Oriental Land : Results for the First Quarter of the Fiscal Year Ending March 31,2021

July 30, 2020

Oriental Land Co., Ltd.

		• Reopened on July 1
	Tokyo Disneyland®	(with changes in park hours and service)
	Note: Opening date of the area of Tokyo Disneyland Large-Scale
	Tokyo DisneySea®
	Development will be decided in consideration of the
		situations at our Theme Parks

	Disney Hotels	• Reopened on June 30 (with changes in service)
	Note: Tokyo Disney Celebration Hotel - Discover is still closed
	Ikspiari	• Reopened on June 1 (with changes in service)
	Note: Some stores reopened on April 13
	Disney Resort Line	• Continues to remain in operation
	Note: Revised operating time from April 6 to June 30

Decisions on reopening made with top priority given to

the safety of Guests and Cast Members

2

Kyoichiro Uenishi

Representative Director,

President and COO

. Results for the First Quarter of the Fiscal Year Ending March 31, 2021

				[¥billion]
Consolidated	Three months ended	Three months ended	Change	Change [%]
Statement of Income	June 30, 2019	June 30, 2020

	Net Sales	120.5	(114.3)	(94.9)
		Theme Park Segment	100.1	(95.0)	(94.9)
		Hotel Business Segment	16.4	(16.2)	(99.1)
		Other Business Segment	3.9	(3.0)	(77.4)
	Operating Profit	31.9	(47.5)	-
		Theme Park Segment	27.1	(38.6)	-
		Hotel Business Segment	3.7	(6.9)	-
		Other Business Segment	0.9	(1.9)	-
	Ordinary Profit	32.7	(48.0)	-
	Extraordinary loss	-	21.1	-
	Profit before income taxes	32.7	(69.2)	-
	Profit attributable to	22.9	(47.7)	-
	owners of parent

Net sales and all levels of profit fell short compared to the same period of the
previous fiscal year due to the temporary closure of both Parks, etc.	4

. Results for the First Quarter of the Fiscal Year Ending March 31, 2021

							[¥billion]
		Operating profit/		Three months ended	Three months ended	Change	Change [%]
		Profit before income taxes		June 30, 2019	June 30, 2020
	Operating profit	31.9		(47.5)	-
	Extraordinary loss	-		21.1	-
	Profit before income taxes	32.7		(69.2)	-
							Impact
							on profits
	Decrease in operating expenses
		Part of fixed costs during temporary closure recorded as extraordinary loss*		19.7
		Decrease in personnel expenses for part-time employees, marketing expenses, special events related costs, etc.	7.1
	Loss on temporary closure				(21.1)
		Personnel expenses ίPart of personnel expenses incurred during the temporary closure of both Parks, etc.ὸ*	(7.9)
		Miscellaneous expenses ίOutsourcing, fixed asset tax during the temporary closure of both Parks, etc.ὸ	(3.6)
		Depreciation and amortization expenses ίDepreciation and amortization expenses during the temporary closure, etc.)	(8.1)
		Personnel expenses in costs of food and beverages*, disposal of merchandise and raw material, etc.	(1.4)
	Decrease in profit before income taxes			(69.2)

*$VWKHHPSORPHQWDGMXVWPHQWVXEVLGWREHUHFHLYHGIURPWKHJRYHUQPHQWDVDVSHFLDOPHDVXUHWRDGGUHVVWKHLPSDFWRI

&29,'KLJKODFFXUDWHDPRXQWWREHUHFHLYHGLVUHDVRQDEOFDOFXODWHGDQGKDVEHHQGHGXFWHGIURPWKHH[WUDRUGLQDUORVV
In addition to decrease of operating expenses during the temporary closure, we partially
recorded expenses into extraordinary loss	5

[APPENDIX]

				[¥billion]
Theme Park Segment	Three months ended	Three months ended	Change	Change [%]
June 30, 2019	June 30, 2020

	Net Sales		100.1		.	(95.0)	(94.9)
	Operating Profit	27.1			(38.6)	-
							[¥billion]
	Items	Primary reasons for decrease in operating		Primary reasons for transferring of
	expenses ίYear-on-year comparisonὸ		extraordinary loss
	Personnel		Transfer to extraordinary loss,		Part of the personnel expenses incurred
	14.5	decrease in personnel expenses for	7.7 during the temporary closure of both
	expenses
		part-time employees, etc.		Parks*
	Miscellaneous		Transfer to extraordinary loss,		Outsourcing, fixed asset tax during the
	6.9	decrease in marketing expenses,	3.2
	expenses	temporary closure of both Parks, etc.
		special events related costs, etc.
	Depreciation and				Depreciation and amortization expenses
	amortization	6.8	Transfer to extraordinary loss, etc.	7.2 during the	temporary closure of both
	expenses				Parks

Personnel expenses in costs of food and

Others1.4 beverages, disposal of merchandise and raw material, etc.

*$VWKHHPSORPHQWDGMXVWPHQWVXEVLGWREHUHFHLYHGIURPWKHJRYHUQPHQWDVDVSHFLDOPHDVXUHWRDGGUHVVWKHLPSDFWRI &29,'KLJKODFFXUDWHDPRXQWWREHUHFHLYHGLVUHDVRQDEOFDOFXODWHGDQGKDVEHHQGHGXFWHGIURPWKHH[WUDRUGLQDUORVV

In addition to decrease in personnel expenses for part-time employees and miscellaneous
expenses, etc., we partially recorded expenses into extraordinary loss	6

									[APPENDIX]
				Three months ended					[¥billion]
	Hotel Business Segment	Three months ended	Change	Change [%]
	June 30, 2019	June 30, 2020
	Net Sales			16.4			.	(16.2)	(99.1)
	Operating Profit		3.7				(6.9)	-
									[¥billion]
	Items	Primary reasons for decrease in operating		Primary reasons for transferring of
	expenses ίYear-on-year comparisonὸ			extraordinary loss
	Personnel		Transfer to extraordinary loss,			Part of the personnel expenses incurred
	2.3	decrease due to reduction of		0.1
	expenses		during the temporary closure of hotels*
		working hours, etc.
	Miscellaneous	0.9	Decrease in maintenance costs,	0.3	Fixed asset tax during the temporary
	expenses	transfer to extraordinary loss, etc.	closure of hotels, etc.
	Depreciation and						Depreciation and amortization expenses
	amortization	0.7	Transfer to extraordinary loss, etc.	0.7
	during the temporary closure of hotels
	expenses

*$VWKHHPSORPHQWDGMXVWPHQWVXEVLGWREHUHFHLYHGIURPWKHJRYHUQPHQWDVDVSHFLDOPHDVXUHWRDGGUHVVWKHLPSDFWRI

&29,'KLJKODFFXUDWHDPRXQWWREHUHFHLYHGLVUHDVRQDEOFDOFXODWHGDQGKDVEHHQGHGXFWHGIURPWKHH[WUDRUGLQDUORVV
In addition to reduction of working hours, etc.,
we partially recorded expenses into extraordinary loss	7

				II. Response to COVID-19 Pandemic
	Preparation		Ὁ	In coordination with The Walt Disney Company, worked on formulating an
	of Park			operation policy that gives top priority to the safety and peace of mind of
			Guests and Cast Members
	Operation
		Ὁ	Hands-on training implemented for Cast Members
	Strengthen
	financial		Ὁ	Concluded a line of credit contract worth ¥200 billion on May 15
	position
			Ὁ Offered Theme Park goods via online Tokyo Disney Resort Shopping function
	Guests			from May 26 to June 24
		Ὁ	Reopened Ikspiari on June 1
			Ὁ Reopened Bon Voyage (the Disney shop outside our Parks) on June 25
			Ὁ Extended payment period of special leave allowance for part-time Cast Members and
	Employees/			show performers until September
		Ὁ	Started the furlough of employees on May 18
	Executive		Ὁ	Reduced executive directors' remuneration from June
	Directors			Note: Voluntarily returned up until May
			Ὁ Partially reduced summer bonuses for managerial positions
	Society		Ὁ	Donated rainwear to Chiba Prefecture and Urayasu City

Prepared Park operations and financial arrangements
to reopen as safe and reliable Theme Parks	9

		ᵌ ᵰᶃᶑᶎᶍᶌᶑᶃᴾᶒᶍᴾᵡᵭᵴᵧᵢᵋᵏᵗᴾᵮᵿᶌᶂᶃᶋᶇᶁ
Overall	•	Ensured health checks and social distancing
•	Limited Theme Park attendance, shortened Park operation hours,
measures		introduced Fixed Date Time Passport

• Suspended special events and programs Attractions • Closed one-room and interactive attraction facilities

	Entertainment	• Changed method of character greetings
	• Suspended shows and parades
	Food	• Introduced two-dimensional barcodes for seeing menus
	• Provided a complimentary holder for storing mask while dining
		• Promoted Tokyo Disney Resort Shopping
	Merchandise • Recommended credit card, electronic, and other cashless payments

• Installed shields between Guests and Cast Members at cash registers Disney Hotels • Recommended use of online check-in function on official app

	Sign showing where to stand Social distancing at an attraction 2D barcode for seeing menu	Greetings by characters
	Introduced Park operation methods with top priority given to the safety
©Disney	and peace of mind of Guests and Cast Members	ᵏᵎ

II. Response to COVID-19 Pandemic

Note: The following shows our financial operating status as of mid-July, not an outlook on future trends

egmentS Park meThe

• Phased easing of attendance limits since reopening; currently

Attendance operating at maximum attendance of 50% of the usual level

• High demand especially among Guests in Tokyo metropolitan area
• • Increase due to Park Ticket price revisions on April 1

  Tickets

  • Temporary increase owing to restriction in ticket types
  • Temporary increase owing to sales of goods for

Net sales			events that could not be offered during the temporary
		closure
per Guest	Merchandise Ὁ
Increase owing to sales of new Duffy and Friends
			merchandise
		Ὁ	Decrease owing to closure of some stores
	Food and	Ὁ Increase owing to a temporary rise in the proportion of
		Guests using table service
	beverages
	Ὁ Decrease owing to shortened Park operation hours

Duffy and Friends

New character Olu Mel (left)

Factors that may cause

change

• Decrease due to visits by Annual Passport holders

• Decrease due to fall in the temporary high demand level
• Decrease due to increase in counter and wagon services

• Limited number of overnight hotel guests accepted owing to limits set on

Disney Hotels

hotel room sales in line with number of Park Tickets sold

• Changes in special offers for overnight hotel guests and service offerings

Note: Arrows indicate year-on-year comparison.

Net sales decreased owing to limited attendance, resulting in an operating loss

©Disney

11

II. Response to COVID-19 Pandemic

aless Net

Attendance

• Theme Park Attendance will continue to be limited to give priority to Guests and Cast Members' safety and peace of mind over making profit and to maintain a high Theme Park experience value, although the limit will gradually be eased

• Extension of Park operation hours and opening date of Large-Scale Development area of Tokyo Disneyland will be decided in consideration of future Park situations

nsesExpe

Trends of Fixed Expenses in the fiscal year ending March 2021

	•	Reduced working hours
Personnel expenses	•	Enhanced productivity resulting from employee reallocations
	Ὁ Application and receipt of employment adjustment subsidy
Depreciation and	• Increasing when Large-Scale Development area of Tokyo Disneyland opens
amortization expenses

• Costs reduced in line with decreased attendance (e.g., marketing expenses)

Other fixed expenses • Costs reduced as a result of suspension of special events and programs

to prevent the spread of COVID-19

Note: Arrows indicate year-on-year comparison

Cost Control Team was urgently formed as a time-limited organization directly reporting to the president (June 2020)

Swiftly and rigorously examines and controls expenses, investment, and costs such as personnel expenses in view of our current situation and long-term perspective, while ascertaining the Group-wide earnings level and cash flow

Cost Control Team examines ways to significantly reduce
fixed costs and miscellaneous costs	12

II. Response to COVID-19 Pandemic

entnvestmI seitunIncrea-perplans sales

• Explore new Park Ticket strategy
• Explore creation of new earnings sources based on Guests' experience within Parks
• "Believe! Sea of Dreams," a new entertainment program, will be introduced at Tokyo DisneySea in FY 3/22
• "Fantasy Springs" and a new Disney hotel themed to the Disney/Pixar Toy Story film series, will be opened as scheduled
• Suspension, downsizing, or postponement of less urgent remodeling works will be considered

inessesbus New

New subsidiary, Oriental Land Innovations Co., Ltd., established (June 5, 2020)

• Address the risk of having all businesses concentrated in Maihama
• With the aim of creating businesses that contribute to the development of a society filled with "dreams, moving experiences, happiness and contentment," the subsidiary will make a small- scale minority investment, after which it will pursue research in fields it believes are promising to increase the probability of success in new business development
• In addition to the establishment of the new subsidiary, research and study of new businesses will be continued in areas expected to grow over the long term, and a wide range of options will be considered to contribute to the OLC Group's sustained growth

	Forecast for FY 3/21 and updates on 2020 Medium-Term Plan will be
©Disney	announced upon presenting the financial results for the second quarter	13

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.

All rights reserved.