Earnings Presentation for the Third Quarter of the Year Ending March 31, 2015: Question and Answer Session (Summary)

FIELDS CORPORATION held a financial presentation for the third quarter of the fiscal year ending March 31, 2015 in OTEMACHI 1st SQUARE CONFERENCE (Chiyoda-ku, Tokyo) on February 4, 2015 (Wednesday) at 11:30 am.
This page provides an overview of the main question & answer session (summary) at the financial presentation.

Question & Answer Session (Summary)

(February 4, 2015)

Q1. How many “Pachislot BERSERK” and “Pachinko Ultra Battle Retsuden” machines were sold? Also, were sales of these 2 titles included in the Company’s forecasts for this fiscal year?

A1. I cannot comment on the estimated sales volume for individual titles, but I can say that both “Pachislot BERSERK” and “Pachinko Ultra Battle Retsuden” have been well received by pachinko halls, and sales activities have also been strong. Sales for these 2 titles are factored in to forecasts for this fiscal period.

Q2. What are your expectations for the sales volume for pachinko/pachislot machines in the next fiscal year?

A2. At present, we are able to launch 10 pachislot titles a year, and going forward we expect to be able to launch 2 to 3 times as many titles as in this fiscal year. We expect the sales volume to be flat for a pachinko machines year-over-year and increase significantly for pachislot machines year-over-year in the next fiscal year.

Q3. What percentage of the pachislot line-up for the next fiscal year will be sold by the end of November 2015, which is the deadline before the new penalty method is enforced, and what percentage will be sold after that point?

A3. We expect it to be about half and half.

Q4. Fields expects the overseas licensing business for IP to increase going forward. What do you think the scale will be?

A4. Our overseas development is roughly divided into license sales based on royalties and sales of animation to distribution channel. We have received many inquiries from overseas, and expect to be able to gain gross profit roughly 5 times more than current levels within a few years. There is also talk of joint productions with a major pay TV channel in North America, and if this materializes, we can expand our merchandising business more.

Q5. What is the animation schedule for “NINJA SLAYER” and what are the Company’s expectations for this?

A5. We hold the rights for animation, including inquiries regarding merchandising, and we expect full-scale development next fiscal year. There have been many offers both in Japan and overseas, and the number of requests regarding merchandising is also higher so we have great expectations. We will be able to give an idea of the scale of merchandising in the next fiscal year and thereafter when this initiative gets underway in earnest.

Q6. How many social game titles do you have, and what is the upcoming schedule?

A6. Mobile games are shifting completely from web-based applications to native applications, and we are also moving in this direction. We expect to develop one title using original IP each quarter, and to release about 2 titles using existed IP in cross-media development each year. The actual figures could be somewhat higher or lower, but we plan to release a total of 6 to 8 titles a year.