FIELDS CORPORATION held a financial presentation and Medium-term Management Plan presentation for the year ended March 31, 2017 in OTEMACHI 1st SQUARE CONFERENCE (Chiyoda-ku, Tokyo) on May 10, 2017 (Wednesday) at 11:30 am.
This page provides an overview of the question & answer session at the presentation.
A1. On both an operating cash-flow basis, and an operating income basis, we expect the company to be in profit if we achieve the targets which we have proposed.
The company operates on a three-year term, and in respect of the adjustments made according to investment undertaken over the past three years, there remains the possibility that non-operating expenses or extraordinary losses may arise.
A2. In order to raise the value of IP, it is important, in the case of pachinko and social games, for example, to have plans that match game function and interest. However, over the past three or four years, our goal has been to secure IP.
Moving forward, we believe that business will be unable to succeed only through IP. Instead, products and services will emerge from a combination of planning and IP. From FY2019, we believe that we can develop pachinko/pachislot machines that incorporate such planning.
A3. In the past, we actively offered various proposals and support to pachinko halls, building relationships of trust, however we believe that to some degree, we have developed a reliance on product appeal, or even arrogance.
At present, the market presents a tough business environment, and in such times, it is particularly important to consider the needs and wishes of pachinko halls, providing proposals and support beyond machines, in order to contribute to the activation of the entire industry.
A4. We are holding discussions aimed at sales of pachinko/pachislot machines that have already been developed. However, MIZUHO CORP. is not currently engaged in newly machines development.
A5. IP-related sales were ¥12.0 billion for FY2016, and are forecast to reach approximately ¥24.0 billion for FY2019.
A6. Operating income for FY2019 is forecast at approximately ¥2.0 billion, representing around 30% of the overall total.
A7. We have not precisely calculated overall ROI for managerial accounting purposes, so we wish to refrain from responding at this time.
However, to date, certain individual titles have had ROI of 200% or more, while the lowest level has been around 70%, so we believe that we need to achieve ROI of approximately 130% on average for each investment in order to build profits.
A8. There are no remaining issues that will impact upon cost and SG&A expenses, thereby affecting operating income. We believe the only possible issues are devaluation of current investments or losses.
A9. The directors are not solely responsible for leading the achievement of the Medium-term Management Plan, and our current intention is to create mechanisms whereby the company can sustain the plan.
These mechanisms represent a reconstruction of the value chain, and it is important that all employees understand their role in that value chain. We hope to create mechanisms that can function regardless of who the leader is.
Consequently, the one-year term of office for directors does not need to align with the achievement of the Medium-term Management Plan.