Fields Corporation (2767)

Transcription

SR Research Report
2014/3/3
Shared Research Inc. has produced this report by request from the company discussed in the
report. The aim is to provide an “owner’s manual” to investors. We at Shared Research Inc. make
every effort to provide an accurate, objective, and neutral analysis. In order to highlight any biases,
we clearly attribute our data and findings. We will always present opinions from company
management as such. Our views are ours where stated. We do not try to convince or influence,
only inform. We appreciate your suggestions and feedback. Write to us at
[email protected] or find us on Bloomberg.
SR Research Report
2014/3/3
Contents
Recent Updates .......................................................................................................4
Highlights ............................................................................................................4
Trend & Outlook ...................................................................................................4
Business ............................................................................................................... 11
Summary .......................................................................................................... 11
Business Description ........................................................................................... 11
Market and Value Chain ...................................................................................... 19
Strategy ............................................................................................................ 22
Historical Financial Statements................................................................................ 23
Summary .......................................................................................................... 23
Income Statement.............................................................................................. 32
Balance Sheet .................................................................................................... 33
Cash Flow Statement .......................................................................................... 34
Other Information ................................................................................................. 35
History .............................................................................................................. 35
News and Topics ................................................................................................ 36
Top Management ............................................................................................... 44
Employees ......................................................................................................... 45
Major Shareholders ............................................................................................ 45
Shareholder Returns ........................................................................................... 45
Investor Relations .............................................................................................. 45
By the Way ........................................................................................................... 46
Company Profile ................................................................................................. 47
http://www.sharedresearch.jp/
Copyright (C) 2013 Shared Research Inc. All Rights Reserved
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Income Statement
(Million Yen)
Sales
FY03/09
Cons.
73,035
FY03/10
Cons.
66,342
FY03/11 FY03/12 FY03/13 FY03/14
Cons.
Cons.
Cons.
Est.
103,593
92,195 108,141 120,000
YoY
-28.3%
-9.2%
56.1%
-11.0%
17.3%
Gross Profit
24,024
26,889
35,129
31,330
33,279
11.0%
GPM
32.9%
40.5%
33.9%
34.0%
30.8%
SG&A
Operating Profit
22,063
1,960
18,764
8,124
21,993
13,136
22,803
8,527
22,964
10,314
12,500
YoY
-85.1%
314.5%
61.7%
-35.1%
21.0%
21.2%
2.7%
12.2%
12.7%
9.2%
9.5%
10.4%
991
7,761
13,684
8,661
10,268
12,500
YoY
-91.5%
682.9%
682.9%
682.9%
682.9%
21.7%
RPM
1.4%
11.7%
13.2%
9.4%
9.5%
10.4%
-1,481
3,289
7,520
5,991
4,720
6,300
-
-
128.6%
-20.3%
-21.2%
33.5%
OPM
Recurring Profit
Net Income
YoY
Per Share Data (Yen, Thousand Shares, After Stock Split Adjustments)
Number of Shares FY End
347
347
347
347
EPS
-42.7
94.8
216.7
172.7
Book Value Per Share
45.0
45.0
50.0
50.0
Dividend Per Share
1,173.3
1,236.5
1,408.5
1,539.0
Balance Sheet (Million Yen)
Cash & Securities　11,181
15,916
15,873
18,344
Accounts Receivable
4,324
33,088
27,948
34,402
Inventory
963
1,519
1,357
3,134
Total Current Assets
25,135
56,694
51,051
62,811
Total Assets
52,064
81,329
78,971
93,601
Accounts Payable
1,981
26,610
17,939
29,100
Interest-Bearing Debt
3,011
2,230
1,834
1,507
Total Liabilities
12,568
40,141
31,949
42,046
Shareholders' Equity
40,420
41,741
47,601
51,895
Net Debt
-8,170
-13,686
-14,039
-16,837
Working Capital
3,306
7,997
11,366
8,436
Cash Flow Statement (Million
Operating Cash Flow
4,147
8,429
8,005
10,015
Investment Cash Flow
-6,182
-1,011
-4,356
-4,798
Financial Cash Flow
602
-2,687
-3,915
-2,565
Financial Ratios
ROA
-2.8%
4.0%
9.5%
6.4%
ROE
-3.7%
7.9%
15.8%
11.5%
Equity Ratio
77.6%
51.3%
60.3%
55.4%
34,700
142.3
50.0
1,644.2
189.9
50.0
23,314
42,017
2,343
72,709
106,628
36,604
1,052
51,529
54,957
-22,262
7,756
13,570
-6,263
-2,277
4.4%
8.6%
51.5%
Source: Company data, SR Inc. Research
Figures may differ from company materials due to differences in rounding methods.
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Recent Updates
Highlights
On March 3, 2014, SR updated comments on Fields Corporation’s Q3 FY03/14 results after interviewing
management; see the results section for details.
On February 4, 2014, the company announced results for Q3 FY03/14.
On January 28, 2014, the company announced the release of a new pachislot machine from Enterrise
Co., Ltd., “Pachislot Monster Hunter: Gekka Raimei.” It was expected to be available at pachinko halls
from March 2014.
On the same date, the company announced the release of a new pachinko machine from OK Co., Ltd.,
“Pachinko Onimusha: Dawn of Dreams.”
On January 7, 2014, the company announced the release of a new pachislot machine from Bisty Co,
Ltd. “Evangelion-Ketsui no Toki”. It was expected to be available at pachinko halls from February 2014.
For corporate releases and developments more than three months old, please refer to the
News & Topics section.
Trend & Outlook
Quarterly Trends & Results
Quarterly Performance
(million yen)
Sales
YoY
GP
YoY
GPM
SG&A
YoY
SG&A / Sales
OP
YoY
OPM
RP
YoY
RPM
NI
YoY
NPM
Q1
21,145
FY03/13
Q2
Q3
7,973 18,627
Q4
60,396
19.9%
-49.3%
91.9%
22.9%
5,566
3,258
6,239
18,216
9.7%
26.3%
-52.8%
40.9%
43.7%
33.5%
21.4%
30.2%
6,745
5,282
5,402
5,535
-0.4%
25.0%
5.9%
67.8%
-6.2%
29.7%
283
-2,142
703
11,470
1.3%
-
3.8%
34.9%
19.0%
574
-2,312
763
2.7%
-
4.1%
342
-1,322
1.6%
-
Q1
5,748
FY03/14
Q2
Q3
30,637 17,819
-72.8% 284.3%
2,027
Q4
FY03/14
% of FY
FY Est.
45.2%
120,000
-4.3%
11,621
5,709
-63.6% 256.7%
35.3% 37.9%
-8.5%
32.0%
5,856
5,615
5,849
3.8% 10.9%
11.2% 101.9%
3.9%
18.3%
5.7%
32.8%
-3,829
6,005
-140
-
19.6%
-
11,243
-3,759
5,903
-78
31.4%
18.6%
-
19.3%
-
303
5,397
-2,290
3,724
-207
1.6%
11.1%
8.9%
-
12.2%
-
11.0%
16.3%
12,500
21.2%
10.4%
16.5%
12,500
21.7%
10.4%
19.5%
6,300
33.5%
5.3%
Source: Company data, SR Inc.; figures may differ from company materials due to differences in rounding methods
Q3 FY03/14 Results (announced on February 4, 2014; please refer to the table
above)
The company maintained its full-year FY03/14 forecasts.
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Cumulative Q3 sales were JPY54.2bn (+13.5% YoY), operating profit was JPY2.0bn (JPY1.2bn loss a year
earlier), recurring profit was JPY2.1bn (JPY975mn loss a year earlier), and net income was JPY1.2bn
(JPY677mn loss a year earlier).
In the pachinko/pachislot business, 4 pachinko and 3 pachislot titles were sold in cumulative Q3
(compared to 3 pachinko and 3 pachislot titles in the same period of the previous year). As a result, sales
were up. The total number of pachinko machines sold in cumulative Q3 was 139,004 (up 60,357 YoY) and
the total number of pachislot machines sold was 92,632 (up 465), for a total of 231,636
pachinko/pachislot machines sold (up 60,822). Sales of the “Evangelion 8” pachinko unit, manufactured
by Bisty Co., Ltd. (a subsidiary of Sankyo Co., Ltd.; TSE1: 6417) contributed to higher total sales with
about 75,000 units sold. For pachislot units, sales of “Kaido Mokushiroku Kaiji 3”, “Devil May Cry 4”,
manufactured by Capcom Co., Ltd. (TSE1: 9697) subsidiary Enterrise Co., Ltd. and “Ultraman Wars”,
manufactured by Bisty, each exceeded 20,000 units.
Pachislot is a type of Japanese slot machine, the name of which is an amalgamation of the words “pachinko”
and “slot machine”.
According to Fields, the pachinko/pachislot market was stable with no significant changes. Industrywide
unit sales can experience volatility depending upon the presence of popular titles, but remained flat on
the whole. In April-December 2013, a total of 1,810 thousand units of pachinko machines were sold
industrywide (-13.5% YoY), while 1,054 thousand units of pachislot machines (-2.8%) were sold (source:
company data, SR research).
Regarding pachinko hall attitudes toward new machine installations, halls were inclined to install
successor machines to previously popular titles. Initial orders were placed in numbers of ten or less, and
additional purchases were made if machines performed well.
Additionally, a variety of initiatives based on the “Ultraman” series owned by the Group were successfully
deployed, including a TV series and events to mark the 50th anniversary of Tsuburaya Productions, which
contributed to higher earnings in cumulative Q3. Orders for CG video creation for various media, such as
movies, games, and pachinko/pachislot, also increased, further boosting earnings.
To realize the company’s medium to-long-term growth strategy, the 6 fields of comics, animation,
movies/TV/live entertainment, interactive media such as games, consumer products, and
pachinko/pachislot are going ahead with raising intellectual property (IP) value, while working together to
develop and commercialize IP.
The main initiatives for development and commercialization of IP in Q3 were as follows.
The “HERO’S Monthly” comic magazine, which is intended to create heroes, sequentially publishes new
comic book volumes of serialized stories, and a project to make several movies is underway to further
expand the fan base.
In the “GINGA KIKOTAI: Majestic Prince” series, following the broadcasting of a TV animation and the
development and sale of goods linked to the comic magazine, the company plans to distribute social
games (native applications) in February 2014.
In the “Ultraman” series, the company worked to expand the fan base among families and create new
fans by distributing social games (native applications) and selling pachislot machines. This followed the
TV broadcast and movie release of “Ultraman Ginga” and “ULTRA MONSTERS RUSH: ULTRA FRONTIER,”
as well as the development of arcade games in collaboration with partner companies.
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In the interactive media field, the company focused its resources on core social game titles in order to
raise IP value and optimize revenue. Accordingly, the company launched 5 titles, including 4 Web
applications and 1 native application.
In cumulative Q3, sales accounted for 45.2%, and operating profit stood at 16.3% of the company’s
full-year FY03/14 estimates. In Q4 FY03/14, the company is scheduled to release two pachinko machines
and four pachislot machines (see below), which will be close to the same number of releases conducted in
the first nine months of FY03/14 combined. SR believes that this will cause significant changes in the
company’s results.
Pachinko/pachislot machines scheduled for release in Q4 FY03/14
Pachinko machines
 CR Evangelion 8 Premium Battle (Bisty)
 Pachinko Onimusha: Dawn of Dreams (OK Co., Ltd., a subsidiary of Kyoraku Sangyo Co., Ltd.; unlisted)
Pachislot machines
 Mobile Suit Gundam (Bisty)
 Evangelion: Ketsui no Toki (Bisty)
 Pachislot Monster Hunter (Enterrise)
 Another God Hades (Mizuho Corp., a subsidiary of Universal Entertainment Corporation; TSE1: 6425)
Q2 FY03/14 Results (announced on November 6, 2013; please refer to the table
above)
Sales were 36.4 billion yen (+25.0% YoY), operating profit 2.2 billion yen (operating loss of 1.9 billion yen
a year earlier), recurring profit 2.1 billion yen (recurring loss of 1.7 billion yen a year earlier), and net
income 1.4 billion yen (net loss of 980 million yen a year earlier).
According to the company, pachinko and pachislot machines recorded favorable sales due to strong unit
sales of both machines. For 1H, the number of pachinko machines sold was approximately 110,000 units
(up about 63,000 units from a year earlier), and the number of pachislot machines sold was
approximately 61,000 units (up about 7,000 units from a year earlier). In pachinko, the company sold
72,000 units of Bisty Co., Ltd.’s “CR Evangelion 8.” In pachislot, sales of “Kaido Mokushiroku Kaiji 3” and
Enterrise Co.’s “Devil May Cry 4” each exceeded 20,000 units.
According to Fields, the pachinko/pachislot market was stable with no significant changes, and
industrywide unit sales remained steady despite some volatility due to the release of popular titles. In
April-September 2013, a total of 1,143 thousand units of pachinko machines were sold industrywide
(-19.5% YoY), while 679 thousand units of pachislot machines (+2.9% YoY) were sold (source: company
data, SR Inc. Research). The company said that pachinko halls were operating with steady flows of
customers despite a decline in the pachinko-player population. Fields added that there were no significant
changes to related regulations during the period.
Facing such an environment, pachinko halls were increasingly careful in installing new machines. More
specifically, each hall refrained from installing more than 20 units of any new title at one time while being
inclined to install less than 10 units of successor machines of once-popular titles. Such a stance of
pachinko halls has made it rare for any given machine to sell more than 200,000 units.
The planned sales tax hike in April 2014 should have significant impact on the pachinko/pachislot market.
As SR Inc. understands it, pachinko halls are paying the sales tax on pachinko balls and pachislot coins as
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of November 2013. Industrywide talks have yet to reach a conclusion as to whether pachinko halls or
players will shoulder the sales tax burden after the planned hike. Should pachinko halls be responsible for
the tax, their margins and performance could dent accordingly, which could then put downward pressure
on pachinko/pachislot machine sales.
On the other hand, players may bid farewell to pachinko halls due to higher ball/coin prices if the tax
burden was passed onto them. It should be noted, however, that tax burden removal from pachinko halls
should likely improve their profitability and, consequently, business performance. This scenario, when
realized, may boost pachinko/pachislot machine sales.
The Fields group is aiming at medium-to-long term sustainable development by emphasizing Intellectual
Property (IP) such as characters and maximizing the value of IP that it acquired, held and created.
To realize this aim, the company’s six fields of comics, animation, movies/TV/live show, and interactive
media such as games, consumer products, and pachinko/pachislot are going ahead with raising IP value,
while working together to develop and commercialize its IP.
According to the company, the main initiatives for development and commercialization of IP in 1H were:




The “HERO’S Monthly” comic magazine, which is intended to create heroes, published the third
volume of the “ULTRAMAN.” This comic book has been sold steadily, with a cumulative total of
approximately 900,000 volumes sold.
A total of 24 episodes of “GINGA KIKOTAI: Majestic Prince” were broadcast as a TV animation linked
to the comic magazine. Goods were developed and sold in conjunction with this animation. In
addition, the Fields group took measures to expand it into other media formats, as with the
development of social games (native application).
In the “BERSERK” series, following the release of animated movies (trilogy), the Fields group
developed and sold social games (Web application) and a pachinko machine.
In the “Ultraman” series, we worked to attract a new fan base through comics. The company also
broadcast TV shows and movies of “Ultraman Ginga” and “ULTRA MONSTERS RUSH: ULTRA
FRONTIER” and developed arcade games in collaboration with partner companies to expand the
number of fans in families. Working with pachinko and pachislot machine manufacturers, it
implemented several measures to promote the development and sale of pachislot machines in the
“Ultraman” series.
The 1H sales and operating profit respectively accounted for 30.3% and 17.4% of the company’s full-year
FY03/14 estimates. Fields said that the 1H results were largely in line with its estimates, adding that the
release of new titles in 2H should bring the full-year results to target levels.
Q1 FY03/14 Results (announced on August 6, 2013)
Sales were 5.7 billion yen (-72.8% YoY), operating loss was 3.8 billion yen (operating profit of 283 million
yen in the previous year), recurring loss was 3.8 billion yen (recurring profit of 574 million yen in the
previous year), and net loss was 2.3 billion yen (net profit of 342million in the previous year). The
company stated that these results were largely in line with its estimates (undisclosed) and, consequently,
it maintained its full-year earnings forecast.
The company did not disclose Q1 FY04/14 forecasts, but results were in line with management’s
expectations, according to the company. The main factor behind the earnings decline in Q1 FY03/14 was
a drop in the number of pachinko and pachislot machines sold YoY, attributable to more machines planned
for launch in Q2 FY03/14 than in the previous year. The company planned to launch several major new
titles in Q2 FY03/14.
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In Q1 FY03/13, the company released two new pachinko machines and booked a portion of sales of the
pachislot machine “Monster Hunter,” which was pushed back from FY03/12. On the other hand, Fields
launched only one pachinko machine, “Beyond the Heavens,” during Q1 FY03/14.
The Fields group is aiming to achieve sustainable long-term growth by emphasizing intellectual property
(IP) such as characters and maximizing the value of IP that it has acquired and created. To achieve this
goal, the company is raising the IP value in the following six fields: comics, animation, movies/TV,
interactive media such as games, consumer products, and pachinko and pachislot machines.
Fields made the following comments on its initiatives in main businesses:
The company began broadcasting “Ginga Kikotai: Majestic Prince” on television in April 2013 in
conjunction with the comics, as well as promoting planning and development of products and services
utilizing IP. As for the Ultraman series, the company began broadcasting the latest television series,
“Ultraman Ginga” in July 2013, and developed character goods utilizing its IP working together with
partner companies.
Pachinko/Pachislot Industry Conditions
Fields stated that the industry environment did not see major changes during the period. Over the past
several years, pachinko halls have become increasingly careful in installing new machines. This has made
it difficult to have megahit titles while causing a wider spread between sales of popular and unpopular
titles. In recent months, pachinko halls were increasingly changing their pachinko machine lineups, from
max-type machines to more middle-types. According to Fields, middle-type machine utilization at
pachinko halls has stayed at a high level, suggesting a possible future recovery in player population.
Status of Fields’ Pachinko/Pachislot Machine Sales
The total number of pachinko and pachislot machines sold was about 18,000 units (down about 46,000
units over the previous year). In Q2, the company released a new pachinko title “CR Evangelion 8” in July
2013 and launched several promising titles, such as pachislot machine “Devil May Cry 4,” pachislot
machine “Kaido Mokushiroku Kaiji 3,” and new-generation pachinko machine “BERSERK” as planned.
For details on previous quarterly and annual results, please refer to the Historical Financial
Statements section.
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FY03/14 Outlook
FY03/14 Company Estimates
(Million Yen)
Sales
YoY(%)
CoGS
Gross Profit
YoY(%)
GPM(%)
SG&A
FY03/13
FY
108,141
Est.
FY
120,000
17.3%
11.0%
74,862
33,279
6.2%
30.8%
22,964
SG&A/Sales
Operating Profit
YoY(%)
OPM(%)
Recurring Profit
YoY(%)
21.2%
10,314
12,500
21.0%
9.5%
21.2%
10.4%
10,268
12,500
18.6%
21.7%
RPM
9.5%
10.4%
Net Income
YoY(%)
4,720
6,300
-21.2%
33.5%
The company intends to continue investing in acquiring, creating, and promoting its comics, animation,
and movie/TV segments to maximize value of its intellectual property (IP). In the merchandising field, the
company intends to enhance value of its IP through product and service development to increase its fan
base, and realize profits by developing businesses focusing on interactive media, consumer products, and
pachinko and pachislot machines. In the pachinko and pachislot machines segment, the company plans to
enhance its product line-up, supported by developing major titles (the company is targeting sales of
450,000 units per annum compared with 328,000 units sold in FY03/13), as well as expanding its
distribution channels.
For FY03/14, the company intends to increase its product line-up, but this could be pushed back to the
next term. SR Inc. believes that the company’s expected new title releases for the second half are
conservative. The company has been expanding its distribution channels by increasing its sales staff and
sales offices nationwide, and reducing the number of pachinko and pachislot halls under a salesperson’s
coverage. The company aims to improve the quality of services provided to hall operators by
understanding their needs, shortening access time (i.e., responding in a timely manner), and reduced the
number of halls for each salesperson.
The company manages its earnings performance on an annual basis, and consequently, does not provide
earnings forecast for the first half of the fiscal year. SR Inc. estimates that the company earns more profits
in the second half of the fiscal year. For FY03/14, the company intends to pay a dividend of 50 yen per
share, for a dividend payout of 26.3%.
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Long-Term Outlook
The company is considering revisions to some numerical targets to bring them more in line with the new
business model presented in May 2012. In terms of quantitative growth, conventionally the company
would compile business plans based on profit plans for each type of media. However, the company now
wants to place more emphasis on the overall comprehensive earnings generated through utilization of
each IP. As such, the company does not want to rely on conventional absolute-value based targets, but
instead wants to enhance its earnings capacity and business model based on growth rates.
SR Inc. held the following views of Fields as of June 2013. Previously there had been a strong impression
that the company’s results relied too heavily on the hit “Evangelion” series. However, SR Inc. believes that
the company has succeeded in broadening income sources through collaborations with such firms as
Kyoraku Sangyo (unlisted), Enterrise Co. (subsidiary of video game maker Capcom Co.; TSE1: 9697) and
Mizuho Corp. (subsidiary of Universal Entertainment Corp.; JASDAQ: 6425). From a longer-term view, SR
Inc. also likes how the business vision and growth strategy of the company (i.e., development of various
contents) has been taking form. SR Inc. will need to monitor how the new business model takes shape,
particularly whether or not the company can achieve upward momentum involving business activities and
maximizing the value of its original IP.
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Business
Summary
The company has two main businesses: the planning, development, and distribution of
pachinko/pachislot machines; and the planning, development, and distribution of intellectual property
(IP).
Up until FY03/12, the company had four reportable segments: Pachinko/Pachislot (PS) Field, Mobile Field,
Sports Entertainment Field, and Other Field. In connection with the full-year FY03/12 results release, the
company announced its decision to shift away from its traditional business model focusing on the PS Field
and move into a new model underpinned by IP. In line with that decision, the company aims to grow
further by rebuilding strategies based on the “growth-oriented business model” (seamlessly synergistic
business development involving Comics, Animation, Movie/TV, and Merchandising). Accordingly, in
FY03/13, the company consolidated the previous four segments to form a single segment centered on IP.
Business Description
Comics
Comics are the source of the company’s IP. Through the Comics business, the company creates and
acquires original work, stories, and characters.
HERO’S Inc., a joint venture with Shogakukan Creative Inc., publishes the comic “Heroes Monthly.”
First launched on November 1, 2011, the company distributes “Heroes Monthly” through pachinko halls
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and convenience stores run by Seven-Eleven Japan Co., Ltd., a subsidiary of Seven & i Holdings Co., Ltd.
(TSE1: 3382). For this monthly comic book, the company appears to be pursuing a business model
different from those used by other comic book publishers.
Animation
In this business, the company makes animation films based on popular works in comics and other media.
One example is the “BERSERK” animation film series based on the popular “BERSERK” manga series.
Fields subsidiary Lucent Pictures Entertainment, Inc. produces the film series by employing the latest
animation technologies. Set in a medieval Europe-inspired fantasy world, the story centers on an
orphaned mercenary who handles a huge sword and travels to get his revenge. A comic magazine
serialized the manga in 1989, and a total of roughly 33 million copies of the manga series have been sold
worldwide as of 2012. The company intends to diversify “BERSERK”-related IP use, such as for social
games, pachinko/pachislot machines, and licensed goods, and thereby maximize the IP value.
Movie/TV
Through movies and TV series, the company increases the market recognition for related works and
maximizes their values. For example, movie production subsidiary Tsuburaya Productions Co., Ltd.
produces movies and TV programs for the Ultraman series while spreading the use of Ultraman characters
in many forms of media. The company aims to grow Ultraman a global-scale character, and to this end it
plans to cooperate with powerful business partners.
Merchandising
In the Merchandising business, the company generates earnings from multimedia IP commercialization.
Larger fan base means greater IP values. By channeling such IP values into interactive media, consumer
products, and pachinko/pachislot machines, the company aims for a positive cycle of fan base and
earnings growth. Interactive media here refers to games, social networking services, etc.

Interactive Media
The company promotes such pachinko/pachislot-related contents as “NanaPachi” (online
pachinko/pachislot games) and “Fields Mobile” (website for feature phones). Also, the company grants
the use of its non-pachinko/pachislot-related contents (i.e., IP) in social games while offering “Shameji”
(photo-related application for mobile phones) and other communication services. In December 2010, the
company established IP Bros. Inc. jointly with NHN Japan Corporation (operator of online game portal
Hangame). IP Bros. helps the company provide its and partners’ IP for a variety of gaming platforms.

Consumer Products
The company plans, develops, and sells IP-based goods through its own store network while promoting
IP merchandising on pachinko/pachislot machines. Subsidiary Total Workout Premium Management Inc.
runs a fitness club business, provides media-related management services to professional athletes, and
offers special fitness support services for particularly health-conscious members.

Planning, Development, and Distribution of Pachinko/Pachislot Machines
This is the stable cash-flow source in the company’s Merchandising business.
As a fabless entity, the company creates contents or acquires merchandising rights to promising contents
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in Japan and overseas. It then adds value through product planning, outsources development and
manufacture to partners, and sells finished pachinko/pachislot machines as the sales agent or distributor.
Although it does sell machines made by non-partners, most machines are made by partners.
Fields’ added value comes from its ability to obtain and combine proprietary content to plan and develop
pachinko/pachislot machines. Because the company is the largest independent distributor with a national
sales network, its customers enjoy the benefit of purchasing titles from several different manufacturers
through a single sales contact. Its sales force has compiled a database about market trends and best
practices. The company shares this accumulated knowledge with pachinko halls, fostering customer
loyalty. Pachinko/pachislot machines require roughly two to three years from content search, study, and
acquisition to finished product delivery.
of March
31, 2013
As ofAsMarch
31, 2013
Source: Company data
The company sells pachinko/pachislot machines in two ways. In distribution sales, the company sells
directly to pachinko halls via its regional and branch offices. It uses this sales method for most of the
pachislot machines and some of pachinko machines it sells. In the agency sales method used for pachinko
machines, the company serves as sales broker.
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Source: Company data
In distribution sales the company purchases machines from machine makers and sells them to pachinko
halls. In agency sales, acting as a sales broker for machine makers, the company creates transaction
agreements between machine makers and pachinko halls, collects payments from pachinko halls,
prepares for pachinko hall openings, and provides after-sales services. By doing so, the company receives
commissions from machine makers. Sales are booked differently in the two methods. This means that the
company’s sales are a function of the composition of distribution and agency sales.
Distribution sales: Machine sales to pachinko halls are booked as sales in the month of sales.
Payments for machines purchased are booked as COGS.
Agency sales:
Commissions received from machine makers upon machine sales are booked
as sales in the following month of sales.
As of March 31, 2013, the company had more than 300 sales staff at seven regional offices and 26 branch
offices nationwide. The company’s salespeople cover approximately 40 accounts each. Salespeople
employ a “consulting sales” approach where they contribute to efficient pachinko hall management. The
company has machine showrooms in all of its branch offices. Fields utilizes two distribution channels. The
first is a direct channel (selling directly to hall operators); around 70% of machines are sold using the
direct channel. The second is sales through resellers; this channel is lower margin than the direct channel,
but sometimes makes economic sense due to the small size or geographic location of end customers.
The company has been expanding its distribution channels since FY03/13. In FY03/14, Fields established
seven regional and 37 branch offices nationwide while expanding its sales team (400 staff in total). The
number of pachinko and pachislot halls under a salesperson’s coverage was reduced, and access time to
such hall operators was shortened. The company aims to strengthen its sale support to affiliated pachinko
and pachislot machine manufacturers. Machine volumes are the main swing-factor for earnings (see chart
below).
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Strategic Partnerships
The company partners with key machine manufacturers to jointly promote wide-ranging machine brands.
For these manufacturers, the company acts as the sole distribution agent.
Rodeo Corp.:
Subsidiary of Sammy Inc. under Sega Sammy Holdings Inc. (TSE1: 6460),
equity-method affiliate of Fields (Sammy: 65.0%; Fields: 35.0%). Pachislot focus.
Since its tie-up in 2001, the company has produced hit titles such as “SALARYMAN
KINTARO” and “Onimusha: Dawn of Dreams.”
Bisty Co., Ltd.: Subsidiary of SANKYO Co., Ltd. (TSE1: 6417), Fields’ partner pachinko/pachislot
machine manufacturer. Since its tie-up in 2003, Bisty has developed a variety of
titles including the Evangelion series.
OK Co., Ltd.:
Tie-up with KYORAKU SANGYO (unlisted) in February 2008. Fields and KYORAKU
SANGYO jointly launched new brand “OK” to create a new pachinko market and
expand the pachinko fan base. A new-generation pachinko machine “GHOST IN
THE SHELL STAND ALONE COMPLEX” was introduced in October 2012.
Enterrise Co.: Subsidiary of Capcom Co., Ltd. (TSE1: 9697), a leading video game company, Fields’
partner. Hit titles include the “Sengoku BASARA” series and “Biohazard 5” series.
Mizuho Corp.: Fields and Universal Entertainment Corp. (JASDAQ: 6425) signed a basic joint
business agreement in 2011. Fields intends to pursue various entertainment-related
businesses jointly with Mizuho, a Universal Entertainment subsidiary.
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Sales by Brand
(Units)
Sammy Group
Change YoY
FY03/09
FY03/10
FY03/11
FY03/12
FY03/13
41,536
28,762
121,691
81,820
104,549
-67.5%
-30.8%
323.1%
-32.8%
27.8%
262,087
363,056
306,585
263,530
114,092
-20.6%
38.5%
-15.6%
-14.0%
-56.7%
Enterrise
-
2,498
16,119
7,264
47,889
Change YoY
-
-
545.3%
-54.9%
559.3%
OK
-
-
-
-
32,437
Change YoY
-
-
-
-
-
SANKYO GROUP
Change YoY
Others
Change YoY
Total
Change YoY
27,582
55,564
35,878
59,776
29,143
2.5%
101.5%
-35.4%
66.6%
-51.2%
331,205
449,880
480,273
412,390
328,110
-31.6%
35.8%
6.8%
-14.1%
-20.4%
Major hit titles, such as the Evangelion series developed jointly with SANKYO subsidiary Bisty, are
significant earnings drivers for Fields. Evangelion is a hit animation franchise that has gained further
popularity since the release of its new movie. The series rose to popularity in 1995-1996 when 26
episodes of the show were broadcast on TV Tokyo. The company has sold more than 1.8 million machines
based on Evangelion-related IP by the end of FY03/13.
Business Model
Based on the “growth-oriented business model,” Fields is pushing efforts to maximize the value of its IP
portfolio. The “growth-oriented business model” will have the following cornerstones. Through synergies
of these cornerstones, the company aims to maximize the value of its IP portfolio and realize continuous,
organic business expansion.
1. Comics: Acquire/create content (original titles, stories, characters, etc.)
2. Animation: Raise the added value of content through CG and other leading-edge technologies
3. Movies/TV series: Spread animated content in the market and expand fan base
4. Merchandising/commercialization (games, media, SNS, consumer products,
pachinko/pachislot): Use IP effectively in each sector to improve profitability
Some examples of how the company is working to acquire and generate IP include “Heroes Monthly,”
“BERSERK” and “Ultraman.” The company intends to use such IP assets in various media to accelerate its
fan base growth from FY03/13 onward. For instance, the business model for “Heroes Monthly” is to target
profits by first starting with comics and from there move to animation, television series and movies, and
ultimately to merchandising, SNS, consumer products, and new pachinko/pachislot titles. The company
hopes to increase the number of fans in all of these fields, raise the value of its IP, generate profit, and
then again pour these results back into comics.
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Group Companies
Fields Group companies operate in a variety of areas, such as comics, animation, mobile, and
pachinko/pachislot machines. As of March 2013, the company had 16 subsidiaries, seven equity-method
affiliates, and one related company. Main group companies are listed below (when joined the group;
Fields’ stake).
Comics
 HERO’S Inc. (April 2010; 49.0%): Plans, produces, and manages comic magazines and character
contents
 Kadokawa Haruki Corp. (March 2005; 30.0%): Plans, produces, edits, publishes, and sells books and
magazines
Animation
 Lucent Pictures Entertainment, Inc. (October 2007; 90.0%): Plans and produces animation films
 Digital Frontier Inc. (April 2010; 86.9%): Plans and produces computer graphics
Movie/TV
 Tsuburaya Productions Co. Ltd. (April 2010; 51.0%): Plans and produces movies and TV shows. Plans,
produces, and sells character merchandise
 SPO Inc. (March 2008; 31.8%): Plans, produces, and distributes movies
Merchandising
Interactive Media
 IP Bros. Inc. (December 2010; 85.0%): Runs IP-based digital content business. Develops and
manages websites dedicated to pachinko/pachislot machines
 Future Scope Corp. (October 2006; 83.3%): Provides mobile content-related and online shopping
services.
Consumer Products
 Total Workout Premium Management Inc. (May 2011; 95.0%): Runs fitness clubs
 Express Inc. (December 2007; 80.0%): Runs fitness clubs
Pachinko/Pachislot Machines
 Fields Jr. Corp. (March 2002; 100.0%): Provides maintenance services
 Shin-Nichi Technology Co. (January 2008; 100.0%): Develops machines
 Microcabin Corp. (January 2011; 85.0%): Plans and develops software
 Nex Entertainment Co. (November 2011; 64.6%): Plans, produces, develops, and sells software
 BOOOM Corp. (May 2009; 51.0%): Plans and develops machines
 Rodeo Corp. (March 2002; 35.0%): Develops and manufactures machines
 G&E Corp. (May 2005; 33.3%): Runs comprehensive entertainment business school
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Profitability Snapshot and Financial Ratios
Profit Margin
GP Margin
OP Margin
RP Margin
NP Margin
Financial Ratios
ROA
ROE
Total Asset Turnover
Inventory Turnover
Days of Inventory
Quick Ratio
Current Ratio
Equity Ratio
Net Debt / Equity
OCF / Current Liabilities
OCF / Total Liabilities
FY03/09 FY03/10 FY03/11 FY03/12 FY03/13
Cons.
Cons.
Cons.
Cons.
Cons.
32.9%
40.5%
33.9%
34.0%
30.8%
2.7%
12.2%
12.7%
9.2%
9.5%
1.4%
11.7%
13.2%
9.4%
9.5%
-2.0%
5.0%
7.3%
6.5%
4.4%
FY03/09 FY03/10 FY03/11 FY03/12 FY03/13
Cons.
Cons.
Cons.
Cons.
Cons.
-2.8%
4.0%
9.5%
6.4%
4.4%
-3.7%
7.9%
15.8%
11.5%
8.6%
1.40
0.82
1.31
0.98
1.01
75.8
43.7
76.3
29.4
46.2
4.8
8.4
4.8
12.4
7.9
205.4%
136.8%
158.8%
139.1%
137.9%
333.0%
158.2%
185.1%
165.6%
153.5%
77.6%
51.3%
60.3%
55.4%
51.5%
-20.2%
-32.8%
-29.5%
-32.4%
-40.5%
0.55
0.24
0.29
0.26
0.29
0.33
0.21
0.25
0.24
0.26
While true peer analysis is not possible due to the company’s unique business model, ROE trends show
high profitability. Recent years saw operating profit in the 10-14 billion yen range. The “growth-oriented
business model” can be viewed as the company’s attempt to further raise profitability.
Strengths and Weaknesses
Strengths:
 Sales Power: Manufacturers use Fields to take advantage of the company’s large and skilled sales
force, enabling them to extend their geographic reach and accelerate their speed to market.
 Brand creativity: The ability to create new, distinct brands gives the company's partners more
bandwidth to sell product while defraying their marketing costs. (Operators tend to allocate hall-space
per brand; distinct labels enable manufacturers to “backdoor” additional machines into one venue.)
 Alliances with top manufacturers possessing high level of technology and development
skills
Weaknesses:



High dependency on hit titles
Lack of manufacturing capability limits profit sources to distribution margins
Historically, uneven execution among group companies
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Main Facilities
Fields Corporation’s operational backbone is based on its national sales network. This includes 26 branch
offices (as of FY03/13) located in Hokkaido-Tohoku (3), North Kanto (3), Tokyo (6), Nagoya (3), Osaka (4),
Chugoku-Shikoku (3) and Kyushu (4).
Market and Value Chain
This section focuses on the pachinko/pachislot machine market.
Market Overview
The total domestic leisure market was estimated at 64.7 trillion yen in fiscal year 2012 (Source: “White
Paper on Leisure 2013,” Japan Productivity Center). Pachinko/pachislot was estimated at 19.1 trillion yen
accounting for about 29% of the leisure market, of that amount 17.3 trillion yen was returned to players
in payouts or “winnings.” Of the remaining 2.4 trillion yen, roughly 1.2 trillion yen was reinvested by
operators into new machine purchases (company estimate).
Market Trends
2000
(Million Yen)
Pachinko
Market Size
568,300
Machines Sold (Thousand)
3,360
Average Price Per Machine (Yen) 169,137
Pachislot
Market Size
314,500
Machines Sold (Thousand)
1,130
Average Price Per Machine (Yen) 278,319
2007
2008
2009
2010
2011
2012
868,600 921,300 985,200
3,170
3,330
3,330
274,006 276,667 295,856
886,900
2,900
305,828
826,700
2,600
317,962
772,900
2,490
310,402
502,500 247,800 225,800
1,740
910
760
288,793 272,308 297,105
286,700
970
295,567
375,000
1,250
300,000
429,900
1,320
325,682
Industry data shows that the market remains stagnant. The player population was 11.1 million in 2012
compared with 23.1 million in 1997 (roughly one in seven Japanese were pachinko and pachislot players).
The number of pachinko halls declined to 12,149 in 2012 from 18,224 in 1995 (source: National Police
Agency). A decrease in the amount of cash flow available for new investments has forced some smaller
operators to sell or shut operations. At the same time, hall sizes have become larger increasing to an
average of 377 installed machines per hall in 2012 from 261 machines in 1995. Larger chains also appear
to be gaining scale highlighting continued polarization of the market.
Order trends for Fields are tied to the financial health of its pachinko hall customers. Logically, the higher
the cash flows of pachinko halls, the more funds they can spend on new equipment. Industry new
machine investment is broadly defined by the average number of times halls “turn” their machine line-up
per year. In 2011, turnover for pachinko was 0.84 times and for pachislot 0.85 times (source: Yano
Research Institute, National Police Agency).
In terms of the machine market, pachinko machine sales rose from 3.7 million machines in 1995 to a peak
of 4 million machines in 2005. But since then, pachinko machine sales have been declining. On the other
hand, pachislot machine sales expanded five-fold to 1.8 million in 2005 off a low base of 350,000
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machines in 1995. Following the introduction of stricter regulation in 2007, demand for lower gambling
nature pachislot machines fell before recovering from the second half of 2009.
As the size of the market has changed so competition between manufacturers has intensified. Well-known
franchises have a tendency to generate repeat sales, yet breaking into the top ranks has not been easy for
smaller players. Today, while top-selling blockbusters may still garner over 200,000 machines in sales,
less popular titles may not even sell 10,000 machines. The chart below illustrates market share per
manufacturer on a machine basis (source: Yano Research Institute, Trends of Pachinko Related
Manufacturers and Market Share 2012). Pachinko appears less concentrated compared with pachislot.
Across both segments, SR Inc. believes the success of the company is partly due to its ability to partner
with key players at the development stage. Manufacturers, in turn, have reason to partner with Fields as
it enables the creation of secondary brands and higher penetration per account resulting in a higher
market share.
Pachinko Market Share
Installed Base ( Fiscal 2012)
Pachislot Market Share
Installed Base (Fiscal 2012)
8.7%
17.8%
29.1%
15.3%
21.8%
70.0%
14.6%
10.0%
14.0%
20.3%
10.1%
8.3%
KYORAKU SANGYO
SANKYO
Sammy
Sanyo Bussan
Newgin
Others
Sammy
YAMASA
SANKYO
DAITO GIKEN
Universal
Others
Source: Yano Research Institute, Trends of Pachinko Related Manufacturers and Market Share 2012
The company believes a recent move away from dependency on high gambling nature machines towards
healthier and more entertainment-orientated machines should resume growth for the pachinko industry
in the near future. While it is difficult to provide solid proof of this view, consumers’ average leisure time
has been increasing and the company believes the evolution and growth of the pachinko industry into one
of the choices of entertainment to fill this increased leisure time is a likely scenario. In addition, the
pachinko market appears to be relatively impervious to the economic cycle. The company thinks that the
decline of the playing population is related more to the peculiarities of the pachinko and pachislot markets
themselves.
Market Growth Potential & Cyclicality
The market is mature and arguably in secular decline due to Japan's declining population and emerging
forms of passive entertainment. However, industry innovation could reverse or slow what has been a
gradual decline. The key cyclical drivers are government regulation and the industry's growth as a distinct
type of popular entertainment. The industry is regulated by the National Public Safety Commission. Rules
on the approval and certification of machines are set in accordance with the Entertainment Business
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Control Law per each prefecture.
Historically, regulators have tended to change the technical specifications regarding gambling nature
limits every several years. The goal has been to prevent excessive gambling and trends in high-gambling
nature machines have been easing. For instance, a change in regulations in 2004 led to a de-emphasis in
the gambling aspect of pachislot machines, and to a big wave of replacement sales in 2007. Pachislot
machine sales then declined as some players gravitated to pachinko. However, as manufacturers compete
to develop machines compliant with the newest regulations and increase the entertainment aspect of new
machines there has been an acceleration in both hardware and software innovation.
According to Fields, the gambling aspect has an influence on players and thus potentially on market
growth. Since FY03/11, many manufacturers have focused on so-called "max-type" machines where
average spend per player tends to be higher when compared with other types of machines, but the
expected return is also likely to be higher (which can be appealing to serious players). This means on
average a player loses money faster on these types of machines. Although max-type machines could
mean higher cash flow for pachinko halls in the short run, Fields was concerned this trend might alienate
casual players and could be an unhealthy trend for the overall market. However, from FY03/12, such trend
has shown a turnaround: pachinko halls have increasingly installed machines with low gambling nature
(e.g., light-middle and middle types) because these machines could push up machine utilization.
Classification of pachinko specifications (i.e., jackpot-probabilities) is based on explanations from the
company. Probabilities: max-type is 1/370-1/399; middle-high is 1/320-1/369; middle-low is 1/280-1/319;
light-middle is 1/150-1/279; “amadeji” class is 1/149+.
SR Inc. thinks Fields could be a long-term beneficiary from the rise and fall in popularity of different
machines. Regulatory revisions can upstage market leaders and give manufacturers a short window when
they need to scramble for new innovative products. The company helps manufacturers plan and develop
new product lines to sell to halls that could be otherwise reluctant to increase dependence on a particular
maker.
Customers
Pachinko halls are the company’s clients. Pachinko halls could buy directly from manufacturers, but the
benefits of using Fields include a single supplier relationship (i.e., they can buy titles of different
manufacturers from Fields) and market knowledge that the company can share (such as which machines
are popular nationwide).
Suppliers
Field’s main suppliers are pachinko/pachislot machine manufacturers. This is the core relationship
defining the company’s business model. The relationship is mutually beneficial—manufacturers provide
the company with products to sell, and in return receive content rights, design ideas and benefit from the
sales channel.
Barriers to Entry
Barriers to entry are high; the industry has a number of sophisticated and well capitalized players, while
products require substantial development costs, and carry high failure rates. The company’s business
model is unique and would be difficult to replicate. It possesses an extensive expert sales network and
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has long-term relationships both with top manufacturers and thousands of pachinko halls. With roughly
300 salespeople in daily discussions with pachinko hall operators, the customer relationship base is sticky
and it has extensive information about customers. Moreover, pachinko tends to be a personality-driven
industry reliant on trust. Incumbents with existing relationships therefore have a natural advantage.
Finally, the pachinko hall operator market is fragmented and a newcomer would need significant time to
gather a critical mass of customers to become profitable.
Competition
The company estimates there are approximately 1,000 distribution companies in the pachinko/pachislot
market. However, no other company has a business model or a nationwide sales network that rivals Fields’.
The company's products though do in fact compete with those of its partner and non-partner
manufacturers. Listed manufacturers include SANKYO Co., Sega Sammy Holdings Inc., Heiwa Corp.
(TSE1: 6412), and Universal Entertainment Corp.
Substitutes
Casinos: As of the end of Q1 FY03/13, casinos were officially banned in Japan. However, there was an
ongoing debate regarding potential legalization. SR Inc. thinks even if casinos were legalized, only a
limited number would be licensed to operate. As such, the substitution effect would negligible on the
larger network of nearly 12,149 pachinko/pachislot halls in local neighborhoods across Japan.
Strategy
Based on the “growth-oriented business model,” the company is pushing efforts to maximize the value of
its intellectual property (IP) portfolio. Fields sees its core strength as its ability to find and leverage
content for its pachinko and pachislot clients. However, the company’s longer-term ambition is to extend
its capabilities beyond the pachinko/pachislot business. Fields has not been able to develop a large
enough or profitable enough business outside of pachinko/pachislot for the past several years, but its
profitability has been recovering, and the company may be back on a growth track. While pachinko and
pachislot will likely remain the main earnings drivers for the time being, SR Inc. estimates that Tsuburaya
Productions could determine Fields’ future success. Also, HERO’S Inc. is responsible for creating content
and on top of contributing toward the pachinko and pachislot business, it is expected to be involved in
other entertainment ventures, such as digital comics.
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Historical Financial Statements
Summary
Earnings Results Discussion for the Year Preceding Current Fiscal Year
FY03/13 Results (announced on May 7, 2013)
Sales were 108.1 billion yen (+17.3% YoY), operating profit was 10.3 billion yen (+21.0% YoY) recurring
profit was 10.3 billion yen (+18.6% YoY), and net profit was 4.7 billion yen (-21.2% YoY). The main factor
behind this earnings fluctuation was the increase in the number of pachislot machines sold compared with
the previous year as a result of the launch of strong products in the pachislot market. A few subsidiaries
recorded extraordinary losses that caused net income to decline YoY. The company pursues business
activities with an emphasis on maximizing the value of its characters and other intellectual property (IP)
based on the “growth-oriented business model” (seamlessly synergistic business development involving
Comics, Animation, Movie/TV, and Merchandising) announced in May 2012.

IP Acquisition, Creation, and Development; Comics; Animation; Movie/TV
In the comics segment, the comic “Heroes Monthly” marked the first anniversary in November 2012 since
launch, as well as favorable publication of the “Heroes Mix” comic since its launch in September 2012.
Volumes one and two of the “Ultraman” comic series sere published, selling over 400,000 issues. In the
animation and movie/TV segment, the company plans to bring its comic stories to the screen. The
animation “Ginga Kikotai: Majestic Prince” began broadcasting on television in April 2013.
The company released three series of the animated movie “BERSERK.” This movie was selected for the
Special Achievement Award in the animation division at the Agency of Cultural Affairs’ 16th Japan Media
Arts Festival. The movie was also nominated for an award at the Festival International du Film d’Animation
d’ Annecy in France. Given the success of its animation, the company is expanding into new media. Fields
pursued plans to raise its name recognition for a number of IP by expanding them into the merchandising
segment.

Merchandising
In the merchandising segment, the company is enhancing its services and products for a broad range of
media and platforms, by expanding its stories and characters created and promoted from its comics,
animation, and movies/TV segments, to increase the value of its intellectual properties and maximize
profits. In interactive media, Fields was focusing on the high-growth social media field and advancing
activities to increase profitability in this segment. In the social game segment, the company focused on
planning and developing new game titles to enhance its competitive advantage over its competitors.
In the pachinko/pachislot sales business, the company is implementing a number of measures to increase
support from existing fans, as well as capturing new pachinko and pachislot players. The company
became the overall sales agent for a new pachinko machine brand, “OK” for a major pachinko machine
maker in FY03/13. The company received rave reviews for its “Biohazard 5” pachislot machine from its
fans. In FY03/13, the company sold 228,000 pachislot machines (up 49,000 units YoY), a record high.
However, it sold 100,000 pachinko machines (down 133,000 units YoY), mainly affected by the absence of
major model releases during the period. As a result, total unit sales of pachinko and pachislot machines
fell in FY03/13 over the previous year.
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Q3 FY03/13 Results (announced on February 5, 2013)
The company revised its full-year FY03/13 forecasts on February 1, 2013. Cumulative Q3 sales were 47.7
billion yen (+10.9% YoY), operating loss was 1.2 billion yen (22 million yen profit a year earlier), recurring
loss was 975 million yen (106 million yen profit a year earlier), and net loss was 677 million yen (1.1 billion
yen income a year earlier).
Based on the “growth-oriented business model” (seamlessly synergistic business development involving
Comics, Animation, Movie/TV, and Merchandising) announced in May 2012, the company was pushing
efforts to maximize the value of its intellectual property (IP) portfolio. In Merchandising (the main
earnings driver), the company released major titles in the growing pachislot machine market, which
resulted in higher pachislot machine sales YoY. Nevertheless, total machine sales were down YoY due to
lower pachinko machine sales YoY. The company has focused on social games in the fast-growing social
media field since Q3 FY03/12. In cumulative Q3 FY03/13, social games were a solid performance
contributor, according to the company.

The comic “Heroes Monthly” marked the first anniversary in November 2012 since launch. The comic had
18 different manga titles. Fields launched separate volume comics “Heroes Comics” in September 2012
with the aim of promoting the cross-media utilization of “Heroes Monthly” content. Of these manga titles,
the company has published 13 titles as separate comics, and the “Ultraman” series was particularly
popular.
Looking ahead, the company was pushing planning work to strengthen sales of the existing “Ultraman”
series targeted to families and children. At the same time, the company was advancing planning work to
make the “Ultraman” comics popular among teenagers and audience in their 20s and in overseas markets.
For the “BERSERK” animation film trilogy, Fields released the third film in February 2013. Also, it has been
decided to air robot-themed animation work “Ginga Kikotai Majestic Prince”—a joint project with SOTSU
Co., Ltd. (JASDAQ: 3711) and Toho Co., Ltd. (TSE1: 9602)—on TV from April 2013. In addition to these
activities, Fields was pushing a partnership strategy to jointly create various works with powerful IP
holders over the long term.

Merchandising
In interactive media, Fields was focusing on the high-growth social media field and advancing activities to
increase its profitability in the field. The company’s social games based on major IP assets in Japan were
a solid performer, and Fields was pushing efforts to launch cafés, shops, and amusement facilities using
one of Japan’s most famous IP assets. Also, the company said that it was planning and developing various
IP-based social games. As part of these efforts, Fields launched social game, “Beyond the Heavens: The
King’s Advance,” in December 2012.
The company plans to release five new social game titles in 2H FY03/13. In February 2013, the company
acquired a social game business from Spicysoft Corporation. The acquisition was aimed at gaining access
to established game engines and capable game developers as well as obtaining rights to Spicysoft’s game
titles. For example, one of the acquired game title, “KIDATSU! Dungeons Lord,” had about 250,000
registered users and was expected to contribute to the company’s earnings from February 2013.
In the pachinko/pachislot sales business, Fields released a new pachislot machine “Resident Evil 5” and a
new pachinko machine in this Q3. Unit sales performance in cumulative Q3 was about 78,600 pachinko
machine units (down 46,800 units YoY) and about 92,100 pachislot machine units (up 18,600 units YoY).
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Q2 (1H) FY03/13 Results (announced on November 2, 2012)
Sales in this 1H were 29.1 billion yen (-12.7% YoY), operating loss was 1.9 billion yen (1.6 billion yen
profit in 1H FY03/12), recurring loss was 1.7 billion yen (1.7 billion yen profit in 1H FY03/12), and net loss
was 980 million yen (2.4 billion yen profit in 1H FY03/12). In Merchandising (the main earnings driver),
the company has focused on social games (offered on social media platforms) since Q3 FY03/12. The
company’s social game offerings performed well in 1H, and the category’s performance improved
significantly YoY. On the other hand, pachinko/pachislot unit sales were down YoY mainly due to certain
titles’ launches being pushed back to 2H. The company maintained its full-year FY03/13 forecasts. In 2H,
the company plans to launch many social games for various social media platforms in Merchandising
business. In the pachinko/pachislot sales business, the company intends to release a big title on top of
those already announced.

In IP creation and development, Fields launched separate volume comics of “Heroes Comics” in
September 2012 with the aim of promoting the cross-media utilization of the comic “Heroes Monthly”
(launched in November 2011). The company commented that it would publish three to four separate
volume comics each month. To create proprietary IP, Fields officially launched a joint project with SOTSU
Co., Ltd. and Toho Co., Ltd. to develop animation work on robot-themed manga “Ginga Kikotai Majestic
Prince.” The manga was created with the initial plan to make animation works. For the “BERSERK”
animation film trilogy, Fields released the second film in June 2012. The third film is scheduled for release
in February 2013, and the company was planning and developing related IP for cross-media deployment.

Merchandising
To effectively use its IP assets in interactive media, Fields was focusing on the high-growth social media
field and advancing activities to increase its profitability in the field. More specifically, in 1H FY03/13, the
company was planning and developing social games using the IP it has acquired, created, and developed
and offering innovative gameplays. At the same time, Fields was spreading many contents on various
social media platforms. In the area of consumer products, Fields was pushing efforts to launch cafés,
shops, and amusement facilities using one of Japan’s most famous IP assets. Also, Fields made the
following comments on its pachinko/pachislot sales business:
According to Fields, in 1H FY03/13, the pachinko/pachislot market saw significant recovery in new
machine supply compared with 1H FY03/12 (impacted by the disaster). In the pachinko machine market,
Kyoraku Sangyo’s new title “Pachinko AKB48” was a major hit during the period and drove higher market
growth YoY despite failing to reach the growth level seen in two years ago. On the other hand, pachislot
machines continued sell robustly, boosting hopes for higher unit sales for full-year FY03/13.
Looking at three years since 2010, pachinko machine utilization rates in 2012 were largely flat YoY and did
not recovered to the level seen in the first six months in 2010, according to Fields. In contrast, pachislot
machine utilization rates were growing steadily over the same period mainly thanks to the release of
major titles. The only concern in the pachislot machine market would be somewhat weak utilization rates
from summer 2012, though the company estimated that the weak rates were due to many market
participants focusing on developing machines with low gambling nature, which resulted in no releases of
major titles after the summer. The company added that 2H FY03/13 would see the release of many major
titles and the pachislot market would continue to enjoy strong trends.
Status of Fields’ Pachinko/Pachislot Machine Sales
Unit sales performance in 1H was about 46,800 pachinko machine units (down 42,400 units YoY) and
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about 54,200 pachislot machine units (down 7,700 units YoY). These figures include the pachislot
machine “Monster Hunter” (release in Q4 FY03/12) and two new titles for pachinko and pachislot each. In
addition to sales activities for these machines, the company was preparing for the launch of new titles in
2H, such as a new-generation pachinko machine “GHOST IN THE SHELL STAND ALONE COMPLEX” (the
first collaborative title with Kyoraku Sangyo) and a new pachislot machine “Resident Evil 5.”
Q1 FY03/13 Results (announced on August 2, 2012)
Sales were 21.1 billion yen (+19.9% YoY), operating profit was 283 million yen (225 million yen operating
loss in Q1 FY03/12), recurring profit was 574 million yen (266 million yen recurring loss), and net income
was 342 million yen (284 million yen net loss). During Q1, in the Pachinko/Pachislot (PS) Field, the
company released one new pachinko and pachislot machine title each. Also, a portion of sales of the
pachislot machine, “Monster Hunter,” released in Q4 FY03/12 was booked for this Q1. These resulted in
Q1 performance being largely in line with company estimate.
Based on the “growth-oriented business model” (seamlessly synergistic business development involving
Comics, Animation, Movie/TV, and Merchandising) announced in May 2012, the company is pushing
efforts to maximize the value of its intellectual property (IP) portfolio. In FY03/13, the company intends to
focus on building frameworks required to acquire, create and develop characters and other forms of IP,
with the aim of establishing a character business that is sustainable over the medium and long term.
To create new IP, the company was involved with the planning and development of the comic “Heroes
Monthly,” launched jointly with Shogakukan Creative Inc. while promoting new projects. Also, through
animation-related projects (e.g., “BERSERK” animation film series), the company was developing new
video contents while pushing new initiatives to promote the use of animation contents in other forms of
media. Certain services (e.g., its IP provision to the social gaming sphere) were starting to generate
profits, according to the company.
In this Q1, the pachinko/pachislot market saw significant recovery in new machine supply compared with
Q1 FY03/12 (impacted by the disaster). In particular, the supply of pachislot machines has continued to
increase over the past two years, driving overall market expansion. The pachinko machine utilization rates
appeared to be lower YoY. Despite the release of new machines compliant with the new regulations in
June-July, these machines did not stimulate a demand boom. Still, the company commented it would
expect the market to recover with the help of anticipated hit machine launches. In contrast, the pachislot
machine utilization rates were high as in FY03/12. The company said the industry would likely see the
launch of major titles that are rich in gaming and entertainment value toward 2H and added the industry
would continue to enjoy favorable conditions.
Status of Company Pachinko/Pachislot Machine Sales
Unit sales performance in Q1 was 20,928 pachinko machine units (up 13,821 units YoY) and 43,862
pachislot machine units (up 7,612 units YoY). The new titles released during the period were the pachinko
machine “EVA Light III” (released in May 2012) and the pachislot machines “GTO Limit Break” (released
in June 2012) and “Monster Hunter” (released in Q4 FY03/12).
FY03/12 Results (announced on May 9, 2012)
The company downwardly revised its FY03/12 forecast on March 16, 2012. Actual results were largely in
line with the revised forecast. Sales were down 11.0% YoY at 92.1 billion yen with operating profit
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tumbling 35.1% to 8.5 billion. Net income fell 20.3% YoY to 5.9 billion yen due to the recognition of a
deferred tax asset from the dissolution/liquidation of its Japan Sports Marketing Inc. subsidiary and a
lower corporate tax burden. The company posted YoY declines in sales and profitability. However, this was
because the company released a number of blockbuster Pachinko and Pachislot machine titles in Q4
giving consideration to component supply shortage due to March 2011’s earthquake, and some sales
related to a pachislot machine released in Q4 are now to be booked in FY03/13.
The company has continued investing in the entertainment field based on a vision of maximizing
Intellectual Property (IP) value through the use of various forms of media, including pachinko/pachislot
machines, from the viewpoint of building a business centered on IP. These efforts can be seen in such
projects as its comic “Heroes Monthly” and the movie “BERSERK.”
Performance by segment:

PS Field: Sales of 83.9 billion yen (-10.8% YoY); Operating profit of 8.6 billion yen (-32.7% YoY)
Industry Situation:
Pachinko and pachislot machine manufacturers had changed their sales schedules with a focus on 2H
FY03/12 activity (October 2011 to March 2012), as component makers, such as semiconductor firms,
began recovering from March 2011’s earthquake going into summer 2011. Consequently, 1H sales were
sluggish industry-wide on a YoY basis as machine sales were focused on those units where components
had been procured pre-quake. However, the supply chain has recovered faster than initially expected and
for Q3 machine makers released numerous new titles, with a number of them becoming hit machines.
Pachinko hall operators have also been actively replacing models with new machines. Specifically, 2H saw
the increased replacement with major titles (each selling more than 50,000 units). Regarding the impact
of the November 2011 floods in Thailand there have been limited issues with component procurement,
however, the industry wide effect was not perceived to be particularly severe.
According to the company’s analysis, the number of pachinko machine titles sold during 1H declined by 29
to 92, while the number of pachislot machine titles offered decreased by 8 to 53. In 2H, during which time
supply chains damaged by the earthquake disaster were restored, the number of pachinko machine titles
sold increased by 14 to 106, while the number of pachislot machine titles sold declined by 8 to 48. This
trend is indicative of the pachinko/pachislot market where there tends to be a focus on major titles in the
second half, especially among pachislot machine makers. For the full year, the number of pachinko
machine titles sold declined 15 to 198 and the number of pachislot machine titles sold decreased by 16 to
101. So the number of titles fell for both types of machines, a result probably due in large part to impacts
from the March 2011 Great East Japan Earthquake.
Company Situation:
Given the above situation of most makers choosing to release titles in Q3, as a distributor to halls Fields
Corporation decided to go for Q4 releases of its titles to attract players. As for Q4, the latest release in its
hit Evangelion Pachinko machine series, “CR Evangelion 7,” was released in January 2012. This new title
was well received. The ongoing recovery in the Pachislot segment continued, and the company launched
“Evangelion—the Heartbeat of Life,” its second major title for the quarter, in February as well as a third
major title in March 2012: the pachislot machine “Monster Hunter.”
Some of the sales related to the pachislot title “Monster Hunter” are now to be booked in FY03/13 as
component procurement had been disrupted by the November 2011 flooding in Thailand. In addition, the
company delayed the release of a new Bisty Co., Ltd. title until FY03/13 to make the machine
specifications compliant with the regulations revised after April 1, 2012. Unit sales performance was
179,167 pachislot machine units (down 38,492 units YoY) and 233,223 pachinko machine units (down
29,391 units YoY).
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
Mobile Field: Sales of 1.9 billion yen (-5.3% YoY); operating profit of 11 million yen (-95.1% YoY).
Operating profit declined, but this was due to the results for some mobile content operations being
booked on a parent-only (PS Field) basis. As such, mobile-related results should not necessarily be viewed
as sluggish.

Sports Entertainment Field: Sales of 1.9 billion yen (-10.4% YoY); operating profit of 7 million yen
(operating loss of 290 million yen YoY)
Business reorganization helped to bring about a return to profitability.

Other Field: Sales of 5.4 billion yen (-7.2% YoY); operating loss of 139 million yen (operating profit of
315 million yen YoY)
 The operating loss was due to continued investment in the acquisition and creation of IP such as the
comic “Heroes Monthly” and the production and distribution of the movie “BERSERK.”
 The first issue of the comic “Heroes Monthly,” a joint venture with Shogakukan Creative Inc., debuted
in November 2011 and the eighth issue was released on June 1, 2012.
 Subsidiary Lucent Pictures Entertainment Inc. on February 4, 2012 released the anime film “BERSERK
I THE HIGH KING'S EGG” in theaters nationwide. There are plans to release the second installment in
this series, “BERSERK II THE BATTLE OF DOLDREY,” in June 2012.
 Tsuburaya Productions released the latest Ultraman movie “Ultraman Saga” nationwide in March 2012.

Pachinko/Pachislot Market Trends (May 2012 press briefing)
The company provided the following information about recent developments for the pachinko and
pachislot markets.
Installation Shares by Pachinko Machine Type
Looking at pachinko hall installation shares by machine types, the share held by “ ama-deji” type machines
(offer the best chance of winning, but payouts are smaller) have held steady, while shares held by the
“MAX” and “middle-high” type machines have continued shrinking. Meanwhile, shares have been
increasing for “middle-low” type machines such as “CR Evangelion 7” and “light-middle” machines.
Looking at these trends, the company thinks needs of pachinko fans are shifting, from machines with
strong gambling nature to those with somewhat weaker gambling nature but appealing content for
relatively casual entertainment.
Fields uses the following terms to classify pachinko machine specifications (odds of hitting a big payout).
MAX: odds 1/370-1/399, middle-high: 1/320-1/369, middle-low: 1/280-1/319, light-middle: 1/150-1/279
and ama-deji: at least 1/149.
Pachinko Machine Utilization
Pachinko machine utilization levels remained high between 2007 and 2008 (approximately 25,000
balls/day per unit). Utilization levels then continued declining from 2009 to 2011 due in part to the
emergence of the MAX-type machines with higher gambling elements. However, as the middle-low and
light-middle machines became more common from 2011, utilization has remained at a stable level
(approximately 20,000 balls/day per unit), suggesting the earlier decline had bottomed.
Pachislot Machine Utilization
Utilization levels declined sharply following the complete mandatory shift to the machines compliant with
Regulation 5 in October 2007 (approximately 9,000 coins/day per unit). However, from 2010 there was a
recovery mainly for ART (Assist Replay Time) and similar pachislot machines, and recently utilization
levels have been growing (approximately 11,000 coins/day per unit). The current utilization levels are on
par with those during the later stage of Regulation 4.
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FY03/12 (April-March) Top Selling Machine Titles
During FY03/12 the pachinko market had 15 top-selling machine titles defined as having sales of more
than 40,000 units. Fields produced two of these titles: “CR The Story of Ayumi Hamasaki—the prologue”
and “CR Evangelion 7.” The pachislot market had 17 top-selling machine titles defined as having sales of
more than 15,000 units. Fields produced three of these titles: “Kaze no Youjinbou—Memory of Butterflies,”
“Evangelion—the Heartbeat of Life” and “Monster Hunter.” Big hits for the pachislot industry were
concentrated in the second half of the year.
Pachinko/Pachislot New Titles Sales
The company estimated that the number of new pachinko machines sold market-wide remained at
roughly the same level as during FY03/11, while sales of pachislot machines were estimated to have
surged compared to FY03/11 and topped the one million unit mark.
New Management Policy (Summary Based on FY03/12 Financial Report)
Since its listing, the company had followed a business model focusing on the PS Field. This changed
several years ago: the company has worked to shift its focus to intellectual property (IP) in a bid to
achieve long-term growth. Approaching the 10th listing anniversary and the 25th founding anniversary,
the company is eyeing the establishment of a “growth-oriented business model” for the next 25 years.
With a new business model, the company aims for further corporate growth.
FY03/11 Results
Sales increased 56.2% YoY in FY03/11 to 103.5 billion yen with operating income up 61.7% at 13.1
million yen. The company attributed the dramatic improvement in sales and operating profitability to the
following:
Pachislot machine sales were particularly strong hitting record highs due to additional orders for the
“Onimusha: Dawn of Dreams” model launched in March 2010, and solid orders for other models such as
“Ore no Sora—Spirit of Young Justice” and “MOBASLO Evangelion—for your own wish.”
New subsidiaries Tsuburaya Productions Co. and Digital Frontier Inc. were included in consolidated results
beginning April 2010, improving group profitability.
The company sold 262,614 pachinko machines (down 68,120 units YoY), and had a 9.1% market share of
the pachinko machine market in FY03/11, the same level as the previous FY. The “CR
Evangelion—Evangelical of the Beginnings” pachinko game unit made a significant contribution to this
sales figure at 250,000 units. In the pachislot machine segment the company sold 217,659 units (a YoY
increase of 98,513 units), expanding its market share by 5.6% to 24.5% and maintaining the company's
top position in the space. Pachislot unit sales hit a record high driven by a solid product lineup, including
“MOBASLO Evangelion—for your own wish” (55,000 units), “Onimusha: Dawn of Dreams” (63,000 units),
“Ore no Sora—Spirit of Young Justice” (38,000 units) and “Sengoku BASARA 2” (16,000 units).
Combined operating profit for the group (excluding PS Field and inclusive of intersegment sales) was 261
million yen vs. 1 million yen operating loss in FY03/10.
FY03/10 Results
FY03/10 Results Report Card
Sales were 66.3 billion yen (-9.2% YoY), operating profit 8.1 billion yen (+314.3% YoY), recurring profit
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7.7 billion yen (+682.9% YoY), net income 3.2 billion yen (vs. a net loss of -1.4 billion yen in FY03/09).
As a percentage of the company forecast, the results were as follows:
Sales: 94.8% (vs. full year forecast of 70.0 billion yen)
Operating profit: 81.2% (vs. full year forecast of 10.0 billion yen)
Recurring profit: 77.6% (vs. full year forecast of 10.0 billion yen)
Net income: 73.1% (vs. full year forecast of 4.5 billion yen)
Revenues
Target: 70.0 billion yen (-4.2% YoY)
Result: 66.3 billion yen (-9.2% YoY)
Gross Profit
Target: 28.5 billion yen gross profit (+18.6% YoY)
Result: 26.8 billion yen (+11.9% YoY)
SG&A, Operating Profit
Target: 18.5 billion yen SG&A (-16.1% YoY)
Result: 18.7 billion yen (-15.0% YoY)
Target: 10.0 billion yen OP (+410.2% YoY)
Recurring Profit
Target: 10.0 billion yen (+909.1% YoY)
Net Income
Target: 4.5 billion yen (vs. -1.4 billion yen in FY03/09)
Result: 3.2 billion yen
Additional Discussion
Consolidated sales were somewhat below the initial company estimate (66.3 billion yen vs. 70.0 billion
yen; -5.2%). Parent sales were closer to the company forecast but also marginally below (61.3 billion yen
vs. 63.0 billion yen; -2.6%).
While the fact that the full-year estimates were not achieved is disappointing, the pachinko/pachislot
business appears to have resumed growth. A total of 449,880 machines were sold in the year (330,734
pachinko, 119,146 pachislot) vs. 331,205 in FY03/09 (+35.8% YoY). SR Inc. originally estimated total
sales of 450,000-500,000 machines so actual results were at the low end of estimates. At the same time,
SR Inc. notes that looking at aggregate numbers is not entirely meaningful due to differences in
profitability—lower pachinko machine sales are easily offset by a smaller unit increase of pachislot
machines. All in all, the pachislot business performed in-line with expectations while the pachinko
business underperformed.
In pachinko, the Evangelion series continued to dominate earnings while new non-Evangelion titles sold
approximately 100,000 machines. In terms of the recent dynamics of the overall pachinko market, there
has been a trend towards halls focusing on famous franchise titles and max type machines with high
gambling potential. The pachislot market seems to have started coming back to life and this could be
positive for earnings. The SG&A expenses in FY03/10 were slightly higher than the initial forecast but
down substantially YoY, in a big part due to the absence of D3 Inc. (D3) subsidiary in FY03/10 results. In
terms of consolidated operating profit, the overall performance of subsidiaries has improved and the
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company commented that the operating profit of most subsidiaries was “more or less in line with the plan.”
The dividend of 4,500 yen per share (2,000 yen at the interim and 2,500 yen at the year-end) was
identical to one paid in FY03/09. The payout ratio in FY03/10 amounted to 45.9%.
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Income Statement
Income Statement
(Million Yen)
Sales
Change YoY
CoGS
Gross Profit
SG&A
Operating Profit
Change YoY
Non-Operating Income
Non-Operating Expenses
Recurring Profit
Change YoY
Extraordinary Gains
Extraordinary Losses
Pretax Profit
Tax Charges
Minorities etc.
Net Income
FY03/09 FY03/10
Cons.
Cons.
73,035
66,342
FY03/11 FY03/12 FY03/13 FY03/14
Cons.
Cons.
Cons.
Est.
103,593
92,195 108,141 120,000
-28.3%
-9.2%
56.1%
-11.0%
17.3%
11.0%
49,010
24,024
22,063
1,960
39,452
26,889
18,764
8,124
68,464
35,129
21,993
13,136
60,865
31,330
22,803
8,527
74,862
33,279
22,964
10,314
12,500
-85.1%
314.5%
61.7%
-35.1%
21.0%
21.2%
528
1,497
991
484
846
7,761
1,136
588
13,684
574
440
8,661
738
784
10,268
12,500
-91.5%
683.1%
76.3%
-36.7%
18.6%
21.7%
269
3,840
-2,579
-126
-971
-1,481
53
597
7,218
3,900
29
3,289
215
488
13,410
5,883
6
7,520
8
404
8,265
2,099
174
5,991
10
1,276
9,002
4,224
57
4,720
6,300
-
128.6%
-20.3%
-21.2%
33.5%
Change YoY
-
Performance Overview
Sales can be affected by the mix between pachinko/pachislot sales due to accounting treatment
(pachinko revenues are a commission, pachislot revenues are for the full machine price). Field’s operating
profit trends track the underlying market cycle.
 FY03/09 Results
FY03/09 sales declined 28.3% YoY to 73.0 billion yen; OP declined 85.1% YoY to 1.96 billion yen. Reasons
were a delay in release schedule of large scale pachinko title “CR Neon Genesis Evangelion—The
Beginning and the End” combined with an operating loss of 1.3 billion yen in the Game Field business
(sales 12.6 billion yen) due to underperformance of D3. D3 was subsequently sold to NAMCO BANDAI
Games.
 FY03/08 Results
Sales growth YoY was mainly driven by replacement demand for pachislot machines related to regulatory
changes.
 FY03/07 Results
Sales declined YoY as halls faced funding challenges for purchasing new pachislot machines (regulatory
changes required machines to be replaced). Pachislot machine sales have higher profit margins than
pachinko, resulting in declines in profit margins (see table above).
 FY03/06 Results
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Sales rose YoY due to strong demand for both pachinko and pachislot machines. “CR Neon Genesis
Evangelion: Second Impact” was released during the year (selling 161,000 machines, 29.0% of total
Fields Corporation machine sales).
 FY03/05 Results
Sales rose YoY due to the popularity of “CR Neon Genesis Evangelion” pachinko machine (selling
approximately 125,000 machines, 26.0% of total Fields machine sales for the year) and +7.3% YoY
growth in pachislot machines (191,944 machines vs. 178,906 in FY03/04).
 FY03/04 Results
Sales rose YoY, but were affected by a change in revenue recognition for certain pachislot machine sales.
Under the revised policy, sales began to be recognized when machines shipped from manufacturers vs.
delivery and installation in halls. The accounting change resulted in an additional 6.0 billion yen of sales
during the year.
Balance Sheet
Balance Sheet (Million Yen)
Cash and Equivalents
Accounts Receivable
Inventories
Other
Current Assets
Tangible Assets
Intangible Assets
LT Investment Securities etc.
Fixed Assets
Total Assets
Accounts Payable
Short-Term Debt
Other
Current Liabilities
Long-Term Debt
Other
Fixed Liabilities
Total Liabilities
Shareholders' Equity
Net Assets
Total Liabilities & Net Asset
Working Capital
Interest-Bearing Debt
Net Debt
FY03/09
Cons.
11,181
4,324
963
8,667
25,135
10,898
2,761
13,268
26,929
52,064
1,981
781
4,785
7,547
2,230
2,791
5,021
12,568
40,420
39,496
52,064
3,306
3,011
-8,170
FY03/10
Cons.
15,916
33,088
1,519
6,171
56,694
9,721
2,333
12,578
24,634
81,329
26,610
720
8,515
35,845
1,510
2,785
4,295
40,141
41,741
41,187
81,329
7,997
2,230
-13,686
FY03/11
Cons.
15,873
27,948
1,357
5,873
51,051
10,089
5,070
12,760
27,920
78,971
17,939
869
8,779
27,587
965
3,397
4,362
31,949
47,601
47,021
78,971
11,366
1,834
-14,039
FY03/12
Cons.
18,344
34,402
3,134
6,931
62,811
10,980
4,372
15,437
30,790
93,601
29,100
1,068
7,757
37,925
439
3,682
4,121
42,046
51,895
51,555
93,601
8,436
1,507
-16,837
FY03/13
Cons.
23,314
42,017
2,343
5,035
72,709
11,151
4,540
18,226
33,918
106,628
36,604
943
9,818
47,365
109
4,055
4,164
51,529
54,957
55,098
106,628
7,756
1,052
-22,262
Increases in sales have tended to lead to higher accounts receivable, reflecting the company’s role as a
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distributor and its function as a trading partner. The company does not put pachinko machines on its
balance sheet and therefore inventories are not significant. The net interest-bearing debt
(interest-bearing debt minus cash and equivalents) has long been negative (practically debt-free). The
equity ratio has ranged between 39.1% and 77.6% from FY03/03-FY03/13.
Cash Flow Statement
Cash Flow Statement
(Million Yen)
Operating Cash Flow (A)
Investment Cash Flow (B)
Free Cash Flow (A+B)
Financing Cash Flow
Depreciation (A)
Capital Expenditures (B)
Working Capital Changes (C)
Simple FCF (NI + A - B - C)
FY03/09
Cons.
4,147
-6,182
-2,035
602
1,775
5,111
-7,107
2,290
FY03/10
Cons.
8,429
-1,011
7,418
-2,687
1,368
919
4,691
-953
FY03/11
Cons.
8,005
-4,356
3,649
-3,915
1,734
1,490
3,369
4,395
FY03/12
Cons.
10,015
-4,798
5,217
-2,565
1,962
2,420
-2,930
8,463
FY03/13
Cons.
13,570
-6,263
7,307
-2,277
2,207
3,312
-680
4,295
Fields’ operating cash flows (OCF) have been lumpy mainly due to working capital changes.
Negative simple free cash flow was largely the result of cash used in working capital, driven by higher
machine sales.
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Other Information
History
The company was established in Nagoya in 1988 by its founder and current Chairman/CEO, Hidetoshi
Yamamoto. Yamamoto was exposed to the pachinko industry initially through his father whose Nagoya
company was involved in management of pachinko halls. The younger Yamamoto proved a skilled advisor,
adept at helping improve pachinko halls’ operating performance.
During Fields’ first decade the business grew rapidly as the company augmented its sales pitch with
pachinko hall space design and machine installation advice. After establishing itself in Kyushu and Tokyo
in 1992, Fields Corporation rolled-out operations on a national scale by establishing branch offices in
Tohoku, Chugoku, Shikoku and Kansai in 1995.
The company realized halls wanted access to the best machines to attract fans, but industry practice at
the time wedded a pachinko hall to one specific manufacturer. What was needed was a flexible system
whereby halls could freely pick and choose popular titles. Positioning itself as an unaligned distributor, the
company uncovered a profitable niche that it has since fortified.
Important developments since 2000 include partnerships with several major pachinko/pachislot
manufacturers. One important example of this was when the company started selling machines of Rodeo,
a subsidiary of Sammy Corp. Fields took a 35% equity stake in Rodeo in 2002 and used its Rodeo
relationship to demonstrate its ability to source publishing rights from third parties. In this case, it
licensed rights from Toei Corp. (TSE1: 9605) for “Gamera” (a giant sea-turtle and rival to the Godzilla
franchise), and the Gamera model sold a respectable 60,000 machines at the time of its release. The
event also raised the company’s ability to price its services; specifically, revenue per machine effectively
doubled when this approach was employed.
Starting in the early 2000s, Fields set up several ventures outside of pachinko/pachislot planning,
development and sales in order to create new content and realize multiple use of content. These included
a sports gym operation, a sports management office for professional athletes, a game software company,
a magazine publishing firm, and a mobile content company. In 2003, the company listed on the JASDAQ
exchange, receiving the ticker code 2767. It then formed a business tie-up with Bisty of SANKYO Group.
SANKYO Co. took a 15% stake in Fields in 2008. The company has also teamed up (in 2006) with Olympia
Co. (unlisted) and formed an alliance in 2008 with KYORAKU SANGYO (unlisted).
In 2007, Takashi Oya, a prominent games and IT securities analyst, joined the company as its new
president and COO. With his arrival, the company focused on improving execution, and systemizing many
of its planning and sales functions. At the same time, his appointment allowed Chairman Yamamoto the
time and freedom to execute his vision. From 2008, Fields can be viewed as transitioning from a machine
distributor to an IP business.
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News and Topics
July 2013
On July 31, 2013, the company announced the release of a new pachislot machine from Bisty Co, Ltd.
“Ultraman Wars”. It was expected to be available at pachinko halls from October 2013.
On July 29, 2013, the company announced the release of a new pachislot machine from Enterrise Co,
Ltd. “Devil May Cry 4”. It was expected to be available at pachinko halls from September 2013.
On July 17, 2013, the company announced the release of a new pachislot machine “Kaiji Act 3”. It was
expected to be available at pachinko halls from September 2013.
On July 9, 2013, the company announced the release of a new pachinko machine from OK Co., Ltd.,
“New-century Pachinko BERSERK” It was expected to be available at pachinko halls from August 2013.
On June 5, 2013, the company announced the release of a new pachinko machine from Bisty Co., Ltd.
“CR Evangelion 8". It was expected to be available at pachinko halls from July 2013.
March 2013
On March 12, 2013, the company announced the release of a new pachinko machine from Bisty Co., Ltd.
“CR SOUTEN KOURO.” It was expected to be available at pachinko halls from May 2013.
February 2013
On February 12, 2013, the company announced the release of a new pachislot machine from Rodeo Co.,
Ltd. “Onimusha: Dawn of Dreams—The Second Coming.” It was expected to be available at pachinko halls
from March 2013.
On February 1, 2013, the company lowered its full-year FY03/13 forecasts.
Full-Year FY03/13 Forecast Revisions
 Sales: 107.0 billion yen (previous forecast: 115.0 billion yen)
 Operating profit: 9.0 billion yen (14.0 billion yen)
 Recurring profit: 9.0 billion yen (14.5 billion yen)
 Net income: 4.5 billion yen (7.3 billion yen)
According to the company, in the pachislot market, orders for major titles were concentered in the 2H due
to the implementation of self-regulation. In the pachinko market, demand grew particularly for machines
with high product competitiveness. In response, the company decided to conduct additional development
activities for the three major titles that it initially planned to launch during the year and accordingly
delayed the release of these titles through consultation with manufacturers.
Despite these situations, the company was expecting to meet its full-year forecasts because of the
superior product competitiveness of the two titles (listed below) that were scheduled to go on sale in 2H.
However, the company revised its full-year forecasts due to conditions below:
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1.
2.
“Resident Evil 5” (manufactured by Enterrise Co., Ltd.) released in December 2012 received more
inquiries than any of the company’s past titles. The company and Enterrise could not fully meet the
strong demand despite their efforts to address issues in delivery date, parts procurement, and
production capacity.
Although “EVANGELION” (manufactured by Bisty Co., Ltd.) that the company is trying to sell has
been highly acclaimed for its models, other major titles released at the end of 2012 showed poor
performance and lost the momentum for their large-scale introduction. Orders accordingly remained
lower than expected.
The company maintained its year-end dividend forecast at 25 yen per share.
January 2013
On January 9, 2013, the company announced the release of a new pachislot machine from Bisty Co.,
Ltd. “EVANGELION.” It was expected to be available at pachinko halls from February 2013.
December 2012
On December 13, 2012, the company announced the release of a new pachislot machine from Rodeo
Co., Ltd. “SAKIGAKE OTOKOJUKU—TENCHO-GORIN THE FINAL.” It was expected to be available at
pachinko halls from February 2013.
September 2012
On September 26, 2012, the company announced the release of a new pachislot machine from
Enterrise Co. “Resident Evil 5.” It was expected to be available at pachinko halls from December 2012.
August 2012
On August 29, 2012, the company announced the release of a new-generation pachinko machine under
the new “OK” brand “GHOST IN THE SHELL STAND ALONE COMPLEX” as the first collaborative title with
Kyoraku Sangyo. It was expected to be available at pachinko halls from October 2012. The “OK” brand
was launched jointly with Kyoraku Sangyo to create a new pachinko market and expand the pachinko fan
base.
On August 23, 2012, the company announced its plans for a stock split and the adoption of a stock
trading unit.
According to the release, the company’s board of directors made decisions on the stock split and stock
trading unit in a meeting held on the same date.
 Stock Split
With September 30, 2012 (actually September 28 due to the shareholder registry administrator’s holiday)
set as the record date and October 1, 2012 as the effective date, the company will execute a 1-to-100
stock split. With this, the number of the company’s outstanding shares will increase from 347,000 to
34,700,000.
 Adoption of Stock Trading Unit
On October 1, 2012 (effective date for the above stock split), the company will adopt the trading unit of
100 shares.
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 Dividend Forecast Revision
FY03/13 year-end dividend forecast was revised from 2,500 yen to 25 yen per share in line with the stock
split (essentially no change).
July 2012
On July 3, 2012, the company announced the release of a new pachislot machine from Bisty Co., Ltd.
“yaoh.” It was expected to be available at pachinko halls from August 2012.
May 2012
On May 28, 2012, the company announced the release of a new pachinko machine from Bisty Co., Ltd.
“CR Sengoku BASARA 3 - Battle of Sekigahara”. It was expected to be available at pachinko halls from July
2012.
April 2012
On April 24, 2012, the company announced the release of a new pachislot machine from Bisty Co., Ltd.
“GTO Limit Break”. It was expected to be available at pachinko halls from June 2012.
On April 10, 2012, the company announced the release of a new pachinko machine from Bisty Co., Ltd.
“EVA Light III”. It was expected to be available at pachinko halls from May 2012.
March 2012
On March 16, 2012, the company announced a downward revision to its FY03/12 forecast.
The downward revision was as follows:
 Sales: 92.0 billion yen (vs. previous forecast of 100.0 billion yen)
 Operating profit: 8.4 billion yen (vs. previous forecast of 14.0 billion yen)
 Recurring profit: 8.5 billion yen (vs. previous forecast of 14.0 billion yen)
 Net income: 6.0 billion yen (vs. previous forecast of 8.0 billion yen)
The company cited the following reasons behind its lowered forecast:
 Some of the sales related to the planned Q4 release of a Bisty Co. title would now be posted in FY03/13
instead.
 Most of the sales related to the pachislot title “Monster Hunter” were expected to be booked also in
FY03/13 as component procurement had been disrupted by the November 2011 flooding in Thailand.
The company further noted that Bisty had extended the development period for its title in a bid to
strengthen product development and respond to regulatory changes. Meanwhile, the Monster Hunter title
had received good market feedback. The company maintained its forecast full-year dividend payout of
5,000 yen per share.
February 2012
On February 13, 2012, the company announced the release of a new pachislot machine from Rodeo Co.
Ltd. “Monster Hunter”. It was expected to be available at pachinko halls from March 2012.
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January 2012
On January 18, 2012, the company announced the release of a new pachislot machine from Bisty Co.
“Evangelion – the Heartbeat of Life”. It was expected to be available at pachinko halls from February
2012.
December 2011
On December 26, 2011, the company announced that its Board of Directors had concluded a basic
agreement with Universal Entertainment Corp. (Jasdaq 6425) for a joint venture across a variety of
entertainment fields.
Overview of the Basic Agreement
 The company and Universal Entertainment Corp. agreed to start joint venture operations through
Mizuho Corp., a wholly owned subsidiary of Universal Entertainment.
 The company plans to acquire 198 shares in Mizuho (an ownership ratio of 49.75%) at projected total
cost of 1.0 billion yen during a third party offering that is targeted for early January 2012.
 In addition, the company and Universal Entertainment also agreed to look for further tie-up
opportunities across the entertainment industry.
November 2011
On November 15, 2011, the company announced the release of a new pachinko machine from Bisty Co.,
Ltd. “CR Evangelion 7". It was expected to be available at pachinko halls from January 2012.
October 2011
On October 4, 2011, the company Corporation and Enterrise Co. an affiliate of the major videogame
manufacturer Capcom Co., announced the release of a “Street Fighter IV” pachislot machine. It was
expected to be available at pachinko halls from November 2011.
September 2011
On September 6, 2011, the company announced the release of a new pachislot machine from Rodeo
called “Rahxephon”. It was expected to be available at pachinko halls from October 2011.
August 2011
On August 23, 2011, the company announced that its Board of Directors had come to a decision to
restructure its Japan Sports Marketing Inc. subsidiary (JSM).
The basic outline of the restructuring is as follows:
 JSM’s fitness club business will be carved out of the original business, absorbed into Fields and run by
the company.
 After this divestiture, JSM will be dissolved and put into special liquidation proceedings.
The company made the following comments about the restructuring:
 Regarding JSM’s fitness club business the company decided that carving out the business and
absorbing it would result in high levels of synergies given expected growth opportunities and the
resources that the business could leverage
 As for JSM’s other businesses (sports player and rights management), gauging revenue opportunities
was judged to be difficult and it was decided to dissolve the business
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The impact from the restructuring on the company's results was yet to be determined, but if a significant
impact on performance was determined this would be promptly disclosed, the company noted.
June 2011
On June 22, 2011, the company announced the release of a new pachislot machine from Rodeo called
“Kaze no Youjinbou—Memories of a Butterfly.” It was expected to be available at pachinko halls from
August 2011.
May 2011
On May 13, 2011, the company announced the nationwide release of a new pachinko machine from
Bisty Co., “CR The Story of Ayumi Hamasaki—the prologue.” It was expected to be available at pachinko
halls from July 2011.
April 2011
On April 19, 2011, the company announced the nationwide release of a new pachislot machine from
Bisty “SAMURAI 7.” It was expected to be available at pachinko halls from May 2011.
February 2011
On February 2, 2011, the company announced the nationwide release of a new pachislot machine from
Bisty, “MOBASLO Evangelion—for your own wish.” It was expected to be available at pachinko halls from
March 2011.
January 2011
On January 14, 2011, the company announced the nationwide release of a new pachislot machine from
Enterrise Co. “Sengoku BASARA 2.” It was expected to be available at pachinko halls from February 2011.
Enterrise is a subsidiary of Capcom Co., a major game software developer.
On January 14, 2011, the company also announced that it entered into an agreement with AQ
Interactive Inc. (TSE 3838) to acquire shares of Microcabin Corp., an AQ Interactive subsidiary. The
company provided the following details:
 The company would acquire an 85.0% stake in Microcabin on January 14, 2011, making it a subsidiary
 The acquisition would be made with funds on hand, at a total cost of 756 million yen
 The acquisition was intended to strengthen the relationship with AQ Interactive and create synergies
between Fields and Microcabin
 AQ Interactive Inc. would maintain a 15.0% share of Microcabin
On January 6, 2011, the company announced the nationwide release of a new pachinko machine from
Bisty, “CR Kung Fu Panda”. It was expected to be available at pachinko halls from February 2011.
December 2010
On December 7, 2010, the company announced the nationwide release of “Gravion”, a pachislot
machine by Rodeo Co., Ltd. (Rodeo). The animated work “Gravion,” was created and directed by Masami
Obari, and was broadcasted by Fuji Television Network in 2002 and 2004. “Gravion” was an innovative
new robot animation that combined classic designs and stories. The machine is expected to be available
at pachinko halls from January 2011.
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November 2010
On November 4, 2010, the company announced an upward revision to its FY03/11 forecasts and
revised up the expected interim dividend payment.
October 2010
On October 20, 2010, the company announced the nationwide release of “Ore no Sora – Spirit of Young
Justice”, a pachislot machine by Rodeo. The machine is the third commemorative title celebrating Rodeo’s
10th anniversary. It is expected to be available at pachinko halls from December 2010.
On October 5, 2010, the company announced the nationwide release of a new pachinko machine from
Bisty Co., Ltd., “CR Evangelion – Evangelical of the beginnings Light ver.” The company indicated that this
light version of “CR Evangelion - Evangelical of the beginnings” the machine includes attractive game
functions and will be launched as a “high chance” model that has been preset to make it easier to hit the
jackpot.
August 2010
On August 4, 2010, the company revised 1H FY03/11 earnings estimates upward.
July 2010
The company announced the launch of the pachislot machine “Magical Shopping Arcade Abenobashi” on
July 5, 2010. It employs anime content which won a prize at the 2002 Japan Media Arts Festival,
planned and produced by GAINAX Co., Ltd. The machine is expected to be available at the halls from
August 2010.
June 2010
On June 24, 2010, the company announced that the board of directors made on that day the decision to
additionally acquire Digital Frontier Inc. shares (planned date for the share transfer is June 30, 2010).
Details are as follows:
 Number of shares to be acquired: 60 (12.6% of total shares outstanding)
 Change in the number of the shares held: from 353 shares (shareholding ratio: 74.3%) to 413 shares
(shareholding ratio: 86.9%).
The impact on the FY03/11 performance (both consolidated and parent basis) is minor.
April 2010
On April 30, 2010, the company announced the release of “CR Neon Genesis Evangelion—Evangelical of
the beginnings,” a new pachinko machine by Bisty Co., Ltd. The machine employs high-quality images
from the movie “Evangelion: 1.0 You are (not) alone” and “Evangelion: 2.0 You can (not) advance.” It also
uses a new special “double impact” frame for the machine body modeled on the Evangelion EVA-01 Test
Type. According to the news release, the machine is available in pachinko halls in June 2010.
On April 20, 2010, the company has announced the release of “Gamera,” a pachislot machine by Rodeo
Co., Ltd. “Gamera” is the second commemorative title to celebrate the 10th anniversary of the Rodeo
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brand. It retained the original “anyone can play it” concept from the 1st “Gamera” title released in 2000.
Fields Corporation commented that alongside features reproduced from the earlier title, such as
continuous scenes and reel control, new “Gamera” incorporates modern game system and is a completely
new machine. The release said that the machine is to hit the halls in June 2010.
On April 15, 2010, the company issued an additional press release regarding the acquisition of Digital
Frontier shares. The information below has been updated to reflect the new data. The numbers and facts
updated on April 15, 2010 are highlighted in bold.
On March 26, 2010, the company announced that it made a decision to acquire shares of Digital Frontier,
a subsidiary of TYO Inc. and reached a basic agreement in this regard with TYO. According to this
agreement, it is assumed that Fields Corporation would acquire 74.3% of Digital Frontier shares out of
84.21% that are owned by TYO. According to the release, Digital Frontier is one of the leading Japanese
domestic companies in the field of CG (Computer Graphics) production, its track record including CG in
movies “DEATH NOTE” and “SUMMER WARS.”
Further on April 15, 2010, Fields Corporation said that the board of directors made on that
day the final decision to acquire the abovementioned shares in a share transfer.
DF Company Outline
 Name: Digital Frontier Inc.
 Main businesses: Production of computer graphics
 Date of establishment: May 16, 2000
 Location of head office: 1-1-71 Naka Meguro Meguro Ward Tokyo Japan
 Representative: President/Representative Director Hidenori Ueki
 Paid-in capital: 31 million yen
 Financial year-end: July 31
 Shares outstanding: 475 shares
 Major shareholders and shareholdings: TYO Inc. 84.2%, Hidenori Ueki 4.8%
Details of the number of shares to be acquired, the number of shares to be held after the changes and the
anticipated schedule for the changes are listed below
 Number of shares to be acquired: 353 ordinary shares (acquisition price 650 million yen)
 Shares to be held after change: 353 ordinary shares (74.3% stake)
Dates
 March 25, 2010, resolution by board of directors, signing of the basic agreement.
 April 15, 2010, Board meeting of Fields Corporation regarding the issue and signing of the share
transfer.
 April 16, 2010, date of share transfer.
DF will become a consolidated subsidiary of Fields Corporation. There was no impact on Field’s FY03/10
financial results. Any such impact on FY03/11 financial results and beyond has not been yet determined
as of April 15, 2010.
On April 6, 2010, the company announced that it established a new publishing company, “HERO’S,” with
Shogakukan Creative Inc. Shogakukan Creative and Fields will have 51% and 49% stakes respectively.
The new company is planning to launch a monthly comic magazine for young readers at the end of 2010.
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On April 1, 2010, the company announced an update regarding a share buyback conducted in March
2010.
 The buyback period: March 1, 2010 until March 31, 2010.
 Shares repurchased: 46
 Amount: 5,058,000 yen
As of March 31, 2010 there were 332,115 shares outstanding (excluding 14,885 treasury shares).
The company also announced the completion of the repurchase program announced in November 2009.
The cost and number of shares repurchased during the total buyback period (from November 24, 2009
until March 31, 2010) is as follows:
 Total number of shares repurchased: 4,242
 Total cost: 454,641,100 yen
March 2010
On March 26, 2010, the company issued an additional press release regarding the signing of the
agreement to acquire the shares of Tsuburaya Pro. The information below has been updated to reflect the
new data. The numbers and facts updated on March 26, 2010 are highlighted in bold.
On March 17, 2010, the company announced a decision to acquire shares of Tsuburaya Productions Co.
Ltd., a consolidated subsidiary of TYO Inc. The company has reached a basic agreement as a precursor to
the transfer of the 51.0% of Tsuburaya Pro ordinary shares held by TYO, and both companies have
entered into the main negotiations regarding this transfer. Tsuburaya Pro produces and owns various
content, notably the “Ultraman Series,” and became a company under the umbrella of TYO in October
2007.
Further on March 26, 2010, Fields Corporation said that the board of directors made a day earlier the final
decision to acquire the abovementioned shares in a share transfer.
Reasons for the acquisition:
1. The multi-use development by the Fields Corporation group companies can be expected thanks to
cooperation with Bandai Co., Ltd, which has a 49.0% stake in Tsuburaya Pro. Examples of such
cooperation include new character merchandising initiatives and active use of entertainment
machine tie-ins with Fields Corporation partner companies.
2. The “Ultraman Series” is intellectual property recognized by markets around the world, so the
company expects to find opportunities to develop overseas businesses in areas such as films and
character merchandising.
Tsuburaya Pro Company Outline
 Trading name: Tsuburaya Productions Co., Ltd.
 Main businesses: Planning and production of films and television programs; planning, production and
marketing of licensed goods featuring character images.
 Date of establishment: April 12, 1963
 Location of head office: 1-10-1 Hachimanyama Setagaya Ward Tokyo Japan
 Representative: President/Representative Director Shinichi Ohka
 Paid-in capital: 310 million yen
 Financial year-end: July 31
 Shares outstanding: 100,000 shares
 Major shareholders and shareholdings: TYO Inc. 51.0%, Bandai Co., Ltd. 49.0%
 Results for the fiscal year to July 2009: Sales 3,577 million yen; Recurring profit 328 million yen; Net
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profit 238 million yen
Details of the number of shares to be acquired, the number of shares to be held after the changes and the
anticipated schedule for the changes are listed below.
 Number of shares to be acquired: 51,000 ordinary shares (acquisition price of 1.1 billion yen)
 Shares to be held after change: 51,000 ordinary shares (51.0% stake)
Dates
 March 17, 2010, resolution by board of directors, formulation of basic agreement.
 March 25, 2010, final decision by board of directors to acquire shares, determination of the date and
price of acquisition.
 April 2, 2010, signing of share transfer agreement, date of transfer of shares.
Tsuburaya Pro will become a consolidated subsidiary of Fields Corporation. There is no impact on Field’s
FY03/10 financial results. Any such impact on FY03/11 financial results and beyond has not been yet
determined as of March 26, 2010.
Additionally, the release of March 26, 2010 indicated that Fields Corporation acquired TYO treasury stock
from TYO in a 3rd party offering (payment to be effected on April 2, 2010). As a result of this transaction
Fields Corporation becomes a holder of 14.9% of TYO shares.
On March 5, 2010, the company announced an update regarding a share buyback conducted in
February 2010.
 Buyback period: February 1, 2010 until February 28, 2010.
 Shares repurchased: 3,496
 Amount of cash: 0.373 billion yen
As of February 28, 2010 there were 332,161 shares outstanding (excluding 14,839 shares held in
treasury).
Top Management
Hidetoshi Yamamoto (山本英俊)
Takashi Oya
(大屋高志)
Born in 1955, founded Fields in 1988. He is Chairman and has responsibility for executing Company’s long-term
vision.
Born in 1965, is President and Animation Produce Division Manager.
Kiyoharu Akiyama
(秋山清晴)
Born in 1952, is a Vice President, Pachinko/Pachislot Business Management Division Manager.
Tetsuya Shigematsu (繁松徹也)
Born in 1968, is a Senior Managing Director, Interactive Media Business Division Manager, Consumer Products
Business Division Manager.
Born in 1960, is a Managing Director, Contents Division Manager, General Manager of Planning and Promoting
Dept. II under Contents Division.
Born in 1967, is a Director, Planning and Administration Division Manager, General Manager of Accounting and
Finance Dept. under Planning and Administration Division.
Born in 1969, is a Director, Corporate Division Manager.
Masakazu Kurihara
(栗原正和)
Hiroyuki Yamanaka
(山中裕之)
Hideo Ito
(伊藤英雄)
Akira Fujii
(藤井晶)
Toru Suenaga
(末永徹)
Born in 1960, is a Director, Deputy Senior General Manager of Pachinko/Pachislot Business Management
Division, General Manager of Business Innovation Office and Customer Understanding Promotion Office under
Pachinko/Pachislot Business Management Division.
Born in 1964, is a Director, General Manager of Legal Office.
Shigesato Itoi
(糸井重里)
Born in 1948, Outside Director.
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Employees
Fields employed 671 employees at the parent company (1,416 total employees on a consolidated group
basis). Average age was 35.0, average salary was 6.77 million yen (both parent company)—data as of
March 31, 2013.
Major Shareholders
As of the end of March 2013, the shareholder breakdown was as follows: individuals/other 53.12%,
foreign institutions 14.26%, financial institutions 6.88%.
Top 10 Shareholders were:
Top Shareholders
Amount Held
Hidetoshi Yamamoto
SANKYO CO., LTD.
Takeshi Yamamoto
Mint Co.
Treasury Stock
25.00%
15.00%
10.41%
4.61%
4.37%
Northern Trust Company (AVFC) Sub Account American Client
2.71%
The Master Trust Bank of Japan, Ltd. (Trust Account)
Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)
Takashi Oya
Japan Trustee Services Bank, Ltd. (Trust Account)
2.28%
1.53%
1.30%
1.13%
Source: Company data processed by SR Inc.
Shareholder Returns
The company adheres to the policy of paying dividends in line with its earnings levels. Specifically, Fields
determines dividend amounts based on cash flow status with a yardstick of the 20%+ consolidated
payout ratio.
Investor Relations
The company hosts quarterly analyst meetings following earnings announcements.
In July 2012, the company improved the content of its English IR website, adding “Top Message”
(message from chairman and president) “Financials” (description of the company’s business results,
financial statements, segment data, etc.), “CSR” (message from COO, etc.), and other information.
(Click here to visit the English IR website.)
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By the Way
 Chosen by Daiwa Investor Relations Co., Ltd. as “2012 Company of Excellence” for its website.
 Chosen by Nikko Investor Relations, Co., Ltd. for the “Best Corporate Website” award in 2012.
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Company Profile
Company Name
Fields Corporation
Head Office
Shibuya Garden Tower
16-17 Nampeidai-cho Shibuya-ku
Tokyo, Japan 150-0036
Listed On
Phone
+81-3-5784-2111
Established
June 10, 1988
Website
http://www.fields.biz/ir/j/
IR Contact
Takuya Takano
IR Mail
[email protected]
Main Consolidated Segments (% of total sales)
N/A
JASDAQ Standard
Exchange Listing
March 19, 2003
Fiscal Year-End
March
IR Web
http://www.fields.biz/ir/e/
IR Phone
+81-3-5784-2111
Directors
Hidetoshi Yamamoto, Chairman and CEO
Takashi Oya, President and COO
Kiyoharu Akiyama, Vice President
Tetsuya Shigematsu, Senior Managing Director
Masakazu Kurihara, Managing Director
Hiroyuki Yamanaka, Director
Hideo Ito, Director
Akira Fujii, Director
Toru Suenaga, Director
Shigesato Itoi, Outside Director
Others
4 directors
(as of April 2013)
Employees (consol.)
1,416
Employees (parent)
671
Average age (parent)
35 years
Average salary (parent)
6.7 million yen
(as of March 2013)
Shares Outstanding (including treasury shares)
34,700,000 shares
(as of March 2013)
Shareholders Capital
7.9 billion yen
(as of March 2013)
Main Subsidiaries
BOOM Co., Ltd.
Microcabin Corp
Tsuburaya Productions Co., Ltd
Lucent Pictures Entertainment, Inc
FutureScope, Corp.
Main Banks
Sumitomo Mitsui Banking Corp.
The Banking of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Auditors
BDO Sanyu & Co
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About Shared Research Inc.
We offer corporate clients comprehensive report coverage, a service that allows them to better inform investors and
other stakeholders by presenting a continuously updated third-party view of business fundamentals, independent of
investment biases. Shared Research can be found on the web at http://www.sharedresearch.jp.
Current Client Coverage of Shared Research Inc.:
Accretive Co., Ltd.
FerroTec Corp.
Panasonic Information Systems Co.
AEON DELIGHT Co.
Fields Corp.
Onward Holdings Co., Inc.
Ai Holdings Corp.
FreeBit Co., Ltd.
Paris Miki Holdings Inc.
Anritsu Corporation
Gamecard-Joyco Holdings, Inc.
Pigeon Corp.
Apamanshop Holdings Co., Ltd.
GCA Savvian Corporation
Resorttrust, Inc.
Axell Corporation
Grandy House Corp.
Round One Corp.
BALS Corporation
Harmonic Drive Systems Inc.
Sanix Incorporated
Bell-Park Co., Ltd.
Infomart Corp.
Sanrio Co., Ltd.
Benefit One Inc.
Intelligent Wave Inc.
SATO Holdings Corp.
Canon Marketing Japan Inc.
ITO EN, Ltd.
Ship Healthcare Holdings Inc.
Chiome Bioscience Inc.
Japan Best Rescue Co., Ltd.
SMS Co., Ltd.
Chiyoda Co., Ltd.
JIN Co., Ltd.
Takashimaya Co., Ltd.
Comsys Holdings Corporation
Kenedix, Inc.
Takihyo Co., Ltd.
Creek & River Co., Ltd.
Lasertec Corp.
Tamagawa Holdings Co., Ltd
Daiseki Corp.
MAC-HOUSE Co.
3-D Matrix, Ltd.
DIC Corporation
Medinet Co., Ltd.
TOKAI Holdings Corp.
Digital Garage Inc.
MIRAIT Holdings Corp.
Verite Co., Ltd.
Don Quijote Co., Ltd.
mobcast inc.
WirelessGate, Inc.
Dream Incubator Inc.
NAIGAI TRANS LINE LTD.
Yellow Hat Ltd.
Elecom Co.
NanoCarrier Ltd.
Yumeshin Holdings
EMERGENCY ASSISTANCE JAPAN Co.
Nippon Parking Development Co., Ltd.
ZAPPALLAS, INC.
en-Japan Inc.
NS Tool Co.
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Fields Corporation (2767)

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