Summary(Translation)
Fields Corporation
Summary of First Quarter Financial Information and Business Results (Consolidated)Year Ending March 31, 2009
August 6, 2008
Company Name:

Fields Corporation(URL: http://www.fields.biz)
Listed on:
JASDAQ (Stock code: 2767)
Representative Director:
Takashi Oya
President and COO
Inquiries:
Hideaki Hatanaka
Executive Officer and General Manager, Office of the President, Investor and Public Relations OfficeTel:+81-3-5784-2111
Planned Date for Submittal of the Quarterly Report:
August 12, 2008
(Rounded down to the nearest million)

1. Business results for the first quarter of the year ending March 31, 2009 (April 1, 2008, to June 30, 2008)(1) Operating results (cumulative total)(Percentage figures denote year-over-year changes.)
Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
First quarter, year—
(3,312)—(3,161)—(2,289)—7,321
ending March 31, 2009First quarter, year
24,234 (4.4)
2,322 (26.9)
2,627 (23.0)
1,156 (30.3)
ended March 31, 2008
Net income per share
Diluted net income per share
Yen
YenFirst quarter, year
ending March 31, 2009First quarter, year
ended March 31, 2008

(6,596.99)—

3,333.14—(2) Financial position
Total assets

Net assets

Millions of yen

Millions of yen

First quarter, year
64,272ending March 31, 2009
Year ended
69,168March 31, 2008
(Reference) Shareholders’ equity
First quarter, year ending March 31, 2009: ¥41,931 million
Year ended March 31, 2008: ¥44,485 million

1

Shareholders’ equity
ratio%

Net assets per share
Yen

43,391

65.2

120,839.58

46,331

64.3

128,201.49

2. Dividends(Record date)

First quarterend
Yen

Dividend per share
Second quarterThird
end
quarter-end
Yen
Yen

Year ended——
2,000.00
March 31, 2008
Year ending———
March 31, 2009
Year ending March 31,——
2,000.00
2009 (Forecast)(Note) Revisions made to projections on dividends for the quarter: No

Year-end

AnnualYen

Yen

2,500.00

4,500.00——

2,500.00

4,500.00

3. Forecast earnings for the year ending March 31, 2009 (April 1, 2008, to March 31, 2009)(Percentages denote year-over-year changes versus the corresponding year-earlier period.)
Net income
Net sales
Operating income Ordinary income
Net income
per share
Millions of yen% Millions of yen%Millions of yen% Millions of yen

37,000 (42.8)
2,500 (68.0)
First half
2,500 (66.5)
75,000 (26.3)
10,000 (24.0)
Full year
10,000 (14.6)(Note) Revisions made to the forecast earnings for the quarter: No%

Yen

700 (77.3)
5,300 0.1

2,017.29
15,273.78

4. Other Information(1) Transfer of important subsidiaries during the period under review (Transfer of specific subsidiaries that results in achange in the scope of consolidation): No(2) Adoption of simplified accounting methods and special accounting methods applicable to preparation of quarterly
consolidated financial statements: Yes(Note) For details, see “4. Other” in Qualitative Information, Financial Statements and Other Data on page 8.
(3) Changes in accounting principles, accounting procedures, presentation method and others in association with the
preparation of quarterly consolidated financial statements (Those which are stated in the “Basis of Presentation of theQuarterly Consolidated Financial Statements”)
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(Note) For details, see “4. Other” in Qualitative Information, Financial Statements and Other Data on page 8.
(4) Number of shares issued (common stock)1) Number of shares issued (including treasury stock)
First quarter, year ending March 31, 2009 347,000 sharesYear ended March 31, 2008
347,000 shares
2) Number of treasury stock at end of year
First quarter, year ending March 31, 2009
— sharesYear ended March 31, 2008
— shares
3) Average number of shares outstanding (quarterly consolidated cumulative period)First quarter, year ending March 31, 2009 347,000 sharesFirst quarter, year ended March 31, 2008 347,000 shares*Explanation on the appropriate usage of forecast earnings and other specific matters(1) No revisions are made to the consolidated forecast earnings as of May 14, 2008. The above forecast has been madebased on information available as of the date hereof, and actual earnings may differ from the projected figures due tovarious factors that may occur subsequently.
(2) The Company has adopted the Accounting Standard for Quarterly Financial Reporting and its Implementation
Guidance (ASBJ Statement No. 12) and the Guidance on Accounting Standard for Quarterly Financial Reporting(ASBJ Guidance No. 14) starting from the current fiscal year. The Company has also prepared quarterly consolidated
financial statements in accordance with the Regulations on Quarterly Financial Reporting.

2

y Qualitative Information, Financial Statements and Other Data
1. Qualitative Information Regarding Consolidated Operating Results(1) Overview of Operations for the First Quarter of the Year Ending March 31, 2009 (hereinafter referred to as the “firstquarter of the current year”)
Anticipating changes in the market environment, the Company has consistently focused itself on planning anddeveloping merchandise rich in gaming and entertainment elements, by virtue of the marketing prowess a leading
independent distributor enjoys and the planning savvy a fabless vendor has accumulated. In particular, the Company
recognizes the importance of digital content as it forms the foundation on which the Company establishes its
competitive edge. Acting on this, the Company has expanded into diverse fields of entertainment with a view toacquiring, creating and developing copyrights (merchandising rights) that offer superior entertainment features
applicable in the field of pachinko/pachislot machines, and contents that open up new customer segments.
Building on this commitment, the Company has initiated its medium-term management plan, commencing with thecurrent fiscal year ending March 31, 2009 (hereinafter referred to as the “current year”), which is designed to achieve
the vision of what the Company should be ten years hence and to ensure its sustainable growth. According to thisplan, the Company now promotes the strategic and aggressive development and expansion of business possibilities inthe specific fields.
In game, sports, movie, animation, mobile and other fields where the Company seeks to generate maximum
synergies with the pachinko/pachislot business, during the first quarter of the current year the Company stepped up
efforts to acquire and create high-visibility, high-quality content for commercial application in pachinko/pachislot
machines. Furthermore, the Company carried out programs aimed at achieving its business plans designed toculminate during the second half of the current year, and generally made almost as good progress as projected.
In the pachinko/pachislot business, the size of the market for pachislot machines shrank following increased
replacement demand last year arising from the industry’s complete shift to pachislot machines compliant with the
new regulations. Moreover, between June and mid-July this year the industry voluntarily refrained from thereplacement of machines in connection with the country’s hosting of the G8 Summit at Lake Toya. Especiallybecause of these, the Company initially expected the first quarter of the current year to be extremely challenging, but
its performance results proved slightly stronger than projected.
The Company plans to introduce its first additional innovative title, CR Seven Samurai, in the pachinko machine
market, and Neon Genesis Evangelion—That time has come, now they’re waiting for us, the newest edition of thehugely popular big-seller series, in the pachislot machine market, both during the second quarter of the current year
(July–September). During the first quarter of the current year the Company geared up efforts to prepare for therollout of these major products.
As a result of these above, during the first quarter of the current year, on a consolidated basis the Company posted
net sales of ¥7,321 million, operating loss of ¥3,312 million, ordinary loss of ¥3,161 million, and net loss of ¥2,289
million.
During the first quarter of the current year, the Company included ¥95 million in extraordinary income to recognize
gains on investment in an anonymous association and others and included ¥107 million in extraordinary losses toaccount for losses resulting from a warehouse fire suffered by a subsidiary, etc.
(2) Analysis of First-Quarter Operations by Business Segment
1) PS Field
The pachinko/pachislot machine industry faces a major change in its market environment. Last year at pachinkohalls nationwide, all installed pachislot machines compliant with the old regulations were replaced completely
with pachislot machines compliant with the new regulations. As a consequence of this, the operators of pachinkohalls have begun placing greater emphasis on pachinko machines.
In such circumstances, hall operators have implemented a variety of business efforts to seek out new fansegments. These include the adoption of pachinko machines rich in entertainment elements, a market approach of3

reducing the lease fee for pachinko balls, and a fuller array of premiums they offer. At the same time, they havebecome exacting in evaluating and selecting the pachinko machines they adopt. A remarkable trend is that large
orders are limited to pachinko machines with high quality content and it is these machines that are becoming theirprimary earner.
Manufacturers have shifted away from their previous strategy of supplying a great assortment of machine brands
in favor of limiting their variety and investing time into planning and development to supply exquisitely createdmachines. This has led to a climate where the acquisition of high-potential content and the enhancement ofplanning and development capabilities decide who wins and who loses.
In the pachinko/pachislot machine sales business during the first quarter of the current year, the industry
voluntarily refrained from the replacement of machines out of consideration for the country’s hosting of the G8
Summit at Lake Toya in July 2008. Still, the pachinko machine sales business continued to do well and sold atotal of 53,237 machines. In particular, CR Neon Genesis Evangelion—The Angels Are Back Again, introduced in
the previous fiscal year ended March 31, 2008 (hereinafter referred to as the “previous year”), achieved highutilization rates, and its sales continued into part of the first quarter of the current year. Also, CRA Neon Genesis
Evangelion Premium Model, launched in May, received high acclaim in the marketplace, and its total sales
exceeded 50,000 machines, a major hit by the standards of the market for machines designed less for gambling
than for playing for fun (so-called “yu-pachi”). Furthermore, during the first quarter of the current year, theCompany geared up efforts to prepare for the introduction during the second quarter of the current year of its first
additional innovative title, CR Seven Samurai.
The pachislot machine sales business sold a total of 5,360 machines, since Sonic Live hit the market in May, in
addition to extended sales into the first quarter of Tenka Muteki! Salaryman Kintaro, launched the previous year.
As a result of the above, the PS Field segment posted net sales of ¥4,197 million and operating loss of ¥1,562
million.
2) Game Field
In the Game Field, which shares strong synergies with the PS Field, the Company operates on a global scale, with
the D3 group leading the way, in pursuit of not only expanding revenues and earnings within the field, but alsoacquiring and creating new content for application in pachinko/pachislot machines. During the previous year,
remarkably, D3 Inc. launched its first original content title, darkSector, worldwide, in its current vigorous drive topromote the multi-use and global roll-out of content.
Sales of darkSector suffered from a major foreign manufacturer’s release of a competing title and have slowed
down since the beginning of the first quarter. Because of this, the Company allocated the estimated cost of
implementing a price protection program (see Note below) during the first quarter of the current year. Still, ahigh-end game software rendition of CR Neon Genesis Evangelion—The Angels Are Back Again, a mainstay titleof the PS Field, recorded continued strong sales, along with sales of the NARUTO Series and Ben10: Protector of
Earth which continued to do well overseas.
As a result of the above, the Game Field posted net sales of ¥1,904 million and operating loss of ¥1,112 million.
(Note) Price protection: An expense to support sales efforts that reduce retail prices allocated by deducting fromnet sales.
3) Sports Field
In the Sports Field, which has access to a wealth of content at home and abroad, the Company operates
aggressively, with Japan Sports Marketing Inc. leading the way, in accordance with its strategy that identifies B to
C and B to B businesses in the field of sports as forming its two pillars. The Company invests in the rights
business, the athlete management business, and the solution business in search of acquiring content of global
standing. The athlete management business in particular promises to generate synergies with diverse businesses

4across the Group because athletes constitute an extremely important source of content themselves, so theCompany is now in the midst of stepping up efforts to prepare for its expansion.
During the first quarter of the current year, the rights business reported continued strong sales of sponsorships fora variety of sports activities, and the athlete management business reported continued strong results benefiting
particularly from outstanding showings by athletes under contract. The Total Workout operation, which is central
to the solution business, inaugurated a branch in Fukuoka in April, its fourth bearing the brand name, under its
initiative to expand into cities outside of the major urban areas in Japan, and sought to increase the number of its
members.
As a result of the above, the Sports Field segment posted net sales of ¥961 million and operating loss of ¥169
million.
4) Movies Field
The Company has consistently given priority to the Movies Field over the other fields in the determination of
investments in pursuit of commercializing movie content for application in pachinko/pachislot machines. In thissegment, the Company has continued to invest aggressively in movies and content funds and more, in order tolead the drive across the Group to create primary content. CR Seven Samurai, a pachinko machine title scheduled
to be released soon, is an embodiment of efforts to generate synergies based on know-how and other assets insuch video fields, which has pioneered a new frontier of entertainment.
During the first quarter of the current year, two movies in whose production the Company has invested hit thescreen.
THE PUZZLE OF GOD, a film released in June in which the Company invested through the Haruki Fields
Cinema Fund, suffered a quite lackluster performance at the box office, and accordingly the Company has written
off the investment.
As a result of the above, the Movies Field posted net sales of ¥26 million and operating loss of ¥488 million.
5) Other Field
In the field of mobile content, which has gained in prominence and importance as it provides a new media
avenue, the Company seeks to provide content capable of generating synergies with the PS Field in pursuit ofcultivating new pachinko/pachislot fans. In conjunction with this, the Company has initiated efforts aimed atdeveloping new business opportunities by developing a fuller array of diverse content assets. Moreover, theCompany has invested aggressively in the field of animation in order to lead the drive across the Group to create
primary content.
During the first quarter of the current year, the Fields Mobile mobile-phone Web site operated by FutureScope
Corporation, which provides comprehensive entertainment information, continued to fare well with the number ofpaying members exceeding 380,000. In other mobile content areas as well, a new service was launched in June.
Furthermore, Lucent Pictures Entertainment, Inc., which engages in the planning and production of animation,with a view to achieving profitability in the fiscal year ending in March 2010, commenced the full-scale planningand development of animation content for cross-media application across the media of movies, videos, TV and soforth.
As a result of the above, the Other Field segment posted net sales of ¥394 million and operating income of ¥65
million.
(Note) Net sales reported by the individual segments are gross of inter-group sales or transfers.

5

2. Qualitative Information on the Consolidated Financial Position(1) Assets, Liabilities and Net Assets(Assets)
Current assets amounted to ¥30,038 million, down ¥9,520 million since the end of the previous year. This
primarily reflected decreases in notes and accounts receivable—trade and cash and cash equivalents.
Tangible fixed assets amounted to ¥11,833 million, up ¥3,739 million since the end of the previous year. This
primarily reflected the purchase of land scheduled for the construction of branch office premises to enforce sales
capabilities in the PS Field.
Intangible fixed assets amounted to ¥3,908 million, down ¥28 million since the end of the previous year.
Investments and other assets amounted to ¥18,492 million, up ¥913 million since the end of the previous year.
This primarily reflected an increase in net unrealized holding gain on investment securities.
As a result of the above, total assets amounted to ¥64,272 million, down ¥4,896 million since the end of theprevious year.
(Liabilities)
Current liabilities amounted to ¥15,200 million, down ¥4,122 million since the end of the previous year. This
primarily reflected a decrease in notes and accounts payable—trade, an increase in short-term borrowings, and adecrease in accrued income taxes.
Fixed liabilities amounted to ¥5,680 million, up ¥2,166 million since the end of the previous year. This primarilyreflected an increase in corporate bonds payable.
As a result of the above, total liabilities amounted to ¥20,881 million, down ¥1,955 million since the end of theprevious year.
(Net assets)
Net assets amounted to ¥43,391 million, down ¥2,940 million since the end of the previous year. This primarilyreflected a decrease in retained earnings.
(2) Cash Flows
During the first quarter of the current fiscal year ending March 31, 2009 (hereinafter referred to as the “first quarterof the current year”), cash and cash equivalents (hereinafter referred to as “cash”) decreased ¥3,355 million since theend of the previous year and amounted to ¥9,338 million at the end of the first quarter of the current year.
(Cash flows from operating activities)
Operating activities during the first quarter of the current year resulted in a net decrease in cash of ¥3,730 million,
due primarily to a decrease in notes and accounts payable—trade and to income taxes paid, despite a decrease innotes and accounts receivable—trade.
(Cash flows from investing activities)
Investing activities during the first quarter of the current year resulted in a net decrease in cash of ¥4,846 million,
due primarily to purchases of tangible fixed assets.
(Cash flows from financing activities)
Financing activities during the first quarter of the current year resulted in a net increase in cash of ¥5,093 million,
due primarily to an increase in short-term borrowings and proceeds from issuance of corporate bonds.

6

3. Qualitative Information on Projections for the Consolidated Business Results
The Company and the individual companies that comprise the Group have generally made almost as good progress as
expected in the business performance projections for the current fiscal year that the Company disclosed on May 14,
2008. Accordingly the consolidated business performance projections for the first half and the full year ending March
31, 2009 remain unchanged.
The Group has initiated its five-year medium-term management plan, commencing with the current year, which isdesigned to achieve the vision of what the Group should be ten years hence and to ensure its sustainable growth.
This medium-term management plan identifies the Group’s basic policy for growth as comprising “the provision ofmerchandise that contribute to expanding and enhancing the size and soundness of the pachinko/pachislot market” and“the exploration, development and utilization of quality content.” This underlies the Group’s ongoing strategic andaggressive development and expansion of business possibilities in the specific segments where the Group operates.
During the second quarter of the current year, in the pachinko/pachislot machine sales business the Group already plansto release CR Seven Samurai, its additional innovative pachinko machine title, and Neon Genesis Evangelion—That time
has come, now they’re waiting for us, of the hugely popular pachislot machine series.
CR Seven Samurai, the Group’s first additional innovative title, is an achievement in creating and realizing a new video
entertainment possibility. This experiment is unprecedented because it has re-filmed the immortal cinematic
masterpiece, The Seven Samurai by director Akira Kurosawa, all on location, to create content exclusively for use inpachinko machines. This is a machine title planned and developed for full enjoyment of not only pachinko fans, but alsoa wider spectrum of people eager for a totally new entertainment experience. The product has received great criticalacclaim from the market, for which the Company has begun taking orders, scheduled for shipment in August.
Likewise, during the second quarter of the current year, in the pachislot machine sales business the Company has started
marketing Neon Genesis Evangelion—That time has come, now they’re waiting for us, the newest edition of the Neo
Genesis Evangelion pachislot machine series, the shipment of which is scheduled for September. The previous edition,
Neon Genesis Evangelion—‘Magokoro wo Kimini’ (which debuted in July 2007 and sold a total of approximately
100,000 machines), has proven itself by capturing the interest of many fans and contributing to an extended period ofservice for the benefit of pachinko halls. The newest edition, Neon Genesis Evangelion—That time has come, now
they’re waiting for us, has already created much resonance in the marketplace.
Meanwhile, the introduction of CR Virtua Fighter, originally scheduled during the second quarter of the current year, hasbeen postponed following the detection of a defect in the liquid crystal reported by the manufacturer. The Company has
acted quickly to arrange for an additional shipment of CRA Morning Musume by way of a stopgap as well as for arescheduled introduction of that product during the third quarter of the current year at the earliest.
The Group companies are committed to their business plans that are designed to culminate in and after the third quarterof the current year. The Company seeks to enhance synergies across the Group in order to aid the individual companies
in achieving stronger revenues and earnings.

7

4. Other(1) Transfer of important subsidiaries during the period under review (Transfer of specific subsidiaries that results in achange in the scope of consolidation)
None(2) Adoption of simplified accounting methods and special accounting methods applicable to preparation of quarterly
consolidated financial statements
1) Method for estimation of general loan losses
Because it was observed at the end of the first quarter of the current year that no significant change has occurredin the Company’s historical loan loss ratio, etc. since the end of the previous year, the Company determines anestimate of loan losses by employing the historical loan loss and other ratios computed at the end of the previous
year.
2) Method for valuation of inventories
For the purpose of valuing inventories at the end of the first quarter of the current year, the Company dispenses
with physical inventorying and applies a reasonable valuation method on the basis of the value of inventories
physically verified at the end of the previous year.
For reducing the book value of inventories, the Company applies the method that estimates the net selling price of
inventories only where a clear decline is observed in their profitability and reduces their book value accordingly.
3) Method for determination of income and other taxes and of deferred tax assets and deferred tax liabilities
For determining income and other tax assessments payable, the Company applies the method that limits additionand subtraction items that must be factored in and tax exemption items only to those that are significant.
For evaluating deferred tax assets for recoverability, because it has been observed that no significant change has
occurred in the Company’s business environment and other conditions or the occurrence of temporary and other
differences since the end of the previous year, the Company applies the method that employs the same futurebusiness performance projections and tax planning that were used at the end of the previous year.
4) Assessment of tax expenses
The Company applies the method that reasonably estimates an effective tax rate to be assessed on income before
income taxes for the current year after accounting for the tax effects of temporary differences and multiplies
income before income taxes during the first quarter of the current year by such estimated effective tax rate.
(3) Changes in accounting principles, accounting procedures, presentation method, etc. in association with the
preparation of quarterly consolidated financial statements
1) The Company has adopted the Accounting Standard for Quarterly Financial Reporting and its Implementation
Guidance (ASBJ Statement No. 12, issued by the Accounting Standards Board of Japan on March 14, 2007) and
the Guidance on Accounting Standard for Quarterly Financial Reporting (ASBJ Guidance No. 14, issued by the
Accounting Standards Board of Japan on March 14, 2007) starting from the first quarter of the current year. The
Company has also prepared quarterly consolidated financial statements in accordance with the Regulations on
Quarterly Financial Reporting.
2) Adoption of accounting standards pertaining to valuation of inventories
Effective with the first quarter of the current year, the Company adopts the Accounting Standard for Valuation of
Inventories (ASBJ Statement No. 9, issued by the Accounting Standards Board of Japan on July 5, 2006) andchanges its valuation policy from the cost method to a cost basis (which reduces the book value of assets whose
profitability is diminished). This change has no effect on income.

83) Adoption of tentative treatments applicable to accounting for foreign subsidiaries in preparation of consolidated
financial statements
Effective with the first quarter of the current year, the Company adopts the Practical Solution on Unification of
Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements (ASBJ PITF No. 18,
issued by the Accounting Standards Board of Japan on May 17, 2006) and performs required reconciliations in
the consolidation accounting process. This application has no effect on income.
4) Adoption of accounting and other standards pertaining to lease transactions
The Company adopts the Accounting Standard for Lease Transactions (ASBJ Statement No. 13, issued by the
Accounting Standards Board of Japan on June 17, 1993 and last revised on March 30, 2007) and the
Implementation Guidance for Accounting Standard for Lease Transactions (ASBJ Guidance No. 16, issued by the
Accounting Standards Board of Japan on January 18, 1994 and last revised on March 30, 2007) early, effectivewith the first quarter of the current year. In respect of finance lease transactions other than those where ownershipis transferred, the Company changes accounting methods from the method that applies to ordinary leasetransactions to the method that applies to ordinary buying and selling transactions, and includes the assets
involved in lease assets.
The Company depreciates the cost of lease assets by applying the method that assumes the lease period to be theuseful life and the residual value to be zero.
With regard to non-ownership-transferred finance lease transactions whose effective date precedes thecommencement of the initial fiscal year that the standard is adopted, the Company continues to apply the methodthat it uses to account for ordinary lease transactions. This has no effect on income.

95. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
End of first quarter of current
year(June 30, 2008)
AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable—trade
Inventories
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets
Investment securities
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total Assets
Liabilities
Current liabilities
Notes and accounts payable—trade
Short-term borrowings
Corporate bonds redeemable within 1 year
Current portion of long-term borrowings
Accrued income taxes
Accrued bonuses
Accrued bonuses to directors and auditors
Allowance for losses on order receiving
Other current liabilities
Total current liabilities
Fixed liabilities
Corporate bonds
Long-term borrowings
Retirement benefit provisions
Other fixed liabilities
Total fixed liabilities
Total Liabilities

10(Unit: Million yen)
Condensed consolidated balance
sheet at end of previous year
(March 31, 2008)

9,495
5,713
4,048
10,843(62)
30,038

12,841
12,354
4,013
10,442(92)
39,55911,833

8,093

1,060
2,848
3,908

1,057
2,880
3,937

14,3694,462(339)
18,492
34,23464,272

13,212
4,721(355)
17,57829,60969,168

1,910
6,497
720
800
244
18
62
41
4,904
15,200

5,954
3,398
120
804
3,743
174
128
49
4,948
19,322

2,650
234
217
2,578
5,680
20,881

250
434
211
2,618
3,514
22,836

End of first quarter of current
year(June 30, 2008)
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Valuation and translation differences
Unrealized holding gain on available-forsale securities
Foreign currency translation adjustment
Total valuation and translation differences
Stock acquisition rights
Minority interest
Total net assets
Total Liabilities and Net Assets

11(Unit: Million yen)
Condensed consolidated balance
sheet at end of previous year
(March 31, 2008)

7,948
7,994
25,695
41,638

7,948
7,994
28,852
44,795

334

(249)

(41)
292
53
1,406
43,39164,272

(59)
(309)
43
1,802
46,331
69,168

(2) Quarterly Consolidated Statement of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Foreign exchange gain
OthersTotal non-operating income
Non-operating expenses
Interest expense
Corporate bond issuance expenses
Equity method investment loss
Amortization of equity investment
OthersTotal non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on investment in anonymous
association(Unit: Million yen)First quarter of current year
(April 1, 2008–June 30, 2008)
7,321
5,206
2,114
5,426
(3,312)
12
8
252
111
384
29
51
71
67
14
234
(3,161)48
45
095

Reversal of allowance for doubtful accounts

OthersTotal extraordinary income
Extraordinary losses
Loss on sale of fixed assets
Loss due to disaster
OthersTotal extraordinary losses
Income (loss) before income taxes andminority interest
Current income taxes
Minority interest
Net income (loss)

0
99
7
107
(3,174)(501)(383)(2,289)12

(3) Quarterly Consolidated Statement of Cash Flows(Unit: Million yen)First quarter of current year
(April 1, 2008–June 30, 2008)
Cash flows from operating activities
Income (loss) before income taxes and minority interest
Depreciation and amortization
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
Decrease (increase) in notes and accounts receivable—trade
Decrease (increase) in inventories
Decrease (increase) in merchandising right advances
Increase (decrease) in notes and accounts payable—trade
Increase (decrease) in accrued consumption taxes
Others
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of tangible fixed assets
Purchases of intangible fixed assets
Purchases of investment securities
Expenditure for equity investment
OthersNet cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of long-term borrowings
Proceeds from issuance of corporate bonds
Cash dividends paid
Cash dividends paid to minority shareholders
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 beginning of period
Cash and cash equivalents at end of period

13(3,174)
418
74
(45)
(156)
(65)
6
(20)
(21)
71
29
7,015
(11)
170
(3,965)
(369)
72
28
31
(21)
(3,768)(3,730)(4,409)
(140)
(166)
(39)
(90)
(4,846)
3,099
(203)
2,948
(727)
(22)
0
5,093
127
(3,355)
12,6939,338

Explanatory note
The Company has adopted the Accounting Standard for Quarterly Financial Reporting and its Implementation Guidance(ASBJ Statement No. 12) and the Guidance on Accounting Standard for Quarterly Financial Reporting (ASBJ GuidanceNo. 14) starting from the current fiscal year. The Company has also prepared quarterly consolidated financial statementsin accordance with the Regulations on Quarterly Financial Reporting.
(4) Note Regarding the Operation of the Company as a Going Concern
First quarter of current year (April 1, 2008–June 30, 2008)
No relevant items(5) Segment Information[Segment information by business category]First quarter of current year (April 1, 2008–June 30, 2008)

Net Sales(1) Sales to third parties(2) Inter-group sales ortransfers
Total
Operating income (loss)(Notes)Elimination or
Consolidated
incorporation(Millions of(Millions of
yen)
yen)

PS Field(Millions ofyen)Game Field(Millions ofyen)Sports Field(Millions ofyen)Movies Field(Millions ofyen)

Other Field(Millions of
yen)

Total
(Millions of
yen)

4,052

1,904

946

26

391

7,321

—

7,321

145

0

15

—

3

163

(163)

—

4,197

1,904

961

26

394

7,485

(163)

7,321

(1,562)(1,112)

(169)

(488)

65

(3,267)(44)(3,312)

1. Based on the proximity of products or services, etc. provided, the Company’s businesses are segmented
into PS Field, Game Field, Sports Field, Movies Field and Other Field.
2. The major products or services in each segment are as follows:(1) PS Field: Purchasing, sales, planning and development of pachinko/pachislot machines and related
services(2) Game Field: Planning, development, sales, etc. of packaged software, such as game software(3) Sports Field: Sports management and related activities(4) Movies Field: Movie production, digital content creation and copyright acquisition(5) Other Field: Planning, production, etc. of animation
3. Resegmentation of operations
In previous years, the sports management business and the movie business have been included in the
Other Field segment. Because these businesses are now significant in value, the Company resegmented
its operations to separate and disclose these businesses in segments called the Sports Field and Movies
Field, respectively, effective with the first quarter of the current year.
This has no impact on segment information.

14

[Segment information by region]
First quarter of current year (April 1, 2008–June 30, 2008)
Japan
Other Regions(Millions of yen) (Millions of yen)
Net Sales(1) Sales to third parties(2) Inter-group sales ortransfers
Total
Operating income (loss)(Notes)

Total(Millions ofyen)

Elimination orincorporation(Millions ofyen)Consolidated(Millions of
yen)

6,523
233

798
157

7,321
391

—
(391)

7,321
—

6,757

955

7,712

(391)

7,321

(2,347)(845)(3,193)(119)(3,312)

1. Countries or regions are segmented according to their geographic proximity.
2. The major countries or regions grouped into the Other Regions segment: North America, Europe andothers3. Resegmentation of operations
In previous years, segment information by region has been omitted, since Japan has accounted for morethan 90% of total net sales across all segments. Because that proportion is now less than 90%, effectivewith the first quarter of the current year, the Company resegmented its operations into separate
geographic segments called Japan and Other Regions.

[Overseas sales]First quarter of current year (April 1, 2008–June 30, 2008)
Other Regions
I

Overseas sales (millions of yen)

Total

853

853

II Consolidated net sales (millions of
—
7,321
yen)
III Overseas sales as a percentage of
11.7
11.7
consolidated net sales (%)(Notes) 1. Countries or regions are segmented according to their geographic proximity.
2. Because no one of the individual countries or regions outside Japan in which the Group operates
accounts for a significant amount of consolidated net sales, they are combined for disclosure purposes
into Other Regions.
3. The major countries or regions grouped into the Other Regions segment: North America, Europe andothers
4. Overseas sales comprise the sales that the Company and its consolidated subsidiaries generate incountries or regions outside Japan.
5. Resegmentation of operations
In previous years, information on overseas sales has been omitted, since they have accounted for lessthan 10% of consolidated net sales. Because that proportion is now more than 10%, effective with thefirst quarter of the current year, the Company resegmented its operations to separate and disclose
overseas sales in a segment called Other Regions.
(6) Note Regarding Occurrence of Significant Change in Amount of Shareholders’ Equity
First quarter of current year (April 1, 2008–June 30, 2008)
No relevant items

6. Other Information
There is no information that requires particular description.

15