april 2020april, 2020 oriental land co., ltd. · magnificent hospitality guestsatisfaction employee...

October, 2020Oriental Land Co., Ltd.

This material has been specifically prepared for institutional investors who are not familiar with our company, and is not presentation material for the earnings presentation.

I. Business OutlineI-I. Theme Park BusinessI-II. Hotel BusinessI-III. Overview

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 informationavailable 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.

Cautionary Statement

Contents

II. 2020 Medium-term PlanIII. Large-Scale Investment PlansIV. Policy for Long-Term GrowthV. Appendix

Our mission is to create happiness and contentment

by offering wonderful dreams

and moving experiences created with

original, imaginative ideas

“We pursue businesses that fill your heart with energy and happiness”

We strive to create new value in a high-value business for enriching and nourishing people’s hearts and appealing to abundant humanity and happiness

Corporate Mission Business Domain

Corporate Data Stock Information

Established July 11, 1960

Total Assets [consolidated] ¥1,010.6 billion

Shareholders’ Equity

[consolidated]¥820.2 billion

Bond Ratings JCR : AA [Stable]R&I : AA- [Stable]

Stock Listing Code No.

Tokyo Stock Exchange,First Section4661

Investment Unit 100 shares

Stock Price ¥15,440

Aggregate Market Price ¥5,615.3 billion

[As of March 31, 2020] [As of October 28, 2020]

I. Business Outline

Corporate Profile

Tokyo Bay

Tokyo DisneySea

Tokyo DisneylandTokyo DisneySeaHotel MiraCosta

Tokyo Disney Resort Official Hotels

Disney Hotels [under direct management]

Shops and RestaurantsCinema complex, etc.

The first Disney ThemePark outside of the U.S.

The only “Sea”-themed Disney Theme Park

in the world

History Tokyo Disney Resort1960 Oriental Land Co., Ltd. [OLC] was established

1962OLC and Chiba Prefecture concludedthe Urayasu District Land ReclamationAgreement

1964 Reclamation work began off the coast of Urayasu [completed in 1975]

1979

OLC and Walt Disney Productions [currently, Disney Enterprises, Inc.] concluded an agreement on the licensing, design, construction and operation of Tokyo Disneyland

1983 Tokyo Disneyland opened

1996 Listed on the first section of the TokyoStock Exchange

2000 Ikspiari and Disney Ambassador Hotel opened

2001 Disney Resort Line, Tokyo DisneySea, and Tokyo DisneySea Hotel MiraCosta opened

2008 Tokyo Disneyland Hotel opened

2013 Milial Resort Hotels Co., Ltd. (MRH) acquired all stocks of Brighton Corporation Co., Ltd.

2016 Tokyo Disney Celebration Hotel opened

Managing and operating a large scale theme resort offering versatile entertainment facilities

IkspiariDisney

Ambassador Hotel

TokyoDisneyland

Hotel

5

I. Business Outline

History and Business Description

Monorail service provided around

the resort

Vast Land HoldingsOwn approx. 2,000,000 m2

[approx. 500 acres] of land easily accessible from central Tokyo

Huge MarketApprox. 30 million of high income

households living within 50km [30 miles] radius

Establish stable earnings base by implementing structural/non-structural strategies that capitalize on the advantageous location 6

Raise the level ofEmployee Satisfaction

Raise the level ofGuest Satisfaction

Diverse measures and education/training programs are implemented with as much focus on

employee satisfaction as on Guest satisfaction.

Tokyo

ChibaKanagawa

SaitamaIbaraki

1. Prime Locations

3. Intangibles: Human Resources with Magnificent Hospitality

I. Business Outline

Only OLC operates Disney Theme Parks in Japan

Period

2046 at maximum (45 years since Tokyo DinseySea opened)Note: When facilities open as planned, the agreement period can be extended to 2076 at maximum

ActivitiesCovered

Management and operation of TokyoDisney Resort, etc.

Consideration Payment of royalties fees based on net sales [yen basis]

Relationship No capital or personnel relationship

2. License Agreement with Disney

7

I. Business Outline

Increasingcorporate value

“CreatingHappiness”

(1) Prime Locations(2) License Agreement with

Disney(3) Intangibles: Human

Resources

HotelBusinessSegment

ThemePark

Segment

OtherBusinessSegment

New investment

Attract more

Guests /Increase sales per

Guest

Enhanced appeal increases cash flow

Enhance appeal by making additional investments on an

ongoing basis

Deliver more happiness by making tangible and intangible investments to increase corporate value

Unique competitive advantage Business model Value provided

107.3 113.1 110.2129.2

96.8

(51.4)

73.9 82.3 81.1 90.262.2

(51.1)

465.3 477.7 479.2

525.6

464.4

23.1% 23.7% 23.0% 24.6%20.9%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

Influence of temporary

closure

Net sales and Operating Margin Operating Profit and ProfitConsolidated net sales [¥ billion]

Operating margin

Consolidated operating profit [¥ billion]Consolidated profit attributable to owners of parent [¥ billion]

3/16 3/17 3/18 3/19 3/20

3/16 3/17 3/18 3/19 3/20

[FY]

[FY]

Net sales and operating profit decreased as a result of a temporary closure of 4 months and giving utmost priority to safety and peace of mind in Park operations

I. Business Outline

Influence of temporary

closure

[Forecast]185.4

[Forecast](27.7)%

[Forecast][Forecast]

3/21

3/21

Theme Park Segment

Tokyo DisneylandTokyo DisneySea

Hotel Business Segment

Tokyo Disneyland HotelTokyo DisneySea Hotel MiraCostaDisney Ambassador HotelTokyo Disney Celebration Hotel

and others

Other Business Segment

IkspiariDisney Resort Line

and others

Results for FY ended 3/20

Breakdown by Segment and Content of Segments

More than 80% comes from the Theme Park Segment

Consolidatednet sales:

¥464.4 billion

Consolidatedoperating profit:

¥ 96.8 billion

82.7%

13.9%3.4%

82.5%

15.3%2.2%

I. Business Outline

Theme Park attendance has increased driven by each anniversary event,exceeding 30 million on a stable basis

Tokyo Disneyland20th Anniversary

Tokyo DisneySea5th Anniversary


Opening ofTokyo DisneySea

Tokyo Disneyland15th Anniversary

Tokyo Disney Resort25th Anniversary




[FY]

[million people]

17.46[+4.6%]

Note: Attendance figures for FY 3/12 and 3/17 decreased from the previous fiscal years respectively because of the influence of earthquakesAttendance figure for FY 3/20 decreased from the previous fiscal year respectively due to the spread of COVID-19

Opening ofTokyo Disneyland

Annual Theme Park Attendance

I-I. Theme Park Business

3/84 3/02 3/04 3/07 3/09 3/12 3/14 3/17 3/193/99

29.01[(10.9)%]

25.47[+2.6%]

25.82[+4.2%]

25.35[(0.1)%]

3/21

27.22[+7.1%]

31.30[+13.8%] 30.00

[(0.6)%]

32.56[+8.2%]

%:year on year

22.05[+27.4%]

9.93

17.46[+4.6%]

[Forecast] 9.50

[(67.3)%]

3/20

1.571.81

2.55

2.953.13

2.90

5.0%6.0%

8.5%9.8% 9.6% 10.0%

MetropolitanArea

•Largest number of Guests accounting for approx. 60%

Others•Mainly Chubu and Koshinetsu regions•Tends to grow in anniversary years

Stable Theme Park attendance expected to continuebased on region-specific Guest attraction strategies

Annual Attendance29.01 million people[FY ended March 2020]

Overseas

•Increases in tandem with the growing number of tourists visiting Japan

•More Guests can be attracted from this category

[FY]

Breakdown of Guests by Region Number and Ratio of Overseas GuestsNumber of oveaseas Guests [million people]Ratio of overseas Guests


MetropolitanArea

62.9%

Other areas in Japan27.1%

Overseas10.0%

3/15 3/183/17 3/19 3/203/16

Achieved increase in net sales per Guest based on meticulous pricing strategy

2,252 2,286 2,256 2,286 2,341 2,437

4,043 3,964 4,074 3,989 4,122 3,877

4,660 5,0075,264 5,339 5,352 5,292

[FY]

10,955 11,25711,60611,594 11,815

TicketReceipts

•Ticket receipts per Guest increase over two years since ticket price revision

Merchandise

•Tend to increase in anniversary event years

•Development of contents, such as Duffy & Friends series, lead to increase in earnings

Food andBeverages

•Stable net sales maintained regardless of whether or not events are held

Merchandise

TicketReceipts

Food andBeverages

[¥]

Net sales per Guest and Breakdown


3/203/15 3/16 3/17 3/18 3/19

11,614

22.0524.82 25.47 25.02 24.77 25.82 25.42 27.22 25.82 25.37 25.35 27.50

31.30 31.38 30.19 30.00 30.1032.56

29.015,500

5,8006,200 6,400

6,9007,400

8,200

7,500

Theme Park attendance remain at a high level even after ticket prices were raised due to pricing strategy based on experience value

April 1, 2016 ¥7,400 Theme Park experience value was increased by opening of new attractions and shows and enhancing services and environment

October 1, 2019 ¥7,500 Revision along with consumption tax reform [consumption tax: 8% 10%]

April 1, 2020 ¥8,200The Park experience value increased as a result of opening new facilities, redesigning entertainment programs, and using IT to improve the convenience of Guests

Ticket price revision in past years

Increase in Theme Park value

Price sensitivity survey resultNote: Take external environment including tax hike into consideration

Ticket price revision policy: Comprehensively consider


Ticket price [¥]

[FY]

Annual Theme Park attendance [million people]

3/203/173/163/153/123/073/02 3/21

[Forecast] 9.50

Strengthen Hotel business segment with the growth and expansion of Tokyo Disney Resort

Disney Ambassador Hotel

Tokyo DisneySea Hotel MiraCosta Tokyo Disneyland Hotel Tokyo Disney

Celebration Hotel

Deluxe-type Deluxe-type Deluxe-type Value-type

504 rooms 502 rooms 706 rooms 702 rooms

Own four Disney Hotels (about 2,400 rooms) which make net sales of ¥56.7 billion as total [FY 3/20]New Disney Hotel based on Toy Story film series is scheduled to launch in FY 3/22New Disney Hotel located inside Tokyo DisneySea is scheduled to launch in FY 3/24

Own Brighton-brand hotels (about 600 rooms) which make net sales of ¥7.5 billion as total[FY 3/20]Hyatt Regency Seragaki Island Okinawa opened in August, 2018 (joint project of three companies)

Disney Hotels

Other Hotels

I-II. Hotel Business

17

Net sales and operating margin for Hotel Business

Both net sales and operating profit decreased due to the temporary closure of the Parks

Net sales [¥ million]

Operating margin

I-II. Hotel Business

[FY]3/17 3/19 3/203/18 3/21

63,17366,144 66,447

72,427

64,375

25,130

21.8% 22.1% 24.5% 26.5%22.9%

3/16

(23.8)%

[Forecast]

[Forecast]

Opening of Tokyo Disney Celebration Hotel

34.5 25.4 22.1 33.6 38.7 34.5 30.6 34.1 31.1 40.0 41.9 53.6 66.981.4

(51.4)

18.414.6 11.1 12.0 11.5 10.4 9.2 9.9 9.1 10.3 11.3

15.1 18.6 20.6 24.2 23.7 23.1 23.7 23.0 24.6

3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 3/19 3/20 3/21

Operatingcash flow* 26.7 22.2 23.1 50.6 66.8 64.5 61.7 59.0 59.2 58.3 67.8 72.1 65.1 74.0 87.6 107.5 106.7109.9 120.6 118.5 128.5101.6 (14.0)

Depreciationand

amortization11.6 12.4 18.4 37.9 47.9 45.9 44.5 43.3 42.9 43.6 49.7 46.6 42.2 41.9 36.1 36.9 34.6 35.9 38.2 37.3 38.2 39.4 37.0

Capitalexpenditures 59.8 130.4182.2 109.7 14.8 29.2 46.8 43.1 54.8 52.6 40.1 19.4 27.9 23.2 28.7 20.3 37.0 39.7 50.9 59.8 86.0 139.6 147.2

Consolidated operating profit [¥ billion]Operating margin [%]

Unconsolidated operating profit [¥ billion]

Single park eraOperating margin: approx. 20%

Burdened with high depreciation and amortization expenses/increase in costs Operating margin: approx. 10%

Operating margin improvesOperating margin: approx. 20%

Operating profit and operating margin

Opening of Tokyo DisneySea

Note: The results before 3/99 are unconsolidated *Operating cash flow=Profit attributable to owners of parent + Depreciation and amortization

Operating margin is expected to rise to a higher level after pulling through the phase of high burden of depreciation and amortization expenses

114.4

[FY]

19

96.8

38.0

11.5

110.6 107.3

20.9

113.1 110.2

I-III. Overview

Note: Depreciation and amortization costs of FY2010,2011, 2019 includes that of which have been transferred to extraordinary losses

[Forecast](27.7)

[Forecast]

129.2

Allocate unused land for commercial purposes and level outTheme Park attendance to achieve growth

Quarterly consolidated operating profit

• Own land that can be used for commercial purposes in Maihama, including parking space and head office area

Promotion of leveling throughout the year

[FY]

Expansion in Maihama Area Leveling of Quarterly Results

I-III. Overview

[¥ billion]

25.0

29.831.931.0 32.0

29.0

37.2

44.8

40.0

16.8

22.5

(4.1)3/18 3/19 3/20

Influenceof

temporary closure

Net Sales 248.4 59.1 (189.2) (76.2)

Theme Park Segment 205.3 47.8 (157.5) (76.7)

Hotel Business Segment 34.7 8.1 (26.5) (76.5)

Other Business Segment 8.3 3.1 (5.1) (62.4)

Operating Profit 60.9 (24.1) (85.1)

Theme Park Segment 49.9 (19.3) (69.2)

Hotel Business Segment 9.0 (3.6) (12.7)

Other Business Segment 1.8 (1.3) (3.1)

Ordinary Profit 62.0 (24.7) (86.8)

Profit Attributable toOwners of Parent 43.0 (30.0) (73.1)

ConsolidatedStatement of Income

First Half of FY 3/21[¥ billion]

Change[¥ billion]

First Half of FY 3/20[¥ billion]

Change[%]

I-III. Overview

Year-on-year comparisonNet Sales

The temporary closure for about 4 months andlimited attendance of Tokyo Disneyland®, Tokyo DisneySea® and Disney Hotels after re-opening of Theme Parks as a measure to prevent the spread of COVID-19 resulted in decrease.

Operating Profit

Declined year on year owing to decreased net sales, although operating expenses fell as a result of the temporary closure of both Theme Parks for about 4 months and part of the operating expenses were transferred to extraordinary loss.

Net sales and operating profit decreased as a result of the temporary closure of4 months and giving utmost priority to safety and peace of mind in Park operations

I-III. Overview

Net Sales 464.4 185.4 (278.9) (60.1)Theme Park Segment 384.0 152.4 (231.5) (60.3)

Hotel Business Segment 64.3 25.1 (39.2) (61.0)

Other Business Segment 16.0 7.8 (8.1) (50.8)

Operating Profit 96.8 (51.4) (148.2) -Theme Park Segment 79.6 (43.1) (122.7) -

Hotel Business Segment 14.7 (5.9) (20.7) -

Other Business Segment 2.1 (2.5) (4.7) -

Ordinary Profit 98.0 (53.8) (151.9) -Profit Attributable to Owners of Parent 62.2 (51.1) (113.3) -

Attendance [million people] 29.01 9.50 (19.51) (67.3)Net Sales per Guest [¥] 11,606 12,710 1,104 9.5

Ticket Receipts 5,292 6,250 958 18.1

Merchandise 3,877 3,620 (257) (6.6)

Food and Beverages 2,437 2,840 403 16.5

Forecast forFY Ending 3/21

[¥ billion]

Change[¥ billion]

ConsolidatedStatements of Income

Results for FY Ended 3/20

[¥ billion]Change

[%]

Net sales and operating profit decreased as a result of the temporary closure of4 months and giving utmost priority to safety and peace of mind in Park operations

24

To consistently provide a highly satisfying Theme Park experience

To achieve record high Theme Park attendance and operating cash flow* in FY3/21

Targets

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

Review of 2020 Medium-term Plan will be announced along with end-of-fiscal-year financial results including results for second half.

1. Core Business Strategy

Strengthen structural aspects to provide “novelty” and “comfort”

Strengthen non-structural aspects (human resources capacity) on a long-term sustainable basis

2. Financial Policy Allocate operating cash flow to growth investments and aim to enhance corporate value

Strategies

Basic approach remains unchanged. But priority will be given to taking measures against COVID-19.Business activities will be appropriately examined in line with

changes in the management environment.

Withdrawal of quantitative targetdue to changes in

management environment

III. 2020 Medium-term Plan

15 17.525 25 25

30 3035 35 37.5 40 42

26

3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 3/19 3/20 3/21

Our policy of aiming for stable dividend payout remains unchanged

Cash dividendsAnnual cash dividends per share

Annual cash dividends [yen]

[FY]Note: Dividends are retrospectively calculated to reflect the stock split on April 1, 2015.

[Policy]Aim at steady payout of cash

dividends

Policy: Allocate operating cash flow to growth investment with the aim of enhancing corporate value

• Share repurchase by tender offerRepurchase period Total number of shares Proportion of total shares issued Total repurchase cost

January 31 to March 2, 2020 1,500,000 shares 0.41% (Rounded to the second decimal place) ¥20,745,000,000

Share repurchase

II. 2020 Medium-term Plan

[Forecast]

Although our policy of aiming for stable dividend payout remains unchanged, we plan to reduce dividend in order to secure liquidity on hand and funds for growth investment under the current challenging management environment.

44

Notes: 1) The new themed port will be connected to other areas of the Parkthrough a pathway between Arabian Coast and Lost River Delta

2) The image above represents the current concept and is subject to change

Consists of three areas, four attractions and a hotel

III. Large-Scale Investment Plans

Note: This information is subject to change

Location Guest parking area diverted to area used to expand Tokyo DisneySea

Area About 100,000 m2 [about 140,000 m2 including backstage area]

OpeningFY 3/24 [scheduled]Note : Due to extension of the term for determining specifications in some facilities, scheduled time of introduction has been changed from FY 3/23 to FY 3/24

Theme Magical springs that lead to a world of Disney fantasy

Themes of the three areas Frozen Tangled Peter pan

Number of facilities

1 attraction1 restaurant

1 attraction1 restaurant

2 attractions1 restaurant

Conceptimages


©Disney

Ongoing investment will be continued toward further growth

Large-ScaleExpansion Project

About ¥250 billion

Boost-up effect on net sales by ¥50 billion annually

Expected to reach the range of mid-¥500 billion to the high-¥500 billion

Investment Amount

Investment effect: net sales

Consolidated net sales

Through newly created “experience value,”


©Disney/Pixar

The investment amount of each year after FY 3/22 is under investigation


New Disney Hotel Inspired by Toy Story Film Series Development Site

FY 3/22, Approx. ¥31.5 billion

Soaring: Fantastic FlightJuly 23 2019, Approx. ¥18 billion

Tokyo DisneySea Large-Scale Expansion Project Development Site

FY 3/24, Approx. ¥250 billion

Tokyo DisneylandLarge-Scale Development

September 28 2020, Approx. ¥75 billion

Tokyo DisneySea

Tokyo Disneyland

Tokyo Disney Resort

<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 and utilization of new development will create an environment with a higher degree of Guest satisfaction from qualitative as well as quantitative standpoint

<Hotels within Tokyo Disney Resort>To add more value to Tokyo Disney Resort as a whole, improve the environment as a resort, including making more guest rooms, and increase value of the stay

New Business

Establishment of Oriental Land Innovations

Regardless of the establishment of new company, we will continue on the research on the business field expected to grow, and widely consider to contribute to persistent growth of the OLC group

Formulate policy from a long-term perspective and realize plansby taking the internal/external environment into consideration

Further boost the level of net sales with continued large-scale investment

Broader investigation for further development

IV. Policy for Long-Term Growth

Steady progress made in measures to enhance “novelty” and “comfort”

Measures implemented in FY 3/20

New contents • Introduced new attraction “Soaring: Fantastic Flight”• Implemented new events and programs

Digital technology • Expanded functions offered by Tokyo Disney Resort App• More Disney Hotels offering online check-in service

Overseas Guests • Established acceptance mechanisms and strengthened marketing to attract more overseas Guests

Service facilities • Constructed multistory parking structure• Renovated Tokyo Disneyland main entrance

V. Appendix

©Disney

Introduction of “Soaring: Fantastic Flight”

Theme Park Project Time of introduction/Investment value

Tokyo DisneySea Major attraction “Soaring: Fantastic Flight”July 23, 2019

Approx. ¥18.0 billion

Effect “Novelty”Introduced Soarin’, a popular attraction atDisney Theme Parks abroad, adding themes and scenes exclusive to Tokyo DisneySea

With novel themes and a realistic sensation, the attraction achieved a higher-than-expected level of satisfaction, attracting more Guests

V. Appendix

©Disney

Introduction of “Soaring: Fantastic Flight”

Effect “Comfort”

• Increase in attraction capacity

• Guest retention time better balanced out within the park

Guest retention time is now balanced out better, improving “comfort”

Duration of experience: Approx. 5 min.Maximum capacity: 87 persons per theaterNumber of theaters: 2

After entering the main entrance, many Guests tended to first proceed to the left side of the Park, then moved clockwise.

By positioning the new attraction on the right side of the main entrance, Guests were dispersed, which better balanced out Guest retention time.

V. Appendix

New events and programs focused on “novelty”contributed to attracting Guests

New events and programs implemented in FY 3/20

Note: We started temporary closure of both Parks on February 29, 2020 in response to the government’s request to call off events and other large gatherings

April May June July August September

October November December January February March

Disney’s Easter(April 4 to June 2)

Duffy’s Sunny Fun(June 6 to August 27)

Donald’s Hot Jungle Summer(July 9 to September 1)

HalloweenOct. 31)

Disney(Sep. 10 to

Jamboree Mickey!*From Oct. 14

Very Very Minnie*

(Jan. 10 to Mar. 19)

Temporary closure from February 29

Tokyo DisneySea

Tokyo Disneyland

V. Appendix

Utilization of digital technology

We regard digital technology as a growth potential and will explore further developments

• Jul. 2019 Started offering Disney FASTPASS® tickets through official app

• Feb. 2020 Added to official app the Disney Photo function for enjoying photo services within Theme Parks*

Increased the number of Disney Hotels offering online check-in service

• May. 2020 Introduced English version of Tokyo Disney Resort App

©Disney

Disney Photo functionObtain Disney FASTPASS® tickets

Available before entering Theme Parks

• Purchase Park tickets Book restaurants Check merchandise sold at Parks

• Check waiting time Online check-in at Hotels

Available after entering Theme Parks

• Obtain Disney FASTPASS® tickets Purchase merchandise sold at Parks

• Register for show/parade viewing lotteries View and purchase photos (Disney Photo)

Functions offered via Tokyo Disney Resort App

Note: Functions in red font were added in FY 3/20

Online check-in at Hotels

Note: Service currently suspended for system adjustment

V. Appendix

14.67

21.3624.82

29.77 31.6327.77

10.7%8.5%

10.3% 9.9% 9.9% 10.4%

3/15 3/16 3/17 3/18 3/19 3/20Source: Prepared by the OLC Group based on materials created by the Japan National Tourist Organization (JNTO)

Strengthened acceptance mechanisms and marketing

Measures to welcome overseas Guests

Acceptancemechanism

• Started offering reservation website in multiple languages and provided more information• Expanded communication tools

Marketingactivities

• Implemented marketing activities tailored to each country• Expanded online travel agents (OTA*)

Number of Inbound Travelers andRatio of Guests among the Travelers Number/Ratio of Overseas Guests

[FY]

*Online Travel Agent which exclusively offers online service

1.571.81

2.552.95 3.13

2.90

5.0%6.0%

8.5%9.8% 9.6% 10.0%

3/15 3/16 3/17 3/18 3/19 3/20[FY]

V. Appendix

Renovated high-traffic service facilities to enhance “comfort”

• Started operating in July 2020• Latest face authentication system installed

at gate for Annual Passport holders• Changed gate design to expedite entrance• Introduced multilingual functionality at ticket

vending machines

Renovated service facilities

©Disney

Tokyo Disneyland main entrance

• Started operating in July 2019• Increased parking space near Tokyo

Disneyland main entrance• Improved Guest guidance efficiency

Multistory parking structure

V. Appendix

Strengthened both hospitality skills and operational efficiency by creating a comfortable workplace environment and implementing measures to encourage Cast Members to feel a

tangible sense of personal growth

Create a comfortableworkplace

environment

Rectify uneven distribution of

workforce among job types and time slots

• Expanded housing assistance program for new Cast Members residing in remote areas

Addresstransformations in

workstyles

• Started hiring “Theme Park operations employees” under new employment category

• Revised systems for leave of absence and allowances• Opened a childcare center to support employees returning to work after taking

childcare leave• Expanded the scope of employees working at home, a system introduced on a

trial basis

Promote a tangiblesense of personalgrowth

Improve hospitality

• Implemented area-based initiatives for Cast Members to cooperate across divisions

• Implemented a new pre-OJT training program named “Debut into the Magic”• Implemented measures to enhance Cast Members’ hospitality in preparation for

the opening of the Tokyo Disneyland Large-Scale development area

Strengthen career support

• Expanded programs offered at OLC Career College, which supports Cast Members’ career development

We aim to create a more comfortable workplace environment for Cast Members and offer enhanced hospitality

V. Appendix

We aim to achieve a system where Guests, Cast Members,and Oriental Land can all benefit

Introduction of “Theme Park operations employees”

Effect

Outline

Employment plan Plan to employ 3,000 to 4,000 by FY 3/23

Theme Park operations employees Part-time Cast Members

Employment status Full-time employee Part-time employee

Workstyle Full time Number of working days/hours can be selected

Job type Engages in multiple types of jobs Basically engages in one type of job

Oriental Land• Further increase in job retention rate of well-experienced Cast Members capable of offering superior hospitality• Stable business growth based on stabilized employment

CastMembers

• Create opportunities for growth• Broader choice of workstyles, diversified workstyles• A sense of security gained due to long-term stable

employment

Guests• Able to enjoy stronger operational

efficiency and enhanced service quality backed by bountiful hospitality

V. Appendix

Strengthened human resources in preparation for opening new area

Cast Members’ motivation has further increased as we wait to open the new area

Measures to enhance Cast Members’ hospitality

Implemented a training program to help Cast Members understand the aspiration of Theme Parkdesigners/developersDistributed to all employees a booklet that conveysthe roles of Cast Members

Feedback from Cast Members

“I hope to fully take in the aspiration of the designersand developers of such wonderful facilities, and deliver itto our Guests.” “I hope to offer Guest service that exceeds the imagination so that our Guests will be fascinated not only with the facilities, but also with the Cast Members.”

V. Appendix

Introduce products to strengthen “novelty” and “comfort”Note: The above shows product plans disclosed as of October 28, 2020

Tokyo Disney Resort35th anniversary events

New at Tokyo Disneyland

New at Tokyo DisneySea

Tokyo Disneyland Large-Scale development projects

“Enchanted Tale of Beauty and the Beast”“Fantasyland Forest Theatre”*“The Happy Ride with Baymax”“Minnie’s Style Studio,” etc.

Opened on September 28, 2020[Investment amount: Approx. ¥75.0 billion]Note: The opening date of the indoor theater is

yet to be determined

“Nemo & Friends SeaRider”Opened on May 12, 2017 [Investment amount: Approx. ¥5.0 billion]

“Soaring: Fantastic Flight”Opened on July 23, 2019[Investment amount: Approx. ¥18.0 billion]

“it’s a small world”Opened on April 15, 2018 after remodeling

New daytime parade “Dreaming Up!”Started on April 15, 2018 [Investment amount: Approx. ¥2.4 billion]

Major new products

New nighttime spectacular“Celebrate! Tokyo Disneyland”

July 10, 2018 - April 26, 2019

V. Appendix

Theme Park Projects Time of opening/Investment value

Tokyo Disneyland• Major attraction “Enchanted Tale of Beauty and the Beast”• Indoor theater “Fantasyland Forest Theatre”• Attraction “The Happy Ride with Baymax”• Attraction “Minnie’s Style Studio,” etc.

September 28, 2020

Approx. ¥75.0 billion

Large-Scale Renovation

©Disney

Effect“Novelty” • Beauty and the Beast and other attractions unique to Japan

• First indoor theater at Tokyo Disneyland

“Comfort” • Allow more Guests to experience attractions• Introduce an all-weather-type theater and an indoor restaurant

Finally opened by giving utmost priority to safety and peace of mind in Park operationsNote: These concept images are subject to change

V. Appendix

Note: The opening date of the indoor theater is yet to be determined

Time-limited special rooms at Disney Hotels

Tokyo Disneyland Hotel Disney Ambassador Hotel

Special room themed on KINGDOM HEARTS series(March 26 to June 30, 2019, andJanuary 10 to March 31, 2020*)

Special room themed on Sophia the First(April 7 to July 8, 2019)

©Disney

Note: Terminated earlier than the scheduled date of April 14, 2020 due to temporary closure

Strived to maximize earnings based on revenue managementand procure new demand with novel guest rooms

V. Appendix

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.

ＯｒｉｅｎｔａｌＬａｎｄＣｏ., Ｌｔｄ.Investor Relations Group, Finance/Accounting Department

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

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