January, 2020 Oriental Land Co., Ltd.
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January, 2020
January
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.
C t t
Contents
I. Business Outline
I-I Theme Park Business
I-I.
I-II. Hotel Business
I-III. Overview
II Progress of 2020 Medium-Term
II. Medium Term Plan
III. Large-Scale Investment Plans
IV. Policy for Long-Term Growth
Cautionary Statement
This document includes statements about Oriental Land’s plans, estimates, strategies and beliefs. The statements made
that are not 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 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.
Therefore, there is no firm assurance that the forward-looking statements in this document will prove to be accurate.
e e Park
Theme a a attendance
e da ce figures
gu es have
a e bee
been rounded.
ou ded Financial
a c a figures
gu es have
a e bee
been truncated.
u ca ed
All rights reserved.I. Business Outline
Corporate Profile
Corporate Data Stock Information
Tokyo
y Stock Exchange,
g
Established July 11, 1960 Stock Listing
First Section
Code No.
4661
Total Assets
¥1,051.4 billion Investment Unit 100 shares
[consolidated]
Shareholders’
Equity ¥803.2 billion Stock Price ¥14,380
[consolidated]
JCR : AA [Stable] Aggregate Market
Bond Ratings ¥5,229.8 billion
R&I : AA- [Stable] Price
[As of March 31, 2019] [[As of Januaryy 29,, 2020]]
Corporate Mission Business Domain
Our mission is to create happiness and contentment “We
We pursue businesses that fill your heart
by offering wonderful dreams with energy and happiness”
and moving experiences created with We strive to create new value in a high-value business
for enriching and nourishing people’s
people s hearts and
original, imaginative ideas appealing to abundant humanity and happiness
I. Business Outline
History and Business Description
History Tokyo Disney Resort
1960 Oriental Land Co., Ltd. [OLC] was established Disney Hotels 䞉Shops and Restaurants Monorail service
[under direct management] 䞉Cinema complex
complex, etc.
etc provided
p around
OLC and Chiba Prefecture concluded the resort
1962 the Urayasu District Land Reclamation
Agreement Disney
Ikspiari Ambassador
Hotel
Reclamation work began off the coast of
1964
Urayasu [completed in 1975]
OLC and Walt Disney Productions Tokyo
[currently, Disney Enterprises, Inc.] concluded Disneyland Tokyo DisneySea
1979
an agreement on the licensing, design, Hotel
Tokyo Disneyland Hotel MiraCosta
construction
t ti and d operation
ti off Tokyo
T k Disneyland
Di l d
1983 Tokyo Disneyland opened
Listed on the first section of the Tokyo
Tokyo DisneySea
1996
Stock Exchangeg
2000 Ikspiari and Disney Ambassador Hotel opened
Disney Resort Line, Tokyo DisneySea, and
2001
Tokyo DisneySea Hotel MiraCosta opened
Tokyo Disney Resort
2008 Tokyo Disneyland Hotel opened Official Hotels
Tokyo Bay
Milial Resort Hotels Co., Ltd. (MRH) acquired all
2013
stocks of Brighton Corporation Co., Ltd.
The only “Sea”-themed
The first Disney Theme
2016 Tokyo Disney Celebration Hotel opened Disney Theme Park
Park outside of the U.S.
in the world
Managing and operating a large scale theme resort offering versatile
entertainment facilities 5
I. Business Outline
1. Prime Locations 2. License Agreement with Disney
2046 at maximum (45 years since Tokyo
Vast Land Holdings DinseySea opened)
Period Note: When facilities open as planned,
Own approx. 2,000,000 m2 the agreement period can be extended
[approx. 500 acres] of land easily to 2076 at maximum
accessible from central Tokyo Activities Management and operation of Tokyo
Covered Disney Resort, etc.
Huge Market
Payment of royalties fees based on net
Consideration sales [yen basis]
Approx. 30 million of high income
households living within 50km [30 miles] Relationship No capital or personnel relationship
radius Only OLC operates Disney Theme Parks in Japan
3. Intangibles: Human Resources with
Ibaraki
Magnificent Hospitality
Saitama
ிʮ
Ҙᓶ Raise the level of Raise the level of
Tokyo
y
Guestt Satisfaction
G S ti f ti Employee
E l Satisfaction
S ti f ti
ᅕ߷ډ Chiba
Kanagawa
Diverse measures and education/training
programs
p g are implemented
p with as much focus on
employee satisfaction as on Guest satisfaction.
Establish stable earnings base by implementing structural/non-structural
strategies that capitalize on the advantageous location 6I. Business Outline
Unique competitive advantage Business model Value provided
New
Hotel investment
Business
Segment Increasing
ĸEnhanced appeal corporate value
(1) Prime Locations increases cash flow
“Creating
(2) License Agreement with
Disney Theme H i
Happiness” ”
(3) Intangibles: Human Park Enhance appeal by
Resources Segment making additional
investments on an
ongoing basis ĺ
Attract
Other more
Business G
Guests
t
Segment /Increase
sales per
Guest
Deliver more happiness by making tangible and intangible investments
to increase corporate value 7
I. Business Outline
Net sales and Operating Margin Operating Profit and Profit
Consolidated net sales [¥ billion] Consolidated operating profit [¥ billion]
Operating margin [Revised Consolidated profit attributable to owners of parent
525.6 Forecast] [¥ billion]
503.8
477.7 479.2 129.2
466.2 465.3
[Forecast]
479.2 110.6 113.1 [Revised
107.3 110.2 Forecast]
108.8
90.2
[Revised 82.3 [Forecast] [Revised
81.1
Forecast] 92.9 Forecast]
72.0 73.9 76.2
24.6% 21.6%
23.7% 23.1% 23.7% 23.0%
[Forecast]
[Forecast] 65.3
19.4%
3/15 3/16 3/17 3/18 3/19 3/20 [FY] 3/15 3/16 3/17 3/18 3/19 3/20 [FY]
Forecasts for the full year is revised upward
I. Business Outline
Breakdown by Segment and Content of Segments
Results for FY ended 3/19
Consolidated Consolidated
net sales: operating profit:
¥525 6 billion
¥525.6 ¥ 129.2
129 2 billion
Theme Park Tokyo Disneyland
Segment
g Tokyo DisneySea
Tokyo Disneyland Hotel
83.2% 83.1% Hotel Business Tokyo DisneySea Hotel MiraCosta
Disney Ambassador Hotel
Segment Tokyo Disney Celebration Hotel
and others
Other Business Ikspiari
Disney Resort Line
13.8% 14.9% Segment and others
3 0%
3.0% 2 0%
2.0%
More than 80% comes from the Theme Park Segment
I-I. Theme Park Business
Annual Theme Park Attendance
[million people]
Tokyo Disney Resort Tokyo Disney Resort Tokyo Disney Resort
%:year on year
25th Anniversary 30th Anniversary 35th Anniversary
Opening of Tokyo DisneySea Tokyo DisneySea Tokyo DisneySea
Tokyo DisneySea 5th Anniversary 10th Anniversary 15th Anniversary
32.56
Tokyo Disneyland Tokyo Disneyland 31.30 [+8.2%]
[+13.8%] 30.00 [Revised
15th Anniversary 20th Anniversary [(0.6)%] Forecast]
31.50
27.22 [(3.2)%]
[( ) ]
25.82 [+7.1%] 25.35
Opening of 25.47
[(0.1)%]
[+2.6%] [+4.2%]
Tokyo Disneyland
22.05
[+27.4%]
17.46
[+4.6%]
9.93
3/84 3/99 3/02 3/04 3/07 3/09 3/12 3/14 3/17 3/19 3/20 [FY]
Note: Attendance figures for FY 3/12 and 3/17 decreased from the previous fiscal years respectively because of the influence of earthquakes
Theme Park attendance has increased driven by each anniversary event,
exceeding 30 million on a stable basis
I-I. Theme Park Business
Breakdown of Guests by Region Number and Ratio of Overseas Guests
Travelers visiting
g Japan
p [[million p
people]
p ]
Ratio of overseas Guests coming to our parks
Overseas among overseas visitors to Japan
9.6% ᵑᵊᵓᵎᵎ ᵑᵎᵌᵎᵃ
31.63
ᵑᵊᵎᵎᵎ
29.77
ᵐᵓᵌᵎᵃ
Other
ᵐᵊᵓᵎᵎ
24.82
areas in Annual Attendance ᵐᵊᵎᵎᵎ
ᵐᵎᵌᵎᵃ
Japan 32.56 million people
29.6% 21.36
[FYendedMarch2019]
ᵏᵊᵓᵎᵎ
14 67
14.67
ᵏᵓᵌᵎᵃ
10.98
Metropolitan
ᵏᵊᵎᵎᵎ
9.9% 9.9%
10.3%
Area 11.1% 10.7%
ᵏᵎᵌᵎᵃ
60.8%
ᵓᵎᵎ
8.5%
ᵎ ᵓᵌᵎᵃ
3/14 3/1
3/15 3/16 3/1
3/17 3/18 3/19 [FY]
Metropolitan •Largest
g number of Guests •Increases in tandem with the
Area accounting for approx. 60% growing number of tourists
Overseas visiting Japan
•Mainly Chubu and Koshinetsu regions •More Guests can be attracted
Others
•Tends
T d tot grow in
i anniversary
i years f
from this
thi category
t
Stable Theme Park attendance expected to continue
based on region-specific Guest attraction strategies I-I. Theme Park Business
Net sales per Guest and Breakdown
[¥] [Revised
Forecast]
11,614 11,815
11,594 11,630
11,257
10,955 [Revised
5,264
, 5,339
5,352
Ticket •Ticket receipts per Guest
5 007
5,007 Forecast]
4,660 5,320 increase over two years since
Receipts ticket price revision
Ticket
Receipts
•Tend to increase in anniversary
event years
[Revised
4,043 3,964 4,074 3,989
4,122
Forecast] Merchandise •Development of contents, such
3,920
as Duffy & Friends series, lead
Merchandise
to increase in earnings
[Revised
Food and •Stable net sales maintained
2 252
2,252 2 286
2,286 2 256
2,256 2 286
2,286 2 341
2,341 Forecast]
Food and
2,390 regardless of whether or not
Beverages Beverages events are held
[FY] 3/15 3/16 3/17 3/18 3/19 3/20
Achieved increase in net sales per Guest based on meticulous pricing strategy
I-I. Theme Park Business
Increase in Theme Park value
Ticket price revision policy: Comprehensively consider g
Price sensitivity survey result
Note: Take external environment including tax hike into consideration
8,200
Annual Theme Park attendance [million people]
7,400 7,500
Ticket price [¥]
6,900
6,200 6,400
[Revised
5,800
5,500 Forecast]
31.30 31.38 30.19 30.00 30.10 32.56 ᵑ‣†‧•
27.22 25.82 27.50
24.82 25.47 25.02 24.77 25.82 25.42 25.37 25.35
22.05
3/02 3/07 3/12 3/15 3/16 3/17 3/20 3/21 [FY]
Ticket price revision in past years
Theme Park experience value was increased by opening of new attractions
April 1, 2016 ¥7,400
and shows and enhancing services and environment
October 1, 2019 ¥7,500 Revision along with consumption tax reform [consumption tax: 8%э10%]
The Park experience value increased as a result of opening new facilities,
April 1, 2020 ¥8,200 redesigning entertainment programs, and using IT to improve the
convenience of Guests
Theme Park attendance remain at a high level even after ticket prices were
raised due to pricing strategy based on experience value I-II. Hotel Business
Disney Hotels
Disney Ambassador Tokyo DisneySea Hotel Tokyo Disney
Tokyo Disneyland Hotel
Hotel MiraCosta Celebration Hotel
Deluxe-type Deluxe-type Deluxe-type Value-type
504 rooms 502 rooms 706 rooms 702 rooms
Ὁ Own
O four
f Di
Disney H t l ((about
Hotels b t 2,400
2 400 rooms)) which
hi h make
k nett sales
l off ¥63.3
¥63 3 billi
billion as ttotal
t l [FY 3/19]
Ὁ New Disney Hotel based on Toy Story film series is scheduled to launch in FY 3/22
Ὁ New Disney Hotel located inside Tokyo DisneySea is scheduled to launch in FY 3/24
Other Hotels
Ὁ Own Brighton-brand hotels (about 600 rooms) which make net sales of ¥9 billion as total [FY 3/19]
Ὁ Hyatt Regency Seragaki Island Okinawa opened in August, 2018 (joint project of three companies)
Strengthen Hotel business segment with the growth and expansion of
Tokyo Disney Resort I-II. Hotel Business
Net sales and operating margin for Hotel Business
Net sales [¥ million]
Operating margin
72,427 [Revised
Opening of Tokyo Forecast]
Disney Celebration Hotel 69 530
69,530
66,144 66,447
63,173
61 066
61,066 [Revised
Forecast]
26.5%
24.5% 24.2%
21.5% 21.8% 22.1%
3/15 3/16 3/17 3/18 3/19 3/20 [FY]
Both net sales and operating profit are projected to decrease owing to
rebound from Tokyo Disney Resort 35th Anniversary events 17I-III. Overview
Operating profit and operating margin
Single park era Burdened with high depreciation and amortization expenses Operating margin improves
Operating margin: approx. 20% /increase in costs Operating margin: approx. 10% Operating margin: approx. 20%
[[Revised
129 2 Forecast]
129.2
Unconsolidated operating profit [¥ billion] 108.8
114.4
Consolidated operating profit [¥ billion] 110.6 107.3 113.1 110.2 [Forecast]
Operating margin [%] 92.9
6 [Revised
24.6
24
81.4 24.2
24 2 23.7
23.1 23.7 23.0 Forecast]
21.6
Opening of Tokyo DisneySea 66.9
18.4
20.6
14.6 53.6 [Forecast]
18.6 19.4
34.5 11.1 12.0 38.0 38.7
34.5 30.6 34.1 40.0 41.9 15.1
31.1
25.4 11.5 11.3
33.6 10.4 9.2 9.9 9.1 10.3
22.1 11.5
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 [FY]
[Revised
Operating
cash flow
flow*
26.7 22.2 23.1 50.6 66.8 64.5 61.7 59.0 59.2 58.3 67.8 72.1 62.8 71.9 87.6 107.5 106.7 109.9 120.6 118.5 128.5 Forecast]
115 5
115.5
Depreciation [Revised
and 11.6 12.4 18.4 37.9 47.9 45.9 44.5 43.3 42.9 43.6 49.7 46.6 39.9 39.8 36.1 36.9 34.6 35.9 38.2 37.3 38.2 Forecast]
amortization 39.2
[Revised
Capital Forecast]
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
157.4
Note: The results before 3/99 are unconsolidated *Operating cash flow=Profit attributable to owners of parent + Depreciation and amortization
Operating margin is expected to rise to a higher level after pulling through
the phase of high burden of depreciation and amortization expenses 19
I-III. Overview
Expansion in Maihama Area Leveling of Quarterly Results
Q
Quarterly
l consolidated
lid d operating
i profit
fi
[¥ billion]
ᵲᶍᶉᶗᶍᴾᵢᶇᶑᶌᶃᶗᶊᵿᶌᶂ
1Q 2Q 3Q 4Q
ᵲᶍᶉᶗᶍᴾᵢᶇᶑᶌᶃᶗᵱᶃᵿ 44.8
ᵲᶍᶉᶗᶍᴾᵢᶇᶑᶌᶃᶗᶊᵿᶌᶂᴾ
ᵥᶓᶃᶑᶒᴾᵮᵿᶐᶉᶇᶌᶅᴾᵱᶒᶐᶓᶁᶒᶓᶐᶃ 38.8
ᵆᵬᶃᶕᴾᵤᵿᶁᶇᶊᶇᶒᶗᵇ ᵱᶍᵿᶐᶇᶌᶅᵘᴾᵤᵿᶌᶒᵿᶑᶒᶇᶁᴾ ᵤᶊᶇᶅᶆᶒ 37.2
ᵲᶍᶉᶗᶍᴾᵢᶇᶑᶌᶃᶗᶊᵿᶌᶂᴾ
ᵪᵿᶐᶅᶃᵋᵱᶁᵿᶊᶃᴾ 32.0
ᵰᶃᶌᶍᶔᵿᶒᶇᶍᶌ 30 4
30.4 31 0
31.0
29.8
ᵲᶍᶉᶗᶍᴾᵢᶇᶑᶌᶃᶗᵱᶃᵿᴾ 25.0
ᵪᵿᶐᶅᶃᵋᵱᶁᵿᶊᶃᴾ ᵣᶖᶎᵿᶌᶑᶇᶍᶌᴾᵮᶐᶍᶈᶃᶁᶒ 22.7 22.5
ᵢᶃᶔᶃᶊᶍᶎᶋᶃᶌᶒᴾᵱᶇᶒᶃ 21.0
16.8
ᵬᶃᶕᴾᵢᶇᶑᶌᶃᶗᴾᵦᶍᶒᶃᶊ
ᵧᶌᶑᶎᶇᶐᶃᶂᴾᶀᶗᴾᵲᶍᶗᴾᵱᶒᶍᶐᶗ ᵤᶇᶊᶋᴾᵱᶃᶐᶇᶃᶑ
ᵢᶃᶔᶃᶊᶍᶎᶋᶃᶌᶒᴾᵱᶇᶒᶃ
Ḥᴾᵲᶆᶇᶑᴾᶇᶑᴾᶌᶍᶒᴾᵿᶌᴾᶃᶖᵿᶁᶒᴾᶐᶃᶎᶐᶃᶑᶃᶌᶒᵿᶒᶇᶍᶌᴾᶍᶄᴾᶒᶆᶃᴾᶂᶃᶔᶃᶊᶍᶎᶋᶃᶌᶒᴾᶑᶇᶒᶃᵌ
3/17 3/18 3/19 [FY]
• Own land that can be used for commercial
purposes in Maihama, including parking space Ὁ Promotion of leveling throughout the year
and head office area
Allocate unused land for commercial purposes and level out
Theme Park attendance to achieve growth I-III. Overview
Year-on-year comparison
Consolidated Nine Months Nine Months
Ended 12/18 Ended 12/19 Change Change
[¥ billion] [%] Net sales
Statement of Income [¥ billion] [¥ billion]
On the back of successful special events and the
strong performance of Soaring: Fantastic Flight
Flight, a
Net Sales 399.6 390.2 (9.4) (2.4) new attraction, Theme Park attendance was
sustained at roughly the same level as the previous
Theme Park
Segment
332.8 324.1 (8.6) (2.6) fiscal year, when the Tokyo Disney Resort 35th
anniversary events were rolled out. However, net
Hotel
H t lBBusiness
i sales decreased due to a slight year-on-year fall in
Segment
55.1 53.5 (1.6) (2.9)
net sales per Guest for the Theme Park Segment.
Other Business Operating profit
Segment
11.7 12.5 0.8 7.3
Operating profit decreased owing to an increase in
personnell expenses iin addition
dditi tto a d
decline
li iin nett
Operating Profit 106.7 101.0 (5.7) (5.3) sales for the Theme Park Segment.
Theme Park Comparison with the revised forecasts
Segment
89.3 83.5 (5.8) (6.5)
Net sales
Hotel Business
15.0 14.6 (0.3) (2.6) Although net sales per Guest were roughly as
Segment
projected in October 2019, net sales exceeded the
Other Business projection owing to higher-than-expected Theme Park
Segment
g
2.2 2.7 0.4 21.5 attendance.
Operating profit
Ordinary Profit 107.3 102.3 (4.9) (4.6)
Operating profit surpassed the projection announced
in October 2019 as net sales were higher than the
Profit Attributable to
74.3 70.9 ((3.3)) ((4.5)) projected
p j figure
g and miscellaneous costs were
O ners of Parent
Owners deferred in the Theme Park Segment.
Operating profit decreased owing to a decline in net sales and
an increase in personnel expenses
I-III. Overview
Consolidated Forecast for Revised Forecast Change Change
FY Ending 3/20 for FY Ending 3/20 [¥ billion] [%]
Statements of Income [¥ billion] [¥ billion]
Net Sales 479.2 503.8 24.6 5.1
Theme Park Segment 397.5 417.4 19.8 5.0
Hotel Business Segment 65.6 69.5 3.8 5.9
Other Business Segment 16 0
16.0 16 9
16.9 08
0.8 55
5.5
Operating Profit 92.9 108.8 15.9 17.2
Theme Park Segment 75.9 89.0 13.1 17.3
Hotel Business Segment 14.6 16.8 2.1 14.9
Other Business Segment 2.1 2.7 0.5 26.5
Ordinary Profit 93.8 109.9 16.0 17.1
Profit Attributable to Owners of Parent 65.3 76.2 10.9 16.8
Attendance [million people] 30.00 31.50 1.50 5.0
N t Sales
Net S l per Guest
G t [¥] 11 640
11,640 11 630
11,630 (10) (0 1)
(0.1)
Ticket Receipts 5,310 5,320 10 0.2
Merchandise 4,000 3,920 (80) (2.0)
Food and Beverages 2,330 2,390 60 2.6
Forecasts for the full year is revised upward
II. Progress of 2020 Medium-Term Plan
Strengthen business foundation toward long-term sustainable growth
Targets
Ὁ To consistently provide a highly satisfying Theme Park experience
Ὁ To achieve record high Theme Park attendance and operating cash flow in FY3/21
Strategies
• Strengthen structural aspects to provide “novelty” and “comfort”
Core Business
1 • Strengthen non-structural aspects (human resources capacity)
Strategy on a long-term
g sustainable basis
• Allocate operating cash flow to growth investment and aim to
2 Financial Policy enhance
e a ce co
corporate
po ate value
a ue
Note: Operating cash flow = Profit attributable to owners of parent + Depreciation and amortization expenses
24II. Progress of 2020 Medium-Term Plan
Background
External environment Internal environment
• Declining birth rate and aging population
• Increase in inbound tourists • Increasing Theme Park attendance at a
f t th
faster-than-expected
t d pace
• Reduction in labor force
Strategies
Strengthen structural aspects Strengthen non-structural aspects
(human resources capacity)
“novelty”
novelty “comfort”
comfort on a long-term sustainable basis
Enhance satisfaction and capacity
to attract Guests on the basis of strategies
25
II. Progress of 2020 Medium-Term Plan
Theme Park attendance and operating cash flow
park attendance [million people]
Theme Park Operating cash flow [¥ billion]
33.00 140.0
128.5
120.6
130.0
32.00
118.5
120.0
31.00 110.0
100.0
30.00
32.56 90.0
29.00 80.0
30.00 30.10 70.0
28.00
Period covered by 2020 Medium-Term Plan 60.0
27.00 50.0
2016 2017 2018 [FY]
Note: Operating cash flow = Profit attributable to owners of parent + Depreciation and amortization expenses
Core business strategies
• Strengthen “novelty” and “comfort” by introducing new products
Strengthen structural
• Utilize digital technology to improve convenience of Guest using official apps, etc.
aspects
• Strengthen acceptance mechanism for overseas Guests, and marketing
Strengthen non-structural
• Reached the highest number of Cast Members; will continue to strengthen
aspects (human
hospitality skills
resources capacity)
26II. Progress of 2020 Medium-Term Plan
Measures introduced in FY2018
“Novelty” • Added characters featured in Disney films
“it’s a small world”
“Comfort” • Expanded indoor queuing spaces
Tokyo Disney
• Development
p of new daytime
y p
parade ”Dreamingg Up!”
p
R
Resortt 35th “N
“Novelty”
lt ”
• New challenges such as “Celebration Street”
Anniversary events
Produce Dining • Refurbished restaurants to enhance dining
“Comfort”
opportunities environment
Steady progress made toward achieving highly satisfying Park experience
27
II. Progress of 2020 Medium-Term Plan
Utilization of Digital Technology
• Released “Tokyo Disney Resort App” as an official app for smartphones [Jul. 2018]
• Started electronic payment service [Nov. 2018]
• Started offering Disney FASTPASS tickets through Tokyo Disney Resort App [Jul. 2019]
Digital Guide Map Tokyo Disney Resort Shopping Disney FASTPASS tickets
A
Apps also
l iinclude
l d ffunctions
ti off P
Park
k titicket
k t purchasing,
h i show
h llotteries,
tt i restaurant
t t reservation,
ti etc.
t
Continue enhancing convenience for Guests
©Disney by leveraging Digital Technology 28II. Progress of 2020 Medium-Term Plan
Overseas Guests
Number of Inbound Travelers and
Ratio of Guests among the Travelers N b /R ti off O
Number/Ratio Overseas Guests
G t
Number of overseas Guests [million people]
Travelers visiting Japan [million people]
Ratio of overseas Guests
Ratio of overseas Guests coming to our parks 3.13
among overseas visitors to Japan 2.95
31.63
29.77
2.55
24.82
21.36
1.81
1.57
1.22 9.8% 9.6%
14.67
8.5%
6.0%
10.98 5.0%
10.3% 3.9%
11.1% 10.7% 8.5% 9.9% 9.9%
2013 2014 2015 2016 2017 ί࠰ࡇὸ
2018 [FY] 2013 2014 2015 2016 2017 2018 [FY]
Source: Prepared by the OLC Group based on the materials created by Japan National Tourist Organization (JNTO)
Acceptance
A t • IImproved
d Cast
C tM Members’
b ’ communication
i ti ttools
l and
dPPark
k iinformation
f ti ttools
l
mechanism • Introduced new training programs to promote understanding of foreign culture
• Implemented marketing activities tailored to each country
Marketing
g
• Enhance
E h sales
l channel
h l
Strengthen acceptance mechanism and marketing
29
II. Progress of 2020 Medium-Term Plan
Strengthen both hospitality skills and operational efficiency by creating a comfortable workplace
environment and implementing measures to encourage Cast Members to feel a
tangible sense of personal growth
Rectify uneven • Changed recruitment marketing method
distribution of • Change job-specific wages and shift allowances
workforce among • Introduced housing assistance program for new Cast Members
Create
C t a job types and time residing in remote areas
comfortable slots • Enforced recruitment system
workplace
environment • Addressed diversified work styles by using a new schedule
Addressing
management system
transformations in
• New Employment Category to be Introduced called
workstyles
“Theme Park operations employee”
• E
Executed
t d a new service
i ttraining
i i program ffor allll employees
l
Improvement of • Harnessed Tokyo Disney Resort 35th anniversary events as an
hospitality opportunity to improve Cast Members’ workplace environment with
Promote a the aim of enhancing their hospitality skills
tangiblesenseof
personal growth
Strengthen career • Opened “OLC Career College” to support Cast Members’ career
support development; Expanded its program offerings
With a record high number of Cast Members, we aim at further enhancing hospitality
Note: Red sentence represent the measurement which progressed in FY2018 30II. Progress of 2020 Medium-Term Plan
Major new products
“Nemo & Friends SeaRider”
Opened on May 12, 2017 [Investment amount Approx. ¥5.0 billion]
“it’s a small world”
Opened on April 15, 2018
New daytime parade “Dreaming Up!”
Started on April 15, 2018 [Investment amount Approx. ¥2.4 billion]
New nighttime spectacular
“Celebrate! Tokyo
y Disneyland”
y
Started from July 10, 2018 - April 26, 2019
“Soaring: Fantastic Flight”
Opened on July 23, 2019
[Investment amount Approx. ¥18.0 billion]
New at Tokyo
Disneyland Tokyo Disneyland Large-scale investment
“Enchanted Tale of Beauty and the Beast”
New at Tokyo “Fantasyland Forest Theatre”
DisneySea “Th Happy
“The H Rid
Ride with
ith B
Baymax””
“Minnie’s Style Studio”, etc.
Scheduled to open on April 15, 2020
Tokyo Disney Resort [Investment amount Approx. ¥75.0 billion]
35th anniversary
Introduce products to strengthen “novelty” and “comfort”
Note: Plans announced as of January 29, 2020 31
II. Progress of 2020 Medium-Term Plan
Large scale investment projects
Time of introduction/
Theme Park Projects I
Investment
t t value
l
July 23, 2019
Tokyo DisneySea Major attraction “Soaring: Fantastic Flight”
Approx. ¥18.0 billion
• Introduce Soarin
Soarin’,, a popular attraction at Disney Theme Parks
“N
“Novelty”
lt ”
abroad, adding scenes exclusive to Tokyo DisneySea
Effect
• Allow more Guests to experience attractions
“Comfort”
• Balance out Guests
Guests’ retention time within the Park
First large scale investment project opened
©Disney 32II. Progress of 2020 Medium-Term Plan
Improve service facilities
Tokyo Disneyland Main Entrance
• Scheduled to open in Apr. 2020 [west side opened in May, 2019]
• Latest face authentication system for Annual Passport holders
• Gate style replacement for more smooth entering
• Ticket vending machines offered in several languages
Multi-story parking lot
• Started operating in Jul. 2019
• Increased parking space near Tokyo Disneyland Main Entrance
• Improved Guest guidance efficiency
Renovate large service facilities to enhance Guest “comfort”
©Disney 33
II. Progress of 2020 Medium-Term Plan
Large scale investment projects
Time of introduction/
Theme Park Projects
Investment value
• Major Attraction “Enchanted Tale of Beauty and the Beast” April 15, 2020
• Indoor theater “Fantasyland Forest Theatre”
Tokyo Disneyland • Attraction “The
The Happy Ride with Baymax”
Baymax
• Attraction “Minnie’s Style Studio”, etc. ¥75.0 billion level
• Beauty and the Beast and other attractions unique to Japan
“Novelty”
• First indoor theater at Tokyo Disneyland
Effect
• Allow more Guests to experience attractions
“Comfort”
• Introduce an all-weather-type
all weather type theater and an indoor restaurant
Large-scale development launched as planned
with steady progress made toward opening
©Disney Note: These concept images are subject to change 34II. Progress of 2020 Medium-Term Plan
Goal for Medium-Term Plan
Th
Theme Park
P k attendance
tt d [million
[ illi people]
l ] O
Operating
ti cash
h flow
fl [¥ billion]
billi ]
34.00
Record high 140.0
128.5
130.0
33.00
118.5 115.5 120.0
32.00
110.0
31.00
100.0
90.0
30.00
32 56
32.56
31.50
80.0
29.00
30.10 70.0
28.00
60.0
27.00 50.0
2017 2018 2019 2020 [FY]
2017[Actual results]
[Actual Result] 2018[Actual results]
[Actual Result] 2019[Forecast]
[Revised Forecast] 2020
Note: Operating cash flow = Profit attributable to owners of parent + Depreciation and amortization expenses
Aim for record high Theme Park attendance and
operating cash flow at FY ending March 2021 35
II. Progress of 2020 Medium-Term Plan
Allocate operating cash flow to growth investment
Policy: with the aim of enhancing corporate value
Cash dividends [Forecast]
42 44
Annual cash dividends per share 37.5 40
35 35
30 30
Annual cash dividends [yen] 25 25 25
15 17.5
13.75 [Policy]
Aim at steady payout of cash dividends
[FY]
Note: Dividend amounts up to 3/15 are evaluated retrospectively for descriptive purposes
Share Repurchase
Scheduled to repurchase shares by tender offer
Number of Shares to Percentage of Shares Issued and Total Value of Shares to be
Tender Offer Period
be Repurchased Outstanding Repurchased
1,500,100 shares 0.41% ¥20,746,383,000
From January 31, 2020 to March 2, 2020
(Maximum) (rounded to the third decimal place) (Maximum)
ROE
ROE for FY ending March 2020 is expected to be 9.3%
Enhance shareholder returns 36III. Large-Scale Investment Plans
Notes: 1) The new themed port will be connected to other areas of the Park
through a pathway between Arabian Coast and Lost River Delta
2) The image above represents the current concept and is subject to change
Consists of three areas, four attractions and a hotel
III. Large-Scale Investment Plans
Location Guest parking area diverted to area used to expand Tokyo DisneySea
Area About 100,000 m2 [about 140,000 m2 including backstage area]
FY 3/24 [scheduled]
Opening Note : Due to extension of the term for determining specifications in some facilities,
facilities scheduled time of
introduction has been changed from FY 3/23 to FY 3/24
Theme Magical springs that lead to a world of Disney fantasy
Themes of the
Frozen Tangled Peter pan
three areas
Number of 1 attraction 1 attraction 2 attractions
facilities 1 restaurant 1 restaurant 1 restaurant
Concept
images
g
©Disney Note: This information is subject to change
III. Large-Scale Investment Plans
Through newly created “experience value,”
Large-Scale Investment effect: net sales
Expansion Project Boost-up
Boost up effect on net sales by ¥50 billion
annually
Investment Amount Consolidated net sales
Expected to reach the range of
About ¥250 billion
mid-¥500 billion to the high-¥500 billion
Ongoing investment will be continued toward further growth
III. Large-Scale Investment Plans
Tokyo Disneyland
Tokyo DisneySea
Tokyo Disneyland
Large-Scale Renovation
April 15 2020, Approx. ¥75 billion Soaring: Fantastic Flight
July 23 2019, Approx. ¥18
billion
Tokyo DisneySea Large-
Large-Scale Expansion
Project Development Site
FY 3/24, Approx. ¥250 billion
New Disney Hotel Inspired by
Toy Story Film Series Development Site
FY 3/22, Approx. ¥31.5 billion 1RWH 7KLVLVQRWDQH[DFWUHSUHVHQWDWLRQRIWKHGHYHORSPHQWVLWH
S S
The investment amount of each year after FY 3/21 will be
around 100 billion to 150 billion
©Disney/Pixar 41
IV. Policy for Long-Term Growth
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
To achieve a significant breakthrough, the expansion of the existing site
Tokyo Disney
andd utilization
tili ti off new d
development
l t will
ill create
t an environment
i t with
ith a
Resort higher degree of Guest satisfaction from qualitative as well as
quantitative standpoint
To add more value to Tokyo Disney Resort as a whole, improve the
environment as a resort, including making more guest rooms, and
increase value of the stay
y
Further boost the level of net sales with continued large-scale investment
Plans for the new business aimed at g
growingg it into single
g business
New
Ne Business
B siness
segment will be considered in ways that are not by specific timeframe
Broader investigation for further development
Formulate policy from a long-term perspective and realize plans
by taking the internal/external environment into consideration
Ｏｒｉｅｎｔａｌ Ｌａｎｄ Ｃｏ., Ｌｔｄ.
Investor Relations Group, Finance/Accounting Department
www.olc.co.jp/en
Cautionary Statement：
This document includes statements about Oriental Land’s plans, estimates, strategies and beliefs. The statements made that
are not 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 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.
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.
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