Summary(Translation)
Fields Corporation
Summary of Financial Information and Business Results (Consolidated)
for the Year Ended March 31, 2013 (Japan GAAP)May 7, 2013
Listed on: OSE [JASDAQ]
Company Name:
Stock code:
Representative Director:
Inquiries:
Tel:Fields Corporation(URL: http://www.fields.biz/)
2767
Takashi Oya
President and COO
Hideaki Hatanaka
Executive Officer and General Manager, Corporate Communications Office+81-3-5784-2111

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:

June 19, 2013
June 20, 2013
June 19, 2013
Yes
Yes (For institutional investors and security analysts)(Rounded down to the nearest million)

1. Consolidated business results for the year ended March 31, 2013 (April 1, 2012, to March 31, 2013)(1) Operating results(Percentage figures denote year-over-year changes.)
Net sales
Operating income
Ordinary income
Million yen%
Million yen%
Million yen%
Year ended
108,141
17.3
10,31421.0
10,268
18.6
March 31, 2013
Year ended
92,195 (11.0)
8,527 (35.1)
8,661 (36.7)
March 31, 2012
Net income
Net income per share
Diluted net income per share
Million yen
%
Yen
Yen
Year ended
4,720 (21.2)
142.27―
March 31, 2013
Year ended
5,991 (20.3)
180.45―
March 31, 2012
(Note) Comprehensive income
Year ended March 31, 2013: ¥5,204 million (-15.6%) Year ended March 31, 2012: ¥6,162 million (-16.5%)
Return on equity%

Ordinary income to total assets%

Operating margin%
Year ended
8.9
10.3
9.5
March 31, 2013
Year ended
12.2
10.0
9.2
March 31, 2012
(Reference) Equity in earnings of affiliates
Year ended March 31, 2013: ¥(103) million Year ended March 31, 2012: ¥102 million(Note)The company conducted a 100-for-1 stock split on October 1, 2012. In accordance with this, net income per share have been
calculated as if the stock split was conducted at the beginning of the previous consolidated fiscal year.
(2) Financial position
Total assets

Net assets

Shareholders’ equity
ratio
%
51.2

Net assets per share

Million yen
106,628

Million yen
55,098

Yen
Year ended
1,644.15
March 31, 2013
Year ended
93,601
51,55554.6
1,539.04
March 31, 2012
(Reference) Shareholders’ equity
Year ended March 31, 2013: ¥54,559 million Year ended March 31, 2012: ¥51,071 million(Note)The company conducted a 100-for-1 stock split on October 1, 2012. In accordance with this, net assets per share have been
calculated as if the stock split was conducted at the beginning of the previous consolidated fiscal year.
Cash flow fromoperating activities
Million yen

Cash flow frominvesting activities
Million yen

13,570(6,263)(2,277)23,30910,015(4,798)(2,565)18,284(3) Cash flows

Year ended
March 31, 2013
Year ended
March 31, 2012

Cash flow from
Cash and cash equivalents
financing activities
at end of year
Million yen
Million yen

2. Dividends

Year ended
March 31, 2012
Year ended
March 31, 2013
Year ending March 31,
2014 (Forecast)First
quarter-end
Yen―

Secondquarter-end
Yen
2,500.00

Annual dividends
Thirdquarter-end
Yen
―

―

2,500.00―

25.00

Total dividend(annually)

Payout ratio(consolidated)

Year-end

AnnualYen
2,500.00

Yen
5,000.00

―

25.00

―

―

25.00

50.00

Dividend on
equity ratio(consolidated)%
3.4

Million yen%
Year ended
1,659
27.7
March 31, 2012
Year ended
1,659
35.1
3.1
March 31, 2013
Year ending March 31,
26.3
2014 (Forecast)(Note) The company conducted a 100-for-1 stock split on October 1, 2012. Regarding the forecast of year-end dividend per share forthe year ended March 31, 2013, we have presented an amount reflecting the stock split.
If adjusted to reflect the number of shares prior to the stock split, the forecast of the annual dividend per share would beequivalent to 5000.00 yen (2nd quarter end: 2,500.00 yen; fiscal year end: 2,500.00 yen).
3. Forecast earnings for the year ending March 31, 2014 (April 1, 2013, to March 31, 2014)(Percentage figures denote year-over-year changes.)
Net sales

Operating income

Ordinary income

Net income

Net income
per share

Million yen% Million yen% Million yen% Million yen%
Full year
120,000
11.0
12,50021.2
12,500
21.7
6,300
33.4
(Note) Fields Corporation discloses a full year business forecast, as it manages its business performance on an annual basis.

Yen
189.85*Notes(1) Transfer of important subsidiaries during the year under review (Transfer of specific subsidiaries that results in a change in thescope 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.: Yes
2) Changes due to any reason other than those in 1) above: No
3) Changes in accounting estimates: Yes
4) Revisions/restatements: No(Note)The depreciation method has been changed from the first quarter of this fiscal year and this change is applicable to “acase when it is difficult to distinguish between a change in an accounting policy and a change in an accounting estimate.” Fordetails, please refer to “(5) Note regarding the operation of the company as a going concern in 4. Consolidated financial
statements” on page 18 of the Attached Document.
(3)

Number of shares issued (common stock)1) Number of shares issued (including treasury stock)
Year ended March 31, 2013
34,700,000 sharesYear ended March 31, 2012
34,700,000 shares
2) Number of treasury stock at end of year
Year ended March 31, 2013
1,516, 200 sharesYear ended March 31, 2012
1,516, 200 shares
3) Average number of shares outstanding
Year ended March 31, 201333,183,800 sharesYear ended March 31, 2012
33,201,996 shares(Note) The company conducted a 100-for-1 stock split on October 1, 2012. In accordance with this, the number of sharesissued of the above have been calculated as if the stock split was conducted at the beginning of the previous consolidated
fiscal year.

* Presentation of implementation status for audit procedures# The audit procedures based on the Financial Instruments and Exchange Act do not apply to this Consolidated Financial Results, andthe audit procedures based on the Financial Instruments and Exchange Act have not been completed as of the release of thisdocument.
* Explanation of the appropriate usage of forecast earnings and other specific matters# The above forecast relies on judgments and assumptions based on information available as of the date of announcement of thismaterial, and is subject to changes in risks, uncertainties, and economy, and other factors that could cause actual results to bematerially different from expectations. For a description of the assumptions underlying the forecast earnings and other points to note,
please refer to “(1) Analysis of operating results in 1. Operating results ” on page 2 of the Attached Document.
# The Company is planning to hold a results briefing for analysts and institutional investors on Wednesday, May 8, 2013.
Materials distributed at that briefing will be posted on the Company’s website after the briefing.

 Table of Contents of Attached Document
1.

Operating results.............................................................................................................................. 2(1) Analysis of operating results ....................................................................................................... 2(2) Analysis of financial position ...................................................................................................... 3(3) Fundamental corporate policy for distributing profits and dividends for the current andnext fiscal years ........................................................................................................................... 5

2.

Outline of the Fields Group ............................................................................................................. 6

3.

Management policies ....................................................................................................................... 7(1) Fundamental corporate management policy ................................................................................ 7(2) Issues to address .......................................................................................................................... 7(3) Management strategies for the medium to long term .................................................................. 7(4) Targeted management indicators ................................................................................................. 8(5) Other important matters affecting corporate management .......................................................... 8

4.

Consolidated financial statements ................................................................................................... 9(1) Consolidated balance sheets ........................................................................................................ 9(2) Consolidated statements of income and consolidated statements of comprehensive income .... 11(3) Consolidated statement of change in net assets ......................................................................... 14(4) Consolidated statements of cash flows ...................................................................................... 16(5) Note regarding the Consolidated Financial Statements ............................................................. 18(Note regarding the operation of the company as a going concern) ...................................... 18(Basis of presentation of the consolidated financial statements) ........................................... 18(Changes in accounting policies) .......................................................................................... 21(Accounting standards not adopted) ...................................................................................... 22(Changes in the method of presentation) ............................................................................... 22(Consolidated balance sheets) ................................................................................................. 23(Consolidated statements of income) ...................................................................................... 24(Consolidated statements of comprehensive income) ............................................................. 25(Consolidated statements of changes in net assets) ................................................................. 26(Consolidated statements of cash flows) ................................................................................. 27(Segment information, etc.)..................................................................................................... 28(Per-share data) ....................................................................................................................... 29(Significant subsequent events)............................................................................................... 29

5.

Others ............................................................................................................................................ 30(1) Personnel change in officers ...................................................................................................... 30-1-1. Operating results(1) Analysis of operating results[1]

Overview of operations for the year ended March 31, 2013 (April 1, 2012 to March 31, 2013)
Net sales were ¥108,141 million (up 17.3% year-over-year), operating income ¥10,314 million (up 21.0% year-over-year), andordinary income ¥10,268 million (up 18.6% year-over-year), and net income was ¥4,720 million (down 21.2% year-over-year).
The main factor behind this earnings fluctuation was the increase in the number of pachislot machines sold compared to theprevious year as a result of the launch of strong products in the pachislot market.
Some subsidiaries posted extraordinary losses.
The main business initiatives in the fiscal period under review were as follows:
The Group pursues business activities with an emphasis on maximizing the value of its characters and other Intellectual
Property (IP) based on the “Developing Business Model,” a framework released in May 2012 that maps out seamless cyclicalbusiness development for comics, animation, movies/TV and merchandising.

(Acquisition, creation and development of IP; comics, animation, movies/TV)
In the comics, animation and movies/TV field, the Group creates characters and stories and endeavors to raise namerecognition.
In the comics field, the Group made investments in various contents with a focus on heroes, including the launch of a comicmagazine in November 2011. Volumes 1 and 2 in the “ULTRAMAN” series were published, depicting new developments inthe story of this popular hero in Japan and selling a cumulative total of more than 400,000 issues.
In the animation and movie/TV field, the Group brings the stories in its comics to the screen. In one such example, theanimation “GINGA KIKOTAI: Majestic Prince” began to be broadcast on television in April 2013.
Currently, the Group is proactively pursuing plans to raise name recognition for a number of IP by giving them new life inbooks, animation and movies/TV in order to expand them into the merchandising field.

(Merchandising)In the merchandising field, the Company uses the characters and stories created and developed in the comics, animation andmovies/TV field to proactively offer products and services optimizing a wide range of media and platforms. Through thesemeans, the Company aims to raise IP value and maximize earnings.
In developing interactive media, the Company studies and researches expanding communication platforms, particularly social
networking services, while examining the necessary consumer services and games from a number of angles as a basis forconsidering investments in fields with growth potential. In the social game field, taking into consideration the suitability of IP
as games and the saturation of competing titles in the market, while focusing on planning and developing new game functions
that will enhance the competitive advantage of Fields titles over those of competitors.
As part of efforts to expand the consumer products business, the Company reinforced the product line-up based on its IP andbroadened its distribution channels, and also studied and researched product gimmicks (new ways of play) utilizing IP andplanned new forms of distribution to customers.
Going forward, the Company will foster close collaboration between interactive media and the consumer products businesswith the aim of cross-media expansion with other media and the development of IP in all business fields.
To expand pachinko and pachislot business, the Company is taking measures to broaden the support of existing fans and attract
new customers. In the current fiscal period, the Company began marketing pachinko machines of a major manufacturer’s new
brand “OK!!” as its sales agency. The pachislot machine “Resident Evil 5” has won strong support from fans. The number ofpachinko machines sold during the current fiscal period was about 100,000 (down about 133,000 year-over-year) and thenumber of pachislot machines sold totaled about 228,000 (up about 49,000 year-over-year).
(Note) The company names and product names included in this report are the trademarks or registered trademarks of therespective companies.

-2-

[2]

Forecast earnings for the year ending March 31, 2014 (April 1, 2013 to March 31, 2014)(Unit: Million yen)
Forecast for the year ending
March 31, 2014
120,000

Results for the year ended
March 31, 2013
108,141

Operating income

12,500

10,314

21.2%

Ordinary income

12,50010,26821.7%

Net income

6,300

4,720

33.4%

Net sales

Year-over-year change
11.0%

The full-year forecast for the year ending March 31, 2014 is as follows:
Regarding the acquisition, creation and development of IP, in the comics, animation, and movies/TV fields, we will continue
with investment for creating and developing characters and stories, and focus on maximizing IP value.
As for the merchandising field, in developing interactive media, consumer products and pachinko/pachislot, we will strive toexpand our fan base through providing products and services utilizing IP, and work on generating revenue. Particularly in thepachinko/pachislot field, we will enhance our product line-up including leading titles, while also pushing ahead withstrengthening our sales structure.
(Note) Fields Corporation discloses a full-year business forecast, as it manages its business performance on an annual basis.

(2) Analysis of financial position[1]

Assets, liabilities and net assets(Unit: Million yen)
Current fiscal year end(as of March 31, 2013)
106,628

Previous fiscal year end(as of March 31, 2012)
93,601

Total liabilities

51,52942,046

9,483

Total net assets

55,09851,555

3,543

Total assets

Year-over-year change
13,026

AssetsCurrent assets amounted to ¥72,709 million, up ¥9,898 million year-over-year. This was primarily attributable to an increase innotes and accounts receivable—trade.
Tangible fixed assets amounted to ¥11,151 million, up ¥171 million year-over-year. This was primarily attributable to theacquisition of fixed assets following the relocation of the headquarters.
Intangible fixed assets amounted to ¥4,540 million, up ¥168 million year-over-year.
Investments and other assets amounted to ¥18,226 million, up ¥2,788 million year-over-year. This primarily reflected increases
in investment securities and long-term loans.
As a result of the above, total assets amounted to ¥106,628 million, up ¥13,026 million year-over-year.
Liabilities
Current liabilities amounted to ¥47,365 million, up ¥9,440 million year-over-year. The principal factor behind this was anincrease in notes and accounts payable—trade and accrued income taxes.
Fixed liabilities amounted to ¥4,164 million, up ¥42 million year-over-year. This was primarily attributable to the redemptionof corporate bonds and an increase in guarantee deposits received.
As a result of the above, total liabilities amounted to ¥51,529 million, up ¥9,483 million year-over-year.
Net assets
Net assets amounted to ¥55,098 million, up ¥3,543 million year-over-year. This primarily reflected an increase in retained
earnings.

-3-

[2]

Cash flows
During the fiscal year under review, cash and cash equivalents (hereinafter referred to as “cash”) increased by ¥5,025 million
year-over-year and amounted to ¥23,309 million at the end of the year ended March 31, 2013.
Cash flow for the year ended March 31, 2013 and contributing factors are as follows:(Unit: Million yen)
Current fiscal year

Previous fiscal year

(Year ended March 31, 2013)(Year ended March 31, 2012)

Cash flows from operating activities

13,57010,015

3,554

Cash flows from investing activities(6,263)(4,798)(1,465)(2,277)

Cash flows from financing activities

Year-over-year change(2,565)288

Cash flows from operating activities
Net cash provided by operating activities amounted to ¥13,570 million (¥10,015 million of income in the previous year). Thiswas primarily attributable to income before income taxes and minority interests of ¥9,002 million, an increase of ¥9,013
million in notes and accounts receivable—trade, an increase of ¥8,488 million in notes and accounts payable—trade,
depreciation and amortization of ¥2,207 million, etc.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥6,263 million (¥4,798 million of expenditure in the previous year). This wasprimarily attributable to expenditure for loans totaling ¥1,891 million, expenditure for purchases of intangible fixed assets
totaling ¥1,741 million, expenditure for purchases of tangible fixed assets totaling ¥1,571 million, etc.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥2,277 million (¥2,565 million of expenditure in the previous year). This wasprimarily attributable to dividends paid totaling ¥1,658 million, redemption of corporate bonds totaling ¥618 million, andrepayment of long-term borrowings totaling ¥162 million, etc.
(Reference) Trends of cash flow indicators
Year ended
March 31, 2009

Year ended
March 31, 2010

Year ended
March 31, 2011

Year ended
March 31, 2012

Year ended
March 31, 2013

Shareholders’ equity ratio (%)

75.8

50.5

59.2

54.6

51.2

Shareholders’ equity ratio at
market value (%)
Interest-bearing debt/cash flow
ratio (years)

90.8

44.4

59.9

48.6

48.2

0.7

0.2

0.2

0.2

0.1

Interest coverage ratio (times)

36.0

310.5

311.7

556.2

742.2

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 the year)/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 stock.
3. Interest-bearing debt indicates all the liabilities for which interest is paid posted in the consolidated balance sheets.

-4-(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 task, and its fundamental policy is to pay
dividends at an appropriate level that corresponds with profits. Specifically, dividends are determined on the basis of such factors
as cash flow conditions, and we aim to achieve a consolidated payout ratio of 20% or more. The Company makes every effort toeffectively use retained earnings for investments to enhance its financial condition, strengthen the management foundation,
expand businesses continually and secure a competitive edge.
For the year ended March 31, 2013, the Company paid an interim dividend of ¥25* per share to shareholders and intends todistribute a year-end dividend of ¥25 per share (annual dividend per share of ¥50). As a result, this fiscal year’s consolidated
payout ratio will be 35.1%.
With regard to the year ending March 31, 2014, the Company intends to distribute an interim dividend of ¥25 and a year-end
dividend of ¥25 (annual dividend per share of ¥50).
* The Company conducted a 100-for-1 stock split on October 1, 2012, and set the share-trading unit as 100 shares.
Regarding the interim dividend payment per share for the year ended March 31, 2013, we have presented an amountreflecting this stock split.

-5-2. Outline of the Fields GroupThe Fields Group (parent company and associated companies) comprises Fields Corporation (“the Company”), 20 subsidiaries, 8affiliated companies, and 1 other related company.
The following chart summarizes our business organization.

Intellectual property (IP)IP

IP

ComicsIP□ HERO’S Inc.
and another equity method affiliate, and another non-consolidated subsidiary

Animation

IP○ Digital Frontier Inc.
○ Lucent Pictures Entertainment, Inc.
and 3 other consolidated subsidiaries

IP

IP

Provisionof services

Provisionof services○ Tsuburaya Productions Co., Ltd.
and another equity method affiliate

Provisionof services○ FutureScope Corporation○ IP Bros. Incorporated○ Total Workout premium management Inc.
○ EXPRESS Inc.
and another consolidated subsidiary, and 2 non-consolidated subsidiaries

Users/Customers

MerchandisingInteractive media Consumer products

FIELDS CORPORATION

Movies/TV

IP

Provisionof services

Provisionof services

Product purchasing and consigned sales

Pachinko/Pachislot

Planning andConsignmentof development○ BOOOM Corporation ○ MICROCABIN CORP.
○ Shin-Nichi Technology Co., Ltd.
and another consolidated subsidiary, and another nonconsolidated subsidiary

Planning
Development

IP and Product planning
Consignmentof operations(Pachinko/pachislot Machine manufacturer)□ Rodeo Co., Ltd.
△ Sankyo Co., Ltd.
and another equity method affiliate○ Fields Jr. Corporation □ SOGO MEDIA INC.
and another equity method affiliate, and another non-equity method affiliate

Provision of services○: Consolidated subsidiary-6-□: Equity method affiliate

Provisionof services△: Other related company

3. Management policies(1) Fundamental corporate management policy
With “The Greatest Leisure for All People” as its corporate philosophy, the Fields Group acquires and creates high value-added
intellectual property (IP) and develops it in multiple ways, thus producing contents with high commercial value. It also strives toexpand its business domains in the wide range of entertainment area with IP as its pivotal resource, and in each domain strives toprovide consumers with products and services that enrich their lives.
Along with this development of its business, the Company steadfastly maintains a stance of “emphasizing shareholders” as its
basic management policy, and aims to allocate its managerial resources in an optimal way in order to enhance its corporate value
and to return profits to shareholders.

(2) Issues to address
Since 2002, the Ministry of Economy, Trade and Industry has viewed the contents industry as one of Japan’s key industries for the
next generation as the contents are expected to enrich the lifestyles of the Japanese people and develop and expand as a major
business. Aiming to expand and develop such contents as a major business, the Ministry has viewed this sector as one of Japan’s
key industries for the next generation. In addition, the Ministry published the report “Summary of the Report by the Study Groupon the Content Industry’s Growth Strategy” in May 2010 as a roadmap for the industry, which is expected to drive the country’s
economic growth. In the report, the Ministry referred to the economic growth that will be brought about by the globalization of
relevant content, particularly animation, comics, and movies, and placed great expectations on the growth and development of thegame, animation and movie industry.
Developing its IP business, including character creation, is a key management task for the Fields Group. The Group willencourage its growth in a stable and ongoing way in order to meet these expectations, contribute to Japan’s economic growth, andenrich the future lives of the people. However, in recent years, the diversification of media and expanding personal preferences
has made it more challenging to come up with new and appealing characters, and there are concerns over the depletion ofhigh-quality IP. Thus, in light of this, the Group recognizes the development of new characters and IP creation as urgent tasks.

(3) Management strategies for the medium to long term
～IP business models such as character business that the Fields Group is targeting～In the medium-to-long run, Fields and the Fields Group are taking on the challenge of drastically transforming themselves from a
distributor in the pachinko/pachislot field to a group of IP-based companies.

Figure 1: Developing Business Models

Animation

ComicsAcquire and create
original works, stories, and characters

Enhance added value of stories and characterswith cutting-edge technology, for example by using
computer graphics

Maximize value of intellectual property
Create series

Merchandising

Movies/TV

Interactive media
Consumer products
Pachinko and pachislot

Distribute animated content around the world,and expand fan baseUtilize IP in each media to generate revenue-7-

＜Business models the Company has built since its listing＞
The Company went public in March 2003. At that time, it announced a multifaceted strategy of developing IP, the basis for its
competitive advantage, and has since concentrated on implementing the strategy.
The acquisition of IP constitutes the core of the strategy, and the Company has focused on obtaining many merchandising rights
to develop superior IP into products from companies that possess such IP in such areas as comics, animation, movies, TV drama,
music, games, and sports.
In the pachinko/pachislot field, the Company has utilized most of the merchandising rights thus obtained in order to develop
highly entertaining pachinko/pachislot machines, thus contributing to stabilizing and vitalizing the market. At that time, with
IP-based pachinko/pachislot machines in short supply, the key to success was that the Company embraced PS as a media
comparable to animation, movies, and TV earlier than any other company and developed highly entertaining pachinko/pachislot
machines.
Meanwhile, the Company has also collaborated with companies and human resources of creative excellence, as well as
corporations with cutting-edge technology, to expand our business areas in a range of entertainment fields by developing theacquired merchandising rights into media other than PS. During this, the Company has gone beyond just acquiring IP and brought
companies of high-qulity IP, such as Tsuburaya Productions Co., Ltd., into the Group. Further, we have built networks with top
companies in each field and outstanding partners and welcomed into the Group corporations with their own expertise in areas
such as comics, animation, and movies, as the Company has continued to pursue adding high value to our IP.
Accordingly, in the PS field we were able to realize the significant achievement of ongoing development and sales of fascinatingmachines.

＜Developing business models＞
In order to achieve medium- to long-term growth and development, from several years ago the Group has been planning astrategic shift from a business model focusing on the PS field to a business model emphasizing IP, and in May 2012 announced
the developing business models (see Figure 1).
The business development model, which basically consists of 4 frameworks, aims at a virtuous cycle of success through circularbusiness development based on interaction between the frameworks.
1) Comics: A source of IP creation
The Company will acquire and create original works, stories and characters, and has already published comic magazines and has
been creating characters based on heroes. The Company will continue to develop IP from various angles, such as collaboratingwith partner companies and working on developing ideas into comic magazines through our network.
2) Animation: Revitalizing IP through digitization
The Company will work to produce video versions of leading comics, making the best of the most advanced technology. In
producing such video versions, it will revitalize its IP by using effects that highlight the stories and characters, including thoserealized in the movie “Berserk”.
3) Movies/TV: Spreading IP and maximizing its value
We are pursuing a higher level of recognition and increasing the value of its work via media such as movies/TV. As the Company
achieved in the “Ultraman Saga”, it aims to expand its fan base by incorporating 3D film and other advanced technologies andeffectively promoting its work.
4) Multimedia merchandising: Multiple IP development
The Company will increase profits through merchandising, using interactive media such as games, mobile terminals, and social
network services (SNS), consumer products and pachinko/pachislot machines.
In the future, the Fields Group will continue to aim at establishing its character business using its advantages as a PS distributor,
and will strive to bolster its systems to manage such business with the establishment of a holding company in mind.

(4) Targeted management indicators
The managerial goal of the Fields Group is to increase its corporate value by achieving greater operational efficiency andcontinuous business expansion. It places emphasis on management indicators such as return on equity, operating income, and cash
flow from operating activities.
(5) Other important matters affecting corporate management
No relevant items-8-

4. Consolidated financial statements(1) Consolidated balance sheets
Fiscal year ended
March 31, 2012(as of March 31, 2012)
AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable—trade
Merchandise and products
Work in process
Raw materials and supplies
Deferred tax assets
Merchandising rights advances
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Net amount of buildings and structures
Machinery, equipment and vehicles
Accumulated depreciation
Net amount of machinery, equipment and vehicles
Tools, furniture and fixtures
Accumulated depreciation
Net amount of tools, furniture and fixtures
Land
Construction in progress
Total tangible fixed assets
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans
Deferred tax assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

*3

*3

*1

-9-

18,34434,402
386
2,493
255
609
1,840
4,580
(101)
62,811(Unit: Million yen)
Fiscal year ended
March 31, 2013(as of March 31, 2013)*3*3

23,31442,017
250
2,041
52
749
2,026
2,300
(41)
72,7096,078(2,815)
3,263
96
(75)
21
3,450
(2,682)
768
6,642
285
10,9806,336(3,137)
3,199
70
(59)
11
3,862
(2,740)
1,122
6,775
43
11,151

2,498
1,874
4,372

2,177
2,363
4,540

10,241
407
909
4,410
(531)
15,43730,79093,601*1

11,399
1,429
847
5,063
(514)
18,22633,918106,628

Fiscal year ended
March 31, 2012(as of March 31, 2012)
Liabilities
Current liabilities
Notes and accounts payable—trade
Corporate bonds redeemable within 1 year
Short-term borrowings
Current portion of long-term borrowings
Accrued income taxes
Accrued bonuses
Accrued bonuses to directors and auditors
Reserve for returned goods unsold
Other current liabilities
Total current liabilities
Fixed liabilities
Corporate bonds
Long-term borrowings
Retirement benefit provisions
Other fixed liabilities
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interest
Total net assets
Total liabilities and net assets*3- 10 -

29,100
618
450
153
184
315
240
10
6,852
37,925(Unit: Million yen)
Fiscal year ended
March 31, 2013(as of March 31, 2013)*3

36,604
300
521
122
3,931
301
230
28
5,326
47,365

300
139
455
3,226
4,121
42,046

109
531
3,522
4,164
51,5297,948
7,994
37,774(1,821)
51,895

7,948
7,994
40,835(1,821)
54,957

(824)
(0)
(824)
483
51,55593,601

(397)
(1)
(398)
539
55,098106,628

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenditures
Salaries
Provision for accrued bonuses
Provision for accrued bonuses to directors andauditors
Outsourcing expenses
Travel and transport expenses
Depreciation and amortization
Rents
Provision to allowance for doubtful accounts
Retirement benefit expenses
Amortization of goodwill
OthersTotal selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity method investment gain
Discounts on purchases
Lease income
OthersTotal non-operating income
Non-operating expenses
Interest expense
Equity method investment loss
Amortization of equity investment
Loss on equity investment
Disaster-related support expenses
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of fixed assets
Gain on sale of shares in affiliates
OthersTotal extraordinary income

Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)
92,19560,86531,330(Unit: Million yen)
Fiscal year ended March 31, 2013
(April 1, 2012–March 31, 2013)
108,141*4
74,86233,279

3,644
5,728
246

2,964
5,569
247

240

230

2,373
542
1,431
1,749
(52)
86
333
6,479
22,803
8,527

2,608
507
1,623
2,249
(56)
92
319
6,608
22,964
10,314

5
169
102
33
41
221
574

18
180
139
41
357
738

17
289
84
48
440
8,661

18
103
531
92
37
784
10,26870
8- 11 -

*1

2
7
0
10

Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)
Extraordinary losses
Loss on disposal of fixed assets
Impairment loss
Provision to allowance for doubtful accounts
Loss on production suspension
OthersTotal extraordinary losses
Income before income taxes and minority
interests
Current income taxes
Deferred income taxes
Total income taxes
Income before minority interests
Minority interests
Net income*2*3- 12 -

83
197
45
78
404

(Unit: Million yen)
Fiscal year ended March 31, 2013
(April 1, 2012–March 31, 2013)
*2
*3

190
180
853
51
1,276

8,265

9,002

1,450
649
2,099
6,165
174
5,991

4,538
(313)
4,224
4,778
57
4,720

Consolidated statements of comprehensive income

Income before minority interests
Other comprehensive income
Unrealized holding gain on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests(Unit: Million yen)
Fiscal year ended March 31, 2012 Fiscal year ended March 31, 2013
(April 1, 2011–March 31, 2012)(April 1, 2012–March 31, 2013)
6,165
4,778

- 13 -

(1)
(0)
*
(2)
6,162

427
(0)
*
426
5,204

5,988

5,147

173

57

(3) Consolidated statement of change in net assets(Unit: Million yen)
Fiscal year ended March 31, 2012 Fiscal year ended March 31, 2013
(April 1, 2011–March 31, 2012) (April 1, 2012–March 31, 2013)
Shareholders’ equity
Common stock
Balance at beginning of the year
Amount of changes during the year
Total amount of changes during the year
Balance at end of the year
Capital surplus
Balance at beginning of the year
Amount of changes during the year
Total amount of changes during the year
Balance at end of the year
Retained earnings
Balance at beginning of the year
Amount of changes during the year
Dividends from surplus
Net income
Total amount of changes during the year
Balance at end of the year
Treasury stock
Balance at beginning of the year
Amount of changes during the year
Purchase of treasury stock
Total amount of changes during the year
Balance at end of the year
Total shareholders’ equity
Balance at beginning of the year
Amount of changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Total amount of changes during the year
Balance at end of the year
Accumulated other comprehensive income
Unrealized holding gain on available-for-sale securities
Balance at beginning of the year
Amount of changes during the year
Net amount of changes in items not included inshareholders’ equity during the year
Total amount of changes during the year
Balance at end of the year
Foreign currency translation adjustment
Balance at beginning of the year
Amount of changes during the year
Net amount of changes in items not included inshareholders’ equity during the year
Total amount of changes during the year
Balance at end of the year

- 14 -

7,948

7,948

7,948

7,948

7,994

7,994

7,994

7,994

33,44337,774(1,660)5,991
4,330
37,774(1,659)4,720
3,061
40,835(1,785)(1,821)(36)(36)(1,821)(1,821)47,601

51,895(1,660)
5,991
(36)
4,294
51,895(1,659)4,720
3,061
54,957

(822)

(824)

(1)

426

(1)
(824)

426
(397)

0

(0)

(0)

(0)

(0)
(0)

(0)
(1)

Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)
Total accumulated other comprehensive
incomeBalance at beginning of the year
Amount of changes during the year
Net amount of changes in items notincluded in shareholders’ equity during
the year
Total amount of changes during the year
Balance at end of the year
Minority interest
Balance at beginning of the year
Amount of changes during the year
Net amount of changes in items notincluded in shareholders’ equity during theyear
Total amount of changes during the year
Balance at end of the year
Total net assets
Balance at beginning of the year
Amount of changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Net amount of changes in items notincluded in shareholders’ equity during theyear
Total amount of changes during the year
Balance at end of the year

- 15 -(Unit: Million yen)
Fiscal year ended March 31, 2013
(April 1, 2012–March 31, 2013)

(821)

(824)

(2)

426

(2)
(824)

426
(398)

242

483

241

55

241
483

55
539

47,021

51,555(1,660)5,991(36)(1,659)
4,720
-

238

481

4,533
51,555

3,543
55,098

(4) Consolidated statements of cash flows
Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)(Unit: Million yen)
Fiscal year ended March 31, 2013
(April 1, 2012–March 31, 2013)

8,265
1,962
197
333
(38)
(30)

9,002
2,207
180
319
(77)
(13)

20

(10)

78
(175)
(33)
(102)
17
356

76
(199)
(139)
103
18
825

(5,194)(9,013)

(572)
226
(214)
200

792
(185)
(233)
15

11,048

8,488

805
(266)
563
(513)
16,933212(18)(7,112)
10,015

(22)
478
(304)
267
12,577212(19)799
13,570(503)
531(1,355)(1,065)(400)(1,021)
7(1,571)(1,741)
(313)
(412)
75

(172)

-

(572)
(354)
263
(572)
129
287
(4,798)(459)(1,891)
211
(395)
129
106
(6,263)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in accrued bonuses
Increase (decrease) in accrued bonuses to directors
and auditors
Increase (decrease) in retirement benefit provisions
Interest and dividend income
Discounts on purchases
Equity method investment loss (gain)
Interest expense
Amortization of equity investment
Decrease (increase) in notes and accounts
receivable—trade
Decrease (increase) in inventories
Decrease (increase) in merchandising right advances
Decrease (increase) in prepaid expenses
Decrease (increase) in advance payments
Increase (decrease) in notes and accounts
payable—trade
Increase (decrease) in other accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
OthersSubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of marketable securities
Proceeds from redemption of marketable securities
Purchases of tangible fixed assets
Purchases of intangible fixed assets
Purchases of investment securities
Expenditure for acquiring shares in affiliates
Proceeds from sales of shares in affiliates
Expenditure for acquiring shares in subsidiaries which
involved change in the scope of consolidation
Expenditure for equity investment
Expenditure for loans
Collection on loans
Payments for deposits and guarantees
Proceeds from cancellation of deposits and guarantees
OthersCash flows from investing activities- 16 -

(Unit: Million yen)
Fiscal year ended March 31, 2013
(April 1, 2012–March 31, 2013)

Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Repayment of long-term borrowings
Redemption of corporate bonds
Dividends paid
OthersNet cash provided by (used in)financing activities
Effect of exchange rate changes on cash
and cash equivalents
Increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginningof the year
Cash and cash equivalents at end of theyear*- 17 -

(152)

70

(61)
(748)
(1,659)
55

(162)
(618)
(1,658)90(2,565)(2,277)

0

(3)

2,652

5,025

15,632

18,284

18,284*23,309(5) Note regarding the Consolidated Financial Statements
Note regarding the operation of the company as a going concern
No relevant items
Basis of presentation of the consolidated financial statements
1. Scope of consolidation(1) Number of consolidated subsidiaries: 16
Names of consolidated subsidiaries:
Fields Jr. Corporation
Shin-Nichi Technology Co., Ltd.
Total Workout premium management Inc.
Lucent Pictures Entertainment, Inc.
Digital Frontier Inc.
K-1 INTERNATIONAL Corporation
FutureScope Corporation
MICROCABIN CORP.
IP Bros. Incorporated
EXPRESS Inc.
GEMBA Inc.
Digital Frontier (Taiwan) Inc.
Fly Studio SDN, BHD
NEX ENTERTAINMENT CO., LTD.
BOOOM Corporation
Tsuburaya Productions Co., Ltd.

(2) Names of significant non-consolidated subsidiaries:
HERO’S Properties Inc.
HAIRGRANCE Inc.
APE Inc.
NEX Future Production Co., Ltd.
Reason for excluding from the scope of consolidation:
Non-consolidated subsidiaries have been excluded from consolidation owing to their small size and the fact that in no case dotheir aggregate total assets, net sales, net income (proportionate to equity stakes held) and retained earnings (proportionate toequity stakes held), etc. have a material impact on the consolidated financial statements.

- 18 -

2. Application of equity method(1) Number of affiliates accounted for using the equity method: 7
Mizuho Corp.
HERO’S Inc.
Japan Amusement Broadcasting Corp.
Rodeo Co., Ltd.
SOGO MEDIA INC.
SPO Inc.
Kadokawa Haruki Corporation
Since the Company acquired shares in Japan Amusement Broadcasting Corp. during the year under review, it newly applies theequity method to the company.
Bbmf Magazine, inc. has been excluded from the scope of the equity method application due to the Company’s sale of its
shareholdings in the current consolidated fiscal year.
(2) Names of non-consolidated subsidiaries and affiliates not accounted for using the equity method:
HERO’S Properties Inc.
HAIRGRANCE Inc.
APE Inc.
NEX Future Production Co., Ltd.
G&E Corporation
Reason for not applying the equity method:
These companies have a negligible impact on net income (proportionate to equity stakes held) and retained earnings(proportionate to equity stakes held) and have no significance as a whole, so they have been excluded from the application of
the equity method.
(3) Matters requiring clarification concerning procedures for application of the equity method:
With regard to companies accounted for by the equity method whose year-end settlement date differs from that for consolidated
accounts, the financial statements relating to those companies’ fiscal years are utilized.
3. Business years of consolidated subsidiaries
The accounts settlement dates of consolidated subsidiaries correspond with the Company’s consolidated accounts settlement date.
4. Accounting standards(1) Valuation standards and methods for important assets[1]

Marketable securities
Held-to-maturity bonds:
Carried at amortized cost (straight-line method)
Other marketable securities
Securities with market prices:Stated at market value based on market price as of the consolidated balance sheet date (unrealized gains or losses arecharged or credited directly to net assets, with the cost of securities sold determined by the moving average method).
Securities without market prices:Stated at cost determined by the moving average method.

- 19 -

[2]Derivatives:
Stated at market value[3]

Inventories
Inventories held for purposes of ordinary sales
Valuation policy for inventories held for purposes of ordinary sales is based on a cost basis (which reduces the book valueof assets whose profitability is diminished).
a. Merchandise
Fields Corporation:
Used pachinko/pachislot machines
Specific identification method
OthersMoving average method
Consolidated subsidiaries:
Periodic average method
b. Work in process
Consolidated subsidiaries:
Specific identification methodc. Raw materials
The Company and its consolidated subsidiaries
Moving average methodd. Supplies
Last purchase price method(2) Depreciation methods for important depreciable assets[1]

Tangible fixed assets
Declining-balance method for the Company and domestic consolidated subsidiaries
However, the straight-line method is applied to buildings (excluding building fixtures) acquired on and after April 1, 1998.
The estimated useful lives of depreciable assets are as follows.

[2]

Buildings and structures:

2–50 years

Machines and conveyors:

2–12 years

Tools, furniture and fixtures:

2–20 years

Intangible fixed assets
Straight-line method
The straight-line method is applied to software for company use, based on its useful life within the Company (5 years).

[3]

Long-term prepaid expenses
Straight-line method- 20 -

(3) Accounting standards for important reserves[1]

Allowance for doubtful accounts
To provide against losses from doubtful accounts, allowances for ordinary receivables are provided using a rate determinedby past collection experience, and allowances for specific debts considered doubtful are accounted for by calculating theestimated amounts deemed uncollectible after individually reviewing collectability of the debts.

[2]

Accrued bonuses
To provide for employee bonuses, the Company and some of its consolidated subsidiaries recognize the amounts out of the
projected bonus payments to be allocated during the year under review.

[3]

Accrued bonuses to directors and auditors
To provide for bonuses to directors and auditors, the Company recognizes the amounts corresponding to the year underreview based on the projected bonus payments.

[4]

Retirement benefit provisions
To provide for employees’ retirement benefits, the Company and some consolidated subsidiaries recognize, on the basis ofprojected benefit obligations as of the end of the year under review, benefit obligations accrued as of the end of the year.
Actuarial differences are amortized proportionately by the straight-line method over a fixed number of years (5 years)
within the average remaining period of service of employees as of the time such differences arise. Amortization amounts are
expensed beginning with the fiscal year following that in which the differences arise.

[5]

Provision for sales returns
To provide against losses in future sales returns, some of the subsidiary companies factor in the projected amount of losses
from such returns in advance.

(4) Amortization method for goodwill and the amortization period
Goodwill is amortized equally for a reasonable number of years within 10 years, estimating the period when its effect isgenerated.
(5) Scope of funds in consolidated statements of cash flows
Funds include cash on hand, demand deposits, and short-term investments maturing or redeemable within 3 months after
acquisition that are highly liquid, easily convertible into cash, and exposed to low price-fluctuation risk.
(6) Other significant matters in the preparation of the consolidated financial statements
Accounting for consumption taxes
Regarding the accounting for consumption tax and local consumption tax, using the before-tax formula, consumption tax
excluding asset-related deductions and local consumption tax will be treated as costs of the year under review.
(Changes in accounting policies)(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates)
In accordance with revision of the Corporation Tax Act, from the year under review, the Company and its domestic
consolidated subsidiaries have switched to the depreciation method based on the revised Corporation Tax Act for tangible
fixed assets acquired on and after April 1, 2012.
The impact of this on profit or loss is minimal.

- 21 -

(Accounting standards not adopted)▪ Accounting Standard for Retirement Benefits (ASBJ Statement No. 26 May 17, 2012)▪ Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25 May 17, 2012)(1) Outline
From the perspective of improving financial reporting and based on international trends, these accounting standards
have been revised primarily to enhance the disclosure and calculation methods of retirement benefit obligations andservice costs, and methods for treating unrecognized past service costs and unrecognized actuarial differences.
(2) Scheduled implementation date
The scheduled implementation date is the end of the year ending March 31, 2014. However, the scheduled
implementation date for the revision of calculation methods of retirement benefit obligations and service costs will be
the beginning of the year ending March 31, 2015.
(3) Impact of the implementation of these accounting standards
The impact is currently being assessed during the preparation of these consolidated financial statements.
(Changes in the method of presentation)
No relevant items- 22 -

(Consolidated balance sheets)*1. Related to non-consolidated subsidiaries and affiliates
Fiscal year ended March 31, 2012(as of March 31, 2012)
Investment securities (shares)¥3,553 million

Fiscal year ended March 31, 2013(as of March 31, 2013)¥3,860 million

2. Contingent liabilities
The Company provides payment guarantees for sales of pachinko/pachislot machines to pachinko halls from pachinko/pachislot
machine manufacturers when acting as a representative in such sales.
Fiscal year ended March 31, 2012(as of March 31, 2012)

Fiscal year ended March 31, 2013(as of March 31, 2013)

VEAM STADIUM¥- million¥99 million

K.K. Ichiroku Shoji¥55 million¥73 million

Niimi Co., Ltd.

¥88 million¥65 million

K.K. Corona¥84 million¥48 million

TAIKO¥19 million¥34 million

K. K. Taisei Kanko¥21 million¥32 million

Y. K. Big Shot

¥19 million¥31 million

Japan New Alpha Co., Ltd.

¥10 million¥27 million

Shinwa Kogyo¥14 million¥25 million

Shinsei Kanko¥- million¥24 million¥1,010 million¥809 million¥1,324 million¥1,272 million

OthersTotal*3. Notes maturing at the end of the fiscal year
The accounting of notes maturing at the end of the fiscal year is based on the day when they are cleared.
Since the last day of the fiscal year fell on a holiday, the below-listed notes maturing on the day are included in the balance ofnotes receivable at the end of the fiscal year.
Fiscal year ended March 31, 2012(as of March 31, 2012)
Notes receivable

Fiscal year ended March 31, 2013(as of March 31, 2013)¥420 million¥890 million

Non-operating notes receivable¥1 million¥15 million

Notes payable-trade¥- million¥6 million

4. Overdraft agreements
To raise working capital efficiently, the Fields Group has concluded an overdraft agreement with banks. Unutilized balances underthese agreements as of March 31, 2013 were as follows:
Fiscal year ended March 31, 2012(as of March 31, 2012)
Overdraft limit
Borrowings outstanding
Difference- 23 -

Fiscal year ended March 31, 2013(as of March 31, 2013)¥17,400 million¥17,400 million¥400 million¥400 million¥17,000 million¥17,000 million

(Consolidated statements of income)*1 Profit on disposal of fixed assets:
Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)

Fiscal year ended March 31, 2013
(April 1, 2012–March 31, 2013)

Buildings and structures¥- million¥2 million

Tools, furniture and fixtures¥- million¥0 million

Software¥- million¥0 million

Total¥- million¥2 million*2 Loss on disposal of fixed assets:
Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)
Buildings and structures

Fiscal year ended March 31, 2013
(April 1, 2012–March 31, 2013)¥4 million¥85 million

Tools, furniture and fixtures¥9 million¥6 million

Software¥69 million¥98 million

Telephone subscription rights¥1 million¥- million

Total¥83 million¥190 million*3 Impairment loss
The Fields Group has stated an impairment loss for the assets set out below.
Fiscal year ended March 31, 2012 (April 1, 2011–March 31, 2012)
Usage
Type
Location
AmountMobile business-related assets
Software
Shibuya-ku, Tokyo¥173 million

Miscellaneous business-related assets
Buildings and structures
Shibuya-ku, Tokyo¥23 million

When grouping its assets, with regard to business-use assets, the Fields Group adopts the method of grouping primarily by businesscategory in accordance with management accounting practice.
With regard to mobile business-related assets, the Company has recognized losses due to the lower profitability it could not expect
to recover at book value. Such losses consist of ¥173 million on the software.
The recoverable value of these properties has been calculated on the basis of value in use because net selling prices are notavailable, but such recoverable value is appraised at 0 because no future cash flow is expected.
With regard to miscellaneous business-related assets, the Company has recognized losses due to the lower profitability it could not
expect to recover at book value. Such losses consist of ¥23 million on the buildings and structures.
The recoverable value of these properties has been calculated on the basis of value in use because net selling prices are notavailable, but such recoverable value is appraised at 0 because no future cash flow is expected.

- 24 -

Fiscal year ended March 31, 2013 (April 1, 2012–March 31, 2013)
Usage
Type
Location
AmountAmusement facilities
Buildings and structures, etc.
Arao City, Kumamoto¥132 million

Assets to be impaired
Software, etc.
Shibuya-ku, Tokyo¥47 million

When grouping its assets, with regard to business-use assets, the Fields Group adopts the method of grouping primarily by businesscategory in accordance with management accounting practices.
With regard to amusement facilities, as the Company decided to close them, it has reduced their book values to recoverable values
and recognized these reduced amounts as losses.
Such losses consist of ¥122 million on the buildings and structures and ¥10 million on machinery, equipment and vehicles.
The recoverable value of these properties has been calculated on the basis of value in use because net selling prices are notavailable, but such recoverable value is appraised at 0 because no future cash flow is expected.
With regard to assets to be impaired, the Company has recognized losses as they are less profitable and it could not expect torecover at book value. Such losses consist of ¥37 million on software, ¥7 million on the buildings and structures, ¥1 million onmachinery, equipment and vehicles, and ¥1 million on tools, furniture and fixtures.
The recoverable value of these properties has been calculated on the basis of value in use because net selling prices are notavailable, but such recoverable value is appraised at 0 because no future cash flow is expected.
*4 Inventory in the end of the year under review is the amount after book-value reduction due to lower profitability and thefollowing inventory is included in cost of sales.
Fiscal year ended
Fiscal year ended
March 31, 2012
March 31, 2013
(April 1, 2011–(April 1, 2012–
March 31, 2012)
March 31, 2013)¥- million¥11 million(Consolidated statements of comprehensive income)* Recycling and tax effects related to other overall income
Fiscal year ended
March 31, 2012
(April 1, 2011–
March 31, 2012)
Unrealized holding gain on available-for-sale securities
Differences that arose during the current fiscal year
Amount of recycling
Pre-tax adjustments
Amount of tax effects
Unrealized holding gain on available-for-sale securities
Foreign currency translation adjustment
Differences that arose during the current fiscal year
Amount of recycling
Pre-tax adjustments
Amount of tax effects
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Differences that arose during the current fiscal year
Total other comprehensive income- 25 -

Fiscal year ended
March 31, 2013
(April 1, 2012–
March 31, 2013)¥105 million¥- million¥105 million¥107 million¥(1) million¥660 million¥- million¥660 million¥232 million¥427 million¥(0) million¥- million¥(0) million¥- million¥(0) million¥(0) million¥- million¥(0) million¥- million¥(0) million¥- million¥(2) million¥- million¥426 million

(Consolidated statements of changes in net assets)
Fiscal year ended March 31, 2012 (April 1, 2011–March 31, 2012)

1 Shares issued
Type
Common stock (shares)

As of April 1, 2011
347,000

Increase

As of April 1, 2011
14,885

Increase

Decrease--

As of March 31, 2012
347,000-

As of March 31, 201215,1622 Treasury shares
Type
Common stock (shares)

Decrease
277

Outline of the reason for change
Increase due to requests for purchase made in accordance with Paragraph 1, Article 797 of the Companies Act: 277 shares

3 Stock acquisition rights
No relevant items

4 Dividends(1) Dividends paid
Resolution
Ordinary General Meeting of
Shareholders on June 22, 2011
Meeting of the Board of
Directors on November 2, 2011

Total dividends
paid(Million yen)Type

Amount ofdividends per
share (Yen)

Cut-off date

Effective date

March 31, 2011

June 23, 2011

Common stock

830

2,500

Common stock830

2,500 September 30, 2011 December 2, 2011

(2) Dividends for which the cut-off date came during the fiscal year ended March 31, 2012, but the effective date will comeduring the fiscal year ended March 31, 2013 or thereafter
Resolution

Type

Ordinary General Meeting of
Shareholders on June 20,
2012

Common stock

Total dividends
paid(Million yen)

Source forpayment ofdividends

829

Retainedearnings- 26 -

Amount ofdividends per
share (Yen)

Cut-off date

2,500 March 31, 2012

Effective dateJune 21, 2012

Fiscal year ended March 31, 2013 (April 1, 2012–March 31, 2013)
1 Shares issued
Type

As of April 1, 2012
347,000

Common stock (shares)(Note)

Increase

Decrease

34,353,000

As of March 31, 2013-

34,700,000

In accordance with a decision made by the Board of Directors on August 23, 2012, the Company conducted a
100-for-1 stock split on October 1, 2012, and adopted the share-trading unit system, which will treat 100
shares as a single unit of stock.

2 Treasury shares
Type

As of April 1, 201215,162

Common stock (shares)(Note)

Increase

Decrease

1,501,038

As of March 31, 2013-

1,516,200

In accordance with a decision made by the Board of Directors on August 23, 2012, the Company conducted a
100-for-1 stock split on October 1, 2012, and adopted the share-trading unit system, which will treat 100
shares as a single unit of stock.

3 Stock acquisition rights
No relevant items

4 Dividends(1) Dividends paid
Resolution
Ordinary General Meeting of
Shareholders on June 20, 2012
Meeting of the Board of
Directors on November 2, 2012
(Note)

Total dividends
paid(Million yen)Type

Amount ofdividends per
share (Yen)

Cut-off date

Effective date

March 31, 2012

June 21, 2012

Common stock

829

2,500

Common stock829

2,500 September 30, 2012 December 7, 2012

As the Company conducted a 100-for-1 stock split on October 1, 2012, dividend per share is ¥25.00 taking thestock split into consideration.

(2) Dividends for which the cut-off date came during the fiscal year ended March 31, 2013, but the effective date will comeduring the fiscal year ending March 31, 2014 or thereafter
Resolution

Type

Ordinary General
Meeting of Shareholders
on June 19, 2013

Common stock

Total dividends
paid(Million yen)

Source forpayment ofdividends

829

Retainedearnings

Amount ofdividends per
share (Yen)

Cut-off date

25 March 31, 2013

Effective dateJune 20, 2013

(Consolidated statements of cash flows)*

Relationship between cash and cash equivalents as of the end of the fiscal year and cash amounts stated on the consolidatedbalance sheets
Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)
Cash and deposit accounts
Time deposits of which depositing period
exceeds 3 months
Cash and cash equivalents- 27 -

Fiscal year ended March 31, 2013
(April 1, 2012–March 31, 2013)¥18,344 million¥23,314 million¥(60) million¥(5) million¥18,284 million¥23,309 million

(Segment information, etc.)(Segment information)(Outline of reportable segments)
In the previous consolidated fiscal year, the Group reported segment information for the pachinko/pachislot (PS) Field, Mobile
Field, Sports Entertainment Field and Other Field, but these 4 segments were constructively consolidated in the current fiscal year
to form a single segment with a focus on Intellectual Property (IP).
The Group plans to make a strategic shift from a business model focused on the pachinko/pachislot field that it has maintainedsince it was first listed on the Osaka Securities Exchange to a business model emphasizing IP in order to achieve medium- tolong-term growth and development. Accordingly, the Group has refined and developed its “Developing Business Model” strategy
and anticipates further growth and development as a result.
Based on the “Developing Business Model,” the Group will carry out business activities that focus on maximizing IP value. The“Developing Business Model” is centered on comics, animation, movies/TV and merchandising and aims to optimize IP value via
circular business development achieved through their interaction. The Group now forms a single business since, as a result of thisstrategy, the Group will devise management strategy, make decisions on the allocation of business resources and assess resultswith a focus on IP.
Since the Group will form a single segment as a result of this change, reportable segments for the year ended March 31, 2012 andthe year ended March 31, 2013 are omitted.

Related information
Fiscal year ended March 31, 2012 (April 1, 2011–March 31, 2012)
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 or service
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 formore than 90% of net sales in the consolidated statement of income.

(2) Tangible fixed assets
Information on the amount of tangible fixed assets in Japan has been omitted because the amount of tangible fixed assets inJapan accounted for more than 90% of the amount of tangible fixed assets in the consolidated balance sheet.
3

Information on each major customer
Customer name

(Unit: Million yen)
Name of the related segment

Net sales

Bisty Co., Ltd.

11,255- 28 -

Pachinko/Pachislot (PS) Field

Fiscal year ended March 31, 2013 (April 1, 2012–March 31, 2013)
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 or service
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 formore than 90% of net sales in the consolidated statement of income.
(2) Tangible fixed assets
Information on the amount of tangible fixed assets in Japan has been omitted because the amount of tangible fixed assets inJapan accounted for more than 90% of the amount of tangible fixed assets 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 is 10% of net salesof the consolidated statements of income.

(Per-share data)

Item
Net assets per share

Fiscal year ended March 31, 2012(as of March 31, 2012)
1,539.04(Unit: Yen)
Fiscal year ended March 31, 2013(as of March 31, 2013)
1,644.15

180.45142.27

Amount of net income per share(Note)

1. Since no latent share exists, the amount of diluted net income per share is not stated.
2. The amount of net income per share and the basis for calculation are as follows:

Fiscal year ended March 31, 2012
(April 1, 2011–March 31, 2012)
5,991

Fiscal year ended March 31, 2013
(April 1, 2012–March 31, 2013)
4,720

Amount not allocable to common shares (million yen)--

Net income allocable to common shares (million yen)

5,991

4,720

33,201,996

33,183,800

Item
Net income (million yen)

Average number of shares of common stock outstanding(shares)
Outline of latent shares not reflected in the calculationof diluted net income per share since they have no
dilutive effect(Note)——————

3. In accordance with a decision made by the Board of Directors on August 23, 2012, the company conducted
a 100-for-1 stock split on October 1, 2012, and adopted the share-trading unit system, which will treat 100
shares as a single unit of stock. As a result, net income per share has been calculated as if the stock split
was conducted at the beginning of the previous consolidated fiscal year.

(Significant subsequent events)
No relevant items- 29 -

5. Others(1) Personnel change in officers[1]

Change in representatives of the Company
No relevant items[2]

Change in other
The nomination of candidates for Directors and Auditors is as follows:
Each candidate will be elected auditor at the 25th General Meeting of Shareholders to be held on June 19, 2013.

<Candidates for Directors>
Name
Hidetoshi Yamamoto“Reappointment”

Takashi Oya“Reappointment”

Kiyoharu Akiyama“Reappointment”

Tetsuya Shigematsu“Reappointment”

Masakazu Kurihara“Reappointment”

Hiroyuki Yamanaka“Reappointment”

Hideo Ito

“Reappointment”

Akira Fujii“Reappointment”

Toru Suenaga“Reappointment”

Shigesato Itoi

“Reappointment”(Notes) Mr. Shigesato Itoi, a candidate for director, is an outside director as stipulated in Item 15, Article 2 of theCompanies Act.
<Candidates for Auditors>
Name
Tadao Koike“Reappointment”(Notes) Mr. Tadao Koike, a candidate for auditor, is an outside auditor as stipulated in Item 16, Article 2 of theCompanies Act.

- 30 -