Financial Presentation
for the Q3 of the Year Ending March 31, 2019

February 8, 2019
FIELDS CORPORATION
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FIELDS CORPORATION All rights reserved.

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Consolidated P/L(summary)(Unit: Billions of yen)
FY3/2019
FY3/2018
YoY change

Q1-Q3

Full-year

Q1

Q2

Q3

Full-year(plan)

Q1-Q3

45.26

61.05

8.93

9.11

19.57

37.61

(7.65)

95.00

Gross profit

10.71

13.40

1.42

2.43

6.32

10.17

(0.54)

17.00

SG&A expenses

14.33

19.13

4.15

3.60

3.67

11.43

(2.89)

15.00

Operating profit (loss)(3.61)(5.73)(2.73)(1.17)

2.64(1.26)

2.35

2.00

Ordinary profit (loss)(3.85)(5.20)(2.75)(1.30)

2.74(1.31)

2.54

2.50

Profit (loss)
attributable toowners of parent(4.13)(7.69)(2.95)(0.29)

3.23(0.01)

4.11

1.50

Net sales* The figures have been rounded down to the nearest million.
FY3/2019 Q3

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Change in SG&A expenses
SG&A decreased 2.8 billion yen compared to same period of last fiscal year
by cutting costs through efficient managementPersonnel expenses

Advertising expenses
24.06

Business consignment expenses

Depreciation

Other（Unit: Billions of yen）

23.01
-1.0

18.09

8.23

17.43

-3.8

8.03

- 0.6

5.94
3.14
1.82
1.15
6.04
Q3
FY3/2016

4.11
2.37
1.54
7.81
Full-year
FY3/2016

5.94
3.17
1.64
0.91
5.77
Q3
FY3/2017

19.13

-3.1

3.90
2.23
1.22
7.63
Full-year
FY3/2017

14.33
5.50
1.55
1.44
0.79
5.05
Q3
FY3/2018

15.00

7.31
2.05
1.85
1.06

-2.9

6.86
Full-year
FY3/2018

11.43
4.82
0.73
0.85
0.574.46
Q3
FY3/2019

Full-year
FY3/2019E(Unit: People)(Reference: number of employee)Consolidated

1,830

1,845

1,751

1,713

1,552

1,514

1,361

Nonconsolidated

854

835

806

784

724728555* “Other” is calculated on this sheet above. The figures have been rounded down to the nearest million.

FY3/2019 Q3

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Consolidated B/S (summary)(Unit: Billions of yen)
End of Mar. 2018

End of Dec. 2018

ChangeMain factors for increase/decrease

Current assets

42.17

47.03

4.86 Increase in cash and deposits(Cash and deposits)

24.47

27.13

2.66

Property, plant andequipment

5.27

5.10(0.17)

Intangible assets

1.38

3.28

1.89 Increase in goodwill

Investments and otherassets

23.49

10.94

(12.54) Decrease in sales of investment securities

72.33

66.37

(5.95)

Current liabilities

22.48

19.01

(3.46) Decrease in notes and accounts payable-tradeNon-current liabilities

14.34

12.10(2.23) Decrease in long-term loans payable

Net assets

35.50

35.25(0.25)

72.33

66.37

(5.95)

Total assets

Total liabilities andnet assets

Increase in inventories

Decrease in long-term loans receivable* The figures have been rounded down to the nearest million.
FY3/2019 Q3

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Consolidated Cash flow (summary)(Unit: Billions of yen)
FY3/2018
Q1-Q3

Cash flows
from operating activities

Cash flows
from investing activities

FY3/2019
Full-year(2.53)

3.34

Factors

Q1-Q3(1.09)

4.39(0.38)

3.85

Cash flows
from financing activities(1.00)(2.02)(0.81)Net increase (decrease) incash and cash equivalents(0.18)

1.28

2.66

Cash and cash equivalents
at beginning of period

23.09

23.09

24.37

Cash and cash equivalents
at end of period

22.90

24.37

27.03

* The figures have been rounded down to the nearest million.
FY3/2019 Q3

Profit before income taxes
Decrease in notes and accounts payable-trade
Loss on sales of shares of subsidiaries and associates
Decrease in notes and accounts receivable-trade
Depreciation
Decrease in accounts receivable–other
Amortization of equity investment
Increase in accrued consumption taxes+0.16(4.41)(1.34)+1.34+0.84
+0.74
+0.69
+0.53

Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Proceeds from sales of shares of subsidiaries andassociates
Proceeds from sales of investment securities+2.81

Increase in short-term loans payable
Repayments of long-term loans payable+1.30(1.93)

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+1.80
+0.52

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PS distribution unit

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Business results for the H1, FY3/2019 (review)●PS market environment
Amendment of the Regulation for Enforcement of the Amusement
Businesses Law revised/enforced for the first time in 14 years (Feb. 1, 2018)➡ Expectation for market revitalization by introduction of new-regulation machines
Internal regulation (pachinko) partly changed (Oct. 1, 2018)●FIELDS’ PS business
Remade PS machines for adaptation for new regulation
Mainly sold old regulation/later remodeled machines➡ Pachinko unit sales: 33,000 units + Pachislot units sales: 10,000 units= 43,000 units in total（down 56,000 units YoY）
Operating loss
Q1 (¥-2.7 billion) ＋ Q2 (¥-1.1 billion)＝¥-3.9 billion
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Overview of Q3(Oct.－Dec.)●Sold mainly new-regulation machines in sales of new machines
Sales of new-regulation machines including main-title machines
Pachinko 2 titles 37,000 units
Pachislot 3 titles 9,000 units＝ Total 47,000 units（YoY 47,000 units）
Pachinko
Onimusha: Dawn of Dreams
Super Souken

Pachislot
LORD of VERMILION Re:●Started a full-scale distribution unit functions by promoting new business
Secure and expand new revenue base though new business●Cost reduction measures through transition to four units system(Promotion of various management measures)➡ Operating loss ＋¥2.6 billion©CAPCOM CO., LTD. ALL RIGHTS RESERVED．©OK!! Manufactured by KYORAKU SANGYO©2007-2018 SQUARE ENIX CO., LTD. All Rights Reserved. ©NANASHOW

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Pachinko/pachislot sales market trends
Pachinko/pachislot sales were both down in 2018
From 2019, an upward trend is forecast toward complete transition to new-regulation machines
2018 (Jan.–Dec.)
Pachinko/pachislot unit sales: 1,800 thousands of units(down 360 thousands of unitsYoY)(Unit: thousands of unit)

180

170
150

140

Machine withsettings featuredebut(pachinko)

200
160

150

120

120

Regulation
6.0 machine
debut(pachislot)

130
120

Factors that will lead to an upward trend
・Partial changes ofpachinko internal regulations
・Decrease in share of machines

100with strong gambling elements

Pachinko sales unit

・Removal of machines approved/certified under old regulations

Pachislot sales unit
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

FY2019/FY2020*Source: FIELDS/ number of units are rounded down to the nearest 10,000.

FY3/2019 Q3

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179

FY3/2019 Q3

Oct.-Dec.
Jan.-Mar.
Machines with strong
gambling elements have 5% share

Apr.-Jun.

Olympics

Jul.-Sep.

Certification deadline
for mainstay regulation 5machines (pachislot)*Source: FIELDS

Copyright 2019

Oct.-Dec.
Jan.

Complete removalof regulation 5 machines

Jul.-Sep.

Sequential removalof regulation 5 machines

2019

Tokyo

Rugby WC

Apr.-Jun.

Voluntary restraint(tentative)

Voluntary restraint(tentative)

New machine replacement
factorJan.-Mar.

G20 Summitreplacement (assumed)

Voluntary Restraint inPachinko/pachislot sales market trends
Multiple occurrences of replacements
2020
2021

Completetransition tonew regulation
machines

New markets

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Main PS product lineup Q1-Q4
Pachinko
Old regulation

Q1
Old regulation

Q2
Old regulation
New regulation

Q3

Pachislot

CR INUYASHA JUDGEMENT∞(infinity)
CR Drum ☆ EVANGELION PINK

Regulation 5.9

PACHISLOT Tengen Toppa Gurren Lagann -KIWAME-Regulation 5.9

Pachislo OkamiRegulation 5.9＋4 later-remodeled machines

Regulation 5.9

CR ULTIMATE JUDGEMENT
Pachinko Onimusha:
Dawn of Dreams Super SoukenRegulation 5.9

Pachinko GEKIJOUREIMode Pachinko EVANGELION –Super awakening–
EVANGELION –Super berserk–Regulation 5.9

Regulation 5.9

Regulation 5.9
Regulation 6.0

STREET FIGHTER V PACHISLOT EDITION
Pachislot Hananchu
PACHISLOT ROCKMAN Ability
Resident Evil INTO THE PANIC
Pachislot Mach GoGoGo
Pachislot LORD of VERMILION Re:

Now on saleNew regulation
New regulation
New regulation

Q4Regulation 6.0

Pachislot Sengoku BASARA HEROES PARTY
Pachislot Evangelion AT777＋α, a few titles＋2 later-remodeled machines

Sold two specs©CAPCOM CO., LTD. ALL RIGHTS RESERVED. ©OK!! Manufactured by KYORAKU SANGYO ©2007-2018 SQUARE ENIX CO., LTD. All Rights Reserved. ©NANASHOW ©khara

FY3/2019 Q3

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New business fields

2●Promoting the sale of smoking booths in Q3
toward complete ban on smoking in 2020
EC business・Improvement of distribution base for development of used machine distribution service
・Promotion of merchandising sales that contributes to hall management
Hall data management systemSound
distribution
business

Hall facilities

Land utilization items

Promotional prizes●Responding to all types of replacement operation workin addition to installation/inspection work
・Launch of incidental services:⇒ Handling the halls’ operation at the time of grand opening, renewals, etc.

Mobile/targeting ads●Optimization of halls’ SG&A expenses by measuring
the effect of advertising
・Number of contracted halls: 800 or more (1,500 units)
・Promote service expansion andexpansion of the number of halls where introduced

FY3/2019 Q3

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New business fields

Convey accurate information, leaving nothing out
when it comes to selecting the best modelfor each pachinko hall

Pachinko Pachislot Information Station

FY3/2019 Q3

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Strengthen distribution function

Dec. 2017 –Oct. 2018 –Addition of eight showrooms
Total 34 bases nationwide

Facilities

Newbusinessservices■Improving distribution base for amended regulations

Jan. 2019 –Tokyo regional/branch officerelocated to andintegrated head office

Established a showroom
in head office (Shibuya)■Strengthening collaboration with head office■Developing all products efficiently■ EC business

Construction of used machine
distribution platform

Sales of smoking booths etc.

■Sound distribution business

Expansion of consigned
manufacturers

Expansion of incidental services■Mobile targeting ads

Expansion of contracted halls
and introduced halls
Preparation forNews releaseinfrastructure construction
services■Pachinko Pachislot Information
StationCopyright 2019

Expansion of services
Service to be commenced
from April 2019

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IP&MD/Video production unit
IP&MD unit

Video production unit

●Development of IP brand strategy
Strive to promote mid- to long-term growth planwith global perspective●Collaboration with PS development unit
●Focus on IP planning/development
and consigned video work

Topics

TopicsAnime SSSS.GRIDMAN

Anime The Magnificent KOTOBUKI

Anime ULTRAMAN

FY3/2019 Q3

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FIELDS CORPORATION All rights reserved. 15

Disclaimer

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

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