Financial Briefing Material
for the Year Ended March 31, 2019
FIELDS CORPORATION
Listed on: TSE 1st (2767)
May 16, 2019

Copyright 2019 FIELDS CORPORATION All rights reserved.

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FY3/2019
Overview of the financial results

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Introduction[Differences between the consolidated performance forecast and actual results for the year ended March 31, 2019]
Consolidated business results for the current fiscal year were as set forth in section (1) above. The reasons for the difference from the forecast
announced last time are as follows.
Previously, the Group’s licensing sales revenues and profits relating to copyrights and other rights were reported as lump sums at the time oflicensing. In accordance with this, “Notification of Revisions to Performance Forecast” released on March 6, 2019 included sales revenues andprofits relating to licensing as of the time of licensing agreement execution. After that in the progress of the business activity, a forecast was madeto the effect that operating profit would be approximately ¥200 million compared to the initial plan.
However, as a result of consultations with our accounting auditors conducted during the final stages of auditing regarding reporting of sales
revenues relating to installment collection of royalties, FIELDS decided to report licensing sales revenues collected through long-term
installments at the time of collection of each payment. This change will be made to appropriately reflect the actual status of sales revenues inresponse to the increase in installment collection in conjunction with the expansion of licensing transactions.
As a result of the above, approximately ¥1.6 billion in licensing royalty revenues forecast for the current fiscal year that will be collected
through long-term installments will be reported in the next and subsequent fiscal years when actually received.
Going forward, we will from time to time engage in exchanges of opinions with the accounting auditors from various perspectives with regard
to increasingly sophisticated accounting systems and make reference to the advice and opinions of other outside experts to enhance business
management.
Extracting from the press release on May 15, 2019, “Notification of differences between the consolidated performance forecast and actual results for the year ended March 31, 2019, anddifferences between the non-consolidated results for the year ended March 31, 2019 and the results for the previous fiscal year”

Copyright 2019 FIELDS CORPORATION All rights reserved.

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Consolidated P/L(Unit: Billions of yen)
FY3/2018

Consolidated P/L
Full-year

FY3/2019
Full year
forecast as ofMay 2018

Revised plan
as ofMarch 2019

Full-year
Q1

Q2

Q3

Q4

YoY Change

Net sales

61.05

95.00

53.00

8.93

9.11

19.57

14.02

51.63

(9.41)

Gross profit

13.40

17.00

-1.42

2.43

6.32

3.59

13.76

+0.36

SG&A expenses

19.13

15.00

-4.15

3.60

3.67

3.69

15.13

(4.00)

Operating profit (loss)(5.73)

2.00

0(2.73)(1.17)

2.64(0.10)(1.36)+4.37

Ordinary profit (loss)(5.20)

2.50

0(2.75)(1.30)

2.74(0.08)(1.39)+3.80(7.69)

1.50

0.70(2.95)(0.29)

3.23(0.28)(0.29)+7.39

Profit (loss)
attributable toowners of parent[Number of pachinko/pachislot (hereinafter, “PS”) machines sales](Unit: Machine)

Pachinko machine

95,778--19,895

12,92737,02633,931

103,779+8,001

Pachislot machine

95,679--

3,341

6,863

9,983

14,05734,244(61,435)

Total

191,457--

23,236

19,79047,00947,988138,023(53,434)* The figures have been rounded down to the nearest million.

3/2019Copyright 2019 FIELDS CORPORATION All rights reserved.

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Consolidated B/S and cash flows(Unit: Billions of yen)
Consolidated B/S

FY3/2018

FY3/2019

ChangeMain factors
Increase in cash and deposits
Increase in inventories

Current assets

42.17

48.22

+6.04

(Cash and deposits)

24.47

28.90

+4.43

Property, plant and equipment

5.276.16+0.88

Intangible assets
Investments and other assets

1.38

3.17+1.78 Increase in goodwill

23.49

10.63

(12.86) Decrease in long-term loans receivable

Total assets

72.33

68.19

(4.13)

Current liabilities

22.48

21.75

(0.72) Increase in short-term loans payableNon-current liabilities

14.34

11.33

(3.00) Decrease in long-term loans payable

35.50

35.10(0.40)

72.33

68.19

(4.13)Net assets
Total liabilities and net assets
Consolidated cash flows

FY3/2018

FY3/2019

Decrease in notes and accounts payable-trade

Breakdown for the FY3/2019

Cash flows from operating activities(1.09)

2.17

Loss before income taxes (0.02)/ Decrease in notes and accounts payable-trade (2.66)/
Decrease in notes and accounts receivable-trade +1.65/ Loss on sales of shares ofsubsidiaries and associates (1.34)/ Depreciation +1.23/ Amortization of equity investment+1.07/ Share of (profit) loss of entities accounted for using equity method +0.45

Cash flows from investing activities

4.39

3.21

Proceeds from purchase of shares of subsidiaries resulting in change in scope of
consolidation+2.81/ Proceeds from sales of shares of subsidiaries and associates+1.80/ Purchase of non-current assets (1.39)

Cash flows from financing activities(2.02)(0.96)Net increase (decrease) in cash and cash equivalents

1.28

4.43

Cash and cash equivalents at beginning of period

23.09

24.37

Cash and cash equivalents at end of period

24.37

28.80

Repayments of long-term loans payable (2.58)/ Increase in short-term loans payable +1.80/
Cash dividends paid (0.16)* The figures have been rounded down to the nearest million.

3/2019Copyright 2019 FIELDS CORPORATION All rights reserved.

5

Initiatives for the FY3/2020

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PS business
The Policy of the business

Planning, development and sales of optimum products
considering market needs based on marketing analyses― Thorough reviewing and brush-up of products we developed― Release of popular series machines

3/2019Copyright 2019 FIELDS CORPORATION All rights reserved.

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PS business3/2019Sound
distribution
business― Alliance with nine manufacturers and contract with 5,500 halls regarding
installation and parts checking operations― Expanding number of alliance manufacturers and contracts above

Used machines
distribution
platform― Working on security measure
and complying change of the rule of document issuing― Reconstructing the system and aiming at providing the service early

Mobile targetingad business― Installation of mobile targeting ad service in 900 pachinko halls― Expanding development of the service to other industries (food and drink,SC industry etc.)

Media solution
business― Pachinko Pachislot Information Station
Scheduled to be distributed from July 2019
Copyright 2019 FIELDS CORPORATION All rights reserved.

8Tsuburaya Productions[Global distribution]■Distributed worldwide on NETFLIX from April *except in China
Implemented massively promotion by TV commercials, etc.
as a focused work of NETFLIX■Got a high reputation and a strong response
from viewers/in NETFLIX
Received a strong response in Asia
including Korea, Thailand and Malaysia[Distribution in China]■Distributed on Tencent, bilibili and other seven companies⇒In China, estimated 70 million views per month

ULTRAMAN©Tsuburaya Productions Co., Ltd. ©Eiichi Shimizu, Tomohiro Shimoguchi ©ULTRAMAN製作委員会
3/2019Copyright 2019 FIELDS CORPORATION All rights reserved.

9Tsuburaya Productions【Development in China】■ULTRA HEROS TAMASHII, the first event targeted adult【代表取締役 会長／CEO】

in China, held at shopping mall in Shanghai⇒ More than 700,000 visitors in a month【Development in Europe and America】■Started active development in Europe and America
Promoting global strategy
starting from selling past contents⇒ Scheduled to exhibit at Licensing ExpoULTRA HEROS TAMASHII held in Shanghai
in 2019/3/1～3/31
3/2019in North America in June 2019

©TSUBURAYA PRODUCTIONS ©ULTRAMANGEED PRODUCTION CONSORTIUM・TV TOKYO©ULTRAMAN R/B PRODUCTION CONSORTIUM・TV TOKYO

Copyright 2019 FIELDS CORPORATION All rights reserved. 10

Tsuburaya Productions
Using all of the Group’s collective strength to promote business expansion
both inside and outside JapanMovie

To be “profit” from “cost”
Attractive movie

Characterbusiness

Movie forgoods promotion

To monetize by tie-ups with other companies
Strategic expansion

Global3/2019Asia primarily in China ➡ North America
Copyright 2019 FIELDS CORPORATION All rights reserved.

11

Tsuburaya Productions

Management Structure (since April 2019)
Takayuki Tsukagoshi (Chairman and CEO)
Held major positions in the videogram and visual categories at the Walt Disney Group in Japan
Main careers：President, Buena Vista Home Entertainment Japan Inc. (2000)
The Walt Disney Studios Japan (2010)
Executive Producer, The Walt Disney Company (Japan) Ltd. (2016)

Masayuki Nagatake (President and COO)
Been in charge of strategy and overseas business in the toy industry for the last decade
after the finance and apparel industries
Main careers：Goldman Sachs Japan Co., Ltd. (1999)
UNIQLO (U.K.) Ltd. (2002)
President and Chief Operating Officer, TOMY International, Inc. （2016）
Experienced member of board of director in toy industry in US3/2019

Copyright 2019 FIELDS CORPORATION All rights reserved. 12

Forecast of the FY3/2020

Copyright 2019 FIELDS CORPORATION All rights reserved. 13

Lineup of PS titles to sell in FY3/2020

H2

H1
Q1 sold

GANTZ:2

25,000 units

Others

15,000 units

Q2 on sale S Gurren Lagann

7 titles

3/201911 titles

Copyright 2019 FIELDS CORPORATION All rights reserved. 14

FY3/2020［Profit Plan］（Unit: billions of yen）

FY3/2019
Full-year

Forecast of FY3/2020
Full-year

ChangeOperating profit (loss)(1.36)

1.5

2.86

Ordinary profit (loss)(1.39)

1.5

2.89(0.29)

1.0

1.29

Profit (loss)
attributableto owners of parent➡ The three fiscal year profit plan of the mid-term management plan will be announced anew
3/2019Copyright 2019 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.

Copyright 2019 FIELDS CORPORATION All rights reserved. 16