FIELDS CORPORATION held a financial presentation for the second quarter of the year ending March 31, 2018 at TKP Tokyo-ekimae Conference Center (Chuo-ku, Tokyo) on November 10, 2017 (Friday) at 11:30 am.
This page provides an overview of the main question & answer session (summary) at the financial presentation.
[Cross-media business platform]
A1. The overall income and expenditure for the cross-media business including consolidated subsidiaries are approximately equal to the profit and amortization of copyright. From the next fiscal year onwards, with the goal of ROI 130% adopted in the Medium-term Management Plan, the Company will achieve further leverage through strategies such as risk-hedgeable production schemes, IP global expansion, and promoting cross-media expansion in domestic pachinko and pachislot, and game field.
The company has already acquired the rights to the IP of other companies for cross-media expansion on many occasions in the past. In the case of cross-media deployment with partners, in addition to IP sublicenses, FIELDS has organized a scheme to partially invest in commercialization and to share development profits.
In terms of marketing policies, the Company's two main focuses will be the development of new business platforms and global expansion. Specifically, the Company will develop completely new ways to use IP in entertainment that is linked with technology, and will sale visual and gaming rights in China and other countries.
A3. We wish to refrain from commenting on future licensing out and cross-media development. For example, in many cases, the Company makes decisions regarding future utilization of anime for pachinko and pachislot after broadcasting.
A4. The market in China is said to be worth approximately 10 billion yen. The Company's policy is to nurture business in that market while developing cross-media, such as visuals, with local partners.
[Pachinko and pachislot business platform]
A5. Although a conclusion cannot be drawn at present, the Company believes that significant changes will start to emerge when the new regulation machines, such as regulation 6.0 pachislot machines and pachinko machines management systems are released in 2019. FIELDS intends to be thoroughly prepared to respond to those changes.
A6. It is possible that the introduction of pachinko and pachislot machines management systems will increase the degree of freedom in hall facilities and make introduction of new entry easier. The industry body is currently planning its approach for the latitude for each setting to be installed in the new regulation machines.
Although the number of halls will reduce to a certain degree even compared with the regulatory reforms in 2004, FIELDS expects the number of installed units will remain steady as halls become larger. Due to the reduction in high-stakes gambling accompanying the regulation revision, the Company expects that more focus will be placed on better locations that make it easier for users to visit. Meanwhile, the emergence of pachinko and pachislot machines management systems and new regulation machines may lead to increased new entrants.
FIELDS believes that it is particularly important to consider the needs and wishes of pachinko halls, providing proposals and support beyond machines, such as plans for new halls, to contribute to activation of the entire industry.
A8. Although sales have not exceeded plans, orders are continuing to come in. Slight growth is expected, depending on the market situation from December to January.
A9. Although discussions are continuing regarding some models, FIELDS is steadily selling the model that it is overseeing, and the Company generally expects to recover the investment costs. FIELDS plans to sell all models developed during this fiscal year, or by the first half of the next fiscal year. Following further discussions with our partner, the Company will announce future initiatives.