fields corporation interim financial presentation (year ... · cr marilyn monroe ・it recreates...

Copyright 2005Copyright 2005 FIELDS CORPORATION FIELDS CORPORATION All rights reserved.All rights reserved. 1

FIELDS CORPORATION

November 14 (Mon), 2005

THE GREATEST LEISURE FOR ALL PEOPLE 2767:JASDAQ

FIELDS CORPORATION

Interim financial presentation (Year Ended March 31, 2006)

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


JASDAQ 2767Market

Total outstanding shares : 347,000 shares※two-for-one stock split in September 2004Stock information

736 (non-consolidated) 907 (consolidated)Number of employees

Sapporo, Aomori, Sendai, Koriyama, Niigata, Takasaki, Tsukuba, Utsunomiya, Saitama, Chiba, Tokyo, Nishi-Tokyo, Yokohama,Shizuoka, Nagoya, Nagano, Aichi, Mie, Kanazawa, Kyoto, Osaka, Kobe, Hiroshima, Okayama, Yamaguchi, Matsuyama, Fukuoka, Saga, and Kagoshima (29 bases nationwide)

Branch offices

・Japan Sports Marketing Inc.**Professional Management Co., Ltd.*J. Sakazaki Marketing Ltd.*Total Workout Corporation

・Fields Jr. Corporation・White Trash Charms Japan Co., Ltd.・Digital Lord Corporation・D3 Publishers Inc. other 3 companies

Consolidated subsidiaries

¥7948.03 millionPaid in capital

Planning, development, and sales of pachinko/pachislot machinesMain business activities

・RODEO Co., Ltd. ・Kadokawa Haruki Corporation other 1 company

E Space Tower 12F, 3-6, Maruyama-cho, Shibuya-ku, Tokyo 150-0044 Japna

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

FIELDS CORPORATIONhttp://www.fields.biz/

Head office address

Establishment

Company name

Equity method campanies

2,520

3,650

4,052

5,000

5,810

16,000

27,500

35,000

40,000

112,200

Number of shares held

1.05%The Bank of New York JASDEQ Treaty Account

0.72%Morgan Stanley & Co. Inc

Fields Employee Shareholders Association

Yuki Yamamoto

Japan Securities Finance Co., Ltd

Mint Co.

Sammy Corporation

Yoko Yamamoto

Takashi Yamamoto

Hidetoshi Yamamoto

Name of shareholders

7.92%

4.61%

1.44%

1.16%

10.09%

1.67%

11.53%

32.33%

Percentage of outstanding

shares owned

Financial institutions 2.31%

Securities companies 1.13%

Other companies 15.05%

Foreign companies and others 3.94%

Individuals and others 77.57%

Number of shareholders by category

Corporate Data Principal shareholders

Corporate Profile

(As of September 30)(As of October 1)

3 companies integrated in October 1, 2005

Source : Fields


Year ended March 2006 Interim Highlights

Source : Fields


126.8%

108.3%

116.8%

97.2%

99.8%

101.2%

(%)

Actual to Plan

48.7%

55.1%

46.1%

135.9%

104.2%

115.4%

(%)

YOY

961

1,806

1,462

7,902

9,365

35,746

Interim, Actual

Year ended March 2006

758

1,667

1,252

8,132

9,384

35,326

Interim, Plan


1,972

3,280

3,17１

5,814

8,986

30,975

Interim, Actual


Gross profit

SG & A expenses

Operating income

Net income

Ordinary income

(consolidated)

Net sales

Year ended March 2006Interim operating results (consolidated)

Interim results for year ended March 2006 (consolidated) (Unit : ¥million)

※These data are revised plan released August 26, 2005

■From this interim, D3 Publishers Inc. has become consolidated subsidiary from equity method company.

Source : Fields


※No change in dividend

125.5%60.7%1,2099631,992Net income

110.7%

109.1%

96.7%

99.1%

101.6%

(%)

Actual to Plan

60.7%

51.3%

121.1%

94.5%

109.3%

(%)

YOY

2,000

1,982

1,706

6,538

8,245

33,077

Interim, Actual


1,790

1,563

6,759

8,322

32,556

Interim, Plan


3,265

3,328

5,398

8,727

30,265

Interim, Actual


Gross profit

SG & A expenses

Operating income

Dividend (plan)

Ordinary income

（個別）

Net sales


Source : Fields

Year ended March 2006Interim operating results (non-consolidated)

Interim results for year ended March 2006 (non-consolidated) (Unit : ¥million)


Start of sales in this period

7,803Others

Adding up in 4QCR Ashita ga arusa Yoshimoto World*Bisty

Adding up in 3QCR Marilyn MonroeBisty

－－CR K-1 Premium Dynamite!!Sammy

21,86121,861CR Iijima Naoko no Casino BistyBisty

Adding up in 3QCR Azumi*SammyStart of sales in

3QCR Super Jetter

74,344Units sold Total1st half

Sammy

Bisty

Bisty

Bisty

Manufacturer

*About sales machine name, only Sammy and Bisty of which Fields is the sole distributor, are mentioned.*Pachinko machines under 20,000 units sales are not mentioned.*Bisty’s CR Kahara Tomomi no Minashigo Hatch is added up in this period.* Sammy’s CR Azumi is added up in 3Q because of delivery in September.* Bisty’s CR Ashita ga arusa Yoshimoto World is added up in 4Q because of delivery in December.※Cumulative units sold are as of September 30

Adding up in 3Q

－－CR Daimajin

Continuous sales machines 41,033－CR Kahara Tomoni to Minashigo Hatch

124,580*25,634CR Neon Genesis Evangelion

Cumulative nits soldUnits soldMachine name

[Pachinko business]Result of sales in 1st half of year ended March 31, 2006

Pachinko machine name Results of machine sales in 1st half of FY March,2006

・It recreated the beauty of Marilyn Monroe who is popular around the world・It is the hugely popular Umi type pachinko game.

■ CR Super Jetter

・First completely redesigned pachinko machine with a new cross-shaped control button・It recreates faithfully the beauty and toughness of Azumi who fights to protect the peace at the beginning of the Edo Period

■ CR Marilyn Monroe

・It recreates excitement and power of K-1・Players can watch battles that are impossible to watch. There are match-up with Mike Tyson

■CR Azumi

・It recreates the atmosphere of the world of Baccarat

■CR K-1 Premium Dynamite!!

・Combination of movie “Daimajin” and baseball player “Kazuhiro Sasaki”・It recreates dynamically excitement of baseball and visual experience of powerful “Daimajin”

■ CR Iijima Naoko no Casino Bisty

■CR Daimajin

・It features Naoko Iijima who is known for healing image as main character

・It features Super Jetter which is famous in the 1960s TV program, a time travel science fiction, as character・It recreates by speedy latest 3D images

・First machine to comply with new regulation, completely redesigned・It recreates the world of “Neon Genesis Evangelion”, famous in TV, video, and animation, and etc.

■ CR Neon Genesis Evangelion

© GAINAX/ProjectEva TV Tokyo

Titles

(Units)

©SR Corporation / 1966 Kadokawa Pictures / Fields

© JVC Entertainment Networks,Inc./FIELDS

© Mike Tyson,licensed by CMI,LLC. © FEG/K-1/FIELDS © Sammy

© Yu Koyama / Shogakukan, Big Comic Supeior © Sammy

©TBS ©Sammy

TM Marilyn Monroe, LLC by CMGWorldwide.com; www.MarilynMonroe.com. ©2005 Twentieth Century Fox Film Corporation. All rights reserved.TM Marilyn Monroe, LLC by CMGWorldwide.com; www.MarilynMonroe.com. ©2005 Twentieth Century Fox Film Corporation (©1955 Charles K. FeldmanGroup Productions, renewed 1983). All rights reserved.

3Q

Source : Fields


Cumulative nits soldUnits soldMachine nameManufacturer

Start of sales in this period

As of November 14Dokonjo GaeruRodeoStart of sales

planned in 3Q

120,369*51,132Onimusha 3Rodeo

On sale continuously*19,136Neon Genesis EvangelionBisty

13,099Others

29,863－KaijiRodeoContinuous sales machines

Units sold Total

*About sales machine name, only Rodeo and Bisty of which Fields is the sole distributor, are mentioned.*Pachislot machines under 10,000 units sales are not mentioned.*Neo Genesis Evangelion continues to be sold.

※Cumulative units sold are as of September 30

85,0431st half

・First pachislot machine to comply with new regulation. Three types releases at the same time.・It recreates the world of Evangelion by directing separately in each character type.

■Dokonjo Gaeru(New regulation, Fifth edition machine)

・20 inch liquid crystal doughnut-vision・It features game software Onimusha 3 as character. Capcom’s full support realizes real beauty of image and utilizes to pachislot

■ Neon Genesis Evangelion (New regulation, Fifth edition machine)

・Rodeo’s first pachislot machine to comply with new regulation. 10 inch wide LCD.・It features Manga Dokonjo Gaeru as character.It realizes new image by combination of a variety of direction and replay time function.

■ Onimusha 3

・The industry’s first 13-inch full-color full-face LCD.・It features Kaiji, famous comic as character.It directs hot atmosphere of the world of gamblers on powerful LCD

■Kaiji

©Nobuyuki Fukumoto / Kodansha

© CAPCOM CO.,LTD. 2004 ALL RIGHTS RESERVED.

© GAINAX/ProjectEva･TV Tokyo

©Yasumi Yoshizawa / Office Yasui © Sammy ©RODEO

Source : Fields

[Pachislot business]Result of sales in 1st half of year ended March 31, 2006

Pachislot machine name Results of machine sales in 1st half of FY March,2006

Titles

(Units)


111,39623.50%

362,64876.50%

187,23939.50%

286,80560.50%

191,94440.49%

282,10059.51%

474,044

6,926,79112,480,57112,097,224

Full year


46,47029.16%

112,91770.84%

77,23548.46%

82,15251.54%

85,04353.36%

74,34446. 64%

159,387

961,0591,806,3141,462,760

1st Half 2nd Half






8,925,5763,171,64811,866,5785,755,0216,111,5576,781,1962,374,9284,406,2685,730,6881,700,893Operating income

Direct/Indirect ratio

1st Half

45,36926.90%

123,33873.10%

76,12345.13％

92,58454.87%

77,55045.97%

91,15754.03%

168,707

1,972,2363,280,677

1st Half

66,02721.62%

239,31078.38%

111,11636.39%

194,22163.61%

114,39437.46%

190,94362.54%

305,337

4,954,5559,199,894

2nd Half

172,32753.19%

64,96538.04%

107,36270.05%

176,40467.89%

79,79663.15%

96,60872.39%

71,23731.99%

1,6340.99%

Distribution sales (Unit)

226,59669.95%

128,29175.16%

98,30564.15%

162,84862.78%

82,98965.67%

79,85959.84%

129,02057.94%

77,26846.45%

Direct sales(Unit)

Agency/Distribution sales ratio

151,61046.81%

105,71861.96%

45,89229.95%

83,40932.11%

46,56936.85%

36,84027.61%

151,42368.01%

164,70599.01%

Agency sales(Unit)

Pachinko/Pachislot sales ratio

145,03144.77%

102,45660.03%

42,57527.78%

78,69930.29%

43,87634.72%

34,82326.09%

62,80928.20%

95,63157.5%

Pachinko machine sales (Unit)

178,90655.23%

68,22739.97%

110,67972.22%

181,11469.71%

82,48965.28%

98,62573.91%

159,85171.80%

70,70842.5%

Pachislot machine sales (Unit)

323,937170,683153,254259,813126,365133,448222,660166,339Sum of Pachinko and Pachislot

Unit sales of machines

6,620,2533,096,8733,523,3803,524,3721,246,3002,278,0723,041,486583,081Net income

97,34130.05%

42,39224.84%

54,94935.85%

96,96537.32%

43,37634.33%

53,58940.16%

93,64042.06%

89,07153.55%

Indirect sales(Unit)

Full yearFull year2nd Half1st HalfFull year2nd HalfFull yearFull year

6,413,795 5,795,714 12,209,5094,589,0861,681,106 5,664,866 7,022,0482,432,962Ordinary income

(in ¥thousand)

[Pachinko/Pachislot] Unit sales

Sales history

Source : Fields


Year ended March 2006 Estimation

Source : Fields


97.5%

101.3%

105.9%

135.0%

118.5%

110.5%

YOY (%)

48.7%

55.1%

46.1%

135.9%

104.2%

115.4%

YOY (%)







6,926

12,480

12,097

12,655

24,752

81,658

Actual

1,972

3,280

3,171

5,814

8,986

30,975

1st half actual

961

1,806

1,462

7,902

9,365

35,746

1st half actual

1st half actual

113.3%28,05218,68715,766Gross profit

5,793

11,127

10,916

17,136

91,753

Plan

Full year estimation

4,954

9,200

8,926

6,841

50,682

2nd half actual

135.4%9,234SG & A expenses

90.2%9,454Operating income

83.6％4,832Net income

89.1%9,321Ordinary income

2nd half plan

56,007

2nd half plan

112.4%Net sales

YOY (%)


No change in full year profit plan

Source : Fields

Year ended March 2006 Estimation (consolidated)

Estimation for year ended March 2006 (consolidated) (Unit : ¥million)








85.5%5,7446,72195.9%4,5354,72960.7%1,2091,992Net income

4,000

12,312

12,275

11,906

24,182

79,970

Actual

96.6%

99.8%

121.7%

109.0%

102.2%

YOY (%)

2,000

3,265

3,328

5,398

8,727

30,265

1st half actual

2,000

1,982

1,706

6,538

8,245

33,077

1st half actual

1st half actual

103.8%25,09116,84615,45594.5%Gross profit

4,000

10,717

10,635

14,456

83,889

Plan

Full year estimation

2,000

9,047

8,947

6,508

49,705

2nd half actual

121.4%7,918121.1%SG & A expenses

60.7%

51.3%

109.3%

YOY (%)

86.6%8,929Operating income

2,000Dividend

87.0%8,735Ordinary income

2nd half plan

50,812

2nd half plan

104.9%Net sales

YOY (%)

※No change in dividend※These data are revised plan released August 26, 2005

No change in full year profit plan

Source : Fields

Year ended March 2006 Estimation (non-consolidated)

Estimation for year ended March 2006 (non-consolidated) (Unit : ¥million)


Year ended March 2006 1st half topics

Source : Fields


New spread of sports entertainment business

Source : Fields


Overview of J.Sakazaki Marketing Ltd. Main achievement of J. Sakazaki Marketing Ltd.

Topics : Acquisition of the shares of J. Sakazaki Marketing Ltd.and merger between subsidiaries

Agreement for advertising business (As of July 15, 2005)Relationship with Fields Corporation9

¥20 million (Total number of outstanding shares 24,000)Capital7

December 31Fiscal year end6

・Planning and operating sports events, selling television rights, etc.・Acquiring copyrights, trademarks, and licenses; granting licenses

Main business5

July 10, 1980Established4

¥3,266 million (Year ended December, 2004)Sales8

http://www.jsmgroup.co.jp/URL

Address

Representative

Trade name

2-2-19 Akasaka, Minato-ku, Tokyo3

Kazunori Sakazaki, President & CEO2

J. Sakazaki Marketing Ltd.1

(As of December 31, 2004)

■J. Sakazaki Marketing Ltd. holds business resources, such as worldwide network for sports entertainment as whole, and judges of sports content

[Licencing]Stewart Moskowitz, etc.

[Consulting]Osaka Kintetsu Buffaloes / Japan Cheer Dance Association / Otsuka Group / am/pm, etc.

[Event marketing]Real Madrid Asian Tour 2003 / MLB All Star Series / NEC Davis Cup/ KDDI World Cup Rugby / The first Athletics World Championship / World Cup Ski / Canon European Masters Golf / Champions League 2004 / Barcelona FC Asian Tour / Chinese Baseball League (CBL) / CBL All Star Games / MLB Opening Games / All Japan Cheer Dance championship / Greater Tokyo Festival, etc.

Michael Jordan Celebrity Golf / ANZ Ladies Golf, etc・Golf

Davis Cup / Fed Cup, etc.・Tennis

KDD Rugby World Cup / 5-Nations Rugby / Test matches of England, Australia, New Zealand, France, etc. / New Zealand Rugby League, etc.・Rugby

FINA Swimming World Championship / FINA World Cup Swimming / FINA World Cup Synchronized Swimming, etc.・Swimming

Major League Baseball / Japan Series (for overseas sales), etc.・Baseball

FIFA World Cup South American Qualifying Round / UEFA Champions League / English League Football / Italian League Football / UEFA Cup Winners Cup / UEFA Cup ・Super Cup / AFC Package / Champions World Series / German Representative Friendly Match, etc.

・Soccer

[Television rights]

Source : Fields


Topics : Establishment of Japan Sports Marketing

Expanding and strengthening sports entertainment business

27,280Total number of outstanding shares 8

¥200 millionCapital7March 31Fiscal year end6

・Advertising agency services, etc., acquisition of copyrights(merchandizing rights) and content・Management of professional sportspeople, entertainers・Planning and operating sport events, selling television rights, etc.・ Acquiring copyrights, trademarks, and licenses; granting licenses・ Management of gymnasiums

Main business5

October 1, 2005Established4

http://www.jsm.jpURL

AddressRepresentativeTrade name

1-10-8 Dogenzaka, Shibuya-ku, Tokyo3Kazunori Sakazaki2Japan Sports Marketing Inc.1

(As of September 30, 2005)

■ 3 companies integrated in October 1, 2005 Fields’ subsidiary■Merger style: Professional Management Co., Ltd as continuous company

Japan Sports Marketing Inc.

J.Sakazaki Marketing Ltd.Professional Management Co., Ltd

Total Workout Corporation

Overview of Japan Sports Marketing

■Acquisition of the shares of J. Sakazaki Marketing Ltd.

①Final agreement concerning the acquisition of the shares (released July 15)

→July 15, 2005 Acquired 65% of common stock (15,600 shares), Became subsidiary

②Final contract concerning merger between Fields’ subsidiaries (released August 5)

→October 1, 2005 Merged J. Sakazaki Marketing Ltd. and Fields’ subsidiaries, Professional Management Co., Ltd. (PM) and Total Workout Corporation (TWO).

→Established “Japan Sports Marketing Inc.”

■Becoming strong driving force for content integrator business and content providing business

・JSM heads for combining existing businesses in group companies, expanding business chances aligning with sports, and expanding growth opportunities.

・JSM merged with PM and TWO, Fields’ subsidiaries, and plans maximizing group synergy for establishing overwhelming position in global sports and entertainment area.

JSM PM TWO Jr. WTJ D3P DLExpanding and strengthening sports entertainment business

-Fields group-

Source : Fields


・Management of athletes

Sports and entertainment worldSports and entertainment world

・Sports marketing－Event marketing－Broadcasting right－License

・Administration of athletic gym・Plan and sales of sports drink, etc

Topics : Image of concrete partnership of JSM - I

Birth of Japan Sports Marketing

Source : JSM documents


Partner company Partner company



Topics : Image of concrete partnership of JSM - II

Image of partnership

Expansion of sports and entertainment world by partnership

Japanese and worldwide market



Topics : Image of concrete partnership of JSM - III

Image of partnership

Fields will make a stage of deep impressions of sports with partners in various areas

商社

芸能ﾌﾟﾛﾀﾞｸｼｮﾝ

HR sending

Professional school

Consulting firmsMarketing, PR companies

Athletic gyms

Trading companies

Athlete management

offices Movie production

distribution companies

Am

usement

facilities

Artist agency

TV, radio stations

Publishers, N

ewspaper offices

CVS, Distribution companies

Sports associationsRestaurants

Portal site

companies

Law, Insurances,

finance

Sports goods, Apparel, Toys,

Games, Food companies

Content provider

Travel agency


Partner company

Partner company

Partner company

Partner company

Partner company

Partner company

Event business

Righ

t bus

ines

s

Content business

Managem

ent business

Infrastructu

re business


Diversification of content produce business

Source : Fields


Topics : Diversification in content produce business - I

Profit model by second use of content

■D3P started sales of “CR Neon Genesis Evangelion”, popular as Bisty’s pachinko machine,as game soft exclusive for PS2■1st case of “Pachinko/Pachislot simulation software”“CR Neon Genesis Evangelion “ was 2nd case of alliance with Fields ■Start sales in October, 2005

©Bisty ©GAINAX/Project EVA.・TV Tokyo ©D3 PUBLISHER

■1st event with Fields D3P made game of event”K-1 Premium Dynamite!!”

■Fields provided copyright of K-1 Premium Dynamite, and made game

■Start sales in December, 2004

Content

Fields : Start sales of “CR K-1 Premium Dynamite!!”, pachinko machine©FEG/K-1 ©D3 PUBLISHER

1st case

2nd case

Source : Fields

Fields : Start sales of “CR Neon Genesis Evangelion”, pachinko machine


■D3PUBLISHER INC. and Buena Vista Games Inc. (CA, America) agreed sales contract in Japan concerning various game software from Walt Disney’s videos

Game sales contract concerning Disney’s various works

Main sales titles until spring, 2006

At least 3 machines, including Game Boy Advance and PlayStation 2Chicken Little (TBD)Game Boy AdvanceTim Burton’s Nightmare before Christmas / Pumpkin King(TBD)

At least 3 machines, including Game Boy Advance and PlayStation 2The Chronicles of Narnia : The Lion, the Witch, and the Wardrobe (TBD)

Game Boy AdvanceLilo and StitchGame Boy AdvanceKim Possible

D3PUBLISHERS OF America : Licensing contract concerning “Hi Hi Puffy AmiYumi™”■D3PUBLISHER of America (CA, America) agreed licensing contract with Warner Bros. Interactive Entertainment (CA,America) in game software for “Hi Hi Puffy AmiYumi™”, mega hit animation program in Cartoon Network, major animation channel in America.

■D3PA will start pre-sale game software for Game Boy Advance® in North America in November,12005. After it, it will start sale in Europe and Japan continuously.

■D3P and D3PA have the right of producing game software for “Hi Hi Puffy AmiYumi™” worldwide for console machines, portable machines, and PCs.

TM & (C) Cartoon Network. (s05)

©DisneyPublished and distributed In Japan by D3 Publisher Inc.

D3PUBLISHERS OF America : Business alliance with Tomy’s subsidiary in AmericaStart of publishing “NARUTO” in North America

■D3PA started sales of game software of “NARUTO” on Nintendo’s platform in North America and South America VIZ Media, LLC (CA, America; President & CEO : Hidemi Fukuhara) held the license of , collaborating with TOMY Corporation, the subsidiary of TOMY.

■D3PA estimates about same amount of sales as Japan in the first year by collaborated marketing with TOMY.■In the first case, D3P plans to release title for Game Cube and Game Boy Advance in spring, 2006.

D3Publisher ⇒ Major provider in global game market!!

Source : Fields

Topics : Diversification in content produce business - II


Trend in pachinko/pachislot machines market

Source : Fields


Response to market for outdated models and models certification has expired

Schedule of removal of outdated models and models certification has expired

July, 2004 December, 2005 June, 2006 July, 2007

Type A machines(adapted to old regulation)

No schedule decided for removal(so-called “outdated machines”

Type B machines (adapted to old regulation)Must be removed immediately

(They should be removed by the end of 2005.,There are differences among Prefectures)

Type C machines (adapted to old regulation)Must be removed by expiration date

Type D machines (adapted to old regulation)Must be removed by the end of June, 2007

■Type A machines : So-called outdated machines Models where certification expired prior to July, 2004■Type B machines : Expired certification machines Models approved and certified by SECTA prior to July 2004for which certification has already expired■Type C machines : Valid certification machines (1) Models approved and certified by SECTA prior to July 2004for which certification will expire by June, 2007■Type D machines : Valid certification machines (2) Models submitted to SECTA and receiving approval prior to July 2004 but certified afterward■Type E machines : Valid certification machines (3) Models submitted to SECTA prior to July 2004 but and receiving approval and certification afterward■ Machines complying with new regulations Models conforming to the standard revised in July, 2004

All machines must be removed by June 2006

October, 2005Guidance requesting removal

（As of October, 2005）

(Certification

expiration date)

“Hokuto-no-Ken”, “Yoshimune”and others

“Onimusha3” and others

Type E machines (adapted to old regulation)Must be removed by about the end of September, 2007

A small number remain“Ore-no-Sora” and others

Machines adapted to new regulation(3-year utilization period after certification) “Evangelion” and others

Only new models will be on the

market

Source : Fields

April to December, 2006About 940,000 pachislot

machines will be removed


Estimated ratio of installation for pachislot machines complying old and new regulations

Ratio of installation for pachislot (Fields estimates)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Old regulation machines (incl. Outdated machines)New regulations machines

2005 2006 2007

First approval and start of sales of pachislot machines

complying with new regulation

Administrative guidance to remove outdated machines

and machines expired-certification machines

Sales of machines complying with old regulations

■2004 1.88 million pachislot machines in use■2004 1.67 million pachislot machine sold

(Manufacturers’ trend)Focused on the number of old-regulation pachislot

machines held

“Yoshimune” deadline for removal about 220,000 units

（As of October, 2005）

Chart is estimation by the Fields Marketing Deportment based on p-world data.

Deadline for removal of so-called outdated machines

About 940,000 pachislot machines complying with old regulation to be removed

“Hokuto-no-Ken” deadline for removal about 460,000 units

Deadline for removal of about 70,000 outdated machines and expired-certification machines

Completion of transition to new regulationTransition period to new regulation models

Others deadline for removal about 190,000 units

Source : Fields


Topics : Approval for pachislot machines to new regulation

Approval of pachislot machines to new regulation First approval of Bisty’s “Neon Genesis Evangelion”■Bisty (SANKYO’s complete subsidiary : First approval in July, 2005

■It has more patterns of direction than that of Fields’ pachinko “CR Neon Genesis Evangelion” which is popular in market.

■3 types started sales simultaneously with original directions to each character.

■July, 2004 : Revision of regulation of amusement machines

【New regulation pachinko machines】■November, 2004 “CR Dai Yamato 2” (SANKYO)

“CR Osomatsu Kun” (Daiichi Shokai)“CR Neon Genesis Evangelion” (Bisty) and many machines released

【New regulation pachislot machines】■No approval from SECTA for a long time after revision of regulation↓

■July, 2005 : Bisty, SANKYO Group companyFirst approval of Bisty’s “Neon Genesis Evangelion”

→More entertaining, but with less gamble machine appeared

・Old regulation machines can be sold and set by June, 2007. The issue is to provide them balancing properly with needs of replacement in halls.

・Soft landing of new regulation machines which are more entertaining with applying old regulation machines is needed.

・Fields has responsibility to apply trading position as effective as possible, to adjust interests between manufacturers, and to control the number of start of sales properly

Notes : Removal by July, 2006 : Yoshimune (220,000 units in use by estimation)Removal by October, 2006 : Hokuto-no-Ken (460,000 units in use by estimation)

Approval of Rodeo’s “Dokonjo Gaeru”

■Rodeo (Sammy Group) : Approval ：Approval in October, 2005

■Animation “Dokonjo Gaeru” was adapted to character. New direction was realized by combination of a variety of direction and real time play function.

© GAINAX/ProjectEva TV Tokyo

©Yasumi Yoshizawa / Office Yasui © Sammy ©RODEO

Source : Fields


Sales policy of old standard Pachislot machines

Source : Fields


About 30,000 unitsKita Denshi CorporationJuggler TMMay, 2007

About 60,000 unitsHeiwa CorporationShuyaku wa ZenigataApril, 2007

About 50,000 unitsKita Denshi CorporationGo Go JugglerVFebruary, 2007

About 70,000 unitsOlympia Co., LtdNangoku Sodachi

About 460,000 unitsSammy CorporationHokuto-no-Ken

October, 2006

About 220,000 unitsDaito Giken Inc.YoshimuneJuly, 2006

About 40,000 unitsKita Denshi CorporationJuggler GirlFebruary, 2006

Estimated number of units in useManufacturer nameMachine nameExpired date

※Expiration date in Tokyo

The largest number of expired machines during June to October, 2006

Expiration date of major machines

(As of October 31, 2005)

Source : Fields

■2004 1.88 million pachislot machines in use■2004 1.67 million pachislot machine sold


LCDOsomatsu KunDaiichi Shokai Co., LtdNovember, 2005

LCDOsu! BanchoDaito Giken Inc.July, 2005

10 inch wide LCDAladdin EvolutionSammy CorporationDecember, 2005

VFD displayHello SantaTaiyo Co., Ltd

October, 20057 inch LCDKyojin no Hoshi 3Aristocrat Technologies

20 inch donut LCDUltra man ClubSammy Corporation

Completely informed typeHibiscusDaiichi Shokai Co., Ltd

5.6 inch LCDHideki ni MuchuOlympia Co., Ltd

September, 2005

EL visionNeo Planet 999Yamasa Co., Ltd

5 inch LCD (Developed in-house) Limited salesMah-jong Monogatari 2Heiwa Corporation

15 inch LCDMu-mu WorldSankyo Corporation

August, 2005

NotesMachine nameManufacturer nameDate of starting sales

Major holding machines whose date of starting sales have decided

Machines whose date of starting sales are during June to December, 2005

Source : Fields


About 17,000 unitsDaiichi Shokai Co., Ltd

About 25,000 unitsBisty

About 40,000 unitsRodeo Co., Ltd

About 10,000 unitsDaito Giken Inc

Purchasing parts ftom Yamasa GroupNet Corporation

About 40,000 unitsYamasa Co., Ltd

SumAbout 200,000 units provided

↓

550,000 units shortmaximun

About 60,000 unitsSammy Corporation

〔June to October, 2006〕■Yoshimune about 220,000 units■Hokuto-no-Ken about 460,000 units■Others about 70,000 units

→About 750,000 units removal

Maximum providing capacityEstimated monthly production capacityManufacturer nameDemanded number

Estimated monthly production capacity in major manufacturers

Simulation of provision during replacement of Yoshimune and Hokuto-no-Ken

Source : Fields


Setting deadlines for major machines and holding machines

Setting deadlines for old regulation pachislot machines and holding machines

OlympiaPanic MouseBistyTomb Raider

S companyMachine J

RodeoOre no Sora

N companyMachine FN companyMachine GK companyMachine HH companyMachine I

Y company

N company

N company

D company

S company

Kita Denshi

平和

Kita Denshi

Olympia

Sammy

Daito

Kita Denshi

Manufacturer

Machine AMachine BMachine C

30605070

46022040

Thousand

setting 2007200620051098721121110987 1211654354321121110 6

Go Go Juggler VNangoku SodachiHokuto-no-KenYoshimuneJuggler Girl

Juggler TMShuyaku wa Zenigata

Machine D

Holding machine

Machine E

Machine name

About 680,000 machines in all will be removed

※LCD machines

About 940,000 old regulation pachislotmachines will be removed

Source : Fields

※Expiration date in Tokyo

(As of October 31, 2005)


Appendix

Source : Fields


Content Provider Fields

Business Model

Related companiesRelated companiesRelated companies

Dom

estic Players

Overseas Players

Fans/

PlayersC

ontent providing

SportsSportsSports

TV & MoviesTV & MoviesTV & Movies

Cartoon &AnimationCartoon &Cartoon &AnimationAnimation

Entertainers &Artists

Entertainers &Entertainers &ArtistsArtists

GamesGamesGames

CopyrightCopyright

Copyright acquisition


Distribution

Source : Fields

Gamecreator

TVplanner

CMcreator

Advertisementplanner

CopywriterBroadcastProgramcreator

Content development


Copyright developm

ent

Research

Cellular phone content

TV & CM

Movies & Music

CD & DVD

Various goods

PachinkoPachislot

Arcade gamesHome-use games

Production


■In line with our corporate philosophy, “The greatest Leisure for All People”, Fields has set its insights on the pachinko/pachislot market. The most popular public leisure activity in Japan, and has aimed to revitalise the market through a variety of new challenges. We have established a nationwide sales network and solidified a unique position that connects the many pachinko/pachislot fans with pachinko halls and pachinko/pachislot machine makers, while continuing to grasp the needs of all industry participants and providing proposal-oriented services through intensive marketing.

Our Tracks-2005

Major events in the history of Fields

■Started sales based on the first full scale collaboration with Bisty

88 92 95 00 01 02 03 04

■Formed partnership with Sammy Corporation, an pachinko/pachislot maker, for joint sales

■Initiated Rodeo Corporation, a pachislot maker, with Sammy Corporation

■Sparked a boom in pachislot machines that feature copyrighted characters

05

An independent trading firm handling all models of all manufacturers Fablless manufacturer Content provider

With the objective of more openly distributing pachinko/pachislot machines

As a forerunner in entertainment-oriented trends for pachinko/pachislot machines

Growing demand and increasingly diversified preference for entertainment

Evolution in technique in LCD and chip

■Began sales of pachinko machines created by Sammy Corporation exclusive for Fields in July, 2003

■Business alliance with SANKYO Group member Bisty Co., Ltd to become the sole distributor of its pachinko/pachislot machines in November, 2004

■Hosted the hall design competition inviting architects from worldwide

■Established White Trash Charms Japan Co., Ltd

■JASDAQ trading of shares began in March, 2003

■Equity and business alliance with D3Publisher Inc. in January, 2004

■Established Professional Management Co., Ltd and Total Workout Corporation

■Changed company name to Fields

■Bought out “Leisure Nippon Newspaper Company” to build our new vision for the industry

■Launched “Hall TV” system, a pachinko hall management support system

■Launched Communication Satellite (CS) broadcasting service for the pachinko industry in collaboration with Mitsui & Co., Ltd

To raise awareness and invigorate the industry

Carefully observing the potential needs of the pachislot market

■D3Publisher Inc. becomes consolidated subsidiary in March,2005

■Purchase stock of Kadokawa Haruki Corporation in March, 2005

06

NEXT

■The company was established in Nagoya selling pachinko/pachislot machines

■Established branch offices in Tokyo and Nagoya

■Established branch offices nationwide in Tohoku, Chugoku, Shikoku and Kansai regins

■Acquired shares of J. Sakazaki Mrketing Ltd in July, 2005

■Merged three subsidiaries to form Japan Sports Marketing

Source : Fields


12,097,22411,866,5786,781,1965,730,6881,700,893768,876138,791Operating income

651161,500

2004.3(consolidated)

*20.1

56.939.1

2004.3(consolidated)

40,465

24,000・Memorial 10,000

・Interim 10,000・Full year 4,000

89,3052004.3(consolidated)

5,437,758

2,029,999

△ 3,190,193851,192

37,115,83914,507,8201,295,5006,620,253

12,209,509

66,211,5892004.3(consolidated)

758460323319210166Employees (persons)347,00032,3002,9302,320200200Total outstanding shares

2005.3(consolidated)2003.3(consolidated)2002.32001.32000.31999.3Others

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

28.955.9122.886.0169.1534.6Return on equity46.051.220.817.24.60.4Shareholders’ equity ratio

2005.3(consolidated)2003.3(consolidated)2002.32001.32000.31999.3Management indicators (Unit : %)

19,888117,2331,275,2562,075,0241,310,844174,211Net income per share2nd new shares 548

New shares 27,3984,000

・Interim 2,000・Full year 2,000

10,000Old shares 100,000

15,000－－Annual dividend per share(non-consolidated)

96,026268,6001,325,324461,1221,430,535119,690Shareholders’ equity per share2005.3(consolidated)2003.3(consolidated)2002.32001.32000.31999.3Indicators per share (unit : JPY)

13,326,2565,739,0616,857,5251,414,660－－Cash and cash equivalents at end of the period

10,177,881△ 2,454,8042,004,198△ 920,780－－Cash flows from Financial activities

△5,257,154△ 2,253,217△ 724,077269,440－－Cash flows from Investing activities2,965,8573,316,1284,525,5591,105,738－－Cash flows from Operating activities

72,584,54717,090,43518,631,4386,211,8216,199,9475,388,131Total assets33,426,2738,752,7973,883,2011,069,803286,10723,938Shareholders’ equity7,948,0361,295,500530,500116,00010,00010,000Paid-in capital6,926,7913,524,3723,041,486583,081262,16834,842Net income

12,480,5717,022,0485,664,8661,681,106726,910107,358Ordinary income

81,658,01161,888,83234,560,46811,496,06010,017,58511,811,500Net sales2005.3(consolidated)2003.3(consolidated)2002.32001.32000.31999.3Key financial data (¥thousand)

Financial highlights

Fields 1999-2005

・Consolidated from 2003.3Source : Fields

・October, 2002 10-for-1 stock split ・November, 2003 5-for-1 stock split ・September, 2004 2-for-1 stock split

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

fields corporation interim financial presentation (year ... · cr marilyn monroe ・it recreates...

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