The Greatest Leisure for All People

First Quarter of the Year Ending March 31, 2018

Financial Presentation

FIELDS CORPORATIONTSE 1st : 2767
August 1, 2017

I N D E X
1

2Overview

Summery of results for the first quarter ofthe year ending March 31, 2018

Topics

Topics for the first quarter ofthe year ending March 31, 2018

1. Overview

P.2

1. Initiatives based on business model

P.10

2. Consolidated P/L (summary)

P.3

2. HERO’s related IP × Visual business platform

P.11

3. Comparisons with the previous period(based on ordinary income)

P.4

3. Pachinko/pachislot business platform

4. Consolidated B/S (summary)

P.5[1] Regarding the draft revised reguration

P.12

5. Consolidated cash flow (summary)

P.6[2] Future initiatives of Fields

P.16[3] Initiatives for expand of product line-up

P.17[4] Constitution of product line-up

P.18

Forecast

Performance forecast for
the year ending March 31,2018

1. Performance forecast for the year ending
March 31, 2018

Q1 3/20183

P.7

2. Pachinko/pachislot line-up at the first half of theyear ending March 31, 2018

P.8

3. Reference) States of “Pachinko GANTZ” sales

P.9

4

Appendix(Reference): Other topics for the first quarter ofthe year ending March 31, 2018

1. Visual business platform

P.19

2. Ultraman series

P.20

Copyright 2017

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1

Overview

1 -1. Overview

Results for the first quarter roughly in line with full-year projections■ Summery of results for the first quarter of the year ending March 31, 2018
・ Net sales: 12.4 billion yen (YoY 2.8 billion yen down)－ Pachinko/pachislot machine sales: 27,000 machines (YoY 9,000 machines down)
・ SG&A: 4.8 billion yen (YoY 0.6 billion yen down)－ Effects of management efficiency from previous period
・ Operating loss: 2.9 billion yen (YoY 90 million yen up)－Decrease in net sales, but operating income (loss) remains on par YoY due to improved
management efficiency and other effects■ Full-year forecast
・ No change

Q1 3/2018

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Overview

1 -2. Consolidated P/L (summary)
Decrease in net sales, but operating income (loss) remains on par
year-on- year due to improved management efficiency and other effects(Unit: Billions of yen)

Year ended March 31, 2017

Net salesYear ending March 31, 2018

Q1

Full-year

Q1

15.2

76.6

12.4

100.0%

100.0%

100.0%

YoY
increase/decrease

YoY
increase/decrease (%)-2.8-18.6%-0.5-21.1%-0.6-11.3%

2.4

17.6

1.9

16.3%

23.0%

15.8%

5.4

23.0

4.8

35.9%

30.0%

39.1%

Operating income

(2.9)

(5.3)

(2.9)

＋0.09

－

Ordinary income

(3.2)

(9.0)

(3.0)

＋0.1

－

(2.3)

(12.4)

(2.7)

-0.4

－

Gross profit
SG&A
expenses

Net income attributable toowners of parent

－
－
－

－
－
－

－
－
－

* “%” indicate the ratio to net sales. Figures have been rounded down to the nearest billion yen

Total sales ofmachines
Pachinko
Pachislot

Q1 3/2018

36

243

27

(5 titles)(15 titles)(5 titles)

24

155

14

(2 titles)(6 titles)

(－)

12

87

12

(3 titles)(9 titles)(5 titles)(Unit: Thousand machines)

Copyright 2017

-9.0

-26.3%-10.0-41.1%

＋0.4

＋3.8%

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1 -3. Comparisons with the previous period

Overview(based on ordinary income)Q1 ordinary income (loss) roughly in line with previous period
Q1
Year ended
March 31, 2017

(Unit: Billions of yen)
Q1
Year ending
March 31, 2018

Main factors of YoY increase/decrease

(3.0)

(3.2)

Decrease in
Results of management
Non-operating expenses
efficient (2)(equity method investment loss)

Pachinko-pachislot field
Decrease in gross profit withsales volume down etc. (1)

(0.4)

＋0.6

Others

＋0.1

(0.1)

item

Main difference factors (1)item

Main difference factors (2)Overall

Pachinko

Decrease of 10,000 machines YoY.
Taking into consideration the market environment,
sale of competitive pachinko titles are planned in
the second half

Effects of selection and concentration, and revisionof operations

SG&A

Effect of optimization of pachinko/pachislot
machines sales promotion* Figures have been rounded down to the nearest billion yen.

Q1 3/2018

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Overview

1 -4. Consolidated B/S (summary)
20 billion yen in cash reserves to construct a stable financial base

(Unit: Billions of yen)

Increase/decrease

March 31, 2017

June 30, 2017

45.8

41.6

23.1

27.6

+4.4

Tangible fixed assets

10.3

5.6

-4.7 Decrease in sales of land

Intangible fixed assets

2.4

2.2

-0.2

Investments and other assets

21.7

20.5

-1.1 Increase in long-term loans receivable

Total assets

80.3

70.0

-10.3

Current liabilities

20.4

13.9

-6.5 Decrease in notes and accounts payable–trade

Fixed liabilities

16.6

16.0

-0.6

Net assets

43.2

39.9

-3.2 Decrease in retained earnings

80.3

70.0

-10.3

Current assets(Cash and cash equivalents)

Total liabilities andnet assets

Main factors for increase/decrease
Decrease in notes and accounts receivable–trade-4.2 Increase in cash and cash equivalents

Decrease in sales of land/investment securities andshort-term loans

Decrease in sales of investment securities* Figures have been rounded down to the nearest billion yen.

Q1 3/2018

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Overview

1 -5. Consolidated cash flow (summary)
Increase in cash and cash equivalents to 4.4 billion yen
for the first quarter of the year ending March 31, 2018

(Unit: Billions of yen)

Year ended
Year ending
March 31, 2017 March 31, 2018
Q1
Q1

Operating cash flows

Investing cash flows

(4.8)

(0.2)

Main factors for increase/decrease(0.9)

Loss before income taxes
Decrease in notes and accounts receivable—trade
Decrease in notes and accounts payable—trad

4.9

Proceeds from sales of tangible fixed assets
Proceeds from sales of shares of subsidiaries andassociates
Payments of loans receivable
Increase in short-time loans payable
Repayments of long-term loans payable
Dividends paid

Financial cash flows

(3.5)

0.3

Net increase(decrease) incash and cash equivalents

(8.6)

4.4

Cash and cash equivalents at
beginning of period

32.2

23.0

Cash and cash equivalents at
end of period

23.5

27.5

-2.6
＋8.9
- 7.5
＋5.2
＋2.2
- 2.3
＋1.8
- 0.6
- 0.8

* Figures have been rounded down to the nearest 100 million.

Q1 3/2018

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Forecast

2 -1. Performance forecast for the year ending March 31,2018
Expand product lineup by strengthening relations with affiliated general sales
manufacturers and building new cooperation frameworks
Plan to sell several competitive titles in Q2 and later(Unit: Billions of yen)

Year ended March 31, 2017

Net sales
Operatingincome (loss)
Ordinary
income (loss)
Net income (loss)
attributable toowners of parent

Forecast for the year ending March 31, 2018

Q1

Full-year

Q1

Progress rate

Q2 - Q4

Full-year
forecast

15.2

76.6

12.4

14.6－15.1%

69.6－72.6

82.0－85.0

(2.9)

(5.3)

(2.9)

－

3.9－4.9

1.0－2.0

(3.2)

(9.0)

(3.0)

－

3.0－5.0

0.0－2.0(2.3)(12.4)(2.7)－

2.7－3.7

0.0－1.0(Unit: Thousand machines)

36

243

27

(5 titles)(15 titles)(5 titles)

Pachinko24(2 titles)

155(6 titles)

14
(－)

－

Pachislot

12(3 titles)

87(9 titles)

12(5 titles)－

Total sales

Q1 3/2018

10.0%

243＋α

（18－30 titles）

Copyright 2017270＋α（23－35 titles）

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Forecast

2 -2. Pachinko/pachislot line up at the first half of the year ending March 31,2018
Cooperative framework with Sammy Corporation and NewGin Co., Ltd./
Decision of released titles which is the part of MIZUHO CORP. brandPachislot

Pahinko
Titles ofcontinuity sales
from previous
period etc.

Q1
Pachislot Osomatsu-kun

PACHISLOT GRAPPLER BAKI

Pachislo Machine Ace Attorney

Pachi-Slot Marvel’s
The Avengers

Pachislot SORA NOOTOSHIMONO FORTE

14,000machines

12,000 machines

Q2

Pachislot
Yuki Yuna is a Hero

Resident Evil Revelations

Sengoku Pachislot Hana no Keiji- Ten wo Ugatsu Ikusayari*

Pachislot The Ambition of
Oda Nobuna

PACHISLOT TOUKIDENTime limit of regulation
5.5 new machines
installation
Kai-Dou-Sei
Million Arthur

THE AMAZING SPIDER-MAN

PACHISLOT TATAKAE!
SALARY-MAN

Pachislot Ys Ⅰ&Ⅱ

PACHI-SLOT ULTRASEVEN© ⾚塚不⼆夫／ぴえろ ©板垣恵介/FWD ©NANASHOW ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. ©2017 MARVEL©2010 ⽔無⽉すう／⾓川書店／新⼤陸発⾒部フォルテ ©DAXELねんどろいど協⼒／GOOD SMILE COMPANY ©2014Project2H ©DAXEL ねんどろいど協⼒／GOOD SMILE COMPANY ©CAPCOM CO., LTD. ALL RIGHTS RESERVED.
©隆慶⼀郎・原哲夫・ ⿇⽣未央/NSP1990 版権許諾証YSY-829 ©2012 春⽇みかげ・SB クリエイティブ／織⽥信奈の野望製作委員会 ©コーエーテクモゲームス ©NANASHOW©2012-2017 SQUARE ENIX CO., LTD. All Rights Reserved. ©UNIVERSAL ENTERTAINMENT ©MIZUHO ©2017 MARVEL ©OK!! ©2012 CPII Licensed by Ki/oon Music ©UNIVERSAL ENTERTAINMENT ©MIZUHO©Sammy ©Nihon Falcom Corporation ©Sammy ©円⾕プロ ©OK!!

Q1 3/2018

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Forecast

2 -3. Reference) States of “Pachinko GANTZ” sales

Additional orders received immediately after introduction due to visuals businessplatform and machine craftsmanship, with additional sales of over 10,000 machines
in the period ending March 2018
■ States of “Pachinko GANTZ” operation and sales volume

Installation date

－ January 9, 2017

States of operation－ Mean operations exceeded 17 weeks(approximately 4 months) after introduction

Sales volume(machine)
40,000Year ended March 31, 2017

Year ending March 31, 2018

30,00020,000Total 30,000 machines
and more

10,0000©奥浩哉／集英社 ©奥浩哉／集英社・「GANTZ:O」製作委員会 ©OK!!

Q1 3/2018

Dec.

Jan.

Feb.

Mar.

Copyright 2017

Apr.

May

Jun.

Jul.

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3-1. Initiatives based on business model (Q1－Q2)
For [IP × Visuals business platform], achieve IP re-adaptation throughnew visual production schemes
For [PS business platform], promote various types of measures including
those in response to regulatory reforms

Topics 2
Pchinko/pachislot business platform

Topics 1
IP × Visual business platform

Q1 3/2018

TopicsCopyright 2017

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3 -2. HERO’s related IP × Visual business platform

Topics“SWORDGAI” Global simultaneous distribution
Realization of the visual development of HERO’s related IP using new
visual production schemes■ Overview of the development

Global simultaneous distribution in beginning of 2018 (scheduled)
Original work of “Monthly HERO’s”
Visual development with the major partner companies
Development of goods in Japan along with distribution (scheduled)©⾬宮慶太・井上敏樹・⽊根ヲサム/ヒーローズ■ Business scheme (distribution first)[investing company]

Other major partner companies[production partnership]

Investment[Major distribution company]
Distribution rights

×Each rights/Dividend

Usage fee

■ States of other visual development－ Released the visual of four IP and new Ultraman series until Q2 for the year ending March 31, 2018
*Please refer to page 19 for the details

Q1 3/2018

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Topics

3 -3. Pachinko/pachislot business platform: [1] Regarding the draft revised regulations
Draft revisions to laws, ordinances, and rules related to the Amusement Businesses
Law announced in July 2017

■ Structure of related laws and regulations

Law on Control and Improvement of Amusement Businesses
Order for Enforcement of Act on Control and
Improvement of Amusement Business, etc.
(government ordinance)

Regulations of the National Public
Safety Commission
Latest revisions

ーRegulations for Enforcement of Act on Control and Improvement of
Amusement Business, etc.
ーRegulations for the verification of licenses, formats, and other aspects ofpachinko and pachislot machines

・・Q1 3/2018

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3 -3. Pachinko/pachislot business platform:

Topics[1] Regarding the draft revised regulations (pachislot)

Revision of ball output upper limit and certification test to lower winningprobability of pachislot to 2/3 of the level allowed under current regulation■ [Pachislot] Overview of the draft revised regulations
Content
Old regulation
New regulation

Model certification test

Token output
upper limit

Q1 3/2018

400G

480 tokens (payout)

One type: 300 tokens (payout)* The above is the upper limit for one type* The above is the upper limit for one type

Under 300%

Over 33.3%―Under 220%1,600G
6,000G

Over 40%―Under 150%
Under 150%

17,500G Over 55%―Under 120%

Over 50%―Under 126%
Over 60%―Under 115%

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3 -3. Pachinko/pachislot business platform:

Topics[1] Regarding the draft revised regulations (pachinko)

Together with revision of ball output upper limit and certification test to lower
winning probability of pachinko to 2/3 of the level allowed under current regulation,
control machines and settings (6 levels) have been approved■ [Pachinko] Overview of the draft revised regulations
Old regulation

New regulation

Ball output
upper limit

2,400 balls

1,500 balls

Under 300%

Over 33.3%―Under 220%

Model certification test

Content

OthersQ1 3/2018

1 hour4 hours
10 hours

Over 40%―Under 150%
Under 150%

Over 50%―Under 133.34%
・Addition of specification for control
machines
・Approval of settings (up to 6 types)
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3 -3. Pachinko/pachislot business platform:

Topics[1] Regarding the revised regulations (schedule)

Revised regulations will be announced in August 2017 and take effect from February 2018
Old regulatory machines can continue to be newly installed for three years with approval fromthe Security Communications Association■ [Pachinko] Overview of the revised regulations
February 2018

August 2017

Publication of revised
regulations

2017

2018

Enforcement of new
regulations

2019

2020

September

2021
January

Pachislot

Installation of regulation
5.5 new machines

Old regulation machines (5.9 regulation)
Model certification test of SCA*

－ July 2017ーJanuary 2018

Pachinko

Number of old regulatory machine models approved
by SCA: up to 50-60 titles (projection)

Old regulation machines
Model certification test of SCA*

－ July 2017ーJanuary 2018

Number of old regulatory machine models approved
by SCA: up to 80 titles (projection)

Installation of old regulation new machines(5.9 regulation)
New regulation machines (6.0 regulation)
Model certification test of SCA* and installation of new machines

Installation of old regulation machines
New regulation machines
Model certification test of SCA* and installation of new machines*SCA: Security Communications Association
Q1 3/2018

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3 -3. Pachinko/pachislot business platform: [2] Future initiatives of Fields

TopicsTake this regulation revision as an opportunity to contribute to the healthy growthand development of the entire industry through planning and proposals■ Future initiatives of Fields
Pachinko/pachislot
marketHeavy user centered
Now

High-stakes gamblingHigh unit cost

Wholesome playAfterrevisedregulations

Q1 3/2018

Initiatives of Fields
・ Short-term recovery of business result:Strengthening of distribution infrastructure:
Expand product line-up
・ Building of business structure that will not be
upset by changes in market environment
・ Supplying pachinko/pachislot solutions

Continue to contribute to the growthand development of the entire industry
through planning and proposals[Future focus points]

Popular entertainment
Low-stakes gambling

New machine

Data solution

Low unit cost

Copyright 2017

Real estate・・・
information

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Topics

3 -3. Pachinko/pachislot business platform: [3] Initiatives for expand product line-up
Building new cooperation framework with two machine manufacturers■Cooperation framework with Sammy Corporation■Cooperation framework with NewGin Co., Ltd.

Signed Basic Agreement on Sales Transactions on
June 20, 2017

Support development and sale of “Sengoku
Pachislo Hana no Keiji”－ Of the machines developed and manufactured by SammyGroup, a portion agreed upon with Sammy Corporation
will be sold as general sales distributor

Release of new machines (September 2017)－ “Pachislot Ys Ⅰ&Ⅱ”
－ “PACHISLOT TATAKAE!SALARY-MAN”－ Development support through our Group’s development
company－ Sales support through our distribution function

Future cooperation framework－ Support development in other deals, including those
involving other IP©Sammy ©Nihon Falcom Corporation ©Sammy

Q1 3/2018

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Topics

3 -3. Pachinko/pachislot business platform: [4] Constitution of product line-up

Expand this fiscal year’s product lineup by building up relations with affiliated generalsales manufacturers, Sammy Corporation, and NewGin Co., Ltd.

■ Product line-up for the year ending March 31, 2018
Beginning of the period plan(As of May 2017)

Revised plan(As of July 2017)

Pachinko

7 titles + α

7―13 titles

Pachislot

16 titles + α

16―22 titles

Total

23 titles + α

23―35 titles

Also expand title lineup for the year ending March 31, 2019 and later※Details being examined

Q1 3/2018

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18

Appendix

4 -1. Visual business platform

Four IP and new Ultraman series will be shown by Q2 for the year ending March 31, 2018

■ATOM THE BIGINNING■HURRICANE POLIMAR

Legendary IP

Legendary IP[Started broadcast]April―June 2017

[Release]
May 2017[Broadcast station]
NHK[Theater]
At 32 theaters nationwide[Distribution]
Amazon Prime Video and others■BERSERK■Altair: A Record of Battles
Recent/ Current IP[Started broadcast]April―June 2017

[Started broadcast]
July―December 2017

[Broadcast station]
MBS etc. Animeism slot, WOWOW[Broadcast station]
MBS etc. Animeism slot

[Distribution]
Crunchyroll and others[Distribution]
Amazon Prime Video©⼿塚プロダクション・ゆうきまさみ・カサハラテツロー・HEROʼS/アトム ザ・ビギニング製作委員会©三浦建太郎(スタジオ我画)・⽩泉社／ベルセルク製作委員会©2017「破裏拳ポリマー」製作委員会 ©カトウコトノ・講談社／将国のアルタイル製作委員会

Q1 3/2018

Recent/ Current IP(glossary)
Recent /Current IP… IP that has broadly permeated the younger generation
Legendary IP… IP that has broadly permeated the middle-aged and elderly…

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19

Appendix

4 -2. Ultraman series

Broadcast new television series from July 2017, and cultivate IP
through many points of customer contact
Visual

Comic

Game

ULTRAMAN GEEDULTRAMANUltraman series

July 2017
Started distribution along withTV broadcast

July 2017
Published volume 10
Exceeded total 2.6 million copies

May/ June 2017
Collaboration with
“Sangokushi tactics delta”

GlobalTV

Distribution

ULTRAMAN GEED
Am 9:00, Saturday, July 2017,
Broadcast on TV Tokyo network[Japan]Amazon prime Video
NETFLIX
Others[China]iQIYI
LeTV
Tencent
Youku[Global]Crunchyroll

Goods

Live entertainment

Pachinko/pachislot

Related ULTRAMAN GEEDULTRAMAN FESTIVAL

PACHI-SLOT ULTRASEVEN

Shop & restaurant

Transformation items YoY＋70 %Soft vinyl dolls YoY ＋8%

July―August 2017
Advance-sale ticket YoY＋41.4%

Release in September 2017
(OK!!)

August 2017 in Malaysia
Café & shop grand opening©円谷プロ ©ウルトラマンジード製作委員会・テレビ東京 ©円谷プロ ©Eiichi Shimizu Tomohiro Shimoguchi ©円谷プロ ©OK!!

Q1 3/2018

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20

Disclaimer/Contact Information

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

FIELDS CORPORATION
Corporate Communications Office
TEL: +81-3-5784-2109 E-mail: ir@fields.biz
Q1 3/2018

Copyright 2017

FIELDS CORPORATION All rights reserved.