The Greatest Leisure for All People

Financial Presentation
for the Nine Month Ended December 31, 2016

FIELDS CORPORATIONTSE 1st : 2767
February 2, 2017

I N D E XCurrent Initiatives

Review
Financial results for Q1-Q3

P.2

Full-year performance forecast

P.2

Initiatives in the year ending March 31, 2017

P.10

Total IP and the number of development media

P.11

Number of the development media

P.12

Overview
Main Initiatives On Each Platform

Consolidated P/L

P.4(Re-posting) Revisions to performance forecast

P.5

Initiatives in Comic field

P.14

Main pachinko/pachislot machines lineup

P.6

Initiatives in Visual field

P.15

Consolidated B/S

P.7

Initiatives in Tsuburaya Productions Co., Ltd.

Consolidated cash flow

P.16

P.8

Initiatives in Game/ License field

P.17

Initiatives in Pachinko/Pachislot field

P.18

1

Review
Financial results for Q1-Q3 and full-year performance forecast■ Financial results for Q1-Q3

Net sales of ¥ 42.6 billions (down YoY ¥29.0 billions), Ordinary loss of ¥ 7.9 billions (down YoY ¥10.1 billions)
1. Pachinko/Pachislot Field Released several titles including major titles in the New Year holiday season－ Major 2 titles were mostly recorded in Q4/ recorded Q3 cumulative sales of 130,000 units for nine titles (down YoY 89,000
machines)
2. Cross-media Field
Made steady progress in efforts for the cultivation and commercialization of IP (intellectual property)－ Royalty revenue from licensing the “Ultraman Series,” etc. exceeded the same period last year In the game field, measures to increase membership failed to achieve the expected results/ the range of new titles has been reduced,
with some development suspended Decrease in development royalties and contracted projects at subsidiaries involved in pachinko/pachislot machine development/
increase in production expenses at subsidiaries involved in visuals■ Full-year performance forecast (revisions to performance forecast at January 20, 2017)

Net sales of ¥73.0 billion (down initial plan ratio ¥42.0 billion), Ordinary loss: ¥7.5 billion (down initial plan ratio ¥9.5
billion) In the pachinko/pachislot field, despite the average number of machines sold per title remaining above the market average, the fullyear sales volume target was revised from approx. 350,000 machines to approx. 230,000 machines, in part due to the postponed
release of 6 titles which had been scheduled for release this period
 Although cross-media field makes progress IP business, part of game field and consolidated subsidiaries involved invisual/development contracting failed to achieve initial targets

Overview
Summary of Results for the Nine Month Ended
December 31, 2016

■ Consolidated P/L■ (Re-posting) Revisions to performance forecast■ Main pachinko/pachislot machines lineup■ Consolidated B/S■ Consolidated cash flow

3Overview

Consolidated P/L

Net sales affected by a decrease in the number of pachinko/pachislot machines sold / Ordinary income (loss) affected by a decreasein the number of pachinko/pachislot machines sold and failure by subsidiaries in games + to achieve revenue(Unit: Billions of yen)

Year ended March 31,
2016
Q1-Q3

Net sales
Gross profit
SG&A
expenses
Operatingincome (loss)
Ordinary
income (loss)
Net income (loss)
attributable to ownersof pearent

Full-year

Year ending March 31, 2017
Q1-Q3

71.6

94.4

42.6

(100.0%)(100.0%)(100.0%)

20.2

25.4

10.0

(28.3%)(27.0%)(23.5%)

18.0

24.0

17.4

(25.3%)(25.5%)(40.9%)

2.1

1.4

(7.3)

(3.0%)(1.5%)

(－)

2.1

1.3

(7.9)

(3.1%)(1.5%)

(－)

0.7

0.1

(9.0)

(1.1%)(0.1%)(－)

YoY
Increase/Decrease-40.5%

Initial plan

Pachinko
Pachislot

YoY
Increase/Decrease

115.0

73.0

(100.0%)(100.0%)-22.7%-50.4%
-3.6%
－
－
－

2.0

(6.5)

(1.7%)

(－)

2.0

(7.5)

(1.7%)

(－)

1.0

(8.5)

(0.9%)(－)* Figures within parentheses are the ratio to sales.

Total sales

Revision plan
Announced Jan. 20－－－(Unit: Thousand machines)

220

289

130

(11 titles)(17 titles)(9 titles)

126

162

78

(5 titles)(7 titles)(3 titles)

93

126

52

(6 titles)(10 titles)(6 titles)-40.7%

350

230(20 titles)(14 titles)-20.5%-38.5%-43.7%* Figures have been rounded down to the nearest 100 million.

4

Overview(Re-posted) Outline of Business Forecast Revision(factor of difference/ based on ordinary income)Decline of approx. ¥6.9 billion over initial target due to reduction in the number of pachinko/pachislot machine titles launched and sales volume
Decline of approx. ¥2.1 billion in games and consolidated subsidiaries involved in visual/development contracting(Unit: Billions of yen)

Initial plan

Q1-Q3

Q4 planIncrease/decrease

Main factors for difference

2.0
Pachinko and pachislot sales volume:
down 120,000 machines etc.
①

-6.9
(9.5)
(7.5)

(7.9)

Results of managementefficientGame field etc.
②-0.7

Consolidated
subsidiaries etc. ③

+0.6

-1.4

Subsidiaries and affiliates
accounted for using theequity method etc.

-1.0
+0.4

Category

Main difference factors ①

Market effectSome titles in Q4 and later affected bymarket slump

Failure to reach agreement on sales
MIZUHO CORP.
timing, making sales during the current(4 titles)
term difficult
Other alliance
Sales moved to next term to boost
manufacturers
product strength(2 titles)* Figures have been rounded down to the nearest billion.

Main difference factors ③

Category

Main difference factors ②

Existing
titlesMeasures aimed at boosting membershipfailed to achieve projected results

Visual/Increase in production expenses fordevelopment
certain large projects
contracting

2 titles with leading IP postponed to next
New titles term and development of 1 title cancelled
because of selection and concentration

Royalty for development and newPSprojects decreased in a subsidiary
development
engaged in the development ofcontracting
pachinko/pachislot machines

Category

5

Main pachinko/pachislot machines lineup

Overview

Released several titles including major titles in the New Year holiday season
Time limit for removal and callback ofpachinko/pachislot machines with possible
performance variance from test machines

Q1
CR MAJESTIC PRINCE

CR TEKKEN 2
Toushin ver.

Q3

Pachislot
LOAD of VERMILION

Pachislot
ALIEN BALTAN

Pachislot GARGANTIAON THE VERDUROUS PLANET

Adjourned
sale

Pachinko GANTZ

1 titlePosted on Q4

Super Street Fighter IV
Pachislot Edition

Pachislot

Q4

CR EVANGELION－Time to Rise

Pachinko

CR The Amazing
Spider-Man

Q2

Pachislot Monster Hunter:
PACHI-SLOT MOBILE
EVANGELION
KYOURYU SENSEN
SUIT Ζ GUNDAM－WISH OF VICTORY

Pachislot INUYASHADEVIL MAY CRY X

5 titles

36,000 units
P: 24,000
S: 12,000

36,000units
P: 20,000
S: 16,000

57,000 units
P: 33,000
S: 24,000

Q1-Q3: 130,000 units(P: 78,000 units S: 52,000 units)*The above number of machines posted to sales includes pachinko/pachislot machines other than the titles noted here.
©創通・フィールズ／MJP製作委員会 ©創通／フィールズ ©ヒーローズ 製造元／株式会社 ⼤⼀商会 © 2016 MARVEL ©2012 CPII ©NANASHOW ©カラー ©SANKYO ©Bisty©奥浩哉／集英社 ©奥浩哉／集英社・「GANTZ:O」製作委員会 © OK!! ©BANDAI NAMCO Entertainment Inc. ©SANKYO ©Bisty ©CAPCOM CO.,LTD., ©CAPCOM U.S.A., INC. ALL RIGHTS RESERVED.
©オケアノス／「翠星のガルガンティア」製作委員会 ©D-light ©円⾕プロ ©NANASHOW ©CAPCOM CO., LTD. ALL RIGHTS RESERVED.
©2007-2016 SQUARE ENIX CO., LTD. All Rights Reserved. ©NANASHOW ©⾼橋留美⼦／⼩学館・読売テレビ・サンライズ 2000＆2009 ©Sammy ©RODEO 製造元／株式会社ロデオ 総発売元／フィールズ株式会社©CAPCOM CO., LTD. ALL RIGHTS RESERVED. 製造元／株式会社ビスティ 総発売元／フィールズ株式会社 ©カラー 製造元／株式会社ビスティ 総発売元／フィールズ株式会社 ©創通・サンライズ

6
6

Overview
Consolidated B/S
Decreases in cash and cash equivalents and notes and accounts payable—trade;
Increase in long-term loans; Decrease in retained earnings(Unit: Billions of yen)March 31, 2016

December 31, 2016

Increase/Decrease

Main factors for increase/decrease

Current assets

52.9

43.0

-9.9

Tangible fixed assets

11.4

10.7

-0.7

Intangible fixed assets

3.7

2.8

-0.8

Investments andother assets

24.3

24.4

＋0.1

92.4

81.0

-11.4

Current liabilities

29.8

25.5

-4.2

Fixed liabilities

4.3

9.0

＋4.6

Increase in long-term loans

Net assets

58.2

46.4

-11.8

Decrease in retained earnings

92.4

81.0

-11.4

Total assets

Total liabilities andnet assets* Figures have been rounded down to the nearest 100 million.

Decrease in cash and cash equivalents

Decrease in notes and accounts payable－
trade

7

Overview
Consolidated cash flow
Cash and cash equivalents decreased ¥13.4 billion
as of the end of Q3 of the year ending March 31, 2017 from the beginning of the year
(Unit: Billions of yen)

Operating cash flows

Investing cash flows

Year ended
March 31, 2016

Year ending
March 31, 2017

Q1-Q3

Q1-Q3

8.8

(3.2)

Main factors for increase/decrease(13.0)

Income before income taxes and minority interests
Increase in notes and accounts reseivable—trade
Decrease in notes and accounts payable—trade
Increase in inventories

－8.3
－0.8
－4.6
－0.7

(3.6)

Expenditure for loans
Proceeds from loans receivable
Payments for investments in capital

－4.4
＋2.0
－0.8

Decrease in short-time borrowings
Proceeds from long-term loans
Dividends paid

－0.2
＋5.5
－1.6

Financial cash flows

2.6

3.2

Net increase(decrease) incash and cash equivalents

8.3(13.4)Cash and cash equivalents
at beginning of period

15.8

32.2

Cash and cash equivalents
at end of period

24.1

18.7

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

8

Current Initiatives

Initiatives in the year ending March 31, 2017
Total number of IP

Number of development media

9Current Initiatives
Initiatives in the year ending March 31, 2017
Focused investment in IP expected to become major and serial products, with aim of accelerating expansion in Japan and globally
Mid- and long-term
strategies

Initiatives in the year ending March 31, 2017

With cross-media strategy as the pivot, we acquire and create IP and enhance the value of IP

Acquisition andin cooperation with each media partners.
creation of leading IP
Comic: Focus on creation of Hero IP through “HERO’s Monthly”

We provide IP to diversifying platforms and increase profits with our partners.

Expansion of IP
platforms,
maximization of value

Comic
VisualGame
Live
LicensePS: Promote diversification of distribution methods through e-book platform: Promote cross-media development of “GANTZ:O” and “Ultraman series” while producing the film
: Promote collaboration with IP of the other companies and planning of several titles with leading IP: Pro-actively expand live entertainment shows focusing on major cities
Created new live entertainment, etc. featuring “AKB48”: Collaboration with influential companies to expand IP business field and establish new license business: Promote a variety of measures to strengthen product appeal, improve services as a distributor andtrading company, and expand the fan base

We develop IP with an eye toward expansion to the global market and promote overseas
development in cooperation with SVOD operators in the United States and China.

Expansion of market(Global development)

Comic
VisualGame
Live
License: Build new partnership with overseas distributors for e-book platform: Cooperate with SVOD operators in the United States and China, focusing on film production with aneye on global expansion: Plan and drive overseas expansion of existing titles, and expansion in Japan of leading overseas titles: Drive planning and development of overseas expansion focused on Southeast Asia
: Build partnerships focused on East Asia to develop cultivate overseas markets

To enhance effectiveness of our medium-to long-term strategy,
Medium-to long-term management plan to be announced in May 201710

Current Initiatives
Total number of IP
Total number of IP: 183 titles (＋ 7 titles for the previous year ended)

Total number of IP
Borrowed IP

176
64

Collaboration IP

Fields' IP

183

187

Increase/decrease from the year ended March 31, 2016
(B-A)
Total 66 titles: ＋2 titles from the previous year ended
Fields’ IP

66＋7 titles- End Fields’ original plan

－5 titles

70
Total 48titles: －2 titles from the previous year ended
Collaboration

50- Creation of HERO’s IP

48

48

IP

- Drive new plan

＋6 titles- End some plans as part of selection－8 titles

focus

Total 69 titles: ＋7 titles from the previous year ended

62

69

3. 2016

3. 2017 E

(A)

(B)

69

Borrowed IP- Expansion of new licenses, etc.

＋22 titles- Expiry of IP contract term, etc.

－15 titles

3. 2018 E* The creation of our own IP refers primarily to the number of new works published in “HERO’S” Monthly.

11

Current Initiatives
Number of development media
Developed in 171 media in year ending March 31, 2017 (YoY + 75 media)
Number of development media
Borrowed IP

Collaboration IP

Fields' IP

Increase/decrease from the year ended March 31, 2016
(B-A)
Increase of 54 media compared with previous
quarter, planned development of 119 media

171
Fields’ IP

96

119
85

Collaboration

55
20

7
24

32

9
21

3. 2016

3. 2017 E

3. 2018 E

(A)

(B)

＋34 media＋17 media＋3 media

Increase of 13 media compared with previous
quarter, planned development of 20 media
IP

65-Expansion of e-book titles in Japan andoverseas-Expand development of “A MAN ofULTRA”-Others- Expand overseas video distribution- Expand product development with film
adaptation- PS development- Other＋5 media＋3 media＋2 media＋3media

Increase of 8 media compared with previous quarter,
planned development of 32 media
Borrowed IP- Develop new AKB48 live show
- Develop goods utilizing IP, etc.
- PS development＋3 media＋4 media＋1 media*Media development is mainly comics, visual and merchandising (social game, goods and pachinko/pachislot) etc.

12

Main Initiatives On Each Platform

Initiatives in Comic field
Initiatives in Visual field
Initiatives in Tsuburaya Productions Co., Ltd.
Initiatives in Game/ License field

Initiatives in Pachinko/Pachislot field

13

Main Initiatives On Each Platform
Initiatives in Comic field
Marketenvironment

While publication markets contract, e-books market is expected to expand as e-book usage takes root amid growing
popularity of all-you-can-read fixed-price subscriptions and other services using electronic devices*Market scale forecast in Japan: 158.4 billion yen in FY2015 → 300.0 billion yen in FY2020 (Source: Impress Corporation)

HERO’SElectronic Book
■ Increased number of distributors of e-books■ Total 65 titles of “HERO’s Monthly”－ Q2-Q3: 5 new works published (includes complete works)－ Vol. 9 of “ULTRAMAN,” the “HERO’s Monthly” comic bookpublished, cumulative total of 2.4 million copies sold
－ Official comic app “Comic HERO’s” started distribution in Oct.
－ Continue driving various measures for creation of HERO’s IP

Distribute in 24 countries and regions in 10 languages－ Expanded to 50 e-books in Japan
Distributed original works on “Pixiv comic”－ Starting distribution on Yingqi, China and Naver Books,
Korea overseas in addition to China Mobile and Kidstone

Official comic App

Comic HERO’s

Teppen - private
high school Hotoku

Onideka!

TRANSNAUTS

The Athleters©⽯森プロ・東映 ©⽇下直⼦／ヒーローズ ©⽮寺圭太／ヒーローズ ©淡⽥⻘／ヒーローズ ©闇鍋テルミン／ヒーローズ

14

Main Initiatives On Each Platform
Initiatives in Visual field
Marketenvironment

With the creation of new platforms such as Subscription Video On Demand (SVOD), it is predicted that the market scale will
expand dramatically within and outside of Japan(Source: GEM Partners)*SVOD market scale forecast in Janapn: 160.5 billion yen in FY2015 → 253.1 billion yen in FY2020

Collaboration IP

HERO’S IP■ Proceeding with film adaptation projects for 6 works－“ATOM THE BIGINNING” to be broadcasted on NHK in
spring 2017
－ Promote animation of “Infini-T Force” (Tatsunoko Production
Co., Ltd.)■ “GANTZ:O”－ Cinematic release in October, audience of 190 thousand(as of January 16, 2017)■ TV anime “BERSERK”－ The 2nd series scheduled for April 2017 on MBS Animeism,
WOWOW, etc.

Main visual works for the year ending March 31, 2017
Main visual works

Apr.

May

Jun.

Ultraman Series (Ultraman Orb)NINJA SLAYER FROM ANIMATION

Jul.

Aug.

Sep.

Nov.

Dec.

Jan.

Feb.

Distributed on Amazon
Prime Video

Broadcasted on affiliated to Television Tokyo

Mar.
Released

Broadcasted on TOKYO MX etc.

BERSERK

Broadcasted on MBS/WOWOW etc.

ACTIVERAID - Special Public Security Fifth
Division Third Mobile Assault Eighth Unit -Broadcasted on TOKYO MX etc.

GANTZ:O

Oct.

Released
Released

MAJESTIC PRINCE THE MOVIE©⼿塚プロダクション・ゆうきまさみ・カサハラテツローHERO’S/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

15

Main Initiatives On Each Platform
Initiatives in Tsuburaya Productions Co., Ltd.
Ultraman ORB■ Broadcast on TV Tokyo’s network (Sat. 9:00-) on Jul.-Dec. 2016
(Total 25 stories)－ Sales status of Ultraman toys: New year holiday shopping season(Dec. 12, 2016-Jan. 8, 2017) YoY + 30 %－ State of video distribution
Up to all episodes distributed worldwide, played 800 million
times/ YoY + 100 %■ Distribution “ULTRAMAN ORB THE ORIGIN SAGA” on
Amazon Prime Video from Dec. 2016
■ “Ultraman Orb” the movie scheduled for release from Mar. 2017

Other business activities■ The “Ultra hero’s EXPO 2017” was held Dec. 31, 2016 – Jan. 1
2017, with visitor numbers +30% YoY■ Live entertainment shows－Staging of ACROBATTLE CHRONICLE in Osaka in
September, Nagoya in December, and Tokyo in January alongwith other events－ Live shows held overseas, in Malaysia (Genting) for 49 days
and in Taiwan for about a year and a half (2017–2018)

Image of Malaysia/Taiwan stage

©円⾕プロ

©円⾕プロ
©ウルトラマンオーブ製作委員会・テレビ東京

©円⾕プロ

16

Main Initiatives On Each Platform
Initiatives in Game/ License field
Game

LicenseAmid slowing growth of social game market, reconfirmed IP
importance by launching strong IP-backed contents

Marketenvironment■ “THE TOWER OF PRINCESS”－ Failed to achieve the expected results in increasing membership－ Over 2.14 million cumulative downloads (YoY +970,000 DL)－ Organized collaboration with “EVANGELION” in October andwith “ATTACK ON TITAN” in December■ State of new titles－ Development of 1 title suspended, and 2 major IP titles
postponed to the next period－ Continue to promote measures aimed at expanding major
overseas video games in Japan
Change in number of DL of THE TOWER OF PRINCESS (including reroll)(Million DL)

License field is activation move toward new markets inJapan and overseas including newly utilizing the classic
character and license deployment to the adult clothing etc.

■ A MAN of ULTRA－ Licensed to 65 companies (YoY+14 companies)－ TOYOTA 86 concept car announced at Tokyo Auto Salon
2017 / Osaka Auto Messe 2017
－ Pop-up shops have been opened at 14 locations for Q1-Q3,
will be opened at Ginza Mitsukoshi from February

TOYOTA 86 ｘ A MAN of ULTRA

Invigorated collaboration

2.5

CM
released

2.0
1.5

Marketenvironment

2 millionDL

1 million
DL

1.0
0.5
0.0
©A MAN of ULTRA ©TSUBURAYA PROD.

17

Sales Trends in the Pachinko/Pachislot Market
Market environment
Pachislot

Pachinko■ Regulation:－ Deadline for removal of pachinko machines with possible
performance variance from test machines on the end of 2016
■ Sales:－ Despite brisk demand for replacements in Oct–Dec, it isexpected that the situation for FY2016 will remain tougher
than anticipated■ Regulation:－ Deadline for instllation of existing spec machines on
September 2017
■ Sales:－ Amid situation where many old regulation machines are still
installed, sales volume will continue to trend downward in
FY2016(Trend in sales market)(Trend in sales market)

FY 2015

FY 2016

FY 2015

FY 2016

1,880,000
machines

1,650,000
machines

960,000
machines

800,000
machines(181 titles)(179 titles)(90 titles)(95 titles)(Trend in sales: Oct.-Dec.)

2015

machines(Trend in sales: Oct.-Dec.)
120,000

240,000

220,000 machines

2016

Rebound from maxtype new machine
installation deadline 140,000
machines

210,000 210,000
machinesmachines

Nov.

machines

90,0002016

Rebound from older
standard new machine
installation deadline

80,00070,000 machines

machinesmachines

40,00070,000Oct.

130,000

machinesmachinesmachines* Source of figures in main text and in graphs: FIELDS CORPORATION

2015

Dec.

Oct.

Nov.

Dec.

18

Main Initiatives On Each Platform
Initiatives in Pachinko/Pachislot field
Fields’ Sales Condition
Sales strategy and current sales condition
During the New Year holiday shopping season, focus has been on sales of pachinko/pachislot
machines, including major titles■ Sales of 1 pachinko title and 2 pachislot titles in the Q3/ Sales of 2 pachinko title and 3 pachislot titles in the Q4－ Strong sales of 2 major titles (“CR EVANGELION” and “Pachislot Monster Hunter”)－ Average sales volume per title exceeding market average－ Some titles from Q4 will be affected by a decline in market demand, and 6 titles scheduled for release this period will be postponede nearest 100 million.

Change in the number of pachinko machine sales per title
Market sales volume
Market average sales volume
Fields average sales volume(Machine)

4,000,000
3,500,000
3,000,000
2,500,000

59,000machines
2,900,000

2,600,000

2,490,000
1,880,000(Machine)

80,0002,000,000

80,00070,0001,800,000

70,00040,0001,000,000

30,0001,000,000

28,00020,000machines
16,000machines

0

9,000
machines

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
E
* Figures have been rounded down to the nearest thousand.
* Source of figures in main text and in graphs: FIELDS CORPORATION

1,400,000
1,200,000

1,500,000

10,0000(Machine

1,600,000

50,0001,650,000

500,000

Market sales volume
Market average sales volume
Fields average sales volume(Machine)

60,0002,060,000 2,010,000

2,000,000

Change in the number of pachislot machine sales per title

800,000

1,250,000
970,000

35,000600,000 machines

1,320,000

60,0001,390,000
1,230,000

50,000960,000

40,000800,000

30,00010,000 20,000
machines
10,000200,000
9,000
8,000
machines 00 machines
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
E
400,000

19

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