Summary(Translation)

FIELDS CORPORATION
Summary of Financial Information and Business Results
for the Year Ended March 31, 2018 (Consolidated) (Japan GAAP)May 11, 2018
Listed on: TSE 1st
Company Name:

FIELDS CORPORATION(URL: http://www.fields.biz/)2767
Hidetoshi Yamamoto
Chairman, President and Group CEO
Hideaki Hatanaka
Corporate Officer+81-3-5784-2111

Stock code:
Representative Director:
Inquiries:
Tel:

June 20, 2018
June 21, 2018
June 20, 2018No
Yes (For institutional investors and security analysts)

Planned Date for Ordinary General Meeting of Shareholders:Planned Date for Start of Dividend Payment:
Planned Date for Submittal of the Financial Statements Report:
Full year earnings supplementary explanatory materials:
Full year earnings presentation:(Rounded down to the nearest million)

1. Consolidated business results for the year ended March 31, 2018 (April 1, 2017 to March 31, 2018)(1) Consolidated operating results(Percentage figures denote YoY changes)
Net sales

Operating profit

Millions of yen

Year ended March 31, 2018Year ended March 31, 2017
(Note) Comprehensive income%

Millions of yen%

Millions of yen%

Millions of yen%(5,204)(9,068)――(7,691)(12,483)――

61,055 (20.4)(5,738)―76,668 (18.8)(5,374)―
Year ended March 31, 2018: ¥ (5,049) million (―%)
Year ended March 31, 2017: ¥ (13,159) million (―%)
Diluted profit per
Return on
Profit per share
share
equityYen

Yen

Year ended March 31, 2018
(231.77)
Year ended March 31, 2017(376.19)(Reference) Share of loss of entities accounted for using equity method

Profit attributable toowners of parent

Ordinary profit

Ordinary profit tototal assets%―(19.9)―(25.1)
Year ended March 31, 2018:Year ended March 31, 2017:

Operating profit
margin%%(6.8)(10.5)¥ 306 million¥ (3,866) million

(9.4)
(7.0)

(2) Financial position
Total assets

Net assets per share

Millions of yen%

Yen

72,35735,50980,39743,227
Year ended March 31, 2018: ¥ 35,008 million
Year ended March 31, 2017: ¥ 42,225 million

48.4
52.5

1,054.99
1,272.48

Millions of yen

Year ended March 31, 2018Year ended March 31, 2017
(Reference) Shareholders’ equity

Shareholders’ equity
ratio

Net assets(3) Cash flows
Cash flow fromoperating activities

Cash flow frominvesting activities

Cash and cash
equivalents
at end of year

Cash flow fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen(1,094)(7,319)4,399(3,927)(2,021)
2,136

24,37323,090Year ended March 31, 2018Year ended March 31, 2017

2. Dividends
Annual dividends
Q3-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

Year ended March 31, 2017

―

25.00

―

25.00

50.00

1,659

―

3.3

Year ended March 31, 2018Year ending March 31, 2019
(Forecast)

―

25.00

―

5.00

30.00

995

―

2.6

―

0.00

―

10.00

10.00

Q1-endQ2-endPayout ratio(consolidated)

Dividend on
equity ratio(consolidated)

Total dividend(annually)―

3. Forecast of consolidated earnings for the year ending March 31, 2019 (April 1, 2018 to March 31, 2019)
Net sales
Full-year(Full-year percentage figures denote YoY changes)
Profit attributable toProfitOrdinary profit
owners of parent
per share

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

95,000

55.6

2,000

―

2,500

―

1,500

―

45.20

(Note) FIELDS CORPORATION discloses a full-year business forecast, as it manages its business performance on an annual basis.

*Notes(1) Transfer of important subsidiaries during the year under review (Transfer of specific subsidiaries that results in a change inthe scope of consolidation): No(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: Yes
4) Revisions/restatements: No(3) Number of shares issued (common share)
1) Number of shares issued at end of year (including treasury share)

2)

3)Year ended March 31, 201834,700,000 sharesYear ended March 31, 201734,700,000 shares

Number of shares of treasury share at end of year
Year ended March 31, 2018

1,516,300 sharesYear ended March 31, 2017

1,516,300 shares

Average number of shares outstanding (quarterly consolidated cumulative period)
Year ended March 31, 201833,183,700 sharesYear ended March 31, 201733,183,718 shares(Reference) Overview of non-consolidated business results
Non-consolidated business results for the year ended March 31, 2018 (April 1, 2017 to March 31, 2018)(1) Non-consolidated operating results(Percentage figures denote YoY changes)
Net salesYear ended March 31, 2018Year ended March 31, 2017

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

50,57064,155(21.2)(23.5)(7,045)(5,685)――(6,430)(5,213)――(6,239)(13,559)――

Profit per share
Year ended March 31, 2018

Profit attributable toowners of parent

Ordinary profit

Diluted profit per share
Yen

Yen

(188.04)―

Year ended March 31, 2017(408.63)―(Note) Certain differences have arisen between individual operating results and the results for the previous fiscal year. The reasons for these are
given in (1) Overview of operating results for the year ended March 31, 2018, 1. Overview of operating results.

* Summaries of Financial Information and Business Results are not subject to audit.
* Explanation of the appropriate usage of forecast earnings and other specific matters(Disclaimer regarding forward-looking statements and projections)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 figuresdue to the various factors. Please refer to Overview of operating results for the year ended March 31, 2018 (April 1, 2017
to March 31, 2018) under 1. Overview of operating results on page two of the attached documents for details of
assumptions for financial forecasts and other related matters.
(How to obtain Financial results briefing materials)
The Company is planning to hold a results briefing for institutional investors and analysts on Friday, May 11, 2018.
Materials distributed at that briefing will be posted on the Company’s website after the briefing as soon as possible.

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

Table of contents of Attached Document
1. Overview of operating result ......................................................................................................................................... 2(1) Overview of operating results for the year ended March 31, 2018 ......................................................................... 2(2) Overview of financial position for the year ended March 31, 2018 ........................................................................ 5(3) Cash flows .............................................................................................................................................................. 6
2. Basic Approach to Selecting Accounting Standards ...................................................................................................... 6
3. Consolidated financial statements and important notes ................................................................................................. 7(1) Consolidated balance sheets ................................................................................................................................... 7(2) Consolidated statements of income and consolidated statements of comprehensive income ................................. 9(3) Consolidated statement of change in net assets .................................................................................................... 12(4) Consolidated statements of cash flows ................................................................................................................. 14(5) Note regarding the Consolidated Financial Statements ........................................................................................ 16(Note regarding the operation of the company as a going concern) ..................................................................... 16(Changes in accounting estimates) ....................................................................................................................... 16(Segment information, etc.).................................................................................................................................. 16(Per-share data) .................................................................................................................................................... 17(Significant subsequent events) ........................................................................................................................... 17

1

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

1. Overview of operating results(1) Overview of operating results for the year ended March 31, 2018 (April 1, 2017 to March 31, 2018)[1] Overview
In the fiscal year under review, in the pachinko/pachislot (hereafter, PS) industry, manufacturers’ development and sales
schedules and the appetite for purchasing PS machines for pachinko halls were greatly affected by the Amendment of theRegulation for Enforcement of the Amusement Businesses Law,* which came into effect on February 1, 2018. Consequently,
in the PS machines market the total sales volume of PS machines for the fiscal year amounted to 2,080,000 machines (down
400,000 YoY), according to our research.
In that market environment, results proceeded generally according to plan by the nine months ended December 31, 2017.
However, as indicated in the Notification of Revisions to Performance Forecast dated February 20, 2018, the Group did notreceive the model certification results of several titles, including large titles, and it abandoned the sale of those titles in the
fourth quarter (from January to March 2018). As a result, the sales of PS machines for the fiscal year under review amounted
to 190,000 machines (down 50,000 YoY).
In terms of developing and strengthening the management foundation, the Group promoted the rebuilding of cross-media
business included in the Group, and the establishment of sales bases. It also promoted cost reduction policies throughimprovement of management efficiency, greatly reducing SG&A expenses by approximately ¥4 billion from the same periodof the previous year.
As a result of the above, the Group posted net sales in the fiscal year of ¥61,055 million (down 20.4% YoY), operating lossof ¥5,738 million (increased by ¥364 million from the same period of the previous year), due to recovery in the financial
position of an equity method affiliate, ordinary loss of ¥5,204 million (an improvement of ¥3,863 million from the same
period of the previous year), and as extraordinary losses including loss on valuation of investment securities occurred, theGroup posted a net loss for the fiscal year attributable to owners of parent of ¥7,691 million (an improvement of ¥4,792
million from the same period of the previous year).
*Regulation Partially Amending the Ordinance for Enforcement of the Act on Control and Improvement of Amusement Business, etc. and the Regulations for the
Verification of Licenses, Formats and Other Aspects of Pachinko and Pachislot Machines, coming into effect on February 1, 2018

[2] Forecast for the year ending March 31, 2019 is as follows:(Unit: Millions of yen)

FYNet sales

3/20173/2018Change %Forecast of 3/2019
Change %76,66861,055(20.4)

95,000+ 55.6Gross profit

17,641

13,400(24.0)

17,000＋26.9

SG&A expenses

23,015

19,138(16.8)

15,000(21.6)

Operating profit(5,374)(5,738)

―

2,000

―

Ordinary profit(9,068)(5,204)

―

2,500

―

Profit attributable toowners of parent(12,483)(7,691)

―

1,500

―

In the PS market, the successive tightening of regulations from 2014 calmed down with the commencement of theAmendment of the Regulation for Enforcement of the Amusement Businesses Law on February 1, 2018, leading to an
environment in which manufacturers can focus on developing new PS machines. Going forward, it is expected that there will
be a stable supply of PS machines with new game functions.
With regard to trends in pachinko halls, as shown in Figure 1, over a period of 20 years there has been a progressive
reduction in small halls, and the number of halls has decreased by 40.4% from 17,773 in 1997 to 10,596 in 2017. At the sametime, as shown in Figure 2, the number of installed PS machines has remained stable, decreasing by 6.9% from 4.763 million
machines in 1997 to 4.436 million machines in 2017, according to research by the National Police Agency. This indicates thathalls are increasing in size, and it is expected that the trend towards more comfortable PS spaces and environments willcontinue.

2

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

Figure [1]Figure [2]As can be seen from the above, in the PS industry, in order to develop and expand the PS business, the time has arrived
when revolutionary change to unite pachinko halls and manufacturers is needed.
Under such circumstances, the Company has decided to strengthen its functioning by returning to an intermediary role
between pachinko halls and manufacturers. It will seek to expand its sales bases and strengthen its functioning to provide
smoother services to halls and a more stable supply of PS machines. In addition, as shown in Figure 3, through Japan
Premium Broadcast Inc., which was formed by collaboration between the Company and two major industry publishingcompanies, we plan to commence provision of a service distributing video information on PS machines, etc. from the third
quarter. We view this time, when revolutionary change is needed in the PS business, as a business opportunity and willcontribute to shareholder returns through a variety of new initiatives as a distribution company.

3

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

Figure [3]In addition to strengthening this distribution business, as Group business, the Group will promote the PS machinesdevelopment business centered on BOOOM Corporation and the contents and visuals business centered on Tsuburaya
Productions Co., Ltd. and Digital Frontier Inc. It will also continue to promote greater management efficiency.
Through the above initiatives, in the next fiscal year the Company plans to achieve net sales of ¥95,000 million (up 55.6%
YoY), operating profit of ¥2,000 million (increase of ¥7,738 million YoY), ordinary profit of ¥2,500 million (increase of¥7,704 million YoY and profit attributable to owners of parent of ¥1,500 million (increase of ¥9,191 million YoY).
[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 issue, and its fundamental policy is
to pay dividends at an appropriate level that corresponds with profits.
However, due to the rapid changes that have occurred recently in the internal and external business environments, it has
decided that seeking to stabilize its financial base from the medium- to long-term perspective and giving priority to securing
investment funds for the expansion of profits will contribute to the maximization of general shareholder returns, including
future increases in corporate value.
With respect to dividends, it is with regret that we have revised down our year-end dividend forecast for the fiscal year
ended March 31, 2018 from ¥25 per share to ¥5. Similarly, the planned year-end dividend for the next fiscal year will be ¥10
per share.
1) Year ended March 31, 2018: Interim dividend of ¥25 (implemented)/ Year-end dividend of ¥5 (planned)/
Annual dividend of ¥30 (planned)
2) Year ending March 31, 2019: Year-end dividend of ¥10 (planned)

4

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

(2) Overview of financial position for the year ended March 31, 2018
(Unit: Millions of yen)

Current fiscal year

Previous fiscal year

(Year ended March 31, 2018)(Year ended March 31, 2017)

YoY change

Total assets

72,35780,397(8,040)Total liabilities

36,847

37,170(322)

Total net assets

35,50943,227(7,718)(Assets)
Current assets amounted to ¥42,651 million, down ¥3,205 million YoY. The principal factor behind this was a decrease innotes and accounts receivable - trade.
Property, plant and equipment amounted to ¥5,279 million, down ¥5,086 million YoY. The principal factors behind this wasa decreases in idle assets (land).
Intangible assets amounted to ¥1,385 million, down ¥1,084 million YoY. The principal factors behind this was a decreases insoftware.
Investments and other assets amounted to ¥23,041 million, up ¥1,336 million YoY. This was mainly due to an increases inlong-term loans receivable.
As a result of the above, total assets amounted to ¥72,357 million, down ¥8,040 million YoY.
(Liabilities)
Current liabilities amounted to ¥22,480 million, up ¥2,005 million YoY. This was mainly due to an increase in short-termpayable.
Non-current liabilities amounted to ¥14,367 million, down ¥2,327 million YoY. The principal factor behind this was adecrease in long-term payable.
As a result of the above, total liabilities amounted to ¥36,847 million, down ¥322 million YoY.
(Net assets)
Net assets amounted to ¥35,509 million, down ¥7,718 million YoY. This primarily reflected a decrease in retained earnings.

5

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

(3) Cash flows
During the fiscal year under review, cash and cash equivalents (hereinafter referred to as “cash”) increased by ¥1,282 million
YoY, amounting to ¥24,373 million at the end of the year ended March 31, 2018.
Cash flow for the year ended March 31, 2018 and contributing factors are as follows:(Unit: Millions of yen)

Current fiscal year

Previous fiscal year

(Year ended March 31, 2018)(Year ended March 31, 2017)

Cash flows from operating activities(1,094)(7,319)6,224

Cash flows from investing activities

4,399(3,927)

8,326

Cash flows from financing activities(2,021)

2,136(4,157)

YoY change(Cash flows from operating activities)
Net cash used in operating activities amounted to ¥1,094 million (¥7,319 million of expenditure for the same period of theprevious fiscal year). This was mainly due to a loss before income taxes of ¥7,386 million, a decrease in notes and accounts
receivable - trade of ¥6,715 million, a decrease in notes and accounts payable - trade of ¥1,640 million, an increase ininventories of ¥3,393 million, and a loss on valuation of investment securities of ¥2,185 million.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥4,399 million (¥3,927 million of expenditure for the same period of theprevious fiscal year). This was mainly due to proceeds from sales of property, plant and equipment totaling ¥6,250 million,
payments of loans receivable totaling ¥4,520 million, collection of loans receivable totaling ¥2,574, and proceeds from salesof shares of subsidiaries and associates totaling ¥2,202 million.
(Cash flows from financing activities)
Net cash provided by financing activities amounted to ¥2,021 million (¥2,136 million of revenue for the same period of theprevious fiscal year). This was mainly attributable to an increase in short-term loans payable totaling ¥3,869 million,
repayments of long-term loans payable totaling ¥3,200 million, dividends paid totaling ¥1,659 million, and payments fromchanges in ownership interests in subsidiaries that do not result in change in scope of consolidation totaling ¥955 million.
(Reference) Trends of cash flow indicators
FY
Shareholders’ equity ratio (%)
Shareholders’ equity ratio at
market value (%)
Interest-bearing debt/cash flow
ratio (years)
Interest coverage ratio (times)

3/20143/20153/20163/20173/2018

55.6

53.9

62.0

52.5

48.4

47.4

55.0

67.4

47.7

53.4

0.0

—

0.9

—

—

1,490.4

—

439.0

—

—

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 theyear)/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 share.
3. Interest-bearing debt indicates all the liabilities for which interest is paid posted in the consolidated balance sheets.
4. Interest-bearing debt/cash flow ratio and interest coverage ratio are not stated in the case of negative operating cash flows.

2. Basic Approach to Selecting Accounting Standards
The Group has determined that financial statements prepared according to Japanese standards are appropriate in light of current
business conditions. We plan to appropriately address the adoption of IFRS after considering conditions in Japan and overseas.

6

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

3. Consolidated financial statements and important notes(1) Consolidated balance sheets(Unit: Millions of yen)

Fiscal year ended March 31, 2017

Fiscal year ended March 31, 2018

(As of March 31, 2017)(As of March 31, 2018)

AssetsCurrent assets
Cash and deposits

23,19024,473

Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods

12,727

7,019

2,108

1,097

650

1,206

686

2,804

Work in process
Raw materials and supplies
Merchandising rights advances
Deferred tax assets

87

83

2,398

1,468

136

475

Other

3,943

4,084

Allowance for doubtful accounts

(73)

(61)

45,85642,651

5,282

5,662

Accumulated depreciation(2,929)(2,926)

Buildings and structures, net

2,352

2,735

Machinery, equipment and vehicles

85

86

Accumulated depreciation

(41)

(55)

Machinery, equipment and vehicles, net

4330

Tools, furniture and fixtures

4,094

4,037

Accumulated depreciation(3,458)(3,473)

636

564

7,206

1,873

127

75

10,366

5,279

Goodwill

1,007

662

Other

1,461

723

Total intangible assets

2,469

1,385

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

8,223

6,773

Long-term loans receivable

8,156

11,781

Deferred tax assets

496

204

Other

4,972

4,838

Allowance for doubtful accounts

(144)

(556)

Total investments and other assets

21,70523,041

34,54029,70680,39772,357

Total non-current assets
Total assets

7

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

(Unit: Millions of yen)

Fiscal year ended March 31, 2017

Fiscal year ended March 31, 2018

(As of March 31, 2017)(As of March 31, 2018)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable

12,792

11,358

281

4,151

2,600

2,580

Income taxes payable

126

171

Provision for bonuses

357

288

Provision for directors’ bonuses—

9

Provision for sales returns

22

6

Current portion of long-term loans payable

Other

4,295

3,914

Total current liabilities

20,47522,480Long-term loans payable

12,607

9,427

Net defined benefit liability

615

660

Non-current liabilities

Other

3,471

4,279

Total non-current liabilities

16,694

14,367

37,17036,847

Total liabilities
Net assets
Shareholders’ equity
Capital stock

7,948

7,948

Capital surplus

7,994

7,579

Retained earnings

30,035

20,684

Treasury shares(1,821)(1,821)

Total shareholders’ equity

44,15634,391

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment(1,836)669

00Remeasurements of defined benefit plans

(94)

(53)

(1,930)617

Non-controlling interest

Total accumulated other comprehensive income

1,002

500

Total net assets

43,22735,50980,39772,357

Total liabilities and net assets

8

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Unit: Millions of yen)

Fiscal year ended March 31, 2017

Fiscal year ended March 31, 2018

(April 1, 2016–March 31, 2017)(April 1, 2017–March 31, 2018)

Net sales

76,66861,055

Cost of sales

59,02747,655Gross profit

17,641

13,400Advertising expenses

3,904

2,059

Salaries

6,033

5,639

Provision for bonuses

222

137

Retirement benefit expenses

149

132

2,232

1,851

542

520

Depreciation

1,221

1,060

Rents

1,981

1,793

Provision of allowance for doubtful accounts

42

236

Amortization of goodwill

322

322

Selling, general and administrative expenses

Business consignment expenses
Traveling and transportation expenses

Provision for directors' bonuses

—

9

Other

6,362

5,376

Total selling, general and administrative expenses

23,015

19,138(5,374)(5,738)Operating profit (loss)
Non-operating income
Interest income

88

115

Dividend income

182

175

Purchase discounts

159

129

Rent income

651

Gain on management of investment securities
Share of profit of entities accounted for using
equity method
Distributions from investments

0

—

—

306

67

186

Other

208

116

Total non-operating income

774

1,030

41

81

3,866

—

158

191

252

5

30

163

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodAmortization of equity investment
Financing expenses
Provision of allowance for doubtful accounts for
subsidiaries and associates
Other
Total non-operating expenses
Ordinary profit (loss)

9

119

53

4,468

496

(9,068)(5,204)

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

(Unit: Millions of yen)

Fiscal year ended March 31, 2017

Fiscal year ended March 31, 2018

(April 1, 2016–March 31, 2017)(April 1, 2017–March 31, 2018)

Extraordinary income
Gain on sales of shares of subsidiaries andassociates
Gain on sales of non-current assets
Gain on liquidation of subsidiaries and associates

20

0

27

939

19

－

Other

0

2

Total extraordinary income

68

941

Loss on litigation

352

400

Extraordinary losses
Loss on retirement of non-current assets

239

117

Impairment loss

620

334

Loss on valuation of investment securities

－

2,185

Loss on valuation of investments in capital

78－

Loss on waiver of receivables from affiliates
Loss on valuation of shares of subsidiaries andassociates
Provision for loss on liquidation of subsidiaries andassociates
Other

16

－

8

7

54

－

148

78

Total extraordinary losses

1,517

3,123

Profit (loss) before income taxes(10,517)(7,386)

Income taxes - current

437

266

Income taxes - deferred

1,269

(55)

Total income taxes

1,707

211

(12,225)(7,597)

Profit attributable to non-controlling interests

257

93

Profit (loss) attributable to owners of parent(12,483)(7,691)

Profit (loss)

10

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

Consolidated statements of comprehensive income(Unit: Millions of yen)

Fiscal year ended March 31, 2017

Fiscal year ended March 31, 2018

(April 1, 2016–March 31, 2017)(April 1, 2017–March 31, 2018)

Profit (loss)(12,225)(7,597)

(972)

2,506

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

20Remeasurements of defined benefit plans

35

40

(933)

2,548

Comprehensive income

Total other comprehensive income(13,159)(5,049)Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests(13,419)(5,143)

260

93

11

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

(3) Consolidated statement of change in net assets
Fiscal year ended March 31, 2017 (April 1, 2016–March 31, 2017)(Unit: Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current period

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity7,994

44,177(1,821)58,298

7,948

Amount of changes during period
Dividends of surplus(1,659)(1,659)Profit (loss) attributable to ownersof parent(12,483)(12,483)

Purchase of treasury shares

(0)

(0)

Change in equity by purchase oftreasury shares of consolidated
subsidiaries—

Net changes of items other thanshareholders' equity—

Total amount of changes during
period——(14,142)(0)(14,142)

Balance at end of current period

7,948

7,994

30,035(1,821)

44,156

Total accumulated other comprehensive income
Valuationdifference on
available-for-s
ale securities
Balance at beginning of current period(862)

Foreigncurrencytranslation
adjustment(2)

Remeasure-me
nts of defined
benefit plans

Total
accumulated
othercomprehensive
income

(130)

(994)

Non-contro-ll
ing interests

987

Total net
assets58,291

Amount of changes during period
Dividends of surplus(1,659)Profit (loss) attributable to ownersof parent(12,483)

Purchase of treasury shares(0)Change in equity by purchase oftreasury shares of consolidated
subsidiaries—

Net changes of items other thanshareholders' equity

(974)

2

35

(936)

14

(921)

Total amount of changes during
period

(974)

2

35

(936)

14

(15,064)

Balance at end of current period(1,836)0(94)(1,930)1,002

43,227

12

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

Fiscal year ended March 31, 2018 (April 1, 2017–March 31, 2018)(Unit: Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current period

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity7,994

30,035(1,821)

44,156

7,948

Amount of changes during period
Dividends of surplus(1,659)(1,659)Profit (loss) attributable to ownersof parent(7,691)(7,691)

Purchase of treasury shares—

Change in equity by purchase oftreasury shares of consolidated
subsidiaries

(414)

(414)

Net changes of items other thanshareholders' equity
Total amount of changes during
period—(414)(9,350)—(9,764)

Balance at end of current period

7,948

7,579

20,684(1,821)

34,391

Total accumulated other comprehensive income
Valuationdifference on
available-for-s
ale securities
Balance at beginning of current period

Foreigncurrencytranslation
adjustment(1,836)0Remeasure-me
nts of defined
benefit plans

Total
accumulated
othercomprehensive
income(94)(1,930)Non-contro-lling interests

1,002

Total net
assets43,227

Amount of changes during period
Dividends of surplus(1,659)Profit (loss) attributable to ownersof parent(7,691)

Purchase of treasury shares—

Change in equity by purchase oftreasury shares of consolidated
subsidiaries
Net changes of items other thanshareholders' equity

(414)

2,506

0

40

2,547

(501)

2,046

Total amount of changes during
period

2,506

0

40

2,547

(501)

(7,718)

Balance at end of current period

669

0

(53)

617

500

35,50913

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

(4) Consolidated statements of cash flows(Unit: Millions of yen)

Fiscal year ended March 31, 2017

Fiscal year ended March 31, 2018

(April 1, 2016–March 31, 2017)(April 1, 2017–March 31, 2018)

Cash flows from operating activities
Profit (loss) before income taxes(10,517)(7,386)

Depreciation

1,760

1,457

Impairment loss

620

334

Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses

322

322

72

400

(17)

(68)

Increase (decrease) in provision for directors' bonuses

(214)

9

Increase (decrease) in net defined benefit liability

64

86Interest and dividend income

(271)

(290)

Purchase discounts
Share of (profit) loss of entities accounted for using
equity method
Interest expenses

(159)

(129)

3,866

(306)

41

81

Loss (gain) on valuation of investment securities

—

2,185

Amortization of equity investment
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories

616

751

(5,249)

6,715

1,533

(3,393)

Decrease (increase) in merchandising right advances

(276)

929

Loss (gain) on sales of non-current assets

(27)

(939)

Decrease (increase) in prepaid expenses

426

254

Decrease (increase) in advances paid
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accounts payable - other

(565)

475

(93)

(1,640)

(53)

(360)

Increase (decrease) in accrued consumption taxes

(235)

53

Increase (decrease) in deposits received

(57)

239

Other, net

1,583

(583)

Subtotal(6,831)(801)

Interest and dividend income received

260

310

Interest expenses paid

(41)

(81)

Income taxes (paid) refund

(706)

(521)

(7,319)(1,094)

(559)

(862)

Proceeds from sales of property, plant and equipment

643

6,250

Purchase of intangible assets

(370)

(267)

Proceeds from sales of investment securities—

13

Purchase of shares of subsidiaries and associates
Proceeds from sales of shares of subsidiaries andassociates
Payments for investments in capital of subsidiaries
and associates
Payments of loans receivable

(7)

(200)

1

2,202

(969)

(582)

(4,640)(4,520)

Collection of loans receivable

2,037

2,574

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Other, net

(41)

(90)

355

307

(377)

(423)

Net cash provided by (used in) investing activities(3,927)

4,399

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment

14

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

(Unit: Millions of yen)

Fiscal year ended March 31, 2017

Fiscal year ended March 31, 2018

(April 1, 2016–March 31, 2017)(April 1, 2017–March 31, 2018)

Cash flows from financing activities
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other, net

—

(955)

(11,133)

3,869

15,500—(300)(3,200)(1,659)(1,659)

(269)

(76)

2,136

(2,021)0(0)(9,109)1,282

Cash and cash equivalents at beginning of period

32,20023,090Cash and cash equivalents at end of period

23,09024,373

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

15

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018(5) Note regarding the Consolidated Financial Statements(Note regarding the operation of the company as a going concern)
No relevant items(Changes in accounting estimates)(Changes in asset retirement obligations estimate)
During the consolidated fiscal year under review, the estimate with respect to asset retirement obligations recorded as
restoration obligations associated with real estate leases, was changed when new information was obtained in relation to therestoration costs necessary at the time of withdrawal from the leases. Due to the changing of the estimate, an additionalamount of ¥638 million has been added to the asset retirement obligations balance prior to the change.
As the change in the estimate occurred in the consolidated fiscal year under review, it will have no impact on income forthat fiscal year.
(Segment information, etc.)[Segment information]
This statement is omitted as the Group engages in a single segment.
[Related information]
Fiscal year ended March 31, 2017 (April 1, 2016–March 31, 2017)
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 orservice 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
for more than 90% of net sales in the consolidated statement of income.

(2) Property, plant and equipment
Information on the amount of property, plant and equipment has been omitted because the amount of property, plantand equipment in Japan accounted for more than 90% of the amount of property, plant and equipment in the
consolidated balance sheet.
3. Information on each major customer
Information on major customers has been omitted because there is no external customer for which net sales represents
10% of net sales of the consolidated statements of income.
Fiscal year ended March 31, 2018 (April 1, 2017–March 31, 2018)
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 orservice 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
for more than 90% of net sales in the consolidated statement of income.

(2) Property, plant and equipment
Information on the amount of property, plant and equipment has been omitted because the amount of property, plantand equipment in Japan accounted for more than 90% of the amount of property, plant and equipment in the
consolidated balance sheet.
3. Information on each major customer
Information on major customers has been omitted because there is no external customer for which net sales represents
10% of net sales of the consolidated statements of income.

16

FIELDS CORPORATION [2767] Summary of Financial Information and Business Results for the Year Ended March 31, 2018

[Information relating to impairment loss of non-current assets by reportable segment]This information has been omitted because the Group has only one segment.
[Information relating to amortization of goodwill and unamortized balance by reportable segment]This information has been omitted because the Group has only one segment.
[Information relating to gain on bargain purchase by reportable segment]
No relevant items(Per-share data)(Unit: Yen)

Item

Fiscal year ended March 31, 2017

Fiscal year ended March 31, 2018

(April 1, 2016–March 31, 2017)(April 1, 2017–March 31, 2018)

Net assets per share

1,272.48

1,054.99

Profit (loss) per share(376.19)(231.77)(Notes) 1. The amount of diluted profit per share for the previous consolidated fiscal year and the fiscal year under review is not stated because
there is a loss per share and no latent shares exist.
2. The basis for calculation of the amount of profit per share is as follows:

Item

Fiscal year ended March 31, 2017

Fiscal year ended March 31, 2018

(April 1, 2016–March 31, 2017)(April 1, 2017–March 31, 2018)

Profit (loss) attributable to owners of parent(millions of yen)Amount not allocable to common stockholders(millions of yen)
Profit (loss) attributable to owners of parent related
to common shares income (millions of yen)
Average number of shares of common stock
outstanding (shares)
Outline of latent shares not reflected in thecalculation of diluted net income per share since
they have no dilutive effect—(Significant subsequent events)
No relevant items

17(12,483)(7,691)——(12,483)(7,691)33,183,718

33,183,700—