From 12:00 on Friday, May 14, 2021, FIELDS CORPORATION held a financial results briefing (conference call) for the fiscal year ending March 31, 2021
This page provides an overview of the main questions and answers (summaries) at the briefing.
[Pachinko and pachislot (hereinafter, “PS”) related]
A1: Assuming that approximately 1.5 million old regulation machines will be replaced by new-regulation machines, the Company expects total market unit sales in the FY2021 to be around 1.6 million units.
A2: The applications to Security Communications Association remains crowded, and it is difficult to accept such applications, as the number of applications submitted to Security Communications Association is nearly 100 per day. Passing test ratio is recovering slightly, with pachinko about 40% and pachislot about 30%.
A3: There is no change to all old regulation machines scheduled to be removed during FY2021.
We believe this is a good news for the market and us, as it is able to gradually remove machines each month and expect to be able to replace them more stably than in the past. On the other hand, as the impact of declaration of state of emergency and other factors remains uncertain, the Company is also continuing to scrutinize its current sales and future forecasts.
A4: Industry groups have issued documents stating that they will continue to systematically remove and replace the machines from July to September, during the Olympic, and we recognize that there will be no restraint on replacements during the period.
A5: In PS market in FY2020, the number of pachinko hall declined by a little less than 8% YoY, while total number of machines installed in the market declined only slightly. Based on this assumption, if the removal of the old regulation machines is completed as scheduled, the average number of units sold in the next few years will probably remain at the actual level of FY2021.
A6: The Company may utilize M&A, etc. for evolving the various services such as “PS Information Station.”
A7: A major measure launched in the fiscal year under review (FY2020) is a subscription service “TSUBURAYA IMAGINATION”, which is a collaboration with NTT DOCOMO. In addition, the comic version of “Ultraman” was launched in North America from MARVEL COMICS, and it received a response. Other than that, works aimed at kids and families have had a very good record.
For the next fiscal year (FY2021), “SHIN ULTRAMAN” is considered the largest title. The Company also plans to take a variety of measures this summer, including new TV programs for children and tie-ups with major companies. In addition, the Company will begin full-fledged development of titles for the global market, such as CG anime movie “Ultraman,” which will be jointly produced with Netflix.
A8: Tsuburaya Productions and Netflix have been involved to date in the distribution of the full 3DCG anime “ULTRAMAN,” etc., and the title has a certain track record, including deciding to produce season 2 due to its popularity. Our Group has great hopes for the CG anime film announced this time amid this trend and we will continue to deepen our relations with Netflix as a good business partner in the future.
A9: The production is handled by Industrial Light & Magic. We will refrain from details at this time regarding the size of the investment amount and the timing of recording revenue.
A10: Although it is difficult to predict a specific amount, the recently released “EVANGELION: 3.0+1.0 ” by Hideaki Anno has recorded a revenue of ¥8.3 billion at this point, and we are also looking forward to “SHIN ULTRAMAN.” In the future, we would like to convert both works into merchandise, and when they materialize, we would like to deliver them to everyone as a merchandise that further highlights the attractiveness of the works.
A11: We are already building a system in which young employees can play a central role in growing the company.
As a distributor and trading company in the PS industry, we have grown the company with sales expertise, which has strengths in the number of branch offices and sales employees nationwide. Going forward, in order to quickly build a foundation for a stable PS business in a mature market, the Company will work to strengthen its “sales capabilities” utilizing DX (Digital Transformation) and other technologies. This change in direction requires a radical overhaul of the sales-related activity process, so the Company intends to actively hire young people capable of handling DX and other issues and promote generational change in all situations.
In April, Takashi Yamamoto, the son of me (Hidetoshi Yamamoto), was selected as Corporate Officer of the Group Strategy, and in the next few years, we will nurture him to become a major force for the growth of the Company.
A12: Centered on Tsuburaya Productions, the Company is advancing its business not only in the gaming field, but also with a view to expanding its digital business utilizing IT technologies.
A13: With regard to the medium-term management plan announcement, the Company will announce the details that incorporate the specific strategies of “building a foundation for a stable PS business in a mature market” and “shifting to an IP company,” in conjunction with the timing in which it will be able to announce results forecasts for the next fiscal year.
A14: In order to shift our group to an IP company, we will cultivate two companies, Tsuburaya Productions and Digital Frontier, as global companies. Based on the prospect of expanding and horizontally deploying the knowledge and systems gained there in the next step, the strategic
initiatives that had been underway at both companies produced tangible results in 2020.
Looking ahead, I think the key points will be the creation of new large-scale IP and the shift to the digital field. I would like to explain these details when announcing the medium-term management plan.