fields corporation financial presentation (first half of ......topics (2) examples of collaboration...

The Greatest Leisure for All People JASDAQ Standard 2767

FIELDS CORPORATION Financial Presentation

(First Half of the Year Ending March 31, 2015)

Index

Copyright 2014 FIELDS CORPORATION All rights reserved. 1

1. Summary of Results for the First Half of the Year Ending March 31, 2015 (Consolidated)

2. Status of IP Development

(Reference) Pachinko/Pachislot Field

3. Future IP Development

Net sales; 20.3 billion yen/Operating loss; 4.0 billion yen (Pachinko/pachislot machine sales) - Number of machines sold was in line with forecasts for individual titles - Launch of 1 pachislot machine was moved to lineup for the second half

Pachinko machines sales; 73,000 units/ Pachislot machines sales; 28,000 units - A single pachinko machine and pachislot machine accounted for most of the sales posted - Rapid response to change in pachislot model certification test method

144 total IP to be developed in 75 media forms in current fiscal year - Animation versions begun for 5 works from “HERO’S Monthly” - Cross-media expansion spurred by animation versions

Overview

Overview of First Half of the Year Ending March 31, 2015


Results in First

Half

Pachinko/Pachislot Machine

Sales

IP

Summary of Results for the First Half of the Year Ending March 31, 2015 (Consolidated)

Copyright 2014 FIELDS CORPORATION All rights reserved.

(Unit: Billions of yen)

Consolidated P/L Year Ended March 31, 2014 Year Ending March 31, 2015

H1 Full-Year H1 Increase/ Decrease Change (%) Full-Year

Forecast

Net sales 36.38 114.90 20.34 (16.04) (44.1) 100.00

Gross profit 13.64 33.81 6.92 (6.72) (49.3) -

SG&A expenses 11.47 24.02 10.99 (0.47) (4.1) -

Operating income 2.17 9.79 (4.07) (6.25) ‐ 5.00

Ordinary income 2.14 9.76 (4.07) (6.21) ‐ 5.00

Net income 1.43 5.37 (2.50) (3.94) ‐ 2.50

PS sales (posted)

P: Pachinko S: Pachislot

P 110,000 162,000 73,000 (36,000)

S 61,000 230,000 28,000 (33,000)


First Half of the Year Ending March 31, 2015

(Unit: Machine)

Consolidated B/S

March 31, 2014

September 30, 2014

Increase/ Decrease Main factors for increase/decrease

Current assets 66.92 33.75 (33.16) Decrease in notes and accounts receivable—trade

Tangible fixed assets 12.10 12.31 0.20

Intangible fixed assets 4.36 4.39 0.02

Investments and other assets 21.47 19.95 (1.52) Decrease in investment securities

Total assets 104.86 70.40 (34.46)

Current liabilities 41.73 11.24 (30.48) Decrease in notes and accounts payable— trade and decrease in accrued income taxes

Fixed liabilities 4.38 4.15 (0.23)

Net assets 58.75 55.01 (3.73) Decrease in retained earnings

Total liabilities and net assets 104.86 70.40 (34.46)



End of First Half of the Year Ending March 31, 2015

Consolidated Cash Flows

H1 Year Ended March 31, 2014

H1 Year Ending March 31, 2015 Analysis of main factors

Operating cash flows (4.55) (11.11) Loss before income taxes and minority interests Decrease in notes and accounts receivable—trade Decrease in notes and accounts payable—trade Income taxes paid

(3.64) 24.19

(27.25) (1.80)

Investing cash flows (1.65) (1.09) Expenditures for purchase of tangible fixed assets Expenditures for purchase of intangible fixed assets Proceeds from sales of investment securities

(0.82) (0.90)

0.82

Financial cash flows (1.38) (1.20) Dividends paid Repayment of short-term borrowings

(0.82) (0.31)

Cash and cash equivalents at beginning of period

23.30 29.58

Cash and cash equivalents at end of period

15.70 16.17



First Half of the Year Ending March 31, 2015

Status of IP Development


“HERO’S” IP H1 cumulative total: 6 new works published; 20 works published as comic books

“HERO’S” IP Film versions started for 5 works

SOUL ReVIVER Start of project to make live action film in Hollywood Start of script development

SWORDGAI Start of development of anime content in collaboration with DLE Inc.

Tsuburaya IP Broadcasting of new TV series in Ultraman series Ongoing animation development of Tsuburaya IP

APPLESEED ALPHA CG anime production in collaboration with US Sony Pictures Released in North America in July 2014

NINJA SLAYER FROM ANIMATION

Planning and production of animation version of novel released serially via Twitter

Out of 51 IP owned by Fields, 18 are being made into animations


IP Creation

Animation versions

Status of IP Development

8

Broadcast to begin in 2016 (planned)

*3DCG promotion movie

Start of joint development of anime content for “SWORDGAI”


Animation versions

©ヒーローズ

Topics (1) Examples of “HERO’S” IP Development

To be released in theaters in Japan in January 2015 (tentative)


Topics (2) Examples of collaboration IP development

©S.M/CR,LPEI/SPWA

Following the release of the “APPLESEED ALPHA” film in North America, it premiered at the 27th Tokyo International Film Festival

Special invitation film


(Reference) Pachinko/Pachislot Field

0

60

120

180

3. 20133. 2014

3. 2015

37.2 35.0 31.6

28.7 32.8 33.0

42.4 37.5

30.4 35.3

138.9 140.7

64.7

Jan. - Mar. Oct. - Dec.Jul. - Sep. Apr. - Jun.

(10 thousand machines )

0

40

80

120

3. 20133. 2014

3. 2015

23 20 22

26 27 20

19 23

29 22

97 92

42


(Titles)


Number of pachislot machines sold Number of pachislot titles sold

12

Slight decrease in the number of machines and titles sold

Current Conditions in Pachislot Sales Market

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Status of Pachislot Installation (Percentage of installations by specification)

32.7%

23.5%

43.8%

*Percentage of installations as of September 2014

Percentage of AT type installations has dramatically increased since 2013


Nomal ART Regulation 4 machine AT

0

100

200

300

3. 20133. 2014

3. 2015

72.9 51.0 51.1

69.0 63.1 60.3

67.1 66.7

57.4

45.0

266.5

226.1


(10 thousand machines )

0

50

100

150

200

3. 20133. 2014

3. 2015

42 35 50

54 35

46

39

44

51

42

186

156

96


(Titles)

Number of machines sold in line with previous period, and number of titles sold in line with 2 years prior


Number of pachinko machines sold Number of pachinko titles sold

14

111.4

Current Conditions in Pachinkot Sales Market

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bipolarization into Amadigi type and MAX type continues


Light middle （1/150～1/279）

Middle low （1/280～1/319）

MAX （1/370～）

Middle hight （1/320～1/369）

27.7%

17.4%

36.8%

Amadigi, Other （～１/149）

8.8%

9.3%

Status of Pachinko Installation (Percentage of installations by specification)

*Percentage of installations as of September 2014

©CAPCOM CO., LTD. ALL RIGHTS RESERVED. ©オッケー.／©2013 BANDAI NAMCO Games Inc. ©Bisty／©CAPCOM CO., LTD. ALL RIGHTS RESERVED.／ ©カラー ©Bisty／©avex management inc. ©avex music creative inc.

Second half (Oct. - Mar.) First half (Apr. - Sep.)

Pachinko Pachislot

■ ■ ■

OK!! “Pachinko Onimusha:

Dawn of Dreams”

Enterrise “Pachislot Sengoku

BASARA 3”

Bisty

“CR ayumi hamasaki 2”

Bisty

“ CR EVANGELION 9”

* Reused machines

Popular products such as “EVANGELION 9” and “Salaryman Kintaro” will be launched in the second half


RODEO

“Salaryman Kintaro”

Product Lineup for Year Ending March 31, 2015

To second half

プレゼンター

プレゼンテーションのノート

【パチンコ市場】・「販売台数」、「販売タイトル数」ともに減少。・１Qの21万台減少（13年3月期：大海物語＜19万台＞）、　４Qの12万台減少（13年3月期：北斗の拳５＜13万台＞）が　大きい。・販売タイトル数の絞り込みにより、1タイトル当たり販売台数は　1.4万台で横ばい。・ホール様の購買意欲は冷え込んでいる。・13年3月期と14年3月期の販売台数ベスト５を比較しても、　ともに10万台を超えているものの、個別タイトルの台数は　減っている。（ベスト５　トータルで16万台減少）・一方で、「ルパン三世～消されたルパン～」のように、　評価が高く、リピートが出ている機械もある。　※最初、3～4万台　→　10万台へ　　（14年3月期販売数ベスト４）・「ルパン三世」のように、最初は購買を控え、後からリピートという形もある。・15年3月期の見通しについて、総販売台数は減少傾向は　続くと見ている。


Future IP Development

Pachinko/ Pachislot

Consumer Products

Interactive media

Animation/ Live media

Anime

Comics

Cross-media development of IP ＝ IP sharing


Creating and developing IP fans

Principle behind Cyclical Business Model

Acquisition 19 Copyright 2014 FIELDS CORPORATION All rights reserved.

144 total IP to be developed in 75 media forms in current fiscal year

Year Ending March 31, 2015




Fields IP (51)

Film 7 5 5 5 Animation 5 4 3 6

Merchandising 60 57 48 49 Collaboration

IP (46)

Film 7 4 7 5 Merchandising 4 2 4 –

Other Companies’

IP (47)

Film – – – – Merchandising 11 8 7 –

<Status of IP development from year ending March 31, 2015 to year ending March 31, 2018>

Image of Future IP Development

*Proprietary IP Creation consists mainly of the works in the HERO’S Monthly new series, while Merchandise is primarily the total of social games, Pachinko/Pachislot, and comic book adaptations. *Figures in table above reflect the number of IP planned for creation, film development/merchandising as of October 31, 2014.

Ultraman series Various measures underway to vitalize series in Japan and overseas

Japan New TV series is ongoing, various events will be held

Overseas Various plans in collaboration with local companies will be pursued, particularly in China and Southeast Asia

Tsuburaya IP Plans to bring a wide range of IP to the screen and expand merchandising are being developed, including monster IP

KOTOKOTO Word detection RPG (role-playing game) application distributed; more than 600,000 cumulative downloads (as of October 31, 2014)

IP cultivating based on cross-media expansion


Commercialization of key collaboration IP and other companies’ IP

AKB48 Original story using AKB48 is being planned and developed

Freezing Vibration (tentative) Joint development of social game using popular comic “Freezing” with GREE, Inc.

Others Social game using animation IP is being planned and developed

Commercialization of Fields key IP

20

Status of Development in Merchandising Field

“KOTOKOTO” is… a word detection role-playing game that you play using words. You use the power of words to attack the enemy (Mononoke).

1

0.5

0

KOTOKOTO Major game A Major game B

September 25, 2014 Release of Android version

October 14, 2014 Release of iOS version

(Unit: million downloads)

Enter a word to attack Enter mystery words to make particular kinds of

attacks

More than 600,000 cumulative downloads*1

Revenue generation issue/Improvements to ARPU and infrastructure underway*2


©Fields / FutureScope

TOPICS (3) Social Game “KOTOKOTO -the World of Words-”

*1: Number of downloads as of the end of October 2014 *2: ARPU = Average Revenue Per User; here, refers to the amount billed per individual user.

(Reference) Supplementary Notes on Changes to Pachislot Model Certification Test Method


Laws and Regulations for Pachinko/Pachislot Industry

Metropolitan Police Department changed the testing method for the type test

Amusement Businesses Law Law on Control and Improvement of Amusement Businesses

Enforcement regulations Enforcement regulations for Law on Control and Improvement of

Amusement Businesses

Pachinko/pachislot machine rules Rules on Approval of Pachinko/Pachislot Machines and

Certification of Models (1) Rules on performance meeting standards for machines

(2) Rules on verification of pachinko/pachislot machines and model certification tests

The method for these tests has now

been changed.

<National Public Safety Commission’s rules>

<Law>

<Voluntary rules> Nikkoso’s internal

regulations Nichidenkyo’s internal

regulations Zennichiyuren’s voluntary rules


Voluntary rules of Kaidoshiki Yugiki Seizogyo Renrakukai (Council of Pachislot Machine Manufacturers)

23

*Payout rate stipulated in (ho), (to) and (ri) of Article 5, Clause 1 of the Pachinko/Pachislot Machine Regulations

Strict adherence to minimum payout rate for long duration of play


Number of tests (Number of games)

Minimum payout rate

Maximum payout rate

Short duration 400 - Less than 300%

Medium duration 6,000 - Less than 150%

Long duration 17,500 Over 55% Less than 120%

Changes to test method for model certification test for pachislot machines

24

Tests will be more rigorous for machines for which applications were filed prior to new test Notification of changes to

test method Start of new test

August 29 September 16

47.5% 39.3% 42.9%

6.5% 0%

20%

40%

60%

80%

100%Results of Security Communications Association model certification test

Source: SECTA (Security Electronics and Communications Technology Association) web site Copyright 2014 FIELDS CORPORATION All rights reserved.

Results of pachislot machine type tests

25

■Out of compliance

■In compliance

Jun. Jul. Aug. Sep.

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, market competition and the products handled by the Company.

IR and PR Section, Corporate Communications Office TEL：+81-3-5784-2109 E-mail：[email protected]


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