Summary(Translation)
Fields Corporation
Summary of Financial Information and Business Results (Consolidated)
for the Quarter Ended December 31, 2005
(Third Quarter, Year Ending March 31, 2006)
February 10, 2006
Company Name:

Fields Corporation(URL: http://www.fields.biz)
JASDAQ (Securities code: 2767)
Hidetoshi Yamamoto
President, Representative Director and CEO
Hiroyuki Yamanaka
General Manager, Administration Division for Board of Directors
Tel: (03) 5784-2111

Listed on:
Representative Director:
Inquiries:

1. Notes to quarterly financial information(1) Simplified methods applied for accounting (Yes/No): Yes
Simplified methods were partially applied for calculating tax expense and other items.
(2) Changes in accounting methods since the most recent fiscal year (Yes/No): No(3) Changes in the scope of consolidation or application of the equity method (Yes/No): Yes
Newly consolidated companies: -; Excluded companies: 2; Newly added equity method companies: -;Excluded equity method companies: On October 1, 2005, three consolidated subsidiaries, namely Professional Management Co., Ltd., Total Workout
Corporation and J. Sakazaki Marketing Ltd. merged to form Japan Sports Marketing, Inc. As a result, the number ofcompanies included in the scope of consolidation was reduced by two.
2. Summary of business results for the nine months ended December 31, 2005 (April 1 to December 31, 2005)(1) Operating results
Net sales
Nine months ended
December 31, 2005
Nine months ended
December 31, 2004
Year ended
March 31, 2005

Operating income

Millions of yen(% change)

Millions of yen(% change)

Millions of yen(% change)

43,957( 7.1)

1,359(-58.1)

1,754(-48.4)41,027(-11.2)

3,241(-52.4)3,401(-52.3)81,65812,097

Net income
Nine months ended
December 31, 2005
Nine months ended
December 31, 2004
Year ended
March 31, 2005

（Rounded down to nearest million）
Ordinary income

12,480Net income per share

Millions of yen(% change)

683(-66.2)2,024(-48.9)6,926
1

Diluted net income per share

Yen

Yen

1,968.81−

5,925.30−

19,888.61−

Notes: 1. Average number of shares outstanding
Nine months ended December 31, 2005:
Nine months ended December 31, 2004:
Year ended March 31, 2005:

347,000
341,666
343,000

2. Percentages for net sales, operating income and other items denote changes compared with thecorresponding period of the previous fiscal year.

Qualitative data relating to consolidated operating results
In line with its management philosophy of providing "the greatest leisure for all people," the Fields Group is
implementing a content provider strategy aimed at supplying multi-use content not only for pachinko/pachislot machines
but also a wide range of other fields. In this way it seeks to achieve the steady enhancement of corporate value andshareholder value.
In recent years the Japanese Ministry of Economy, Trade and Industry has been advocating a strategy for the creation of
new industries to underpin the Japanese economy in the next generation. Within the strategy, importance is placed onefforts to nurture and expand content originated in Japan, such as animations, comic books (manga), movies and music.
Given this, the Fields Group has positioned its content provider strategy, centered on digital content, as the driving force
of its business operations. In the game field, D3 Publisher Inc. (D3P) engages in an integrated combination of content
planning, development and distribution based on three pivotal bases in Japan, the U.S. and Europe. Japan Sports
Marketing, Inc., a pioneer in the sphere of sports marketing in Japan, has significant influence with major Japanese andoverseas sporting bodies in such sports as baseball, soccer, rugby and golf. Its diverse array of sport-related activities
include not only the holding and management of sporting events and the sale of broadcasting rights but also the
management of the careers of top-ranking sportsmen and women and the operation of gymnasiums to provide support forthe physical training of prominent athletes. Sports are attractive by virtue of the fact that they have global content thattranscends the barriers of national borders and languages, and the varied range of sports content that is generated in thisfield is a driving force in the development of the activities of all Group companies.
The Company's alliance with Kadokawa Haruki Corporation, an equity method affiliate, is progressing well. Thatcompany's theater production of Otokotachi no Yamato, launched at the end of 2005, has been a major hit and has been
producing a powerful media mix of spin-offs in the spheres of movies, publishing and music. All Group companies will
be implementing further multi-use applications of Kadokawa Haruki Corporation content.
In our core field, the pachinko/pachislot business, the industry has been maturing progressively, led by its upstream
component. This has been reflected in the listing of the shares of leading manufacturers, and this maturation has become
more marked by developments such as the filing of listing applications, at the end of last year, by pachinko hallmanagement companies. We believe that the industry's maturing in this way will give impetus to the shift towards asounder and more sophisticated market. We also expect that in the development of pachinko/pachislot machines this trend
will bring about a major change in which the degree of dependence on the speculative aspect of machines will decline
significantly, and importance will instead be given to highly entertainment-oriented content that appeals to a broader
range of people. This trend can also be expected to act as a catalyst that will stimulate major companies in other industries
to enter the pachinko field, creating an opportunity for strong progress in the pachinko market over the medium term.
Fields regards such a change in the structure of the industry as offering a major business opportunity, and all Group
companies will work in unison to step up their implementation of the content provider strategy.
Amid this environment, in order to ensure ongoing strong progress Fields has given the 2005 fiscal year the status of aterm for the inspection, verification and improvement from every possible angle in each of its business activities, and has
been addressing an array of issues that include the strengthening of its compliance and corporate governance systems. As
a result, considerable progress has been made in enhancing relationships with the manufacturers with which the Company
2

has alliances in the pachinko/pachislot business, and it has established a structure that will ensure the prompt placementon the market of pachinko/pachislot machines of the kind it wants, namely those that place emphasis onentertainment-rich content.
Amid these steps to create a new environment, in the field of pachinko machines the first nine months of the fiscal year
(April 1 to December 31, 2005) saw the launch of the CR Marilyn Monroe in October 2005 and the CR Ashita ga Arusa
Yoshimoto World in December. The first of these features the world-famous film star while the second, which appeared
under a large-scale tie-up with the full cooperation of Yoshimoto Kogyo Co., Ltd., features 10 leading comedy stars.
Both were developed with the objective of widening the base of pachinko fans by appealing to broad consumer
segments, and have had an excellent reception in halls nationwide.
In the field of pachislot machines the Neon Genesis Evangelion, launched in September 2005 as the first machine in theindustry to conform with the new industry regulations, continued to sell well through the third quarter. To date it has
maintained the largest share, in terms of both sales and installations, of the market for machines that conform with the new
regulations. With respect to machines conforming with the old industry regulations the Company has been monitoring
how the market is likely to move in the future, and it has been devoting efforts to boosting sales of machines sold throughthe agency model, under which it mediates sales as an agent.
A consequence of marketing efforts such as those described above was that in the Company's consolidated results there
were increases in both net sales and SG&A expenses, owing to the change of D3P's status from that of equity-method
affiliate to consolidated subsidiary during the year under review. During the year, D3P has been implementing active
strategic capital measures, including a shift to holding-company status, and in its fiscal year ended October 2005 it
posted record-high ordinary income. Other consolidated subsidiaries have been performing in accordance withprojections.
In respect of non-consolidated results, in the field of pachislot machines, as a result of monitoring market movements
closely, we have postponed until the fourth quarter and beyond the launch of machines that conform with the oldindustry regulations and are sold under the distribution model, in which we purchase machines from their manufacturers
and sell them to pachinko hall operators, and then report the full sales amount for the machines sold. Since emphasis has
been placed on sales of machines sold through the agency model where only the sales commissions paid by the
manufacturers are reported, net sales fell by ¥1,523,901 thousand or 3.8% year-on-year. Gross profit declined by¥711,488 thousand or 6.0%, primarily because of increased procurement costs necessitated by the high-performancecomponents and materials required for Onimusha 3, which has continued to sell well since the previous year. In addition,
SG&A expenses rose by ¥1,454,248 thousand or 17.0%. This is attributable to two factors: first, an increase inpersonnel, primarily in the Product Development Division and Marketing Office relating to the development of theCompany's planning and development structure, which handles an integrated series of activities ranging from theacquisition of copyrights (merchandising rights) to product planning and the development of image and LCD units, andsecond, active investment in information technology for the purpose of enhancing business efficiency, principally in
mission-critical systems, in preparation for the future expansion of the sales network.
As a result, in the period under review net sales increased 7.1% year-on-year, to ¥43,957,425 thousand, operating income
declined 58.1%, to ¥1,359,330 thousand, ordinary income fell 48.4%, to ¥1,754,203 thousand, and net income was down
66.2%, to ¥683,178 thousand.
(2) Financial position
Total assets

At December 31, 2005
At December 31, 2004
At March 31, 2005

Shareholders’ equity

Shareholders’ equity
ratio

Shareholders’ equity
per share

Millions of yen

Millions of yen%

Yen

47,55840,254
72,58433,31728,37833,426

70.0
70.5
46.0

96,014.71
81,781.54
96,026.73

3

Cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents atperiod-end

Millions of yen

Millions of yen

Millions of yen

Millions of yen

5,836(2,423)(1,145)

15,603(4,149)(3,578)

9,629

7,340

2,965

(5,257)

10,177

13,326Nine months ended
December 31, 2005
Nine months ended
December 31, 2004
Year ended
March 31, 2005

Qualitative data relating to changes in consolidated financial position
Cash and cash equivalents at the end of the nine-month period ended December 31, 2005, stood at ¥15,603,915 thousand,representing an increase of ¥2,277,658 thousand from March 31, 2005, with income before income taxes and minority
interests of ¥1,709,068 thousand. This was attributable primarily to decreases in notes and accounts receivable – trade andaccounts payable – trade, and increased expenditure for such purposes as the relocation of branch offices.
Cash flows from operating activities
Net cash provided by operating activities totaled ¥5,836,825 thousand. The principal components of this were a declineof ¥31,986,304 thousand in notes and accounts receivable – trade and of ¥22,734,796 thousand in notes and accounts
payable – trade, and income taxes paid of ¥5,521,396 thousand.
Cash flows from investing activities
Net cash used in investing activities totaled ¥2,423,936 thousand. The principal factors in this were purchases ofproperty and equipment totaling ¥690,405 thousand (primarily purchases of property arising as a result of branchrelocations), and the acquisition of shares of an affiliate totaling ¥962,560 thousand.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥1,145,001 thousand. This was attributable primarily to repayments ofshort-term borrowings totaling ¥220,200 thousand, repayments of long-term borrowings of ¥262,201 thousand, anddividend payments totaling ¥1,284,808 thousand.
3. Forecast earnings for the year ending March 31, 2006 (April 1, 2005, to March 31, 2006)
Net sales
Full year

Ordinary income

Net income

Millions of yen

Millions of yen

Millions of yen

91,753

11,127

5,793

Reference: Projected net income per share for the year ending March 31, 2006: ¥16,391.93
The enhancement of relationships with allied manufacturers referred to above has been markedly successful in the
fourth quarter, building a solid mechanism for product planning, development and supply. In consequence, theCompany has positioned itself to bring a succession of highly competitive products to the market and has progressedwith preparations to introduce, during the fourth quarter, three pachislot machines compliant with the old regulations
that it is currently holding, five pachislot machines that conform with the new regulations, and five pachinko machines.
4

CR Sakigake!! Otoko Juku, launched in January 2006, has enjoyed a favorable reception, and it is being followed by CR
Neon Genesis Evangelion: Second Impact, which has been attracting a better-than-expected inflow of orders. In addition,
Ore no Sora, a pachislot machine compliant with the old regulations that has been launched in the fourth quarter, isattracting an increasing volume of orders backed by strong support from client halls throughout Japan. In consequence,
the Company is forecasting that results for the full year will be favorable and in line with projections. With respect tofuture product launches the Company will monitor trends among client pachinko halls, pachinko fans and elsewhere,
and will issue announcements promptly whenever a decision has been made. In respect of the results forecasts forconsolidated subsidiaries, their overall performance is proceeding according to plan.
Forecast earnings for the year ending March 31, 2006, are unchanged from the Announcement of Revisions to Forecast
Earnings issued on August 26, 2005.

5

Summary Consolidated Balance Sheets
PeriodItem(Thousands of yen, %)(Fiscal year ended
March 31, 2005)(Third quarter ended
December 31, 2004)(Third quarter ended
December 31, 2005)

As of December 31, 2004

As of December 31, 2005

Amount% total% totalAmountAs of March 31, 2005
% totalAmountAssetsI

Current assets
1.

Cash and cash equivalents

7,340,906

15,603,915

13,326,256

2.

Notes and accounts
receivable–trade

13,187,648

5,616,662

37,667,536

3.

Marketable securities

5,000

−

5,000

4.

Inventories

407,035

346,441

480,1715.

Merchandising rightadvances

3,014,829

3,743,765−

6.

Other current assets

4,327,986

4,541,973

5,608,882

7.

Allowance for doubtful
accounts(44,471)(33,533)(87,140)

Total current assets

II

28,238,934

70.2

29,819,225

62.7

57,000,705

78.5

Fixed assets
1.

Tangible fixed assets

4,712,988

11.7

4,729,105

9.9

4,857,578

6.7

2.

Intangible fixed assets

896,7962.2

3,340,306

7.0

1,706,367

2.4

3.

Investments and otherassets(1)

Investment securities

3,975,325

6,380,470

5,545,899(2)

Others2,524,156

3,512,173

3,653,004(3)

Allowance for doubtful
accounts(93,680)(222,554)(179,008)

Total investments andother assets

6,405,801

15.9

9,670,089

20.4

9,019,895

12.4

Total fixed assets

12,015,586

29.8

17,739,501

37.3

15,583,841

21.5

Total assets

40,254,520

100.0

47,558,726

100.0

72,584,547

100.0

6

Period

Item(Thousands of yen, %)(Fiscal year ended
March 31, 2005)(Third quarter ended
December 31, 2004)(Third quarter ended
December 31, 2005)

As of December 31, 2004

As of December 31, 2005

% totalAmountAmount% total

As of March 31, 2005
% totalAmountLiabilities
I

Current liabilities
1.

Accounts payable–trade

6,315,675

5,143,660

27,479,525

2.

Short-term borrowings

230,000

430,000

656,600

3.

Current portion of
long-term debt
Corporate bonds
redeemable within 1 year

81,000232,068

341,768−

50,000

−

5,000

9,652

20,0001,792,394

2,527,664

4,812,214

4.
5.

Accrued bonuses

6.

Other current liabilities
Total current liabilities

II

8,424,069

20.9

8,393,046

17.7

33,310,107

45.9

Long-term liabilities
1.

Corporate bonds−

550,000

500,000

2.

Long-term debt

439,000

430,664

593,165

3.

Retirement benefit
provisions

124,265

165,242

139,140

4.

Reserve for retirement
benefits for directors andstatutory auditors

549,500

592,200

568,700

5.

Other long-term liabilities

2,313,912

2,350,866

2,384,503

Total long-term liabilities

3,426,678

8.5

4,088,973

8.6

4,185,508

5.8

Total liabilities

11,850,748

29.4

12,482,019

26.3

37,495,616

51.7

25,5790.1

1,759,601

3.7

1,662,657

2.3

Minority interests
Minority interests inconsolidated subsidiaries

Shareholders’ equity
I

Common stock

7,948,036

19.7

7,948,036

16.7

7,948,036

10.9

II

Capital surplus

7,994,953

19.9

7,994,953

16.8

7,994,953

11.0

III

Retained earnings

12,231,171

30.4

16,716,385

35.1

17,133,487

23.6

IV

Unrealized holding gain on
available-for-sale securities
Foreign currency translation
adjustment

204,0320.5

648,455

1.4

349,796

0.5

−

−

9,276

0.0

−

−

Total shareholders' equity

28,378,193

70.5

33,317,106

70.0

33,426,273

46.0

Total liabilities, minority
interests and shareholders’equity40,254,520

100.0

47,558,726

100.0

72,584,547

100.0

V

7

Summary Consolidated Statements of Income
PeriodItem(Thousands of yen, %)Fiscal year ended
March 31, 2005

Nine months ended
December 31, 2004

Nine months ended
December 31, 2005

(April 1–December 31, 2004)(April 1–December 31, 2005)

Amount% totalAmount% total(April 1, 2004–March 31, 2005)
Amount% totalI

Net sales

41,027,860

100.0

43,957,425

100.0

81,658,011

100.0

II

Cost of sales

28,661,968

69.9

30,255,387

68.8

56,905,614

69.7

Gross profit

12,365,891

30.1

13,702,037

31.2

24,752,397

30.3

III Selling, general andadministrative expenses

9,124,873

22.2

12,342,707

28.1

12,655,173

15.5

Operating income

3,241,017

7.9

1,359,330

3.1

12,097,224

14.8

IV Non-operating income

402,3721.0

428,075

1.0

655,950

0.8

V Non-operating expenses

242,112

0.6

33,2030.1

272,602

0.3

Ordinary income

3,401,278

8.3

1,754,203

4.0

12,480,571

15.3

VI Extraordinary income

384,1450.9

162,809

0.4

346,893

0.4

VII Extraordinary losses

227,983

0.6

207,943

0.5

266,618

0.3

Income before income taxes
and minority interests

3,557,440

8.6

1,709,068

3.9

12,560,847

15.4

Current income taxes

1,184,648

2.9

1,176,107

2.7

5,403,841

6.6

Deferred income taxes

340,7130.8(147,447)(0.3)

217,712

0.3

7,602

0.0

(2,769)0.0

12,5020.0

2,024,475

4.9

683,178

1.5

6,926,791

8.5

Minority interests

Net income8Summary Consolidated Statements of Cash Flows

PeriodItem

Nine months ended
December 31, 2004

Cash flows from operating activities
1. Income before income taxes and minority
interests
2. Depreciation and amortization
3. Amortization of excess of net assets acquired
over cost
4. Increase (decrease) in allowance for doubtful
accounts
5. Increase (decrease) in accrued bonuses
6. Increase (decrease) in retirement benefit
provisions
7. Increase (decrease) in reserve for retirement
benefits for directors and statutory auditors
8. Interest and dividend income(Thousands of yen)
Fiscal year ended
March 31, 2005

(April 1–December 31, 2004) (April 1–December 31, 2005) (April 1, 2004–March 31, 2005)
AmountI

Nine months ended
December 31, 2005

AmountAmount3,557,440

1,709,068

12,560,847

394,505

897,002568,604(1,111)

106,761(1,481)(41,066)(36,443)

2,729(13,600)(10,347)

1,400

3,450

26,102

9,110(150,300)

23,500(131,100)(15,367)(35,532)(17,157)(211,114)(77,154)(421,667)

10. Interest expense

12,098

17,102

14,783

11. Stock issuance expense

61,397803

91,906

12. Corporate bond issuance expense−
92,8152,400

10,750−(125,462)

112,494

9. Equity in earnings of affiliates

13. Capital increase-related expense
14. Gain on sale of fixed assets
15. Gain on sale of investment securities
16. Gain on investment in anonymous association
17. Loss on disposal of fixed assets
18. Impairment loss
19. Valuation loss on investment securities−(162,685)−
61,431−
166,477−(29,728)−(162,685)(45,171)

106,899

89,41656,8194,320−
175,534

20. Loss on sale of investment securities

−

5,748

−

21. Valuation loss on equity investment
22. Decrease (increase) in notes and accounts
receivable–trade
23. Decrease (increase) in inventories
24. Decrease (increase) in merchandising rightadvances
25. Decrease (increase) in prepaid expenses−

22,609−5,703,879

31,986,304(18,363,214)(155,998)

81,044(54,621)(1,294,753)(431,011)(1,592,677)

26. Decrease (increase) in advance payments
27. Decrease (increase) in notes held
28. Decrease (increase) in non-operating notes
receivable
29. Increase (decrease) in deposits as security
for dealing
30. Increase (decrease) in notes and accounts
payable–trade
31. Increase (decrease) in accrued consumptiontax
32. Increase (decrease) in deposits received
33. Increase (decrease) in deposits held
34. Payments of bonuses to directors andstatutory auditors
35. Others
Total
36. Interest and dividends received
37. Interest paid
38. Income taxes paid
Net cash provided by (used in) operating activities

182,401(598,429)

34,850(373,168)(2,345)(74,885)

158,822

46,198122,482(275,116)

699,831(415,283)−(96,993)(10,000)(5,956,166)(22,734,796)

15,760,989(531,908)(311,615)(269,189)(191,799)

104,898

3,529

1,120,314(27,743)

1,216,687(85,000)(105,000)(85,000)(1,057,885)

30,290638,018

997,990

11,305,101

9,769,999

34,97469,36539,248(12,104)(16,244)(14,103)(5,170,206)(5,521,396)(6,829,288)(4,149,346)

5,836,825

2,965,857

9

Period
Item

Nine months ended
December 31, 2004

(April 1–December 31, 2004) (April 1–December 31, 2005) (April 1, 2004–March 31, 2005)
AmountII(Thousands of yen)
Fiscal year ended
March 31, 2005

Nine months ended
December 31, 2005

AmountAmountCash flows from investing activities−(1,999,320)(690,405)−(543,676)

361,069

38,761

4. Purchases of intangible fixed assets(617,316)(629,298)

5. Purchases of investment securities

1. Sale of marketable securities
2. Purchases of property and equipment
3. Sale of property and equipment

5,000

−
(2,245,700)(1,259,935)(720,000)(3,182,935)

6. Sale of investment securities−

7. Expenditure for acquiring shares in affiliates
8. Proceeds (expenditure) on acquiring
newly consolidated subsidiaries
9. Sale of shares of subsidiaries onchange to scope of consolidation−−(300,000)(10,000)−(662,560)

896,150

−

8,914

−

10. Expenditure for loans(24,000)(209,450)(24,000)

11. Proceeds from repayment of loans

71,983

220,198

83,158

12. Refund of deposits and guarantees

91,330241,931

103,463

13. Payment of deposits and guarantees(130,563)(14,074)(466,414)

14. Payment for long-term prepaid expenses(23,048)(46,616)(33,727)

(819)

(683)

(1,092)

239,480

56(23,543)(3,578,570)(2,423,936)(5,257,154)

15. Payments to insurance reserve
16. Other
Net cash provided by (used in) investing activities
Ⅲ

238,024

Cash flows from financing activities(2,770,000)(220,200)(2,570,000)

2. Proceeds from long-term borrowings

520,000

3. Repayment of long-term borrowings−−
262,201(27,000)

1. Increase (decrease) in short-term borrowings

4. Proceeds from issuance of corporate bonds
5. Proceeds from issuance of new stock
6. Proceeds from payments by minority

520,000−
13,150,847

97,600489,250−

13,100,659

−

206

−

shareholders
7. Cash dividends paid

(1,271,695)(1,284,808)(1,335,027)

Net cash provided by (used in) financing activities

9,629,151(1,145,001)

10,177,881

1,912

8,383

1,913

1,903,147

2,276,270

7,888,497

5,437,758

13,326,256

5,437,758

−

1,388

−

7,340,906

15,603,915

13,326,256

IV

Effect of exchange rate changes on cash andcash equivalents

V
VI

Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of
periodVII Increase (decrease) in cash and cash equivalents
due to change in scope of consolidation
VIII Cash and cash equivalents at end of period10Summary(Translation)
Fields Corporation
Summary of Financial Information and Business Results (Non-Consolidated)
for the Quarter Ended December 31, 2005
(Third Quarter, Year Ending March 31, 2006)
February 10, 2006
Company Name:

Fields Corporation(URL: http://www.fields.biz)
JASDAQ (Securities code: 2767)
Hidetoshi Yamamoto
President, Representative Director and CEO
Hiroyuki Yamanaka
General Manager, Administration Division for Board of Directors
Tel: (03) 5784-2111

Listed on:
Representative Director:
Inquiries:

1. Notes to quarterly financial information(1) Simplified methods applied for accounting (Yes/No): Yes
Simplified methods were partially applied for calculating tax expense and other items.
(2) Changes in accounting methods since the most recent fiscal year (Yes/No): No
2. Summary of business results for the nine months ended December 31, 2005 (April 1 to December 31, 2005)(1) Operating results
Net sales
Nine months ended
December 31, 2005
Nine months ended
December 31, 2004
Year ended
March 31, 2005

Operating income

Millions of yen(% change)

Millions of yen(% change)

Millions of yen(% change)

38,234(-3.8)

1,205(-64.2)

1,508(-55.2)39,758(-12.4)

3,371(-49.6)3,370(-50.3)

79,97012,275

Net income
Nine months ended
December 31, 2005
Nine months ended
December 31, 2004
Year ended
March 31, 2005

（Rounded down to nearest million）
Ordinary income

12,312

Net income per share

Diluted net income per share

Millions of yen(% change)

Yen

Yen

820

(-59.9)2,364.43−

2,046(-43.5)

5,988.63−

19,289.46

−

6,721

Notes: 1. Average number of shares outstanding
Nine months ended December 31, 2005:
Nine months ended December 31, 2004:
Year ended March 31, 2005:

347,000
341,666
343,000

2. Percentages for net sales, operating income and other items denote changes compared with thecorresponding period of the previous fiscal year.

11(2) Financial position
Total assets

At December 31, 2005
At December 31, 2004
At March 31, 2005

Shareholders’ equity

Shareholders’ equity
ratio

Shareholders’ equity
per share

Millions of yen

Millions of yen%

Yen

42,93939,52868,35433,04028,59333,414

76.9
72.3
48.9

95,218.97
82,403.26
95,993.86

3. Forecast earnings for the year ending March 31, 2006 (April 1, 2005, to March 31, 2006)

Full year

Annual dividend per share
Final

Net sales

Ordinary income

Net income

Millions of yen

Millions of yen

Millions of yen

Yen

Yen

83,88910,7175,744

2,000.00

4,000.00

Reference: Projected net income per share for the year ending March 31, 2006: ¥16,250.72
Note: Forecast earnings for the year ending March 31, 2006, are unchanged from the Announcement of Revisions to
Forecast Earnings issued on August 26, 2005.

12

Summary Non-Consolidated Balance Sheets
PeriodItem(Thousands of yen, %)(Fiscal year ended
March 31, 2005)(Third quarter ended
December 31, 2004)(Third quarter ended
December 31, 2005)

As of December 31, 2004

As of December 31, 2005

% totalAmountAmount% total

As of March 31, 2005
Amount% totalAssetsI

Current assets
1.

Cash and cash equivalents

6,835,216

13,104,624

9,872,987

2.

Notes receivable—trade

4,652,917

2,584,833

3,232,572

3.

Accounts receivable—trade

8,469,103

1,946,423

34,061,850

4.

Inventories

205,282

122,836

246,4705.

Merchandising rightadvances

3,073,123

3,743,765

3,384,063

6.

Other current assets

4,381,714

3,470,886

1,848,896

7.

Allowance for doubtful
accounts(31,200)(26,000)(84,300)

Total current assets

II

27,586,157

69.8

24,947,370

58.1

52,562,541

76.9

Fixed assets
1.

Tangible fixed assets

4,265,626

10.8

3,993,257

9.3

4,325,058

6.3

2.

Intangible fixed assets

766,1841.9

1,000,981

2.3

777,906

1.2

3.

Investments and other assets(1)

Investment securities−

2,484,635

1,946,480(2)

Investments in
subsidiaries and affiliates−

7,315,550

5,510,550(3)

Others

7,003,724

3,585,849

3,523,735(4)

Allowance for doubtful
accounts
Allowance for investment
losses(93,680)(368,289)(97,206)−(20,000)(195,000)(5)Total investments and otherassets6,910,044

17.5

12,997,745

30.3

10,688,559

15.6

Total fixed assets

11,941,855

30.2

17,991,983

41.9

15,791,524

23.1

Total assets

39,528,013

100.0

42,939,354

100.0

68,354,065

100.0

13

Period

Item(Thousands of yen, %)(Fiscal year ended
March 31, 2005)(Third quarter ended
December 31, 2004)(Third quarter ended
December 31, 2005)

As of December 31, 2004

As of December 31, 2005

Amount% total% totalAmountAs of March 31, 2005
Amount% totalLiabilities
I

Current liabilities
1.

Accounts payable—trade2.

Accrued bonuses

3.

Other current liabilities
Total current liabilities

II

6,271,566

4,773,044

27,479,545

5,000

6,500

20,0001,639,199

2,022,827

4,325,396

7,915,765

20.0

6,802,371

15.9

31,824,942

46.6

Long-term liabilities
1.

Retirement benefit
provisions

124,265

149,123

129,925

2.

Reserve for retirement
benefits for directors andstatutory auditors

549,500

592,200

568,700

3.

Deposits received

2,313,363

2,354,675

2,409,736

4.

Other liabilities

31,185−

5,893

Total long-term liabilities

3,018,314

7.7

3,095,998

7.2

3,114,255

4.5

Total liabilities

10,934,080

27.7

9,898,370

23.1

34,939,197

51.1

7,948,036

20.1

7,948,036

18.5

7,948,036

11.6

Shareholders’ equity
I

Common stock

II

Capital surplus
1.

Additional paid-in capital
Total capital surplus

III7,994,953
7,994,953

7,994,953
20.2

7,994,953

7,994,953
18.6

7,994,953

11.7

Retained earnings
1.

Legal reserve

9,580

9,580

9,580

2.

Voluntary reserve

10,000,000

15,000,000

10,000,000

3.

Unappropriated retained
earnings

2,437,330

1,439,959

7,112,502

Total retained earnings
IV

12,446,910

31.5

16,449,539

38.3

17,122,082

25.1

Unrealized holding gain on
available-for-sale securities

204,0320.5

648,455

1.5

349,796

0.5

Total shareholders' equity

28,593,932

72.3

33,040,984

76.9

33,414,868

48.9

Total liabilities andshareholders’ equity

39,528,013

100.0

42,939,354

100.0

68,354,065

100.0

14

Summary Non-Consolidated Statements of Income(Thousands of yen, %)PeriodNine months ended
December 31, 2004

Nine months ended
December 31, 2005

Fiscal year ended
March 31, 2005

(April 1–December 31, 2004) (April 1–December 31, 2005) (April 1, 2004–March 31, 2005)
Item

Amount% totalAmount% totalAmount% totalI

Net sales

39,758,516

100.0

38,234,615

100.0

79,970,015

100.0

II

Cost of sales

27,816,844

70.0

27,004,431

70.6

55,787,766

69.8

Gross profit

11,941,672

30.0

11,230,184

29.4

24,182,248

30.2

Selling, general andadministrative expenses

8,570,324

21.6

10,024,572

26.2

11,906,358

14.9

Operating income

3,371,347

8.5

1,205,611

3.2

12,275,890

15.3

IV

Non-operating income

235,800

0.6

312,206

0.8

289,650

0.4

VNon-operating expenses

236,687

0.6

9,100

0.0

252,956

0.3

Ordinary income

3,370,460

8.5

1,508,717

4.0

12,312,584

15.4

VI

Extraordinary income

383,5650.9

349,6690.9

346,283

0.4

VII

Extraordinary losses

226,2470.6

369,355

1.0

461,240

0.6

Income before income taxes

3,527,779

8.9

1,489,032

3.9

12,197,626

15.2

Current income taxes

1,481,677

3.7

743,2711.9

5,354,480

6.7

Deferred income taxes−(74,696)(0.2)

121,8630.1

820,457

2.2

6,721,283

8.4

III

Net income

2,046,111

5.2

Earnings brought forwardfrom previous period

1,085,219

1,313,502

1,085,219

Interim dividends paid

694,000

694,000

694,000

Unappropriated retained
earnings

2,437,330

1,439,959

7,112,502

15