Earnings Presentation for the Q3 FY2019: Question & Answer Session (Summary)

FIELDS CORPORATION held a financial briefing for the Q3 of the FY2019 at Shibuya Garden Tower (Shibuya-ku, Tokyo) on February 17, 2019 (Monday) at 11:30 am.
This page provides an overview of the main question & answer session (summary) at the briefing.

Question & Answer Session (Summary)

Q1. I would like to ask about management’s progress and policies going forward.

A1. We have been implementing various management efficient measures to optimize management costs since May 2018, and have achieved a certain level of results in terms of cost reductions and synergies among in-house companies.
Looking ahead, in pachinko/pachislot (hereafter, PS) sales, the Company is aiming to increase profits by formulating good merchandise plans as a distributor, developing a merchandise lineup with manufacturers, and increasing the number of units sold per title. We believe that creating a “good merchandise” that is accepted by pachinko halls and fans, such as our Evangelion series, which has become a hit merchandise with more than 200,000 units sold in one title, will lead to increase of unit sales and greater-than-expected earnings growth.

Q2. I would like to ask about the progress of new businesses.

A2. While some issues remain in the PS used machine sales business, the Company continues to work on new businesses that generate synergies in PS sales. In addition to these new businesses, we are also focusing on businesses that have the potential to expand globally, such as Tsuburaya Productions. We are preparing to take a step further from the research stage to stage of generating profit. (We would like to announce the outlook including these details in the medium-term management plan scheduled for around May 2020.)

Q3. What are the likely changes in regulations in the PS industry?

A3. Based on historical experience, a large regulatory amendment/revised regulations occurs in about 10 years. This occurs as a review of regulation in line with the evolution of technologies related to PS machine, and we believe that similar events may occur in the future. We will continue to introduce optimal merchandise to the marketplace at the optimal time based on regulation.

Q4. Are you considering new businesses related to casinos and IR?

A4. If casinos and IR is a form of entertainment that can be enjoyed within a moderate expenditure framework, we would like to provide hardware or software (peripheral entertainment) that people around the world can enjoy.

Q5. I would like to know the progress of sales of smoking booths.

A5. With the full enforcement of the Revised Health Promotion Law (The law which revises the part of Health Promotion Act) in April 2020, we are proceeding smoothly as a distributor and trading company to meet the demand for pachinko halls.