Oriental Land : Results for the Fiscal Year Ended March 2021

Results for the Fiscal Year Ended March 2021

April 28, 2021

Oriental Land Co., Ltd.

Contents of Presentation for Financial Result Briefing for FY3/21

I. Results for the Fiscal Year Ended March 2021 II. Review of 2020 Medium-term Plan

III. Outlook for the Fiscal Year Ending March 2022

2

Akiyoshi Yokota

Executive Director and

Officer in charge of Finance/Accounting Department

	IV. For Long-term Sustainable Growth	Kyoichiro Uenishi
	Representative Director,
		President and COO

222

I. Results for the Fiscal Year Ended March 2021

Akiyoshi Yokota

Executive Director and Officer

in charge of Finance/Accounting Department

1. Results for FY3/21 [YoY Comparison]

Consolidated Statement of Income

									[¥ billion]
			FY3/20 Results				Change		Change
	Net Sales	464.4	.		(293.8)	(63.3)%
		Theme Park Segment	384.0				(249.7)	(65.0)%
		Hotel Business Segment	64.3				(35.7)	(55.5)%
		Other Business Segment	16.0				(8.3)	(52.3)%
	Operating Profit	96.8				(142.8)	-
		Theme Park Segment	79.6				(121.6)	-
		Hotel Business Segment	14.7				(16.7)	-
		Other Business Segment	2.1				(4.4)	-
							2)
	Ordinary Profit	98.0				(147.2)	-
	Extraordinary Income	0.3				(0.3)	-
	Extraordinary Loss	9.2				9.3	100.6%
	Profit before Income Taxes	89.1				(156.9)	-
	Profit Attributable to Owners of Parent	62.2				(116.4)	-

Net sales and all levels of profit decreased due to

temporary Park closure and limited Theme Park attendance	44

1. Results for FY3/21 [YoY Comparison] - Main Reasons for Change

		Theme Park Segment(1)	FY3/20 Results								Change				Change
																			Change
	Net Sales [¥ billion]	384.0									(249.7)				(65.0)％
	Attendance [million people]	29.01									(21.45)				(73.9)％
	Net Sales per Guest [¥]	11,606									2,036					17.5％
		Ticket Receipts [¥]	5,292									1,246					23.5％
		Merchandise [¥]	3,877												245245					66.33％％
		Food and Beverages [¥]	2,437												545					22.4％
Decrease in Theme Park attendance							Changes in net sales per Guest
・Decrease due to temporary closure of both Parks
						Food and beverages		Merchandise		Ticket receipts
・Decrease due to limited Theme Park attendance				5
																	[¥]
Increase in net sales per Guest																			13,642
							11,594	11,614	11,815	11,606
・Increase in ticket receipts				11,257
-Increase due to restriction on ticket types, ticket price revision					5,264	5,339		5,352	5,292	6,538
・Increase in merchandise revenue				5,007
-Temporary increase due to growth in demand after reopening,																4,122
	increase in products related to newly-opened area	3,964	4,074	3,989		4,122	3,877
・Increase in food and beverages revenue				2,286	2,256	2,286		2,341	2,437	2,982
-Increase due to ample dining opportunities with limited Theme
	Park attendance, increase in souvenir products related to	3/16	3/17	3/18		3/19	3/20	3/21 [FY]
	newly-opened area

Net sales declined due to a drop in Theme Park attendance
although net sales per Guest increased	55

1. Results for FY3/21 [YoY Comparison] - Main Reasons for Change

[¥ billion]

Theme Park Segment (2)

FY3/20 Results

Change

Change

Net Sales

384.0

(249.7)

(65.0)％

Operating Profit

79.6

.

(121(121.6)6)

-

Decrease in operating profit

[¥ billion]

Decrease in net sales

costs

25 4

Decrease in miscellaneous costs

25.4

Increase in merchandise and

(19.6)

Transfer to extraordinary loss

2.1

food/beverages cost ratio

Decrease in sales promotion costs

4.5

Decrease in personnel expenses

30.2

Decrease in maintenance costts

44.44

Transfer to extraordinary loss

7.1

6

Decrease in costs related to special

4.1

Decrease due to receipts of

7.2

events

employment adjustment subsidy

Decrease in costs related toto

2.3

Decrease in personnel expenses for

8.7

entertainment

part-time Cast members

Others

8.0

Decrease in personnel expenses for

4.5

Increase in depreciation and

(0.3)

full-time employees

amortization expenses

Others

2.7

Note: Increase in costs is expressed by figures in brackets, which show

by how much operating profit was negatively affected

Operating profit declined due to decreased net sales although a part of costs was transferred to extraordinary losses and each cost was reduced 66

1. Results for FY3/21 [YoY Comparison] - Main Reasons for Change

									[¥ billion]
	Hotel Business Segment	FY3/20 Results				Change		Change
	Net Sales	64.3			(35.7)	(55.5)%
		Disney Hotels	56.7		.	(31.2)	(55.0)%
		Other Hotels	7.5			(4.5)	(59.7)%
	Operating Profit	14.7			(16.7)	-

• Decrease in accommodation revenue due to the temporary closure of the hotels
• Decrease in costs transferred to extraordinary loss

• Decrease in accommodation revenue due to limited number of rooms sold

Note: "Disney Hotels" consist of Disney Ambassador Hotel, Tokyo DisneySea Hotel MiraCosta, Tokyo Disneyland Hotel and Tokyo Disney Celebration Hotel

Net sales and operating profit dropped due to the temporary closure

of the hotels and limited number of rooms sold

								[¥ billion]
	Other Business Segment
Change		Change
FY3/20 Results
	Net Sales	16.0				(8.3)		(52.3)％
	Operating Profit	2.1				(4.4)	-

Both net sales and operating profit fell down
because of less passengers in Monorail business	77

2. Results for FY3/21 [Comparison with Forecast]
Consolidated Statement of Income		[¥ billion]
	FY3/21 Forecast	Change	Change
Net Sales	185.4	(14.8)	(8.0)％
Theme Park Segment	152.4	(18.1)	(11.9)％
Hotel Business Segment	25.1	3.4	13.9％
Other Business Segment	7.8	(0.2)	(2.9)
			％
Operating Profit	(51.4)	5.4	-
Theme Park Segment	(43.1)	11.11	-
Hotel Business Segment	(5.9)	4.0	-
Other Business Segment	(2.5)	0.2	-
Ordinary Profit	(53.8)	4.6	-
Extraordinary Loss	13.3	5.2	39.5%
Profit before Income Taxes	(67.2)	(0.5)	-
Profit Attributable to Owners of Parent	(51.1)	(3.0)	-
Net sales and profit attributable to owners of parent were below our projection
owing to the influence of the state of emergency and other factors	88

2. Results for FY3/21 [Comparison with Forecast] - Main Reasons for Change

	Theme Park Segment (1)	FY3/21 Forecast		FY3/21 Results		Change		Change
	Net Sales [¥ billion]	152.4				(18.1)		(11.9)％
	Attendance [million people]	9.50				(1.94)		(20.4)％
	Net Sales per Guest [¥]	12,710				932		7.3％
		Ticket Receipts [¥]	6,250				288		4.6％
		Merchandise [¥]	3,620				502		13.9％
		Food and Beverages [¥]	2,840				142		5.0％

Decrease in Theme Park attendance

・Decrease due to limited Theme Park attendance

Increase9 in net sales per Guest

・Increase in ticket receipts

-Increase due to changes in composition ratio of ticket types

・Increase in merchandise revenue -Increase in regular products

・Increase in food and beverages revenue

-Increase in souvenir products related to newly-opened related to newly opened

area

Results fell below our forecast as a result of tightening of the limit set on
Theme Park attendance when a state of emergency was declared	99

2. Results for FY3/21 [Comparison with Forecast] - Main Reasons for Change

							[[¥¥ billion]billion]
Theme Park Segment (2)	FY3/21 Forecast		FY3/21 Results		Change		Change
Net Sales	152.4				(18.1)	(11.9)%
Operating Profit	(43.1)				1.1	-

Increase in operating profit

Decrease in net sales
Decrease in merchandise and	About 0.5
food/beverages cost ratio
Decrease in personnel expenses	About 7.0
	Decrease due to receipts of	3.2
	employment adjustment subsidy
	Decrease in personnel expenses	About 2.0
	for part-time Cast members
	Decrease in personnel expenses	About 1.5
	for full-time employees, etc.

	[[¥¥ billibillion]]
Decrease in miscellaneous costs	About 5.5
Decrease in maintenance costs	About 3.0
Decrease in energy costs	About 0.5
10	About 2.0
Others
Decrease in depreciation and	00.33
amortization expenses

Operating profit exceeded our forecast mainly due to
lower-than-expected personnel expenses and miscellaneous costs	1010

2. Results for FY3/21 [Comparison with Forecast] - Main Reasons for Change

									[¥ billion]
	Hotel Business Segment	FY3/21 Forecast		FY3/21 Results		Change		Change
	Net Sales	25.1				3.4	13.9%
		Disney Hotels	22.3				3.2	14.6%
		Other Hotels	2.8				0.2	8.8%
	Operating Profit	(5.9)				4.0	-

・Increase in accommodation revenue	・Decrease in miscellaneous costs
・Decrease in personnel expenses
	Note: "Disney Hotels" consist of Disney Ambassador Hotel, Tokyo DisneySea Hotel
	MiraCosta, Tokyo Disneyland Hotel and Tokyo Disney Celebration Hotel
	11

Actual results exceeded the forecast thanks to higher-than-expected accommodation revenue and reduced costs

								[¥ billion]
	Other Business Segment	FY3/21 Forecast		FY3/21 Results		Change		Change
	Net Sales	7.8				(0.2)	(2.9)%
	Operating Profit	(2.5)				00.22	-

Results for other business segment were roughly in line with the forecast 1111

3. Outcome of Cash Outflow Reduction

Major initiatives to reduce cash outflow

[¥ billion]

Forecasted

Actual

reduction

reduction

Major initiatives

amount*1

amount*2

Personnel expenses

• Reduce directors' compensation

About

About

•

Reduce winter bonus payments to full-time employees

• Suspend employment of new Cast Members and reallocate Cast

(31.0)

(41.0)

Members in accordance with Park operations needs

• Receipt of employment adjustment subsidy, etc.

aneousMiscell stsco

• Review promotional activities to attract Guests

About

About

•

Review maintenance operation

(19.0)

(24.5)

•

Suspend special events

• Suspend or downsize entertainment12

programs, etc.

*1 Forecast for FY3/21 compared with actual result for FY3/20 (excluding extraordinary loss)

*2 Actual result for FY3/21 compared with actual result for FY3/20 (excluding extraordinary loss)

Actual amount of capital expenditure (comparison with forecast)

[¥ billion]

FY3/21

FY3/21

Reasons for decrease

Forecast

Result

147.2

108.3

•

Postponement to FY3/22

• Suspending, downsizing and postponing less urgent remodeling works

Cash outflow was steadily reduced as planned

1212

II. Review of 2020 Medium-term Plan

		1. Review of 2020 Medium-term Plan
	Policy:	Strengthen business foundation toward long-tterm
				sustainable growth
				2020 Medium-term Plan	Results
					Up until FY3/20, the Intent to Return
					rate, an indicator of Guests'
					satisfaction, was maiinttaiinedd att hihighh
				To consistently provide a highly	levels
				As the Park environment changed
				satisfying Theme Park experience
				considerably in FY3/21, we took
	Target
			rigorous measures against COVID-19,
					14giving top priority to safety and peace
					of mind
				To achieve record high Theme Park	Withdrawal of quantitative target due to
				attendance and operating cash flow* in
				changes in management environment
				FY3/21
				*Operating cash flow = Profit attributable to owners of parent + Depreciation and amortization

Up until the COVID-19 pandemic, we had been achieving growth in both attendance and operating cash flow, with Guests' satisfaction maintained at high level

1414

1. Review of 2020 Medium-term Plan

		2020 Medium-term Plan			Results
						 Tokyo Disney Resort 35th Anniversary
		Strengthen	Novelty			event
				 Introduction of "Soaring: Fantastic Flight"
		structural aspects		Made steady progress	 Opening ofof TokyoTokyo DisneylandDisneyland LargeLarge--
	Core	to provide "novelty"		up until the end of	Scale Development area
	and "comfort"		FY3/20		 Renovation of service facilities
	Bu		Comfort			 Start offering official app and added new
	siness			↓		functions
		Create a	In FY3/21, reviewed	 Started hiring "Theme Park operations
	Stra	Strengthen non-	employees"
	comfortable	action plan to give top	 Expanded the scope of employees
	structural aspects
					home
	tegy	[human resources	workplace	priority to taking		working at home
	environment	measures against	 Providing nursery facility within the
		capacity] on a		COVID-19	15	company
		long-term	Promote a
				 Improve hospitality
		sustainable basis
		tangible sense of
					 Strengthen career support
			personal growth
	ncialFina cyPoli
	Allocate operating cash flow to growth	Up until FY3/20, operating cash flow was allocated to growth investments.
		investments and aim to enhance corporate	In FY3/21, secured liquidity on hand despite the challenging business
		value		environment, and continued with our growth investments

Strengthened business foundation by steady execution off actitivitiities
based on core business strategy and continued with growth investments.
Reviewed action plan in FY3/21 due to the COVID-19 pandemic	1515

2. Actions Taken in FY3/21
				FY3/21
Temporary	July	Aug.	Sep.	Oct.	Nov.	Dec.	Jan.	Feb.	Mar.
closure
Measures planned and executed amid to COVID-19 pandemic
	 Advance ticket
	reservation system
								service on app
								including those who
								for Park
Swiftly implemented digital initiatives as part of our infection countermeasures
by bringing forward some measures that had been under discussion and
			applying the results of past actions
Measures implemented as part of our infection countermeasures
	will be examined for possible upgrades and expansiions.
	Transformation of business structure is required to prepare
		for sudden changes in the environment		1616

III. Outlook for the Fiscal Year Ending March 2022

1. Outlook for the Fiscal Year Ending March 2022

In view of the application of the "priority measures to prevent the spread of disease" to Urayasu City, Chiba Prefecture, and the opaque external environment ahead, it is difficult to formulate a

lt t f l t

highly accurate financial forecast of results for FY3/22. We will therefore disclose our forecast when circumstances change for the better.

Policy and Funding Status for FY3/22

Sales

Cost

Capex

DP

Funding

Dividend

• Implement rigorous infection countermeasures and set limits on attendance to ensure safety and peace of mind throughout the year
• Continue discussing measures to increase net sales per Guest
• Enhance cost efficiency in line with attendance level
• Re-examinework volume and scrutinize non-essential/non-urgent costs
• Project capital expenditure to be in the ¥130 billion range and depreciation and amortization expenses to be in the ¥45 billion range
• The depreciation method, mainly for tangible assets of Tokyo Disneyland will be changed from declining-balance to straight-line
• Prepare capital resources* in order to secure working capital for use and capital for

growth investments

*Include line of credit [¥200 billion] and unissued corporate bonds [¥100 billion]

• An annual dividend per share is not yet determined although policy of aiming steady payout of cash dividends

Current Operation Status

• Apr. 20-May 11: Daily attendance is limited to 5,000 for each Park, and Park operating hours are shortened to from 9AM to 8PM
• Each Disney Hotel operates with limited number of rooms sold
• Ikspiari shortens operating hours
• Disney Resort Line continues its operation

 Halt alcohol sales in the resort from Apr. 28-May 11

181818

IV. For Long-term Sustainable Growth

Kyoichiro Uenishi

Representative Director, President and COO

1. For Long-term Sustainable Growth [e.g., ESG]

Strategy Roadmap

Address global environmental and social issues as an integral part of our management and business strategies to aim for more sustainable management

ESG project team launched

[Nov. 2020]

Contribute to achieving the SDGs

20

2020 Medium-term

Plan

Preparation

period

Next Medium-term

Plan

Apr. 2017	Apr. 2021	Apr. 2022 [tentative]

Establish strategies to contribute to a sustainable society and achieve profit growth as a corporation, and plan to announce them in the spring of 2022 2020

1. For Long-term Sustainable Growth [e.g., ESG]

Recognition of Environmental Change

Issues recognized prior to the COVID-19 pandemic

	Strategies so far			Risks
[1]	Continuously make large-scale investments to generate value to motivate		Surging development/construction costs
	Park visits
[2]	Secure a large volume of Guests to sustain the apparatus industry		Decrease in total population
[3]	Secure a sufficient number of employees to attend to the large volume of		Decrease in working-age population
	Guests
[4]	Make concentrated investments in the Maihama area			Climate change/natural disasters
		＋

Recognition gained through COVID-19 pandemic

・Value of happiness brought about by person-to-person interactions

	・Diversified perspectives on leisure activities resulting from altered awareness of the 3 Cs [Closed spaces; Crowded places;
	Close-contact settings]	21
	Future Direction of Businesses
	Existing	Evolve business operations to offer options that more closely cater to Guest needs; Improve our capacity to
	address fluctuations in demand to enhance the added value of the Tokyo Disney Resort as a whole
	businesses	E.g., Leverage innovation	E.g., Enhance Guest
		engagement
	New	Take on the challenge of establishing new businesses that help us resolve issues and enhance values in our
	core business, and provide us with growth opportunities
	businesses	E.g., Help children gain	E.g., Labor saving; flexible	E.g., Measures against heat
		experience	staffing; manpower saving	and cold; energy consumption

Consider addressing ESG issues as an integral part of management
and business strategies	2121

• 2. Environmental Materiality [Updates on Discussions]

Materiality	Direction of measures	What we aim to be	Indicator (KPI)	Quantitative ttarget/t/	TTargett	SDG to
Target status	FY	contribute
				to

and e chang	to uresMeas
disasters natural	climate saddres

epromot to resMeasu etysoci type-tionacircul

	Contribute to achieving		40% reduction from	2030
Contribute to achieving	a decarbonized society by	Amount of	FY 3/19 level
a decarbonized society	reducing greenhouse gas	greenhouse gas
[Mitigate climate change]	emissions and mitigating	emissions	Net zero emissions	2050
	climate change

		What we aim to be
Strengthen resilience
[Adaptation to climate	Identify risks posed by natural disasters and rising temperatures stemming from
change]	climate change and consider measures to strengthen the resilience of facilities and
	manuals
		resources engineering
Adopt resource-saving	・Adopt resource-saving products/services and easily reusable/recyclable resources, engineering
	and design with the aim of contributing to achieving a circulation-type society
products/services and
・	While pursuing conventional recycling projects, focus on new solutions to help increase the
reduce waste	22
	recycling rate and achieve resource sustainability
Use sustainable	Give preference to resources that promote sustainability with the aim of contributing to resource
resources	sustainability
Make effective use of	Strive to reduce water intake and promote wastewater recycling with the aim of contributing to water
water resources	resource sustainability
	・Strive to reduce the amount of chemical substances used and implement proper management
Contribute to forming		thereof to alleviate environmental impact, thereby contributing to forming symbiotic relations
	with nature
symbiotic relations with	・Strive to reduce the amount of air pollutant emissions to alleviate environmental impact, thereby
nature		contributing to forming symbiotic relations with nature
	・Strive to preserve biodiversity in the local communities in which we engage in business, thereby

contributing to forming symbiotic relations with nature

Promptly strengthen measures to address environmental issues
that exert prominent impacts on society at large	2222

Ｓ Ｇ 3. Social and Governance Materiality [Updates on Discussions]

Ｓ Society

	Materiality	Direction of measures
		Foster HR with spontaneous creativity
	Employees	Promote HR diversity
		Provide a fulfilling workplace environment
	Children	Help children achieve their hopes and dreams
		Respond to changes in social and Guest needs based on
	Diversity ＆ Inclusion	employees' diverse values
		human rights
		Implement systematic measures to respect human rights
	Supply chain management	Promote sustainability23 and collaboration across supply chains

Ｇ Governance

	Materiality	Direction of measures
	Fairness in business	Fair decision-making
	management
	Stakeholder engagement	Achieve relationships of trust and collaboration with stakeholders
	based on open dialogues

To be determined based on stakeholder engagement and further discussions 2323

Appendix

[Reference] Extraordinary Losses

Changing factors of extraordinary losses

			[¥ billion]
	Full Year	1st Half	2nd Half

Decrease in operating expenses

	A part of fixed expenses during temporary closure of both Parks	19.7	19.7	-
	transferred to extraordinary loss
	Decrease in personnel expenses for part-time employees, sales	47.5	2121.44	2525.99
	promotion costs, and maintenance costs, etc.

	Extraordinary losses (Loss on temporary closure)	(12.9)	(13.3)	0.3
		Personnel expenses (A part of personnel expenses during Park closure,	(0.6)	(0(0.7)7)	00.11
		etc.)
		25
		Miscellaneous costs (A part of outsourcing and fixed asset tax during	(3.4)	(3.6)	0.2
		Park closure, etc.)
		Depreciation and amortization expenses (amount during Park closure,	(8.1)	(8(8.1)1)	-
		etc.)
		Personnel expenses in costs of food and beverages and disposal of	(0.6)	(0.6)	-
		merchandise and raw material, etc.
	Extraordinary losses (Impairment losses)	(5.6)	-	(5(5.6)6)
	Total extraordinary losses	(18.5)	(13.3)	(5.2)

Extraordinary losses increased mainly because of loss on
temporary closure and impairment losses	2525

[Reference] Changes in Full FY Results (Past Five FYs)
Consolidated net sales and	Consolidated operatiing profifit
	operating margin				and profit
Consolidated net sales [¥ billion]			Consolidated operating profit [¥¥ billion]billion]
Operating margin [%]
			Profit attributable to owners of parent [¥ billion]
		525.6					129.2
477.7	479.2			113.1
	464.4		110.2		96.8
							90.2
					82.3
					81.1
23.7	23.0	24.6	20.9						62.2
				170.5
										(45.9)(54.1)
				(27.0)
3/17	3/18	3/19	3/20	3/21	3/17	3/18	3/19		3/20	3/21
										262626

[Reference] Changes in Quarterly Results (Past Five FYs)

Consolidated net sales [¥ billion]

Consolidated operating profit [¥ billion]

1st quarter

106.9	109.8	120.7	120.5
22.7	25.0	29.8	31.9
			6.1

(15.6)

3/17 3/18 3/19 3/20 3/21

3rd quarter

133.0	131.9	148.9	141.7
			77.9
38.8	37.2	44.8	40.0

4.3

3/17

3/18

3/19

3/20

3/21

2nd quarter

120.5 122.7 129.9 127.8

52.9

30.4 31.0 32.0 29.0

(8.5)

27	3/18	3/19	3/20	3/21
3/17

4th quarter

117.1	114.7	125.9
			74.2
21.0	16.8	22.5	33.4
			(4.1)

(26.1)

(26 1)

3/17

3/18

3/19

3/20

3/21

272727

Ｏｒｉｅｎｔａｌ Ｌａｎｄ Ｃｏ., Ｌｔｄ.

Investor Relations Group, Finance/Accounting Department

URL: www.olc.co.jp/en

This document includes statements about Oriental Land's plans, estimates, strategies and beliefs. The statements 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

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.