Telephone Conference on Financial Results for the Fiscal Year Ended March 31, 2014: Company Briefing (Summary)

Fields Corporation held a telephone conference on the Financial results for the fiscal year ended March 31, 2014 was held from 11:30 on May 1, 2014 (Thursday).
This page provides an overview of our explanation (summary) at the telephone conference.

Hideaki Hatanaka, Corporate Officer ; General Manager, Corporate Communications Office

1. Overview of consolidated earnings in fiscal year ended March 31, 2014

Consolidated P/L

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The consolidated P/L statement for the fiscal year ended March 31, 2014 reports net sales totaled 114.9 billion yen, operating income was 9.7 billion yen, ordinary income was 9.7 billion yen and net income was 5.3 billion yen.
Compared to the previous fiscal year, net sales up 6.8 billion yen due to an increase in the number of pachinko/pachislot machines sold.
SG&A expenses up 500 million yen due to an increase in the number of pachinko/pachislot titles sold.
The primary factors behind the fluctuations in operating income are as follows.
Sales of pachinko/pachislot machines were solid as a result of an increase in the number of pachinko/pachislot machines sold.
In addition, revenue grew particularly in the licensing business, attributable to events marking the 50th anniversary year for Tsuburaya Productions and the development of a new television series.
At the same time, in the social game business, we refined our lineup and enhanced the efficiency of our operating and development systems, and also continued investing in the creation and cultivation of IP (intellectual property) as part of our efforts to pursue measures and investments focused on medium-to-long-term growth. As a result, operating income decreased 500 million yen.
Ordinary income also decreased 500 million yen.

Consolidated B/S

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Consolidated B/S is shown in the table.

Consolidated cash flow

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Consolidated cash flow is shown in the table.

Number of pachinko/pachislot machines sold

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The number of pachinko/pachislot machines sold is shown in the table.
In the fiscal year ended March 2014, we launched 4 pachinko titles, including “CR EVANGELION 8” (about 75,000 machines), as a general sales agency. Total sales amounted to 162,000 machines (up about 63,000 year-over-year).
We launched 7 pachislot titles, including “ANOTHER GOD HADES” (about 54,000 machines) and “Pachislot Monster Hunter: Gekka Raimei” (about 45,000 machines). Total sales amounted to 230,000 machines (up about 2,000 year-over-year).

Number of primary new game titles in fiscal year ended March 31, 2014

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At the start of the fiscal year, we had planned to release 13 social games, but ended up releasing 7 games.
This was due to postponements as we reviewed titles under development and created games in order to adapt to the shift from Web-based applications to native applications in the market overall. We did not release any arcade games in this fiscal year, but released “Sailor Zombie” (from NAMCO BANDAI Games Inc.) in April 2014.

Primary social games at end of fiscal year ended March 31, 2014

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“AKB48 Stage Fighter” performed well.
We have 2 to 3 titles related to AKB48 ready for the fiscal year ending March 31, 2015, and plan to release the first of these in May.

2. Key IP Initiatives

Examples of IP developments

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The table shows examples of IP development.
As regards IP creation, “HERO’S” IP is making solid progress. 4 volumes in the “ULTRAMAN” have now been released, bringing the cumulative total to more than 1,170,000.
We developed TV animation, social games and goods for “Majestic Prince,” and in the future we also hope to develop pachinko/pachislot machines for this title.
As regards our IP own, we are expanding the character business in a wide of range fields in the “Ultraman” series.
In terms of IP acquisition, we developed movies, social games and a pachinko machine for “BERSERK.”
We are developing multiple IP across media platforms.

3. Forecast of consolidated financial for the fiscal year ending March 31, 2015

Consolidated financial forecasts and information on business strategy conference

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We have not provided the forecast of consolidated financial for the fiscal year ending March 31, 2015 as it is difficult to make logical forecast of financial at this point since the Group’s pachinko/pachislot business is in the midst of negotiations regarding the overall approach to business affiliations with joint ventures. We will explain our forecasts at the business conference to be held on May 7.