IR Presentation Material
April, 2021
p
Oriental Land Co., Ltd.
This material has been specifically prepared for institutional investors who are not familiar with our company, and is not presentation material for the earnings presentation.
Contents
I. Business Outline
I-I. Theme Park Business
I II Hotel Business
II. 2020 Medium-term Plan
III. Growth Investments beyond FY3/22
IV For Long term Sustainable Growth
I-II. Hotel Business
I-III. Overview
IV. For Long-term Sustainable Growth
V. Appendix
Cautionary Statement
This document includes statements about Oriental Land’s plans, estimates, strategies and beliefs.
2
The statements made that are based on historical fact represent the assumptions and
expectations of Oriental Land in light of the information available to it as of the date when this
document was prepared, and should be considered as forward-looking.
Oriental Land uses a variety of business measures to constantly strive to increase its net sales and
Oriental Land uses a variety of business measures to constantly strive to increase its net sales and
management efficiency.
However, Oriental Land recognizes that there are certain risks and uncertainties that should be
considered which could cause actual performance results to differ from those discussed in the
forward looking statements
forward-looking statements.
Potential risks could include, but are not limited to, weather, general economic conditions, and
consumer preferences. Therefore, there is no firm assurance that the forward-looking statements
in this document will prove to be accurate.
2
2
Theme Park attendance figures have been rounded. Financial figures have been truncated.
All rights reserved.
Corporate Profile
I. Business Outline
Corporate Data
Established
July 11 1960
Stock Information
Tokyo Stock
Established
July 11, 1960
Total Assets
[consolidated]
¥1,040.4 billion
Stock Listing Code
No.
Tokyo Stock
Exchange, First
Section 4661
[
]
Shareholders’
Equity
[consolidated]
¥759.9 billion
Investment Unit
100 shares
Stock Price
¥15,610
4
[consolidated]
Bond Ratings
JCR : AA [Stable]
R&I : AA
-[Stable]
Aggregate Market
Price
¥5,677.2 billion
[As of March 31, 2021] [As of April 27, 2021]
Corporate Mission
Business Domain
“W
b i
th t fill
[As of March 31, 2021] [As of April 27, 2021]
Our mission is to create happiness and
contentment by offering wonderful
dreams and moving experiences created
with original imaginative ideas
“We pursue businesses that fill your
heart with energy and happiness”
We strive to create new value in a high-value business for enriching and nourishing people’s hearts
4
4
with original, imaginative ideas
and appealing to abundant humanity and happinessHistory and Business Description
I. Business Outline
Disney Hotels [under direct management]
Shops and restaurants, cinema complex, etc.
Monorail service provided around
the resort
1960 Oriental Land Co., Ltd. [OLC] was established
1962 OLC and Chiba Prefecture concluded the Urayasu
History
Tokyo Disney Resort
Ikspiari
Disney Ambassador
Hotel 1962 O C a d C ba e ec u e co c uded e U ayasu
District Land Reclamation Agreement
1964 Reclamation work began off the coast of Urayasu
[completed in 1975]
OLC and Walt Disney Productions [currently Disney
Tokyo Disneyland
Tokyo DisneySeaHotel MiraCosta TokyoDisneyland Hotel 1979
OLC and Walt Disney Productions [currently, Disney Enterprises, Inc.] concluded an agreement on the licensing, design, construction and operation of Tokyo Disneyland
1983 Tokyo Disneyland opened
5
Tokyo DisneySea
1983 Tokyo Disneyland opened
1996 Listed on the first section of the TokyoStock Exchange
2000 Ikspiari and Disney Ambassador Hotel opened
Tokyo Disney Resort Official Hotels 2001 Disney Resort Line, Tokyo DisneySea, and Tokyo
DisneySea Hotel MiraCosta opened
2008 Tokyo Disneyland Hotel opened
Milial Resort Hotels Co Ltd (MRH) acquired all
The first Disney Theme Park outside of the U.S.
The only “Sea”-themed Disney Theme Park in the world
2013 Milial Resort Hotels Co., Ltd. (MRH) acquired all
stocks of Brighton Corporation Co., Ltd.
2016 Tokyo Disney Celebration Hotel opened
5
5
Managing and operating a large scale theme resort offering versatile
Entertainment facilities
Unique Competitive Advantage to Support Our Earnings
I. Business Outline
1. Prime Locations
2. License Agreement with Disney
1. Prime Locations
Vast Land Holdings
Own approx. 2,000,000 m2
2. License Agreement with Disney
Period
2046 at maximum
Note: When facilities open as planned, the agreement period can be extended to 2076 at maximum
pp , ,
[approx. 500 acres] of land easily accessible from central Tokyo
Huge Market
2076 at maximum
Activities
Covered
Management and operation of Tokyo
Disney Resort, etc.
C
id
ti
Payment of royalties fees based on net
Approx. 30 million of high incomehouseholds living within 50km [30 miles] radius
Consideration
Payment of royalties fees based on net
sales [yen basis]
Relationship
No capital or personnel relationship
O l OLC
t
Di
Th
P
k i J
6
Only OLC operates Disney Theme Parks in Japan
3. Human Resources with
Magnificent Hospitality
g
p
y
Raise the level of
Employee Satisfaction
Raise the level of
Guest Satisfaction
東京 千葉 神奈川 Tokyo Chiba Saitama IbarakiDiverse measures and education/training programs
are implemented with as much focus on employee
satisfaction as on Guest satisfaction
神奈川 Chiba Kanagawa
6
6
Establish stable earnings base by implementing structural/non-structural
strategies that capitalize on the advantageous location
Mechanism of Value Creation
I. Business Outline
U i
titi
V l
Unique competitive
advantage
Business model
Value
provided
Hotel
Business
Segment
New
investment
(1) Prime Locations
Segment
←Enhanced appeal
increases cash flow
Increasing
corporate value
7
(2) License Agreement with
Disney
(3) Human Resources
Enhance appeal by
making additional
investments on an
Theme Park
Segment
corporate value
“Creating
Happiness”
Oth
investments on an
ongoing basis →
Attract more
Other
Business
Segment
Guests/Increase
sales per Guest
7
7
Deliver more happiness by making tangible and intangible investments
to increase corporate value
Changes in Business Results
I. Business Outline
Net Sales and Operating Margin
Operating Profit and Profit
Consolidated net sales [¥ billion] Consolidated operating profit [¥ billion]
129.2 477.7 479.2
525.6
464.4
Operating margin Consolidated profit attributable to owners of parent
[¥ billion] 113.1 110.2 96.8 82.3 81.1 90.2 62 2 23.7% 23.0% 24.6% 20.9% 8 62.2 170.5 Influence of Influence of 3/17 3/18 3/19 3/20 3/21 3/17 3/18 3/19 3/20 3/21 [FY] [FY]
COVID-19 pandemic COVID-19 pandemic
(45.9)
(27.0)% (54.1)
8
8
Our business result decreased as a result of temporary closure of 4 months
Segment Information
I. Business Outline
Breakdown by Segment and Content of Segments
Breakdown by Segment and Content of Segments
Consolidated net sales
1 0
Results for FY ended 3/21
Tokyo Disneyland
¥170.5 billion
Theme Park
Segment
o yo
s ey a d
Tokyo DisneySea
9Hotel Business
Tokyo Disneyland Hotel
Tokyo DinsneySea Hotel MiraCosta
Disney Ambassador Hotel
Tokyo Disney Celebration Hotel
78.7%
Segment
Tokyo Disney Celebration Hotel
and others
Other Business
Segment
Ikspiari
Disney Resort Line
and others
16.8%
9
9
g
About 80% comes from the Theme Park Segment
Trend in Theme Park Attendance
I-I. Theme Park Business
Annual Theme Park Attendance
Tokyo Disney Resort 25th Anniversary
Tokyo Disney Resort 30th Anniversary
T k Di S
Tokyo Disney Resort 35th Anniversary
[million people]
%: year on year
Annual Theme Park Attendance
Tokyo DisneySea 5th Anniversary Opening of Tokyo DisneySea Tokyo Disneyland 15th Anniversary Tokyo DisneySea 15th Anniversary 31 30 [+8 2%]32.56 Tokyo Disneyland 20th Anniversary Tokyo DisneySea 10th Anniversary 15th Anniversary Opening of Tokyo Disneyland 30.00 [(0.6)%] 31.30 [+13.8%] 25.35 [(0.1)%] 27.22 [+7.1%] 25.82 [+4.2%] 25.47 [+2.6%] [+8.2%] 20th Anniversary 11 17.46 [+4.6%] Tokyo Disneyland 22.05 [+27.4%] 7.56 [(73.9)%] 9.93 [FY] 3/21 3/04 3/02 3/07 3/99 3/09 3/12 3/14 3/17 3/19
Note: Attendance figures for FY 3/12 and 3/17 decreased from the previous fiscal years respectively because of the influence of earthquakes. Attendance figure for FY 3/21 decreased from the previous fiscal year due to the spread of COVID-19. 3/84
11
11
Theme Park attendance has increased driven by each anniversary event,
exceeding 30 million on a stable basis
Trend in Theme Park Attendance
I-I. Theme Park Business
B
kd
f G
b R
i
N
b
f O
G
Breakdown of Guests by Region
Number of Overseas Guests
15 0% 6.0% 8.5% 9.8% 9.6% 10.0% Overse a 3.13 [million people] 27.3% 26.8% 26.6% 29.6% 27.1% 15.0% Other areas in Japan as 2.55 2.95 3.13 2.90 66.7% 64.7% 63.6% 60.8% 62.9% 85.0% Metrop o A re 1.81 12 olitan ea 0 [FY] 3/16 3/17 3/18 3/19 3/20 3/21 [FY] 3/16 3/17 3/18 3/19 3/20 3/21
Metropolitan
Area
・Largest number of Guests accounting
for approx.60%
・Increases in tandem with the
growing number of tourists visiting
pp
Other areas
in Japan
・Mainly Chubu and Koshinetsu regions
・Tends to grow in anniversary years
Overseas
Japan
・More guests can be attracted from
this category
12
12
Guests from overseas and areas other than metropolitan area
decreased due to COVID-19
Net Sales per Guest
I-I. Theme Park Business
Net Sales per Guest and Breakdown
Net Sales per Guest and Breakdown
[¥]
Ticket price revision policy
Increase in Theme Price sensitivity
13 642
Ticket
Receipts
5 007 5,264 5,339 5,352 5,292 6,538 11,257 11,594 11,606 11,815 11,614 × +Trends in demandNote: Take external environment including tax hike into consideration
Increase in Theme
Park value Price sensitivity survey result
13,642
• Ticket receipts per Guest increase over
two years since ticket price revision
• Tend to increase in anniversary event
5,007 ,13
Merchandise*
• Development of contents, such as Duffy &
years
Friends series, lead to increase in
earnings
3,964 4,074 3,989 4,122 3,877
4,122
Food and
Beverages • Stable net sales maintained regardless of
whether or not events are hold
2,286 2,256 2,286 2,341 2,437 2,982
*Excludes net sales for online Tokyo Disney Resort Shopping service
whether or not events are hold
• Create more dining opportunities
3/16 3/17 3/18 3/19 3/20 3/21 [FY]
13
13
Achieved increase in net sales per Guest based on meticulous pricing strategy
Note: Each figure for net sales per Guest in FY3/21 grew for the reasons including restriction on ticket types under the limit of COVID-19 pandemic, temporary demand for merchandise, and increased dining opportunities with less waiting time for attractions.
Facilities of Hotel Business
I-II. Hotel Business
Di
H t l
Disney Hotels
Disney Ambassador
Hotel
Tokyo DisneySea
Hotel MiraCosta
Tokyo Disneyland
Hotel
Tokyo Disney
Celebration Hotel
Deluxe-type
Deluxe-type
Deluxe-type
Value-type
504 rooms
502 rooms
706 rooms
702 rooms
504 rooms
502 rooms
706 rooms
702 rooms
・
Own four Disney Hotels [about 2,400 rooms]
・
Tokyo Disney Resort Toy Story Hotel is scheduled to launch in the 2nd half of FY3/22
15
・
Tokyo Disney Resort Toy Story Hotel is scheduled to launch in the 2nd half of FY3/22
・
New Disney Hotel located inside Tokyo DisneySea is scheduled to launch in FY3/24
Other Hotels
・
Own Brighton-brand hotels [about 600 rooms]
・
Hyatt Regency Seragaki Island Okinawa opened in August, 2018 [joint project of three
companies]
15
15
Strengthen Hotel business with the growth and expansion of
Tokyo Disney Resort
Results for Hotel Business
I-II. Hotel Business
Net sales and operating margin for Hotel Business
Net sales [¥ million] Operating margin
72 427
Opening of Tokyo Disney Celebration Hotel 66,144 66,447 72,427 64,375 16 28,627 22.1% 24.5% 26.5% 22.9% 3/17 3/18 3/19 3/20 3/21 [FY] (6.8)% 16 16
Net sales and operating profit dropped due to the temporary closure of
Changes in Results
I-III. Overview
Operating profit and operating margin
24 6%
Single park era Operating margin:
approx. 20%
Burdened with high depreciation and amortization expenses/increase in costs
Operating margin: approx. 10%
Operating margin improves
Operating margin: approx. 20%
[¥ billion]
Operating profit and operating margin
18.4% 14.6% 11.1% 12.0% 11.5% 11.5% 10.4% 9.2% 9.9% 9.1% 10.3% 11.3% 15.1% 18.6% 20.6% 24.2% 23.7% 23.1% 23.7% 23.0% 24.6% 20.9%
Opening of Tokyo DisneySea
34 5 33 6 38 0 38 7 34 5 34 1 40 0 41.9 53.6 66.9 81.4 114.4 110.6 107.3 113.1 110.2 129.2 96.8 Influence of COVID-19 18 34.5 25.4 22.1 33.6 38.0 38.7 34.5 30.6 34.1 31.1 40.0 41.9 (27.0)% 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 3/19 3/20 3/21 [FY] pandemic
Operating profit [¥ billion] Operating margin (45.9) Operating cash flow*1 26.7 22.2 23.1 50.6 66.8 64.5 61.7 59.0 59.2 58.3 67.8 72.1 65.1 74.0 87.6 107.5 106.7 109.9 120.6 118.5 128.5 101.6 (8.2) Depreciation and amortization*2 11.6 12.4 18.4 37.9 47.9 45.9 44.5 43.3 42.9 43.6 49.7 46.6 42.2 41.9 36.1 36.9 34.6 35.9 38.2 37.3 38.2 39.4 45.8 Operating margin
Note: The 3/99 results are unconsolidated.
*1 Operating cash flow = Profit attributable to owners of parent + Depreciation and amortization
*2 Depreciation and amortization costs include that of which have been transferred to non-operating expenses and extraordinary losses.
amortization Capital
expenditures 59.8 130.4 182.2 109.7 14.8 29.2 46.8 43.1 54.8 52.6 40.1 19.4 27.9 23.2 28.7 20.3 37.0 39.7 50.9 59.8 86.0 139.6 108.3
18
18
Operating margin is expected to rise to a higher level after pulling through
the phase of high burden of depreciation and amortization expenses
Results for the FY Ended March 2021
I-III. Overview
Year-on-year comparison
Net Sales
464 4
170 5
(293 8)
(63 3)
Changes [¥ billion] FY3/20[¥ billion] [¥ billion]FY3/21 Changes[%]
Net sales
Decreased due mainly to the measures to prevent the spread of COVID-19 such as the temporary closure of Tokyo Disneyland, Tokyo DisneySea, and Disney
H t l ll th ti ith li it d tt d
Net Sales
464.4
170.5
(293.8)
(63.3)
Theme Park Segment 384.0 134.2 (249.7) (65.0) Hotel Business 64 3 28 6 (35 7) (55 5)Hotels as well as the operation with limited attendance after reopening our Parks although net sales per Guest increased year on year.
Operating profit
Declined owing to a drop in net sales even though
Segment 64.3 28.6 (35.7) (55.5)
Other Business
Segment 16.0 7.6 (8.3) (52.3)
O
ti
P fit
96 8
(45 9)
(142 8)
Declined owing to a drop in net sales even though operating expenses were reduced due to the
temporary closure of both Parks and changes made to Theme Park operations and a part of operating
expenses was transferred to extraordinary loss.
19
Operating Profit
96.8
(45.9)
(142.8)
-Theme Park
Segment 79.6 (41.9) (121.6)
-Hotel Business
Comparison with the forecast
Net sales
Hotel BusinessSegment 14.7 (1.9) (16.7)
-Other Business
Segment 2.1 (2.3) (4.4)
-Fell below our forecast owing to limited Theme Park attendance in line with the state of emergency and other factors even though net sales per Guest surpassed projected figure.
Operating profit
Ordinary Profit
98.0
(49.2)
(147.2)
-Profit Attributable to
Owners of Parent
62.2
(54.1)
(116.4)
-Operating profit
Exceeded the forecast announced in Oct. mainly because operating expenses were lower than
expected although net sales were below our projection.
19
19
Net sales and all levels of profit decreased year on year due to
the temporary Park closure and limited Theme Park attendance
Financial Results
I-III. Overview
Changes in net sales and operating profit and reasons for changes
74.2
52.9
77.9
33 4
g
g
g
Feb. 29 Parks temporarily Jul 1 Parks resumed Sep. 28 Tokyo Disneyland Large-Scale Development
Net sales Operating profit
[¥ billion]
Jan. 8 State of emergency
[Attendance] [Attendance] [Attendance]
Li it d tt d i li ith A t P k [Attendance]O t 30 G id li d (100 % [Attendance]
6.1 (4.1) (15.6) 4Q of FY 3/20 1Q of FY 3/21 33.4 (8.5) 4.3 (26.1) 2Q of FY 3/21 3Q of FY 3/21 4Q of FY 3/21 p y
closed Jul. 1 Parks resumed operations Large-Scale Development area opened
Reasons for cha n sales [ ] Temporary Park closure [ ]
Temporary Park closure
[Tickets/
merchandise/food and beverages]
・ May 26‒Jun. 24: Offered opportunities to purchase goods sold at
・ Limited attendance in line with Amusement Park and Theme Park New Coronavirus Infection Containment Guidelines (50% or less)
[Tickets/merchandise/food and beverages]
・Revised ticket prices*1
・Limited ticket types valid for admission ・Strong demand for event-related merchandise
that could not be sold during temporary Park closure
・Oct. 30 Guidelines were eased (100 % or less)
[Tickets/merchandise/food and beverages]
・Aug. 7-Dec. 31: Held Park admission lotteries for Annual Passport holders ・Dec. 1: Started holding lotteries for open
date Park tickets
・Nov. 1: Started offering online shopping service on app to all members of the public
[ ]
・Jan. 12-Mar. 21: Daily attendance was limited to 5,000 for each Park when the declaration of state of emergency was issued
・Mar. 22: The attendance limit was raised to 10,000, in principle, for each Park
20
nge in net Parks via app ・Aug. 4-Oct. 31: Online shopping service offered on app to Annual Pass holders regardless of whether or not they are visiting Parks
pp p
including those who are not visiting Parks ・Oct. 1: Started selling alcoholic beverages
on a trial basis at Tokyo Disneyland
[Tickets/merchandise/food and beverages]
・Introduction of variable pricing for tickets
R
e [All areas]・Fixed expenses registered as extraordinary [All areas]・Increase due to resumed Park operations [All areas]・Increase due to phased increase of [All area]D d t d li i
easons
for chan
g
operating profi Fixed expenses registered as extraordinary loss ・decrease due to temporary Park closure
[Personnel expenses]
・May 18: Started furlough of employees ・Reduced directors’ compensation (voluntarily
returned up until May 2020)
・Partially reduced summer bonus payments to managerial personnel
・Increase due to resumed Park operations
[Personnel expenses]
・Received employment adjustment subsidy*2
・Reduced winter bonus payments to full-time employees
[Miscellaneous costs]
・Decreased sales promotion costs and costs related to special events
Increase due to phased increase of attendance
[Personnel expenses]
・Sep. 30: Terminated payment of ad-hoc special leave allowance of Cast Members and show performers
・Sep. 30: Terminated furlough of full-time employees
[Depreciation and amortization]
・Increase due to opening of Tokyo
・Decrease due to decline in attendance
[Personnel expenses]
・Received employment adjustment subsidy*2
・Jan. 8: Shortened Park operating hours; shortened store hours at or
l d t
ges in
t ・Increase due to opening of Tokyo
Disneyland Large-Scale Development area ・Resumed payment of ad-hoc special closed some stores leave allowance from Jan.
*1Although the ticket price revision was implemented on April 1, 2020, it only began to take effect on July 1, 2020, when Parks were reopened. *2Of the employment adjustment subsidy received due to the COVID-19 pandemic, the amount received [including the estimate amount to be
received] for reasons other than the temporary closure of our Parks was deducted from operating expenses.
20
20
Flexibly changed operations and promoted measures to reduce costs
Safety Measures
I-III. Overview
All areas
• Ensuring health management and physical distancing, implementing cleaning and sterilization
• Limiting attendance, shortening Park operating hours, and introducing Fixed Date and Time Passport
Time Passport
Attractions
• Closing part of indoor facilities and interactive facilities • Installing acrylic partitions between attraction seatsI t d i St db P d t t t [F S 23 i h ]
• Introducing Standby Pass and entry request system [From Sep. 23 in phases]
Entertainment
• Operating shows parades and character greetings while changing direction of 21
Operating shows, parades, and character greetings while changing direction of performance
M
h di
• Promoting the use of online Tokyo Disney Resort Shopping serviceMerchandise
Promoting the use of online Tokyo Disney Resort Shopping service• Recommending payment by credit card or other means of cashless payment • Installing acrylic barriers at cashier counters
• Providing crowd-level forecasts for major shops on Tokyo Disney Resort official website
Food and beverages
• Introducing two-dimensional barcodes for checking menus• Recommending payment by credit card or other means of cashless payment • Installing acrylic barriers at cashier counters
21
21
Operation that gives top priority to safety and peace of mind
State of Financing
I-III. Overview
Changes in capital resources*
1and liquidity
Changes in capital resources
1and liquidity
Rough plan of
Line of credit
Corporate bonds [unissued]
Cash and securities [include corporate bonds of ¥30 billion issued in
200
716
[¥ billion]g
capital allocation
Complementary
working capital for
use until recovery
736
680
Mar. 2015 and ¥100 billion issued in Sep. 2020]
Cash and securities [corporate bonds issued in Jan. 2019] Earthquake risk financing
100 100 100 200 200 200 200
431
535
Continued growth
investments
・ Tokyo Disney Resort Toy Story Hotel [approx. ¥31.5
use until recovery
22 50 50 50 50 50 231 135 216 236 180 billion]
・ Tokyo DisneySea Large-Scale Expansion Project [approx. ¥250 billion]
Working capital
Issuance of corporate bonds [¥100 billion] 150 150 150 150 150 50 50 50 50 50End of 3/20 End of 6/20 End of 9/20 End of 12/20 End of 3/21
Capital set aside
for earthquake
risks
Working capital
End of 3/20 End of 6/20 End of 9/20 End of 12/20 End of 3/21
*1 Include corporate bonds [unissued] and line of credit
*2 Total of cash and deposits and securities Amount registered on consolidated balance sheet*2 281 185 266 286 230 22 22
Secured necessary capital resources to acquire immediately available
working capital and funds for medium- and long-term growth
I-III. Overview
Outlook for the Fiscal Year Ending March 2022
In view of the application of the “priority measures to prevent the spread of disease” to Urayasu
Cit
Chib P
f
t
d th
t
l
i
t h
d it i diffi
lt t f
l t
City, Chiba Prefecture, and the opaque external environment ahead, it is difficult to formulate a
highly accurate financial forecast of results for FY3/22. We will therefore disclose our forecast
when circumstances change for the better.
Policy and Funding Status for FY3/22
y
g
Implement rigorous infection countermeasures and set limits on attendance to
ensure safety and peace of mind throughout the year
Continue discussing measures to increase net sales per Guest
Sales
Enhance cost efficiency in line with attendance level
Re-examine work volume and scrutinize non-essential/non-urgent costs
Cost
Capex
Project capital expenditure to be in the ¥130 billion range and depreciation and
amortization expenses to be in the ¥45 billion range
23
p
DP
Funding
p
g
The depreciation method, mainly for tangible assets of Tokyo Disneyland will be
changed from declining-balance to straight-line
Prepare capital resources* in order to secure working capital for use and capital for
growth investments
Dividend
Funding
growth investments
*Include line of credit [¥200 billion] and unissued corporate bonds [¥100 billion]
An annual dividend per share is not yet determined although policy of aiming steady
payout of cash dividends
Current Operation Status
Apr. 20-May 11: Daily attendance is limited to 5,000 for each Park, and Park operating hours are
shortened to from 9AM to 8PM
E h Di
H
l
i h li i d
b
f
ld
23
23
Each Disney Hotel operates with limited number of rooms sold
Ikspiari shortens operating hours
Disney Resort Line continues its operation
II. 2020 Medium-term Plan
1. Review of 2020 Medium-term Plan
St
th
b
i
f
d ti
t
d l
t
2020 Medium term Plan
Results
Policy:
Strengthen business foundation toward long-term
sustainable growth
2020 Medium-term Plan
Results
Up until FY3/20, the Intent to Return
rate, an indicator of Guests’
ti f ti
i t i d t hi h
To consistently provide a highly
satisfying Theme Park experience
satisfaction, was maintained at high
levels
As the Park environment changed
considerably in FY3/21, we took
25
Target
considerably in FY3/21, we took
rigorous measures against COVID-19,
giving top priority to safety and peace
of mind
To achieve record high Theme Park
attendance and operating cash flow* in
FY3/21
Withdrawal of quantitative target due to
changes in management environment
*Operating cash flow = Profit attributable to owners of parent + Depreciation and amortization
25
25
Up until the COVID-19 pandemic, we had been achieving growth in both attendance
and operating cash flow, with Guests’ satisfaction maintained at high level
II. 2020 Medium-term Plan
1. Review of 2020 Medium-term Plan
2020 Medium-term Plan
Results
2020 Medium term Plan
Results
Strengthen
Novelty
Tokyo Disney Resort 35th Anniversary event
Introduction of “Soaring: Fantastic Flight”
O i f T k Di l d L
Core
B
u
structural aspects
to provide “novelty”
and “comfort”
Made steady progress
up until the end of
FY3/20
Opening of Tokyo Disneyland Large-Scale Development area
Comfort
Renovation of service facilitiesStart offering official app and added newusiness Str
a
↓
In FY3/21, reviewed
action plan to give top
g pp functions
Strengthen
non-l
Create a
comfortable
Started hiring “Theme Park operations employees”
Expanded the scope of employees 26
ategy
priority to taking
measures against
COVID-19
structural aspects
[human resources
capacity] on a
long-term
t i bl b i
workplace
environment
y working at home Providing nursery facility within the company
Promote a
I h it lit
sustainable basis
tangible sense of
personal growth
Improve hospitality
Strengthen career support
Fin
a
P
o
Allocate operating cash flow to growthi t t d i t h t
Up until FY3/20, operating cash flow was allocated to growth investments.
I FY3/21 d li idit h d d it th h ll i b i
St
th
d b i
f
d ti
b
t d
ti
f
ti iti
ancial
olicy
investment and aim to enhance corporatevalue
In FY3/21, secured liquidity on hand despite the challenging business environment, and continued with our growth investments
26
26
Strengthened business foundation by steady execution of activities
based on core business strategy and continued with growth investments.
II. 2020 Medium-term Plan
2. Actions Taken in FY3/21
FY3/21
FY3/21
Temporary
closure
July
Aug.
Sep.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
M
l
d
d
t d
id t COVID 19
d
i
Introduced Standby
Pass system
Expansion of applicable
attractions
Measures planned and executed amid to COVID-19 pandemic
Advance ticket
reservation system
Introduced entry
request system
Started offering online shopping service on app
Introduced
two-dimensional barcodes for
checking menus
27
to all members of the public including those who
are not visiting Parks
Started holding lotteries for Park
tickets
tickets
Swiftly implemented digital initiatives as part of our infection countermeasures
by bringing forward some measures that had been under discussion and
applying the results of past actions
Measures implemented as part of our infection countermeasures
ill b
i d f
ibl
d
d
i
applying the results of past actions
27
27
will be examined for possible upgrades and expansions.
Transformation of business structure is required to prepare
Tokyo Disney Resort Toy Story Hotel
III. Growth Investments beyond FY3/22
Owner: Oriental Land Co Ltd Management
Form
Owner: Oriental Land Co., Ltd.
Management/Operations: Milial Resort Hotels Co., Ltd. [100% subsidiary of Oriental Land Co., Ltd.]
Start of
2 d h lf f FY3/22 [ h d l d] 29
Business 2nd half of FY3/22 [scheduled] Floor Space About 40,000㎡ [hotel building only]
Number of 595
Rooms [11 floors above ground, 1 basement]
Facilities
・Restaurant ・Disney shop
Flat and multistory parking lots etc
Tokyo Disney Resort Toy Story Hotel
FY 3/22, Approx.
FY 3/22, Approx. ¥¥31.5 billion
31.5 billion
・Flat and multistory parking lots, etc. Capital
Investment Approx. ¥31.5 billion
29
29
Category Moderate type
Note: This is not an exact representation of the development site.
Tokyo DisneySea Large-Scale Expansion Project
III. Growth Investments beyond FY3/22
Tokyo Disneyland
Tokyo DisneySea Large Tokyo DisneySea Large--Scale Scale E i P j t D l t Sit E i P j t D l t Sit
Tokyo DisneySea
Note: This is not an exact representation of the development site
Expansion Project Development Site Expansion Project Development Site
FY 3/24, Approx. ¥250 billion
30
Area
About 100,000m
2[about 140,000m
2including backstage area]
Opening
FY 3/24 [scheduled]
Note: This is not an exact representation of the development site
Themes of the
areas and the
number of
facilities
Frozen
1 attraction, 1 restaurant
Tangled
1 attraction, 1 restaurant
Peter Pan
2 attractions, 1 restaurant
ac
es
ete
a
a ac o s,
es au a
Effectiveness of
investment
Investment amount
Approx. ¥250 billion
Investment effect
・Boost-up effect on net sales by ¥50 billion annually
・Consolidated net sales are expected to reach the range
of mid ¥500 billion to the high ¥500 billion
30
30
Composed of three areas, four attractions, and a hotel
30©Disney
Disney Hotel Categories
III. Growth Investments beyond FY3/22
Tokyo Disneyland Hotel
31
Tokyo Disney
Celebration Hotel
Tokyo DisneySea
Hotel MiraCosta
New Disney Hotel located
inside the Park
Tokyo Disney Resort
Toy Story Hotel
inside the Park
[475 rooms, 2 restaurants, etc.] Note: Artist concept only
Toy Story Hotel
Note: Artist concept only
Disney Ambassador Hotel
Luxury Type
Deluxe Type
Value Type
Moderate Type
31
31
Provide more options for Guest demands
©Disney/Pixar
Policy for Long-term Growth
III. Growth Investments beyond FY3/22
<Tokyo Disneyland>The new plans will apply to all seven themed lands, including Fantasyland. An area-based development for each themed land is intended to leave a lasting impact on the park
Tokyo Disney Resort
<Tokyo DisneySea>
To achieve a significant breakthrough, the expansion of the existing site and utilization of new development will create an environment with a higher degree of Guest satisfaction from qualitative as well as quantitative standpoint
of Guest satisfaction from qualitative as well as quantitative standpoint <Hotels within Tokyo Disney Resort>
To add more value to Tokyo Disney Resort as a whole, improve the environment
32
as a resort, including making more guest rooms, and increase value of the stay
E t bli h t f O i t l L d I ti
Further boost the level of net sales with continued large-scale investment
New Business
・ Establishment of Oriental Land Innovations
・ Regardless of the establishment of new company, we will continue on the research on the business field expected to grow, and widely consider to contribute to persistent growth of the OLC group
・ Plans for the new business aimed at growing it into single business segmentPlans for the new business aimed at growing it into single business segment will be considered in ways that are not by specific timeframe
Broader investigation for further development
32
32
Formulate policy from a long-term perspective and realize plans
IV. For Long-term Sustainable Growth
For Long-term Sustainable Growth [e.g., ESG]
Strategy Roadmap
Address global environmental and social issues as
an integral part of our management and business
strategies to aim for more sustainable management
ESG project team launched
[Nov. 2020]
Contribute to achieving the SDGs34
2020 Medium-term
PreparationNext Medium-term
Apr. 2021
Apr. 2017
Plan
Plan
Apr. 2022 [tentative]
p period 34 34Establish strategies to contribute to a sustainable society and achieve profit
IV. For Long-term Sustainable Growth
For Long-term Sustainable Growth [e.g., ESG]
Recognition of Environmental Change
g
g
Issues recognized prior to the COVID-19 pandemic
Strategies so far Risks
[1] Continuously make large-scale investments to generate value to motivate
Park visits Surging development/construction costs
Park visits g g p
[2] Secure a large volume of Guests to sustain the apparatus industry Decrease in total population [3] Secure a sufficient number of employees to attend to the large volume of
Guests Decrease in working-age population
[4] Make concentrated investments in the Maihama area Climate change/natural disasters [4] Make concentrated investments in the Maihama area Climate change/natural disasters
Recognition gained through COVID-19 pandemic
・Value of happiness brought about by person-to-person interactions+
35
Future Direction of Businesses
Value of happiness brought about by person to person interactions
・Diversified perspectives on leisure activities resulting from altered awareness of the 3 Cs [Closed spaces; Crowded places; Close-contact settings]
Existing
businesses
Evolve business operations to offer options that more closely cater to Guest needs; Improve our capacity to address fluctuations in demand to enhance the added value of the Tokyo Disney Resort as a whole
E.g., Leverage innovation E.g., Enhance Guest engagement
New
businesses
Take on the challenge of establishing new businesses that help us resolve issues and enhance values in our core business, and provide us with growth opportunities
E.g., Help children gain
experience E.g., Labor saving; flexible staffing; manpower saving E.g., Measures against heat and cold; energy consumption
35
35
Consider addressing ESG issues as an integral part of management
and business strategies
IV. For Long-term Sustainable Growth
Environmental Materiality [Updates on Discussions]
E
Quantitative target/ Target SDG to
Materiality Direction of measures What we aim to be Indicator (KPI) Quantitative target/
Target status Target FY contribute to Meas u chang Contribute to achieving a decarbonized society Contribute to achieving a decarbonized society by reducing greenhouse gas
Amount of greenhouse gas 40% reduction from FY 3/19 level 2030 u res t o a d d re s s e and natural d a decarbonized society [Mitigate climate change]
reducing greenhouse gas emissions and mitigating climate change
greenhouse gas emissions
Net zero emissions 2050
Strengthen resilience What we aim to be s climate d isaste rs Strengthen resilience [Adaptation to climate change]
Identify risks posed by natural disasters and rising temperatures stemming from climate change and consider measures to strengthen the resilience of facilities and manuals
Ad t i ・Adopt resource-saving products/services and easily reusable/recyclable resources, engineering
36 Measu r circul a t Adopt resource-saving products/services and reduce waste
Adopt resource saving products/services and easily reusable/recyclable resources, engineering and design with the aim of contributing to achieving a circulation-type society
・While pursuing conventional recycling projects, focus on new solutions to help increase the recycling rate and achieve resource sustainability
Use sustainable resources
Give preference to resources that promote sustainability with the aim of contributing to resource sustainability re s to promote tion-ty pe soci e y
Make effective use of water resources
Strive to reduce water intake and promote wastewater recycling with the aim of contributing to water resource sustainability
Contribute to forming
・Strive to reduce the amount of chemical substances used and implement proper management thereof to alleviate environmental impact, thereby contributing to forming symbiotic relations with nature
e
ty Contribute to forming
symbiotic relations with nature
with nature
・Strive to reduce the amount of air pollutant emissions to alleviate environmental impact, thereby contributing to forming symbiotic relations with nature
・Strive to preserve biodiversity in the local communities in which we engage in business, thereby contributing to forming symbiotic relations with nature
36
36
36
Promptly strengthen measures to address environmental issues
IV. For Long-term Sustainable Growth
Social and Governance Materiality [Updates on Discussions]
S
G
Materiality
Direction of measures
F t HR ith t ti it
S
Society
Employees
Foster HR with spontaneous creativity Promote HR diversity
Provide a fulfilling workplace environment
Children Help children achieve their hopes and dreams
Diversity & Inclusion
Respond to changes in social and Guest needs based on employees’ diverse values
Implement systematic measures to respect human rights 37
Implement systematic measures to respect human rights
Supply chain management Promote sustainability and collaboration across supply chains
G
Materiality
Direction of measures
Governance
Fairness in business
management Fair decision-making
Stakeholder engagement Achieve relationships of trust and collaboration with stakeholders
based on open dialogues
37
37
To be determined based on stakeholder engagement and further discussions
based on open dialoguesUsing Digital Technology to Enjoy the Park
V. Appendix
Before visiting
Before visiting
• Purchase Park ticket
• Make restaurant booking if venue accepts reservations [reservations
can also be made on day of visit and at restaurant]
y
]
Tokyo Disney Resort App12 million downloads• Check digital Park map/waiting times/facility information
• Check products sold at Parks
• Online hotel check-in
12 million downloads achieved (as of Feb. 2021)
After entry
• Obtain Disney FASTPASS*
Online shopping [transactions can be made until 23:30 on day of visit]
39
• Online shopping [transactions can be made until 23:30 on day of visit]
• Show/parade-viewing lottery*
• View/purchase photos taken at Parks [“Disney Photo”]*
• Electronic money accepted
Digital Park map
Measures currently taken against COVID-19 pandemic
y
p
*Services currently suspended due to COVID-19 pandemic
©Disney
• Expanded shopping service via official app
• Introduced Standby Pass and Entry Request system
Tokyo Disney ResortShopping service39
39
Promote utilization of digital technology to enrich
Park experience of each Guest
Oriental Land Co Ltd
Oriental Land Co., Ltd.
Investor Relations Group, Finance/Accounting Department
URL: www.olc.co.jp/en
[Disclaimer]This document includes statements about Oriental Land’s plans, estimates, strategies and beliefs. The statements made that based on historical fact represent the assumptions and expectations of Oriental Land in light of the information available to it as of the date when this document was prepared and should be considered as forward-looking available to it as of the date when this document was prepared, and should be considered as forward looking. Oriental Land uses a variety of business measures to constantly strive to increase its net sales and management efficiency. However, Oriental Land recognizes that there are certain risks and uncertainties that should be considered which could cause actual performance results to differ from those discussed in the forward-looking statements.
Potential risks could include, but are not limited to, weather, general economic conditions, and consumer preferences.
Th f th i fi th t th f d l ki t t t i thi d t ill t b t
Therefore, there is no firm assurance that the forward-looking statements in this document will prove to be accurate. Theme park attendance figures have been rounded. Financial figures have been truncated.