Oriental Land : Consolidated Financial Statements for the Fiscal Year Ended March 31, 2022 (Japanese accounting standards)

Consolidated Financial Statements for the Fiscal Year Ended March 31, 2022 (Japanese accounting standards)

April 27, 2022

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,Prime Market of the Tokyo Stock Exchange URL:http://www.olc.co.jp/en/

Representative: Kenji Yoshida, Representative Director and President Contact: Yutaka Yokoyama, Director of Finance/Accounting Department Planned Date for Annual General Meeting of Stockholders: June 29, 2022

Planned Date for Submission of Securities Report (Yuka shoken hokokusho): June 29, 2022 Planned Date for Start of Dividend Payment: June 30, 2022

Supplementary materials for the financial statements: Yes

Briefing session on financial results: Yes (for institutional investors)

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

1. Consolidated Results for the Fiscal Year Ended March 31, 2022

(April 1, 2021 - March 31, 2022)

(1) Consolidated Operating Results

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

Net sales (¥ million)Year-on-year change (%)	Operating profit (loss) (¥ million) Year-on-year change (%)	Ordinary profit (loss) (¥ million) Year-on-year change (%)
Fiscal Year ended March 31, 2022 Fiscal Year ended March 31, 2021	275,728 170,581 61.6 (63.3)	7,733 (45,989) - -	11,278 (49,205) - -

Note: Comprehensive income:

Fiscal year ended March 31, 2022: ¥6,144 million (-%) Fiscal year ended March 31, 2021: ¥(49,424 million) (-%)

Profit (Loss) attributable to owners of parent (¥ million) Year-on-year change (%)	Earnings per share (¥)	Earnings per share (diluted) (¥)	Return on equity (%)	Ordinary profit/total assets (%)	Operating profit/total net sales (%)
Fiscal Year ended March 31, 2022 Fiscal Year ended March 31, 2021	8,067 (54,190) - -	24.63 (165.51)	24.60 -	1.1 (6.9)	1.1 (4.8)	2.8 (27.0)

Reference: Equity in earnings of affiliates:

Fiscal year ended March 31, 2022: ¥(480 million)

Fiscal year ended March 31, 2021: ¥(485 million)

Notes

• (1) Earnings per share (diluted) for fiscal year ended March 31, 2021, is not indicated because net loss per share is indicated, although there are potential common shares with dilutive effects.

• (2) The "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been applied since the beginning of the current consolidated fiscal year. Figures for the fiscal year ended March 2022 are stated after the application of the said accounting standard, etc.

(2) Consolidated Financial Position

Total assets (¥ million)	Net assets (¥ million)	Shareholders' equity ratio(%)	Net assets per share (¥)
As of March 31, 2022 As of March 31, 2021	1,086,884 1,040,465	756,317 759,948	69.6 73.0	2,309.12 2,320.71

Reference: Shareholders' equity:

As of March 31, 2022: ¥756,317 million

As of March 31, 2021: ¥759,948 million

Note: The "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been applied since the beginning of the current consolidated fiscal year. Figures for the fiscal year ended March 2022 are stated after the application of the said accounting standard, etc.

(3) Consolidated Cash Flows

Net cash provided by (used in) operating activities (¥ million)	Net cash provided by (used in) investing activities (¥ million)	Net cash provided by (used in) financing activities (¥ million)	Cash and cash equivalents at end of period (¥ million)
Fiscal Year ended March 31, 2022 Fiscal Year ended March 31, 2021	54,602 (23,834)	(138,984) (160,738)	48,933 88,724	129,868 165,317

2. Dividends

Annual dividends (¥)	Total dividends paid (total) (¥ million)	Payout ratio (consolidated) (%)	Dividends/ Net assets (consolidated) (%)
First quarter-end	Second quarter-end	Third quarter-end	Year-end	Total
Fiscal Year ended March 31, 2021 Fiscal Year ended March 31, 2022	- -	13.00 13.00	- -	13.00 15.00	26.00 28.00	8,519 9,178	- 113.8	1.1 1.2
Fiscal Year ending March 31, 2023 (Est.)	-	15.00	-	15.00	30.00	27.9

Note：Total dividends paid include dividends paid to the trust to the employee stock plan (Fiscal year ended March 31, 2021 ¥6 million,

Fiscal year ended March 31, 2022 ¥7 million).

Payout ratio has been calculated by dividing total dividends paid by profit attributable to owners of parent.

3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2023

(April 1, 2022 - March 31, 2023)

(Percentages represent change compared with the previous fiscal year or the same quarter of the previous fiscal year, as applicable.)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Earnings per share
(¥ million)	(%)	(¥ million)	(%)	(¥ million)	(%)	(¥ million)	(%)	(¥)
Six months ending September 30, 2022 Fiscal Year ending March 31, 2023	192,881 407,922	97.7 47.9	21,865 50,251	- 549.8	22,196 50,601	- 348.7	15,334 35,244	- 336.8	46.82 107.61

*Notes

• (1) Changes in Major Subsidiaries during the Period (Changes in specified subsidiaries due to changes in the scope of consolidation): None

• (2) Changes in Accounting Policies, Changes in Accounting Estimates, or Restatement

  • (a) Changes in accounting policies due to changes in accounting standards: Yes

  • (b) Changes other than (a) above: Yes

  • (c) Changes in accounting estimates: Yes

  • (d) Restatement: None

  Note: For details, please refer to Change in Accounting Policy and Changes in Accounting Policies That Are Difficult to

Distinguish from Changes in Accounting Estimates in (5) Notes Regarding the Consolidated Financial Statements on page 10.

(3) Number of Shares Issued and Outstanding (Common stock)

(a)Number of shares issued at end of period

(including treasury shares)

(b)Number of treasury shares at end of

period

(c)Average number of shares outstanding

(quarterly cumulative period)

Year ended March 31, 2022:	363,690,160 shares	Year ended March 31, 2021:	363,690,160 shares
Year ended March 31, 2022:	36,154,941 shares	Year ended March 31, 2021:	36,226,898 shares
Year ended March 31, 2022:	327,500,931 shares	Year ended March 31, 2021:	327,421,164 shares

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

[Reference] Non-consolidated Results

Non-consolidated Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Non-consolidated Operating Results

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

Net sales (¥ million)Year-on-year change (%)	Operating profit (loss) (¥ million) Year-on-year change (%)	Ordinary profit (loss) (¥ million) Year-on-year change (%)
Fiscal Year ended March 31, 2022 Fiscal Year ended March 31, 2021	230,902 146,015 58.1 (63.2)	8,071 (36,405) - -	11,725 (39,184) - -

Net profit (loss) (¥ million)Year-on-year change (%)	Earnings per share (¥)	Earnings per share (diluted) (¥)
Fiscal Year ended March 31, 2022 Fiscal Year ended March 31, 2021	9,945 (37,226) - -	30.37 (113.70)	30.18 -

Notes

• (1) Earnings per share (diluted) for fiscal year ended March 31, 2021, is not indicated because net loss per share is indicated, although there are potential common shares with dilutive effects.

• (2) The "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been applied since the beginning of the current fiscal year. Figures for the fiscal year ended March 2022 are stated after the application of the said accounting standard, etc.

(2) Non-consolidated Financial Position

Total assets (¥ million)	Net assets (¥ million)	Shareholders' equity ratio(%)	Net assets per share (¥)
As of March 31, 2022 As of March 31, 2021	1,048,404 1,001,469	713,703 715,398	68.1 71.4	2,179.01 2,184.67

Reference: Shareholders' equity:

As of March 31, 2022: ¥713,703 million

As of March 31, 2021: ¥715,398 million

Note: The "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been applied since the beginning of the current fiscal year. Figures for the fiscal year ended March 2022 are stated after the application of the said accounting standard, etc.

* The Company's consolidated financial statements are not subject to 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.

1. Operating Results

(1) Overview of Operating Results

During the fiscal year under review, although the Japanese economy continued to be challenged by the coronavirus disease 2019 (COVID-19) pandemic, there have been some signs of recovery, partly due to the progress in vaccination, but the pickup in consumer spending has seen a stall.

As in the previous fiscal year, the OLC Group operated its Tokyo Disneyland and Tokyo DisneySea Theme Parks by limiting their attendance numbers in line with the Amusement Park and Theme Park New Coronavirus Infection Containment Guidelines and requests from the national and local governments. However, based on an individual discussion with the Chiba Prefectural Government, an approval was granted to ease the limits in and after March 1, 2022. As a result, the Parks were operated by increasing their attendance numbers in phases.

Although ongoing limits had been set on attendance at the Parks, attendance increased from the previous fiscal year when both Parks were temporarily closed in the first quarter, and net sales per Guest also grew year on year, owing in part to the positive effect of the Tokyo DisneySea 20th Anniversary events. As a result, the Group recorded net sales, operating profit, ordinary profit, and profit attributable to owners of parent of ¥275,728 million (up 61.6% from the previous fiscal year), ¥7,733 million (up from an operating loss of ¥45,989 million), ¥11,278 million (up from an ordinary loss of ¥49,205 million), and ¥8,067 million (up from a loss attributable to owners of parent of ¥54,190 million), respectively.

As a side note, the "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. has been applied since the beginning of the current consolidated fiscal year. Figures for the fiscal year ended March 2022 are stated after the application of the said accounting standard, etc. For details, please refer to "Notes Regarding Consolidated Financial Statements (Change in Accounting Policy)."

The following is the results of each segment.

Summary of Results by Segment for the Fiscal Year Ended March 31, 2022

(Millions of yen)

Fiscal year ended March 31, 2021	Fiscal year ended March 31, 2022	Change (decrease)	Change (%)
Net Sales Theme Park Hotel Other	170,581	275,728	105,146	61.6
134,293	218,564	84,270	62.8
28,627	47,437	18,809	65.7
7,660	9,726	2,066	27.0
Operating Profit (Loss) Theme Park Hotel Other Elimination and Corporate	(45,989)	7,733	53,722	-
(41,982)	2,512	44,495	-
(1,954)	6,202	8,156	-
(2,312)	(1,305)	1,006	-
260	324	64	24.7
Ordinary Profit (Loss)	(49,205)	11,278	60,483	-
Profit (Loss) Attributable to Owners of Parent	(54,190)	8,067	62,258	-

(2) Analysis of Consolidated Financial Position

[Assets]

Total assets as of March 31, 2022 were ¥1,086,884 million (up 4.5% compared with the end of the previous fiscal year).

Current assets decreased to ¥271,410 million (down 1.0%) due mainly to a drop in merchandise and finished goods, etc.

Non-current assets climbed to ¥815,474 million (up 6.4%) due to an increase in property, plant and equipment, etc.

[Liabilities]

Total liabilities as of March 31, 2022 were ¥330,567 million (up 17.8%).

Current liabilities decreased to ¥85,247 million (down 29.8%) as a result of a decline in current portion of bonds payable, etc.

Non-current liabilities grew to ¥245,320 million (up 54.1%) as a result of an increase in bonds payable, etc.

[Net Assets]

Total net assets as of March 31, 2022 were ¥756,317 million (down 0.5%) due to various factors, including an increase in treasury shares. Shareholders' equity ratio stood at 69.6% (down 3.4 points).

• (3) Cash Flows

  Despite an increase in net cash from operating and financing activities, the balance of cash and cash equivalents at the end of the fiscal year under review was ¥129,868 million (balance at the end of the previous fiscal year was ¥165,317 million) owing to a decrease in net cash from investing activities.

  [Net Cash from Operating Activities]

  Net cash provided by operating activities was ¥54,602 million (up from a net cash outflow of ¥23,834 million for the same period in the previous fiscal year) due to factors that included the posting of a profit before income taxes.

  [Net Cash from Investing Activities]

  Net cash used in investing activities was ¥138,984 million (down from a net cash outflow of ¥160,738 million for the same period in the previous fiscal year) due to factors that included an increase in proceeds from the withdrawal of time deposits.

  [Net Cash from Financing Activities]

  Net cash provided by financing activities was ¥48,933 million (down from a net cash inflow of ¥88,724 million for the same period in the previous fiscal year) due to factors that included an increase in payment for redemption of bonds.

• (4) Future Outlook

  Net sales and profits are projected to increase in the fiscal year ending March 31, 2023, owing primarily to an increase in Theme Park attendance on the back of improvements in the external environment. However, with due consideration for the unclear outlook, net sales, operating profit, ordinary profit, and profit attributable to owners of parent for the fiscal year are projected to be ¥407,922 million (up 47.9% year on year), ¥50,251 million (up 549.8% year on year), ¥50,601 million (up 348.7% year on year), and ¥35,244 million (up 336.8% year on year), respectively.

  The following is the forecast of each segment.

(Millions of yen)

Results for the fiscal year ended March 31, 2022	Forecast for the fiscal year ending March 31, 2023	Change (decrease)	Change (%)
Net Sales Theme Park Hotel Other	275,728	407,922	132,193	47.9
218,564	327,785	109,221	50.0
47,437	68,125	20,687	43.6
9,726	12,011	2,284	23.5
Operating Profit (Loss) Theme Park Hotel Other Elimination and Corporate	7,733	50,251	42,518	549.8
2,512	37,298	34,785	-
6,202	13,144	6,942	111.9
(1,305)	(419)	886	-
324	227	(96)	(29.8)
Ordinary Profit (Loss)	11,278	50,601	39,322	348.7
Profit (Loss) Attributable to Owners of Parent	8,067	35,244	27,176	336.8

2. Basic Policy on the selection of accounting standards

As the OLC group is not engaged in global business operations or capital procurement, its consolidated financial statements are formulated based on Japanese accounting standards.