Earnings Presentation for the Q1 FY2017: Question & Answer Session (Summary)

FIELDS CORPORATION held a financial presentation for the first quarter of the year Ending March 31, 2018 in OTEMACHI 1st SQUARE CONFERENCE (Chiyoda-ku, Tokyo) on August 1, 2017 (Tuesday) 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. With regard to the new relationship with Sammy: FIELDS specializes in distribution, so what are the advantages to Sammy?

A1. The Rodeo brand that we have developed in cooperation with Sammy has received a certain level of positive evaluation, and we believe that market expectations for the new cooperative structure are high. With regard to the benefits to Sammy, in our opinion, Sammy will be able to effectively use our functions as a distribution and trading company.

Q2. What is FIELDS’ view on future changes in sales volumes in the pachinko/pachislot machines market in light of the regulatory amendments?

A2. We do not believe that the pachinko/pachislot machines market overall will trend upwards over the medium to short term. There has been talk of the pachislot market falling below 600,000 units annually, and we believe that conditions may become even more severe. On the other hand, although the pachinko market is shrinking, the figures will be more moderate.

Q3. In the case where controlled machines are introduced, how will the game aspects change?

A3. We are in the research stages regarding the impact on game aspects and development, and we are diligently carrying out our plans regarding controlled machines.

Q4. What impact does the introduction of controlled machines have on pachinko hall capital investment?

A4. Initial investment will impose a temporary burden, but we believe that it will lead to cost reductions over the long term, including lower personnel expenses.

Q5. There have been effects from curtailed SG&A in the past. What is FIELDS’ outlook for SG&A in the future?

A5. We are cutting sales promotion costs by transitioning to promotions centered on our branches rather than large-scale venues as in the past. We are also taking measures and making improvements from the perspective of raising management efficiency. We believe that there will be SG&A reduction effects in the next fiscal term and the term after that.