2nd quarter (7. 2014 - 9. 2014) FIELDS CORPORATION The Greatest Leisure for All People FIELDS CORPORATION (Code:2767) Supplementary Financial Document for the First Half of the Year Ending March 31, 2015 FIELDS CORPORATION The Greatest Leisure for All People November 4, 2014 The Greatest Leisure for All People Copyright 2014 FIELDS CORPORATION All rights reserved. FIELDS CORPORATION The Greatest Leisure for All People Index 1. Highlights for the H1 of the Year Ending March 31, 2015 P. 3 2. Supplementary Data for the H1 of the Year Ending March 31, 2015 P. 7 (Consolidated) P/L Statement P. 4 Number of Pachinko/Pachislot Machines Sold P. 8 (Consolidated) B/S P. 5 Change in the Number of Pachinko/Pachislot Machines Sold (Graph) P. 9 (Consolidated) Cash Flows P. 6 Pachinko/Pachislot Machines’ Titles from 3.2013 to 3.2015 P. 10 Appendix 3. Appendix I P. 11 4. Appendix II Corporate Profile ・Corporate Profile ・Stock Information P. 28 P. 12 Our Tracks P. 13 P. 29 Developing Business Model Main group companies P. 14 Pachinko/Pachislot Market ・Market Scale of Pachinko/Pachislot Industry ・Change in Pachinko/Pachislot Market Scale ・Change in Number of Pachinko/Pachislot Players ・Income Structure of Pachinko Halls Business Model (PS Planning, Development and Sales) FIELDS CORPORATION Accounting Method of Pachinko/Pachislot Sales (Image) P. 15 P. 30 Business Flow and Accounting Method of Merchandising Rights Regarding Pachinko/Pachislot Planning and Development Glossary of Fields’ Pachinko/Pachislot Machine Sales Players in the Pachinko/Pachislot Industry Recent Trend of Pachinko/Pachislot Industry P. 16 The Greatest Leisure for All People Cumulative Number of Pachinko/Pachislot Series Sold (by Main IP) Number of Pachinko/Pachislot Machines Sold (Details) Titles of Pachinko Machines Sold (3.2002-3.2014) Titles of Pachislot Machines Sold (3.2001-3.2014) Change of “Evangelion” Series Change in Quarterly P/L Statement (Table) Financial Highlights Change in Financial Results (Graph) (Consolidated) Change in Assets/Liabilities, Net Assets (Graph) (Consolidated) Change in Selling, General and Administrative Expenses (Graph) (Consolidated) Change in Free Cash Flow (Graph) (Pachinko/Pachislot Market Data) Number of Pachinko Halls and Change in Number of Pachinko/Pachislot Machines Installed Per Hall Number of Installed Pachinko/Pachislot Machines and Annual Turnover Rate P. 17 P. P. P. P. 18 19 20 21 P. 31 Unit Sales and Sales Amount of Pachinko/Pachislot Machines Market Share by Manufacturers ・Unit Sales Share - Pachinko Machines ・Unit Sales Share - Pachislot Machines P. 32 Monthly Trends of Pachinko Halls P. 33 5. Appendix III P. 34 P. 24 Market Scale of Content Business Market Scale of Digital Content Business P. 35 P. 25 Sales Amount of Comic Books and Comic Magazines Market Scale of Animation Industry P. 36 Box-Office of Domestic Movie Theaters Market Scale of Broadcasting Industry P. 37 Market Scale of Mobile Business P. 38 Reference: Notification of Our IR Site P. 39 P. 22 P. 23 CSR Activities ・Fields Topics ・Group Companies Topics P. 26 Corporate Governance System Profit Return Policy P. 27 (Entertainment Market Data Except Pachinko/Pachislot Industry) Copyright 2014 FIELDS CORPORATION All rights reserved. 2 FIELDS CORPORATION The Greatest Leisure for All People 1. Highlights for the First Half of the Year Ending March 31, 2015 FIELDS CORPORATION The Greatest Leisure for All People Copyright 2014 FIELDS CORPORATION All rights reserved. 3 FIELDS CORPORATION The Greatest Leisure for All People Highlights for the H1 of the Year Ending March 31, 2015 (Consolidated) 【 P/L Statement 】*The numbers in upper parenthesis is YoY, the numbers in lower parenthesis is ratio to net sales. Year Ended March 31, 2014 H1 Full-Year Net sales (Unit: Millions of yen) Year Ending March 31, 2015 H1 Full-Year Forecast (125.0) (106.3) (55.9) 36,385 114,904 20,341 [100.0] [100.0] [100.0] (154.7) (101.6) (50.7) Gross profit 13,648 33,812 6,920 [37.5] [29.4] [34.0] (107.4) (104.6) (95.9) SG&A expenses 11,471 24,020 10,998 [31.5] [20.9] [54.1] (-) (94.9) (-) Operating income 2,176 9,791 (4,077) [6.0] [8.5] [-20.0] (-) (95.1) (-) Ordinary income 2,144 9,765 (4,072) [5.9] [8.5] [-20.0] (-) (113.8) (-) Net income 1,434 5,370 (2,509) [3.9] [4.7] [-12.3] 100,000 - - 5,000 5,000 2,500 * “YoY” and “ratio to net sales” are calculated on this sheet above. FIELDS CORPORATION The Greatest Leisure for All People Source: Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 4 FIELDS CORPORATION The Greatest Leisure for All People 【 B/S 】 Highlights for the H1 of the Year Ending March 31, 2015 (Consolidated) At March 31, 2014 At September 30, 2014 (Unit: Millions of yen) Increase/ Decrease Factors Cash and cash equivalents 29,583 16,178 (13,405) Notes and accounts receivable—trade 29,155 5,618 (23,537) Inventories 3,134 4,147 1,013 Other 5,083 7,837 2,754 (34) (28) 6 66,921 33,752 Land 7,875 7,737 (138) Other 4,229 4,577 348 12,104 12,314 210 Goodwill 1,905 1,749 (156) Other 2,460 2,641 181 Total intangible fixed assets 4,365 4,390 25 15,607 14,096 (1,511) 6,944 6,903 (41) (1,074) (1,048) 26 21,477 19,951 (1,526) Decrease in investment securities 37,948 36,656 (1,292) 104,869 70,408 (34,461) 33,105 5,586 (27,519) Accrued income taxes 1,959 139 (1,820) Other 6,666 5,517 (1,149) 41,730 11,242 4,386 4,151 46,116 15,394 (30,722) Common stock 7,948 7,948 0 Capital surplus 7,994 7,994 0 Retained earnings 44,548 41,351 (3,197) Treasury stock (1,821) (1,821) 0 58,670 55,473 (3,197) (262) (853) (591) (390) (968) (578) 473 509 36 58,753 55,014 104,869 70,408 Allowance for doubtful accounts Total current assets Total tangible fixed assets Investment securities Other Allowance for doubtful accounts Total investments and other assets Total fixed assets FIELDS CORPORATION Total assetsLeisure for All People The Greatest Notes and accounts payable—trade Total current liabilities Total fixed liabilities Total liabilities Total shareholders’ equity Unrealized holding gain on available-for-sale securities Accumulated other comprehensive income Minority interest Total net assets Total liabilities and net assets (33,169) Decrease in notes and accounts receivable―trade Decrease in notes and accounts payable—trade and (30,488) decrease in accrued income taxes (235) Decrease in net defined benefit liability (3,739) Decrease in retained earnings (34,461) * “Other” and “Increase/Decrease” are calculated on this sheet above. Source: Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 5 FIELDS CORPORATION The Greatest Leisure for All People Highlights for the H1 of the Year Ending March 31, 2015 (Consolidated) 【 Cash Flows 】 (Unit: Millions of yen) Year Ended March 31, 2014 H1 Full-Year Year Ending March 31, 2015 H1 Factors Cash flows from operating activities (4,554) 16,322 (11,111) Cash flows from investing activities (1,650) (8,018) (1,092) Cash flows from financing activities (1,387) (2,018) (1,200) 1 0 0 Increase (decrease) in cash and cash equivalents (7,590) 6,284 (13,404) Cash and cash equivalents at beginning of period 23,309 23,309 29,583 (10) (10) 0 15,708 29,583 16,178 Effect of exchange rate changes on cash and cash equivalents Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation Cash andCORPORATION cash equivalents FIELDS atThe endGreatest of period Leisure for All People Source: Fields Loss before income taxes and minority interests Decrease in notes and accounts receivable—trade Decrease in notes and accounts payable—trade Income taxes paid Expenditures for purchase of tangible fixed assets Expenditures for purchase of intangible fixed assets Proceeds from sales of investment securities Dividends paid Repayment of short-term borrowings Copyright 2014 FIELDS CORPORATION (3,641) (27,255) 24,190 (1,805) (828) (908) 827 (828) (310) All rights reserved. 6 FIELDS CORPORATION The Greatest Leisure for All People 2. Supplementary Data for the First Half of the Year Ending March 31, 2015 FIELDS CORPORATION The Greatest Leisure for All People Copyright 2014 FIELDS CORPORATION All rights reserved. 7 FIELDS CORPORATION The Greatest Leisure for All People Number of Pachinko/Pachislot Machines Sold 【 By Pachinko/Pachislot Brand 】 (Unit: Machines) Year Ended March 31, 2014 Q1 Q2 Q3 Q4 Year Ending March 31, 2015 Q1 Full-Year Q2 H1 < Pachinko machines > Bisty 4,254 73,305 19,680 14,629 111,868 3,533 22,023 25,556 OK!! 1,453 19,076 4,359 3,902 28,790 29,830 5,378 35,208 Others 7,135 5,053 4,689 5,344 22,221 5,177 7,969 13,146 12,842 97,434 28,728 23,875 162,879 38,540 35,370 73,910 1,039 25,429 37 - 26,505 - - - 161 1,322 23,860 36,419 61,762 20 - 20 1,456 24,941 115 45,573 72,085 4,460 19,941 24,401 - - - 54,127 54,127 66 - 66 3,004 4,277 6,991 1,352 15,624 1,111 2,611 3,722 5,660 55,969 31,003 137,471 230,103 5,657 22,552 28,209 18,502 153,403 59,731 161,346 392,982 44,197 57,922 102,119 I) Total number of pachinko machines sold < Pachislot machines > RODEO * Bisty Enterrise Mizuho Others II) Total number of pachislot machines sold I) + II) Total number of pachinko/pachislot machines sold FIELDS CORPORATION *The RODEO includes thefor sales Greatest Leisure All number People of “Kaiji 3” from GINZA Corporation released in the year ended March 31, 2014. 【 Major Sales Title 】 Release (Unit: Machines) Brand Title Q1 Q2 H1 ■Pachinko machines 2014 Mar. OK!! Pachinko Onimusha: Dawn of Dreams 29,000 - 33,000 2014 May Bisty CR TEKKEN LIGHT VERSION ‐ ‐ ‐ 2014 Jun. OK!! Pachinko Onimusha: Dawn of Dreams Light Version - - - 2014 Jul. Bisty CR EVANGELION 8 Extreme Battle 20,000 20,000 2014 Oct. Bisty CR ayumi hamasaki 2 on sale 2014 Dec. Bisty CR EVANGELION 9 on sale ■Pachislot machines 2014 Aug. Enterrise Pachislot Sengoku BASARA 3 2015 Jan. RODEO Salaryman Kintaro 19,000 20,000 on sale * Regarding the titles of pachinko/pachislot machines for which the number of machines sold was less than 10,000, the number of machines sold is not disclosed. * Figures have been rounded to the nearest thousand. * The cumulative number of machines sold is as of October 15, 2014. Source: Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 8 FIELDS CORPORATION The Greatest Leisure for All People Change in the Number of Pachinko/Pachislot Machines Sold (Graph) 【 By Pachinko/Pachislot Machines 】 (Unit: Machines) Pachislot machine 600,000 500,000 Pachinko machine 480,273 449,880 412,390 392,982 400,000 328,110 262,614 300,000 233,223 330,734 162,879 99,993 H1 171,905 200,000 217,659 100,000 230,103 228,117 179,167 Total 102,119 Pachinko 73,910 Pachislot 28,209 119,146 0 3. 2010 3. 2011 3. 2012 3. 2013 3. 2014 H1 3. 2015 FIELDS CORPORATION Greatest Leisure for All People 【TheBy Pachinko/Pachislot Brand 】 (Unit: Machines) 600,000 RODEO Enterrise OK!! Mizuho 449,880 55,564 2,498 35,878 16,119 412,390 300,000 392,982 59,776 7,264 328,110 29,143 32,437 306,585 47,889 200,000 Others 480,273 500,000 400,000 Bisty 263,530 363,056 114,092 37,845 54,127 28,790 72,085 H1 171,905 173,630 100,000 121,691 0 Source: Fields 28,762 3. 2010 3. 2011 81,820 3. 2012 Total 102,119 Others Bisty Enterrise OK!! Mizuho 16,868 25,576 24,401 35,208 66 104,549 26,505 3. 2013 Copyright 2014 3. 2014 FIELDS CORPORATION H1 3. 2015 All rights reserved. 9 Pachinko/Pachislot Machines’ Titles from 3.2013 to 3.2015 FIELDS CORPORATION The Greatest Leisure for All People (Sales units as of September 30, 2014) Pachinko machine Launch of 5 pachinko titles Pachislot machine Launch of 6 pachislot titles Bisty 3 titles RODEO Bisty Enterrise OK!! 2 titles 3. 2013 ©カラー ©Bisty ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. ©Bisty ©士郎正宗・Production I.G / 講談社・攻殻機動隊製作委員会 ©オッケー. ©カラー ©Bisty Launch of 6 pachinko titles 2 titles 3 titles 1 title ©藤沢とおる/講談社 ©Bisty ©倉科遼、井上紀良/集英社(週刊ヤングジャンプ) ©artist house PIRAMID ©Bisty ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. ©宮下あきら/集英社・東映アニメーション ©Sammy ©RODEO ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. ©Sammy ©RODEO ©カラー©Bisty Launch of 7 pachislot titles Bisty 4 titles OK!! 2 titles RODEO (GINZA) Bisty Enterrise Mizuho 1 title 3 titles 2 titles 1 title 3. 2014 ©王欣太・李學仁/講談社 ©Bisty ©カラー ©Bisty ©三浦建太郎(スタジオ我画)・白泉社/BERSERK FILM PARTNERS ©オッケー. ©2013 BANDAI NAMCO Games Inc. ©Bisty ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. ©オッケー. ©福本伸行/講談社・VAP・NTV ©福本伸行/講談社・VAP・マッドハウス・NTV・D.N.ドリームパートナーズ ©Sammy ©RODEO ©CAPCOM CO., LTD. ALL RIGHTS RESERVED ©TSUBURAYA PROD ©創通・サンライズ ©カラー ©Bisty ©UNIVERSAL ENTERTAINMENT ©MIZUHO [Q1] [Q1] [Q2] [Q2] FIELDS CORPORATION The Greatest Leisure for All People Enterrise Pachislot Sengoku BASARA 3 Sold: 20,000 machines ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. [August] [Q3] [Q3] Bisty CR ayumi hamasaki 2 3. 2015 on sale [October] ©avex management inc. ©avex music creative inc. Bisty CR EVANGELION 9 [December] [4Q] on sale * To be posted in the Q4 of the year ending March 31, 2015 ©カラー ©Bisty [4Q] RODEO Salaryman Kintaro on sale [January] ⓒ本宮ひろ志/集英社/FIELDS ⓒSammy ⓒRODEO. * Regarding the titles of pachinko/pachislot machines for which the number of machines sold was less than 10,000, the number of machines sold is not disclosed. * Please refer to pages 18-19 for details on titles launched in the year ended March 31, 2013 and the year ended March 31, 2014. Source: Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 10 FIELDS CORPORATION The Greatest Leisure for All People 3. Appendix I FIELDS CORPORATION The Greatest Leisure for All People Copyright 2014 FIELDS CORPORATION All rights reserved. 11 FIELDS CORPORATION The Greatest Leisure for All People Corporate Profile (As of September 30, 2014) Company name FIELDS CORPORATION http://www.fields.biz/ Regional Offices and Branch Offices June 1988 (Started business as Toyo Shoji Co., Ltd. in 1983) Shibuya Garden Tower, Address of the 16-17 Nampeidai-cho, Shibuya-ku, Tokyo head office 150-0036, Japan Common stock ¥7,948 million Total number of shares issued and outstanding: Stock 34,700,000 information (Treasury stock: 1,516,200) Establishment Securities exchange Tokyo Stock Exchange JASDAQ (Standard) Code: 2767 Number of employees 1,678 (Consolidated), 879 (Non-Consolidated) Main business activities Consolidated Subsidiaries Equity method companies <Regional Offices> Hokkaido-Tohoku, North Kanto, Tokyo, Nagoya, Osaka, Chugoku-Shikoku, Kyushu <Branch Offices> Sapporo, Sendai, Aomori, Takasaki, Niigata, Koriyama, Tokyo, West Tokyo, Chiba, Saitama, Yokohama, Tsukuba, Nagoya, Mie, Shizuoka, Osaka, Kyoto, Kobe, Kanazawa, Hiroshima, Yamaguchi, Matsuyama, Fukuoka, Saga, Kumamoto, Kagoshima Nagoya 4 Branch Offices Osaka 3 Branch Offices FIELDS CORPORATION The Greatest Leisure for All People Stock Information (As of September 30, 2014) Number of shares held Percentage of outstanding shares held Hidetoshi Yamamoto 8,675,000 25.00% SANKYO CO., LTD. 5,205,000 15.00% Takashi Yamamoto 3,612,800 10.41% Mint Co. 1,600,000 4.61% Treasury Stock 1,516,200 4.37% NORTHERN TRUST CO. (AVFC) RE NVI01 1,256,500 3.62% NORTHERN TRUST CO. (AVFC) RE 15PCT TREATY ACCOUNT 567,400 1.64% GOLDMAN, SACHS & CO. REG 543,413 1.57% Takashi Oya 450,000 1.30% NORTHERN TRUST CO. (AVFC) SUB A/C NON TREATY 306,800 0.88% Source: Fields North Kanto 3 Branch Offices Tokyo 6 Branch Offices ・HERO’S INC. ・Kadokawa Haruki Corporation and others total 9 companies. Shareholders Hokkaido-Tohoku 3 Branch Offices Kyushu 4 Branch Offices Chugoku-Shikoku 3 Branch Offices Content-related businesses Planning, development and sales of pachinko/pachislot machines ・Lucent Pictures Entertainment, Inc. ・FutureScope Corporation ・Digital Frontier Inc. ・BOOOM Corporation ・Tsuburaya Productions Co., Ltd. and others total 15 companies. 【By type of shareholder】 Financial institutions 1.91% Securities companies 0.59% Treasury stock 4.37% Other Japanese companies 20.30% Foreign companies and others 20.39% Individuals and others 52.44% Copyright 2014 FIELDS CORPORATION All rights reserved. 12 FIELDS CORPORATION The Greatest Leisure for All People Our Tracks From 1988 Seeking to Create New Entertainment That Enriches People’s Lives 1988 Toyo Shoji Co., Ltd. established in Nagoya to sell pachinko/pachislot machines 1992 Leisure Nippon News Company acquired; Formulation of a vision for the pachinko industry began Cutting-edge information service launched 1992 1994 “Hall TV,” a pachinko hall management support system, launched “Pachinko Information Station,” a direct-to-hall communications satellite broadcast for the pachinko industry, launched Regional and branch offices throughout Japan were expanded to establish our foundation as a distributor From 1998 Focusing on Developing Machines That Provide Greater Entertainment Value 1999 ISO 9002 certification (Sales Division) obtained to provide superior operational quality to customers 2001 Company name changed from Toyo Shoji Co., Ltd. to Fields Corporation Alliance with leading manufacturers formed to develop pachinko/pachislot machines utilizing IP 2001 2003 2008 2010 2011 2014 Alliance Alliance Alliance Alliance Alliance Alliance Alliance with Sammy Corporation formed; Exclusive sales of RODEO brand machines began with SANKYO CO., LTD. formed; Exclusive sales of Bisty brand machines began with KYORAKU SANGYO formed; Exclusive sales of OK!! brand began with Enterrise Co., Ltd. (subsidiary of CAPCOM CO., LTD.) formed; Exclusive sales of Enterrise brand began with Universal Entertainment Corporation formed with NANASHOW Corporation with D-light Co., Ltd. Sports entertainment field entered to acquire IP rights 2001 2001 2005 2007 2011 2012 2013 From 2003 Toward the Multifaceted Development of IP 2003 Shares listed on the JASDAQ market; New IP core business model announced The video game field entered as part of multifaceted IP development 2004 2009 2005 Professional Management Co., Ltd. launched; Entertainment production began Total Workout Corporation established to provide high-quality sports gyms 3 sports-related subsidiaries merged and renamed Japan Sports Marketing Inc. (JSM Inc.) EXPRESS Inc. made a subsidiary Total Workout premium management Inc. established Absorption of JSM Inc.’s fitness club business considering future growth and synergistic effects Absorption-type merger of EXPRESS Inc. aiming at improving management efficiency Pachinko/pachislot machine simulator software launched, following investment in D3 Publisher Inc. D3PUBLISHER INC. shares sold to NAMCO BANDAI Games Inc.; Relationship with NAMCO BANDAI Games strengthened The movie field entered to acquire IP and promote multifaceted IP development FIELDS CORPORATION The Greatest Leisure for All People 2005 2008 Planning and production of many movies for the theater began, following investment in Kadokawa Haruki Corporation Promotion of trend-setting cinema complexes for independent films began, following investment in SPO Entertainment Inc. (management company of movie theaters) From 2008 Toward cultivation and commercialization of IP 2006 The cabled and mobile online services field entered for the acquisition, creation and multifaceted development of IP 2007 The animation field entered to acquire and cultivate IP 2008 The video development field entered to enhance the entertainment offered by pachinko and pachislot 2006 2010 2007 The mobile site “Fields Mobile” developed, following investment in FutureScope Corporation IP Bros. Incorporated jointly established with NHN Japan Corporation; Pachinko/pachislot-related site “Nanapachi” developed Operations at Lucent Pictures Entertainment, Inc. began; Feature-length animation film “BERSERK” planned and produced 2008 Shinnichi Technology Co., Ltd. established 2009 F Corporation (currently BOOOM Corporation) established 2011 MICROCABIN CORP. made a subsidiary 2011 NEX ENTERTAINMENT CO., LTD. made a subsidiary 2013 F Corporation (currently XAAX Inc.) established The digital comics fields entered as part of multifaceted IP development efforts 2010 2008 Digital comics distribution began, following investment in Bbmf Magazine, inc. 2012 Sold shares in Bbmf Magazine, inc. The comics field entered to create IP 2010 2011 2012 Publishing company HERO’S INC. jointly established with Shogakukan Creative INC. Publishing of “HERO’S Monthly” magazine began Published “HERO’S Comics” Toward holding/cultivating IP 2010 Tsuburaya Productions Co., Ltd., owner of the “Ultraman” series and other high-quality IP, made a subsidiary 2010 Digital Frontier Inc. made a subsidiary; Provision of high-quality video technology began The movie production field entered to acquire and cultivate IP 2012 Source: Fields Announced “Developing Business Model” based on characters and other IP with the aim of maximizing IP value Copyright 2014 FIELDS CORPORATION All rights reserved. 13 Developing Business Model FIELDS CORPORATION The Greatest Leisure for All People Animation Comics Enhance added value of stories and characters with cutting-edge technology, for example by using computer graphics Acquire and create original works, stories, and characters Intellectual Property (IP) Create series Merchandising Movies/TV Interactive media Consumer Products Pachinko/Pachislot Distribute animated content around the world, and expand fan base Utilize IP in each media to generate revenue FIELDS CORPORATION The Greatest Leisure for All People Main group companies Company name HERO’S Properties Corporation Comics Animation Movies/TV (As of September 30, 2014) Holding ratio of voting rights Paid-in capital (Million yen) Address 100.0 10 Shibuya-ku, Tokyo HERO’S INC. 49.0 10 Shibuya-ku, Tokyo Kadokawa Haruki Corporation Consumer Products Pachinko/Pachislot Source: Fields Investment date Planning, development and sales of character goods and other copyright goods Comic magazine and character contents planning, operation and production Planning, producing, editing, publishing and selling books and magazines Aug. 2011 Apr. 2010 30.0 757 Chiyoda-ku, Tokyo Lucent Pictures Entertainment, Inc. 100.0 20 Shibuya-ku, Tokyo Planning, production and producing of animations Digital Frontier Inc. 86.9 31 Shibuya-ku, Tokyo CG planning and production, etc. Apr. 2010 SPO Entertainment Inc. 31.8 Movie planning, production and distribution, etc. Mar. 2008 IP Bros. Inc. 85.0 75 Shibuya-ku, Tokyo Digitization of intellectual properties and Construction and management of dedicated pachinko/pachislot websites Dec. 2010 87.7 60 Shibuya-ku, Tokyo Mobile contents service provider and mail order Oct. 2006 69.8 92 Shibuya-ku, Tokyo Computer software planning, production, and sales, etc. Nov. 2011 95.0 5 Shibuya-ku, Tokyo Running fitness gym May 2011 51.0 310 Shibuya-ku, Tokyo Movie/TV planning and production Character goods planning, production and sales Apr. 2010 Fields Jr. Corporation 100.0 10 Shibuya-ku, Tokyo Pachinko/pachislot machine maintenance, etc. Mar. 2002 Shinnichi Technology Co., Ltd. 100.0 50 Shibuya-ku, Tokyo Development of pachinko/pachislot machine Jan. 2008 MICROCABIN CORP. 100.0 227 Yokkaichi-shi, Mie Planning and development of software for commercial-use machine Jan. 2011 BOOOM Corporation 51.0 10 Shibuya-ku, Tokyo Pachinko/pachislot machine planning and development May 2009 RODEO Co., Ltd. 35.0 100 Toshima-ku, Tokyo Pachinko/pachislot machine development and manufacturing Mar. 2002 G&E Corporation 33.3 450 Shibuya-ku, Tokyo Running business schools focused on entertainment field May 2005 371 Minato-ku, Tokyo Merchandising Interactive Media Business activities FutureScope Corp. NEX ENTERTAINMENT CO., LTD. Total Workout premium management Inc. Tsuburaya Productions Co., Ltd. Copyright 2014 FIELDS CORPORATION Mar. 2005 Oct. 2007 All rights reserved. 14 FIELDS CORPORATION The Greatest Leisure for All People Business Model (PS Planning, Development and Sales) (As of September 30, 2014) Sammy Group SANKYO Group KYORAKU SANGYO Group RODEO Bisty OK!! Universal Entertainment Group NANASHOW Mizuho Daiichi Shokai Group CAPCOM Group D-light Enterrise TV/movies, animation, sports and other (Rights/Product planning and development) Development Manufacturing Pachislot From 2000 Development Manufacturing Pachinko Development Manufacturing Development Manufacturing Pachislot Pachislot From 2014 Pachinko From 2012 From 2003 From 2003 Development Manufacturing April 2014 April 2014 Alliance Alliance Pachislot From 2011 (総販売元) Pachinko Halls * The Company has held several discussions with Sammy and RODEO regarding the overall approach to the business partnership going forward, including Basic Agreement on Exclusive Sales Agency Transactions Regarding Sales and Purchases of Pachislot Machines. FIELDS CORPORATION The Greatest Leisure for All People Accounting Method of Pachinko/Pachislot Sales (Image) <Agency sales> Manufacturers Pachinko machine フィールズ <Distribution sales> Manufacturers Pachislot machine フィールズ Commission payment Commission payment Agency Commission sales Gross profit Recorded in the following month Manufacturing cost Manufacturing cost Whole sales Machine sales Cost of Machine’s purchase Machine sales Gross profit Commission payment Gross profit Gross profit <Price: ¥250,000 - ¥400,000> Source: Fields ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. ©Sammy ©RODEO ©カラー ©Bisty ©創通・サンライズ ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. <Price: ¥350,000 - ¥450,000> Recorded in the month ©UNIVERSAL ENTERTAINMENT ©MIZUHO ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. ©オッケー. Copyright 2014 FIELDS CORPORATION All rights reserved. 15 Business Flow and Accounting Method of Merchandising Rights Regarding Pachinko/Pachislot Planning and Development FIELDS CORPORATION The Greatest Leisure for All People Balance Sheet Licensee Profit and Loss MG: Minimum Guarantee OR: Over Royalty (2) MG payment (1) Gaining merchandising rights (6) OR payment Asset (Advance payment for merchandising rights) Cost (Merchandising rights cost) (3) Merchandising rights sales (Sub-licensing) (4) MG receiving FIELDS CORPORATION (Pachinko/Pachislot Machines Sold) Decrease in asset (Advance payment for merchandising rights) Partners Sales/Cost Pachinko/Pachislot Manufacturers (Merchandising rights sales/Cost) (5) OR receiving Sales (Merchandising rights sales) FIELDS CORPORATION The Greatest Leisure for All People Glossary of Fields’ Pachinko/Pachislot Machine Sales Pachinko/Pachislot Manufacturers *5 Transport of machines (Direct) Pachinko Machines (Some Pachislot Machines) Payment of commission Remittance of sales amount *1 *5 Transport of machines Pachislot Machines (Direct) *2 Agency sales Purchase of machines Distribution sales FIELDS CORPORATION Consignment *3 Direct sales Secondary Agent Sales *4 Indirect sales Pachinko/Pachislot Halls (Pachinko/Pachislot users) *1 Agency sales :Sales and profit by commission *2 Distribution sales :Sales and profit by purchase of machines *3 Direct sales :Direct sales by own sales force *4 Indirect sales :Indirect sales through secondary agents *5 Transport of machines :Direct transport of machines from manufacturers to Pachinko halls □Sales method Both agency and distribution sales activities are the same Source: Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 16 Cumulative Number of Pachinko/Pachislot Series Sold (by Main IP) FIELDS CORPORATION The Greatest Leisure for All People (As of September 30, 2014) “Evangelion” series “Hiroshi Motomiya’s “Game IP” series “Comics, animation IP” series works” series “Live action in Japan” series ■Major title Pachinko machines ・The Beginning and the End ・Onimusha: Dawn of Dream ・The Angels Are Back Again ・TEKKEN ・Salaryman Kintaro ・Ore no Sora ・BERSERK ・GHOST IN THE SHELL Pachislot machines ・Magokoro wo Kimini ・That time has come, they’re waiting for us ・Salaryman Kintaro ・Ore no Sora ・KAZENOYOUJINBOU ・MOBILE SUIT GUNDAM ・Onimusha 3 ・Pachislot Monster Hunter ・Seven Samurai ・Shimizu no Jirocho ■Cumulative titles sold Pachinko machines 8 8 3 12 2 Pachislot machines 8 16 7 21 0 16 24 10 33 2 Pachinko machines 1,439,000 182,000 90,000 171,000 100,000 Pachislot machines 492,000 596,000 360,000 278,000 - 1,931,000 778,000 450,000 449,000 100,000 Total ■Cumulative number of units sold (unit: machines) Total * Pachinko number of titles sold excludes reused machines and machines with specifications changes. Number of Pachinko/Pachislot Machines Sold (Details) FIELDS CORPORATION The Greatest Leisure for All People (Unit: Machines) 3. 2010 Number of machines sold 3. 2011 3. 2012 3. 2013 3. 2014 3. 2015 H1 H2 Full H1 H2 Full H1 H2 Full H1 H2 Full H1 H2 Full H1 274,144 175,736 449,880 293,128 187,145 480,273 151,254 261,136 412,390 101,103 227,007 328,110 171,905 221,077 392,982 102,119 266,284 64,450 330,734 226,620 35,994 262,614 89,264 143,959 233,223 46,823 53,170 99,993 110,276 52,603 162,879 73,910 97.1% 36.7% 73.5% 77.3% 19.2% 54.7% 59.0% 55.1% 56.6% 46.3% 23.4% 30.5% 64.1% 23.8% 41.4% 72.4% 7,860 111,286 119,146 66,508 151,151 217,659 61,990 117,177 179,167 54,280 173,837 228,117 61,629 168,474 230,103 28,209 2.9% 63.3% 26.5% 22.7% 80.8% 45.3% 41.0% 44.9% 43.4% 53.7% 76.6% 69.5% 35.9% 76.2% 58.6% 27.6% 255,570 67,177 322,747 228,042 40,130 268,172 91,839 148,505 240,344 52,274 57,008 109,282 116,235 55,492 171,727 77,422 93.2% 38.2% 71.7% 77.8% 21.4% 55.8% 60.7% 56.9% 58.3% 51.7% 25.1% 33.3% 67.6% 25.1% 43.7% 75.8% 18,574 108,559 127,133 65,086 147,015 212,101 59,415 112,631 172,046 48,829 169,999 218,828 55,670 165,585 221,255 24,697 6.8% 61.8% 28.3% 22.2% 78.6% 44.2% 39.3% 43.1% 41.7% 48.3% 74.9% 66.7% 32.4% 74.9% 56.3% 24.2% 145,626 367,147 239,336 156,701 396,037 123,142 223,672 346,814 81,336 187,610 268,946 144,481 179,486 323,967 86,597 ■Sales ratio Pachinko Pachislot ■Agency/Distribution sales ratio Agency sales Distribution sales ■Direct/Indirect sales ratio Direct sales Indirect sales Source: Fields 221,521 80.8% 82.9% 81.6% 81.6% 83.7% 82.5% 81.4% 85.7% 84.1% 80.4% 82.6% 82.0% 84.0% 81.2% 82.4% 84.8% 52,623 30,110 82,733 53,792 30,444 84,236 28,112 37,464 65,576 19,767 39,397 59,164 27,424 41,591 69,015 15,522 19.2% 17.1% 18.4% 18.4% 16.3% 17.5% 18.6% 14.3% 15.9% 19.6% 17.4% 18.0% 16.0% 18.8% 17.6% 15.2% Copyright 2014 FIELDS CORPORATION All rights reserved. 17 FIELDS CORPORATION The Greatest Leisure for All People Titles of Pachinko Machines Sold (3.2002-3.2014) * The figures are the cumulative number of units sold. Sammy (Cumulative total: 378,000) (Unit: Machines) Bisty (Cumulative total: 1,982,000) Sold 3.2014 Sold 12,000 Pachinko Onimusha: Dawn of Dreams*1 33,000 CR TEKKEN 18,000 New-century Pachinko BERSERK 23,000 CR EVANGELION 8 75,000 - Evangelion 7 Smile Model 3. 2011 3. 2010 3. 2009 CR Virtua Fighter 11,000 FIELDS CORPORATION The Greatest Leisure for All People 3. 2008 CR Sakura Taisen 3. 2007 CR SEACOP CR Salaryman Kintaro 2 CR Gamera Extreme Battle 3. 2006 CR Sakigake!! Otoko Juku CR Super Jetter CR Azumi CR K-1 PREMIUM Dynamite!! 3. 2005 CR Ore no Sora CR Bakumatsu no kaze CR LINDA 3. 2004 CR Rikidozan CR Sonic CR CITY HUNTER CR Ume Matsu Paradise 3. 2003 CR GEN JU HAOU 3. 2002 CR Salaryman Kintaro 41,000 28,000 - New-century Pachinko GHOST IN THE SHELL: STAND ALONE COMPLEX GHOST VERSION New-century Pachinko 16,000 GHOST IN THE SHELL: STAND ALONE COMPLEX 16,000 100,000 12,000 CR Sengoku BASARA 3 —The Battle of Sekigahara 3. 2012 Sold CR EVANGELION 8 Premium Battle CR Beyond the Heavens 3. 2013 OK!! (Cumulative total; 90,000) EVA Light III CR Evangelion 7 CR The story of ayumi hamasaki Sweet/Light Version CR The story of ayumi hamasaki —introduction CR Kung Fu Panda CR Evangelion —Evangelical of the beginnings Light ver. CR Shimizu no Jirocho Light ver. CR Evangelion —Evangelical of the Beginnings CR Neon Genesis Evangelion —The Beginning and the End CR Iron Chef CR GTO CR Neon Genesis Evangelion —The Angels Are Back Again YF CR Shimizu no Jirocho —The Bonds of Life CR Mystic Blue CR King Kong CR Seven Samurai CRA Morning Musume CRA Neon Genesis Evangelion Premium Model CR Neon Genesis Evangelion —The Angels Are Back Again CR Tomb Raider CRA Felix the Cat CR The Mask of Zorro CR LOONEY TUNES BIA CR Neon Genesis Evangelion —Kiseki no Kachiwa CR WINK CR Aya Matsuura CR Otoko Ippiki Gaki Daisho CR Shin Sangoku Musou 29,000 CR Neon Genesis Evangelion: Second Impact - CR Ashita ga arusa Yoshimoto World 26,000 11,000 72,000 11,000 205,000 230,000 23,000 11,000 21,000 82,000 50,000 200,000 187,000 11,000 40,000 27,000 161,000 38,000 - CR Marilyn Monroe - CR Iijima Naoko no Casino Bisty CR Daimajin 30,000 CR Kahara Tomomi to Minashigo Hatchi 13,000 CR Neon Genesis Evangelion 25,000 CR Circuit e ikou! CR FEVER TWINS 40,000 CR FEVER KUNG-FU GAL 27,000 36,000 24,000 13,000 24,000 39,000 21,000 10,000 41,000 125,000 11,000 14,000 * Regarding the titles of pachinko/pachislot machines for which the number of machines sold was less than 10,000, the number of machines sold was not disclosed. * Sold Olympia’s pachinko machine “CR PROJECT MINERVA” for the year ended March 31, 2007 *1 To be posted in April 2014 Source: Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 18 Titles of Pachislot Machines Sold (3.2001-3.2014) FIELDS CORPORATION The Greatest Leisure for All People * The figures are the cumulative number of units sold. RODEO (Cumulative total: 1,364,000) 3. 2014 Kaiji3* Shin3. 2013 Pachislot Onimusha Sairin SAKIGAKE OTOKOJUKU―TE NCHO-GORIN THE FINAL 3. 2012 Pachislot Monster Hunter Rahxephon Kaze no Youjinbou ―Memory of Butterflies 3. 2011 Gravion Ore no Sora ―Spirit of Young Justice Gamera 3. 2010 Onimusha: Dawn of Dreams Hono-no Nekketsu Kyoshi 3. 2009 Kaiji Act 2 Tenchi wo Kurau Sonic Live 3. 2008 Tenka Muteki! Salaryman Kintaro Bisty Sold (Cumulative total: 680,000) 25,000 Evangelion —Ketsui no Toki MOBILE SUIT GUNDAM PACHISLOT ULTRAMAN WARS 41,000 EVANGELION 24,000 Yaoh GTO Limit Break Evangelion 96,000 —the Heartbeat of Life - SAMURAI 7 3. 2006 Ore no Sora Dokonjo Gaeru 3. 2005 Onimusha 3 Kaiji Umematsu Dynamite Wave! 3. 2004 Gamera -High Grade Vision WANTOUCHABLE (Sammy) JET SET RADIO Charlie’s Angels FT Sloter Kintaro Yajyu 3. 2003 KAZENOYOUJINBOU SNOW KING Salaryman Kintaro S CLUB RODEO T Ginginmaru 3. 2002 Ichigeki Teio 2 Salaryman Kintaro DOUBLE CHALLENGE Oo-Gamera 3. 2001 INDY JAWS 2 Gamera 13,000 Enterrise (Cumulative total: 145,000) Pachislot Monster Hunter: Gekka Raimei 25,000 Devil May Cry 4 Sold Sold (Unit: Machines) Mizuho Sold Sold (Cumulative total: 54,000) GOD 54,000 45,000 ANOTHER HADES 25,000 23,000 Resident Evil 5 57,000 48,000 Street Fighter IV 47,000 - 13,000 23,000 MOBASLO - Evangelion —for your own wish Magical Shopping 38,000 Arcade Abenobashi Sengoku BASARA 2 78,000 16,000 - 13,000 90,000 Saturday Night Fever Neon Genesis Evangelion - —Die Spur der SEELE 18,000 KING KONG Neon Genesis Evangelion—That - time has come, now they’re waiting for us - 18,000 Beach Club Neon Genesis Virtua Fighter 10,000 Evangelion —‘Magokoro wo Kimini’ FIELDS TheCORPORATION Mask of Zorro - Morning Musume The Greatest Leisure for All People Cream Stew Devil May Cry 3 48,000 Otoko 3. 2007 Sakigake!! 17,000 SHERLOCK Juku HOUND PREMIUM - GTO Dynamite Dokaben Olympia (Cumulative total: 75,000) - ROCKY BALBOA Tomb Raider Lord of the Rings Neon Genesis 125,000 Evangelion 120,000 Dai Yamato 29,000 Fever Natsumatsuri - Aim for the Ace! 84,000 I am KONISHIKI - 90,000 - Shin Sangokumusou 99,000 Kaiketsu Harimau - - - Karate-Baka Ichidai - - KING OF MOUSE LOONEY TUNES: - BACK IN ACTION 60,000 23,000 Geronimon S 30,000 Mezase 12,000 Dokidoki Zima - - - 36,000 61,000 KAIZOKU - Ougonshin 13,000 22,000 52,000 14,000 53,000 43,000 31,000 17,000 118,000 31,000 32,000 23,000 29,000 * Regarding the titles of pachinko/pachislot machines for which the number of machines sold was less than 10,000, the number of machines sold was not disclosed. * RODEO includes the sales number of “Kaiji 3” from GINZA Corporation released in the year ended March 31, 2014. Source: Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 19 FIELDS CORPORATION The Greatest Leisure for All People Change of “Evangelion” Series Pachinko machines Pachislot machines Neon Genesis Evangelion 3. 2005 Dec. 2004 125,000 machines 3. 2006 Second Impact Neon Genesis Evangelion Feb. 2006 161,000 machines Sep. 2005 23,000 machines 3. 2007 Kiseki no Kachiwa Feb. 2007 187,000 machines The Angels Are Back Again Jan. 2008 200,000 machines Type less reliant on gambling nature/ reused machines 3. 2008 Magokoro wo Kimini Jul. 2007 99,000 machines 3. 2009 That time has come, they’re waiting for us Sep. 2008 90,000 machines Premium Model May 2008 50,000 machines The Beginning FIELDS CORPORATION andforthe The Greatest Leisure All End People Apr. 2009 237,000 machines Evangelical of the Beginnings Jun. 2010 205,000 machines The Angels Are Back Again YF Jan. 2010 24,000 machines 3. 2010 Die Spur der SEELE Mar. 2010 84,000 machines 3. 2011 Evangelical of the Beginnings Light ver. Nov. 2010 9,000 machines For your own wish Mar. 2011 78,000 machines 3. 2012 The Heartbeat of Life Evangelion 7 Jan. 2012 100,000 machines Feb. 2012 47,000 machines EVA Light III May 2012 16,000 machines EVANGELION 8 Jul. 2013 75,000 machines EVANGELION7 Smile Model Dec. 2012 12,000 machines 3. 2013 EVANGELION Feb. 2013 57,000 machines 3. 2014 Ketsui no Toki Feb. 2014 13,000 machines Premium Battle Jan. 2014 12,000 machines Extreme Battle Jul. 2014 on sale 3. 2015 EVANGELION 9 on sale Source: Fields ©GAINAX/Project Eva.・テレビ東京 ©Bisty ©GAINAX・カラー/Project Eva. ©Bisty ©カラー ©Bisty ©GAINAX・カラー/Project Eva. ©カラー ©Bisty ©GAINAX・カラー/Project Eva. ©カラー Copyright 2014 FIELDS CORPORATION All rights reserved. 20 Change in Quarterly P/L Statement (Table) FIELDS CORPORATION The Greatest Leisure for All People 【 Consolidated 】 (Unit: Millions of yen) 3. 2013 Q1 Q2 3. 2014 Q3 Q4 Full Q1 3. 2015 Q2 Q3 Q4 Full Q1 Q2 Q3 Q4 Full-year forecast 21,145 7,973 18,627 60,396 108,141 5,748 30,637 17,819 60,700 114,904 7,459 12,882 100,000 5,566 3,258 6,239 18,216 33,279 2,027 11,621 5,709 14,455 33,812 2,790 4,130 - 5,282 5,402 5,535 6,745 22,964 5,856 5,615 5,849 6,700 24,020 5,300 5,698 - Operating income 283 (2,142) 703 11,470 10,314 (3,829) 6,005 (140) 7,755 9,791 (2,509) (1,568) 5,000 Ordinary income 574 (2,312) 763 11,243 10,268 (3,759) 5,903 (78) 7,699 9,765 (2,254) (1,818) 5,000 Net income 342 (1,322) 303 5,397 4,720 (2,290) 3,724 (207) 4,143 5,370 (1,502) (1,007) 2,500 Net sales Gross profit SG & A expenses 3. 2010 Q1 Q2 Q3 3. 2011 3. 2012 Q4 Full Q1 Q2 Q3 Q4 Full Q1 Q2 Q3 Q4 Full 16,038 5,406 3,077 41,821 66,342 21,344 21,668 28,421 32,160 103,593 17,635 15,717 9,709 49,134 92,195 12,402 707 888 12,892 26,889 7,663 11,328 7,292 8,846 35,129 5,076 6,907 4,343 15,004 31,330 SG & A expenses 3,877 3,845 4,906 6,136 18,764 5,314 4,495 5,775 6,409 21,993 5,302 5,099 5,903 6,499 22,803 Operating income 8,524 (3,138) (4,018) 6,756 8,124 2,348 6,834 1,517 2,437 13,136 (225) 1,807 (1,560) 8,505 8,527 Ordinary income 8,519 (3,468) (3,961) 6,671 7,761 2,518 6,985 1,980 2,201 13,684 (266) 1,979 (1,607) 8,555 8,661 Net income 4,711 (2,530) (2,454) 3,562 3,289 1,477 3,951 1,043 1,049 7,520 (284) 2,712 (1,296) 4,859 5,991 Net sales Gross profit FIELDS CORPORATION Greatest Leisure for All People】 【TheNon-Consolidated (Unit: Millions of yen) 3. 2013 Q1 Q2 3. 2014 Q3 Q4 Full Q1 3. 2015 Q2 Q3 Q4 Full Q1 Q2 Q3 Q4 Full 19,199 5,590 16,207 56,305 97,301 4,170 28,048 14,456 56,898 103,572 5,431 10,086 - 5,011 2,417 5,367 16,546 29,341 1,403 10,916 4,634 13,639 30,592 2,343 3,329 - 4,406 4,537 4,667 5,707 19,317 4,985 5,012 5,175 5,893 21,065 4,646 5,066 - Operating income 605 (2,120) 701 10,837 10,023 (3,582) 5,903 (540) 7,746 9,527 (2,302) (1,738) - Ordinary income 806 (2,052) 851 10,614 10,219 (3,339) 5,929 (319) 6,975 9,246 (1,879) (1,781) - Net income 452 (1,229) 530 6,330 6,083 (2,004) 3,246 (109) 3,449 4,582 (1,120) (790) - Net sales Gross profit SG & A expenses 3. 2010 Q1 Net sales Q2 Q3 3. 2012 3. 2011 Q4 Full Q1 Q2 Q3 Q4 Full Q1 Q2 Q3 Q4 Full 14,905 4,328 1,739 40,385 61,357 18,310 18,695 25,165 28,801 90,971 15,349 13,132 7,276 44,637 80,394 11,901 332 232 12,028 24,493 6,542 10,137 6,004 7,514 30,197 4,059 6,015 3,249 13,713 27,036 SG & A expenses 3,277 3,243 4,043 5,312 15,875 4,166 3,316 4,639 5,156 17,277 4,165 4,051 5,065 5,553 18,834 Operating income 8,623 (2,911) (3,811) 6,717 8,618 2,375 6,821 1,366 2,358 12,920 (106) 1,964 (1,817) 8,161 8,202 Ordinary income 8,761 (2,900) (3,693) 6,662 8,830 2,505 6,911 1,558 2,477 13,451 11 2,128 (1,713) 8,070 8,496 Net income 5,119 (2,064) (2,107) 3,575 4,538 1,362 3,984 766 714 6,826 (101) 1,221 (938) 4,723 4,905 Gross profit * Q2-Q4 figures are calculated on this sheet above. Source: Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 21 FIELDS CORPORATION The Greatest Leisure for All People Financial Highlights (3.2003-3.2008) *The numbers in upper parenthesis indicate YoY. (Unit: Millions of yen) 3. 2003 Net sales 3. 2004 3. 2005 (107.0) 3. 2006 (123.3) 3. 2007 (118.6) 15,992 21,578 9,211 9,711 6,781 11,866 7,022 12,209 3,524 6,620 6,926 7,085 3,710 5,296 Common stock 1,295 1,295 7,948 7,948 7,948 7,948 Net assets 8,752 14,507 33,426 39,411 42,836 46,331 17,090 37,115 72,584 87,556 66,081 69,168 Cash flows from operating activities 3,316 851 2,965 6,164 5,293 11,127 Cash flows from investing activities (2,253) (3,190) (5,257) (2,224) (4,772) (14,604) Cash flows from financing activities (2,454) 2,029 10,177 (1,540) 1,488 (1,384) 5,739 5,437 13,326 15,777 17,819 12,693 SG&A expenses Operating Income Ordinary income Net income Total assets Cash and cash equivalents at end of the year (105.4) (175.0) (173.9) (187.9) (114.7) (120.1) 24,752 29,737 (130.3) (137.4) 12,655 17,389 (101.9) (102.1) 12,097 12,348 (102.2) (105.2) 12,480 13,127 (104.6) (102.3) 85,321 (119.3) 66,211 (134.9) 96,814 (88.1) 61,888 Gross profit 81,658 3. 2008 (98.4) 29,248 (116.8) 20,303 (72.4) 8,944 (70.1) 9,202 (52.4) (118.1) 34,544 (105.3) 21,385 (147.1) 13,158 (127.2) 11,705 (142.7) (Unit: Yen) FIELDS CORPORATION Indicators perLeisure share for All People The Greatest 101,818 3. 2003 Net assets per share 3. 2004 268,600 3. 2005 89,305 3. 2006 96,026 3. 2007 113,275 3. 2008 118,487 128,201 24,000 4,500 Commemorative 4,000 4,000 4,000 Commemorative 10,000 10,000 500 Interim 10,000 Interim 2,000 Interim 2,000 Interim 2,000 Interim 2,000 Year-end 4,000 Year-end 2,000 Year-end 2,000 Year-end 2,000 Year-end 2,000 Annual dividend per share Net income per share 117,233 40,465 19,888 20,118 10,692 15,263 (Unit: %) Management indicators 3. 2003 3. 2004 3. 2005 3. 2006 3. 2007 3. 2008 Shareholders' equity ratio 51.2 39.1 46.0 45.0 62.2 64.3 Return on equity (ROE) 55.9 56.9 28.9 19.5 9.2 12.4 Return on assets (ROA) 39.3 45.0 22.8 16.4 12.0 17.3 20.1 20.7 20.3 37.4 29.5 Payout ratio 7.9 (1) Other Total number of shares issued and outstanding (shares) Treasury stock (shares) Number of employees (people) 3. 2003 (3) (2) 3. 2004 32,300 3. 2005 3. 2006 3. 2007 3. 2008 161,500 347,000 347,000 347,000 347,000 - - - - - - 460 651 758 901 1,022 1,077 (3) (1) Consolidated payout ratio after the year ended March 31, 2007. (2) Payout ratio for the year ended March 31, 2004 was computed including a commemorative dividend. (3) January 2003 1:5 stock split/Year ended March 31, 2004 1:2 stock split. Source: Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 22 FIELDS CORPORATION The Greatest Leisure for All People Financial Highlights (3.2009-H1 3.2015) * The numbers in upper parenthesis indicate YoY. (Unit: Millions of yen) 3. 2009 3. 2010 (71.7) Net sales 73,035 Gross profit 24,024 SG&A expenses 22,063 Operating Income (69.5) (103.2) (14.9) 1,960 (8.5) Ordinary income Net income 991 (-) 3. 2011 (90.8) 66,342 (111.9) 26,889 (85.0) 18,764 (414.5) 8,124 (783.1) 7,761 (-) (156.1) 103,593 (130.6) 35,129 (117.2) 21,993 (161.7) 13,136 (176.3) 13,684 (228.6) 3. 2012 3. 2013 (89.0) 3. 2014 (117.3) 92,195 108,141 (89.2) (106.3) 114,904 (106.2) 31,330 (103.7) 33,812 (100.7) (64.9) 24,020 (121.0) (63.3) 9,791 (118.6) (-) (4,077) (95.1) 10,268 (79.7) (95.9) 10,998 (94.9) 10,314 8,661 (50.7) 6,920 (104.6) 22,964 8,527 (55.9) 20,341 (101.6) 33,279 22,803 H1 3. 2015 9,765 (78.8) (-) (4,072) (113.8) (-) (1,481) 3,289 7,520 5,991 4,720 5,370 (2,509) 7,948 7,948 7,948 7,948 7,948 7,948 7,948 Net assets* 39,496 41,187 47,021 51,555 55,098 58,753 55,014 Total assets* 52,064 81,329 78,971 93,601 106,628 104,869 70,408 4,147 8,429 8,005 10,015 13,570 16,322 (11,111) (6,182) (1,011) (4,356) (4,798) (6,263) (8,018) (1,092) 602 (2,687) (3,915) (2,565) (2,277) (2,018) (1,200) 11,181 15,906 15,632 18,284 23,309 29,583 16,178 Common stock* Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of the year FIELDS CORPORATION The Greatest Leisure for All People Indicators per share Net assets per share* Annual dividend per share Net income per share (Unit: Yen) 3. 2009 3. 2010 3. 2011 3. 2012 3. 2013 (4) 3. 2014 H1 3. 2015 117,326 123,645 140,853 153,904 1,644.15 4,500 4,500 5,000 5,000 50 50 (Forecast) 50 25 Interim 25 Year-end 25 Interim 25 Year-end Interim 2,000 Interim 2,000 Interim 2,500 Interim 2,500 Interim Year-end 2,500 Year-end 2,500 Year-end 2,500 Year-end 2,500 Year-end (4,271) 9,796 22,643 18,044 1,756.27 142.27 161.83 (4) The number of shares to constitute a share-trading unit was changed to 100 shares in October 2012. The figure given for the interim dividend for the year ended March 31, 2013 takes a stock split into account. Management indicators 3. 2009 3. 2010 3. 2011 3. 2012 1,642.50 25 25 (75.63) (Unit: %) 3. 2013 3. 2014 H1 3. 2015 Shareholders' equity ratio 75.8 50.5 59.2 54.6 51.2 55.6 77.4 Return on equity (ROE) (3.5) 8.2 17.1 12.2 8.9 9.5 (4.5) Return on assets (ROA) 1.6 11.6 17.1 10.0 10.3 9.2 (4.6) - 45.9 22.1 27.7 35.1 30.9 - Payout ratio Other Total number of shares issued and outstanding (shares) Treasury stock (shares) Number of employees (people) 3. 2009 3. 2010 3. 2011 3. 2012 3. 2013 (4) 3. 2014 H1 3. 2015 347,000 347,000 347,000 347,000 34,700,000 34,700,000 34,700,000 10,643 14,885 14,885 15,162 1,516,200 1,516,200 1,516,200 827 909 1,149 1,324 1,416 1,588 1,677 * For “common stock,” “net assets,” “total assets” and “net assets per share” for the year ending March 31, 2015, the figures as of the second quarter of the year ending March 31, 2015 are given. Source: Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 23 Change in Financial Results (Graph) (Consolidated) FIELDS CORPORATION The Greatest Leisure for All People Net sales 120,000 108,141 103,593 15,000 66,342 43,012 40,000 5,000 33,352 29,118 3. 2010 15,000 20,341 5,386 2,176 0 3.2011 3.2012 3.2013 3.2014 H1 3. 2015 7,761 (5,000) 3. 2010 3.2011 3.2012 3.2013 (4,077) 3.2014 H1 3. 2015 Net income 9,000 13,684 10,000 10,268 9,503 8,661 9,765 7,520 3,000 5,991 5,428 6,000 5,051 3,289 2,184 5,370 4,720 2,428 1,434 2,144 1,713 0 0 (980) (1,738) (3,000) (4,072) (5,000) 3. 2010 3.2011 3.2012 FIELDS CORPORATION The Greatest Leisure for All People 3.2013 3.2014 H1 3. 2015 3. 2010 3.2011 3.2012 3.2013 3.2014 (2,509) H1 3. 2015 Change in Assets/Liabilities, Net Assets (Graph) (Consolidated) (Unit: Millions of yen) Change in liabilities/net assets Change in assets (1) (3) (5) (1) Investments and other assets (2) Intangible fixed assets (3) Tangible fixed assets (4) Other current assets (5) Notes and accounts receivable—trade (6) Cash and cash deposits 120,000 Net assets Other current liabilities Notes and accounts payable—trade (2) (4) Other fixed liabilities Interest-bearing liabilities 120,000 106,628 100,000 93,601 81,329 80,000 15,916 78,971 9,721 2,333 29,583 42,017 29,155 7,230 10,089 5,070 81,329 16,178 (6) 10,065 10,980 4,372 7,378 11,151 4,540 8,183 11,955 12,104 12,314 4,365 4,390 (2) 20,000 (4) 40,000 17,939 2,230 8,515 1,834 8,779 3,397 12,760 15,437 18,226 21,477 19,951 3. 2010 3 .2011 3. 2012 3. 2013 3. 2014 H1 3. 2015 104,869 36,604 33,105 1,052 9,818 743 7,933 4,336 29,100 1,660 7,604 3,682 4,055 70,408 (5) (4) (3) (2) 5,586 400 5,279 4,128 2,785 (3) 12,578 Source: Fields 78,971 26,610 60,000 5,618 (5) 106,628 93,601 80,000 70,408 27,948 40,000 7,690 100,000 18,344 34,402 33,088 23,314 104,869 15,873 60,000 0 9,791 8,527 1,582 Ordinary income 20,000 10,314 9,182 (1,859) 0 5,000 8,124 36,385 21,444 ■ Full-Year (Unit: Millions of yen) 13,136 10,000 60,000 20,000 114,904 92,195 100,000 80,000 ■ H1 Operating income 41,187 47,021 51,555 55,098 58,753 55,014 (1) (1) 0 3. 2010 3. 2011 Copyright 2014 3. 2012 3. 2013 FIELDS CORPORATION 3. 2014 H1 3. 2015 All rights reserved. 24 Change in Selling, General and Administrative Expenses (Graph) (Consolidated) FIELDS CORPORATION The Greatest Leisure for All People (Unit: Millions of yen) 3. 2010 3. 2011 3. 2012 3. 2013 3. 2014 H1 3. 2015 Advertising expenditures 3,587 4,006 3,644 2,964 4,305 1,229 Salaries 4,652 5,527 5,728 5,569 5,859 3,109 Provision for accrued bonuses 257 290 246 247 285 18 Provision for accrued bonuses to directors and auditors 135 220 240 230 230 141 Outsourcing expenses 1,373 1,553 2,373 2,608 2,451 1,122 Travel and transport expenses 469 551 542 507 551 292 Depreciation and amortization 1,175 1,393 1,431 1,623 1,268 631 Rent 1,475 1,654 1,749 2,249 2,062 1,017 (6) Provision to allowance for doubtful accounts 249 - (52) (56) (3) Retirement benefit expenses 68 76 86 92 6 59 Amortization of goodwill 87 366 333 319 323 165 Other Total SG&A expenses Advertising expenditures Salaries Outsourcing expenses Advertising (Unit: Millions of yen) expenditures 25,000 Other 11.2% 20,000 31.2% Salaries Amortization 15,000 28.3% of goodwill 1.5% Rent 9.2% 5,237 6,357 6,483 6,608 6,683 3,221 18,764 21,993 22,803 22,964 24,020 10,998 * “Other” is calculated on this sheet above. Depreciation and amortization Rent Amortization of goodwill Travel and transport expenses 21,993 18,764 4,006 3,587 5,527 4,652 Outsourcing 5,000 expenses 10.2% 0 Travel and transport expenses 2.7% Depreciation and amortization 5.7% FIELDS CORPORATION The Greatest Leisure for All People 24,020 22,803 22,964 3,644 2,964 4,305 5,728 5,569 5,859 10,998 1,229 3,109 (1) 10,000 3. 2010 3. 2011 Other 3. 2012 3. 2013 3. 2014 H1 3. 2015 Change in Free Cash Flow (Graph) (Unit: Millions of yen) * Free Cash Flow: Cash flow from operating activities and investing activities CF from operating activities CF from investing activities CF from financing activities Free CF 16,322 16,000 13,570 12,000 8,000 11,199 10,160 9,810 8,461 8,429 10,015 8,005 5,217 5,332 7,418 4,000 3,649 0 (350) (1,199) (1,011) (2,687) (4,000) (2,738) (2,580) 8,304 7,307 2,625 1,070 3,400 (1,932) (1,241) (4,356) (3,915) (1,111) (2,565)(1,555) (1,387) (1,650) (2,277) (2,018) (1,092) (1,200) (4,554) (4,798) (6,263) (8,000) (6,204) (8,018) (11,111) (12,000) (12,203) (16,000) Source: Fields 9. 2009 3. 2010 9. 2010 3. 2011 9. 2011 3. 2012 9. 2012 Copyright 2014 3. 2013 9. 2013 FIELDS CORPORATION 3. 2014 9. 2014 All rights reserved. 25 CSR Activities FIELDS CORPORATION The Greatest Leisure for All People Our corporate activities and CSR should be one and the same Basic approach to CSR 【 Fields Topics 】 Ongoing implementation of power-saving measures Topics 1 The Company will continue to comply with power-saving measures in summer 2014, as in 2013. Measures related to air conditioning equipment: ・Reduction in hours of operation and thorough management of air conditioner temperatures ・Use of lighting reduced and light bulbs changed to LED light bulbs ・Energy-saving multi-function machines adopted Measures related to office equipment: ・Introduction of power-saving office equipment, reductions in standby power use of computers and other equipment Measures in compliance with “Cool Biz” program Description Charity golf tournament support Topics 2 “THE LEGEND CHARITY PRO-AM TOURNAMENT” Date May 17-18, 2014 Activities Proceeds from entree fee, charity auction, sale of tickets to the venue were donated from 2009 Donations Donated to regions affected by the Great East Japan Earthquake for reconstruction support Topics 3 Topics 4 Introduction of the Eco-Car Object Sales cars: 256 Duration September 2009-June 2012 Effect Reduction in CO2 by 480t a year (Equivalent to CO2 absorption of 30,000 cedar trees) Renewed ISO 27001, ISO 9001 Topics 5 Information Security Management System and Quality Management ISO 27001: 2005 July 2013 Certification renewed ISO 9001: 2008 June 2014 Certification renewed Details Upgrading of information security management system Continuous improvement of quality management Topics 6 Establishment of Okinawa working center Activities Employs people with disabilities in Okinawa to promote the employment for people with disabilities Fulfills the social responsibility through offering employment opportunities and a comfortable working place to people with disabilities Active participation in volunteer activities Eco-activities through joining Cleanup Campaign Mar. 2011- Held a Cleanup at Nampeidai-cho (around the Head Office; ongoing on a monthly basis) Establishment Date April 1, 2010 (Opening ceremony: April 5, 2010) Jun. 2013 Collected plastic bottle caps and used stamps Business Activities Business of data imputing, etc. of office-related matters Oct. 2013 Support for the Be Smile Project and visits to child welfare facilities in Nagasaki prefecture Dec. 2013 Participation in fiscal 2013 mochi-tsuki (rice-cake pounding) festival of Nampeidai-cho, Shibuya ward neighborhood association Held a Cleanup at Yoyogi Park (joint activity with ARTNATURE INC.) Mar. 2014 FIELDS CORPORATION Joined “Cleanup Campaign Kugenuma Beach” organized by JEAN Apr. 2014 The Greatest Leisure for All People Joined the Shibuya Ward Cleanup Day (Shibuya Day, April 28), Apr. 2014 sponsored by Shibuya ward in Tokyo Sep. 2014 Joined “Cleanup Campaign Kugenuma Beach” organized by JEAN Topics 7 Introduction of AED* (*Automatic External Defibrillator) Activities Installed a numbers of AED at visible places in the office building such as nearby entrance to allow visitors and neighborhood residents to use, as well as employees. Employees took instruction course of AED. Date From January 7, 2011 Installation Site Head office, 7 regional offices, 26 branches Okinawa working center and Total Workout (gym) a total of about 52 places 【 Group Companies Topics 】 Tsuburaya Productions Co., Ltd. Established ULTRAMAN FOUNDATION Tsuburaya Productions Co., Ltd. and other sponsoring corporate group companies established ULTRAMAN FOUNDATION immediately after the Great East Japan Earthquake in March 2011 to support the regions affected by the earthquake. This Foundation provides psychological and material support to children who are the hope for the future and deploys the permanent support activities for children’s future. Overview of ULTRAMAN FOUNDATION 2011 Name ULTRAMAN FOUNDATION Representative Hidetoshi Yamamoto (Tsuburaya Productions Co., Ltd. Chairman & CEO) Establishment March 2011 Organizer Tsuburaya Productions Co., Ltd. 2012 URL http://www.ultraman-kikin.jp/en/ 2013 Statement Ultraman Foundation is a foundation that acknowledges children are the hope for the future, and will provide everlasting support in all kinds of ways for the welfare and well being of all children. It is our mission to bring back the smiles to the faces of each child as soon as possible, and we pray from our heart that the children will move on to their bright future. Slogan Source: Fields A Foundation to support the present and future of the earthquake-affected children 2014 Activities Visits to provide support to regions affected by the earthquake Miyagi prefecture: Ishinomaki, Minamisanriku, Kesennuma, Higashimatsushima, Onagawa Fukushima prefecture: Sukagawa, Koriyama, Iwaki, Fukushima Iwate prefecture: Miyako, Otsuchi Chiba prefecture: Asahi Gifts of donations and other 30 million yen to Miyagi prefecture 20 million yen to Fukushima prefecture 20 million yen and a microbus to Iwate prefectural office Visits to provide support to regions affected by the earthquake Miyagi prefecture: Ishinomaki, Onagawa Fukushima prefecture: Koriyama, Sukagawa Visits to provide support to regions affected by the earthquake Miyagi prefecture: Higashimatsushima Fukushima prefecture: Tomioka Gifts of donations and other 25 million yen and a microbus are donated to each Iwate, Miyagi and Fukushima prefecture “HERO CARAVAN” started in Tohoku in March, 2013 and visited 78 places affected by the earthquake to bring cheer to children. By the end of March 2014 the HERO CARAVAN had visited 79 nursery schools and kindergartens and had touched the lives of over 7,200 children. Held the Genki Festival 2014, a charity event supporting reconstruction following the Great East Japan Earthquake, in collaboration with Antonio Inoki; ULTRAMAN FOUNDATION plans to hold Ultraman Hero shows at 8 halls in Tohoku. Copyright 2014 FIELDS CORPORATION All rights reserved. 26 Corporate Governance System FIELDS CORPORATION The Greatest Leisure for All People Basic Approach to Corporate Governance FIELDS CORPORATION has identified its corporate philosophy as providing “The Greatest Leisure for All People,” and has established a basic management policy of continuously enhancing corporate value. To realize this basic policy, enabling corporate governance system functions is considered to be one of our key management issues. We enhance our corporate governance system by advancing reforms in our management structures and institutions specifically within the framework of the Board of Directors, the Board of Statutory Auditors, the Independent Auditors and the Board of Corporate Officers. General Meeting of Shareholders Nomination and removal Nomination and removal Report Board of Directors Report Report Nomination and removal Nomination and removal Chairman and CEO/ President and COO Independent Auditors Board of Statutory Auditors Audit Nomination/Rejection of nomination/ Approval of removal/ Confirmation of accounting audit/ Verification of independence Cooperation Report Cooperation Internal Audit Office Board of Corporate Officers Cooperation Internal audit Accounting audit Business Operating Divisions Profit Return Policy FIELDS CORPORATION The Greatest Leisure for All People Basic policy: Profit-based dividend/Consolidated payout ratio standard: Higher than 20% (Focus on stability) (Unit: Millions of yen) 3. 2007 3. 2008 3. 2009 3. 2010 3. 2011 3. 2012 3. 2013 3. 2014 3. 2015 E Net income 3,710 5,296 (1,481) 3,289 7,520 5,991 4,720 5,370 2,500 Total dividend 1,388 1,561 1,534 1,503 1,660 1,659 1,659 1,659 1,659 37.4 29.5 - 45.9 22.1 27.7 35.1 30.9 66.4 347,000 347,000 347,000 347,000 347,000 347,000 34,700,000 34,700,000 34,700,000 347,000 347,000 347,000 336,357 332,115 332,115 331,838 33,183,800 - 347,000 347,000 336,357 332,115 332,115 331,838 33,183,800 33,183,800 - Payout ratio (%) Total number of outstanding common stock As of 1st Half (excluding treasury stock) As of Full-Year (excluding treasury stock) (Forecast) Annual dividend Annual dividend Annual dividend Annual dividend Annual dividend Dividend per one unit (Yen) 50 yen 50 yen 50 yen 50 yen 50 yen Interim dividend 20 yen Interim dividend 25 yen Interim dividend 25 yen Interim dividend 25 yen Interim dividend 25 yen Interim dividend 25 yen Year-end dividend 25 yen Year-end dividend 25 yen Year-end dividend 25 yen Year-end dividend 25 yen Year-end dividend 25 yen Year-end dividend 25 yen Annual dividend Annual dividend Annual dividend 45 yen Annual dividend Commemorative Dividend 5 yen 40 yen Interim dividend 20 yen Interim dividend 20 yen Year-end dividend 20 yen Year-end dividend 20 yen 45 yen 45 yen Interim dividend 20 yen Year-end dividend 25 yen * * Interim dividends have increased as of November 4, 2010. * A split of common shares was effected at a ratio of 1:100 with a record date of September 30, 2012, and all amounts are indicated taking the share split into account retroactively. Source: Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 27 FIELDS CORPORATION The Greatest Leisure for All People 4. Appendix II (Pachinko/Pachislot Market Data) FIELDS CORPORATION The Greatest Leisure for All People Copyright 2014 FIELDS CORPORATION All rights reserved. 28 FIELDS CORPORATION The Greatest Leisure for All People Pachinko/Pachislot Market Market Scale of Pachinko/Pachislot Industry Change in Pachinko/Pachislot Market Scale The data is updated every August by “White Paper on Leisure: Japan Productive Center” FY2013 Japanese Leisure Market Total Size of ¥65.2 trillion Total leisure market 90.9 89.2 Sports ¥3.9 trillion (6.0%) Sightseeing / Excursion ¥10.0 trillion Games / Gambling / Eating out (15.4 %) ¥24.2 trillion (37.2 %) Hobby / Creation ¥8.1 trillion (12.6 %) Pachinko/Pachislot market (Unit: Trillions of yen) 87.0 85.5 85.0 82.6 83.2 81.8 81.3 80.2 79.2 30.0 28.4 28.0 28.4 28.6 27.8 29.2 29.6 29.4 28.7 27.4 1996 1998 2000 2002 2004 74.6 72.6 69.4 67.9 64.9 64.7 65.2 22.9 21.7 21.0 19.3 18.8 19.0 18.8 2006 2008 2010 2012 Change in Number of Pachinko/Pachislot Players Pachinko / Pachislot ¥18.8 trillion (28.8 %) The data is updated every August by “White Paper on Leisure: Japan Productive Center” Entertainment Business Institute White Paper on Leisure (Unit: 10 thousand players) 4,423 2,865 2,760 Pachinko/Pachislot is one of the leading forms of leisure in Japan, being played by about 10% of the population in pachinko halls of 11,893 venues 2,998 2,819 2,766 2,310 1,980 2,020 1,930 1996 FIELDS CORPORATION The Greatest Leisure for All People 1998 2,170 2,100 1,860 2000 1,900 1,790 1,823 1,740 1,720 1,670 1,710 1,660 1,580 1,450 1,260 1,110 1,606 970 1,509 1,469 1,345 1,414 2002 2004 2006 2008 2010 2012 *1 Entertainment Business Institute has suspended the survey regarding number of pachinko/pachislot players since 2009. *2 “White Paper on Leisure” has changed the survey method to internet base survey since 2009. Income Structure of Pachinko Halls Pachinko/Pachislot Market Size: ¥18.8 trillion (Total lease amount of pachinko balls) Gross Profit: ¥2.8 trillion Premiums: ¥16.2 trillion (Returned to players) Gross Profit: ¥2.8 trillion New Machine Installment Costs (Purchase cost of new machines) ▼ Investment for Customer Expansion Pachinko Machines: ¥609.9 billion Pachislot Machines : ¥473.3 billion ■ Costs for constructing new halls and refurbishing existing halls ■ Advertising, marketing and service expenses ■ Other expenses related to equipment ■ Other expenses ■ Net income ▼ ▼ ▼ Pachinko/Pachislot Machine Market: Approximately ¥1083.2 billion Hall-related Businesses Net Income Source: “White Paper on Leisure” by Japan Productive Center, “Pachinko Participation Fact-Finding Survey” by Entertainment business Institute, National Police Agency’s data, “Trend and Market Share of Pachinko Related Manufacturers 2012” by Yano Research Institute, and Estimation by Fields Copyright 2014 FIELDS CORPORATION All rights reserved. 29 Players in the Pachinko/Pachislot Industry FIELDS CORPORATION The Greatest Leisure for All People Pachinko/Pachislot Hall Pachinko/Pachislot Manufacturers Direct sales (As of March 31, 2014) ■Around 11,893 in Japan (FY2013) 40% for pachinko and 20% for pachislot ■Neighborhood based ■Large number of small owner operators but some significant chains ■Constant need to attract and retain players ■‘Fickle’ client base ■High machine turnover (every 12 months) ■On average, each machine pays for itself in 3-6 weeks ■Regulated Distributors ■Usually paid via a commission from manufacturers but may also have a resale model for pachislot ■Pachinko Manufactures: 35 companies ■Pachislot Manufactures: Over 60 companies ■Network of salesmen ■Regulated Ex. MARUHAN Corporation DYNAM Co.,Ltd. ■Not directly regulated Ex. Sammy Corporation, SANKYO CO., LTD., and KYORAKU SANGYO Indirect sales 60% for pachinko and 80% for pachislot Peripheral Equipment Manufacturers and Others Parts and Software Manufacturers • Software for graphics chips and liquid crystal displays • Parts of pachinko/pachislot machines and other items • Unit and pachinko hall computers • Premiums, equipment and other items Ex. AXELL Corporation and EIZO NANAO CORPORATION Ex. DAIKOKU DENKI Co., Ltd. Japan Cash Machine Co., Ltd. Mars Engineering Corporation Recent Trend of Pachinko/Pachislot Industry FIELDS CORPORATION The Greatest Leisure for All People ●Jul. Introduction of revised pachinko/ pachislot machines regulation 2004 2005 ●May Introduction of revised Entertainment Business Control Law; restricted pachinko parlor business (Severer penalties) 2006 2007 2008 2010 2011 ● Mar. Regulations and interpretations ●Mar. Nikkoso revised internal were partially revised. regulation. Entertainment level is accelerating by Partially self imposed control the revised technical interpretations. regarding gambling nature. [Pachinko Industry Change] ● Jul. Revised regulation → Deregulation Abolition of classification Nikkoso, an organization of pachinko machine manufacturers revised internal regulation Lowest bound jackpot: 1/360-1/500 ● Oct. Nikkoso revised internal regulation Lowest bound jackpot: 1/500-1/400 Self-imposed control ● Nov. A new model adapted to the new regulations was released “CRF Dai Yamato 2 (SANKYO)” Jackpot trend 1/400-1/500 2009 ●Aug. Strictly restricted pachinko and pachislot advertisement 2012 2013 ● Mar. Nikkoso revised internal regulation. Partial change regarding specifications. ● Jan. Nikkoso revised internal regulation. ● Apr. Nikkoso revised internal Partially self imposed control regarding regulation. gambling nature. Self imposed control regarding the gambling nature of so called ‘Maximum spec machine’ ● Jul. Nikkoso revised internal regulation. Partially self imposed control regarding gambling nature. 2014 ● Jun. Nikkoso revised internal regulation. Partial change regarding specifications. ● Dec. Nikkoso revised internal regulation. Partially self imposed control regarding gambling nature Jackpot trend 1/300-1/400 Jackpot trend 1/300-1/350 Rise of low playing cost and MAX type machines [Pachislot Industry Change] ●Jul. Restraining the nature of gambling, the revised regulations for pachislot machines were introduced Setting upper bound jackpot SECTA’s simulation test introduced ● Mar. Regulations and interpretations were partially revised. Entertainment level is accelerating by the revised technical ● Sep. Changes to administration of model certification tests The minimum ball discharge rate is 55% interpretations ● Oct. The full-scale shift to regulation 5 machines was completed ● Sep. A new model adapted to the new regulations was released “Neon Genesis Evangelion (Bisty)” More entertainment machines from gambling machines by shifting from regulation 4 to regulation 5 Source: Fields and National Police Agency’s data ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. ©オッケー. ©CAPCOM CO., LTD. ALL RIGHTS RESERVED. ©2002松本零士/ユウガ<「大銀河シリーズ」より> ©GAINAX・カラー/Project Eva. ©Bisty Regulation 5 era; more gaming and entertainment machines Copyright 2014 FIELDS CORPORATION All rights reserved. 30 Number of Pachinko Halls and Change in Number of Pachinko/Pachislot Machines Installed Per Hall FIELDS CORPORATION The Greatest Leisure for All People The data is updated every April by “National Police Agency’s data” Pachinko/Pachislot hall establishment (Unit: Stores) 43000 Pachislot specialty stores (Unit: Stores) Installed machines per hall (Unit: M achines) 38000 349.8 336.5 284.9 28000 268.0 268.0 270.3 274.3 18,164 17,773 17,426 17,173 279.9 371.9 387.8 400.0 337.9 350.0 323.1 318.2 33000 356.2 365.0 377.2 304.3 294.7 300.0 23000 250.0 18000 16,988 16,801 16,504 16,076 15,617 15,165 14,674 13,585 12,937 12,652 13000 17,594 17,174 16,764 16,413 16,021 15,691 15,255 8000 14,695 13,844 13,163 12,588 12,039 11,800 11,722 12,479 12,323 12,149 11,893 11,576 11,392 11,178 10,873 200.0 150.0 967 1,110 1,249 1,381 1,773 2,002 2000 2001 2002 2003 2004 2005 3000 -2000 570 599 662 760 1996 1997 1998 1999 2,086 2006 1,546 1,137 930 903 931 971 1,020 2007 2008 2009 2010 2011 2012 2013 100.0 Number of Installed Pachinko/Pachislot Machines and Annual Turnover Rate FIELDS CORPORATION The Greatest Leisure for All People The data of number of installed Pachinko/Pachislot machines is updated every April by “National Police Agency’s data” The data of annual turnover of pachislot machine is updated every August by “Trend and Market Share of Pachinko Related Manufacturers” by Yano Research Institute Number of installed pachinko machines (Unit: 10 thousand machines) Number of installed pachislot machines (Unit: 10 thousand machines) Annual turnover rate of pachinko machine (Times) 1.30 Annual turnover rate of pachislot machine (Times) 1200 1.37 1.31 1.14 1.01 1000 0.74 0.77 800 600 0.88 0.82 0.98 0.86 0.97 0.89 0.98 1.30 1.11 1.06 0.92 1.07 0.94 0.92 0.89 0.87 0.86 0.85 0.80 0.84 0.82 0.64 466 473 471 470 475 478 486 489 496 489 493 322 293 355 332 296 369 342 307 385 325 390 100 113 132 145 160 166 193 200 88 188 76 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 0.82 0.70 0.63 0.60 0.55 1.08 1.07 0.68 0.57 0.30 459 452 450 455 458 458 461 295 307 315 316 310 304 300 163 144 134 139 147 154 160 2007 2008 2009 2010 2011 2012 2013 2011 2012 2013 400 -0.20 200 0 -0.70 【 Annual Turnover rate of Total Machine (Times) 】 1995 0.90 1996 0.93 1997 0.71 1998 0.67 1999 0.86 2000 0.95 2001 0.95 2002 0.96 Source: National Police Agency’s data, “Trend and Market Share of Pachinko Related Manufacturers” by Yano Research Institute 2003 1.13 2004 1.15 2005 1.19 2006 1.11 2007 2008 1.07 Copyright 2014 0.94 2009 0.91 2010 0.85 FIELDS CORPORATION 0.84 0.83 0.75 All rights reserved. 31 Unit Sales and Sales Amount of Pachinko/Pachislot Machines FIELDS CORPORATION The Greatest Leisure for All People The data is updated every August by “Trend and Market Share of Pachinko Related Manufacturers” by Yano Research Institute Unit sales of pachinko machines (Unit: 10 thousand machines) Unit sales of pachislot machines (Unit: 10 thousand machines) Pachinko machine sales amount (Unit: 100 millions of yen) Pachislot machine sales amount (Unit: 100 millions of yen) 1200 8,699 8,986 8,686 9,213 9,852 7,865 8,267 8,869 9000 7,729 6,720 1000 5,184 5,683 5,691 800 3,623 1,828 600 2,693 2,353 3,145 405 336 393 449 5,263 5,225 5,025 4,909 3,965 3,750 568 424 3000 401 404 383 1000 409 387 385 381 290 260 249 343 317 -1000 333 333 235 284 5000 2,258 547 317 323 4,733 2,867 2,478 582 4,299 7000 491 368 336 5,365 467 452 312 312 200 6,099 552 435 400 3,513 5,615 204 -3000 0 93 113 129 184 52 77 150 42 1996 1997 1998 1999 2000 2001 2002 2003 167 178 2004 2003 11,983 164 174 2005 2006 2004 2005 13,090 14,064 91 76 97 125 132 139 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013 13,895 13,711 11,691 12,110 11,736 12,007 12,028 10,832 -5000 【Pachinko/Pachislot machine total (100 millions of yen) 】 1996 1997 NA 1998 NA 5,976 1999 2000 7,877 2001 8,828 9,204 2002 9,580 Market Share by Manufacturers FIELDS CORPORATION The Greatest Leisure for All People The data is updated every August by “Trend and Market Share of Pachinko Related Manufacturers” by Yano Research Institute 【 Unit Sales Share - Pachinko Machines 】 2008 Ranking Manufacturer 2009 Market share Manufacturer 2010 Market share Manufacturer 2011 Market share Manufacturer 2012 Market share Manufacturer 2013 Market share Manufacturer Market share 1 SANYO 24.2% SANYO 18.0% SANYO 22.5% KYORAKU 18.7% SANYO 21.8% KYORAKU 17.0% 2 SANKYO 13.5% SANKYO 17.2% SANKYO 14.6% SANKYO 13.9% KYORAKU 20.3% SANYO 15.4% 3 Sammy 11.7% KYORAKU 12.8% Sammy 11.8% Sammy 10.1% SANKYO 14.3% 4 KYORAKU 10.5% Newgin 11.9% KYORAKU 11.1% SANYO 5 Newgin 10.4% Sammy 10.8% Newgin 10.2% Newgin HEIWA/ 12.8% OLYMPIA 12.8% Newgin 10.0% Sammy 9.8% Sammy 8.7% 9.8% HEIWA/ OLYMPIA 9.6% * SANKYO’s sales share includes Bisty * Sammy’s sales share includes GINZA and TAIYO ELEC 【 Unit Sales Share - Pachislot Machines 】 2008 Ranking Manufacturer 2009 Market share Manufacturer 2010 Market share Manufacturer 2011 Market share Manufacturer 2012 Market share Manufacturer 2013 Market share Manufacturer Market share 1 YAMASA 18.8% Sammy 21.3% Sammy 30.9% Sammy 23.9% UNIVERSAL 17.8% Sammy 21.7% 2 SANKYO 14.6% SANKYO 13.6% DAITO 11.9% DAITO 15.9% Sammy 15.3% UNIVERSAL 15.5% 11.9% YAMASA 15.6% YAMASA HEIWA/ 14.6% OLYMPIA 8.6% 11.3% UNIVERSAL 13.7% DAITO 14.0% SANKYO 8.4% 8.3% DAITO 7.3% 3 4 5 Sammy HEIWA/ OLYMPIA KITA DENSHI 13.5% UNIVERSAL 7.4% YAMASA KITA 6.5% DENSHI 13.1% SANKYO 9.5% HEIWA/ OLYMPIA 7.8% UNIVERSAL 10.5% SANKYO KITA 7.6% DENSHI * Sammy’s sales share includes RODEO, IGT, TRIVY, and TAIYO ELEC * SANKYO’s sales share includes Bisty * Aruze changed the company name to Universal Entertainment in 2009 * UNIVERSAL’s sales share includes Eleco, Mizuho and Macy * OLYMPIA’s sales includes HEIWA’s sales; Total sales of all OLYMPIA and HEIWA brands is shown Source: “Trend and market share of Pachinko related makers” by Yano Research Institute Copyright 2014 FIELDS CORPORATION All rights reserved. 32 Monthly Trends of Pachinko Halls -Excerpt from Current Survey of Selected Service Industries- FIELDS CORPORATION The Greatest Leisure for All People The data is updated monthly by “Current Survey of Selected Service Industries: The Ministry of Economy, Trade and Industry” 410 4 Net sales per hall (Unit: 100 millions of yen) Installed machines per hall (Unit: Machines) 400 390 384 380 385 384 385 384 384 383 385 385 388 387 387 386 389 387 387 394 392 391 387 390 393 391 393 391 391 392 391 391 391 395 394 392 390 397 395 394 395 395 394 401 400 397 396 399 398 400 398 396 399 399 397 3.5 391 387 381 3 370 2.56 2.53 2.44 2.43 2.40 2.37 360 2.22 2.40 2.23 2.41 2.38 2.26 2.25 2.38 2.35 2.32 2.27 2.19 2.17 2.32 2.27 2.14 2.16 2.42 2.43 2.372.34 2.32 2.352.29 2.27 2.23 2.32 2.14 2.10 2.05 350 2.42 2.35 2.47 2.40 2.25 2.21 2.42 2.31 2.22 2.19 2.13 2.04 2.5 2.30 2.21 2.14 2.05 2.13 2.04 1.94 2 340 330 1.5 1. 2010 7. 2010 1. 2011 7. 2011 1. 2012 7. 2012 1. 2013 7. 2013 1. 2014 7. 2014 * Figures are calculated based on data and growth rates released in the “Current Survey of Selected Service Industries,” using January 2001 as the reference point. * The survey covers approximately 300-400 halls from January 2008 to December 2012 and approximately 1,200 halls from January 2013. The Ministry of Economy, Trade and Industry outsource to the Zennichiyuren to pick up the hall for survey from 47 prefectures. FIELDS CORPORATION The Greatest Leisure for All People Source: “Current Survey of Selected Service Industries” : The Ministry of Economy, Trade and Industry Copyright 2014 FIELDS CORPORATION All rights reserved. 33 FIELDS CORPORATION The Greatest Leisure for All People 5. Appendix III (Entertainment Market Data Except Pachinko/Pachislot Industry) FIELDS CORPORATION The Greatest Leisure for All People Copyright 2014 FIELDS CORPORATION All rights reserved. 34 Market Scale of Content Business FIELDS CORPORATION The Greatest Leisure for All People The data is updated every September by “White Paper on Digital Content: Digital Content Association of Japan.” Still image/Text 120,990 10,474 Animation 123,248 11,043 Music (Unit: 100 millions of yen) Games 128,124 129,859 129,962 11,151 12,652 12,344 17,003 16,941 16,441 126,443 11,660 119,155 119,578 118,036 118,623 119,094 10,703 11,675 12,321 13,775 14,819 14,454 13,797 13,341 13,639 13,231 43,982 44,984 44,465 44,303 44,804 15,914 17,056 16,878 45,031 46,153 48,429 49,174 53,419 54,220 54,467 53,200 50,016 49,122 47,909 46,906 46,240 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 46,710 46,046 46,551 45,669 Market Scale of Digital Content Business FIELDS CORPORATION The Greatest Leisure for All People The data is updated every September by “White Paper on Digital Content: Digital Content Association of Japan.” Still image/Text Animation Music Games (Unit: 100 millions of yen) 67,807 59,360 53,723 49,696 45,832 40,657 31,723 35,383 5,914 9,393 42,651 43,348 10,732 12,912 36,746 13,252 29,402 13,272 18,169 12,349 10,340 12,572 11,043 8,415 14,819 11,382 12,652 13,377 13,403 13,775 12,344 11,151 10,474 76,589 11,675 10,703 11,660 75,378 22,082 14,970 2,653 3,780 4,958 6,271 7,409 7,873 8,654 8,612 9,029 1,932 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 Source: “White Paper on Digital Content” by Digital Content Association of Japan Copyright 2014 FIELDS CORPORATION All rights reserved. 35 Sales Amount of Comic Books and Comic Magazines FIELDS CORPORATION The Greatest Leisure for All People The data is updated the end of April every year by “Annual Report of Publishing Indicator: All Japan Magazine and Book Publisher’s Editor’s Association.” Comic book 5,047 Comic magazine 5,023 4,810 (Unit: 100 millions of yen) 4,699 4,483 4,187 2,549 2,421 2,277 2,204 2,111 4,091 1,914 1,775 3,903 3,766 3,669 1,650 1,564 1,438 2,498 2,602 2,533 2,495 2,372 2,274 2,315 2,253 2,202 2,231 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Market Scale of Animation Industry FIELDS CORPORATION The Greatest Leisure for All People The data is updated every April by “Fluctuations in Japan’s animation market: Association of Japanese Animation.” The data of pachinko/pachislot machines using animation are estimated by Fields. (Except pachinko/pachislot: Calculated according to amount of user’s payment) TV Video Commercialization Overseas Theater/Movie (Unit: 100 millions of yen) Broadcast Music Pachinko/Pachislot 13,499 13,584 13,031 1,528 12,207 11,187 4,827 5,204 5,204 4,212 91 14,068 1,665 4,390 4,137 263 235 120 261 5,049 5,305 6,419 4,337 4,617 10 1,176 196 1,165 18 1,031 380 1,100 41 1,388 84 1,358 178 1,041 284 1,003 98 1,278 213 924 2003 2004 2005 2006 2007 12,825 1,226 2,867 2,544 270 307 5,652 5,881 102 1,113 338 946 2008 Source: “Annual Report of Publishing Indicator” by All Japan Magazine and Book Publisher’s Editor’s Association “Fluctuations in Japan’s animation market: Association of Japanese Animation" and Estimation by Fields 13,227 13,393 13,721 2,026 2,272 2,669 2,408 297 245 230 6,120 6,421 6,041 123 1,052 299 955 149 1,085 338 895 160 1,067 285 900 272 1,059 409 951 2009 2010 2011 2012 Copyright 2014 FIELDS CORPORATION All rights reserved. 36 Box-Office of Domestic Movie Theaters FIELDS CORPORATION The Greatest Leisure for All People The data is updated every January by “Statistics of Film Industry in Japan: Motion Picture Producers Association of Japanese, Inc.” Japanese movies 2,109 Foreign movies (Unit: 100 millions of yen) 2,207 2,029 1,982 1,984 2,060 1,948 1,952 1,942 1,812 1,319 950 1,164 1,038 1,079 791 818 2004 2005 FIELDS CORPORATION The Greatest Leisure for All People 670 765 817 946 2006 1,025 887 790 1,159 1,173 1,182 2008 2009 2010 2007 1,282 995 2011 1,176 2012 2013 Market Scale of Broadcasting Industry The data is updated on September and May of each year by “Status of Earnings and Expenses of Private Broadcasting Organizations: Ministry of Internal Affairs and Communication,” “Japan Broadcasting Corporation.” NHK(=Japan Broadcasting Corporation) Satellite broadcasters 38,356 3,330 2,995 39,580 3,533 3,158 25,229 26,153 6,802 2003 Terrestrial broadcasters Cable broadcasters 40,422 40,975 3,850 4,050 4,746 3,414 3,525 3,737 40,037 26,138 26,091 6,736 6,635 2004 2005 (Unit: 100 millions of yen) 39,794 4,667 38,957 38,569 38,695 39,081 5,134 5,437 5,177 4,930 5,030 3,887 4,185 4,490 4,509 4,491 22,574 22,655 22,501 22,869 23,215 38,128 3,905 25,848 24,493 6,756 6,644 6,729 6,533 6,680 6,401 6,387 6,345 2006 2007 2008 2009 2010 2011 2012 2013 Sources: “Statistics of Film Industry in Japan: Motion Picture Producers Association of Japanese, Inc.” “Status of Earnings and Expenses of Private Broadcasting Organizations: Ministry of Internal Affairs and Communications, Japan Broadcasting Corporation” Copyright 2014 FIELDS CORPORATION All rights reserved. 37 Market Scale of Mobile Business FIELDS CORPORATION The Greatest Leisure for All People The data is updated every July by “Mobile Content Forum.” Mobile commerce market 30,142 Mobile content market (smartphone) Mobile content market (feature phone) (Unit: 100 millions of yen) 23,507 19,061 15,206 16,550 14,997 13,524 11,601 11,716 9,307 7,224 3,842 1,709 5,196 2,593 4,074 7,329 19,359 8,689 9,681 10,085 806 5,641 2,133 3,150 3,666 4,272 4,835 5,525 2,603 2003 2004 2005 2006 2007 2008 2009 6,465 2010 6,539 2011 3,717 4,793 2012 8,336 2,447 2013 FIELDS CORPORATION The Greatest Leisure for All People Sources: “Results of Survey on Industry Structure of Mobile Content: Ministry of Internal Affairs” Copyright 2014 FIELDS CORPORATION All rights reserved. 38 FIELDS CORPORATION The Greatest Leisure for All People Reference: Notification of Our IR Site IR materials are available from our IR website. 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IR Pages (Japanese) IR Pages (English) URL : http://www.fields.biz/ir/j/ URL : http://www.fields.biz/ir/e/ -Company profile -Data related to financial statements -Financial presentation -IR press releases -Corporate governance/CSR information -Shareholder and share information FIELDS CORPORATION [ Nikko IR ] Chosen the “Best Corporate Website award FY2013” The Greatest Leisure for Allfor People Ranked No. 1 in the new markets ranking for the fourth consecutive year and ranked No. 1 by industry for the third consecutive year Renewed our IR site (English) in July 2014 [ DAIWA IR ] FY2013 Company of Excellence [ Gomez ] FY2014 Silver Prize [ JASDAQ ] FY2008 IR Company of Excellence Analysis Tools 【 Annual Report (Japanese/English) 】Issued annually since the year ended March 31, 2004 [Shaping the FUTURE] Latest issue: October 28, 2014 -Changes in IP business -Review of business activities -CSR -Financial section -Corporate data IR information is also Available on our mobile site Smart phone Source: Fields Copyright 2014 Mobile phone FIELDS CORPORATION All rights reserved. 39 FIELDS CORPORATION The Greatest Leisure for All People FIELDS CORPORATION The Greatest Leisure for All People Disclaimer The plans, strategies and estimates of the Company indicated in these documents, other than actual results and facts, include potential risks and uncertainties and cannot be guaranteed. Potential risks and uncertainties include, but are not limited to, the economic environment, market competition and the products handled by the Company. Unauthorized copying and replication of the contents of this document, text and images are strictly prohibited. Copyright 2014 FIELDS CORPORATION All rights reserved.
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