Earnings Presentation for the First Quarter of the Year Ending March 31, 2017: Question & Answer Session (Summary)

FIELDS CORPORATION held a financial presentation for the First Quarter of the Year Ending March 31, 2017 in OTEMACHI 1st SQUARE CONFERENCE (Chiyoda-ku, Tokyo) on August 1, 2016 (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)

Q1. For a distribution-based company like yours, what do you consider to be the biggest challenges in discovering and developing new IP?

A1. We prioritize the discovery and development of IP, and as part of this strategy, we focus on the remake and rebirth of legend IP. The challenge is promoting IP on large platforms over long periods, as well as promoting IP widely, including in overseas markets. To meet this challenge, we are collaborating with SVOD (Subscription Video On Demand) operators and other global platform companies to build successful development systems.

Q2. More companies are now focusing on IP. Since one of your challenges is to accumulate and develop powerful IP, do you think the competitive environment will intensify?

A2. The environment in which we operate has a diverse range of IP genres. We are focusing on the creation and development of hero-type IP which we can promote widely in and outside Japan. This is how we differentiate ourselves from the competition.

Q3. Please explain your M&A policy.

A3. Since we are promoting an IP-based business model, platform companies are not potential M&A targets. On the other hand, companies with IP assets, especially companies with legend IP like “Ultraman,” would be potential M&A targets.

Q4. You posted a loss in the first quarter. Will it be possible for you to meet the full-year profit forecast?

A4. Unless special factors impact our performance, I believe that we will be able to better judge the accuracy of our forecast at the start of the fourth quarter.

Q5. “GANTZ” is a powerful IP asset, and you have made a significant investment in the IP acquisition and visualization. Can you recoup this investment?

A5. We won't be able to recoup investment just on the movie. We plan to make a profit by accelerating cross-media development.

Q6. Regarding the new standard machines, since operating share for pachinko machines is strong, do you plan to focus sales efforts on pachinko machines?

A6. We are making progress on transitioning to new standard machines in collaboration with machine manufacturers. Gaming halls, for their part, replace all machines together, not just pachinko machines, and therefore we will not focus on pachinko machines but rather promote sales of both pachinko and pachislot machines at the same time.
Additionally, in addition to profit from distribution, we will aim to generate profit from machine development and manufacturing in the future. We are now at the stage of making up-front investments, but in the mid-term, we expect development and manufacturing activities to contribute to profits.