Earnings Presentation for the Second Quarter of the Year Ending March 31, 2016: Question & Answer Session (Summary)

FIELDS CORPORATION held a financial presentation for the second quarter of the year ending March 31, 2016 in OTEMACHI 1st SQUARE CONFERENCE (Chiyoda-ku, Tokyo) on November 2, 2015 (Monday) at 11:30 am.
This page provides an overview of the main question & answer session (summary) at the financial presentation.

Question & Answer Session (Summary)

(November 2, 2015)

Q1. The pachinko machine business faces MAX-type machine regulations and trade-in problems; what is your view on trends in future regulations?

A1. There has been talk of regulations, but at this point their direction has not been finalized. We will provide a general overview when the situation has stabilized a little more.

Q2. Given the likely impact of regulations on earnings in the next fiscal year, do you expect earnings to increase or decrease, or remain flat compared to this fiscal year? Do you have any projections for the number of titles sold?

A2. We expect the number of titles sold to increase by five titles every year over the next three years. An increase in the number of affiliated manufacturers and measures to strengthen sales bases and personnel over the next few years should contribute to sales beginning in the next two years. Although the pachinko/pachislot machine industry is facing some setbacks, the timing is such that a system is already in place so that we can work toward sharp gains in sales and income in the next fiscal year.

Q3. Can you please tell us your thoughts about IP-related earnings this fiscal year, as well as when you expect the monetization of IP from the next fiscal year to generate revenue?

A3. IP-related earnings are break-even this fiscal year, when excluding PS-related products, and we expect to see a profit beginning next fiscal year. Native applications can be expected to make a major contribution to revenue. If we continue to have several titles a year in the top 70 for sales rankings, we can expect 2-3 billion yen in income. In addition to games, we aim to boost revenue further by developing other IP, including the IP of subsidiaries such as Tsuburaya Productions.

Q4. Native applications have been released at a pace of one every quarter, but do you expect this to continue?

A4. Due to delays in development, we might occasionally release two applications in one quarter (with none the previous quarter), but essentially we plan to release one application every quarter.