Summary(Translation)
Fields Corporation
Summary of First Quarter Financial Statements and Business Results (Consolidated)Year Ending March 31, 2008
August 3, 2007
Company Name:
Listed on:
Representative Director:
Inquiries:

Fields Corporation(URL: http://www.fields.biz)
JASDAQ (Stock code: 2767)
Takashi Oya
President and COO
Hiroyuki Yamanaka
Director and General Manager, Planning and Administration Division
Tel: (03) 5784-2111(Rounded down to the nearest million)
1. Business results for the first quarter of the year ending March 31, 2008 (April 1, 2007, to June 30, 2007)(1) Operating results(Percentage figures denote year-over-year changes.)
Net sales
Operating income
Ordinary income
Millions of yen%
Millions of yen%
Millions of yen%
First quarter, year ending
24,234(-4.4)
2,322(-26.9)2,627(-23.0)March 31, 2008
First quarter, year ended
25,362(3.9)
3,176(40.7)
3,413(28.0)March 31, 2007
Year ended
85,3218,944
9,202
March 31, 2007

First quarter, year ending
March 31, 2008
First quarter, year ended
March 31, 2007
Year ended
March 31, 2007

Net income
Millions of yen%

Net income per share
Yen

Diluted net income per share
Yen

1,156

(-30.3)

3,333.14－

1,658(13.2)

4,778.88－

10,692.29

－

3,710

(2) Financial position

At June 30, 2007
At June 30, 2006
At March 31, 2007

Total assets

Net assets

Millions of yen
83,971
63,661
66,081Millions of yen
43,316
41,87342,836

Shareholders’ equity
ratio
%
49.5
63.3
62.2

Cash flow fromoperating activities

Cash flow frominvesting activities

Cash flow fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Net assets per share
Yen
119,850.22
120,674.06
118,487.37(3) Cash flows

First quarter, year ending
March 31, 2008
First quarter, year ended
March 31, 2007
Year ended
March 31, 2007

Cash and cash
equivalents atperiod-end
Millions of yen

5,411(2,145)(487)

20,674

(722)

(338)

(257)

14,451

5,293(4,772)

1,488

17,8191

2. Forecast earnings for the year ending March 31, 2008 (April 1, 2007, to March 31, 2008) [Reference](Percentages denote year-over-year changes versus the corresponding year-earlier period.)
Net sales
Operating income
Ordinary income
Millions of yen%
Millions of yen%
Millions of yen%
First half
53,000 （12.5）
4,300 （-8.9）
4,200 （-15.7）
Full year
98,000 （14.9）
9,600
（7.3）
9,300
（1.1）

First half
Full year

Net income
Millions of yen%
1,000 （-55.1）
3,800
（2.4）

Net income per shareYen
2,881.84
10,951.01

3. Other Information(1) Transfer of important subsidiaries during the period under review (Transfer of specific subsidiaries that results in achange in the scope of consolidation):
None(2) Simplified methods applied for accounting (Yes/No):Yes(3) Changes in accounting methods since most recent fiscal year (Yes/No):
No
Note: For details, please see “Qualitative Information and Financial Statements, 4. Other” on page 8.

2

(Reference) Summary of Business Results (Non-Consolidated)
1. Business results for the first quarter of the year ending March 31, 2008 (April 1, 2007, to June 30, 2007)(1) Operating results(Percentage figures denote year-over-year changes.)
Net sales
Operating income
Ordinary income
Millions of yen%
Millions of yen%
Millions of yen%
First quarter, year ending
21,094(-7.3)
2,531(-22.8)2,614(-26.1)March 31, 2008
First quarter, year ended
22,756(-2.3)
3,279(34.0)
3,535(31.1)March 31, 2007
Year ended
71,3148,999
9,393
March 31, 2007

First quarter, year ending
March 31, 2008
First quarter, year ended
March 31, 2007
Year ended
March 31, 2007

Net income
Millions of yen%

Net income per share
Yen

Diluted net income per share
Yen

1,397

(-28.3)

4,028.49－

1,948(27.9)

5,616.17－

13,755.49

－

4,773

(2) Financial position

At June 30, 2007
At June 30, 2006
At March 31, 2007

Total assets

Net assets

Millions of yen
74,021
57,84257,509Millions of yen
42,70540,39042,001

Shareholders’ Equity
ratio
%
57.7
69.8
73.0

Net assets per share
Yen
123,070.74
116,398.34
121,042.25

2. Forecast earnings for the year ending March 31, 2008 (April 1, 2007, to March 31, 2008) [Reference](Percentages denote year-over-year changes versus the corresponding year-earlier period.)
Net sales
Operating income
Ordinary income
Millions of yen%
Millions of yen%
Millions of yen%
First half
4,700 （-5.6）
4,800 （-9.2）（11.8）
46,000
Full year
8,400 （-6.7）
8,500 （-9.5）（5.2）
75,000First half
Full year

Net income
Millions of yen%
800 （-71.5）
2,800 （-41.3）

Net income per shareYen
2,305.48
8,069.16

Caution regarding forward-looking statements
The forward-looking statements made in this report such as performance perspective are based on currently available
information and certain premises that are judged reasonable by management. There are many uncertain factors inherent inforecasting, and there might be cases in which actual results of future business operations and/or events differ from ourforecasts depending on changes in diverse conditions. Please see “Qualitative Information and Financial Statements, 3.
Qualitative Information on Projections for the Consolidated Business Results” on page 8 with regard to the cautions in using
assumptions as the premise for forecast earnings.

3

Qualitative Information and Financial Statements
1. Qualitative Information Regarding Consolidated Operating Results
The Company began disclosing segment information on its businesses in the first quarter of the year ending March 31,
2008. Therefore, there is no comparison with the first quarter of the previous fiscal year for each segment (hereinafter“Field”).
Overview of Operations for the First Quarter of the Year Ending March 31, 2008
Consolidated net sales for the first quarter of the year ended June 30, 2007, decreased 4.4% year over year to¥24,234,564 thousand.
The PS (Pachinko and Pachislot) Field progressed favorably in general as we had projected, and net sales in the PS Field
were ¥21,066,502 thousand. Sales of both the pachinko and pachislot machines of Fields Corporation (hereinafter “theCompany”) also expanded as forecast.
The Company focused on sales of pachislot machines responding to large-scale demand for replacement with the new
regulation machines during June and July. As a result, the number of pachislot machines sold during the first quarter of theyear ending March 31, 2008, decreased 2.2%, remaining almost unchanged from a year earlier. Sales of pachinko machinesdecreased 57.6％ year over year, since we will focus on those machines in the second half of the year under review inaccordance with our strategic plan. Therefore, we introduced only one model in the first quarter. This decrease was factored
into our plan, and our business is progressing in accordance with it.
Net sales in the Game Field were ¥2,195,976 thousand, primarily as the result of game software sales by D3 Inc. inNorth America progressing steadily, with those in Europe going full-scale.
Net sales in the Other Field were ¥972,085 thousand mainly due to the fact that FutureScope fully implemented theprovision of pachinko information to consumers via mobile sites.
Revenue and profit for the first quarter of the year ended June 30, 2007, were as follows:
Operating income for the first quarter ended June 30, 2007, decreased 26.9% to ¥2,322,818 thousand.
Operating income in the PS Field was ¥2,540,074 thousand. Although the number of pachinko machines sold during
the quarter under review decreased from a year earlier, reduction of expenses for sales promotion contributed to a steadyincrease in operating income.
Operating income in the Game Field was ¥12,997 thousand, mainly as the result of game software sales by D3 Inc.
progressing steadily in Japan.
Operating income in the Other Field was decreased ¥228,640 thousand, mainly due to the fact that performance ofJapan Sports Marketing Inc. was sluggish.
Ordinary income decreased 23.0% to ¥2,627,373 thousand.
Non-operating income was ¥352,883 thousand, mainly due to an increase in an equity method investment gain at Rodeo
Co., Ltd., our equity-method affiliate.

Consequently, net income for the first quarter of the year ended June 30, 2007, decreased 30.3% to ¥1,156,602
thousand.

4

Analysis by Business Segment(1) PS Field
The business environment surrounding pachinko halls is currently at a significant turning point.
To restrain obsessive gambling, new regulation pachislot machines (so-called regulation five) were introduced, andthe full-scale shift to regulation five machines is under way. Last summer through last fall, popular models werewithdrawn and the number of active pachislot machines has been decreasing. However, the pachislot market willconsist only of new regulation machines by fall of this year. By then, the use of pachislot machines should recover. Alsoin the market for regulation five machines, pachinko halls are becoming more discerning and have started separating
the machines which sell well from those which do not. There are high expectations for manufacturers to develop highly
entertaining, quality pachislot machines instead of machines for gambling.
Influenced by the decrease in the number of active pachislot machines, which were previously a large source ofrevenue, pachinko halls are also increasingly particular in choosing pachinko machines. In contrast to extremely
successful machines with highly entertaining features that attract many customers, sales of products with weakerfeatures tend to be sluggish. Such a phenomenon is increasingly evident. To cope with such difficulties, major
manufacturers have started to take a different approach. They have begun to decrease the number of machinesdeveloped, thereby providing the funding and time to create machines with high product performance—a new trend. At
the same time, development of low-priced machines is ongoing, thereby keeping total replacement costs to a minimum,
and they are expected to contribute to the well-balanced operation of pachinko halls.
The operating environment surrounding the pachinko industry remains unavoidably difficult for the time being.
However, outstanding machines with a strong capacity to both attract customers and offer high profitability are
emerging, and product lineups that maintain total cost balance are in the pipeline. Pachinko machines are evolving, andwe believe the new machines will boost profitability and lead to a sound overall recovery.
Given such conditions, the results for businesses in the PS Field were as follows:
Pachinko machine sales business
Anticipating that a large portion of the short-term investment by pachinko halls will be used to purchase pachislot
machines to address replacement in compliance with regulation five, we do not plan to introduce many pachinko
machines in the first half of the year ending March 31, 2008. During the first quarter of the year ended June 30, 2007,
we introduced one model, CR LOONEY TUNES BIA, by Bisty Co., Ltd. For the second quarter ending September 30,
2007, we will introduce only one model again, CR Sakura Taisen by Sammy Corporation, which we have alreadyannounced, receiving a higher-than-anticipated number of orders.
The Company will take advantage of this period to review all its products scheduled for release and improve quality.
Following such improvements, we will launch more than five models in the second half of the year ending March 31,
2008.
Consequently, during the first quarter of the year ended June 30, 2007, only one model was launched and the numberof pachinko machines sold was 27,774, down 57.6％ compared with 65,637 for the same period a year earlier.
The machines sold in the first quarter included some of the CR Neon Genesis Evangelion—Kiseki no Kachiwa
machines. Sales of CR Neon Genesis Evangelion—Kiseki no Kachiwa started in the previous fiscal year.
Pachislot machine sales business
Pachinko halls must address a historic, large-scale replacement of machines in June, July and September 2007 given
the deadlines stipulated for the use of old regulation machines. To address this shift, we planned the launch of twomodels in June, two models in July and two or three models in September.
In June, we released the Morning Musume and the Devil May Cry 3 machines, the latter of which was jointly
developed with Capcom. Devil May Cry 3, which is dramatically rendered with exquisitely beautiful artwork andfeatures innovative game play, has been highly acclaimed and, despite limited sales, became a hit through cumulative
machine sales of about 49,000, including approximately 41,000 sold during the first quarter.
As a result, for the first quarter we launched two models and the number of pachislot machines sold declined 2.2%
from 58,637 from the same period last year to 57,375, including some of the new regulation pachislot machines thatwere introduced in the previous fiscal year.
For the second quarter, we launched two models including Neon Genesis Evangelion—‘Magokoro wo Kimini’ by
Bisty Co., Ltd. This title continues to gain in popularity among pachinko halls and fans, and the number of orders
received is steadily expanding as a result. Sales of this title will be recorded in the second quarter and are not includedin the first-quarter results.
In September, the replacement of major, old regulation pachislot machines, such as Ore-no-Sora, is scheduled.
Focusing on major products, we plan to launch two or three models.

5Changes of representative performance indicators in the PS Field segment

Net sales
Operating income(loss)

Fiscal year ended
March 31, 2006
88,168,782
12,711,000First half ended
September 30, 2006
40,966,146

Fiscal year ended
March 31, 2007
71,064,425

5,026,461

9,073,848(Thousands of yen)First quarter ended
June 30, 2007
21,066,502
2,540,074(2) Game Field
D3 Inc., which mainly focuses on the sales development of the SIMPLE Series for Nintendo DS, steadily expanded its
domestic sales of low-priced software. In regards to full priced game software, D3 shipped more than 160,000 copies ofWinning Pachinko★Pachislot Series Vol. 10 CR Neon Genesis Evangelion—Kiseki no Kachiwa, which is the latest
simulator software for pachinko/pachislot machines developed through synergies with the Company. In overseas markets,
D3 released one low-priced software title and three full-priced titles in North America and Europe focused on sales of
titles supplied from North America and Japan.
D3 reviewed delivery schedules for rich game content for mobile phones. The number of paying members for
low-priced game content and ladies’ content sites based on the rich game content exceeded 960,000, which is a stablerevenue source.
ThinkArts Co., Ltd. is strengthening business tie-ups with the Fields Group companies such as D3 Inc. and Fields
Pictures Corporation, and aggressively developing game software using rights to well-known copyrighted characters
acquired by the Fields Group.
Changes of representative performance indicators in the Game Field segment

Net sales
Operating income(loss)

Fiscal year ended
March 31, 2006
5,042,102

First half ended
September 30, 2006
3,878,951

Fiscal year ended
March 31, 2007
9,847,658

277,681(81,446)

220,149(Thousands of yen)First quarter ended
June 30, 2007
2,195,976
12,997(3) Other Field
In the Other Field segment, in February 2007, FutureScope Corporation started a new service for providing generalentertainment information to consumers on the mobile website Fields Mobile, an official NTT DoCoMo website, andexpanded services to SoftBank mobile carriers in May 2007 and to au in July of the same year. As of June 30, 2007, thenumber of paying members exceeded 100,000.
Fields Pictures Corporation continued investments in movie, animation and content funds to help the entire Groupboost the creation of primary content.
Although the performance of Japan Sports Marketing Inc. lags slightly behind the business plan, it continued to review
and reorganize each of its three mainstay businesses: the rights-related sports business, the athlete management businessand the solution business.
Changes of representative performance indicators in the Other Field segment

Net sales
Operating income(loss)

Fiscal year ended
March 31, 2006
3,603,479

First half ended
September 30, 2006
2,277,085

Fiscal year ended
March 31, 2007
4,409,061(655,529)(286,925)(513,444)

6(Thousands of yen)First quarter ended
June 30, 2007
972,085(228,640)

2. Qualitative Information on the Consolidated Financial Position
Balance Sheet Analysis
Assets, Liabilities and Net Assets
Total assets increased 27.1% year over year to ¥83,971,520 thousand.
Current assets increased 35.3% to ¥62,450,324 thousand.
Increased net sales included increases totaling ¥4,520,315 thousand in cash, cash equivalents, notes and accounts
receivable—trade. An increase of ¥10,623,100 thousand in inventories was mainly attributable to the inclusion of someof the newly manufactured new regulation machines, known as Neon Genesis Evangelion—‘Magokoro wo Kimini.’
They were manufactured before the scheduled delivery in July to cope with quick-turnaround/large-scale replacement
responding to new regulations introduced in the PS Field.
Tangible fixed assets increased 13.6% to ¥6,539,336 thousand.
This increase was attributable to an increase in construction in progress mainly due to the moving of branch officesin the PS Field.
Intangible fixed assets increased 15.4% to ¥4,658,520 thousand.
This increase was attributable mainly to an increase in goodwill in the Game Field.
Investments and other assets increased 1.8% to ¥10, 323,338 thousand.
This increase was mainly attributable to increases in equity investment and claims in bankruptcy, which offset a
decrease of ¥114,440 thousand in investment securities in the PS Field.
Total liabilities increased 74.9% year over year to ¥40,655,257 thousand.
Current liabilities increased 92.6% to ¥36,329,374 thousand.
This increase was attributable to an increase in accounts payable—trade due to the accounting for inventories of the
Neon Genesis Evangelion—‘Magokoro wo Kimini’ new regulation machines in the PS Field (as explained in relation
with current assets above), an increase in short-term borrowings and a decrease in income taxes payable.
Long-term liabilities decreased 1.2% to ¥4,325,883 thousand.
This decrease was principally attributable to decreases in long-term guarantee deposits received, long-termborrowings and an increase in the retirement benefits provisions.
Net assets increased 1.1% year over year to ¥43,316,262 thousand.
This increase was mainly attributable to increases in retained earnings and foreign currency translation adjustment.

Cash Flow Analysis
Cash flows
Cash and cash equivalents for the first quarter of the fiscal year ended June 30, 2007, increased ¥2,854,323 thousand
from the same period last year to ¥20,674,252 thousand, after taking into account net cash provided by operating
activities of ¥5,411,415 thousand, ¥2,145,358 thousand in net cash used by financing activities and ¥487,109 thousandin net cash used in investing activities.
Cash flows from operating activities
Net cash provided by operating activities totaled ¥5,411,415 thousand. The principal components of this wereincome before income taxes of ¥2,572,144 thousand, an increase of ¥926,615 thousand in accounts receivable—trade,an increase of ¥10,595,374 thousand in inventories, an increase of ¥16,865,501 thousand in notes and accounts
payable—trade and ¥1,942,554 thousand in income taxes paid.
Cash flows from investing activities
Net cash used in investing activities totaled ¥2,145,358 thousand. The principal factors in this were purchases oftangible fixed assets totaling ¥1,826,798 thousand, purchases of intangible fixed assets totaling ¥238,227 thousand andproceeds from sales of investment securities totaling ¥400,000 thousand.
Cash flows from financing activities
Net cash used by financing activities amounted to ¥487,109 thousand. This was primarily attributable to an increasein short-term borrowings totaling ¥424,000 thousand, payments for long-term borrowings totaling ¥223,968 thousand
and cash dividends paid totaling ¥583,977 thousand.

7

3. Qualitative Information on Projections for the Consolidated Business Results
Regarding the projections for consolidated business results for the fiscal year ending March 31, 2008, ourperformance during the first quarter was almost as projected. Therefore, at present, there is no change in the forecast
earnings for the year ending March 31, 2008 (April 1, 2007, to March 31, 2008) in the Summary of Financial
Statements and Business Results (Consolidated) for the Year Ended March 31, 2007, which were announced as of May
14, 2007.

4. Other(1) Significant change in subsidiaries during the first quarter (Change of particular subsidiaries resulting in a change in thescope of consolidation):
None applicable(2) Adoption of simplified accounting method:
In computation of part of expenses for taxes, we adopt a simplified method.
(3) Change in accounting methods in preparation of consolidated financial statements:
None applicable

8

〔Attached documents〕

5. Consolidated Financial Statements (Condensed)(1) Consolidated Balance Sheets (Condensed)(Thousands of yen)

PeriodItem

The first quarter ended June30, 2006

The first quarter ended June30, 2007(Reference)
Fiscal year ended
March 31, 2007

(As of June 30, 2006)(As of June 30, 2007)(As of March 31, 2007)

AmountAssetsI Current assets
1. Cash and cash equivalents
2. Notes and accounts
receivable—trade
3. Marketable securities
4. Inventories
5. Merchandising rights
advances
6. Other current assets
7. Allowance for doubtful
accounts
Total current assets
II Fixed assets
1. Tangible fixed assets
2. Intangible fixed assets(1) Goodwill(2) Other intangible fixed
assetsTotal intangible fixed assets
3. Investments and other assets(1) Investment securities(2) Other assets(3) Allowance for doubtful
accounts
Total investments and otherassetsTotal fixed assets
Total Assets% total%Amount% total%Amount

14,451,646
23,497,489

20,859,706
20,086,421

17,902,518
18,523,292

199,915
2,171,879
3,224,237－
13,595,641－－
2,972,540－

2,782,496(149,225)

7,966,343(57,787)

6,803,929(57,592)% total%46,178,439

72.5

62,450,324

74.4

46,144,689

69.8

4,673,247
2,738,582
－
－

7.4
4.3

6,539,336－
1,799,152
2,859,367

7.8－

5,756,417－
1,405,855
2,630,323

8.7
－

－

－

4,658,520

5.5

4,036,178

6.1

7,005,629
3,219,449(153,555)

6,102,527
4,477,013(256,203)

6,216,967
4,199,585(272,280)

10,071,523

15.8

10,323,338

12.3

10,144,272

15.4

17,483,352
63,661,791

27.5
100.0

21,521,195
83,971,520

25.6
100.0

19,936,868
66,081,557

30.2
100.0

9

(Thousands of yen)

PeriodItem

The first quarter ended June30, 2006

The first quarter ended June30, 2007(Reference)
Fiscal year ended
March 31, 2007

(As of June 30, 2006)(As of June 30, 2007)(April 1, 2006–March 31, 2007)

AmountAmountLiabilities
I Current liabilities
1. Accounts payable—trade
2. Short-term borrowings
3. Current portion of long-termborrowings
4. Corporate bonds redeemablewithin 1 year
5. Accrued bonuses
6. Accrued bonuses to directors
and auditors
7. Other current liabilities
Total current liabilities

5,459,547
18,283,132

II Fixed liabilities
1. Corporate bonds
2. Long-term borrowings
3. Retirement benefit provisions
4. Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
I Shareholders’ equity
1. Common stock
2. Capital surplus
3. Retained earnings
Total shareholders’ equity
II Valuation and translationdifferences
1. Unrealized holding gain on
available-for-sale securities
2. Foreign currency translation
adjustment
Total valuation and translationdifferences
III Stock acquisition rights
IV Minority interest
Total net assets
Total Liabilities and Net Assets% total%% total%Amount11,324,585
1,130,000
204,668

27,061,147
2,611,499
931,606

9,094,526
2,230,000
917,750

110,000

120,000

120,000

54,331－36,80098,00025,00098,00028.7

5,470,320
36,329,374

490,000
333,330
169,445
2,511,983
3,504,759
21,787,891

5.5
34.2

370,000
1,043,528
206,972
2,705,383
4,325,883
40,655,257

7,948,036
7,994,953
23,577,354
39,520,344

12.5
12.6
37.0
62.1

7,948,036
7,994,953
25,406,309
41,349,299% total%43.3

6,379,893
18,865,169

28.6

5.1
48.4

370,000
1,238,852
195,1122,575,731
4,379,696
23,244,865

6.6
35.2

49.2

7,948,036
7,994,953
24,943,694
40,886,683

61.9

733,725

214,822214,822

7,547

23,907

13,609741,273

1.2

238,7290.3

228,4310.3－
1,612,283
41,873,900
63,661,791

2.5
65.8
100.0

20,472
1,707,761
43,316,262
83,971,520

0.0
2.1
51.6
100.0

15,907
1,705,668
42,836,691
66,081,557

0.0
2.6
64.8
100.0

10

(2) Consolidated Statements of Income (Condensed)(Thousands of yen)

PeriodItem

The first quarter ended
June 30, 2006

The first quarter ended
June 30, 2007

(Reference)
Fiscal year ended
March 31, 2007

(April 1, 2006–June 30, 2006)(April 1, 2007–June 30, 2007)(April 1, 2006–March 31, 2007)

AmountI Net sales
II Cost of sales
Gross profit

25,362,998
17,792,660
7,570,338% total
%
100.0
70.2
29.8

III Selling, general andadministrative expenses
Operating income

4,393,466

24,234,564
17,470,847
6,763,717% total
%
100.0
72.1
27.9

85,321,144
56,072,618
29,248,525% total
%
100.0
65.7
34.3

17.3

4,440,899

18.3

20,303,549

23.8

3,176,872

12.5

2,322,818

9.6

8,944,975

10.5

IV Non-operating income
V Non-operating expenses
Ordinary income

268,069
31,441
3,413,500

1.1
0.1
13.5

352,883
48,3282,627,373

1.4
0.2
10.8

439,008
181,446
9,202,537

0.5
0.2
10.8

VI Extraordinary income
VII Extraordinary losses
Income before income taxes andminority interest
Current income taxes
Minority interest
Net income

905
13,7493,400,656

0.0
0.1
13.4

3,617
58,8452,572,144

0.0
0.2
10.6

110,527
1,086,070
8,226,994

0.1
1.3
9.6

1,742,854(469)
1,658,271

6.9
0.0
6.5

1,415,542－
1,156,602

5.8

4,433,381
83,3883,710,224

5.2
0.1
4.3

11

Amount4.8

Amount(3) Consolidated Statements of Cash Flows (Condensed)(Thousands of yen)

PeriodItem

I Cash flows from operating activities
1. Income before income taxes and minority
interest
2. Depreciation and amortization
3. Amortization of excess of net assets acquired
over cost
4. Amortization of goodwill
5. Increase (decrease) in allowance for doubtful
accounts
6. Increase (decrease) in accrued bonuses
7. Increase (decrease) in retirement benefit
provisions
8. Increase (decrease) in reserve for retirement
benefits for directors and auditors
9. Interest and dividend income
10. Discounts on purchases
11. Equity method investment gain (loss)
12. Interest expense
13. Loss on disposal of fixed assets
14. Decrease (increase) in notes and accounts
receivable—trade
15. Decrease (increase) in inventories
16. Decrease (increase) in merchandising rightadvances
17. Decrease (increase) in prepaid expenses
18. Decrease (increase) in advance payments
19. Decrease (increase) in notes held
20. Decrease (increase) in non-operating notes
receivable
21. Decrease (increase) in deposits as security for
dealing
22. Increase (decrease) in notes and accounts
payable—trade
23. Increase (decrease) in accrued consumptiontaxes
24. Increase (decrease) in deposits received
25 Increase (decrease) in guaranty deposits held
26. Payments of bonuses to directors and auditors
27. Others
Subtotal
28. Interest and dividends received
29. Interest paid
30. Income taxes paid
Net cash provided by (used in)operating activities

The first quarter ended
June 30, 2006

The first quarter ended
June 30, 2007

(Reference)
Fiscal year ended
March 31, 2007

(April 1, 2006–June 30,
2006)(April 1, 2007–June 30,
2007)(April 1, 2006–March 31,
2007)

AmountAmountAmount3,400,656

2,572,144

8,226,994

196,667
96,495

176,512－

817,867－－(894)

106,922(15,881)429,602
26,18629,331
6,797

11,80011,859－32,464(607,100)－(607,100)(25,930)(201,904)(59,065)
6,541
1,580
23,375,678(35,754)(21,938)(170,801)
20,42057,057(926,615)(86,777)(215,522)
92,95358,538743,948
28,719,949(665,773)
292,245(10,595,374)(245,811)(1,341,601)
944,467

318,691
120,996
14,187410,247(5,780)73,509114,186
289,224

331,993
52,457(37,764)(175,764)

20,000(100,000)

20,000(23,312,910)

16,865,501(26,297,458)(81,110)(190,418)(152,127)

317,853
130,997(105,000)(739,357)
2,939,920
71,672(6,612)(3,727,047)(722,066)(739,129)(65,788)－
131,643
7,317,488
55,834(19,353)(1,942,554)
5,411,415

530,005
190,937(105,000)(87,962)
12,111,288
132,979(63,241)(6,887,285)
5,293,740

12

(Thousands of yen)

PeriodItem

II Cash flows from investing activities
1. Purchases of investment securities
2. Purchases of tangible fixed assets
3. Purchases of intangible fixed assets
4. Purchases of investment securities
5. Proceeds from sale of investment securities
6. Expenditure for acquiring shares in affiliates
7. Expenditure for loans
8. Collection on loans
9. Payment for deposits and guarantees
10. Proceeds from cancellation of deposits andguarantees
11. Payment for long-term prepaid expenses
12. Others
Net cash used in investing activities
III Cash flows from financing activities
1. Increase (decrease) in short-term borrowings
2. Repayment of long-term borrowings
3. Cash dividends paid
4. Others
Net cash provided by (used in)financing activities
IV Effect of exchange rate changes on cash andcash equivalents
V Increase (decrease) in cash and cash
equivalents
VI Cash and cash equivalents at beginning of year
VII Increase in cash and cash equivalents due tochange in scope of consolidation
VIII Cash and cash equivalents at end of the firstquarter

The first quarter ended
June 30, 2006

The first quarter ended
June 30, 2007

(April 1, 2006–June30, 2006)
Amount(April 1, 2007–June30, 2007)
Amount(Reference)
Fiscal year ended
March 31, 2007
(April 1, 2006–March
31, 2007)
Amount(199,915)(82,073)(30,921)(487,541)
500,000(15,000)(143,398)
15,841(8,384)
13,533－(1,826,798)(238,227)(136,899)
400,000－(25,000)
4,053(4,697)77,604－(1,113,515)(2,425,998)(1,050,850)
758,657(16,000)(23,998)
40,421(363,421)
136,506－
99,639(338,218)(2,942)(392,450)(2,145,358)(8,934)(705,580)(4,772,711)

400,000(43,667)(613,554)－(257,221)

424,000(223,968)(583,077)(104,063)(487,109)

1,477,164(418,091)(1,389,956)
1,819,554
1,488,670(8,160)75,37632,727(1,325,667)

2,854,323

2,042,426

15,777,313－

17,819,928－

15,777,313
188

14,451,646

20,674,252

17,819,928

13

(4) Segment Information
1. Segment information by business category
First quarter ended June 30, 2007 (April 1, 2007– June 30, 2007)(Thousands of yen)

Elimination or
Consolidated
incorporation

PS FieldGame Field

Other Field

Total

21,066,502

2,195,976

972,085

24,234,564－

I. Net Sales and Operating Income
or Loss
Net Sales:(1) Sales to third parties(2) Inter-group sales or transfers
Total
Operating expenses

24,234,564

27,41327,15017,47772,041(72,041)－

21,093,915

2,223,126

989,563

24,306,606(72,041)

24,234,564

18,553,841

2,210,129

1,218,204

21,982,175(70,428)

21,911,746

Operating income (loss)
2,540,074
12,997(228,640)
2,324,431(1,612)
2,322,818
Notes:
1. Based on the proximity of services or others provided, the Company’s businesses are segmented into PS Field, Game Field and Other
Field.
2. The major products or services in each segment are as follows:(1) PS Field: Purchasing, sales, planning and development of pachinko/pachislot machines and related services(2) Game Field: Planning, development and sales of packaged software, such as game software(3) Other Field: Sports management and others
3. All operating expenses are allocated to individual segments, and thus none remain unallocated.
Fiscal year ended March 31, 2007 (April 1, 2006–March 31, 2007)(Thousands of yen)

Elimination or
Consolidated
incorporation

PS FieldGame Field

Other Field

Total

71,064,425

9,847,658

4,409,061

85,321,144－

85,321,144

242,429

99,175

1,112,150

1,453,756(1,453,756)－

I. Net Sales and Operating Income
or Loss
Net Sales:(1) Sales to third parties(2) Inter-group sales or transfers
Total
Operating expenses

71,306,854

9,946,833

5,521,211

86,774,900(1,453,756)

85,321,144

62,233,005

9,726,684

6,034,656

77,994,347(1,618,178)

76,376,168

Operating income (loss)
9,073,848
220,149(513,444)
8,780,553
164,4228,944,975
Notes:
1. Based on the proximity of services or others provided, the Company’s businesses are segmented into PS Field, Game Field and Other
Field.
2. The major products or services in each segment are as follows:(1) PS Field: Purchasing, sales, planning and development of pachinko/pachislot machines and related services(2) Game Field: Planning, development and sales of packaged software, such as game software(3) Other Field: Sports management and others
3. All operating expenses are allocated to individual segments, and thus none remain unallocated.
2. Segment information by region
First quarter ended June 30, 2007 (April 1, 2007– June 30, 2007)
Since Japan accounts for more than 90% of total sales and of total assets in all segments, the Company does not disclose segment
information by region.
Fiscal year ended March 31, 2007 (April 1, 2006–March 31, 2007)
Since Japan accounts for more than 90% of total sales and of total assets in all segments, the Company does not disclose segment
information by region.
3. Overseas sales
First quarter ended June 30, 2007 (April 1, 2007– June 30, 2007)
Since overseas sales account for less than 10% of consolidated net sales, the Company does not disclose overseas sales.
Fiscal year ended March 31, 2007 (April 1, 2006–March 31, 2007)
Since overseas sales account for less than 10% of consolidated net sales, the Company does not disclose overseas sales.

14

〔Attached documents〕

6. Non-Consolidated Financial Statements (Condensed)(1) Non-Consolidated Balance Sheets (Condensed)(Thousands of yen)

PeriodItem
AssetsⅠ Current assets
1. Cash and cash equivalents
2. Notes receivable—trade
3. Accounts receivable—trade
4. Marketable securities
5. Inventories
6. Merchandising rights
advances
7. Deferred tax assets
8. Other current assets
9. Allowance for doubtful
accounts
Total current assets
Ⅱ Fixed assets
1. Tangible fixed assets
2. Intangible fixed assets
3. Investments and other assets(1) Investment securities(2) Investments in
subsidiaries and affiliates(3) Other current assets(4) Allowance for doubtful
accounts(5) Allowance for investment
lossesTotal investments and otherassetsTotal fixed assets
Total Assets

The first quarter ended June30, 2006

The first quarter ended June30, 2007(As of June 30, 2006)(As of June 30, 2007)

AmountAmount% total%（Reference）
Fiscal year ended
March 31, 2007
(As of March 31, 2007)% total%Amount% total%12,030,858
13,827,069
8,547,081
199,915
482,8033,305,204

17,917,022
3,302,154
15,153,239－
10,127,407－

14,083,737
3,346,712
13,152,225－
358,410－463,003
1,056,409(141,000)－
5,440,779(50,200)－
5,362,172(50,200)

39,771,346

68.8

51,890,403

70.1

36,253,059

63.0

3,918,630
1,034,735

6.7
1.8

6,038,556
2,779,003

8.2
3.7

5,245,492
2,576,733

9.1
4.5

2,842,744
7,330,550

2,086,560
7,876,550

2,351,362
7,876,550

3,575,740(611,571)

3,875,192(524,411)

3,745,827(539,704)(20,000)－－

13,117,464

22.7

13,313,891

18.0

13,434,034

23.4

18,070,829
57,842,175

31.2
100.0

22,131,451
74,021,854

29.9
100.0

21,256,261
57,509,320

37.0
100.0

15

（Thousands of yen）

PeriodItem
Liabilities
Ⅰ Current liabilities
1. Accounts payable—trade
2. Accrued bonuses
3. Accrued bonuses to directors
and auditors
4. Other current liabilities
Total current liabilities
Ⅱ Fixed liabilities
1. Retirement benefit provisions
2. Guarantee deposits held
Total fixed liabilities
Total liabilities
Net Assets
Ⅰ Shareholders’ equity
1. Common stock
2. Capital surplus(1) Additional paid-in capital
Total capital surplus
3. Retained earnings(1) Legal reserve(2) Other retained earnings
General reserve
Retained earnings carriedforward
Total retained earnings
Total shareholders’ equity
Ⅱ Valuation and translationdifferences
1. Unrealized holding gain on
available-for-sale securities
Total valuation and translationdifferences
Total net assets
Total Liabilities and Net Assets

The first quarter ended June30, 2006

The first quarter ended June30, 2007（Reference）
Fiscal year ended
March 31, 2007

(As of June 30, 2006)(As of June 30, 2007)(As of March 31, 2007)

AmountAmount% total%10,854,903
44,500－3,885,090
14,784,494% total%25,174,108
36,80098,00025.6

3,313,637
28,622,545

151,665
2,515,792
2,667,458
17,451,952

Amount% total%8,199,531
25,00098,00038.7

4,435,515
12,758,046

22.2

4.6
30.2

183,633
2,510,125
2,693,759
31,316,305

3.6
42.3

173,879
2,575,731
2,749,611
15,507,658

4.8
27.0

7,948,036

13.7

7,948,036

10.7

7,948,036

13.8

7,994,953
7,994,953

13.8

7,994,953
7,994,953

10.8

7,994,953
7,994,953

13.9

9,580

9,580

9,580

20,000,000
3,703,928

20,000,000
6,538,156

20,000,000
5,834,270

23,713,508
39,656,497

41.0
68.5

733,725

26,547,736
42,490,726

35.9
57.4

214,822

25,843,850
41,786,839

44.9
72.6

214,822733,725

1.3

214,8220.3

214,8220.4

40,390,223
57,842,175

69.8
100.0

42,705,548
74,021,854

57.7
100.0

42,001,662
57,509,320

73.0
100.0

16

(2) Non-Consolidated Statements of Income (Condensed)（Thousands of yen）

PeriodItem

The first quarter ended June30, 2006

The first quarter ended June30, 2007(Reference)
Fiscal year ended
March 31, 2007

(April 1, 2006–June 30, 2006)(April 1, 2007–June 30, 2007)(April 1, 2006–March 31, 2007)

Amount% total
%
100.0
70.5
29.5

Amount% total
%
100.0
72.7
27.3

Amount% total
%
100.0
64.7
35.3

Ⅰ Net sales
Ⅱ Cost of sales
Gross profit

22,756,001
16,035,199
6,720,801

Ⅲ Selling, general andadministrative expenses
Operating income

3,441,548
3,279,252

14.4

2,531,085

12.0

8,999,882

12.6

Ⅳ Non-operating income
Ⅴ Non-operating expenses
Ordinary income

256,895
189
3,535,958

1.1
0.0
15.5

104,041
21,0992,614,027

0.5
0.1
12.4

407,792
13,9909,393,684

0.6
0.0
13.2

Ⅵ Extraordinary income
Ⅶ Extraordinary losses
Income before income taxes
Current income taxes
Net income

905－
3,536,864
1,588,052
1,948,812

0.0
－
15.5
7.0
8.5

1,757
55,5532,560,231
1,162,345
1,397,886

0.0
0.3
12.1
5.5
6.6

89,824749,299
8,734,209
3,961,054
4,773,154

0.1
1.1
12.2
5.5
6.7

15.1

17

21,094,322
15,336,356
5,757,966
3,226,881

15.3

71,314,702
46,164,048
25,150,654
16,150,772

22.7