The Premier Issue of “HERO’S Monthly”-The Release of BERSERK has been Decided
Forecast for Full Year (Consolidated Basis)
Progress of the Mid-Term Management Plan
Business Scheme
Social Contribution Activities

3
4
5
6
7
8
10
11
12
13
14
15
17
19
20
21

Copyright 2011 FIELDS CORPORATION All rights reserved.

2

Q2 of the Year Ending March 31, 201201. Summary<Pachinko/Pachislot Sales> The figures in the parentheses are changes from the same period last year.

• 1 new pachinko and 2 new pachislot machines released with a focus on the release of multiple major titles
during the second half of the fiscal year
Pachinko machine sales
89,000 machines

Pachislot machine sales(137,000 machines down)

61,000 machines(4,000 machines down)<Consolidated sales for 1st half> (The figures in the parentheses are year-over-year comparisons)
Net sales

Operating income

Ordinary income

Net income¥33.35 billion (77.5%)¥1.58 billion (17.2%)¥1.71 billion (18.0%)¥2.42 billion (44.6%)⇒ Recorded deferred tax assets in connection with the dissolution and liquidation of a subsidiary (JSM)<Other Entertainment>• Comic, “HERO’S Monthly” : First edition issued on Nov. 1, 2011 (Collaboration with Shogakukan Creative Inc.)• Movie, “BERSERK”: Feb. 4, 2012 chosen as release date
(Planned and produced by Lucent Pictures Entertainment, Inc.)• Movie, “Ultraman Saga”: Mar. 24, 2012 chosen as release date (Tsuburaya Productions Co., Ltd.)

Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

3

Q2 of the Year Ending March 31, 2012

02. Consolidated P/L
Sales and income decreased on a year-over-year basis due to the Company’s plan to focus on increasing
sales in the pachinko/pachislot (PS) related business during the second half of the year
(Unit: Billion yen)

Year Ended March 31, 2011
Q1
Net sales

SG&A expenses

Operating income

Ordinary income

Net income

Q2

H1

Year Ending March 31, 2012
Full-Year

Q1

Q2

H1

YoY

21.34

21.67

43.01

103.59

17.63

15.72

33.35

5.31

4.49

9.80

21.99

5.30

5.10

10.40

(24.9%)(20.7%)(22.8%)(21.2%)(30.1%)(32.4%)(31.2%)

2.34

6.84

9.18

13.13

(0.22)

1.80

1.58(11.0%)(31.6%)(21.3%)(12.7%)(-1.2%)(11.5%)(4.7%)

2.51

6.99

9.50

13.68

(0.26)

1.97

1.71(11.8%)(32.3%)(22.1%)(13.2%)(-1.5%)(12.5%)(5.1%)

1.47

3.95

5.42

7.52

(0.28)

2.70

2.42(6.9%)(18.2%)(12.6%)(7.3%)(-1.6%)(17.2%)(7.3%)

77.5%

106.1%

17.2%

18.0%

44.6%

* “Q2” and “YoY” is calculated as the other items deducted from the total figure on the sheet
Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

4

Q2 of the Year Ending March 31, 201203. Pachinko/Pachislot Sales
Pachinko machine: 1 new machines released; 89,000 machines sold (down 137,000 machines year-over year)
Pachislot machine: 2 new machine released; 61,000 machines sold (down 4,000 machines year-over-year)(Unit: 10 thousand machines)

Number ofsales

Pachinkomachines

Pachislot
machines

Year Ended March 31, 2011
H1

Full-Year

22.6

Year Ending March 31, 2012
Increase/
H1
decrease

26.2

8.9

(13.7)

Main titles
Q1

-

Q2

CR The story of ayumi hamasaki－introduction
72,000 machines

Q3

-

Q1

[Ongoing sale title from the previous fiscal year]
MOBASLO Evangelion—for your own wish
(Total sales: 78,000 machines)
22,000 machines

Evangelion:
205,000 machines

6.6

21.7

6.1

SAMURAI 7

(0.4)
Q2

12,000 machines
Kaze no Youjinbou—Memory of Butterflies
23,000 machines
Rahxephon

Q3
Street Fighter IV

Total

29.3

48.0

15.1

(14.1)

Pachislot machines: Onimusha: Dawn of Dreams: 36,000 machines (ongoing sales);Evangelion: 10,000 machines (ongoing sales); Gamera: 13,000 machines
Pachinko machines: CR Evangelion—Evangelical of the beginnings: 205,000 machines
Source: Fields© avex management inc. © avex entertainment inc. © Bisty© Kurosawa Production K.K./Sammy, DENTSU INC, PIERROT Co., Ltd., NTV © Sammy © RODEO© CAPCOM CO., LTD., © CAPCOM U.S.A., INC. ALL RIGHTS RESERVED.
“STREET FIGHTER” is a registered trademark of CAPCOM U.S.A., INC.

Copyright 2011 FIELDS CORPORATION All rights reserved.

5

2Q of the Year Ending March 31, 201204. Consolidated B/S (Overview)(Unit: Million yen)

End of
September2010

End of
March
2011
(I)

End of
September
2011
(II)

Increase/
Decrease

Main factors causing the increase/decrease (II) – (I)(II-I)(18,801)

Decrease in notes and accounts receivable—
trade from pachinko/pachislot machine sales

39,51451,051

32,250(Cash and cash equivalents)

21,832

15,87318,065

2,192 Increase from pachinko/pachislot machine sales(Inventories)

1,948

1,358

2,502

1,144

Total fixed assets

27,75027,92030,851

2,931(Total tangible fixed assets)

9,921

10,08910,596507(Total intangible fixed assets)

4,844

5,070

4,857

(213)

(Total investments and other assets)

12,984

12,76015,397

2,637 Increase in deferred tax assets

67,26578,971

63,102(15,869)

Decrease in notes and accounts payable—(17,382) trade from pachinko/pachislot machine sales
Decrease in accrued income taxes, etc.

Total current assets

Total assets

17,02827,587

10,205-85

85

Total fixed liabilities

4,526

4,362

4,211

Total liabilities

21,55531,94914,417

Total net assets

45,70947,021

48,685

Total liabilities and net assets

67,26578,971

63,102

Total current liabilities(Short-term borrowings)

0(151) Redemption of corporate bonds(17,532)
1,664 Increase in retained earnings(15,869)

Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

6

Q2 of the Year Ending March 31, 201205. Consolidated Statement of Cash Flows (Overview)(Unit: Million yen)

Year Ending March 31, 2012

Year Ended March 31, 2011

H1

Full-Year

H1

Factors
Decrease in notes and accounts receivable—trade

11,199Cash flows from operating activities

8,005

24,829(14,678)(4,142)

5,332 Decrease in notes and accounts payable—trade
Income taxes paid
Purchases of tangible fixed assets

Cash flows from investing activities(2,738)(4,356)

(816)
(531)
(400)

(1,932) Purchases of intangible fixed assets
Purchases of investment securities

Cash flows from financing activities(2,580)(3,915)paid(1,241) Dividends
Redemption of corporate bonds

Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents

(4)

(7)

(5)

5,875

(274)

2,153

Cash and cash equivalents at beginning of period

15,906

15,906

15,632

Cash and cash equivalents at end of period

21,782

15,632

17,785

Cash flows from operating activities

Cash flows from investing activities

(829)
(370)

Cash flows from financing activities

11,19911,000
8,005
7,000

5,332

3,000
(1,000)(2,738)(5,000)(1,932)(2,580)(4,356)

September 2010

(1,241)(3,915)

March 2011

September 2011

Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

7

Q2 of the Year Ending March 31, 201206. Segment Information
Sales and operating income for each Group company were broadly as expected(Unit: Million yen)

Pachinko
Pachislot

(I)

(II)

(III)

MobileSportsEntertainment

OthersSum of segments(I), (II) and (III)

Adjustment

Consolidated

Consolidated/
NonNon-conconsolidated solidated
ratio

H1 of the Net sales
Year
EndingMarch 31,
Operating2012
income29,568

1,149

1,031

2,299

4,479

(696)

33,352

28,481

1.2

1,711

62

(34)

(139)

(111)

(18)

1,582

1,858

0.9

H1 of the Net sales
Year
Ended
March 31,
Operating2011
income38,499

1,059

1,082

2,615

4,756

(243)

43,01237,005

1.2

9,109

199

(140)

58

117

(44)

9,182

9,196

1.0

Net sales(8,931)

90

(51)

(316)

(277)

(453)

(9,660)(8,524)-

Operatingincome(7,398)

(137)

106

(197)

(228)

26

(7,600)(7,338)-

Increase/
Decrease

Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

8

Entertainment Business (Fields Group Business)

Copyright 2011 FIELDS CORPORATION All rights reserved.

9

Q2 of the Year Ending March 31, 201207. Profit Earning Capacity of Entertainment Business (Fields Group Business)
Some mobile related companies have invested in the business.
Each Group company aims to contribute to improved results by raising its actual profitability.
(Unit: Million yen)Group business’s earning capacity by segment
H1 of the Year Ending March
31, 2012

Net sales

Pachinko
Pachislot

Total
MobileSports Entertainment

Others29,568

1,149

1,031

2,299

4,479

1,711

62

(34)

(139)

(111)

Amortization of goodwill*

-

-

136

136

Development investment costfor content share by the Group

-

-

85

85

Sub total
(II)

-

-

221

221

Group business earning
capacity(I) + (II)

62

(34)

82

110

Operating income(I)

Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

* The figures are calculated based on the straight-line method.

10

Q2 of the Year Ending March 31, 201208. Entertainment Business (Fields Group Business) Summary
Net sales<Changes in net sales and operating income in Group business (Simple addition)>
Amortization of goodwill
17,922 *1(Unit: Million yen)

12,700 *2

10,08410,000

1,000

4,479

4,857
261

0

(2)

1,000

727

110

0

(111)
(1,000)(2,051) *1

2009/03

OperatingincomePS content development cost2010/03

2011/03

Summary for 1st half under review<Entertainment Business Topics>[Mobile and on-line service fields]• Enhance services using pachinko/pachislot (PS) related
contents• R&D and investment have been made in non-PS fields

2012/03 Q2

2012/03 Estimates(2,000)[IP development and creation]• Monthly comic, “HERO’S”: First edition issued• Animation movie, “BERSERK”: Decision to releasemade• Movie, “Ultraman Saga”: Decision to release made[Sports field]• Business reorganization: JSM was divested in a
simplified absorption-type divestiture and dissolved in a
special liquidation.

Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

*1 The net sales and operating income for the year ended March 31, 2009 include the values for the former Game Field (a discontinued department).
*2 Net sales are shown on a consolidated-non-consolidated difference basis.

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Q2 of the Year Ending March 31, 201209. Entertainment Business – Mobile and On-line Service Field
Mobile related business: FutureScope Corporation and IP Bros. Incorporated continue to aggressively
invest in services with the aim of increasing the number of paying members(10,000 persons)<Pachinko/Pachislot (PS) related contents>
・ Invested in various services
・ Took a variety of measures with the aim ofincreasing the number of paying members

150

Non-paying
Mobaslo members

100<Non-Pachinko/Pachislot contents>
・ Conducted research and development by using
content assets held by the Fields Group companies
・ Committed to increasing profitability in the on-line
service field
April

Changes in the number of mobile andon-line service members

Non-paying members ofPspace, Nanapachi, etc.
50

Number of paying mobile
and other members

0
March
2007

May

Launch of Nanapachi:Line up consists of a totalof 21 machine models as of
September 2011

March
2008

March
2009

March
2010

June

Enhancement of Evangelion
content:
Titles in the Evagelion series
were released during 3
successive months through to
May 2011.

March
2011

September

Support for smartphones
began in June.
Apps became available on
September 2011.
Aiming at expanding thenumber of registered members.

Launched a virtual pachinko
hall, called “Fiepara” in the
Fields Mobile site.

Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

12

Q2 of the Year Ending March 31, 2012

10. Entertainment Business – Business Reorganization in Sports Field
The sports field was drastically reorganized.
Japan Sports Marketing Inc. (JSM) was divested in a simplified absorption-type divestiture anddissolved in a special liquidation.

JSM

Fitness club business

Divested in a simplified
absorption-type
divestiture, to which theCompany succeeded.

Management of a fitness club, “TOTAL Workout”

Dissolved/liquidated
Aug. 2011

Passing of resolution forthe business reorganization

Passing of resolution for
Sep. 2011 the absorption-type
divestiture
Nov. 2011

Passing of resolution forthe dissolution of JSM

Jan. 2012

Completion of the special
liquidation (tentative)

Rights businessSponsor sales, sports related broadcasting rights sales

Athlete management business
Management of athletes

ClosedPlayers were transferredor handled accordingly,
and the business was
closed.

ImpactImpacton
onP/L
P/Lforfor1st1sthalf
half• Deferred tax assets were recorded in connection with the dissolution and liquidation of JSM

Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

13

Q2 of the Year Ending March 31, 2012

11. Entertainment Business – The Premier Issue of “HERO’S Monthly”
Content development related fields (IP development and creation):
HERO’S Inc. has issued the first edition of a futuristic comic, “HERO’S Monthly”<Background to the issue of “HERO’S Monthly” >• Pachinko/pachislot (PS) related IP with high quality have been used up,
creating the need for new IP to be provided.
• Jointly established HERO’S Inc. with Shogakukan Creative Inc.,a Shogakukan Group company, in April 2010.
• “HERO’S Monthly” was first issued on November 1, 2011
(to be issued on the first day of each month).
<Concept/Characteristics>• Concept: Aim to create an international comic that is successful
throughout the world, not only in Japan.
• Establish it as a major manga comic.
• Build a unique distribution network for it.
<Future development>• A series of new content will be added.
• Cross-media development will be accelerated in a variety of media, including
Pachinko/Pachislot.
Source: Fields© HERO’S INC. All Rights Reserved.

Copyright 2011 FIELDS CORPORATION All rights reserved.

14

Q2 of the Year Ending March 31, 2012

12. Entertainment Business – The Release of “BERSERK” has been Decided
Video related field (animation field): Lucent Pictures Entertainment, Inc.
has decided to release an animated movie, “BERSERK I THE HIGH KING’S EGG”

<Background to the release of BERSERK>BERSERK I THE HIGH KING’S EGG• This is a large project that Lucent Pictures Entertainment, Inc., which isengaged in the animation/3D business, has been planning and producing
since its establishment.
• The first series will be premiered in February 2012.
<Concept/Characteristics>• “BERSERK,” a timeless masterpiece providing a grand view of the world,
has been made into a complete movie.
• The “BERSERK” manga is a tremendous work, with a total of over 30
million copies sold not only in Japan but also around the rest of the world
including the U.S., Russia, France, Germany and Italy.

• Original author: Kentaro Miura• Director: Toshiyuki Kubooka• Produced by STUDIO 4°C, an animation studio with the most advanced
technology in Japan.

• Planning and Produce:
Lucent Pictures Entertainment, Inc.

<Future development>• Production: STUDIO 4°C• Plans for tie-ups in a variety of media are being promoted.

• Distributor: Warner Bros.

• A trilogy of films that will be successively released.

(Titles omitted)

Source: Fields© Kentaro Miura (Studio Gaga), Hakusensya Incorporated, BERSERK FILM PARTNERS

Copyright 2011 FIELDS CORPORATION All rights reserved.

15

Forecast for the Full Year Ending March 31, 2012

Copyright 2011 FIELDS CORPORATION All rights reserved.

16

Q2 of the Year Ending March 31, 2012

13. Forecast for Full Year (Consolidated Basis)
The forecast for the full year ending March 31, 2012 remains the same.
Multiple major titles are scheduled to be released in the second half of the fiscal.
(Unit: Billion yen)

Year Ending March 31, 2012

Year Ended March 31, 2011

H1
Net sales

Full-Year

Full-Year
Forecast

H1

43.01

103.5933.35

100.00

9.80

21.99

10.40

24.00

(22.8%)(21.2%)(31.2%)(24.0%)

Overview
YoY
96.5%

Progress rate
33.4%
 Multiple major pachinko andSG&A expenses

Operatingincome

9.18

13.13

1.58

14.00

(21.3%)(12.7%)(4.7%)(14.0%)

109.1%

43.3%

106.6%

11.3%

pachislot titles that can drive
market revitalization are scheduled
to be released in the 2nd half of theyear.
 Full year forecast: No change

Ordinary income

9.50

13.68

1.71

14.00

(22.1%)(13.2%)(5.1%)(14.0%)

102.3%

12.2%

 Interim dividend: ¥2,500

Year-end dividend: ¥2,500
Net income

5.42

7.52

2.42

8.00

(12.6%)(7.3%)(7.3%)(8.0%)

106.4%

30.3%* “YoY” is calculated as the other items deducted from the total figure on the sheet
Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

17

Reference

Copyright 2011 FIELDS CORPORATION All rights reserved.

18

Q2 of the Year Ending March 31, 2012

14. Progress of the Mid-Term Management Plan
Target operating income for the year ending March 31, 2014 of ¥25 billion or more
Target contribution by Group companies: 20%¥25.0 billion
or more<Year Ending March 31, 2012>
Initial forecast¥14.0 billion¥20.0 billion¥20billion¥17.0 billion<Year Ended March 31, 2011>
Initial forecast¥11.0 billion¥10billionPachinko/
Pachislot(PS)
Business¥14.0 billion¥10.0
実 billion績

Results for the Year
Ended March 31, 2010¥8.12 billion

21.0
Results for the Year
Ended March 31, 2011¥13.13 billion
Synergistic
benefits

0.5
Year Ended
March 31, 2010

Year Ended
March 31, 2011

Period to further strengthen pachinko/
pachislot planning and development capabilities
Period to restructure the group portfolio

1.0Year Ending
March 31, 2012

2.0
Year Ending
March 31, 2013

First Term of Mid-Term Plan

4.0

OthersYear Ending
March 31, 2014
Second Term of
Mid-Term Plan

Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

19

Q2 of the Year Ending March 31, 201215. Business Scheme
Comics andbooks

Animation

MoviesDramas andother TV

Music
(Artists)

Games

Paper
(Magazinesand comics)

Sports, etc.

High-quality intellectual property rights (IPs)

Sales
Planning

Pachinko
Pachinkohalls
hallsnationwide
nationwide

Advertisingplanners
Visualcreators
Visualtechnologies
Gamecreators
Copywriters
TV writers
andplanners

Cross-media development

Sales
consignment

Content

Cross-media
development

Product
planning

Commercialization

Pachislot
manufacturers

Intellectual property
development

Cutting-edge creativity & technologies

Pachinko
manufacturers

Mobile phones
New mobile
information
devicesTV

CDs and DVDs(sales and rentals)

MoviesVideo game
consolesCharactergoodsLive theater

Fans
Fans
Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

20

Q2 of the Year Ending March 31, 2012

16. Social Contribution Activities
The Ultraman Foundation has been established to
implement support activities for children

FOUNDATION FOR CHILDREN, NOW AND THE FUTRE

http://www.ultraman-kikin.jp/

In the immediate aftermath of the Great East Japan Earthquake, the Fields Group, together with Tsuburaya Productions Co., Ltd. and all otherparticipating Group companies, came together to establish the Ultraman Foundation. In seeking to offer our heartfelt encouragement to those mostimpacted by the disaster, especially to the children who are our hope and are essential to creating a new future in the region, we channeled ouraspirations for the future, and initiated support activities from the Ultraman Foundation that will last well into the future.
On April 10, 2011, we provided relief supplies to Ishinomaki City, Minamisanriku Town, and Kesennuma City in Miyagi Prefecture, and held an
Ultraman show there to bring smiles back to the faces of children. Then, we expanded the scope of our activities to perform similar activities in Chiba,
Fukushima, and Iwate Prefectures.
The Ultraman Foundation will, not only giving donations, but also continue to carry out support activities in all kinds of ways for the welfare and wellbeing of those who were affected by the tragedy.

Main activities of Ultraman Foundation
Apr. 10 Visited Ishinomaki city, Minamisanriku Town, and Kesennuma city in Miyagi for support
May 19 Donated 30 million yen to Miyagi
May 29 Visited Asahi city, Chiba for support
Jul. 9 Donated 20 million yen to Fukushima, and visited Sukagawa city in Fukushima forsupportJul. 10 Visited Big Palette Fukushima in Koriyama city in Fukushima for support
Aug. 5 Visited Ishinomaki city in Miyagi for support
Sep. 16 Donated 20 million yen and microbus to Iwate
Sep. 17 Visited Miyako city and Otsuchi town in Iwate for support<Fields Group’s CSR Activities>
For details about Fields Group’s CSR
activities, please refer to the following
pages in our“ANNUAL REPORT 2011.”
P. 14,“Feature: The Great East Japan Earthquake– Impact and Recovery”
P. 28,“Fulfilling Our Responsibility to Society”
T ANNUAL REPORT 2011 (Fields’ IR pages)
http://www.fields.biz/ir/e/library/annual_report/

Source: Fields

Copyright 2011 FIELDS CORPORATION All rights reserved.

21

Disclaimer/Contact

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

IR Section, Corporate Communications Office
Contact

TEL: +81-3-5784-2111

E-mail: ir@fields.biz

Copyright 2011 FIELDS CORPORATION All rights reserved.

22