FIELDS CORPORATIONInterim Financial Presentation (Year Ending March 31, 2007)

November 27 (Mon), 2006

THE GREATEST LEISURE FOR ALL PEOPLE

2767:JASDAQ

FIELDS CORPORATION

Copyright 2006
FIELDSCORPORATION All rights reserved.
Statements in these materials concerning plans, strategies, forecasts and other items that are not historical facts, including corporate risks and uncertainties,
cannotbe guaranteed.
Risks and uncertainties include, but are not limited to, economic conditions, the competitive environment and products supplied by Fields, all chiefly involving the company’s corepachinko / pachislot business domain.

1

Contents

1.

Year ending March 2007 Interim Highlights

P. 3

2.

Year ending March 2007 Outlook

P. 14

3.

Market Forecast of Pachislot Machines

P. 21

4.

Appendix I

P. 25

5.

Appendix II

P. 33

Copyright 2006 FIELDS CORPORATION All rights reserved.

2

Year ending March 2007 Interim Highlights

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

3

Year ending March 2007
Interim Operating Results (Consolidated)(Unit : ¥million)
Year ended March 2006
Interim, Actual

Year ending March 2007
Interim, Plan

YOY

Actual to Plan

Interim, Actual

35,74640,64047,122131.8%

115.9%

Gross profit

9,365

12,78014,050150.0%

109.9%

SG & A expenses

7,902

9,630

9,329

118.1%

96.9%

Operating income

1,462

3,150

4,720

322.7%

149.8%

4.1%

7.8%

10.0%

1,806

3,160

4,980

275.7%

157.6%

5.1%

7.8%

10.6%

961

1,270

2,225

231.6%

175.2%

2.7%

3.1%

4.7%

Net sales

Operating income ratio

Ordinary income
Ordinary income ratio

Net income
Net income ratio
Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

4

Year ending March 2007
Interim Operating Results (Non-Consolidated)(Unit : ¥million)
Year ended March 2006
Interim, Actual

Year ending March 2007
Interim, Plan

YOY

Actual to Plan

Interim, Actual

33,077

34,70041,141124.4%

118.6%

Gross profit

8,245

10,97012,351149.8%

112.6%

SG & A expenses

6,538

7,460

7,373

112.8%

98.8%

Operating income

1,706

3,509

4,977

291.6%

141.8%

5.1%

10.1%

12.1%

1,982

3,710

5,284

266.6%

142.4%

6.0%

10.7%

12.8%

1,209

2,040

2,810

232.4%

137.7%

3.7%

5.9%

6.8%

2,000

2,000

2,000

Net sales

Operating income ratio

Ordinary income
Ordinary income ratio

Net income
Net income ratio

Dividend per share ( ¥ )Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

5

Year ending March 2007
Interim Segment Information(Unit : ¥million)

Year ended March 2006

Year ending March 2007

Full year, Actual

Interim, Actual

Composition ratio

Net sales
PS fieldGame field
Other field
Total
Corporate and Elimination
Consolidated

88,3495,052
4,083
97,485(671)
96,814

41,144
3,879
2,398
47,422(300)
47,122

86.8%
8.2%
5.0%
100.0%

12,711277(655)
12,33315
12,348

5,026
(81)
(286)
4,658
62
4,720

107.9%(1.8%)(6.1%)
100.0%

Operating income(loss)
PS fieldGame field
Other field
Total
Corporate and Elimination
Consolidated
Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

6

PS Field

Year ending March 2007 Interim Summary■Pachinko machine sales business－

Unit sales is 123,271, 65% increase YOY－

Bisty brand machines growth make a positive contribution to unit sales increase
Continuous sales of “CR Neon Genesis Evangelion: Second Impact” (approx.36,000 units)“CR Shin Sangoku Musou” (approx.27,000 units)“CR Aya Matsuura”(approx.40,000 units)■ Pachislot machine sales business－

Unit sales is 106,536, 25% increase YOY－

Each sales of three manufacturers (Rodeo, Bisty and Olympia) brand machines is on track－

All-out collaboration with Olympia started with “King of mouse” (approx.30,000 units)－

Sales of “Tomb Raider” ahead of schedule■Main factor of upward revision－

Unit sales of pachinko machine increased approx.20,000 compared to original plan

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

7

PS Field

Unit Sales of Pachinko Machines by Manufacturer（Unit:Machines）

Year ended March 2006
InterimYear ending March 2007

Full year

1Q

2Q

YOY
Interim

Sammy

7,253

52,390

4,610

54

4,664

64.3%

Bisty

59,567

262,806

56,97554,278111,253186.8%

-

-

-

-

-

-

Others7,524

14,465

4,052

3,302

7,354

97.7%

Total

74,344

329,661

65,637

57,634

123,271165.8%

Olympia

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

8

PS Field

Unit Sales of Pachislot Machines by Manufacturer（Unit:Machines）

Year ended March 2006
InterimFull year

Year ending March 2007
1Q

2Q

YOY
Interim52,808159,222

19,760

4,725

24,485

46.4%

Bisty

19,136

22,952

1,688

39,80741,495216.8%

Olympia

5,412

6,570

34,991

1,863

36,854681.0%

Others

7,687

25,916

2,198

1,504

3,702

48.2 %

Total

85,043

214,660

58,63747,899106,536125.3%

Rodeo
ブランド

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

9PS Field

Year ending March 2007
Interim Mainly Sold Pachinko Machine Names
LaunchContinuous sales

Manufacturer

Machine nameBisty

CR Neon Genesis Evangelion:
Second Impact

Sammy

CR Gamera Extreme Battle

Bisty

CR Shin Sangoku Musou

Bisty

CR Otoko Ippiki Gaki Daisho

Bisty

CR Matsuura Aya

Units sold ininterim period（Unit:Machines）(1)

Cumulative
Units sold

36,364

161,217--

27,25827,258--38,32440,675

1Q

2Q

9,341

OthersTotal(1)

123,271

Unit of 10,000 or above is shown
Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

10

PS Field

Year ending March 2007
Interim Mainly Sold Pachislot Machine Names
LaunchContinuous sales

Manufacturer

Machine name

Rodeo

Ore No Sora

Olympia

LOONEY TUNES: BACK IN
ACTION

Olympia

King of mouse

Bisty

Lord of the Rings

Bisty

Tomb Raider

Units sold ininterim period(1)（Unit:Machines）

Cumulative
Units sold24,481

125,566--

30,25330,287--39,61561,018

1Q

2Q

4,201

Others
Total
(1)
(2)

(2)

106,536

Unit of 10,000 or above is shown.
Partial shipment in 2Q is recorded.
Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

11

Game Field

Year ending March 2007 Interim Summary■Good performance of D3 Inc.
－

Sales expansion of high profitable full price products with continuous sales of “SIMPLE Series”－

Good sales of“NARUTO”series substantially exceeded original plan in North America－“NARUTO: CLASH OF NINJA” ( Launched in Feb 2006

231 thousand in interim

Cumulative 346 thousand)“NARUTO: NINJA COUNCIL”(Launched in Feb 2006

109 thousand in interim

Cumulative 188 thousand)“NARUTO: CLASH OF NINJA2” (Launched in Sep 2006

185 thousand in interim

Cumulative 185 thousand)

Good sales of simulator software collaborated with Fields“CR Neon Genesis Evangelion: Second Impact & Pachislot Neon Genesis Evangelion”(Launched in June 2006－

193 thousand in interim

Cumulative 193 thousand)Profit increase owing to cost reduction efforts such as marketing expenses■New consolidation of thinkArts Co., Ltd－

thinkArts Co., Ltd which became 100% subsidiary in Apr 2006 is fully consolidated.

－

Business cooperation is underway to enter into image software development.
Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

12

Other Field

Year ending March 2007 Interim Summary■Japan Sports Marketing, Inc.
－

Profit contribution of rights management such as trading of broadcasting and sponsorship rights
of AFC Asia Cup, A3 Champions CUP and Chinese baseball－Carryover of large rights projects into next terms－

Low performance of “TOTAL Workout” outlets opened later■New consolidation of Fields Pictures corporation－

Start of investment into film, cartoon , and comic book in June 2006－

Investment payback method：
1) Development and commercialization of digital contents through the ownership of business rights ofpachinko, pachislot, game, and mobile2) Dividend from investment committee－

Hedging risks through mixture of two type of projects.
Own type (Fields’original plan driven) and collaboration type (Other firms’ plan driven)
Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

13

Year ending March 2007 Outlook

Copyright 2006 FIELDS CORPORATION All rights reserved.

14

Forecasts for Year ending March 2007 (Consolidated)
Announcement of revisions to the forecasts for the year ending March 2007 on October 30
Year ended
March 2006
Full year, Actual(Unit : ¥million)

Year ending March 2007
Interim, Actual

2H revised plan

YOY

Full year revised
plan

YOY

96,814

47,12262,758102.8%

109,880113.5%

Gross profit

29,737

14,05020,07098.5%

34,120114.7%

SG & A expenses

17,389

9,329

10,631112.1%

19,960114.8%

Operating income

12,348

4,720

9,440

86.7%

14,160114.7%

12.8%

10.0%

15.0%

13,127

4,980

9,170

13.6%

10.6%

14.6%

7,085

2,225

5,255

7.3%

4.7%

8.4%

Net sales

Operating income ratio

Ordinary income
Ordinary income ratio

Net income
Net income ratio

12.9%

81.0%

14,150107.8%

12.9%

85.8%

7,480

105.6%

6.8%

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

15

Forecasts for Year ending March 2007 (Non-Consolidated)
Announcement of revisions to the forecasts for the year ending March 2007 on October 24
Year ended
March 2006
Full year, Actual(Unit : ¥million)

Year ending March 2007
Interim, Actual

2H revised plan

YOY

Full year revised
plan

YOY

88,251

41,141

52,66995.5%

93,810106.3%

Gross profit

26,56812,351

16,48990.0%

28,840108.6%

SG & A expenses

14,071

7,373

7,747

102.8%

15,120107.5%

Operating income

12,497

4,977

8,743

81.0%

13,720109.8%

14.2%

12.1%

16.6%

12,836

5,284

8,736

14.5%

12.8%

16.6%

6,934

2,810

4,800

7.9%

6.8%

9.1%

Net sales

Operating income ratio

Ordinary income
Ordinary income ratio

Net income
Net income ratio

14.6%

80.5%

14,020109.2%

14.9%

83.8%

7,610

109.7%

8.1%

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

16

PS Field

Year ending March 2007 Outlook & Interim Summary■ Pachinko machine sales business－

Series type machine utilizing large merchandising rights is to be sold－“Gold Olympia”machine collaborated with Olympia is to be sold－

Additional machines to the original plan are planned■ Pachislot machine sales business－In preparation for the coming machine replacement demand, sales will be focused on machines
adapted to the new rule in the 2nd half－

Sufficient supply capability of machines adapted to the new rule owing to the cooperation withthree manufacturer

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

17

PS Field

Schedule of Sale of Machine after 3Q

Start of sales

2Q
Machine name

Manufacturer

Delivery

3Q

Sep

Oct

Nov

Sales is recorded

4Q
Dec

Jan

Pachinko machine
8/22

CR WINK

Bisty

CR Salaryman Kintaro

Sammy

CR Sea Cop

Sammy

9/24
9/29

11/5
11/10

12/17

Pachislot machine
8/7

Tomb Raider
ROCKY BALBOA

10/1

Bisty
Bisty

10/26

11/19

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

18

Game Field

Year ending March 2007 Outlook & Interim Summary■D3 Inc. aggressively markets global contents－

Good sales of game software of “Flushed Away” film released in 3,700 screens in USA(580 thousand in USA and 395 thousand in Europe is planed)－

Good sales of “NARUTO” series. Full year sales plan is 886 thousand with another title to be soldin the 2nd half－

Full price title for Xbox360 is to be sold with the acceleration of multi-platform(EARTH DEFENCE FORCES 3, One-Chambara)－

Focus on high profitable mobile business－

Full price software “dark Sector”(under development, to be sold in Autumn 2007) made the cover ofworldwide game magazine ”GAME INFORMER” , sales is expected in next fiscal year.

■thinkArts Co., Ltd－

Order of image software development from Fields (Full-blown profit is expected after next fiscal year)
Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

19

Other Field

Year ending March 2007 Outlook & Interim Summary■Japan Sports Marketing, Inc.
－

Business promotion and expansion of athletes management and rights management－

Program enrichment of “TOTAL Workout” to increase membership and rate of repeat use■Fields Pictures corporation－

Investments in production committee of film and cartoon are planned－

Investment return is expected in earnest after the year ending March 31, 2009

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

20

Market Forecast of Pachislot Machines

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

21

Introduction of “WE LOVE Pachislot Campaign”■Objective－

Boost and activation of pachislot market－

Development and activation of pachislot potential customers－

Conveyance of amusement of new pachislot machines to all potential pachinko participants■Outline－

Title is “WE LOVE Pachislot Campaign” (http://www.fields.biz/tr/)－

Connected with promotion of our pachislot machine－

Large scale open prize contest using various media such as TV, newspaper, magazine, and internet(Application through exclusive use postcard installed at pachinko halls, WEB site, mobile site)－

Weekly fancy presents (high class SUV, TV, accessories, and ticket for K-1 matches・・・)■Period－

To be continuously operated after Oct 2006
(The second version in operation)

Source : Fields＜Special WEB site＞＜Prize contest Scene ＞

Copyright 2006 FIELDS CORPORATION All rights reserved.

22

Influence of Rule Revision in 1995 and 2004 on Machine Approved
16,0 00,0 00

Rule revision“Period of winter-like hardship”(About 1 machine per 1 maker annually)
621 Rule revision

・Submission of spec sheet

14,0 00,0 00

Sufficient machines approvedof pachinko and pachislot
620

・Review of construal standard

・Removal of socially nonconforming

・Change of internal regulations

541

543
501

483

machines
12,0 00,0 00
420

347

# of Pachinko machines approved
285

276
253

10,0 00,0 00

209

197

# of Pachislot machines approved

174
115

8,0 00,0 00

147

204
152

70

48

220

252

50

103
59

6,0 00,0 00

Unit sale of pachinko machines

5,529,069

5,687,950

5,851,719

20

26

4,503,180

4,359,056

4,067,195

4,521,208

4,675,973

4,060,759

4,0 00,0 00

3,373,704

3,133,340-180

Unit sale of pachislot machines
2,0 00,0 00

0

-380

1995
1995
Aggregate # of adapted
machines（# of models）

1996
1996
-

1997
1997
96

218

1998
1998
349

1999
1999
233

2000
2000
413

2001
2001
599

2002
2002

2003
2003

786

874

2004
2004

2005
2005

630

593

Oct 30, 2006
2006.10817

Source : “Trend and market share of Pachinko related makers 2006” Yano Research Institute 、Security Electronics and Communications Technology Association

Copyright 2006 FIELDS CORPORATION All rights reserved.

23

Number of Machines Approved after Rule Revision of Pachislot
Machines in July 2004
Each manufacturer has machines approved and can supply sufficient machines(Unit：Machines)

80

77

Rule revision
69
66

65 65

64
61
58

60
53 52

57

# of pachinko adapted to new standard

54# of pachinko adapted to old rule

51
43

40

49

48

46

46
43

Jul

38

36

48

46
40

46
41

40
36 37

37 36 37 37
33# of pachislot adapted to old rule

21

19
20

14

28

27

26

25

21

# of pachislot adapted to new standard

17
14

13

12 12 12First adaptation to new pachislot rule11

7First adaptation to new palot rule

2

1

1

1

23

16
Pachislot machne adapted to new rule12

May 2005～Oct 2006
Adapted models：326
Sold models ：055
Models to be sold：271(including palot machines)

7

3

0

2004
Jan
1月

Apr
4月

Jul
7月

Sep
10月

2005
Jan
1月

Apr
4月

Jul
7月

Oct
10月

21

19

2006
Jan
1月

Apr
4月

Jul
7月

Oct
10月

Source Security Electronics and Communications Technology Association、Estimation by Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

24Appendix I

Copyright 2006 FIELDS CORPORATION All rights reserved.

25

PS Field - Year ending March 2007 Interim Sold Machine Name
Pachinko Machine Name

Pachislot Machine Name
Machine nameMachine name
■CR Neon Genesis Evangelion: Second Impact
・Evolutionary sequel to “CR Neon Genesis Evangelion”(cumulative sales of
120,000 units), offering an even more dynamic expression of the world of “NeonGenesis Evangelion”©GAINAX/Project Eva.･TV Tokyo■CR Gamera Extreme Battle
・It features characters from “Gamera”, the SFX monster film
・It also features “Gamera Chance”, a scoring system that combines the 7-type andand the wing-type formats.
©Kadokawa Pictures ©1995 Kadokawa Pictures NH ©1996 Kadokawa Pictures NHFN ©1999 Kadokawa Pictures TNHN

©Sammy■CR Shin Sangoku Musou■Ore No Sora・It boasts 20-inch “doughnut vision”
・ Featuring the characters made famous in Hiroshi Motomiya’s manga of the same name. With
the greatest number of special effects and features ever put into a machine by Rodeo and the OreTime(My Time) effect, which raises the level of expectation to a fever-high pitch©Hiroshi Motomiya／Shueisha／FIELDS©Sammy©RODEO■LOONEY TUNES: BACK IN ACTION ( New regulation No. 5 machine )・The first full-scale collaboration between Fields and Olympia
・The birth of “GOLD OLYMPIA” brand・Cute and spirited characters such as Bugs Bunny are appearing on the screen
TM＆©Warner Bros.Entertainment Inc.
(s06)

・It features characters from the home video game “Shin Sangoku Musou 2”,
developed by Koei Co., Ltd.
・It transplants the world where heroes battle supremacy over the land

■King of Mouse
・Story in the motif of adventure and battle of mouse and its companion
・Machine type fully satisfying to Pachislot fan©KOEI Co., Ltd. All rights reserved.

■ CR Otoko Ippiki Gaki Daisho
・ It features characters from the comic “Otoko Ippiki Gaki Daisho” by popularmanga artist Hiroshi Motomiya
・The rule of the game couldn’t be simpler: win the fight or lose it. Players can enjoy
non-stop action as the characters clash in a series of powerful fight scenes©Hiroshi Motomiya／Shueisha／FIELDS■CR Aya Matsuura
・ It features Aya Matsuura nicknamed “Ayaya” as main character
・A fantastic adventure story unfolds on the screen as Matsuura blasts into orbit withher sight set on becoming the top space idol
©UP-FRONT AGENCY■Lord of the Rings( New regulation No. 5 machine )・It boasts the Bisty’s first-ever 15-inch full-scale liquid crystal display screen
・It recreates realistic actions spilling over from the big screen and dramatic tale,
making them feel as if they are in a movie theatre©MMV New Line Productions,Inc. All Rights Reserved."The Lord of the Rings;The Return of the King"and the names of the characters,items, events and places
therein are trademarks of The Saul Zaentz Company d/b/a Tolkien Enterprises under license to New Line Productions,Inc.

■Tomb Raider
・Launched as a game software and sold more than 30 million units worldwide. Itfeatures movie characters from “Tomb Raider”
・It recreates the thrilling adventures worldwide©2006 Core Design Ltd. Lara Croft and Tomb Raider are trademarks of Core Design Ltd. All rights reserved.Eidos and the Eidos logo are trademarks of the SCi
Entertainment Group. All rights reserved.

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

26

Corporate Profile
Corporate Data

（ As of September 30, 2006 ）Principal Shareholders
Name of shareholders（ As of September 30, 2006 ）Number ofshares held

Percentage ofoutstanding
shares owned

Company name

FIELDS CORPORATION
http://www.fields.biz/

Hidetoshi Yamamoto

112,200

32.33%

Establishment

June 1998 (Started business as TOYO Shoji Corporation in 1983)

Takashi Yamamoto

40,00011.53%

Yoko Yamamoto

35,00010.09%Sammy Corporation

27,5007.93%

Mint Co.

16,0004.61%

Morgan Stanley & Co. Inc.

5,223

1.51%

Yuki Yamamoto

5,000

1.44%

Japan Trsustee Services Bank, Ltd.

4,614

1.33%

CMBLSA Re Mutual Fund

4,441

1.28%

Trust & Custody Services Bank, Ltd.

2,990

0.86%

Space Tower 12F, 3-6, Maruyama-cho, Shibuya-ku, Tokyo
Head office address E
150-0044 Japan
Paid-in capital¥7,948.03 billion

Stock information

Total outstanding shares: 347,000 shares

MarketJASDAQ 2767

Number of
employees

745 (non-consolidated)

Main businessactivities

Planning, development, and sales of Pachinko/Pachislot machines

Branch offices

Sapporo, Aomori, Sendai, Koriyama, Niigata, Takasaki, Tsukuba,
Utsunomiya, Saitama, Chiba, Tokyo, Western-Tokyo, Yokohama,Shizuoka, Nagoya, Nagano, Aichi, Mie, Kanazawa, Kyoto, Osaka,
Kobe, Hiroshima, Okayama, Yamaguchi, Matsuyama, Fukuoka,
Saga, Kagoshima, Kumamoto (opened in April 2006)(30 bases nationwide)

1,037(consolidated)

Consolidated
subsidiaries

・Japan Sports Marketing, INC.
・Fields Jr. Corporation
・White Trash Charms Japan Co., Ltd.
・Digital Lord Corporation
・D3 Inc. *, other 7companies

Equity method
companies

・RODEO Co., Ltd. ・Kadokawa Haruki Corporation

Number of shareholders by
category

Financial institutions

3.55%

Securities companies

0.55%

Other companies

14.55%

Foreign companies and others

9.13%

Individuals and other 72. 22%* D3 Publishers Inc. was integrated into a holding company “D3 INC.” from April 2006.
Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

27

Group Structure（ As of September 30, 2006 ）FIELDS CORPORATION[ JASDAQ code:2767 ]PS FieldGame Field

Fields Jr. Corporation(100%)

Digital Lord Corporation(100%)

Rodeo Co., Ltd.

(35%)

Business
Partner

Other Field

D3 Inc. [JASDAQ code:4311] (57.2%)

Japan Sports Marketing, Inc.

(61.8%)

D3 Publisher Inc.

White Trash Charms Japan
Co., Ltd.

(100%)

Entertainment Software
Publishing Inc.

Fields Pictures Corporation(100%)

D3Publisher of America, Inc.
(USA)

Database Co., Ltd.

(100%)Sammy Corporation

D3Publisher of Europe Ltd.
(UK)

G&E Corporation(33.3%)SANKYO Corporation

D3DB S. r. l.
(Italy)APE Inc.

(33.3%)

Olympia Co., Ltd.

thinkArts Co.,Ltd.

(100%)

Kadokawa Haruki
Corporation(30%)

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

28

Introduction of Affiliate Companies■PS Field■Game Field

Digital Lord Corporation

D3 Inc.

■Involved in the planning and development of image software
essential to the Pachinko/Pachislot business as well as planning andbrand management for the merchandizing business of copyrighted
characters. The company applies this expertise in thepachinko,pachislot, and various merchandizing business, to create newimage software and characters.

Fields Jr. Corporation■In March 2005, D3 PUBLISHER Inc., a game publisher, wasconsolidated into a subsidiary to develop various contents in view ofthe game market in the world .

This consolidation enables us to enhance business such as promoting the acquisition of copyrights in
the U.S. and European markets as a content provider through planning, developing and selling gamesoftware in a more timely manner in close collaboration with other Fields Group companies.
*In April 2006, D3 Group shifted to a holding company system composed of D3, Inc. that is aholding company, D3 Publisher Inc. in Japan, D3Publisher of America,Inc and D3Publisher ofEurope LTD that are operating companies.
■D3 group■Registers and manages approximately1,200 college students acrossJapan who are involved in the delivery and installation ofpachinko/pachislot machines. Also conducts nationwide marketing
research for 16,000 pachinko halls and collects information on thetypes of machines installed in halls and the status of hall customers.
This information is utilized in the planning and development of new
machines.

CODE

4311:JASDAQ

http://www.d3i.co.jp/

D3 Inc.
D3 Publisher Inc.
Entertainment Software Publishing Inc.
D3Publisher of America, Inc. (USA)
D3Publisher of Europe Ltd. (UK)
D3DB S. r. l. (Italy)

thinkArts Co., Ltd

Rodeo Co., Ltd.
■Our company acquired capital in Rodeo Co., Ltd., which is one of
the group companies of Sammy Corporation, the top manufacturer ofpachislot machines, and became Rodeo Co., Ltd’s sole distributor.
The Sammy Group has strong product development capabilities and weare promoting collaboration with the Group taking advantage of thesynergy between our major product merchandizing rights and theirproduct development capabilities.
http://www.rodeo.ne.jp/■Our company newly consolidated thinkArts Co., Ltd., which isengaged in the development of image software for Pachinko/Pachislot
and game software.
We steadily build structure to to create high-value digital contents with Digital Lord Corporation.
http://www.thinkarts.jp/

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

29

Introduction of Affiliate Companies (Continued)■Other Field

Japan Sports Marketing, Inc.

G&E Corporation■ Established in October 2005 through the merger of J. Sakazaki
Marketing Inc., which became a consolidated subsidiary in July
2005, Professional Management Co., Ltd. and Total Workout
Corporation.

Involved in the wide range of sports entertainment business such as planning and organizingof sports events, TV rights distribution and gym operation.
http://www.jsm.jp

White Trash Charms Japan Co., Ltd.
■A fashion accessories brand that originated on the West Coast of the
U.S. and is widely cherished by many fashion leaders, including
Hollywood stars, artists, and stylists. Started import sales in April, 2002
in Japan and opened a directly managed shop in Roppongi Hills in April
2003. Plans are underway for expanding its product lineup.

■G & E Corporation is a joint venture formed by SANKYO Co., Ltd.,Sammy Corporation, and Fields Corporation, and the industry’s as wellas Japan’s first personnel training school for general entertainment firms.

In this school, students can systematically learn basic knowledge about the industry, develop businessskills, and acquire the industry’s cutting-edge technologies and knowledge. Also, this school open
up career opportunities for students in the shareholding companies as well as in the entertainment
industry after their graduation.
http://www.g-e.jp/

Kadokawa Haruki Corporation■Haruki Kadokawa is a well-known pioneer in the media mix strategy
that provides content across a broad range of areas, such as publishing,movies, and music. Kadokawa Haruki Corporation has established aunique position in the publishing industry by appointing him as a special
adviser to the company, and by making efforts to develop genres, such as
science fiction, suspense, mystery, horror, hard-boiled, and historicalnovels, breaking fresh ground in each genre.

http://www.whitetrashcharmsjapan.com

Fields Pictures corporation
contents■Established to create powerful contents such as film and cartoon.
Aiming to produce primary digital contents for multi-use including
pachinko, pachislot and game.

Through collaboration with Kadokawa Haruki Corporation, our company jointly promotes business ofthe multiple-use content owned by Kadokawa Haruki Corporation and also creates primary content
and characters using their capabilities of developing various content, aiming to depart from the current
secondary-use based content provider business.
http://www.kadokawaharuki.co.jp/

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

30

Financial Highlights
Key financial data （Thousand of JPY）
Net sales

1999.3

2000.3

2001.3

2002.3

2003.3(consolidated)2004.3(consolidated) 2005.3(consolidated) 2006.3(consolidated)2007.3
Interim(consolidated)

11,811,500

10,017,585

11,496,060

34,560,468

61,888,832

66,211,589

81,658,011

96,814,364

47,122,183

Operating income

138,791

768,876

1,700,893

5,730,688

6,781,196

11,866,578

12,097,224

12,348,156

4,720,564

Ordinary income

107,358

726,910

1,681,106

5,664,866

7,022,048

12,209,509

12,480,571

13,127,685

4,980,682

Net income

34,842

262,168

583,0813,041,486

3,524,372

6,620,253

6,926,791

7,085,994

2,225,661

Paid-in capital

10,00010,000116,000

530,500

1,295,500

1,295,500

7,948,036

7,948,036

7,948,036

Shareholders’ equity

23,938286,107

1,069,803

3,883,201

8,752,797

14,507,820

33,426,273

39,411,552

42,196,331
69,795,303

Total assets

5,388,131

6,199,947

6,211,821

18,631,438

17,090,435

37,115,839

72,584,547

87,556,534

Cash flows from Operating activities－－

1,105,738

4,525,559

3,316,128

851,192

2,965,857

6,164,786

2,316,755

Cash flows from Investing activities－－

269,440(724,077)(2,253,217)(3,190,193)(5,257,154)(2,224,610)(1,528,289)

Cash flows from Financial activities

－
－

－
－

( 920,780)
1,414,660

2,004,198
6,857,525(2,454,804)
5,739,061

2,029,999
5,437,758

10,177,881
13,326,256(1,540,544)
15,777,313

1,992,541
18,567,634

2001.3

2002.3

Cash and cash equivalents at end of the period

Indicators per share （Single of JPY）
Shareholders’ equity per share

1999.3

2000.3

119,690

1,430,535

461,122

Annual dividend per share(non-consolidated)
Net income per share
Management indicators (Unit : %)2003.3(consolidated)

1,325,324
Old shares

100,000

New shares

27,398

268,600－－

15,000

2nd new shares 548

10,000174,211

1,310,844

2,075,024

1,275,256

117,233

2000.3

2001.3

2002.3

1999.3

Shareholders’ equity ratio

2004.3(consolidated) 2005.3(consolidated) 2006.3(consolidated)2003.3(consolidated)

89,30524,000・ Memorial 10,000
・ Interim 10,000・ Full year 4,000

40,46596,0264,000・ Interim 2,000・ Full year 2,000

19,8882007.3
Interim(consolidated)

113,275

121,6034,000
・ Interim 2,000
Full year 2,000

4,000・ Interim 2,000・ Full year 2,000

20,118

6,414

2004.3(consolidated) 2005.3(consolidated) 2006.3(consolidated)2007.3
Interim(consolidated)

0.4

4.6

17.2

20.8

51.2

39.1

46.0

45.0

58.2

Return on equity

534.6

169.1

86.0

122.8

55.9

56.9

28.9

19.5

5.56

Return on assets

2.2

12.6

27.1

45.6

39.3

45.1

22.8

16.4

6.33

Dividend as percentage of Shareholders’ equity(non-consolidated)’

－

－

6.0

7.8

7.9

*20.1

20.7

20.3

-

*Dividend as percentage of shareholders’ equity in 2004.3 is calculated including memorial dividend

Others1999.3

2000.3

2001.3

2002.3

2003.3(consolidated)2004.3(consolidated) 2005.3(consolidated) 2006.3(consolidated)

Total outstanding shares

200

200

2,320

2,930

32,300161,500

347,000

347,000

Employees (persons)

166

210

319

323

460

651

758

901

・October, 2002 10-for-1 stock split

・November, 2003

5-for-1 stock split

・September, 2004

2-for-1 stock split

2007.3
Interim(consolidated)

347,000
1,037
・Consolidated from 2003.3

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

31

PS field - Pachinko/Pachislot Machine Sales History（Unit:Machines）
Year
ended
March
2001

Year
ended
March
2002

Year ended
March 2003

Year ended
March 2004

Year ended
March 2005

Year ended
March 2006

Full year Full year 1st Half 2nd Half Full year 1st Half 2nd Half Full year 1st Half 2nd Half Full year 1st Half 2nd Half Full year

Year ending
March 2007

1Q

2Q

1st Half

166,339 222,660 133,448 126,365 259,813 153,254 170,683 323,937 168,707 305,337 474,044 159,387 384,934 544,321 124,274 105,533 229,807

Unit sales of machines

Pachinko/Pachislot sales mix

Pachinko machine

Unit
Composition

95,631 62,809 34,823 43,876 78,699 42,575 102,456 145,031 91,157 190,943 282,100 74,344 255,317 329,661 65,637 57,634 123,271
57.5% 28.20% 26.09% 34.72% 30.29% 27.78% 60.03% 44.77% 54.03% 62.54% 59.51% 46. 64% 66.33% 60.56% 52.82% 54.61% 53.64%

Pachislot machine

Unit
Composition

70,708 159,851 98,625 82,489 181,114 110,679 68,227 178,906 77,550 114,394 191,944 85,043 129,617 214,660 58,637 47,899 106,536
42.5% 71.80% 73.91% 65.28% 69.71% 72.22% 39.97% 55.23% 45.97% 37.46% 40.49% 53.36% 33.67% 39.44% 47.18% 45.39% 46.36%

Agency/Distribution sales mix

Agency sales

164,705 151,423 36,840 46,569 83,409 45,892 105,718 151,610 92,584 194,221 286,805 82,152 273,980 356,132 67,938 59,143 127,081
Unit
Composition 99.01% 68.01% 27.61% 36.85% 32.11% 29.95% 61.96% 46.81% 54.87% 63.61% 60.50% 51.54% 71.18% 65.43% 54.67％ 56.04% 55.30%

Distribution sales

Unit
Composition

1,634 71,237 96,608 79,796 176,404 107,362 64,965 172,327 76,123 111,116 187,239 77,235 110,954 188,189 56,336 46,390 102,726
0.99% 31.99% 72.39% 63.15% 67.89% 70.05% 38.04% 53.19% 45.13％ 36.39% 39.50% 48.46% 28.82% 34.57% 45.33% 43.96% 44.70%

Direct sales

Unit
Composition

77,268 129,020 79,859 82,989 162,848 98,305 128,291 226,596 123,338 239,310 362,648 112,917 291,982 404,899 88,448 79,340 167,788
46.45% 57.94% 59.84% 65.67% 62.78% 64.15% 75.16% 69.95% 73.10% 78.38% 76.50% 70.84% 75.85% 74.39% 71.17% 75.18% 73.01%

Indirect sales

Unit
Composition

89,071 93,640 53,589 43,376 96,965 54,949 42,392 97,341 45,369 66,027 111,396 46,470 92,952 139,422 35,826 26,193 62,019
53.55% 42.06% 40.16% 34.33% 37.32% 35.85% 24.84% 30.05% 26.90% 21.62% 23.50% 29.16% 24.15% 25.61% 28.83% 24.82% 26.99%

Direct/Indirect mix

Source : Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

32

Appendix II

Copyright 2006 FIELDS CORPORATION All rights reserved.

33

Japanese Leisure Market
Market Scale of Pachinko / Pachislot Industry
2005 Japanese Leisure market - total size of JPY 80trillion

Changes in Pachinko Market
91.0

89.0

87.0

87.0

86.0

(trillion yen)

85.0

83.0

83.0

82.0

81.0

80.1

Total leisure market

Sports
JPY4.2 trillion（5.4%）
Sightseeing / excursion
JPY10.6 trillion
Game / gambling / food & drink（13.3%）
JPY25.2 trillion
Hobby / creation（31.4%）
JPY11.1 trillion（13.9%）

30.9

30.0

28.4

28.0

28.5

28.7

29.2

27.8

29.6

28.7

2004

2005

Pachinko Market

1995

1996

1997

1998

1999

2000

2001

2002

2003

Changes in Number of Pachinko Players
Pachinko / Pachislot
JPY28.7 trillion（35.9%）

29.4

3,877

4,423

Entertainment business Institute

2,865

2,900

(10,000 people)

2,998

2,819

2,766
2,170

2,100

1,900

2,760
2,310
1,980

1,860

2,020

1,930

1,823

1,740

2001

2002

2003

White Paper on Leisure

Pachinko / pachislot is one of the leading forms of entertainment in Japan, being playedby 13.4% of the population in one of 15,000 venues
1995

1996

1997

1998

1999

2000

1,790 1,710
1,509 1,606

2004

2005

Source:“White Paper on Leisure 2006”by Central Research Service, Inc., “Pachinko Participation Fact-Finding Survey”by Entertainment business InstituteCopyright 2006 FIELDS CORPORATION All rights reserved.

34

Market Scale of Pachinko/Pachislot Industry(2005)
Income Structure of Pachinko Halls

Scale of the pachinko/pachislot market: ¥28.7 trillion （Total lease amount of pachinko balls）

Gross profit:¥2. 7 trillion

Premiums: ¥26.0 trillion

Gross profit: ¥2.7 trillion

New machine installment costs(purchase amount of new machines)▼

Investment for customer expansion

・Pachinko machine: ¥867.2 billion
・Pachislot machine: ¥543.0 billion▼

Costs for constructing new halls and refurbishingexisting halls
Advertisement, marketing and after-service
expensesRelated equipment expenses
Other expenses
Net income

Pachinko/pachislot machine
market: approximately¥1,410.2 billion
Source: “White Paper on Leisure 2006”by Central Research Service, Inc, “Trend and market share of Pachinko related makers 2006”, Estimation by Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

35

Players in the Pachinko/Pachislot Industry
Players
Machine manufacturers

Pachinko Hall Operators■ 27 pachinko machine manufacturers

Direct sales■Around 15,165 in Japan■Over 60 pachislot machine manufacturers■Neighbourhood based■Regulated

40% for pachinko and 20% for Pachislot■Large number of small owner operators but somesignificant chains■Constant need to attract and retain players■‘Fickle’ client baseDistributors■High machine turnover (every 12 months)

Indirect sales■Usually paid via a commission from manufacturers
but may also have a resale model for pachislot■On average, each machine pays for itself in c. 3-6
weeks■Network of salesmen■Not directly regulated■Regulated

60% for pachinko and 80% for Pachislot

Source: Yano Research Institute Ltd.

Copyright 2006 FIELDS CORPORATION All rights reserved.

36

Number of Pachinko Halls and Installed Machines Per Hall
40000

340

323.1
40,000

318.2

35000

320

304.3

35,000

294.7

30000

300

30,000284.9# of installed machines per hall

279.9
274.3

25,000
25000

268.0

280

270.3

268.0

260.5
20,00020000

260

18,224

18,164

17,773

17,426

17,173

16,98815,00016,801

16,504

16,076

15,617

15,16515000

Pachinko/Pachislot parallel
establishment (Store #)240

10,000

10000

17,594

17,6115,000

22017,174

16,764

16,021

16,413

15,691

15,255

13,844

14,695

13,163

0
5000

200

Pachislot Specialty Stores (Store#)

570

613

662

599

1,110

967

760

1,249

1,381

2,002

1,773

0

180

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Source: “Trend and market share of Pachinko related makers 2006” by Yano Research InstituteCopyright 2006 FIELDS CORPORATION All rights reserved.

37

Unit Sales and Sales Amount of Pachinko/Pachislot Machines
12,000,000

8,672
9000

7,864

Pachinko Machine Sales Amount (hundred million yen）

6,707

10,000,000

7000
10,000,000

5,684

5,691

5,615

5,184

Pachislot Machine Sales Amount（hundred million yen）

5000

8,000,000

5,248

5,430

5,687,950

5,851,719

5,255

3,623
3,966

3000

3,513
3,146

6,000,000

5,529,069

2,693
2,353
1,828
4,503,180

4,359,056

Unit sales of Pachinko machines 4,067,195

4,521,208

4,675,973

1000

4,060,759

4,000,000

3,686,677
3,373,704

3,133,340-1000

3,128,054

3,935,063

3,716,599

3,174,079

3,230,489

3,368,839

4,047,427

4,012,901

2,358,321

2,847,838

2,000,000

Unit sales of Pachislot machines

-3000

0

423,993

350,596775,019525,866

1,842,392

1,501,894

1,290,719

1,134,341

932,705

1,804,292

1,675,049

0

-5000

1995
1995
Pachinko/Pachislot Machine Total
Sales Amount (hundred million yen）

NA

1996
1996

1997
1997

NA

1998
1998

NA

5,977

1999
1999
7,876

2000
2000

2001

2002

2003

2004

2005

2001

2002

2003

2004

2005

8,830

9,205

9,581

11,962

13,112

14,102

Source: “Trend and market share of Pachinko related makers 2006” by Yano Research InstituteCopyright 2006 FIELDS CORPORATION All rights reserved.

38

Number of Installed Pachinko/Pachislot Machines andAnnual Turnover Rate
12,000,000

1.37
1.30

Annual turnover rate of Pachinko machine (times)
1.30

1.14

10,000,000

1.01

10,000,000

0.97

0.98

0.97

0.98
1.11

0.88
0.77

0.74

Annual turnover rate of Pachislot machine (times)
0.82

0.93

0.89

0.80

0.64

0.60

0.55

0.94

0.89

0.86

8,000,000

0.50

6,000,000

0.30

Number of installed
Pachinko machines

4,753,358

4,868,050

4,763,433

4,710,646

4,709,796

4,755,302

4,786,255

4,864,062

4,891,944

4,969,156

4,899,198

4,000,000

3,686,066

3,853,529

3,906,767

3,827,577

3,558,036

3,077,537

3,227,239

3,252,241

3,321,391

3,422,650

2,960,939-0.20

2,000,000

Number of installed
Pachislot machines
01,004,642

880,090

767,584

700,332

1,936,470

1,887,239

1,660,839

1,606,123

1,459,233

1,323,729

1,139,356

0Annual turnover rate of
total machines (times)

-0.70

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

0.86

0.90

0.71

0.67

0.86

0.95

0.95

0.96

1.13

1.15

1.20

Source: “Trend and market share of Pachinko related makers 2006” by Yano Research InstituteCopyright 2006 FIELDS CORPORATION All rights reserved.

39

Market Share by Manufacturers
Unit Sales Share - Pachinko Machine
2000
Ranking

2001

2002

2003

2004

2005

Manufacturer

Market share

Manufacturer

Market share

Manufacturer

Market share

Manufacturer

Market share

Manufacturer

Market share

Manufacturer

Market share

1

SANKYO

18.6%

Sanyo

18.9%

Sanyo

16.4%

Sanyo

25.2%

Sanyo

22.9%

Sanyo

24.7%

2

Sanyo

15.1％

SANKYO

17.3%

SANKYO

14.8%

SANKYO

16.4%

SANKYO

21.1%

SANKYO

18.2%

3

Heiwa

11.7%

Heiwa

10.8%

Heiwa

10.0% Daiichi Shokai

9.5%* Heiwa

8.7%

Kyoraku

9.6%

4 Daiichi Shokai
5

Sofia

7.4% Daiichi Shokai

10.3％ Daiichi Shokai

8.1%

Heiwa

7.1% Daiichi Shokai

7.6%

Newgin

7.9%

5.9％

7.6%

7.9%

Sammy

6.7%

6.9%

Sammy

7.1%

Kyoraku

Kyoraku

Newgin*The number of sales of Heiwa in FY2004 is converted for 15 months for the accounting period change.
*Sankyo sales includes Bisty

Unit Sales Share - Pachislot Machine
2000
Ranking

2001

Manufacturer Market share Manufacturer

2002

2003

2004

2005

Market share

Manufacturer

Market share

Manufacturer

Market share

Manufacturer

Market share

Manufacturer

Market share

1

Aruze

36.2%

Sammy

32.8%

Sammy

31.1%

Sammy

32.1%

Sammy

40.4%

Sammy

33.6%

2

Yamasa17.6%

Yamasa17.8%

Yamasa20.4%

Olympia18.5%

Olympia

16.4%

Daito giken

13.0%

3

Sammy

13.5%

Aruze

16.1%

Aruze

19.8%

Aruze

13.6%

Yamasa8.9%

Olympia

10.3%

4

Olympia

8.8%

Olympia

8.5%

Olympia

11.7%

Yamasa11.9%

Daito giken

7.8%

Yamasa

8.3%

5

Net

4.4%

Pioneer

5.0%

Pioneer

3.3%

Daito giken

4.8%

Aruze

4.6%

SANKYO

6.1%*Sammy sales includes Rodeo*Sankyo sales includes Bisty*Aruze sales includes Eleco,Mizuho and Macy
*Olympia sales includes Heiwa
Source: “Trend and market share of Pachinko related makers 2006” by Yano Research InstituteCopyright 2006 FIELDS CORPORATION All rights reserved.

40

Disclaimer

Statements in these materials concerning plans, strategies, forecasts and other items
that are not historical facts, including corporate risks and uncertainties, cannot be
guaranteed.
Risks and uncertainties include, but are not limited to, economic conditions, thecompetitive environment and products supplied by Fields, all chiefly involving thecompany’s core pachinko / pachislot business domain.

Source: Fields

Copyright 2006 FIELDS CORPORATION All rights reserved.

41