Summary(Translation)

FIELDS CORPORATION
Summary of Financial Information and Consolidated Business Results
for the Nine Months Ended December 31, 2018 (Year Ending March 31, 2019) [Japan GAAP]
February 7, 2019
Listed on: TSE 1st
Company Name:

FIELDS CORPORATION(URL: https://www.fields.biz/ir/e/)
2767
Hidetoshi Yamamoto
Chairman, President and Group CEO
Hideaki Hatanaka
Corporate Officer+81-3-5784-2111

Stock code:
Representative Director:
Inquiries:
Tel:

Planned date for submission of the quarterly report:
Planned date for start of dividend payment:
Quarterly earnings supplementary explanatory materials:
Quarterly earnings presentation:

February 13, 2019―No
Yes (for institutional investors and security analysts)(Rounded down to the nearest million)

1. Consolidated business results for the nine months ended December 31, 2018 (April 1, 2018 to December 31, 2018)(Percentage figures denote YoY changes)(1) Operating results (cumulative total)
Net sales

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

37,615(16.9)(1,261)－(1,314)

－

(14)

－

45,266

6.2(3,612)－(3,858)－(4,133)－Nine months ended
December 31, 2018
Nine months ended
December 31, 2017
(Note) Comprehensive income

Operating profit

Nine months ended December 31, 2018: ¥ (90) million (―%)
Nine months ended December 31, 2017: ¥ (3,814) million (―%)

Profit per share
Nine months ended
December 31, 2018
Nine months ended
December 31, 2017

Diluted profit per share
Yen

Yen

(0.42)－(124.55)－(2) Financial position
Total assets

Net assets

Shareholders’ equity ratio

Millions of yen

Millions of yen%

Nine months ended
December 31, 2018

66,37635,253

52.4

Year ended March 31, 201872,33635,50948.4(Reference) Shareholders’ equity

Nine months ended December 31, 2018: ¥ 34,751 million
Year ended March 31, 2018: ¥ 35,008 million(Note) The Company has applied Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28, February 16, 2018) and other standards
from the beginning of the first quarter of FY3/2019. Regarding the figures of FY 3/2018, the Company has applied the accounting standard and modified the figures
retroactively.

2. Dividends
Q1-endAnnual dividends
Q3-endQ2-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

―
―

25.00
0.00

―

5.00

30.00

10.00

10.00

Year ended March 31, 2018Year ending March 31, 2019Year ending March 31, 2019
(Forecast)(Note) Revision of the most recently released dividend forecast: No

3. Forecast of consolidated earnings for the fiscal year ending March 31, 2019 (April 1, 2018 to March 31, 2019)
Net sales
Full-year

Operating profit(Percentage figures denote YoY changes)
Profit attributable toProfitper shareowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

95,000

55.6

2,000

―

2,500

―

1,500

―

45.20

(Note) Revision of the most recently released performance forecast: No
FIELDS CORPORATION discloses a full-year business forecast, as it manages its business performance on an annual basis.

1

*Notes(1) Transfer of important subsidiaries during the year under review (transfer of specific subsidiaries that results in a change in thescope of consolidation): Yes
New consolidation: one company (Company name) NANASHOW Corporation(2) Application of the accounting method specific to quarterly consolidated financial statements: Yes(3) Changes in accounting policies, accounting esimates, and revisions/restatements
1) Changes due to the revision to the accounting standards, etc.: No
2) Changes due to any reason other than those in 1) above: No
3) Changes in accounting estimates: No4) Revisions/restatements: No(4) Number of shares issued (common shares)
1) Number of shares issued at end of year (including treasury shares)
Nine months ended December 31, 201834,700,000 sharesYear ended March 31, 201834,700,000 shares
2) Number of treasury shares at end of year
Nine months ended December 31, 2018
1,516,300 sharesYear ended March 31, 2018
1,516,300 shares
3) Average number of shares outstanding (quarterly consolidated cumulative period)
Nine months ended December 31, 201833,183,700 shares
Nine months ended December 31, 201733,183,700 shares* This quarterly earnings report is not the subject of quarterly review by certified public accountants or audit corporations.
* Explanation of the appropriate usage of forecast earnings and other specific matters# The above forecast relies on judgements 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. Please refer to “(1) Analysis of operating results and forecasts for consolidated earnings”
under “1. Qualitative information on the quarterly financial results” on page 2 of the attached documents for the assumptions on
which the forecast relies.
# The Company is planning to hold a briefing for analysts and institutional investors on Friday, February 8, 2019.
Materials distributed at that briefing will be posted on the Company website after the briefing.

Summary of Financial Information and Business Results for the the Nine Months Ended December 31, 2018

Table of contents of attached document
1. Qualitative information on the quarterly financial results·················································································· 2(1) Analysis of operating results and consolidated earnings forecasts···································································· 2(2) Analysis of financial position ·············································································································· 3
2. Quarterly consolidated balance sheets and important notes ··············································································· 4(1) Quarterly consolidated balance sheets ···································································································· 4(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income·························· 6(3) Quarterly consolidated statements of cash flows ························································································ 8(4) Note regarding the quarterly consolidated financial statements ······································································· 9(Note regarding the operation of the company as a going concern) ··································································· 9(Note regarding occurrence of significant change in amount of shareholders’ equity) ············································· 9(Application of the accounting method specific to quarterly consolidated financial statements)·································· 9(Additional information) ····················································································································· 91Summary of Financial Information and Consolidated Business Results for the the Nine Months Ended December 31, 2018

1. Qualitative information on the quarterly financial results(1) Analysis of operating results and consolidated earnings forecastsi.) Overview of operations for the nine months ended December 31, 2018 (April 1, 2018 to December 31, 2018)
In the pachinko and pachislot (hereinafter, “PS”) industry, the Amendment of the Regulation for Enforcement of theAmusement Businesses Law* (hereinafter, Amusement Business Law) was enforced on February 1, 2018. Manufacturers areworking proactively to develop PS machines based on the new regulations (hereinafter, “new-regulation machines”). In
pachinko halls and among PS fans, consumers are anticipating the advent of a new form of popular entertainment—pachinko
games that feature a variety of game functions thanks to the introduction of new-regulation machines and that can be enjoyedwith peace of mind while limiting spending to an appropriate amount.
Against this backdrop, new-regulation pachinko machines were launched in August 2018, followed by pachislot machines in
October. These new-regulation machines have earned a certain level of approval, but partly because the market is currently in atransition period, the number of machines passing the model certification test has been low. Consequently, the number ofmachines that have been launched has fallen short of market expectations, and market penetration will take time.

During the fiscal year under review, the FIELDS CORPORATION Group is taking the initiative in promoting large-scale
management reforms. We are transitioning to a management structure under which businesses are managed by four companies(each company represents one business unit). Under the new structure, we aim to leverage the individual strengths of eachbusiness unit and foster synergies among them, achieving steady profitability increases. Under the new structure, distributionof PS machines will be concentrated on the Company, acting as the PS distribution unit. This move is aimed at improving theearnings structure. At the same time, we are stepping up a host of cost-reduction measures in our effort to optimize operating
expenditures.

Given the market situation, we positioned the first half of the fiscal year (April to September) as a time for the PS distribution
unit, which spearheads the FIELDS CORPORATION Group, to focus mainly on remodeling PS machines to be compliant with
the new regulations. The Company also focused on the sale of old-regulation and later-remodeled machines, selling a total of
43,000 units. These efforts were the main reason for the consolidated operating loss of about ¥3.9 billion in the first half of the
fiscal year.
In the third quarter (October to December), sales totaled 47,000 units, as we concentrated on sales of new main-title
machines, including remodeled new-regulation machines. As a result of these business activities, consolidated operating profit
during the third quarter (October to December) was about ¥2.6 billion. In a return to profitability, consolidated ordinary profit
amounted to about ¥2.7 billion.

Consolidated operating performance for the first nine months included net sales of ¥37,615 million (-16.9% YoY), an
operating loss of ¥1,261 million (a YoY improvement of ¥2,350 million), and an ordinary loss of ¥1,314 million (a YoY
improvement of ¥2,543 million). Loss attributable to owners of parent came to ¥14 million (a YoY improvement of ¥4,119
million) due to the booking of extraordinary income of ¥748 million in gain on step acquisitions in the third quarter (October toDecember) accompanying the consolidation of NANASHOW Corporation as a subsidiary.

ii.) Explanation of consolidated earnings forecasts
The Company made no revisions to the consolidated earnings forecasts for the fiscal year ending March 31, 2019 disclosed
on May 11, 2018, when it announced “Summary of Financial Information and Business Results for the Year Ended March 31,2018 (Consolidated).” Expected progress in the fourth quarter of the fiscal year under review (January to March 2019) is asfollows.
The PS distribution unit currently sells two pachinko and two pachislot titles. We expect to begin selling one additionalpachinko title and one pachislot title. Although the number of units sold will vary according to PS market trends, at present wemaintain our consolidated forecasts for the full fiscal year.
*: Regulation Partially Amending the Ordinance for Enforcement of the Act on Control and Improvement of Amusement Business and the Regulations for the
Verification of Licenses, Formats and Other Aspects of Pachinko and Pachislot Machines, which were enforced on February 1, 2018.

2

Summary of Financial Information and Consolidated Business Results for the the Nine Months Ended December 31, 2018

(2) Analysis of financial position(Assets)
Current assets amounted to ¥47,039 million, up ¥4,863 million from the end of the previous fiscal year. The principal factor
behind this was an increase in cash and deposits, raw materials and supplies, and work in process.
Property, plant and equipment amounted to ¥5,106 million, down ¥173 million from the end of the previous fiscal year. The
principal factor behind this was a decrease in buildings and structures.
Intangible assets amounted to ¥3,284 million, up ¥1,899 million from the end of the previous fiscal year. The principal
factor behind this was an increase in goodwill.
Investments and other assets amounted to ¥10,946 million, down ¥12,548 million from the end of the previous fiscal year.
The principal factor behind this was a decrease in long-term loans receivable.
As a result of the above, total assets amounted to ¥66,376 million, down ¥5,959 million from the end of the previous fiscal
year.
(Liabilities)
Current liabilities amounted to ¥19,014 million, down ¥3,466 million from the end of the previous fiscal year. The principal
factor behind this was a decrease in notes and accounts payable-trade, and short-term loans payable.
Non-current liabilities amounted to ¥12,109 million, down ¥2,237 million from the end of the previous fiscal year. The
principal factor behind this was a decrease in long-term loans payable.
As a result of the above, total liabilities amounted to ¥31,123 million, down ¥5,703 million from the end of the previous
fiscal year.
(Net assets)
Net assets amounted to ¥35,253 million, down ¥256 million from the end of the previous fiscal year. This primarilyreflected a decrease in retained earnings.
(Analysis of cash flows)
During the nine months of the fiscal year under review, cash and cash equivalents (hereinafter referred to as “cash”)
increased by ¥2,661 million from the end of the previous fiscal year, amounting to ¥27,034 million.
(Cash flows from operating activities)
Net cash used in operating activities amounted to ¥380 million (¥2,534 million of expenditure for the same period of theprevious fiscal year). This was mainly due to a profit before income taxes of ¥161 million, a decrease in notes and accounts
payable-trade of ¥4,416 million, a loss on sales of shares of subsidiaries and associates of ¥1,348 million, a decrease in notes
and accounts receivable-trade of ¥1,346 million, a depreciation of ¥841 million, a decrease in accounts receivable-other of¥746 million, an amortization of equity investment of ¥694 million and an increase in accrued consumption taxes of ¥539
million.
(Cash flows from investing activities)
Net cash provided in investing activities amounted to ¥3,855 million (¥3,349 million of revenue for the same period of theprevious fiscal year). This was mainly due to proceeds from purchase of shares of subsidiaries resulting in change in scope of
consolidation of ¥2,818 million and proceeds from sales of shares of subsidiaries and associates of ¥1,800 million andpurchase of non-current assets of ¥764 million.
(Cash flows from financing activities)
Net cash used in financing activities amounted to ¥814 million (¥1,004 million of expenditure for the same period of theprevious fiscal year). This was mainly attributable to repayments of long-term loans payable totaling ¥1,935 million, an
increase in short-term loans payable totaling ¥1,305 million, and cash dividends paid totaling ¥168 million.

3

Summary of Financial Information and Consolidated Business Results for the the Nine Months Ended December 31, 2018

2. Quarterly consolidated balance sheets and important notes(1) Quarterly consolidated balance sheets(Unit: Millions of yen)
Fiscal year ended
March 31, 2018(as of March 31, 2018)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Electronically recorded monetary claims-operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts

Nine months ended
December 31, 2018(as of December 31, 2018)24,473
7,019
1,097
1,206
2,804
83
5,553
(61)

27,134
7,643
1,575
546
4,944
1,955
3,295
(57)

42,17547,039

1,873

1,773

Other

3,406

3,332

Total property, plant and equipment

5,279

5,106

662
723

2,855
428

Total current assets
Non-current assets
Property, plant and equipment
Land

Intangible assets
Goodwill
Other

1,385

3,284

Investments and other assets
Investment securities
Long-term loans receivable
Other
Allowance for doubtful accounts

Total intangible assets

6,773
11,781
5,497
(556)

5,764
1,744
5,269
(1,831)

Total investments and other assets

23,495

10,94630,16019,337

72,336

66,376

11,358
4,151
2,580
171
288
9
6
3,914

6,870
5,456
2,580
57
129
6

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Provision for sales returns
Other

－
3,913

Total current liabilities

22,48019,014Non-current liabilities
Long-term loans payable
Net defined benefit liability
Asset retirement obligation
Other

9,427
660
879
3,378

7,492
646
951
3,018

Total non-current liabilities

14,346

12,10936,827

31,123

Total liabilities

4Summary of Financial Information and Consolidated Business Results for the the Nine Months Ended December 31, 2018

(Unit: Millions of yen)
Fiscal year ended
March 31, 2018(as of March 31, 2018)

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interest
Total net assets
Total liabilities and net assets

5

Nine months ended
December 31, 2018(as of December 31, 2018)

7,948
7,579
20,684

7,948
7,579
20,504

ሺ1,821)

ሺ1,821)

34,391

34,211

669

560

0

0

ሺ53)

ሺ20)

617

539

500

502

35,50935,25372,336

66,376

Summary of Financial Information and Consolidated Business Results for the the Nine Months Ended December 31, 2018

(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income
Quarterly consolidated statements of income
Nine months ended December 31, 2018
(Unit: Millions of yen)
Nine months ended
December 31, 2017

Nine months ended
December 31, 2018

(April 1, 2017–December 31, 2017)(April 1, 2018–December 31, 2018)

Net sales
Cost of sales

45,26634,546

37,61527,439Gross profit

10,71910,175

Selling, general and administrative expenses

14,332

11,437

Operating profit (loss)

ሺ3,612)

ሺ1,261)Non-operating income
Interest income
Dividend income
Purchase discounts
Distributions from investments
Other

86
155
122
165
80

91
152
52
92
93

Total non-operating income

611

482

61

58

527

440

190
77

10
25

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Amortization of equity investment
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries andassociates
Gain on step acquisitions
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Restructuring loss
Loss on litigation
Other
Total extraordinary losses
Profit (loss) before income taxes

857

535

ሺ3,858)

ሺ1,314)

555
－

19
361

－

1,400

－
2

748
9

557

2,538

70
50

41
325
394

－
364
44

111
188

529

1,062

ሺ3,830)161

Income taxes

274

178

Profit (loss)

ሺ4,105)

ሺ16)

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

6

27

ሺ2)

ሺ4,133)

ሺ14)

Summary of Financial Information and Consolidated Business Results for the the Nine Months Ended December 31, 2018

Quarterly consolidated statements of comprehensive income
Nine months ended December 31, 2018
(Unit: Millions of yen)
Nine months ended
December 31, 2017

Nine months ended
December 31, 2018

(April 1, 2017–December 31, 2017)(April 1, 2018–December 31, 2018)

Loss
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

ሺ4,105)

ሺ16)

256
0
33

ሺ106)
ሺ0)
32

290

ሺ73)

Comprehensive income

ሺ3,814)

ሺ90)(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable tonon-controlling interests

ሺ3,843)

ሺ91)

28

1

Total other comprehensive income

7Summary of Financial Information and Consolidated Business Results for the the Nine Months Ended December 31, 2018(3) Quarterly consolidated statements of cash flows(Unit: Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in net defined benefit liability
Interest and dividend income
Share of (profit) loss of entities accounted for using equity
methodInterest expenses
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
Loss (gain) on sales of shares of subsidiaries and associates
Amortization of equity investment
Loss (gain) on step acquisitions
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sales of shares of subsidiaries and associates
Payments of loans receivableCollection of loans receivable
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Nine months ended
December 31, 2017

Nine months ended
December 31, 2018

(April 1, 2017–December 31, 2017)(April 1, 2018–December 31, 2018)

ሺ3,830)
1,025
50
242
58

161
841
325
295
73

ሺ172)
82
59

ሺ183)
ሺ2)
9

ሺ242)

ሺ244)

527

440

61
8,443

58
1,346
383

ሺ1,414)334
ሺ8,935)
－
552

ሺ253)
ሺ4,416)
ሺ1,348)
694

－
1,029

ሺ748)
1,642

ሺ2,125)

ሺ924)

258

252

ሺ61)
ሺ605)

ሺ58)
349

ሺ2,534)

ሺ380)

ሺ661)
5,254

ሺ671)
121

ሺ245)
13

ሺ92)
528

ሺ193)
2,201

－
1,800

ሺ4,400)
1,840

ሺ140)
61

－

2,818

ሺ459)

ሺ570)

3,349

3,855

3,625

1,305

ሺ1,950)ሺ1,654)

ሺ1,935)
ሺ168)

ሺ955)

－

ሺ70)

ሺ16)

ሺ1,004)

ሺ814)

0

0

Net increase (decrease) in cash and cash equivalents

ሺ189)

2,661

Cash and cash equivalents at beginning of period

23,09024,373

Cash and cash equivalents at end of period

22,901

27,0348

Summary of Financial Information and Consolidated Business Results for the the Nine Months Ended December 31, 2018(4) Note regarding the quarterly consolidated financial statements(Note regarding the operation of the company as a going concern)
No relevant items(Note regarding occurrence of significant change in amount of shareholders’ equity)
No relevant items(Application of the accounting method specific to quarterly consolidated financial statements)
Assessment of tax expenses
The Company makes a reasonable estimate of the effective tax rate after the application of tax effect accounting on profit
before income taxes for the year ending March 31, 2019, including the nine months ended December 31, 2018, and calculates
tax expenses by multiplying profit before income taxes during the nine months ended December 31, 2018 by the estimatedeffective tax rate.
(Additional information)
Effective from the beginning of the first quarter of the fiscal year ending March 31, 2019, the Company has applied Partial
Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28, February 16, 2018) and otherstandards. Accordingly deferred tax assets are presented under investments and other assets, deferred tax liabilities arepresented under non-current liabilities.

9