October 30, 2017
Oriental Land Co., Ltd.

Tomoyuki Shimoda
Director of Finance/Accounting Department

Financial Results

Consolidated
Statement of Income

Results for the 1st
Half Ended 9/16[¥ billion]

Results for the 1st
Half Ended 9/17[¥ billion]

227.5

232.5

5.0

2.2%

Theme Park Segment

187.6

191.9

4.3

2.3%

Hotel Business Segment

31.3

32.0

0.6

2.2%

Other Business Segment

8.5

8.6

0.0

0.6%

53.2

56.1

2.8

5.4%

Theme Park Segment

45.7

47.1

1.4

3.1%

Hotel Business Segment

6.1

7.6

1.4

23.2%

Other Business Segment

12
1.2

12
1.2

(0 0)
(0.0)

(0 4)%(0.4)%

Ordinary Income

54.3

57.1

2.7

5.1%

Profit attributable to
Owners of Parent

38.1

42.4

4.3

11.5%

Net Sales

Operating Income

Change[¥ billion]

Change[%]Net Sales and all levels of income/profit increased

3

Financial Results

Results for the 1st
Half Ended 9/16

Results for the 1st
Half Ended 9/17

Net
N t Sales
S l [¥ billion]

187.6
187 6

191.9
191 9

4.3
43

2.3%
2 3%

Theme Park Attendance[million people]

14.33

14.77

0.45

3.1%

Net Sales per Guest [¥]11 514
11,51411 473
11,473(41)(0 4)%(0.4)%

Ticket Receipts

5,156

5,234

78

1.5%

Merchandise

4,071

3,958

(113)

(2.8)%

Food and Beverages

2,288

2,281

(7)

(0.3)%

Theme Park Segment

Theme Park Attendance

ChangeChange[%]Theme Park Attendance(1st Half)ίίmillion p
peopleὸp ὸ• Increase owing to the strong performance of a
new attraction "Nemo & Friends SeaRider," etc

Net Sales per Guest

 
  

• Roughly on a par with results for the 1st Half
Ended 9/16












Net sales increased due to rise in number of theme park attendance4

Financial Results

Results for the 1st
Half Ended 9/16[¥ billion]

Results for the 1st
Half Ended 9/17[¥ billion]

N t Sales
Net
S l

187.6
187 6

191 9
191.9

4.3
43

2.3ή
2 3ή

Operating Income

45.7

47.1

1.4

3.1ή

Theme Park Segment

Change[¥ billion]

Change[%]Increase in operating incomeὉ Increase in net sales
Ὁ Decrease in merchandise and food/beverages
g sales cost ratio+¥0.9 billion

Ὁ Increase in personnel expenses¥(1.7 billion)- Increase in various allowances for part time employeesὉ Increase in miscellaneous costs¥(1 3 billion)¥(1.3- Increase in research and development expenses¥(1.0 billion)- Increase in costs related to new special events¥(0.4 billion) ,etc.

*Depreciation and amortization expenses were on a par withthe previous year

Operating income rose mainly due to the increase of net sales,
although personnel expenses and miscellaneous costs increased

5

Financial Results

Hotel Business
Segment

Results for the 1st
Half Ended 9/16[¥ billion]

Results for the 1st
Half Ended 9/17[¥ billion]

Change[¥ billion]

Change[%]Net
N t Sales
S l

31.3
31 3

32.0
32 0

0.6
06

2.2ή
2 2ή

Operating Income

6.1

7.6

1.4

23.2ή

ὉIncrease in net sales due to openingpg of Tokyoy Disneyy Celebration HotelTokyo Disneyland HotelTokyo DisneySea Hotel MiraCosta

Disney Ambassador Hotel

9/16

9/17

9/16

9/17

9/16

9/17

Occupancy rates

About95%

About95%

96-99%

96-99%

About90%

About85%

Average charge
per room

About¥60,000

About¥60,000

About¥65,000

About¥65,000

About¥50,000

About¥50,000

Both net sales and operating income grew
due to increase in net sales and decrease in miscellaneous costs
Results for the 1st
Half Ended 9/16[¥ billion]

Results for the 1st
Half Ended 9/17[¥ billion]

Net Sales

8.5

8.6

0.0

0.6ή

Operating Income

1.2

1.2

(0.0)

(0.4)ή

Other Business
Segment

ChangeCh[¥ billion]

ChangeCh[%]

Roughly on a par with the results for the 1st Half Ended 9/16

6

Financial Results

Initial Forecast for
1st Half Ended 9/17[¥ billion]

Results for the 1st
Half Ended 9/17[¥ billion]

226.9

232.5

5.5

2.5ή

Theme Park Segment

186.2

191.9

5.7

3.1ή

Hotel Business Segment

32.2

32.0

(0.2)

(0.8)ή

Other Business Segment

8.4

8.6

0.1

1.3ή

48.2

56.1

7.8

16.2ή

Theme Park Segment

40.0

47.1

7.1

17.8ή

Hotel Business Segment

7.3

7.6

0.2

3.4ή

Other Business Segment

0.8

1.2

0.4

48.5ή

Ordinary Income

49.4

57.1

7.7

15.6ή

Profit attributable to
OwnersOe s ofo Parent
ae

34.4

42.4

7.9

23.2ή

Consolidated
Statement of Income
Net Sales

Operating Income

Change[¥ billion]

Change[%]Net sales and all levels of income/profit increased

7

Financial Results

Theme Park Segment

Initial Forecast for
1st Half Ended 9/17[¥ billion]

Results for the 1st
Half Ended 9/17[¥ billion]

Change[¥ billion]

Change[%]Net
N t Sales
S l

186.2
186 2

191.9
191 9

57
5.7

3.1ή
3 1ή

Operating Income

40.0

47.1

7.1

17.8ή

Increase in both net sales and operating incomeὉ Increase in net sales- Increase in attendanceὉ Decrease in merchandise and food/beverage cost
Ὁ Decrease in miscellaneous costs- Postponement of costs to the 2nd half of the year, etc.

About +¥1.0 billion
About +¥1.5 billion

Both net sales and operating income increased
due to the decrease in costs

8

Financial Results

Consolidated Net Sales andOperating Margin [1st Half]
Net Sales [¥ billion]

Quarterly Consolidated Operating
Income [1st Half]
2Q
Q Operating
O
Income [¥ billion]

Operating Margin [%]1Q
Q Operating
O
Income [¥ billion]

58.4
53.9
230.0

188.3

222.7

222.0

227.5

25 4%
25.4%
24.2%

20.7%

232.5

24.1%
23.5%

39.0

56.1

52 1
52.1

53.2

29.5

30.4

22.5

22.7





32 5
32.5
29.1

23.4%

31.0

2Q

25.0

1Q

22 2
22.2

25.8

24 7
24.7





16.8

9/12

9/13

9/14

9/15

9/16

9/17





Both net sales and operating income stay in the high level

9

Financial Results

Consolidated
Statement of Income

Results for
the Full FY 3/17[¥ billion]

Initial Forecast for
the Full FY 3/18[¥ billion]

ChangeChange[¥ billion]

[%]

477.7

469.3

((8.4))((1.8)ή
)ή

Theme Park Segment

394.2

386.0

(8.1)

(2.1)ή

Hotel Business Segment

66.1

66.3

0.1

0.3ή

Other Business Segment

17.3

16.9

(0.4)

(2.7)ή

113.1

100.1

(12.9)(11.5)ή

Theme Park Segment

95 8
95.8

82 6
82.6

(13 2)(13.2)(13 9)ή
(13.9)ή

Hotel Business Segment

14.6

15.6

1.0

7.1ή

Other Business Segment

2.4

1.7

(0.6)

(26.7)ή

Ordinary Income

114.6

101.6

(13.0)(11.3)ή

Profit attributable to Owners of Parent

82.3

70.8

(11.5)(14.0)ή

Theme Park Attendance [million people]
Net Sales per Guest [¥]Capital Expenditure* [¥ billion]
Depreciation and Amortization
Amortization* [¥ billion]

30.00
11,594
50.9
38 2
38.2

29.50
11,530
69.0
37 1
37.1

(0.50)
(64)
18.0
(1 1)
(1.1)

(1.7)%(0.6)%
35.5%(2 9)%(2.9)%Net Sales

Operating Income* For the breakdown, please refer to “Supplementary Materials”

The full-year forecast for the fiscal year ending 3/18 remain unchanged102020 Medium-Term Plan

Policy: Strengthen business foundation toward long-term sustainable growthTargets
Ὁ To consistently provide a highly satisfying theme park experienceὉ To achieve record high theme park attendance and operating cash flow in FY3/21

Strategy

1Core Business
StrategyὉ Strengthen structural aspects to provide novelty and comfort
Ὁ Strengthen non-structural aspects (human resources
development)

2

Financial Policy

Ὁ Allocate operating cash flow to growth investment and aim toenhance corporate value

O
Operatingti cashh flowfl=P
Profitfit attributable
tt ib t bl tot owners off parentt + Depreciation
Di ti andd amortization
ti ti expenses

12

2020 Medium-Term Plan

Recognition of internal/external businessenvironment and the direction to aim forExternal environment

1

Decline in birthrate andaging
i populationl ti

2

Increase in inboundtourists

Prepare to offer overseas guests a comfortable time attheme parks

Reduction inStrengthen human resources capacity on a long-termsustainable basis

3labor force

Foster medium
medium- to long
long-term
term fans (repeat guests)

Internal environment
Theme park attendance
increasing at a fasterthan-expected
thanexpected pace1

Speedily proceed with development plans

Business foundation needs to be strengthened
to aim for long-term sustainable growth132020 Medium-Term PlanOne
theme park

Theme park attendance
maintained at approx. 30 million

Growth as Tokyo Disney Resort

Theme park attendance
Three-year moving average

Tokyo DisneySea opened

Strengthenbusiness foundation

Record high29.5 milllion

30.0 million

30.19 milllion

31.38 millioon31.3 millionn27.5 million

25
5.35 million

25
5.37 million

25
5.82 million

27.22
2 million25
5.42 million

25
5.82 million

2
24.77
million2
25.02
million25
5.47 million

24
4.82 million

22.05 million[Target]Period covered by
2020 Medium-Term Plan
ᵐᵎᵐ
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ᵎᵐ

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ᵎᵏ

ᵎᵎ
17.3
3 million ᵐᵎᵎ

ᵗᵗ
16.51 million ᵏᵗᵗ[Forecast]

Period for building a business foundation aimed at long-term sustainable growth

(FY)

14

2020 Medium-Term Plan

Targets under 2020 Medium-Term Plan
Targets
Ὁ To consistently provide a highly satisfying theme park experienceὉ To achieve record high theme park attendance and operating cash flow in FY3/21
Consolidated financial targets
FY3/17(Actual result)

FY3/18(Plan)

FY3/21(Target)

Record high level asof FY3/17 (reference)

Theme park
attendance

30.0 million

29.5 million

Record high31.38 million

OperatingOti cashhflow¥120.6 billion¥107.9 billion

Record high¥120 6 billi¥120.6billion(FY3/15)(FY3/17)

Operating cash flow = Profit attributable to owners of parent + Depreciation and amortization expenses

Aim to achieve record high figures in both theme park attendance andoperating cash flow in FY3/21

152020 Medium-Term Plan

Outline of Core Business Strategy
Strategy
Enhance satisfaction and capacity to attract guests
b iincreasingbyi noveltyl andd comfort
f provided
id d at theme
h
parks
k

NoveltyὺComfort(1) Strengthen structural aspects to provide novelty э Page 17(2) Strengthen structural aspects to provide comfort э Page 29

Satisfaction

ὺ Capacity to
attract guests(3) Strengthen human resources
on a long-term sustainable basis э Page 30

Aim to offer theme parks that provide both novelty and comfort
16

2020 Medium-Term Plan

(1) Strengthen structural aspects to provide novelty
Large-scale investment projects at Tokyo Disneyland and Tokyo DisneySea
Theme
park

Projects

Time of introduction/
investment value

Tokyo
Disneyland

ὉBeauty and the Beast Area (tentative name)- Major attraction
ὉLive Entertainment Theater
ὉNew attraction themed to the Disney film, Big Hero 6
y Character Greetingg FacilityyὉNew Disney

Spring 2020
Approx. ¥75.0 billion
level
FY3/20Tokyo
DisneySea

Major attraction“Soarin’” (tentative name)Approx. ¥18.0 billion

Complete large-scale investment projects as planned

17

NewToontown
GreetingFacility

BeautyandtheBeast
Area

NewTomorrowland
NTl d
Attraction©Disney

I dIndoorTheaterTh

Note: This concept image is not an exact representationof the development area of the facilities.

18

Note: This concept image is subject to change©Disney

19

Village©Disney

Exterior of Major Attraction

Note: These concept images are subject to change
20Note: This concept image is subject to change©Disney21

Exterior©DisneyInterior

Note: These concept images are subject to change22©DisneyNote: This concept image is subject to change
23©Disney

Note: The drawing is for illustrative purpose only and is subject to change.
24©DisneyNote: This concept image is subject to change
25

NewAttractionatMediterraneanHarbor

©Disney

Note: This concept image is not an exact representationof the development area of the facilities.

26

Concept image of the guests
experiencing the attraction

Exterior of the attraction

Note: These concept images are subject to change©Disney

272020 Medium-Term Plan

(1) Strengthen structural aspects to provide novelty
Major
j new pproducts
Nemo & Friends SeaRider
Opened on May 12, 2017

Turtle Talk refurbished
Reopened on May 12, 2017

Tokyo Disneyland Electrical Parade Dreamlights
Redesigned on July 11, 2017

it’s a small world
Scheduled to reopen in April 15, 2018

New at Tokyo
Disneyland
New at Tokyo
DisneySea

New daytime parade “Dreaming Up!”
Scheduled to start in Aprilp 15,, 2018

Nighttime Spectacular “Celebrate! Tokyo Disneyland”
Scheduled to start from July 10, 2018

Soarin’ (tentative name)* Based on a plan disclosed as of
2FWREHU, 2017

Scheduled to open in FY3/20

Tokyo Disney Resort
35th Anniversary

Large-scale investment project
Scheduled to open in spring 2020

Attractive contents to be rolled out, e.g., in timely coordination
with launch of Disney films

28

2020 Medium-Term Plan

(2) Strengthen structural aspects to provide comfort
Major initiatives

1

Large-scale
development<Tokyo Disneyland>ὉAllow more guests to experience attractions
ὉAll weather theater,
ὉAll-weather
theater indoor restaurants<Tokyo DisneySea>
ὉAllow
Allow more guests to experience attractions
ὉBalance out guests’ retention time2

Other initiatives

ὉRefurbish
R f bi h restaurantstt ((more seats,t lless waiting
iti titime))
ὉMobile-phone-based shopping3

Measures foroverseas guests

ὉOffer website in multiple languages
ὉExpand tools used by Cast Members

Aim at increasing guests’ convenience and mitigating
the sense of crowdedness

29

2020 Medium-Term Plan

(3) Strengthen human resources capacity on a long-term sustainable basis
By creating a comfortable workplace environment where a diversity of employees cangain a tangible sense of personal growth, strengthen the foundation for human resources
to display hospitality and operational capacity
Measures to enable employees
p yto ggain a tangible
g sense of g
growth1

Diversification of learning
opportunities

2

In-depth understandingof Disney philosophy

ὉIntroduce new training programs
ὉPromote measures tailored to Cast Members
ὉExpandEd iincentive
ti awardd systemstandd measures tot encouragecommunication

P
Promotionti off a comfortablef t bl workplacek lenvironmentit
1

Efficient workplaceenvironment

ὉEnhance productivity and reduce workload by utilizing IT
e.g., Provide service in foreign languages by using tablet
computers Leverage IT systems to optimize workload

2

Employment /compensation

ὉCompensation system considering external environment
ὉEmployment
Employment environment catered to diverse personnel(e.g., shorter work hours)

Strengthen foundation for human resources to achieve long-term growth30

2020 Medium-Term Plan

Policy: Allocate operating cash flow to growth investment with the aim of enhancing corporate value(1) Cash dividends

40

Annual cash dividends per share

35
30

13.75

15

2006

2007

25

[Forecast]

Increase

I
Increase

35

30

Annual cash dividends [yen]

25

37.5

25

17.5
[Policy]
Aim at steady payout of cash dividends

ίFYὸ
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Note:
o e Dividendde d aamounts
ou s up to
o 3/
3/15
5a
are
ee
evaluateda ua ed retrospectivelye ospec e y foro descdescriptive
p e pupurposes.
poses(2) Share RepurchaseN b off
Numberrepurchased shares

T t l value
Total
l off
repurchased shares

2.76 million shares¥19.9 billion

R
Repurchasedhd shareshffrom open market,
k t FromFMay
M tot JuneJini 2017

Expand shareholder returns and enhance capital efficiency
N t ROE forNote:
f FY3/18 is
i projected
j t d tot be
b 10.3%
10 3%

Expand shareholder returns

31

2020 Medium-Term Plan

Policy for FY3/22 and after
Development plans for further growth of both parks

1Long-term
sustainable growthof the core business<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 DisneySea>
To achieve a significant breakthrough, the expansion of the existing site andutilization of new development will create an environment with a higher degreeof guest satisfaction from qualitative as well as quantitative standpoint
standpoint.

Further boost attendance level over the long term with
continued large-scale investment2

Development ofTokyo Disney
ResortInvestigate various ways to add more value to Tokyo Disney Resort as a whole,such as increasing the number of guest rooms at the hotels within the Resort

3

Further growththrough new
business

Plans for the new business aimed at growing it into single business segment willcontinue to be considered in ways that are not by specific timeframe

Broaderoade investigation
est gat o foro long-termo g te sustainable
susta ab e g
growtho tFormulate policy from a long-term perspective and embody plans by taking theinternal/external environment into consideration32ᾞ῁Ᾰᾴ᾽ῃᾰΆ ᾛᾰ᾽ᾳ ᾒι.,ᾒι ᾛῃᾳ.
ᾛῃᾳInvestor Relations Group, Finance/Accounting Department
URL: www.olc.co.jp/en
This document includes statements about Oriental Land’s plans
plans, estimatesestimates, strategies and beliefs
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
forward-looking
looking statements
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.
All rights reserved.