Consolidated Financial Statements for the First Quarter of

the Fiscal Year Ending March 31, 2021 (Japanese accounting standards)

July 30, 2020

These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

Oriental Land Co., Ltd.

Code number: 4661, First Section of the Tokyo Stock Exchange

URL: http://www.olc.co.jp/en/

Representative: Kyoichiro Uenishi, Representative Director and President

Contact: Kenji Horikawa, Officer and Director of Finance/Accounting Department

Planned Date for Submission of the Quarterly Report: August 13, 2020

Planned Date for Start of Dividend Payment: -

Supplementary materials for the quarterly financial statements: Yes

Briefing session on quarterly financial results:

Yes (for institutional investors)

Note: All amounts are rounded down to the nearest million yen.

1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2021 (April 1, 2020 to June 30, 2020)

(1) Consolidated Operating Results (Cumulative total)

(Percentages represent change compared with the same period of the previous fiscal year.)

Net sales

Year-on-year

Operating

Year-on-year

Ordinary

Year-on-year

profit

profit

(¥ million)

change (%)

change (%)

change (%)

(¥ million)

(¥ million)

Three months ended June 30, 2020

6,164

(94.9)

(15,641)

-

(15,283)

-

Three months ended June 30, 2019

120,552

(0.2)

31,936

7.1

32,762

7.6

Note: Comprehensive income:

Three months ended June 30, 2020: ¥ (24,261) million (-%)

Three months ended June 30, 2019: ¥20,364 million ((17.2)%)

Profit attributable to

Year-on-year

Earnings per share

Earnings per share

owners of parent

change (%)

(¥)

(diluted) (¥)

(¥ million)

Three months ended June 30, 2020

(24,871)

-

(75.97)

-

Three months ended June 30, 2019

22,923

8.4

69.72

67.46

Note: Earnings per share (diluted) for three months ended June 30, 2020, is not indicated because net loss per share is indicated, although there are potential common shares with dilutive effects.

(2) Consolidated Financial Position

Total assets

Net assets

Shareholders' equity

Net assets per share

(¥ million)

(¥ million)

ratio(%)

(¥)

As of June 30, 2020

963,336

788,848

81.9

2,409.54

As of March 31, 2020

1,010,651

820,257

81.2

2,505.55

Reference: Shareholders' equity:

As of June 30, 2020: ¥788,848 million

As of March 31, 2020: ¥820,257 million

2. Dividends

Annual dividends (¥)

First quarter-end

Second quarter-end

Third quarter-end

Year-end

Total

Fiscal Year ended March 31, 2020

-

22.00

-

22.00

44.00

Fiscal Year ending March 31,

2021

-

Fiscal Year ending March 31,

2021 (Est.)

-

-

-

-

Note: Dividends for the second quarter-end and the year-end of the fiscal year ending March 31, 2021 are not indicated as it is difficult to reasonably calculate our forecast of operating results at this point in time.

3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)

Projection of consolidated results for the fiscal year ending March 31, 2021 is not indicated as it is difficult to reasonably calculate our forecast of operating results at this point in time. We will calculate reasonable financial forecast considering our Theme Park attendance and the situation of the spread of COVID-19 during the second quarter, and disclose with the financial results for the second quarter.

*Notes

  1. Changes in Major Subsidiaries during the Three Months Ended June 30, 2020: None
  2. Application of Special Accounting Methods for Quarterly Consolidated Financial Statements: None
  3. Changes in Accounting Policies, Changes in Accounting Estimates, or Restatement
    1. Changes in accounting policies due to changes in accounting standards: None
    2. Changes other than (a) above: None
    3. Changes in accounting estimates: None
    4. Restatement: None
  4. Number of Shares Issued and Outstanding (Common stock)

(a) Number of shares issued at end of period

Three months ended

363,690,160

Year ended

363,690,160

(including treasury stock)

June 30, 2020:

shares

March 31, 2020:

shares

(b) Number of treasury stock at end of

Three months ended

36,304,332

Year ended

36,313,892

period

June 30, 2020:

shares

March 31, 2020:

shares

(c) Average number of shares outstanding

Three months ended

327,381,087

Three months ended

328,790,148

(quarterly cumulative period)

June 30, 2020:

shares

June 30, 2019:

shares

Note: Number of treasury stock includes dividends paid to the trust to the employee stock plan.

  • The Company's quarterly consolidated financial statements are not subject to quarterly financial review by certified public accountants or an auditing firm.
  • Explanation on the Appropriate Usage of Performance Projections and Other Specific Matters

The projections and other statements with respect to the future included in this material are based on currently available information and certain assumptions that are judged reasonable by the Company. Please be advised that the Company does not guarantee in any way the achievement of the projections and other goals in this material and that cases may occur where the actual results and other situations differ materially from the projections due to various factors.

Quarterly Consolidated Financial Statements and Key Notes

(1) Quarterly Consolidated Balance Sheets

(Millions of yen)

At the end of

At the end of

Items

the previous fiscal year

the first quarter

(March 31, 2020)

(June 30, 2020)

ASSETS

Current assets

Cash and deposits

261,164

178,083

Notes and accounts receivable-trade

7,225

5,431

Securities

19,999

7,485

Merchandise and finished goods

11,679

16,931

Work in process

172

105

Raw materials and supplies

8,236

9,068

Other

8,263

17,379

Allowance for doubtful accounts

(0)

(0)

Total current assets

316,741

234,485

Non-current assets

Property, plant and equipment

Buildings and structures, net

291,012

286,932

Machinery, equipment and vehicles, net

34,557

32,916

Land

117,653

117,653

Construction in progress

152,165

183,553

Other, net

15,197

13,883

Total property, plant and equipment

610,586

634,938

Intangible assets

Other

16,334

16,274

Total intangible assets

16,334

16,274

Investments and other assets

Other

67,078

77,728

Allowance for doubtful accounts

(88)

(89)

Total investments and other assets

66,989

77,639

Total non-current assets

693,910

728,851

Total assets

1,010,651

963,336

1

(Millions of yen)

At the end of

At the end of

Items

the previous fiscal year

the first quarter

(March 31, 2020)

(June 30, 2020)

LIABILITIES

Current liabilities

Notes and accounts payable-trade

13,921

7,503

Current portion of long-term loans payable

4,580

4,365

Income taxes payable

7,991

8,098

Other

74,001

64,813

Total current liabilities

100,495

84,780

Non-current liabilities

Bonds payable

80,000

80,000

Long-term loans payable

2,488

2,457

Retirement benefit liability

3,537

3,394

Other

3,873

3,855

Total non-current liabilities

89,898

89,707

Total liabilities

190,394

174,488

NET ASSETS

Shareholders' equity

Capital stock

63,201

63,201

Capital surplus

111,970

111,970

Retained earnings

744,452

712,371

Treasury shares

(109,325)

(109,263)

Total shareholders' equity

810,298

778,280

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

9,623

10,244

Deferred gains or losses on hedges

74

76

Remeasurements of defined benefit plans

261

247

Total accumulated other comprehensive income

9,958

10,568

Total net assets

820,257

788,848

Total liabilities and net assets

1,010,651

963,336

2

  1. Quarterly Consolidated Statements of (Comprehensive) Income (Quarterly Consolidated Statements of Income)
    Three months ended June 30, 2020

(Millions of yen)

Three months ended

Three months ended

Items

June 30, 2019

June 30, 2020

(April 1, 2019

(April 1, 2020

to June 30, 2019)

to June 30, 2020)

Net sales

120,552

6,164

Cost of sales

72,269

12,963

Gross profit (loss)

48,282

(6,798)

Selling, general and administrative expenses

16,345

8,843

Operating profit (loss)

31,936

(15,641)

Non-operating income

Interest income

40

13

Dividend income

443

339

Insurance received and insurance dividends

88

29

Other

514

371

Total non-operating income

1,086

753

Non-operating expenses

Interest expenses

73

60

Share of losses of entities accounted for using equity method

20

185

Commission expenses

132

134

Other

34

14

Total non-operating expenses

260

395

Ordinary profit (loss)

32,762

(15,283)

Extraordinary loss

Loss on temporary closure

-

21,198

Total extraordinary loss

-

21,198

Profit (loss) before income taxes

32,762

(36,481)

Income taxes-current

8,878

113

Income taxes-deferred

960

(11,724)

Total income taxes

9,838

(11,610)

Profit (loss)

22,923

(24,871)

Profit (loss) attributable to owners of parent

22,923

(24,871)

3

(Quarterly Consolidated Statements of Comprehensive Income) Three months ended June 30, 2020

(Millions of yen)

Three months ended

Three months ended

Items

June 30, 2019

June 30, 2020

(April 1, 2019

(April 1, 2020

to June 30, 2019)

to June 30, 2020)

Profit (loss)

22,923

(24,871)

Other comprehensive income

Valuation difference on available-for-sale securities

(2,522)

621

Deferred gains or losses on hedges

(6)

2

Remeasurements of defined benefit plans, net of tax

(28)

(13)

Total other comprehensive income

(2,558)

610

Comprehensive income

20,364

(24,261)

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

20,364

(24,261)

Comprehensive income attributable to non-controlling interests

-

-

4

  1. Notes Regarding the Consolidated Financial Statements for the First Quarter Under Review Notes Regarding Going Concern Assumption: None

Notes Regarding the Occurrence of Significant Changes in Amount of Shareholders' Equity: None

Additional Information

Impact of COVID-19

The OLC Group's Theme Parks, which constitute its core business, were temporarily closed along with its hotels during the first quarter under review. Our Theme Parks resumed operations on July 1, 2020 while taking measures primarily based on the sector-wide guidelines for preventing the spread of COVID-19 at amusement and theme parks and limiting attendance. It may take some time before we can restore normal operations, depending on the external environment including trends in consumer sentiment for leisure activities. As such, the situation of the spread of COVID-19 is expected to exert a material impact on our consolidated financial results in and after the second quarter of the fiscal year ending March 31, 2021.

Significant accounting estimates and underlying assumptions

In preparing the consolidated financial statements for the first quarter under review, there have been no significant changes from the previous fiscal year in the highly uncertain accounting estimates and their underlying assumptions.

Matters Concerning Consolidated Statements of Income * Loss on temporary closure

In view of the spread of COVID-19 and requests from the national and local governments, the OLC Group temporarily closed Tokyo Disneyland® and Tokyo DisneySea® from February 29 to June 30, 2020. As a result, we primarily registered the fixed expenses, including personnel expenses and depreciation and amortization expenses, incurred for the Theme Park Segment during the temporary closure as an extraordinary loss.

As the employment adjustment subsidy to be received from the government as a special measure to address the impact of COVID-19, highly accurate amount to be received is reasonably calculated, and has been deducted from the extraordinary loss.

5

Segment Information

1. Three months ended June 30, 2019 (April 1, 2019 to June 30, 2019) A. Net Sales and Income (Loss) by Reportable Segment

(Millions of yen)

Reportable Segments

Amount stated

Other

on the Quarterly

Total

Adjustment*2

Theme

Hotel

Total

1

Consolidated

Park

Business*

Statements of

Income

*3

Net sales

Sales to external

100,179

16,420

116,599

3,952

120,552

-

120,552

customers

Intersegment

1,717

130

1,848

942

2,790

(2,790)

-

sales or transfers

Total

101,896

16,551

118,448

4,894

123,342

(2,790)

120,552

Segment Income

27,182

3,784

30,967

911

31,879

57

31,936

Notes: 1. The "Other Business" segment, which includes the Ikspiari, monorail, and employee cafeteria businesses, is not a reportable segment.

  1. The segment income adjustment amount of 57 million yen is the result of elimination of intersegment transactions.
  2. The segment income is adjusted to be recorded as operating profit in the Quarterly Consolidated Statements of Income.
  1. Information regarding impairment loss on fixed assets and goodwill by reportable segment: None

2. Three months ended June 30, 2020 (April 1, 2020 to June 30, 2020)

  1. Net Sales and Income (Loss) by Reportable Segment

(Millions of yen)

Reportable Segments

Amount stated

Other

on the Quarterly

Total

Adjustment*2

Theme

Hotel

Total

1

Consolidated

Park

Business*

Statements of

Income

*3

Net sales

Sales to external

5,123

147

5,271

893

6,164

-

6,164

customers

Intersegment

347

62

410

675

1,085

(1,085)

-

sales or transfers

Total

5,471

209

5,681

1,568

7,249

(1,085)

6,164

Segment Loss

(11,439)

(3,198)

(14,637)

(1,035)

(15,673)

31

(15,641)

Notes: 1. The "Other Business" segment, which includes the Ikspiari, monorail, and employee cafeteria businesses, is not a reportable segment.

  1. The segment loss adjustment amount of 31 million yen is the result of elimination of intersegment transactions.
  2. The segment loss is adjusted to be recorded as operating loss in the Quarterly Consolidated Statements of Income.
  1. Information regarding impairment loss on fixed assets and goodwill by reportable segment: None

6

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OLC - Oriental Land Co. Ltd. published this content on 30 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2020 07:05:12 UTC