your happiness, our growth - オリエンタルランド...big thunder mountain july 4, 1987 8.0...

Annual Report 2014Year ended March 31, 2014

Your Happiness, Our Growth

Editorial PolicyThis report has been designed as a communication tool to facilitate understanding with regard to the Company’s management policies and business strategies among a wide range of readers, including both private and institutional investors.

“Your Happiness, Our Growth” is the overall theme of this Report.

Photographs, charts, and tables have been used to illustrate the Company’s operations in a visual manner in the report.

Forward-looking statementsForecasts and other forward-looking statements are based on the judgments of management in consideration of information available as of the publishing date of this report. However, the Company’s business is easily influenced by the preferences of Guests as well as by social and economic trends. For this reason, the estimates and forecasts contained in this report may be impacted by unforeseen circumstances.

“I want to bring happiness to our Guests”

That is the constant, unwavering thought of each and every one of us Cast Members,

and it is what motivates us to develop and grow.


In order to consistently bring you new discoveries and excitement,

we will continuously reach for new goals and evolve

with our theme parks.

We strive to achieve unrivaled levels of hospitality,

the means through which we connect with our Guests.

Our team of 30,000 devoted dreamers will continue to grow

to bring dreams, moving experiences, happiness,

and contentment, 50 and even 100 years into the future.

We will constantly grow so that we always bring you happinessWe will constantly grow so that we always bring you happiness


30 Review of Consolidated Operations

30 Annual Topics

32 The OLC Group at a Glance

33 Review of Consolidated Operations

33 Theme Park Segment

35 Hotel Business Segment

37 Other Business Segment

54 Financial Section / Corporate Data / Stock Information

54 Six-Year Summary

55 Message from the Officer in Charge of the Finance / Accounting Department

56 Management’s Discussion and Analysis of Operations

62 Consolidated Financial Statements

85 Corporate Data / Stock Information

38 Corporate Governance / Corporate Social Responsibility (CSR)

38 Business Mission

39 Corporate Governance

46 Interview with an External Corporate Auditor

47 Corporate Social Responsibility (CSR)

52 Board of Directors, Corporate Auditors, and Corporate Officers

10 Focus: Your Happiness, Our Growth12 Message from the Chairman

14 Feature 1: The President Discusses the 2016 Medium-Term Plan

22 Feature 2: Factors Behind the Success of the 30th Anniversary

2 Tokyo Disney Resort’s Growth Trajectory

4 OLC Group Digest

8 Eleven-Year Financial Highlights

FACT BOOK 2014

OLC’s Fact Book 2014 provides

a wide range of long-term,

historical data, including financial

indicators and quantitative

management data.

www.olc.co.jp/ir/pdf/

factbook2014.pdf

2014年3月期For the Year Ended March 31, 2014

FACT BOOK

2014

3

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3

5

7

9

13

17

21

22

目次 Contents

連結指標 Financial Results and Key Indicators (Consolidated)

有利子負債の状況 Interest-Bearing Debt

セグメント情報 Segment Information

セグメント別主要施設データ Principal Facility Data Classified by Segment

テーマパークデータ Theme Park Data

連結財務諸表 Consolidated Financial Statements

単体財務諸表 Nonconsolidated Financial Statements

業界動向 Market Data

株式情報 Stock Information

1Annual Report 2014

Contents

9.93 10.01 10.68 10.67 11.98 13.38 14.75 15.88 16.14 15.82 16.03 15.51 16.99 17.37 16.69 17.46

19.816.8 18.4

35.829.5 34.5

’84/3 ’85/3 ’86/3 ’87/3 ’88/3 ’89/3 ’90/3 ’91/3 ’92/3 ’93/3 ’94/3 ’95/3 ’96/3 ’97/3 ’98/3 ’99/3

’84/3 ’85/3 ’86/3 ’87/3 ’88/3 ’89/3 ’90/3 ’91/3 ’92/3 ’93/3 ’94/3 ’95/3 ’96/3 ’97/3 ’98/3 ’99/3

38.4 44.159.8

27.8 25.6

26.7

’84/3 ’85/3 ’86/3 ’87/3 ’88/3 ’89/3 ’90/3 ’91/3 ’92/3 ’93/3 ’94/3 ’95/3 ’96/3 ’97/3 ’98/3 ’99/3

* Cash flow from operating activities = Net income + Depreciation and amortization

Tokyo Disneyland

10th Anniversary

Tokyo Disneyland 5th Anniversary

Opening of Tokyo Disneyland

Tokyo Disneyland

15th Anniversary

◆ Operating Income / Operating Margin

◆ Cash Flow from Operating Activities* / Capital Expenditure

◆ Annual Theme Park Attendance

Signing of contract with

The Walt Disney Company

Tokyo Disneyland® at time of construction

◆ Initial investment: About ¥180.0 billion

Tokyo Disneyland opened

1979 1982 1983

By Fiscal Year (Millions of Guests) Three-Year Moving Average (Millions of Guests)

Operating Income (Billions of yen) Operating Margin (%)

Cash Flow from Operating Activities (Billions of yen) Capital Expenditure (Billions of yen)

2 Oriental Land

Tokyo Disney Resort’s Growth Trajectory

16.51 17.3022.05

24.82 25.47 25.02 24.77 25.82 25.42 27.22 25.82 25.37 25.35 27.50

28.00(Forecast)

83.1(Forecast)

31.30

14.611.1

12.0 11.5 11.5 10.4 9.2 9.9 9.1 10.3 11.315.1

18.6

20.6

19.9(Forecast)

90.9(Forecast)

25.4

22.1

33.7 38.0 38.8 34.6 30.6 34.1 31.140.1 41.9

53.7

66.9

81.5

114.5

’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

’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

24.2

130.5

182.2

109.8

14.8 29.346.9 43.1

54.8 52.740.1

19.4 27.9 23.2 28.742.8

(Forecast)

22.4 23.2

50.766.9 64.5 61.8 59.1 59.3 58.4 67.8 72.1 62.9 72.0

87.6107.5

’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

20.4

Tokyo Disneyland 20th AnniversaryTokyo Disney Resort 25th Anniversary Tokyo Disney Resort 30th Anniversary

Tokyo DisneySea

5th Anniversary

Tokyo DisneySea

10th AnniversaryOpening of

Tokyo DisneySea

Announcement of “Second Park Concept”

➔ Announcement of 1997 “Tokyo DisneySea®” plan

◆ Initial investment: About ¥335.0 billion*

* Including Tokyo DisneySea Hotel MiraCosta

Opening of Tokyo DisneySea,

Opening of Tokyo DisneySea Hotel

MiraCosta

Announcement of “OLC in 2023”

◆ Amount of investment in the theme park business: ¥500.0 billion level(Total amount from FY ’15/3 to ’24/3)

1988 2001 2014

Note: Figures for operating income, operating margin, cash flow from operating activities and capital expenditure are formally disclosed only for the years ended March 31, 1997, and figures for the year ended March 31, 1996, and previous years are for reference only. Figures for years up to and including the year ended March 31, 1999, are non-consolidated results.

3Annual Report 2014

Tokyo Disneyland Hotel

Disney Ambassador Hotel

Ikspiari

MAIHAMA Amphitheater

Tokyo Disney ResortOfficial Hotels

Tokyo Bay

Parking

Multilevelcar parkingtower

Multilevel carparking tower

Maihama Station

Tokyo DisneySeaHotel MiraCosta

Disney Resort Line

Tokyo Disneyland

Tokyo DisneySea

1. Extensive LandApprox. 2 million square meters of contiguous land 10 kilometers (6 miles) from the city center

2. Immense MarketPopulation of approx. 30 million with substantial disposable income

living within a 50-kilometer (30-mile) radius

3. Convenient AccessAbout 15 minutes by train from Tokyo Station,

about 30 minutes by shuttle bus from Haneda Airport, and

about 60 minutes by shuttle bus from Narita International Airport

License agreement with Disney Enterprises, Inc.Operation of Disney-branded facilities in Tokyo Disney Resort®

RoyaltiesProportionate to revenues (yen-denominated)

* As of July 2014, OLC has no capital or personnel relationship with Disney Enterprises, Inc.

Premium Location

Proven Partnership

Own vast land in a superb location

Only OLC operates Disney theme parks in Japan*

UNIQUE COMPETITIVE ADVANTAGES

Reclaiming land and partnering with Disney

1960 The establishment ofOriental Land Co., Ltd.

1962 Concluded the Urayasu District LandReclamation Agreementwith Chiba Prefecture

1964 Commenced reclamation work(completed in 1975)

1979 Concluded an agreementwith Walt Disney Productions(currently Disney Enterprises, Inc.),of the United States, concerningthe operation of Tokyo Disneyland

Enhancing Tokyo Disney Resort

1983 Tokyo Disneyland opened

1996 Listed stock in the First Section ofthe Tokyo Stock Exchange

2000 Ikspiari openedDisney Ambassador Hotel opened

2001 Disney Resort Line openedTokyo DisneySea openedTokyo DisneySea Hotel MiraCosta opened

2005 Palm & Fountain Terrace Hotel opened

2008 Tokyo Disneyland Hotel opened

HISTORY

Tokyo Station

Haneda Airport

Narita International Airport

Tokyo Disney Resort

50km in radius

Oriental Land4

OLC Group Digest

High Guest Loyalty High Cast Member Loyalty

Raise the Level of Guest Satisfaction Raise the Level of Employee Satisfaction

Expand foundation of Tokyo Disney Resort fans

A wide range of supporters acquired

over a 30-year period

High Guest loyalty is linked to

the stability of earnings.

High employee loyalty is linked to

the continuation of high-quality operations.

Secure employees with high motivation

• Joy of working in a business that has the objective of fulfilling Guests’ emotional satisfaction

• Values shared among all employees

IntangiblesOutstanding Service Quality

The source of our strength is human resources; our Cast Members provide magnificent hospitality.

TangiblesOngoing Investment

Creating a place of dreams where Guests will gain a whole new experience of happiness and wonder with every visit.

StrengthenAppeal

Strengthen appeal

Increase cash flow

InvestmentAttract More

Guests

Implement ongoing additional investment based on generating stable cash flow

The source of our strength is human resources; our Cast Members provide magnificent hospitality

Creating a place of dreams where Guests will gain a whole new experience of happiness and wonder with every visit

Investment Amount for the Main Attractions (Billions of yen)

Attraction Opening dateInvestment

amount*

Big Thunder Mountain July 4, 1987 8.0

Star Tours July 12, 1989 10.1

Splash Mountain (Critter Country) October 1, 1992 28.5

Toontown April 15, 1996 11.2

MicroAdventure April 15, 1997 2.8

Pooh’s Hunny Hunt September 1, 2000 11.0

Buzz Lightyear’s Astro Blasters April 15, 2004 5.0

Raging Spirits July 21, 2005 8.0

Tower of Terror September 4, 2006 21.0

Monsters, Inc. Ride & Go Seek! April 15, 2009 10.0

Mickey’s PhilharMagic January 24, 2011 6.0

Toy Story Mania! July 9, 2012 11.5

Star Tours: The Adventures Continue May 7, 2013 7.0

■ Tokyo Disneyland ■ Tokyo DisneySea

* Investment amounts are approximations.

Theme Park Segment

Tokyo DisneylandThe first Disney Theme Park outside of the U.S.

Tokyo DisneySeaThe only sea-themed Disney Theme Park in the world

Hotel Business Segment

Disney HotelsHotels under direct management with

approx.1,700 rooms

● Tokyo Disneyland Hotel

● Tokyo DisneySea Hotel MiraCosta

● Disney Ambassador Hotel

Other Business Segment

IkspiariA shopping complex composed of shops and

restaurants as well as a cinema complex

Disney Resort LineA monorail service provided around

Tokyo Disney Resort

Management Know-How

Strong Finances

Demand for Happiness

Provision of Happiness

5Annual Report 2014

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Approximately 50% Over 27Million Guests

No.1 in the Ranking

More Than 80% of Net Sales and Operating Income Come from the Theme Parks

Overwhelmingly No.1 in Domestic Market & Theme Park Attendance

Theme Park

Segment

82.6% 84.9%

13.7%

3.7%13.9%

1.1%

Consolidatednet sales:

¥473.6 billion

Consolidatedoperating income:

¥114.5 billion

Results for FY Ended ’14/3

Hotel Business

Segment

Other Business

Segment

Tokyo Disneyland

Tokyo DisneySea

Tokyo Disneyland Hotel

Tokyo DisneySea Hotel MiraCosta

Disney Ambassador Hotel 　　and others

Ikspiari

Disney Resort Line 　　　　　and others

◆ Breakdown by Segment and Content of Segments

◆ Amusement and Leisure Parks:

Market Size and Oriental Land’s Share

Oriental Land’s Share in Domestic Market

Source: White Paper of Leisure 2013

Note: Data used to calculate Oriental Land’s market share is based on figures for the fiscal year.

Source: Japan Amusement & Recreation Park Data Book 2014(Ranking based on the fiscal year ended March 31, 2013)

◆ Annual Attendance Ranking among

Japanese Theme Parks

Annual Attendance at Our Theme Park

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (CY)

657 632 630 648 643 640 623599 585

655

39.0 39.7 39.6 40.3 40.244.5 43.6 45.9 48.3 47.6

Name of FacilityAttendance (thousand)

1Tokyo DisneylandTokyo DisneySea

27,503

2 Universal Studios Japan 9,750

3 HUIS TEN BOSCH 1,918

4 Space World 1,640

5 Shima Spain Village “PARQUE ESPANA” 1,333

SEGMENT INFORMATION

ADVANTAGE IN THE MARKET

Oriental Land’s Market Shares (%)Market Size (Billions of yen)

Oriental Land6

About 65% of Guests are from the Tokyo Metropolitan Area

Stable Metropolitan Area Population Projected

0

100

’14/3’13/3’12/3’11/3’10/3’09/3’08/3’07/3’06/3’05/3’04/3

21.1

49.5

12.7

16.7

19.9

49.6

12.6

17.9

18.6

51.2

11.9

18.3

19.1

52.4

10.1

18.4

17.7

53.1

11.1

18.1

17.9

52.2

10.7

19.2

17.0

51.8

11.3

19.9

16.2

52.0

11.8

20.0

15.4

52.2

12.5

19.9

15.3

52.0

13.0

19.7

15.2

53.0

13.1

18.7

2,292

4,185

4,598

2,259

3,860

4,483

2,205

3,796

4,335

2,176

3,629

4,217

2,160

3,377

4,206

2,128

3,370

4,222

2,048

3,096

4,226

2,014

3,144

4,151

2,039

3,144

4,038

2,014

3,122

4,042

2,003

3,246

3,998

11,07610,60110,33610,0229,7439,7199,3709,3099,2209,1789,247

’14/3’13/3’12/3’11/3’10/3’09/3’08/3’07/3’06/3’05/3’04/3

Net Sales per Guest ¥11,076, and Average Length of Visit 8.9 Hours

GUEST PROFILE

’04/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 ’13/3 ’14/3

8.5 8.5 8.4 8.4 8.4 8.4 8.4 8.4 8.7 8.7 8.9

About 70% of Guests are Adults (Over 18), and About 20% of

All Guests are Over 40

◆ Breakdown of Guests by Region ◆ Regional Population Projections for Japan: 2010–2040

◆ Breakdown of Guests by Age (%)

◆ Net Sales per Guest (Yen)

◆ Average Length of Visit (hours)

Ticket Receipts Merchandise Food & Beverages

Over 40 18 to 39 12 to 17 4 to 11

Others (Japan) 8.3%

Overseas 3.9%

Kanto(metropolitan area)

64.6%Chubu/Koshinetsu

11.6%FY ’14/3 Results

Tohoku 4.0%

Kinki 7.6%

Source: Regional Population Projections for Japan: 2010–2040 (March 2013) by National Institute of Population and Social Security Research

(million people)

0

40

80

120

2010 2015 2020 2025 2030 2035 2040 (CY)

Kanto (metropolitan area) Chubu/Koshinetsu Kinki

Tohoku Others (Japan)

7Annual Report 2014

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473.6

’14/3

395.5

’13/3

360.1

’12/3

356.2

’11/3

371.4

’10/3

11.3

15.1

18.620.6

24.2

◆ Revenues / Operating Margin

114.5

’14/3

81.5

’13/3

66.9

’12/3

53.7

’11/3

41.9

’10/3

151.4

’14/3

117.6

’13/3

106.8

’12/3

93.6

’11/3

88.6

’10/3

◆ EBITDA

Revenues increased year on year to ¥473.6 billion due to record-high

theme park attendance of 31,298 thousand thanks to the success of

Tokyo Disney Resort 30th Anniversary events and other factors, as

well as record revenues per Guest of ¥11,076. Meanwhile, operating

income rose for the sixth consecutive year to ¥114.5 billion, as

higher revenues offset increases in personnel expenses such as the

increase in part-time employee working hours due to the popularity

of Tokyo Disney Resort 30th Anniversary events and fixed and

miscellaneous costs, such as Tokyo Disney Resort 30th Anniversary

related costs. As a result, the operating margin improved to 24.2%.

Oriental Land Co., Ltd. and Consolidated Subsidiaries Fiscal Years Ended March 31

(Billions of yen) (%)

◆ Operating Income

(Billions of yen) (Billions of yen)

*1. The U.S. dollar amounts are provided for convenience only and have been converted at the rate of ¥102.92 to US$1, the prevailing exchange rate at March 31, 2014.

*2. Capital expenditures includes tangible and intangible assets and long-term prepaid expenses.

*3. EBITDA = Operating income + Depreciation and amortization, aggregated

’04/3 ’05/3 ’06/3 ’07/3 ’08/3

FOR THE YEAR:

Revenues ¥336,517 ¥331,094 ¥332,885 ¥344,083 ¥342,422

Operating income 38,765 34,562 30,605 34,111 31,144

Net income 18,530 17,224 15,704 16,309 14,731

Capital expenditures*2 29,277 46,855 43,129 54,807 52,691

Depreciation and amortization 45,982 44,555 43,374 42,951 43,623

EBITDA*3 84,747 79,117 73,979 77,062 74,767

Free cash flow*4 35,235 14,924 15,949 4,453 5,663

AT YEAR-END:

Total assets 654,425 660,225 718,866 699,772 757,542

Total net assets*5 373,866 389,714 375,947 385,001 388,181

Interest-bearing debt 209,286 202,449 266,945 235,626 294,320

PER SHARE DATA:

Net income (EPS) ¥ 184.23 ¥ 171.19 ¥ 162.73 ¥ 171.46 ¥ 154.86

Net assets (BPS) 3,732.22 3,890.51 3,950.49 4,046.03 4,079.44

Cash dividends 29.00 35.00 45.00 55.00 60.00

SELECTED FINANCIAL DATA:

Operating margin 11.5% 10.4% 9.2% 9.9% 9.1%

Return on assets (ROA) 2.8 2.6 2.3 2.3 2.0

Return on equity (ROE) 5.1 4.5 4.1 4.3 3.8

Equity ratio 57.1 59.0 52.3 55.0 51.2

Payout ratio 15.7 20.4 27.7 32.1 38.7

Annual theme park attendance (Thousands of Guests)

25,473 25,021 24,766 25,816 25,424

Revenues per Guest (Yen) 9,247 9,178 9,220 9,309 9,370

Revenues Operating Margin (%)

Oriental Land8

Eleven-Year Financial Highlights

’14/3’13/3’12/3’11/3’10/3

6.9 6.3

8.7

12.6

15.2

70.6

’14/3

51.5

’13/3

32.1

’12/3

22.9

’11/3

25.4

’10/3

280 265

385

617

845

493.7

’14/3

432.3

’13/3

383.1

’12/3

357.8

’11/3

366.5

’10/3

4,241 4,2894,592

5,179

5,913

◆ ROE

◆ Net Income / EPS ◆ Total Net Assets / BPS

Net income rose 37.1% year on year to ¥70.6 billion due to

increases in operating income in the theme park segment, hotel

segment and other business segment following higher revenues

from the success of the Tokyo Disney Resort 30th Anniversary

events. As a result, the OLC Group achieved ROE of 15.2%.

(%)

(Yen)(Billions of yen) (Yen)(Billions of yen)

*4. Free cash flow = Net income + Depreciation and amortization, aggregated – Capital expenditures

*5. Total net assets as of March 31, 2006, and previous fiscal years has been restated in accordance with a change in accounting standards.

Millions of yen Percent changeThousands ofU.S. dollars*1

’09/3 ’10/3 ’11/3 ’12/3 ’13/3 ’14/3 ’14/3 / ’13/3 ’14/3

¥389,243 ¥371,415 ¥356,181 ¥360,061 ¥395,527 ¥473,573 19.7% $4,601,370

40,096 41,924 53,664 66,923 81,467 114,491 40.5 1,112,427

18,089 25,427 22,908 32,114 51,484 70,572 37.1 685,698

40,140 19,419 27,904 23,210 28,730 20,367 (29.1) 197,892

49,733 46,695 39,985 39,850 36,132 36,934 2.2 358,861

89,829 88,619 93,649 106,773 117,599 151,426 28.8 1,471,298

27,682 52,703 34,989 48,754 58,886 87,139 48.0 846,667

644,992 615,090 574,635 619,494 655,544 664,539 1.4 6,456,850

373,660 366,473 357,779 383,085 432,262 493,697 14.2 4,796,901

193,019 173,289 142,937 149,580 124,020 58,448 (52.9) 567,897

Yen Percent change U.S. dollars*1

¥ 196.84 ¥ 280.17 ¥ 265.26 ¥ 384.98 ¥ 616.96 ¥ 845.32 37.0% $ 8.21

4,109.59 4,240.59 4,288.99 4,592.03 5,178.67 5,912.53 14.2 57.45

70.00 100.00 100.00 100.00 120.00 120.00 0.0 1.17% Amount change

10.3% 11.3% 15.1% 18.6% 20.6% 24.2% 3.6 points

2.6 4.0 3.9 5.4 8.1 10.7 2.6

4.7 6.9 6.3 8.7 12.6 15.2 2.6

57.9 59.6 62.3 61.8 65.9 74.3 8.4

35.6 35.7 37.7 26.0 19.5 14.2 (5.3)Percent change

27,221 25,818 25,366 25,347 27,503 31,298 13.8%

9,719 9,743 10,022 10,336 10,601 11,076 4.5

Net Income EPS Total Net Assets BPS

9Annual Report 2014

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Under “OLC in 2023,” which outlines the OLC Group’s vision of where it wants be in 10-years’ time, we established

the 2016 Medium-Term Plan, the first three years toward the realization of that vision. Following the message from

chairman, in the feature 1, the measures that will be taken to raise the entire Group’s corporate value and increase

growth are explained. The feature 2 describes the efforts taken by three departments that were factors behind the

success of Tokyo Disney Resort 30th Anniversary events, which greatly exceeded our expectations.

Your Happiness, Our GrowthWe will Continue to Grow to Bring You Happiness

Oriental Land10

Focus

P12

P14

P26

Message from the Chairman

Feature 1: The President Discussesthe 2016 Medium-Term Plan

Feature 2: Factors Behind the Success of the 30th Anniversary

11Annual Report 2014

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Aiming to be an Urban Resort Like No Other in the World

Oriental Land12

Message from the Chairman

The number of Guests visiting our theme parks in the fiscal year ended March 31, 2014, the

30th Anniversary of Tokyo Disney Resort, surpassed 30 million for the first time, and thus we

achieved record-breaking sales and profits. I would like to take this opportunity to extend

my sincere gratitude to our stakeholders for their unwavering support over the years.

In 2014, the OLC Group and Tokyo Disney Resort took their first steps to an entirely

new level. We decided to invest ¥500 billion in its theme park business over the next 10

years. Tokyo Disneyland’s initial investment was ¥180 billion, while Tokyo DisneySea’s initial

investment was ¥335 billion. I think you all know what an enormous and unprecedented

amount ¥500 billion is. Through this investment, the biggest ever, we aim to maximize our

theme parks’ value. Our idea is to turn the Maihama area into an urban resort like no other in

the world.

Our business is to bring Happiness to our Guests. In retrospect, the opening of Tokyo

Disneyland in 1983 brought new value to Japan, of a kind that did not exist there before. In

addition to attractions that tell the Disney stories in the unique Disney way and entertain-

ment on a vast scale, we are now able to bring a world of Happiness to our Guests through

the hospitality provided by our Cast Members. That is Tokyo Disney Resort’s competitive

advantage, and it has sustained our stable profit growth over the years. Today, however,

social and economic changes, as well as changes in people’s values and in the needs of our

Guests are great and moving at rapid speed. We are deeply concerned that if we stay on our

traditional management path, we will no longer be able to bring Happiness to our Guests

and may not be able to ensure long-term sustainable growth. To respond to these changes,

Tokyo Disney Resort needs to evolve into something new.

It goes without saying that the force driving us to the next level is our search to tirelessly

explore and take on the challenge of the new, which is in the OLC Group’s DNA. By bringing

Happiness to our Guests, we will continue to push management forward with a strong sense

of purpose and passion, so that we can keep growing further. In closing I ask our shareholders

and investors for their even greater understanding over the medium to long term.

July 2014

Representative Director,Chairman and CEO

Toshio Kagami


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Bringing A Hundred Years of Happiness

Representative Director, President and COO

Kyoichiro Uenishi

Oriental Land14

Feature 1: The President Discusses the 2016 Medium-Term Plan

From the fiscal year ended March 31, 2012 through the fiscal year

ended March 31, 2014, the OLC Group worked to achieve its 2013

Medium-Term Plan. Under the 2013 Medium-Term Plan, a high

level of stable free cash flow generated through the sustained

growth of our core business (Tokyo Disney Resort) was set aside

to lay the groundwork for new growth and enhance shareholder

returns with the goal of generating corporate value that will

enable sustainable growth over the long term. Although we set

a target of ¥120 billion in free cash flow for the duration of the

Medium-Term Plan, we actually achieved ¥194.8 billion, greatly

exceeding our target.

When we started the 2013 Medium-Term Plan, it was a diffi-

cult time, as Tokyo Disney Resort had suspended operations due

to the Great East Japan Earthquake. Under those conditions we

quickly recovered and that we were able to achieve our target was

nothing more than the company working together and sharing a

strong determination to “continue bringing Happiness” and imple-

menting essential improvements and over hauls.

In preparation for new growth, we formulated “OLC in 2023,”

our vision of where we want the OLC Group to be in 10 years’

time. The focus of past Medium-Term Plans has been the question

of the problems we now face. However, this time we thought

about what values we can deliver to society and set the long-term

direction that we want to take. The OLC Group will face the next

growth stage with passion that has continued to bring Happiness

to its Guests for the last 30 years and with “OLC in 2023” etched

in the minds of all employees, each of us will evolve and the OLC

Group will move on to the next stage.

The first fiscal year of the 2013 Medium-Term Plan got off to a very

difficult start, in the immediate aftermath of the Great East Japan

Earthquake, we could not even announce our earnings forecast.

However, because our response after the earthquake disaster won

strong support from our Guests, attendance quickly recovered and

we had record-breaking quarterly attendance from the second

quarter onward. Also, we were able to minimize the disaster’s

effect on earnings by controlling costs through the streamlining

of operations carried out jointly throughout the Company. Aiming

for a more robust business structure, the changes we made to the

way each employee works and thinks proved very successful. We

firmly realized that Guests always seek emotional satisfaction and

were happy that we could respond to that.

Tokyo Disney Resort had two consecutive years of record sales,

operating income, and net income in the fiscal years ended March

31, 2013 and 2014. Despite the fact that the fiscal year ended March

31, 2013 was a year that fell between the anniversary events, we

recorded record attendance for that time. Because the fiscal year

ended March 31, 2014 was the year of the Tokyo Disney Resort

30th Anniversary event, we had expected sales and profits to

increase, but the results far exceeded our expectations; attendance

surpassed 30 million for the first time and operating income was

over ¥100 billion. This proves that efforts to continuously raise the

value of Tokyo Disney Resort, such as by introducing new products,

expand the market by promoting attendance at both theme parks,

and to further tap the theme park’s potential have been successful.

2013 Medium-Term Plan in Review

Sustainable Growth of the Core Business (Tokyo Disney Resort)1

Sustainable growth of the core

business (Tokyo Disney Resort)

Creation of new valueGrowth

Market development

Investment and cost efficiency Efficiency

Continue to generate a high level of free cash flow

Reinforcement of the foundation

for long-term sustainable growth

Preparation for new growth Sustainability

➡ROE improvementStockholder returns

MANAGEMENT OBJECTIVE Generate corporate value that will enable sustainable growth over the long term

TARGET ¥120.0 billion level of aggregated free cash flow to be generated during three years

1-1

1

2

1-2

1-3

2-1

2-2

5.7

27.7

52.7

35.0

48.858.9

87.1

’14/3’13/3’12/3’11/3’10/3’09/3

2010 Medium-Term Plan

’08/3


[ Target ]¥120.0 billion level for 3 years

[ Result ]¥194.8 billion level for 3 years

◆ Outlook for the Free Cash Flow*

* Free cash flow = net income + depreciation and amortization – capital expenditure

(Billions of yen)

◆ Outline of 2013 Medium-Term Plan


Focu

s

Under the 2013 Medium-Term Plan, we sought to create new

value as a pillar for the sustainable growth of our core business.

At the two theme parks Tokyo Disneyland and Tokyo DisneySea,

we continued to introduce new products on schedule including

“Fantasmic!,” “Toy Story Mania!,” and “Star Tours: The Adventures

Continue,” and raised the theme parks’ value. There is no end to

our taking on the challenge of creating spaces for dreams that can

always bring new joy and excitement no matter how often Guests

visit. We will constantly expand the appeal of our theme parks.

In April 2011, believing in the theme parks’ value even after

the earthquake disaster, we boldly revised prices to reflect this

in the ticket’s price. Since then, many Guests have visited and

we are grateful for their reasonable assessment of the theme

parks’ value. Aside from ticket revenue, the entire Tokyo Disney

Resort has taken steps to create and expand income opportuni-

ties. Moreover, we increased Guest spending on merchandise

and food/beverages through the Duffy brand and anniversary

event-related products. As a result, net sales per Guest were a

record-breaking ¥11,076 in the fiscal year ended March 31, 2014.

Also, billings for the “Tokyo Disney Resort Vacation Packages”

(travel products that combine hotel accommodations with such

park contents as FASTPASS® tickets and reserved tickets to see

popular shows) doubled during the 2013 Medium-Term Plan.

A revenue pillar like this cannot be developed in a short space

of time. For example, the Duffy brand and the Vacation Packages

were patiently developed through repeated trial and error since

2004. I believe that building momentum through continuous

effort increases our strength. Our management responsibility is to

sow new seeds and then carefully develop and build the soil.

During the 2013 Medium-Term Plan, we held two anniversary

events, the Tokyo DisneySea 10th Anniversary and the Tokyo

Disney Resort 30th Anniversary, which were both highly success-

ful. Once again, we have gotten a good response to attracting

Guests to anniversary events. Our 30th Anniversary events, which

attracted more than 30 million Guests, won high Guest satisfac-

tion and the desire of Guests to come back to our theme parks.

The goal of anniversary events is to get Guests who had not been

to the theme parks for one year or more to visit and become a fan

of Tokyo Disney Resort. I think these two anniversary events were

used to maximum effect.

We expanded the base of Tokyo Disney Resort fans and

enhanced our ability to attract repeat Guests through various

approaches such as introducing new products designed to be

enjoyed by the family segment, the theme parks’ main target seg-

ment, upgrading our measures for the post-family segment (Guests

primarily in their 40s and over whose children have already grown

up), and holding seasonal events to win repeat Guests. The combi-

nation of these measures with the anniversary events has created

a continuum of opportunities for Guests to visit the park. The fact

that Guests were satisfied with their visits and wanted to make

repeat visits helped us raise the overall level of park attendance.

This was the “virtuous circle” model we had been aiming for. As we

prepare for future growth, can we provide emotional satisfaction

that surpasses our Guests’ expectations, even when attendance

levels are high? Now is the time to show our true worth.

Since the fiscal year ended March 31, 2001, the period in which

the operating margin was roughly 10% has continued as the

burden of depreciation and amortization expenses has risen

substantially due to large-scale upfront investments such as Tokyo

DisneySea. However, during the 2013 Medium-Term Plan, the

operating margin rebounded to a high level of more than 20%.

This is the result of increased sales through the growth of our

core business and a simultaneous decrease in the depreciation

burden following Tokyo DisneySea’s initial investment along with

the spread of a new way of thinking about investment and cost

efficiency throughout the Company.

To improve investment efficiency, we gradually introduced

new investment-efficient products during the 2013 Medium-Term

Plan under a policy of controlling capital investments to an average

annual level of ¥30 billion. To improve cost efficiency, we success-

fully implemented cost control methods based on a sound sales

plan, changed to a cost-consciousness (a companywide undertaken

after the earthquake disaster), and controlled running costs within a

range where they do not affect Guest experience value.

We shared with all employees the direction that the Company

is headed and are proud of our evolution into a robust corporate

structure.

Creation of New Value1-1

Market Development1-2

Investment and Cost Efficiency1-3

Toy Story Mania! (Tokyo DisneySea)Fantasmic! (Tokyo DisneySea)

Oriental Land16

’08/3

60

’09/3

70

’10/3

100

’11/3

100

’12/3

100

’13/3

120

’14/3

120

2010 Medium-Term Plan 2013 Medium-Term Plan

12.6

15.2

8.76.36.9

4.73.8

’08/3 ’09/3 ’10/3 ’11/3 ’12/3 ’13/3 ’14/3

2010 Medium-Term Plan 2013 Medium-Term Plan

Impact ofearthquake disaster

◆ Cash Dividends

(Yen)

◆ ROE

(%)

35.829.5

34.5

25.4

22.133.7

38.0 38.834.6 30.6 34.1 31.1

40.1 41.9

53.7

66.9

81.5

114.5

19.8

16.818.4

14.6

11.1 12.0 11.5 11.510.4 9.2 9.9 9.1 10.3

11.3

15.1

18.620.6

24.2

’97/3 ’98/3 ’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

Operating income and margin

have been improving

Opening ofTokyo DisneySea

◆ Operating income and operating margin

Operating margin (%)Non-consolidated operating income (Billions of yen) Consolidated operating income (Billions of yen)

Single park eraOperating margin:

approx. 20%

Burdened with high depreciation and amortization expenses/increase in costs

Operating margin: approx. 10%

Profit rate improvesOperating margin:

approx. 20%

Depreciation and amortization (¥ billion) 11.9 11.3 11.7 12.5 18.4 38.0 47.9 46.0 44.6 43.4 43.0 43.6 49.7 46.7 40.0 39.9 36.1 36.9

Capital expenditures (¥ billion) 38.4 44.1 59.8 130.5 182.2 109.8 14.8 29.3 46.9 43.1 54.8 52.7 40.1 19.4 27.9 23.2 28.7 20.4

* The results before ’99/3 are non-consolidated.

To reinforce the foundation for long-term sustainable growth, we

considered the direction of investments for new growth during

the 2013 Medium-Term Plan and plotted out where we want the

Group to be 10 years from now. I will discuss this in detail later.

In addition, after thoroughly analyzing our strengths and weak-

nesses, we carefully assessed investments with return potential

in fields that leverage our strengths. As a result, we acquired the

stock of Brighton Corporation in March 2013 and announced

the purchase planning of land in the Maihama area in December

2013. One year has passed since we acquired the stock of Brighton

Corporation and we are now reviewing its business structure. We

will increase earnings by providing Guests with even more of our

unrivaled hospitality and by streamlining our operations. We plan

to purchase land in the Maihama area in the fiscal year ending

March 31, 2017, and are studying methods for its tangible use in

order to and raise the value of Tokyo Disney Resort.

Furthermore, during the 2013 Medium-Term Plan, we sub-

stantially reduced interest-bearing debt by repaying debt and

taking on debt assumption agreements. We made preparation to

further raise corporate value by ensuring that we have the capac-

ity to invest in new growth.

Regarding shareholder returns, we paid stable dividends while

taking into account external environmental factors. Not only did

we exceed our ROE target of 8% by raising profit levels, we have

steadily raised them every year.

Reinforcement of the Foundation for Long-term Sustainable Growth2


Focu

s

The direction of our core business is to effectively use Maihama

land, OLC’s greatest asset in order to maximize theme park value.

People may think this unsurprising and exceedingly natural in

light of our business, but based on our expectations at the start

of the 2013 Medium-Term Plan (fiscal year ended March 31,

2012), that was not our conclusion. At that time, we expected

theme park attendance of around 27 to 28 million in one decade.

Regarding the issue of how to grow amid Japan’s declining

birth rate and an aging population, we assumed that we could

also grow through new business that brings in non-theme park

Guests, so we considered that.

However, the outcome of the Tokyo Disney Resort 30th

Anniversary events was that we reached 31.3 million Guests.

That convinced us that our theme parks still had much scope

for growth. With the aim of maximizing theme park value, we

will invest ¥500 billion over a 10-year period in the theme park

business and thereby evolve into theme parks that are capable of

constantly attracting 30 million or more Guests by 2023, reflecting

Guest satisfaction.

In the fiscal year ended March 31, 2014, attendance at our two

theme parks surpassed the 30 million mark. This was an oppor-

tunity for the OLC Group to re-acknowledge the strong potential

of Tokyo Disney Resort, its core business, as well as reaffirm its

confidence in the further growth that lies ahead.

Turning to the external environment, the leisure market

over the next 10 years is expected to have a growing elderly

population, even in the Tokyo metropolitan area. While this may

appear to be a risk factor for the OLC Group, it is the increase in

Tokyo metropolitan area’s middle-aged and elderly population

segments with their high disposable income that we believe will

provide a further growth opportunity. Further, the number of

visitors to Japan is expected to substantially rise owing to govern-

ment policies for attracting tourists and the holding of the Tokyo

Olympics. We will steadily respond to these market changes and

dramatically advance our core business into a new growth stage.

To that end, it is essential that all of our employees return to our

roots, to “continue bringing Happiness,” and unite and collectively

share in the course of action that we must follow.

Therefore, I formulated “OLC in 2023,” a vision of what we

want the OLC Group to be 10 years from now, to show the OLC

Group’s long-term management direction.

Formulated “OLC in 2023,” our Vision for the Next 10 Years

1. Long-Term Sustainable Growth of the Core Business“OLC in 2023” Maximize Theme Park Value Through Effective Use of Maihama Land

Expected changes in the market surrounding the theme park

business are, as I previously discussed, an increasing middle-and-

older aged population and a growing number of overseas visitors

to Japan.

First, the increasing middle-and-older aged population is seen

as leading mainly to the growth of the family market. The magical

experience these Guests had visiting our theme parks as children

has a tendency to compel them to return to theme parks when

they are older or when they have families of their own. And, since

the opening of Tokyo Disneyland over 30 years have passed and

Guests who visited the theme parks when they were children will

reach middle age after another 10 years. Not only will those Guests

visit the theme parks with their families including children, Guests

will come in various forms such as three-generation families, cou-

ples, friends and others. As a result, we can expect market growth,

especially of the family, the main target of our theme parks.

Next, concerning the overseas market, the government has

disclosed high targets for 2020 and 2030. For Tokyo Disney Resort,

which accommodates nearly 10% of the foreign tourists who visit

Japan, the growth of this market is seen as a huge opportunity.

In response to these market changes, our policy for the

Theme Park Segment will be to primarily focus on attracting

all kinds of families such as parents and children, couples, and

three-generation families. Specifically, we consider it imperative to

Formulation of Business Foundation in Line with Upcoming Changes in Market

Oriental Land18

Tokyo DisneylandAll-encompassing large-scale development projects such as renewal of the entire area

Tokyo DisneySeaLarge-scale development projects such as those using an extended area

Tokyo Disney Resort

• Creation of a more comfortable and satisfying environment

• Large-scale renewal and improvement

• Further reinforcement of park operation foundation including support functions

Amount of investment in the theme park business

(Total amount from FY ending ’15/3 to FY ending ’24/3)

Around ¥500 billion

Expand products catered to family Guests and

create a more comfortable and satisfying environment

draw in younger Guests that will form the foundation of our future

Guest base; create an environment aimed at attracting more

middle- and older-aged Guests, a category offering high growth

potential; and create an environment that enables us to attract as

many overseas Guests as possible. As part of the product strategy

required for this, we will expand products catered to family Guests

and create a more comfortable and satisfying environment for

them in an effort to maximize the value of our theme parks.

During the next decade, we will invest a total of about ¥500 billion

in our Theme Park Segment. I will now discuss this subject includ-

ing the challenges that each theme park is facing.

First, after analyzing this from a number of angles, more than

30 years have passed since the opening of Tokyo Disneyland

and to achieve additional growth we have determined that

investments that have a major impact on products and attracting

Guests will be required. In the future, not only will we need the

stand-alone attractions of recent years, but large-scale develop-

ment at the theme land level, so that we continue to evolve.

Next, Tokyo DisneySea has driven the recent growth in theme

park attendance, but we think it is still growing. As land for devel-

opment, we will conduct large-scale investment that utilizes a

remaining area of land and achieve further growth.

For shared investments in two theme parks, there are three

things that must be done.

First, create an environment in which Guests can be com-

fortable. The primary target of our theme parks in the future will

remain the “family,” and even if the growing middle- and older-

aged segment of the population necessitates a response, we will

not change that target. However, considering the increase in the

middle- and older-aged segment, it is essential that we create an

environment that alleviates congestion and counteracts the heat

and cold more than ever before to raise the Guests experience

value at the theme parks. By combining higher capacity through

large-scale investment in two theme parks, as explained earlier,

with a created environment, we will raise the experience value of

all Guests regardless of age or country of origin.

Second, make large-scale upgrades and improvement. More

than 30 years have passed since the opening of Tokyo Disneyland,

while Tokyo DisneySea will mark its 20th Anniversary in 2021. To

improve the safety and quality of each facility, we will continue to

focus on maintenance-related investments, just as before.

Third, further strengthen the operational base with a focus on

raising future attendance levels. We will consider redeveloping

merchandise and food/beverages support functions such as

Logistics Center and Central Kitchen, and employee facilities, as

well as building the operating platform needed to consistently

welcome 30 million Guests.

The ¥500 billion investment includes many investments that

will not directly lead to profits such as upgrades and strengthen-

ing the operating platform. However, these have supported our

growth for the past 30 years and are essential to the long-term

sustainable growth of our theme parks.

Investment to Maximize Theme Park Value

Guests come in various forms such as multigenerational extended families, couples, friends and others.

Product Strategy


Focu

s

’03/3

(Millions of Guests)

’04/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3 ’12/3 ’13/3 ’14/3 ’15/3

24.82 25.47 25.02 24.7725.82 25.42

27.2225.82

25.37 25.35

27.50

31.30

’24/3(FY)

30.00Impact of

earthquakedisaster

28.00(Forecast)

◆ The level of theme park attendance* * Average excluding anniversary years

+2.00 to 3.00 million

in about 10 years

30.00 million levelby 2023

With two parks in operation

25.00 million level

Current status

27.00 to 28.00 million level

“Why does the OLC Group want to operate a new business out-

side the Maihama area?” There is but one answer to that question,

we want to bring “dreams, moving experiences, happiness, and

contentment” to as many people as possible. By leveraging our

strengths and the confidence developed in our core business,

we can definitely bring Happiness to many people outside the

Maihama area.

As for new business, we aim to establish a business outside

the Maihama area that will be a new pillar for growth. This will

be “a business that can bring dreams, moving experiences, hap-

piness, and contentment by offering unprecedented value and

experiences,” and for this, we will invest for new growth outside

the Maihama area. Through these efforts, we aim to expand the

new business to about the size of one segment by 2023.

2. Further Growth through New Business“OLC in 2023” Establish a New Pillar of Growth Outside the Maihama Area

Theme park growth is the maximization of both revenues and

Guest satisfaction. If either one of these decreases, it cannot be

called growth.

In the fiscal year ended March 31, 2014, when the number

of Guests surpassed 30 million, we feel that most of our Guests

enjoyed themselves thanks to the hard work of our Cast Members,

despite park congestion.

On the other hand, I felt that we still have many things to do

in order to attain the level of Guest satisfaction that we seek for all

of our more than 30 million Guests. Since the theme park became

a two theme park structure, attendance has gradually risen to

25 million, then 27 to 28 million. Next, we will maximize both

profits and Guest satisfaction with the aim of 30 million Guests.

Regardless of how many Guests visit, we will provide Happiness

by unrivaled hospitality to the Guests, and through taking on this

challenge, we will evolve.

Aim to Increase Theme Park Attendance along with Guest Satisfaction

About the size of 1 segment

A business that can bring dreams, moving experiences, happiness, and

contentment by offering unprecedented value and experiences

Description of our new business Size of new business in 2023

Oriental Land20

With the 2016 Medium-Term Plan positioned as the crucial first

three years toward achieving “OLC in 2023,” the OLC Group will

begin taking steps toward further growth through the long-term

sustainable growth of our core business and new business. Our

quantitative target is to achieve cash flow from operating activi-

ties of over 280 billion yen during the three-year period. In pursuit

of “OLC in 2023,” we will maximize cash flow from operating

activities to make large-scale investments in our business and

fund investments in new business.

In our core business, while seeking to build a business foun-

dation in line with upcoming changes in the market, we will strive

to maximize cash flow from operating activities. Further, in pursuit

of “OLC in 2023,” we will decide on and sequentially launch large-

scale investment projects that help us maximize the value of our

theme parks.

With respect to our new business, we aim to open a business

with the potential to contribute to our future earnings outside the

Maihama area in pursuit of “OLC in 2023.” As part of our financial

policy, we will use cash flows from operating activities to enhance

our corporate value.

I will now use diagrams and graphs to make points and

explain about the 2016 Medium-Term Plan.


Sustainable growth of the core business

• While seeking to build a business foundation in line with upcoming changes in the market,

we will strive to maximize cash flows from operating activities

• Toward OLC in 2023, we will decide on and sequentially launch large-scale investment projects

that help us maximize the value of our theme parks

Further growth through new business

• Toward OLC in 2023, we will develop a business with the potential to contribute

to our future earnings outside the Maihama area

Financial policies • We will use cash flow from operating activities to enhance our corporate value

2

3

1

’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

22.4

130.5

23.2

182.2

50.7

109.8

66.9

14.8

64.5

29.3

61.8

46.8

59.1

43.1

59.3

54.8

58.4

52.6

67.8

40.1

72.1

19.4

62.9

27.9

72.0

23.2

87.6

28.7

107.5

20.4

90.9(Forecast)

42.8(Forecast)

’24/3

Expanded the core business Growth of cash flow fromoperating activities

1. Sustainable growth of the core business2. Further growth through new business

(FY)

◆ Cash flow from operating activities and capital expenditure

2013Medium-Term

Plan

2016Medium-Term

Plan

OLCin 2023

+ about 5%

¥267.1 billionfor 3 years

More than ¥280.0 billion

for 3 years

Capital expenditure (Billions of yen)

Cash flow provided by operating activities (Billions of yen)

Quantitative Target Cash flow from operating activities* of over ¥280.0 billion in a three-year period

Toward OLC in 2023, we will endeavor to maximize cash flow from operating activities

to make large-scale investments in our core business and fund investments in new business.

* Cash flow from operating activities = Net income + Depreciation and amortization

◆ Outline of 2016 Medium-Term Plan


Focu

s

As part of our strategy to enhance the value of our theme parks,

we will continue unceasingly to introduce new products. In the

fiscal year ending March 31, 2015, we launched a new nighttime

entertainment, Castle Projection “Once Upon a Time,” on May 29.

Moreover, “Jungle Cruise: Wildlife Expedition” will be renewed to

make a fresh start on September 8.

In addition to introducing such new products, we will proceed

with initiatives to create a more comfortable and satisfying envi-

ronment. One initiative will be to make investments to improve

the environment for watching shows at the Mediterranean Harbor

in Tokyo DisneySea.

Furthermore, as we pursue “OLC in 2023,” we will decide and

launch a series of large-scale investment projects and take other

measures that help us maximize the value of our theme parks. The

large-scale investments in the two theme parks are scheduled to

shift into high gear from the fiscal year ending March 31, 2018 and

thereafter.

Jungle Cruise: Wildlife Expedition (Tokyo Disneyland)(Photo of current Jungle Cruise)

Once Upon a Time (Tokyo Disneyland)

(1) Enhance Theme Park Value

Direction: Enhance theme park value toward building a business foundation in line with upcoming changes in the market

All kinds of families such as parents and children, couples,

and multigenerational extended families

Enhance a capacity to attract Guests × Enhance earning power

(1) Enhance theme park value

(2) Increase theme park attendance by stabilizing attendance levels

(3) Pricing strategy that reflects experience value

(4) Be more prepared to welcome overseas Guests

Attendance Net sales per Guest

From Overseas

Families with children

New-Aging (middle-aged couples whose children have grown up)

Be more preparedto welcome Guests

Focus on attracting

The strategy we have adopted for our core business is to place

special focus on attracting “all kinds of families such as par-

ents and children, couples, and multigenerational extended

families” with a view to building a business foundation in line

with upcoming changes in the market. In particular, we will

reinforce our measures to draw in “families with children” and

“middle-and-older-aged couples whose children have grown

up,” while also striving to be more prepared to welcome Guests

from overseas. By primarily implementing the four strategies for

these target Guest categories, we seek to enhance our capacity to

attract Guests and earning power.

Strategy for the Core Business

Target

Strategies

Long-Term Sustainable Growth of Our Core Business1

Oriental Land22

Net sales for the first quarter have been rising in recent years,

thanks to our efforts to foster the seasonal Easter event, and net

sales for the fourth quarter have also been increasing owing to

students visiting our parks by the Campus-day Passport. However,

we believe that there is still room for further growth in these

quarters.

By rolling out special events in combination with marketing

activities, we will continue to strengthen our capacity to attract

Guests during the low-demand periods of the first and fourth

quarters with the aim of raising park attendance.

We raised Guest spending on merchandise by developing the

Duffy brand, revised ticket prices in line with enhanced theme

parks’ value, and increased net sales per Guest as a result. Going

forward, we will continue to create new value and set strategic

pricing with the aim of boosting net sales per Guest in the

medium and long term.

(2) Increase Theme Park Attendance by Stabilizing Attendance Levels

(3) Pricing Strategy that Reflects Experience Value

◆ Net sales in theme park business

The growth of

seasonal event “Easter”

Attracting students by

Campus-day Passport

4Q3Q2Q1Q

Around¥70.0–80.0 billion

(current status)


(current status)


(current status)Around

¥70.0–80.0 billion(current status)

¥10,601(+2.6%)

¥10,336(+3.1%)

¥10,022(+2.9%)

¥9,743(+0.2%)

¥9,719(yoy +3.7%)

¥11,076(+4.5%)

669

536419400

’14/3’13/3’12/3’11/3’10/3’09/3

2,2592,2052,1762,1602,128 2,292

3,8603,7963,6293,3773,370

4,185

4,4834,3354,217

4,2064,222

4,598

Ticket price revision

(April, 2011)

“Duffy” related products10th Anniversary

related products30th Anniversary

related products

◆ Net sales per Guest

Ticket receipts Merchandise Food and beverages

Tokyo DisneySea

15th AnniversaryTokyo Disney Resort

35th Anniversary

’15/3 ’16/3 ’17/3 ’18/3 ’19/3

Once Upon a Time (Investment amount approx. ¥2.0 billion)

Tokyo Disneyland

Tokyo DisneySea

Jungle Cruise: Wildlife Expedition (Investment amount approx. ¥1.6 billion)

arbor IImprovement work of vieww area in Mediterranean Ha (Investment amount approxx. ¥2.5 billion)

New show at Mermaid Lagoon Theater (Investment amount approx. ¥4.0 billion)

“Lilo & Stitch”-themed New attraction (Investment amount approx. ¥2.0 billion)

Renewed Tokyo Disneyland Electrical Parade Dreamlights (Investment amount approx. ¥2.0 billion)

We will decide on and sequentially launch large-scale investment projects and other measures that help us maximize the value of our theme parks

Started on May 29, 2014 (New night entertainment using projection mapping)

Scheduled to open on September 8, 2014 (With new effects and music)

Scheduled to complete the improvement work in 2015

Scheduled to start in Spring 2015

Scheduled to open in Summer 2015 (Guests can enjoy communicating with Stitch interactively through this theater-type attraction)

Scheduled to start in July 2015 (New float based on the film Tangled will be added, etc.)

2016 Medium-Term Plan * Plans announced as of July 1, 2014

◆ Main new products


Focu

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Investment toward long-term sustainable growth of the core business

Cash flow from operating activities

Investment in new business(Outside the Maihama area)

Further generation of free cash flow by a growth in cash flow from operating activities

Enhance corporate value(Use interest-bearing debt)

’31/3’21/3’14/3’13/3’12/3’11/3’10/3’09/3

Tokyo Olympics(Scheduled)

30.00(Government’s Target)



10.98

11.1

8.71

8.3

6.385.2

8.34

10.17.25

9.9

7.77

11.2


Overseas Guests attendance (Actual) (Million people)

0.87 0.72 0.84 0.33 0.72 1.22

The ratio of overseas Guests among all attendance

3.2% 2.8% 3.3% 1.3% 2.6% 3.9%

Continue aiming to attract overseas Guests

◆ The number of overseas visitors to Japan and

the ratio of our theme parks’ overseas Guests

among overseas visitors to Japan

Source: Prepared by the OLC Group based on materials created by the Japan National Tourist Organization (JNTO) and the Japan Tourism Agency.

Overseas visitors to Japan (Million people)

The ratio of overseas Guests to our theme parks among overseas visitors to Japan (%)

We are stepping up measures to strengthen our systems for

receiving overseas Guests in both physical and intangible ways,

by preparing guidebooks in various languages, creating oppor-

tunities for Cast Members to improve their language ability,

and developing subtitling systems, communication tools and

other measures. By continuing to take such detailed measures,

we aim to increase the value of the experience for our overseas

Guests too. In addition, we are studying measures to strengthen

our ability to attract overseas Guests, including strengthening of

business initiatives targeting Southeast Asia where major growth

is expected, and the launch of sales of e-tickets in response to the

increase in individual travel.

In the year ended March 2014, 10.98 million foreigners visited

Japan, and we attracted 11.1% of them. The number of overseas

Guests hit a record 1.22 million. We aim to continue to steadily

attract overseas visitors to Japan.

(4) Be More Prepared to Welcome Overseas Guests

We will use cash flows from operating activities for growing our core

and new businesses, while striving to further increase cash flows

from operating activities. This will result in further generation of free

cash flow, which will be used to enhance our corporate value.

With respect to investment for new growth outside the Maihama

area, we will be mainly exploring such areas as leisure, enter-

tainment, and education during the period covered by the 2016

Medium-Term Plan. Our target for the fiscal year ending March 31,

2017 is to be operating a business with the potential to contribute

to future earnings in our pursuit of “OLC in 2023.”

Our investment policy is to examine and select the most optimal

means of developing the new business from among a wide range

of methods including business alliances and M&A, in addition to

launching the business from scratch. We may use interest-bearing

debt depending on the timing and size of investment. Specific

investment projects will be announced when they are decided.

Process for Enhancing Corporate Value

Policy for New Business Investment

Further Growth through New Business2

Financial Policy3

Oriental Land24

The responsibility of management is to raise corporate value. We

view corporate value as “the total sum of the Happiness of our

Guests,” and thus far we have developed the parks and delivered

Happiness to all of our Guests. As a result, we have achieved con-

tinuous profit growth and substantially increased our total market

value, which to shareholders is corporate value. We firmly believe

that we can deliver even greater Happiness through our core

business and new business and we will invest on a large scale to

achieve this.

Creating new value and delivering even greater Happiness

results in higher corporate value for our Guests and our share-

holders. This is the OLC Group’s management responsibility.

In order to achieve “OLC in 2023,” we must have innovative

ideas without getting caught up in the success that each of us

has thus far experienced and resolutely transform into a new OLC

Group. That is our challenge. We will take the lead and undertake

our duties with a strong sense of determination, therefore, I hope

that our shareholders and investors will continue to support us

and look forward to the medium- to long-term increase in our

corporate value.

Conclusion

◆ Forecast of consolidated financial results* for the fiscal year ending March 2017 (Billions of yen)

FY Ending ’15/3 (forecast) FY Ending ’17/3 (forecast)

Operating Income 83.1 Around 100· Take advantage of Tokyo DisneySea 15th Anniversary· Control the cost according to net sales

Depreciation and amortization 35.4 Around 36

Capital Expenditure 42.8 Around 45

* Exclude investment for the new business

As mentioned in my earlier explanation on how we will enhance

our corporate value, we will be using cash flow from operating

activities for future growth. To this end, we decided to pay out a

cash dividend of ¥120 for the fiscal year ended March 31, 2014,

the same amount as for the previous fiscal year, and plan to pay

out a cash dividend of ¥120 for the fiscal year ending March 2015.

We will continue to aim for a steady payout of cash dividends

while taking into account external factors.

ROE for the fiscal year ended March 31, 2014 reached 15.2%.

ROE for the following fiscal year is forecast to be 10.8%. We intend

to continue to steadily provide shareholder returns, while aiming

to enhance our corporate value by increasing cash flows from

operating activities.

Cash Dividends

As for the fiscal year ending March 31, 2017, the final fiscal

year of the 2016 Medium-Term Plan, we are assuming operating

income of around ¥100 billion as a result of leveraging the Tokyo

DisneySea 15th Anniversary and controlling costs in accordance

with the level of net sales.

Representative Director, President and COO

Kyoichiro Uenishi

’08/3

60

’09/3

70

’10/3

100

’11/3

100

’12/3

100

’13/3

120120

(Forecast)

’15/3’14/3

120 12.6

15.2

10.8(Forecast)

8.7

6.36.9

4.73.8

’08/3 ’09/3 ’10/3 ’11/3 ’12/3 ’13/3 ’15/3’14/3

Impact ofearthquake disaster

◆ Cash Dividends

(Yen)

◆ ROE

(%)


Focu

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In our milestone 30th Anniversary year, the combined attendance at Tokyo Disneyland and Tokyo

DisneySea broke the 30 million mark for the first time, giving us record revenues and operating income.

In Special Feature 2, we analyze the key factors in this success in terms of Guest attraction, Guest satisfaction

and unit price from the perspectives of the Marketing, Operations and Merchandise divisions.

Tokyo Disney Resort 30th Anniversary

“The Happiness Year”

Oriental Land26

Feature 2: Factors Behind the Success of the 30th Anniversary

The Importance of Marketing for the Entire Corporationn

The division regards this anniversary year as an opportunity to attract Guests from

a wider range of markets. Through measures such as nationwide advertising cam-

paigns and tie-ups with television shows, marketing activities were strengthened.

In the 30th Anniversary year, marketing driven by a unified Companywide strategy

has had significant success.

Marketing Division

The Success of the 30th Anniversary Depends on a Strategy of the Whole Company Coming Together

Approaching the “New-aging Generation”

Measures to Expand Earnings Opportunities

In recent years, steady efforts have been made to foster markets

in a medium to long term that will form our core Guest base.

One of these initiatives is directed at the “New-aging generation.”

There are two main targets, “Post-family generation,” and three-

generation families including grandparents. Families in the former

group have children who have entered junior high school, and

as a result have less to do with joint family activities and visit the

theme parks less. Accordingly, the convenient 45PLUS passport

has been introduced targeting people over 45. Promotional

advertising and our website have suggestions about how to enjoy

the theme parks apart from as a family — that is, with friends,

as married couples, and in mother/daughter pairs. At the same

time, for three-generation families, we have developed the Senior

Multi-day Passport, and special Vacation Packages have been

introduced. Suggestions have been communicated about how

three-generation families can enjoy themselves.

Drawing together these initiatives, we have steadily improved

performance among the over-40s (measured in terms of numbers

entering the theme parks divided by numbers in generational pop-

ulation) and in three-generation families entering the theme parks.

The increase in Vacation Packages is also a major success. First

of all, we have steadily increased the number of transactions, by

taking measures to raise awareness of Vacation Packages and by

putting in place the related marketing channel infrastructure.

In addition, we have increased in value in our Vacation

Packages by developing high value-added content such as special

character greetings and appreciation seats for popular shows,

with corresponding adjustments to pricing. In this way, by making

improvements in both number of transactions and pricing, we

have achieved growth in which Vacation Packages have become

an important product capable of delivering earnings.

Over half of Vacation Packages Guests are repeat Guests, indi-

cating a very high level of satisfaction and willingness to return.

By tailoring proposal-based marketing to individual Guests, we

produce plans that deliver even more satisfaction.

In the 30th Anniversary project started two-and-a-half years

previously, the meaning of the English word “Happiness,” which

was the concept term for the 30th Anniversary, was vigorously

and repeatedly debated. As a result the concept, strategy and

policy were fully agreed among various departments, and a major

success was achieved. For example, various programs such as the

new parade “Happiness Is Here” and the service policy for the Cast

Members of the 30th Anniversary were all developed and imple-

mented in line with the “Happiness” concept, which featured con-

sistently in the content of all attractions for the Anniversary. This

strengthened our overall marketing capabilities across the board.

Based on the concept of the 30th Anniversary, the marketing

division, in order to deliver the “Happiness” concept nationwide,

launched a major PR campaign, including its largest-ever press

preview and advertising campaign. The concept also developed

numerous promotion measures such as “Happiness Tour” partici-

pating in festivals throughout Japan, and promotion with social net-

working services (such as LINE and Twitter). As the 30th Anniversary

information spread and multiplied, it drew further interest from even

more Guests and succeeded in having Guests recall their own enjoy-

ment at the theme parks. The accumulation of memories of good

times spent in our theme parks

encouraged record numbers

of Guests to come back for

return visits. We believe this

was the underlying reason

for record numbers of Guests

entering the theme parks. “Happiness Tour,” which featured in festivals all over Japan

Deputy General Manager, Marketing Division

Koichi Kasahara


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Measures for More Efficient Theme Parks Operation

The 30th Anniversary enabled Guests to thoroughly enjoy themselves and redis-

cover the fun of the theme parks, so that they wanted to go back. It is accordingly

essential to create an environment that enables Guests to enjoy themselves to the

maximum when they visit the theme parks. These measures reflect thorough assess-

ments made in the past few years to understand and improve the existing set-up.

Operations Division

Facing the Future with a Broader Outlook and an Effective Cast Placement

An area requiring further attention is putting the right number of

Cast Members in the right positions. Pursuing cost-effectiveness

does not just aim at reducing the hours worked. We find out

whether or not a position is redundant, and, depending on need,

redeployment is carried out to a location where a person is more

effective. This kind of daily check and improvement process is

essential for creating a Guest environment where Cast Member

can respond immediately to the Guests’ needs.

In the future, taking a park-wide perspective with regard

to the deployment of Cast Members, and making suitable Cast

placements transcending departments, may be seen as one way

to satisfy Guests and increase their desire to return.

dis-

ngly

the

ess-

p.

Strengthened Checking Measures over the Past Few Years

Excellent Performance Amid High Attendance

Over the last few years, the Operations Division has taken mea-

sures to strengthen checking systems in preparation for the 30th

Anniversary, a major milestone for us.

In Operations Department, among these measures, emphasis

was placed on improving the Guest carry rate (the number of

Guest using the attractions). Sometimes Guests are only able to

experience a few attractions. For Guests visiting the theme parks

for their attractions, there is a risk that they will go away less satis-

fied. To ensure use of multiple attractions, it is essential to increase

the Guest carrying rate per single attraction. When the number

of people using an attraction falls below expectations, the key to

maintaining a high Guest carrying rate is thoroughly researching

the reasons and making the due improvements. As a first step, we

started by getting all Cast Members to fully understand that raising

carrying rates contributes to raising the Guest’s level of satisfaction

and their wish to return to the park. Specifically, we tried to raise

the Guest carry rate by practical methods such as activities using

tip cards, with tips written down and showing the best ways to

raise the carry rates. Of course, we did not concentrate on Guest

carry rates alone but tried to raise awareness and explain the

importance of safety, Guest service, and Guest carry rates together.

In the Custodial Department, we introduced the cleaning

assessment plan. The custodial division keeps the park hygienic

and creates an environment where the Guests can pass an

agreeable time. Evaluation of cleaning is outsourced, for greater

objectivity. But this must be balanced appropriately against Guest

services. We have improved hospitality by adopting a mechanism

that takes account of both cleaning needs and Guest services.

By strengthening the checking system, we are able to gain

a clearer picture of park

condit ions in previous

years, and have created an

environment in which it is

possible to determine what

improvements need to be

made in future.

We have received many Guests to the theme parks during our

30th Anniversary events. But, if they are not able to go to enough

attractions or shows in crowded, the 30th Anniversary would be

just a memory of congestion.

In this situation, in order to enable the Guests to enjoy as many

attractions and shows as possible, we have seen benefits from

strengthening the checking system on a unified division-wide

basis. In addition, after making certain assumptions regarding

the theme parks at crowded times, we made and implemented

detailed action plans, which effectively contributed to improve-

ment in the Guest carrying rate. To deliver the best experience

even at times of high attendance levels in the theme parks, the

Cast Members over the past few years made a co-ordinated effort

in terms of hospitality and organization to help deliver the same

high level of satisfaction to the Guests.

A Cast Member with Guests

General Manager of Operation Management Department, Operations Division

Ryotaro Shiiba

Oriental Land28

ng Guests the Highest Experience Value through Shopping

The merchandise division aims to maximize the value of the Guests’ experience

through shopping. While carrying out its role within the division, each depart-

ment of merchandising has, through close cooperation, achieved major growth

in revenues from merchandise sales. We will now look at this in terms of devel-

opment, management and sales.

Merchandise Division

Manager of Merchandise Products Department, Merchandise Division

Toshiyuki Nakamura

Givin

Combining Guest Service and Profit

For sales, authority is delegated to supervisors (in charge of

shops), and meticulous care in creation of shops is undertaken to

maximize the satisfaction of Guests who are shopping.

So that the vertical, per shop basis of deploying Cast Members,

which was previously used, could be optimized throughout the

department, we made improvements and ceded control of the

deployment of Cast Members to supervisors. Now, supervisors

deploy helper staff from other shops when a particular shop is

congested, based on supervisor predictions regarding the likely

degree of crowding and overall understanding of Guest flows

throughout all product merchandising shops in the theme parks.

Also supervisors are entrusted with controlling the merchan-

dise on display, which is coordinated with the very changeable

product sales levels which depend on the weather and tempera-

ture during a given day.

By giving authority to supervisors on the ground, it has

become possible to improve service and revenue levels at individ-

ual shops.

Product Development from the Guests’ Point of View

Managing Merchandise through a Drop in Costs and Maintaining a Steady Supply

To ensure that development is carried out rigorously from the

Guests’ point of view, we used the “persona” marketing method, in

which a clear target is developed by creating a detailed profile of a

representative merchandise purchaser. The persona created in this

way was a young woman who is a fan of the theme parks merchan-

dise. In creating this “persona,” we were able to make sure that all of

those involved in product development were able to have a single,

shared target image. Based on the image, team members entered

into thoroughgoing discussions, through which they were able to

ensure that product development would satisfy the needs of the

“persona.” For example, wearable items in the theme parks mainly

comprised easily carried headbands and fan caps, but through

the “persona” method we developed items like T-shirts which are

wearable in matching sets and can be put on immediately upon

their purchase in the theme parks. By incorporating young women

who are the target for these kinds of merchandise into “persona,”

we were able to make it fashionable for young women to coordi-

nate and enjoy the theme parks while

appearing in the wearable merchandise.

The fashion spread to families, male stu-

dents, and others. The theme parks now

teem with Guests who enjoy dressing in

T-shirts, parkas, hooded towels or other

wearable merchandise.

Management aims to lower the cost of sales and maintain steady

supplies over the medium-to-long term.

To reduce the costs of miscellaneous goods, business with

Japanese business partners with high intermediate margins was

reduced, and a system was built up of dealing directly with over-

seas factories. We also overhauled our production bases in order

to minimize country risk, including rising manufacturing costs

(chiefly personnel and raw materials), as well as reducing the cost

of sales and ensuring stabilized supplies.

We also undertook a fundamental reform of the cost of sales

of souvenir confectionery and other food products. After an anal-

ysis of the structure of costs, we identified areas where efficiency

could be improved, and took the necessary measures.

One example is ordering confectioners containers and con-

tents separately. Previously, containers and contents were ordered

as a set from confectioners, and as a result it was difficult to under-

stand the cost structure and to develop unique and appealing

containers. By separately ordering contents to confectioners and

containers to container makers the cost structure became clearer.

By dealing directly with the container makers, the margins were

reduced and benefits of scale were enabled by concentrating

manufacturers, so that costs were reduced. At the same time,

attractive containers could be developed.

Example of wearable merchandise


Focu

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Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

IR In

form

ati

on

o D

isn

ey

lan

dT

ok

yo

To

ky

o D

isn

ey

Se

a

Fiscal year ended March 31, 2014

Program

Tanabata Program

6/24~7/7

New Year’s Program

1/1~1/5


1/1~1/5

Announcement of annual attendance for the fiscal year ended March 31, 2013

4/1

Announcement of financial results for the fiscal year ended March 31, 2013

4/26

PR Release

• Announcement of Castle Projection “Once Upon a Time”

• Announcement of renewal of Mermaid Lagoon Theater

6/19

Announcement of first-quarter financial results

7/30

General Meeting of ShareholdersChange of corporate auditors

6/27

Announcement of third-quarter financial results

1/30

Announcement of first-half year attendance

10/1

Revision of earnings forecast

10/18

Announcement of second-quarter financial results

10/30

PR Release

Announcement of an attraction based on Lilo & Stitch

12/19

PR Release

Announcement of acquisition of land of former Tokyo Bay NK Hall

12/24

Limited Time Program

Tower of Terror: Level 13

1/6~3/14

Special Event

Disney Halloween

9/9~10/31

Special Event

Disney’s Halloween

9/9~10/31

1/14~3/20

Limited Time Program

Sweet Duffy

Special Event

Disney Summer Festival

7/8~9/2

Special Event

Christmas Fantasy

11/7~12/25

1/14~3/20

Limited Time Special Event

Happiness Is Here

Special Event

Disney Natsu Matsuri

7/8~9/2

Special Event

Christmas Wishes

11/7~12/25

3/18~6/30

Special Event

Mickey & Duffy’s Spring Voyage

7/12

PR Release

Announcement of “Jungle Cruise” renewal

Anniversary Event

Tokyo Disney Resort 30th: The Happiness Year

4/15~3/20

5/7 OPEN

Attraction

Star Tours: The Adventures Continue

Program

Disney Princess— Welcome, Little Princess

1/14~3/20

4/15 START

Daytime parade

Happiness Is Here

NEW

NEW

NEW

NEW

Oriental Land30

Annual Topics

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

Fiscal year ending March 31, 2015


1/1~1/5

Announcement of annual attendance for the fiscal year ending March 31, 2015

4/1

Announcement of financial results for the fiscal year ended March 31, 2014 and 2016 Medium-Term Plan

4/28

Announcement of first-quarter financial results

7/29

General Meeting of ShareholdersChange of corporate auditors

6/27

Announcement of third-quarter financial results

Late January

Announcement of first-half year attendance

10/1

Announcement of second-quarter financial results

Late October

Special Event


9/8~10/31

Special Event

Disney Summer Festival

7/8~8/31

Program

Disney Tanabata Days

6/24~7/7

Special Event

Christmas Wishes

11/7~12/25

4/2~6/23

Special Event

Mickey & Duffy’s Spring Voyage


1/1~1/5

Special Event


9/8~10/31

Special Event

Christmas Fantasy

11/7~12/25

Special Event

Disney Natsu Matsuri

7/8~8/31

5/29 START

Nighttime Entertainment

Castle Projection “Once Upon a Time”

4/2~6/23

Special Event

Disney Easter

Program

Disney Tanabata Days

6/24~7/7

Attraction Renewal

Jungle Cruise: Wildlife Expeditions

9/8 OPEN

NEW

NEW

NEW

NEW

Photo: concept image


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Theme Park Segment Percentage of Total Revenues Segment Revenues / Operating Income Segment Highlights

Due to the success of Tokyo

Disney Resort 30th Anniversary

events, theme park attendance

and revenue per Guest increased,

leading to higher sales and profits.

Hotel Business Segment Percentage of Total Revenues Segment Revenues / Operating Income Segment Highlights

In addition to a rise in occupancy

rates, the revenues from Brighton

Hotels, which was acquired in

March 2013, was also added in

the fiscal year under review, lead-

ing to increased profits.

Other Business Segment Percentage of Total Revenues Segment Revenues / Operating Income (Loss) Segment Highlights

Revenues from the monorail busi-

ness and other factors increased,

leading to higher profits.

Disney Ambassador Hotel

Tokyo DisneySea

Hotel MiraCosta

MAIHAMA AmphitheaterIkspiari

Disney Resort Line

Tokyo Disneyland HotelTokyo Disneyland

Tokyo DisneySea

82.6%

13.7%

3.7%

290.5 297.9329.8

390.9

97.2

46.256.4

68.5

　

’11/3 ’12/3 ’13/3 ’14/3

44.0 42.248.9

64.9

8.49.6

12.0

15.9

’11/3 ’12/3 ’13/3 ’14/3

1.3

21.7 20.016.8 17.7

（1.2）

0.7 0.6

’11/3 ’12/3 ’13/3 ’14/3’11/3

(Fiscal year ended March 31, 2014)



(Billions of yen)

(Billions of yen)

(Billions of yen)

Operating IncomeRevenues

Operating IncomeRevenues

Operating Income (Loss)Revenues

TOKYO Disney Resort

Oriental Land32

The OLC Group at a Glance

Theme Park Segment

◆ The main facilities of the Theme Park Segment are Tokyo

Disneyland and Tokyo DisneySea.

◆ Tokyo Disneyland opened in April 1983 and Tokyo

DisneySea in September 2001. In the fiscal year ended

March 31, 2014, total cumulative attendance at the two

theme parks surpassed 600 million.

◆ Tokyo Disneyland and Tokyo DisneySea have an approxi-

mately 50%* share of the Japanese amusement and leisure

park market.

◆ Revenues of the Theme Park Segment are broadly divided

into attractions and shows, merchandise, and food and

beverages.

• Attractions and shows revenues include ticket receipts and parking receipts.

• Merchandise revenues include sales of merchandise at Bon Voyage and commercial facilities within affiliated hotels, in addition to commercial facilities within the theme parks.

• Food and beverages revenues include sales of food and beverages at commercial facilities within the theme parks.

* Source: White Paper on Leisure 2013 (August 2013, Japan Productivity Center)

Summary of the Fiscal Year Ended March 31, 2014

Revenues

¥390.9 billion (up 18.5%)

Operating Income

¥97.2 billion (up 41.9%)

In 2013, as the Tokyo Disney Resort reached its 30th anniversary,

we held a variety of events on the theme of “Happiness,” bringing

joy to many, many Guests. Over 340 days from April 15, 2013 to

March 20, 2014, the “Tokyo Disney Resort 30th Anniversary: The

Happiness Year” was held in both theme parks. A new daytime

parade called “Happiness Is Here” was held to coincide with the

unveiling of the Tokyo Disneyland 30th anniversary events, and

on May 7, 2013, we opened the new attraction of “Star Tours: The

Adventures Continue.” In addition, we held special events with a

seasonal flair in both Tokyo Disneyland and Tokyo DisneySea.

Theme park attendance reached the highest-ever figure

of 31.30 million (up 13.8%), thanks to the success of the Tokyo

Disney Resort 30th Anniversary events, increased campaigns to

attract Guests based on the large milestone of the 30th anniver-

sary, plus external factors such as the weather and an increase in

demand for domestic travel and leisure.

Revenues per Guest reached a new record high of ¥11,076

(up 4.5%) due to strong interest in products related to the Tokyo

Disney Resort 30th Anniversary. Ticket earnings were ¥4,598 (up

2.6%) and merchandise revenue was ¥4,185 (up 8.4%), while food

and beverage revenues per Guest were ¥2,292 (up 1.5%).

As a result of the above, overall revenues in the Theme Park

Segment were ¥390.9 billion (up 18.5%). Operating income,

despite increases in fixed and miscellaneous expenses such

as costs for the 30th Anniversary events, reached ¥97.2 billion

(up 41.9%). As a result, the operating margin was 24.9% (up 4.1

points).

Segment Overview

Revenues (Fiscal year ended March 31, 2014)

42.4

37.9

18.4

1.31.3Segment Revenues

■ Attractions and Shows 42.4%

■ Merchandise 37.9%

■ Food and Beverages 18.4%

■ Others 1.3%

©Disney ©2014 Lucasfilm Ltd. & TM All rights reserved.

Star Tours: The Adventures Continue (Tokyo Disneyland)

Happiness Is Here (Tokyo Disneyland)

¥390.9billion (up 18.5%)


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Review of Consolidated Operations

Forecast of Results for the Fiscal Year

Ending March 31, 2015

Revenues

¥341.5 billion (down 12.6%)

Operating Income


At Tokyo Disneyland the new nighttime entertainment of the

castle projection called “Once Upon A Time” was started on May

29, 2014, while the “Jungle Cruise: Wildlife Expedition” attraction

will be reopened on September 8.

In addition to these, the two theme parks will hold a variety of

special events, just as in other years. In spring, Tokyo Disneyland

held a new Easter-themed special event called “Disney’s Easter,”

while at Tokyo DisneySea a special event featuring Duffy

appearing with Mickey Mouse called “Mickey and Duffy’s Spring

Voyage” was held. At the time of Tanabata, Tokyo DisneySea as

well as Tokyo Disneyland will both hold “Disney Tanabata Days.”

In summer, Tokyo Disneyland will hold a “Disney Natsu Matsuri,”

while Tokyo DisneySea will hold its own “Disney Summer Festival.”

In the fall, special events themed on Halloween and Christmas are

held at both theme parks. However, as this year follows the 30th

anniversary of Tokyo Disney Resort, attendance for both theme

parks is expected to fall to 28 million (down 10.5%).

Revenues per Guest are projected to be ¥10,620 (down 4.1%).

Ticket receipts per Guest are forecast to be ¥4,560 (down 0.8%),

and merchandise revenues per Guest are expected to be ¥3,780

(down 9.7%) due to the termination of sales of merchandise

related to the 30th anniversary events. Food and beverages reve-

nues per Guest are projected to be ¥2,280 (down 0.5%).

Jungle Cruise: Wildlife Expedition (Tokyo Disneyland)(Photo of current Jungle Cruise)Once Upon a Time (Tokyo Disneyland)

Duffy: Together, let’s make good things happen

Duffy is a popular character at Tokyo DisneySea. You often

see young Guests walking around holding Duffy in the park.

Duffy’s main charm is his fluffy cuddliness. We have now

launched measures to make this quality more widely appreci-

ated among our Guests.

In TV commercials, Duffy is featured in scenes with a

baby, a schoolgirl, a man about to turn 60, bride and groom

at wedding, and woman office worker who is transferred. The

impression we were seeking to create is that, if you have a

milestone to celebrate, Duffy will make it more fun, and if you

are facing some kind of challenge, you can rest assured Duffy

is supporting you. Through the message that good things

happen when Duffy is around and by handing out gift bears,

the aim is to further broaden the character’s fan base.

The Duffy bus is an actual vehicle covered all over with

Duffy’s special fur. The aim is to create an expectation of good

things happening among Guests who happen to see it as it

travels throughout Japan.

During his travels with Mickey Mouse, Duffy meets a new

friend, Gelatoni, at the Mediterranean Harbor. The meeting

of Duffy and Gelatoni will further broaden the horizons of

Duffy’s world.

TV commercials The Duffy bus Gelatoni

Oriental Land34

Summary of the Fiscal Year Ended March 31, 2014

Revenues

¥64.9 billion (up 32.7%)

Operating Income

¥15.9 billion (up 32.2%)

Revenue increased due to the heightened occupancy rates

following the rise in theme park attendance figures as well as the

acquisition of all shares of Brighton Corporation as of March 29,

2013.

Occupancy rates for all the Disney hotels — the Tokyo

Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta, and the

Disney Ambassador Hotel — were all in the high 90% range

due to the increased attendance figures, showing strong

performance.

As a result of the above, revenue for the hotel segment was

¥64.9 billion (up 32.7%), and operating income was ¥15.9 billion

(up 32.2%).

26.823.5

7.57.526.7

15.515.5

◆ Hotel Segment Revenues / Operating Margin


’09/3

45.9

’10/3

45.2

’11/3

44.0

’12/3

42.2

’13/3

48.9

’14/3

64.9

13.618.6 19.1

22.6 24.624.5

Hotel Business Segment

◆ Included under the Hotel Business are the three Disney hotels

(Tokyo Disneyland Hotel, opened July 2008, Tokyo DisneySea

Hotel MiraCosta, September 2001, and Disney Ambassador

Hotel, July 2000), as well as the Palm & Fountain Terrace Hotel

in Shin-Urayasu (opened February 2005), and Brighton Hotels,

which owns four hotels in Urayasu, Kyoto and elsewhere

(shares of operator Brighton Corporation were acquired in

March 2013).

Segment Overview


Special event-themed rooms appear at two of the Disney hotels

Special rooms are prepared at the Disney hotels to match the

special events being held in the theme parks.

During the spring events, the Tokyo DisneySea Hotel

MiraCosta featured rooms themed on “Mickey and Duffy’s

Spring Voyage” (Tokyo DisneySea), while the Disney

Ambassador Hotel did the same for “Disney’s Easter” (Tokyo

Disneyland).

Special Easter designs have been used in the decoration,

including wide use of Easter eggs with Disney companions as

motifs, and Easter Bunny designs.

A variety of special events have been arranged, to which

rooms have been adapted,

so that the fun never palls

regardless of how often

Guests visit.

Room decorated with an Easter theme

Segment Revenues

■ Tokyo Disneyland Hotel 26.7%

■ Tokyo DisneySea Hotel MiraCosta 26.8%

■ Disney Ambassador Hotel 23.5%

■ Palm & Fountain Terrace Hotel 7.5%

■■ Others 15.5%

Operating MarginRevenues

¥64.9billion (up 32.7%)


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Operating Income


The three Disney hotels expanded on the Happy 15 Entry pro-

gram special privilege given to hotel Guests only since April 14,

2014. This allows Disney hotels Guests to use a special entrance

15 minutes earlier than normal entry for both Tokyo Disneyland

and Tokyo DisneySea. In addition, a variety of hotel events held in

tandem with theme park events, and restaurant events filled with

special charm for each hotel will be held.

However, with the drop in attendance figures at the theme

parks, the occupancy rates of the Disney hotels are projected

to be in the lower 90% range for Tokyo Disneyland Hotel, in

the higher 90% range for the Tokyo DisneySea Hotel MiraCosta,

and in the higher 80% range for the Disney Ambassador Hotel.

Accordingly, revenue is projected to be ¥59.6 billion (down 8.2%)

and operating income ¥12.2 billion (down 23.1%).

Toy Story Mania! Can be entered using the Happy 15 Entry (Tokyo DisneySea)

Happy 15 Entry

Special Occasion Plans

The three Disney hotels offer special occasion plans that can

be added by hotel Guests as an option to an ordinary stay,

or that can be used by hotel Guests or non-hotel Guests at

restaurants in those hotels. From April 1, 2014, new cele-

bration plans have been added. These are the “Special Day

Dining Plan” (certain restaurants of the Disney Ambassador

Hotel / Tokyo DisneySea Hotel MiraCosta) for groups or

families with children, parents and grandparents to enjoy

their meal in a special private room, and the “Aniversario

Romantico Plan” (Bella Vista Lounge, Tokyo DisneySea Hotel

MiraCosta), a romantic plan perfect for couples.

In addition, on July 1, 2014, the preserved flowers supplied

to each room for celebrations have been updated, and with

these and other efforts Disney hotels is striving to offer fully

satisfying plans for special occasions.

◆ Occupancy Rates and Average Revenues per Guest Room

Tokyo Disneyland Hotel Tokyo DisneySea Hotel MiraCosta Disney Ambassador Hotel

’14/3(Results)

’15/3(Forecast)

’14/3(Results)

’15/3(Forecast)

’14/3(Results)

’15/3(Forecast)

Occupancy rates High 90% range Low 90% range High 90% range High 90% range High 90% range High 80% range

Average revenues per Guest room

Approx. ¥55,000 Approx. ¥55,000 Approx. ¥55,000 Approx. ¥55,000 Approx. ¥50,000 Approx. ¥45,000

Preserved flowers Special occasion plan customers

Oriental Land36

Summary of the Fiscal Year

Ended March 31, 2014

Revenues

¥17.7 billion (up 5.6%)

Operating Income

¥1.3 billion (up 108.0%)

Due to the increase in revenue gained in the monorail segment

with the rise in theme park attendance figures, revenue was ¥17.7

billion (up 5.6%) and operating income ¥1.3 billion (up 108.0%).



Revenues


Operating Income


With the fall in theme park attendance figures, for the monorail

segment revenue is projected to fall to ¥16.5 billion (down 6.8%)

and operating income to ¥0.5 billion (down 58.8%).

Monorail with 30th anniversary decorations

Monorail interior

Other Business Segment

◆ The main facilities of the Other Business Segment are Ikspiari

(opened July 2000), Disney Resort Line (opened July 2001) and

MAIHAMA Amphitheater (opened September 2012).

◆ Ikspiari is a commercial complex based on the concept of “a

town full of stories and entertainment.” It includes approxi-

mately 140 shops and restaurants and a 16-screen cinema

complex.

◆ Disney Resort Line is a monorail connecting four stations

within Tokyo Disney Resort.

Segment Overview


48.1

24.0

27.9

Segment Revenues

■ Ikspiari 48.1%

■ Monorail 24.0%

■ Others 27.9%

¥17.7billion (up 5.6%)


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Our mission is to create happiness and

contentment by offering wonderful

dreams and moving experiences created

with original, imaginative ideas.

We aim to constantly maintain a perspective at the forefront

of each era as we strive for emotion as a company.

As we move ever closer to our ideal,

we have a firm conviction in its realization.

Our asset is our imagination. It may be said that imagination

is the Earth’s only inexhaustible resource.

Utilizing this asset, we pursue our business of bringing

abundant humanity and happiness.

In the lives of people today, emotions that we tend to cast aside,

dreams that we harbor deep in our hearts, moving experiences

that uplift our souls, joy that makes life worth living,

a true sense of peace that provides us with rejuvenation…

It is the mission of Oriental Land to bring all of these

to each and every person.

Business Mission

Acting in accordance with this business mission, we have strengthened

corporate governance with the aim of increasing our corporate value and

fulfilled our social responsibilities.

Oriental Land38

We will continue working to strengthen corporate governance, based on our understanding of the

importance of raising management transparency and fairness, achieving sustainable growth and devel-

opment, and fulfilling our social responsibilities.

Specifically, we aim to strengthen corporate governance by reinforcing internal controls, promot-

ing the reinforcement of management oversight functions, and increasing management transparency.

By conducting honest management that emphasizes corporate ethics through these measures,

we aim to increase our corporate value.

Basic Systems

◆ Business Execution

In response to changes in the operating environment, OLC has introduced the Corporate Officer

System in order to strengthen overall control of Group management and enhance corporate

governance. The purpose of the Corporate Officer System is to more clearly define supervisory and

executive responsibilities in each of the OLC Group’s businesses; to strengthen the management

supervisory functions of directors by shifting the focus of their roles to supervision; and to accelerate

decision making by promoting the delegation of authority to corporate officers.(As of July 1, 2014)

Corporate governance system Company with Board of Auditors

Management system Directors

Corporate officer system

Number of directors 11*1

Term of directors defined in articles of incorporation 2 years

Chairman of Board of Directors Chairman*2

AuditorsBoard of Corporate Auditors established Yes

Number of corporate auditors 4*3

External directors and auditorsNumber of external directors (independent officers) 1 (1)

Number of external auditors (independent officers) 3 (1)

*1. The maximum number of directors defined in the articles of incorporation is 15.

*2. Except when chairman serves concurrently as president.

*3. The maximum number of corporate auditors defined in the articles of incorporation is 6.

Corporate Governance Structure (As of July 1, 2014)

Co

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←

→

General Meeting of Stockholders

Appoint / Dismiss Appoint / DismissCooperate

Appoint / Dismiss

Audit

Audit

Appoint / DischargeSupervise

Instruct

Instruct

Appoint / DismissSupervise

Internal audits

Instruct / Report

Cooperate Internal audits

Cooperate

Transfer of authority

Deliberation on issues

Independent Accounting AuditorsRep

ort

Representative Directors

Corporate Auditor Office

Business Departments /Administrative Departments

Compliance Committee

Environment Committee

Risk Management Committee

Board of Corporate Auditors4 Auditors including 3 External Auditors

Board of Directors11 Directors including 1 External Director

Internal Auditing Department[Audits business execution of each department]

Executive Committee /Theme Park Committee

[Decide and report on key issues other than

matters decided by the Board of Directors]

Corporate Officers (18)[Execution of business]


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Corporate Governance

◆ Appointment of Directors

As described in the Company’s articles of incorporation, the appointment of directors must be

approved by a majority vote at a General Meeting of Stockholders at which stockholders whose

voting rights exceed one-third of the total voting rights are present. Furthermore, the appointment

of directors may not be approved by cumulative voting.

◆ Board of Directors

The Board of Directors consists of 11 directors, including one external director. Board of Directors’

meetings are held once a month in principle. All corporate auditors attend the meetings, whether

or not they hold standing positions. All directors and corporate auditors, who have different duties,

monitor management from their own unique perspectives. Additionally, directors conduct extensive

deliberation in accordance with the Company’s management policies to ensure that the Company’s

operations are not in violation of laws, regulations, or the articles of incorporation in any manner.

◆ Executive Committee

The Executive Committee makes decisions and files reports regarding important matters, excluding

items to be resolved by the Board of Directors, pertaining to the management of the Company.

◆ Theme Park Committee

The Theme Park Committee makes decisions and files reports relating to the operation and business

execution of the theme park business.

◆ Corporate Auditors

In accordance with the Corporate Auditor System adopted by the Company, the two standing cor-

porate auditors attend meetings of the Board of Directors, the Executive Committee, and the Theme

Park Committee as well as meetings of other committees the corporate auditors deem important,

where they state their opinions. Three of the four corporate auditors are external auditors, a struc-

ture that actively incorporates opinions from an objective and independent standpoint to enable

effective audits. Furthermore, to assist the corporate auditors in their duties, a specialized staff has

been assembled within the Corporate Auditor Office, which is a body that is independent from the

executive arm of the Company.

◆ Board of Corporate Auditors

In accordance with auditing policy and basic audit plans, the Board of Corporate Auditors carries out

such activities as listening to reports from directors, officers, and employees and viewing important

documents while working to ensure the effectiveness of its audits by discussing the status of deliber-

ation at important meetings, audit results, and other matters.

As a means of establishing and maintaining good corporate governance, the Company has clar-

ified the corporate auditors’ role and work responsibilities by setting the Regulations for the Board of

Corporate Auditors and the Audit Standards for Corporate Auditors.

◆ Internal Control

The Company has enhanced internal control with the establishment of the Internal Auditing

Department to conduct internal audits on compliance with laws and internal rules as well as effi-

cient business execution. This department is separate from the other executive departments of the

Company to ensure that it can conduct unbiased audits.

Internal audits are conducted with the goal of improving managerial efficiency and profitability.

Furthermore, the Internal Auditing Department objectively investigates and evaluates whether or

not business operations are in compliance with management policies, plans, and internal regulations

and are conducted in an efficient manner. The department offers advice as it deems necessary.

Number of Committee Meetings in

Fiscal Year Ended March 31, 2014

Board of Directors 10

Board of Corporate Auditors 9

Executive Committee 14

Theme Park Committee 19

Oriental Land40

◆ Independent Accounting Auditors

To ensure accurate accounting, we receive audits by KPMG AZSA LLC. Our designated unlimited

liability and engagement partners from KPMG AZSA LLC are certified public accountants Eiji Mizutani

and Hiroaki Komatsu. Additionally, a total of 19 accountants and assistants engage in other account-

ing and auditing activities.

Initiatives to Strengthen Corporate Governance Systems

1983 July Established the Emergency Control Center (ECC)

2000 June Established the Compliance Committee

Formulated the Business Guideline

2005 March Established the Information Security Management Committee

Formulated the OLC Group Information Security Policy

May Clarified division between management supervisory functions and execution• Introduced the Corporate Officer System

• Strengthened management supervisory functions by defining the Board of Directors’ primary

duty as supervision

• Reduced number of directors from 23 to 13

October Established the Risk Assessment Committee

2006 April Established the OLC Group Code of Compliance

November Established the Internal Control Promotion Committee(Abolished in June 2010 after its purpose had been fulfilled)

2007 March Formulated the OLC Group Risk Management Guidelines

2010 February Approved the CSR Policies at a meeting of the Executive Committee

April Strengthened overall risk management functions• Converted the Risk Assessment Committee into the Risk Management Committee

• Converted the Information Security Management Committee into the Information Security

Management Subcommittee in the Risk Management Committee

2013 January Formulated the OLC Group Social Media Guidelines

OLC-WAY 2016

Even with our thorough governance systems in place, ultimately the awareness of the people who

use these systems will decide if they will function or not. In recognition of this fact, the OLC Group is

working to spread and provide education about the OLC-WAY 2016, a set of shared promises among

all officers and employees. By having all officers and employees fulfill the promises of “Honesty,”

“Proactive Execution” and “Healthy Conflict” contained in the OLC-WAY 2016, we will better position

ourselves to fully implement the Medium-Term Plan and our strategies.

OLC-WAY2016

1. Honesty To focus on “only on now” and “only on yourself” is insufficient. Always

take a long-term perspective, and think from an all-inclusive, optimal

point of view.

2. Proactive Execution There is no growth without action. First, challenge yourself. Failure is the

best teacher.

3. Healthy Conflict The precedent is not necessarily the best. Discuss matters starting from

zero and heading toward the goal.


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Reinforcing the Internal Control System

◆ Compliance

We have established the OLC Group Code of Compliance, which outlines the rules for officers’ and

employees’ compliance with ethics and laws, and the Business Guideline, which outlines specific

standards for the practice of compliance.

◆ Strengthening Operations to Ensure Compliance

We set up the Compliance Committee, which is chaired by a designee of the president, to ensure the

legality of the Company’s management and to promote a spirit of compliance. If the committee dis-

covers misconduct by an officer or employee or a serious violation of law or the Company’s articles

of incorporation, it conducts the necessary investigations and reports its findings to management

or to the Executive Committee and the Board of Corporate Auditors. Also, we set up the Employee

Consultation Office as a channel for internal reporting within the OLC Group.

Furthermore, we institute education programs related to compliance. All employees participate

in these programs, which consist of e-learning courses and group discussions and serve as an oppor-

tunity for the sharing of information and awareness related to compliance issues. We also implement

strict monitoring to ensure the effectiveness of measures related to compliance.

◆ Risk Management System

In order to entrench a risk management system, the Company established the OLC Group Risk

Management Guidelines, which outline basic rules of conduct. In addition, the Risk Management

Committee, chaired by the president, identifies, analyzes, evaluates, and prioritizes risks that the

OLC Group faces and manages the overall risk management cycle to formulate individual preven-

tative and response measures, evaluate these measures, and constantly pursue their improvement.

Furthermore, we are bolstering our responsiveness toward unforeseen risks through the Emergency

Control Center (ECC), a response unit consisting of the president and other related personnel that

works to manage response systems in the event that risks materialize. For emergencies with a scale

great enough to affect Tokyo Disney Resort as a whole, a response coordination task force will be

established, under the direct supervision of the Company’s president.

◆ Information Security Management System

The OLC Group’s fundamental policies regarding information security are outlined in the OLC Group

Fundamental Information Security Policy, while specific rules of conduct are defined in the OLC

Group Information Security Policy. Acting in accordance with the OLC Group Information Security

Policy, we are enhancing our information security management systems by defining regulations

regarding the handling of information, documents, and information security systems. Additionally,

we have been working to improve the level of information security management through the cre-

ation of the Information Security Management Subcommittee in the Risk Management Committee.

These two organizations oversee the management of information.

◆ Reinforcing Decision Making, Authority, and Responsibilities

We have defined the administrative duties of each department and the Company’s ranking system

in the Organizational Rules as well as the authority of each position and the chain of command in

the Rules of Administrative Authority, in order to ensure directors’ efficient execution of duties.

Examples of Group Discussions

That Use Case Studies

Appropriate Labor Control

Prevention of Harassment

Management of Information

Specific Risks Handled

by the ECC

Earthquakes, fires, typhoons, snow, oxidase smog, lightning, power outages, accidents, food poisoning, infectious diseases, terrorism, and unscheduled park closures, among other risks

OLC Group Code of Compliance

The OLC Group’s officers and employees have a strong ethical commitmentto compliance with external laws and regulations and internal rules.

1. Prioritize safety above all else.

2. Respect human rights and prevent discrimination and harassment.

3. Engage in fair and transparent transactions.

4. Strictly control confidential information, including personal information.

5. Take a firm stance toward antisocial organizations.Business GuidelineB i G id li

Oriental Land42

◆ Group Management System

We have established Management Regulations for Associated Companies to serve as a guideline

for the appropriate management of subsidiaries. Additionally, by principle, corporate governance

systems of the Company also apply to its subsidiaries, and subsidiaries are expected to adhere to all

Company regulations.

Reinforcing Management Oversight Functions

◆ Utilizing External Directors and External Auditors

External directors give advice or make suggestions to the Board of Directors as necessary, mainly

speaking from the perspective of business managers with abundant experience, to ensure the valid-

ity and appropriateness of the decisions made by the Board of Directors. The expression of outside

perspectives helps guarantee the justness of management. Also, the external directors offer prudent

advice based on their wealth of experience and wide-ranging insights, further enhancing manage-

ment’s ability to make appropriate decisions.

The external auditors (excluding the standing external corporate auditors) conduct auditing

duties in accordance with auditing policies, duties of different positions, and the Audit Standards for

Corporate Auditors established by the Board of Corporate Auditors. These auditors also participate in

meetings of the Board of Directors. Further, they receive reports from directors, officers, and employ-

ees and work to maintain an understanding of the duties and actions of these individuals on a daily

basis. Through these efforts, the external auditors are devoted to creating an environment conducive

to information exchanges and audits. Moreover, these auditors participate in meetings of the Board

of Corporate Auditors, where they receive reports from the standing corporate auditors with regard

to proceedings at meetings of the Executive Committee and other important committees, auditing

procedures and results at subsidiaries, and the auditing plans and results of audits conducted by the

Internal Auditing Department.

The external auditors receive reports on the results of the independent accounting auditors’

year-end reviews and audits of the Company’s financial statements for the first to third quarters. They

also exchange opinions regarding the Company’s operations as necessary throughout the fiscal year

while remaining well versed in a variety of Company-related information.

Major Activities of External Director and Auditors (Fiscal year ended March 31, 2014)

Meetings of Board ofDirectors

(Held 10 times)

Meetings of Board of Corporate Auditors

(Held 9 times)Reason for appointment

Executive Director (External)

TsutomuHanada

9 *1 —

Tsutomu Hanada is an external corporate officer at Shin-Keisei Electric Railway Co., Ltd., among other companies. He was selected as an external director so that he may use his rich background of managerial experience and wealth of managerial expertise to offer appropriate advice to the Company’s management.

Corporate Auditors(External)

Akio Nakajima*2

(Standing)10 9

Akio Nakajima was selected as an external auditor so that he may use his rich back-ground of managerial experience and wealth of managerial expertise to supervise all areas of management and offer appropriate advice to the Company’s management.

Hiroshi Otsuka

10 9Hiroshi Otsuka was selected as an external auditor so that he may use his rich back-ground of managerial experience and wealth of managerial expertise to supervise all areas of management and offer appropriate advice to the Company’s management.

TatsuoKainaka

10 9

Tatsuo Kainaka is expected to supervise the Company’s management from an objective perspective based on the legal expertise he has developed through his experience as a Chief Justice of the Supreme Court and an attorney at law. Further, he has participated in committees and investigatory bodies that conduct third-party audits and investigations of other companies from a neutral position. This rich background of auditing experience was a key consideration behind his selection as an external auditor.

*1. In cases where an external director is unable to attend a meeting of the Board of Directors, the Company provides the director with a timely report concerning the proceedings of the meeting and requests the director’s opinions and advice related to the management of the Company.

*2. External auditor Akio Nakajima retired on June 27, 2014.


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◆ Reporting to Corporate Auditors

Directors and corporate officers of the Company quickly report risks that may greatly damage the

Company and occurrences that may significantly affect management to corporate auditors. In urgent

cases, employees may report such occurrences directly to the corporate auditors. We promote the

timely reporting of necessary and pertinent information for audits through the Policy for Reporting

to Auditors, which clarifies reporting procedures by stipulating what matters officers and employees

must report to the corporate auditors as well as the timing and method of reporting. Additionally,

should the corporate auditors discover that a director is acting in violation of laws, regulations, or the

articles of incorporation, they will report this fact to the Board of Directors.

◆ Ensuring the Reliability of Financial Reports

To ensure the reliability of financial reports, we established the Internal Control Promotion

Committee, which promotes all areas of our internal control system for financial reporting as set forth

in the Financial Instruments and Exchange Law. Additionally, we have prepared systems in order to

allow for mutual cooperation between departments responsible for constructing and evaluating the

OLC Group’s internal control system.

We have judged that our internal controls for consolidated financial reporting were effective as

of March 31, 2014, and submitted an internal control report on the results of the evaluation. The

contents are being audited by an external auditor. The OLC Group will continue working to reinforce

internal controls through ongoing evaluations of the system’s condition and application.

Increasing Management Transparency

◆ Compensation Paid to Directors and Corporate Auditors and Audit Compensation

In the fiscal year ended March 31, 2014, compensation paid to directors and corporate auditors and

compensation paid to independent accounting auditors (compensation for services prescribed in

Article 2, Paragraph 1, of the Certified Public Accountants Law of Japan and compensation for other

services) was as follows:

Compensation Paid to Directors and Corporate Auditors (Fiscal year ended March 31, 2014)(Millions of yen)

Recipients Amount

Compensation paid to directors 13 426

(Compensation paid to external director included in above) 1 6

Compensation paid to corporate auditors 4 68

(Compensation paid to external corporate auditors included in above) 3 40

Total 17 495

*1. Compensation amounts above include compensation paid to the two corporate directors that resigned following the conclusion of the 53rd Annual General Meeting of Stockholders held on June 27, 2013.

*2. Employee wages are not paid to directors who work concurrently as employees of the Company.

*3. The Company has abolished bonuses and such bonuses are not included in compensation paid to directors.

Audit Compensation (Fiscal year ended March 31, 2014) (Millions of yen)

Amount

Compensation based on audit certification 92

Other compensation —

Total 92

* The Company’s auditing contract with the independent accounting auditors does not clearly differentiate compensation for auditing as based on the Companies Act or the Financial Instruments and Exchange Law. Because the amounts cannot be practically differentiated, compensation for the period is included in the total.

Oriental Land44

◆ Policy for Determining Compensation Paid to Directors and Corporate Auditors

Directors are compensated in the form of set monthly payments only. The amount to be paid is

determined in accordance with policies accepted by the Board of Directors and must not exceed a

limit decided at the General Meeting of Stockholders. This amount is decided based on the position,

roles, and responsibilities of each director as well as in consideration of how well the directors met

management and individual goals and how much they contributed to the management of the

Company.

Corporate auditors are compensated in the form of set monthly payments only. The amount to

be paid is determined through negotiation with the corporate auditors and must not exceed a limit

decided at the General Meeting of Stockholders.

There is no set policy for determining the compensation of independent accounting auditors.

When deciding this compensation, the Company takes into account such factors as the number

of days used to conduct audits.

◆ Policy regarding Control of the Company (Outline)

The OLC Group’s management policy is to raise corporate value by continuing to be a company

that is widely loved and familiar, deepening the trust and understanding of all its stakeholders and

maximizing the resulting cash flow.

This management policy is aimed at continued long-term growth and is not meant for pursuing

short-term profits. The Company will not categorically reject the reform or vitalization of man-

agement through the transfer of rights to control the Company, nor will it obstruct an acquisition

with the potential to further enhance corporate value or the common benefit of stockholders.

The Company currently has no specific predetermined anti-hostile takeover measures. However,

the Company believes it is inappropriate for an individual or financial entity who may work to the

detriment of the Company’s corporate value (including individuals or financial entities that attempt

to manage without regard to the Company’s management policies) to control decision making

regarding the Company’s financial or operational policy. In the event such an individual or financial

entity should appear, the Board of Directors will consider appropriate measures with outside experts

and implement countermeasures in response to conditions.

◆ Investor Relations (IR) Activities of OLC

Top management, corporate officers, and general managers are supported by a specialized IR staff

consisting of six members. This staff constantly endeavors to improve the transparency and speed of

information disclosure.

We aim to disclose information in an easy-to-understand manner through such means as

transmitting on-demand video presentations of financial results and voice files of quarterly financial

teleconferences as well as by providing materials in Japanese and English that are geared toward

investors who are unfamiliar with OLC.

◆ Conducting Active Information Disclosure and Transmitting Feedback throughout the Company

OLC values opportunities for management to communicate directly with stockholders. The

Company holds discussion forums with its stockholders and other investors, participates in confer-

ences throughout Japan and overseas that are organized by securities companies, and conducts

Company explanations for private investors and securities companies.

We not only make reports to management, we also hold internal explanatory meetings for indi-

vidual departments that use our financial results meeting materials over 50 times a year in order to

communicate the opinions of stockholders and other investors to employees in detail. In addition,

the several thousands of opinions, suggestions, and evaluations received from our approximately

100,000 individual stockholders through questionnaires are sorted by content for regular feedback

for appropriate managers and departments so we can work to improve our management and busi-

ness activities.

Investor Relations Group


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How would you evaluate OLC’s corporate gover-

nance systems?

OLC’s corporate governance systems fall under the category of

Company with Board of Auditors, as defined by the Companies

Act of Japan. To introduce an outside perspective to the

Company’s management, three of the four corporate auditors are

external auditors, and there is also one external director. These

four external officers have extensive experience and specialized

knowledge and actively speak out about what the Company

should do over the medium to long term to develop in a sound

manner.

On the other hand, people within OLC proactively report to

the external officers when something comes up, and if anything

happens in OLC, we can quickly share information. Further, any

questions we ask are promptly and honestly reported. As corpo-

rate auditors, this is extremely helpful.

I truly believe that OLC’s corporate governance systems are

superior to those of other companies and preserve the original

purpose of the Board of Corporate Auditors.

What is a memorable board of directors meet-

ing discussion that you had in the past year

in preparation for the long-term sustainable

growth of OLC?

The board of directors meeting in April of this year where we dis-

cussed our future image for Tokyo Disney Resort was particularly

memorable.

A famous business manager once said that “Today’s effects

are no more than the results of past efforts. Future conditions are

determined by the efforts we make from now.”

At the meeting, when we talked about what we should do

about Tokyo Disney Resort, everyone gave it serious thought

and stated their views. However, even with enticing ideas about

individual attractions and other matters, the problem was the

question of whether these ideas provided, on the whole, a

balanced solution. Further, basic issues were brought up, such

as “How much money should we budget?” “Is the financial plan

reasonable?” and “Is safety and security ensured?” As a result, time

passed quickly.

And so, we again discussed what our future image was for

Tokyo Disney Resort and we all agreed that we wanted to create

“a place for people of all generations where they can enjoy them-

selves in diverse ways without mental or physical burden.” This is

something I also realized after going to Disney World in Florida

last year.

On that basis, the chairman said “At this meeting, for each

individual investment plan, let’s discuss whether it lives up to the

image we are trying to attain.” We had exceeded our scheduled

time limit, but the meeting was over.

Based on the appearance of the meeting, I thought that the

company was able, not surprisingly, to identify what each officer

was thinking.

As a corporate auditor of OLC, what is your func-

tion at the board of directors’ meeting?

In my view, my function is to express an opinion from an outside

perspective so that the company develops in a sound manner

over the medium to long term.

Therefore, if there is any internal problem, I am quickly

notified and try to fully understand the actual conditions of the

company. In that way, I am able to give precise feedback on

various agenda items of the board of directors’ meeting. On the

other hand, when time is pressing, I can promptly make a recom-

mendation to the officers.

At present, reports and requests for advice from OLC have

increased, so I have gotten busy, but I am happy to offer advice.

When I express an opinion, I don’t just consider its legal ramifica-

tions, I see if it makes common sense and is correct or not.

Are there any corporate governance issues that

OLC should address going forward?

Whatever corporate governance system is instituted, the import-

ant thing is people’s mental attitude toward its management.

Tokyo Disney Resort celebrated its 30th anniversary last year.

It is said that Masatomo Takahashi, president of Tokyo Disney

Resort at the time of its founding, worked like crazy and gave his

own money to make up for financing shortages. Today’s officers

need to constantly reflect on the tremendous resolve with which

Mr. Takahashi tackled his work to put others’ happiness above

his own. Above all, it is important that we not forget our sense of

gratitude for the Guests who have continuously supported Tokyo

Disney Resort for 30 years.

Because management is now running smoothly, all officers

need to keep these things in mind. If they do, I think we can natu-

rally maintain sound governance.

Interview with an External Corporate Auditor

Q

Q

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Corporate Auditor (External)

Tatsuo Kainaka Attorney at law

Oriental Land46

The OLC Group will continue to promote various activities involving Guests, communities, employees,

and the environment based on sincere corporate activities to create a future filled with dreams that

enrich people’s lives.

Providing the Peace of Mind That Comes from Safety

To ensure that all Guests are able to enjoy our theme parks with peace of mind, the OLC

Group prioritizes safety and quality control initiatives in the operation of its theme parks.

◆ Safety-Reinforcing SCSE Conduct Guidelines

Disney theme parks are operated based on the SCSE (Safety, Courtesy, Show, and Efficiency) conduct

guidelines. These standards guide the operational decisions and behavior of all of our Cast Members

to ensure that we provide the highest levels of service to all of our Guests. The order in which the

letters are presented also represents the order of their importance in the theme parks. In addition to

learning about the Disney philosophy when they join the Company, all of the Cast Members of the

Resort also learn about SCSE as part of the training for their assigned roles.

◆ Safety Management in the Theme Parks

We practice thorough safety management and have developed standards and guidelines to ensure

the safety of attractions, shows, and parades. All attractions are designed with the top priority placed

on safety. In coaster attractions, for example, safety devices such as safety bars are installed, and

automatic gates are placed at boarding areas.

With respect to the maintenance of our facilities, including these attractions, a total of approxi-

mately 1,000 engineers confirm and control safety by checking the facilities, taking shifts. In addition

to statutory inspections, they conduct daily and periodic checks based on strict in-house mainte-

nance standards.

Moreover, for shopping and dining in the theme parks, we have established the Basic Policy for

Merchandise Safety and Quality and the OLC Group Food Safety Policy. In line with those policies, we

strive to ensure that we provide products that are both safe and high quality through the implemen-

tation of thorough prod-

uct development and

food safety management

measures in cooperation

with partner manufactur-

ing plants and suppliers.

◆ Security and Disaster Response Systems

Security Cast Members at Tokyo Disney Resort routinely patrol the theme parks and their surround-

ing areas as well as conduct bag checks at the theme park entrances to prevent hazardous and

suspicious items from being brought into the theme park premises.

The emergency response operations team monitors the Resort 24 hours a day, 365 days a year,

inspects and maintains firefighting equipment, and is responsible for all fire prevention operations

within the theme parks. The team also oversees the operation of the Central Disaster Control

Monitoring Center, provides guidance and supervision in fire prevention activities, and is responsible

for theme park security. In the event of a fire, the Central Disaster Control Monitoring Center will

request immediate dispatching of firefighting units via its direct hotline to the fire department, while

our own firefighting team will take initial measures to tackle any fire. We will continue to maintain

security and disaster preparedness systems as we work to make the Resort even safer for Guests.

Cast Members positioned along a parade route

Cast Member confirming the safety of an attraction

SCSEafety

ourtesy

how

fficiency

S

C

S

E

Automatic gates installed at attraction boarding area

Bag check at a theme park entrance

◆ Items indicated with this mark are CSR activities of Oriental Land Co., Ltd.

◆ Items indicated with this mark include the CSR activities conducted and managed by Oriental Land Co., Ltd. in its capacity as the owner/operator of Tokyo Disney Resort under license from Disney Enterprises, Inc.


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Corporate Social Responsibility (CSR)

◆ Emergency Response Methods

We have developed an emergency response manual that is designed to enable Cast Members to

take prompt action in the event of an earthquake or other emergency at our theme parks. We also

conduct comprehensive emergency drills in each section of our theme parks four times a year, in

addition to a program of approximately 170 drills carried out on an individual-building basis each

year. In this way, we ensure that our employees fully understand the procedures in the emergency

response manual. Moreover, we gather information on disaster prevention from government organi-

zations and specialists with the intent of increasing knowledge and improving skills within the Group.

The manual ensures that we are ready to take prompt action in the event of a natural disaster.

Several sites have been identified within the two theme parks that can be used for evacuation, so

that appropriate evacuation areas can be designated as the situation demands. We will also set up

temporary emergency shelters to facilitate emergency assistance.

We will continue to strive for greater disaster preparedness to ensure our ability to provide the

optimal response in any emergency.

Incorporating Social Perspectives and Needs into Our Business

We remain committed to bringing happiness to our Guests and the community through

business operations that give due consideration to the diversifying values of our Guests

and by addressing concerns and matters related to the community as a whole.

◆ Pursuing Normalization

At Tokyo Disney Resort, we are continuing our efforts to establish barrier-free facilities and other

support systems for Guests with disabilities. For example, we have installed attractions that can be

enjoyed without leaving a wheelchair or needing any kind of help. Further, scale models have been

placed in the theme parks to communicate the shapes of attractions and characters to Guests with

visual disabilities. We are committed to making continuous improvements so that even more Guests

can enjoy the Resort.

Our efforts go beyond facilities. We are also conducting Cast education

and training programs to bolster our ability to offer Guests with disabilities

services that better meet their individual needs. To enable communication

with a greater number of Guests, many Cast Members have learned sign

language, and currently we have approximately 100 employees holding

certificates of proficiency in this language.

◆ Implementing Improvement Measures Based on Guest Feedback

The comments from Guests visiting Tokyo Disney Resort offer myriad clues as to how we can make

the Resort even better. These comments are analyzed and shared within the Company, and we use

them to implement a wide range of measures aimed at improving the safety and quality of our

services and facilities. We will continue to listen carefully to what our Guests tell us and reflect their

feedback in our constant efforts to improve Tokyo Disney Resort. Our goal is to provide a wonderful

experience for all our Guests.

Examples of Facilities and Services Improved in Response to Guest Feedback

Discomfort while waiting in line for attractions for long periods of time on hot days

Installed parasols to keep Guests from being exposed to direct sunlight and misting water systems to lower temperatures around attractions

Separation of smoking areas in theme parks

Planted shrubbery around smoking areas to reduce the spread of second-hand smoke, set up new indoor smoking areas, and clarified smoking areas

Pin of sign language

Tokyo Disney Resort Guest Information Center

Regular implementation of comprehensive emergency drills for the safety of Guests

Attractions that can be enjoyed with a wheelchair

Oriental Land48

Comments from a Winner of the Spirit Award in Spirit of Tokyo Disney Resort Program 2013

“I am very pleased to receive such a wonderful award. I believe that today’s Tokyo Disney Resort can provide large

numbers of Guests with happiness only because of the effort and passion of

our many predecessors who inherited the strong aspiration of Walt Disney

to give people joy. That effort and passion continue today.

I am very proud of my colleagues who create this happy place called

Disney Resort, whether they are on stage or back stage. I want to continue

offering happiness not only to our Guests but also to my fellow Cast Members.

And together with my colleagues who share a common aspiration, I would like

to provide our Guests with moving experiences beyond their expectations.”

◆ Delivering Happiness to Children around the World Together with Our Guests

In our aspiration to deliver “Happiness,” the theme of Tokyo Disney Resort 30th Anniversary events,

to children around the world together with our Guests, we launched for the first time in 2013 the

“Make Happiness!” Program, an initiative to contribute 1% of the sales price (tax excluded) of special

goods (10 kinds) for Christmas to UNICEF as a donation. Donations totaling 11,084,040 yen was used

for education support programs in Asia through the UNICEF Schools for Asia initiative.

Enhancing the Work Environment and Work-Related Systems

The OLC Group has introduced a variety of education programs matched to each work

area and a career advancement program. Additionally, we are implementing a number

of measures to help employees develop harmony between their work and private lives

while also promoting occupational health and safety.

◆ Training and Career Development Systems

As stated in our management credo, we are committed to “respecting individuals and supporting

their work” and offer our employees both the opportunity to maximize their potential and a range of

programs that give them the support they need to enhance their professional skills. Our employees

are encouraged to pursue career development opportunities within the Group, and we have a sys-

tem that enables part-time employees to apply for theme park employee status and for theme park

employees to apply to become corporate employees.

Moving ahead, we will continue to provide support systems for employees to allow them to

improve themselves and develop their abilities in line with their individual goals and desires.

◆◆ Corporate Culture as a Wellspring for the Creation of Moving Experiences

The OLC Group cultivates a corporate culture to continue providing magical dreams, moving experi-

ences, delight and contentment and constantly creating new moving experiences.

For example, with the aim of fostering a culture where original, imaginative ideas are created, as

set out in our corporate mission, we have introduced initiatives designed to let our employees shine,

such as the “I Have an Idea” program, which encourages all employees to propose new ideas for mer-

chandise and food items, etc. that delight our Guests for roll-out in Tokyo Disney Resort. In addition,

we have also introduced the “Spirit of Tokyo Disney Report Program,” which allows Tokyo Disney

Report Cast Members to recognize and praise their peers, the “Five Star Program,” in which supervisors

recognize Tokyo Disney Report Cast Members for their excellent services, and “Thanks Day,” on which

company officers, corporate employees and theme park Cast Members treat part-time Cast Members

working on the front line in Guest services as Guests themselves, in an expression of gratitude.

Through these programs, we conduct activities to increase employee satisfaction (ES) and foster

a corporate culture where Cast Members, who are the providers of happiness, are able to approach

their work with a strong motivation.

“Make Happiness!” products

Award ceremony for the “I Have an Idea” program

Five Star Cards acknowledgingCast Members’ superior performance

Ceremony of Spirit of Tokyo Disney Resort

◆◆ “Spirit of Tokyo Disney Resort Program,” “Five Star Program,” and “Thanks Day” are conducted and managed by Oriental Land Co, Ltd. in its capacity as the owner/operator of Tokyo Disney Resort under license from Disney Enterprises, Inc.


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Undertaking Environmental Protection Activities

Our Environmental Policy defines the OLC Group’s intentions to fight global warming,

conserve energy, prevent pollution, and recycle waste, among other activities.

◆ Measures against Global Warming

The OLC Group is working to prevent global warming by promoting measures to reduce CO2 emis-

sions and energy consumption. Initiatives to this end have been implemented since the construction

phase of the Resort. To reduce CO2 emissions, we have taken steps to decrease energy consumption

by installing a large-scale heat pump in our central energy plant*. Furthermore, to reduce energy

consumption, we have established the Energy Management System and have been taking a diverse

range of measures, such as promoting the visibility of energy consumption levels and changing

lights in buildings and those used in night parades to light-emitting diodes (LEDs).

We also installed solar panels on the rooftops of our buildings, and we are installing additional

facilities to increase renewable energy generation to equal the energy used in our nighttime parades.

* Rather than building heat pumps for each of the facilities in our theme parks, such as attractions, restaurants, and shops, we built a central heat pump, which distributes the heat used in the air conditioners in all of these facilities.

◆ Initiatives to Reduce Waste

We have been working to reduce waste by installing hand dryers in restrooms and using tableware

made of porcelain, ceramic, and metal in dining facilities.

Additionally, we are aggressively promoting recycling through such initiatives as the appropriate

disposal of waste and separation of garbage based on highly detailed specifications. As a result of

these measures, we have raised the recycling rate for Tokyo Disney Resort as a whole from less than

50% in the fiscal year ended March 31, 2003 — the first full year of operation of Tokyo DisneySea —

to more than 70% in the fiscal year ended March 31, 2014. Among the various recycling categories,

the recycling rate for kitchen garbage at the theme parks is now almost 100%.

◆ Effective Use of Water Resources

The water used at Tokyo Disney Resort is collected and purified at the Company’s own water treat-

ment facilities. Furthermore, approximately 60% of used water is subsequently recycled and used in

toilets. Additionally, we have the OLC Group Water Supply and Disposal Guidelines based on rele-

vant regulations, and we are constructing systems to enable optimal management and operation of

water supply and wastewater in accordance with these guidelines.

Central energy plant that manages the heat used in air conditioners throughout the theme parks

LEDs used to light the edges of the World Bazaar

Water is collected and purified at OLC’s own water treatment facilities

Solar panels installed on the roof of a Company building

Some parts of our Cast costumes aresourced from recycled materials

Our Environmental Policy

Environmental Philosophy

— To bring magical dreams and moving experiences to future generations —

We seek to work in harmony with the environment in all our business activities so that we may continue

to offer magical dreams, moving experiences, delight, and contentment for all time.

OLC Group Environmental Action Policy

❶ The OLC Group will make every effort to fight global warming, conserve energy, prevent pollution,

promote green purchasing, consider biodiversity, and reduce and recycle its waste in all aspects of its

business operations.

❷ The OLC Group will comply with all statutory regulations and internal standards related to the

environment.

❸ The OLC Group will establish, implement, and review environmental objectives and targets on a

regular basis.

❹ The OLC Group will offer education and training to all its employees to ensure that they understand

and are capable of acting independently on environmental policies.

Oriental Land50

Promoting Social Contribution Activities

The social contribution activities of the OLC Group are deeply rooted in its business and

OLC places particular emphasis on programs that support positive childhood development.

◆ Programs That Foster the Positive Development of Children

The OLC Group operates a new community action program for children, called the “School of

Magical Dreams and Moving Experiences.” This program seeks to encourage children to have dreams

and aspirations and to help make those dreams a reality.

In addition, in July 2010, the OLC Group established the “Children’s Smile Fund.” Through this

fund, we collect charitable contributions that are made by our employees on a voluntary basis either

as a fraction of 99 yen or less of their monthly salaries or bonuses or as an optional number of 100-

yen units. Twice a year, these funds are sent to one of five designated charities based on employee

selection. Moreover, the Company matches employee contributions. Through this program, the

Company and its employees are coming together to support children around the world who face

various hardships and challenges.

◆ Contributions to Communities

As part of our activities to support local children, we are proactively cooperating with workplace

experience learning and offering lessons from visiting experts. In the Workplace Experience Learning

Program, which we have been running for junior high school students in the city of Urayasu since

the fiscal year ended March 2006, participants learn through experiencing various jobs that support

Tokyo Disney Resort behind the scenes that all the work we do leads to the happiness of our Guests.

From the fiscal year ended March 2013, we have also been offering dance lessons from visiting

experts in choreography and dancers, in response to the need to incorporate dance into the health

and physical education of the first and second grade junior high school students.

◆ Activities Related to the Theme Park

As an ongoing commitment since Tokyo Disneyland opened to the public in 1983, the OLC Group has

been working to deliver the Disney dream to people who are unable to visit Tokyo Disney Resort. In the

fiscal year ended March 31, 2014, Tokyo Disney Resort Ambassadors and Disney characters visited a total

of 34 pediatric wards, special-needs schools, and other children’s facilities located throughout Japan.

Further, in 2012, OLC began offering support for children suffering from serious diseases in cooperation

with NPO Make-A-Wish of Japan, with the aim of granting their wishes related to Tokyo Disney Resort.

◆ Support for Victims of the Great East Japan Earthquake

The OLC Group is conducting ongoing support programs for victims of the Great East Japan

Earthquake in heavily affected regions. As part of those efforts, we engage in activities to bring smiles

to the faces of the children, including joint concerts with the involvement of students from junior

high and high schools. Furthermore, we have been donating stationery sets to students who have

entered the first grade of elementary school in the stricken areas since 2012. To date, this program

has been conducted three times and more than 150,000 sets have been donated.

School of Magical Dreams and Moving Experiences

Lessons for junior high school students in Urayasu City

Stationery sets donated to children who affected by the earthquake

Designated Charities

The Japan Committee for UNICEF

Save the Children Japan

The Japan Association

for the United Nations World

Food Programme

Japan Committee Vaccines

for the World’s Children

Médecins Sans Frontieres

OLC Group Policy on Community Action Programs

The OLC Group seeks to engage in community action programs that focus on the positive development of children

— our hope for the future — as a means of creating healthy and happy families, regions, and communities.

• Programs Fostering the Positive Development of Children

The OLC Group will support programs that “nurture the heart” with a view toward developing intellectual

curiosity and consideration for others in children.

• Programs That Support Children

The OLC Group will support programs that provide assistance to children who have been placed at a

disadvantage for various reasons.


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Standing Corporate Auditor

Fumio Tsuchiya1979 Entered the Company

2005 Corporate Auditor

Standing Corporate Auditor

(External)

Tetsuo Suda1968 Entered Keisei Electric Railway Co., Ltd.

2014 Corporate Auditor of the Company


Hiroshi Otsuka1958 Entered Keisei Electric Railway Co., Ltd.


<Concurrent office>

Advisor of Keisei Electric Railway Co., Ltd.

Executive Director (External) of Tokyu Construction Co., Ltd.

Corporate Auditor (External) of The Keiyo Bank Ltd.


Tatsuo Kainaka2002 Chief Justice of the Supreme Court

2010 Licensed attorney at law Entered Takusyou Sogo Law Office


<Concurrent office>

Executive Director (External) of Japan Airlines Co., Ltd.

External Director of Mizuho Financial Group, Inc.

President of Life Insurance Policyholders Protection Corporation of Japan

Representative Director,

President and COO

Kyoichiro Uenishi1980 Entered the Company

2009 Representative Director, President and COO

<Concurrent office>

Corporate Auditor of Keisei Electric Railway Co., Ltd.

Representative Director,

Chairman and CEO

Toshio Kagami1972 Entered the Company

2005 Representative Director, Chairman and CEO

<Concurrent office>

Representative Director andChairman of Milial Resort Hotels Co., Ltd.

Corporate Auditor (External) of Keiyo Gas Co., Ltd.

Corporate Auditor (External) of TV TOKYO Holdings Corporation

Executive Director

Norio Irie1975 Entered the Company

2003 Executive Director

Executive Director

Yoritoshi Kikuchi1980 Entered the Company


Board of Directors

Corporate Auditors

(As of July 1, 2014)

Oriental Land52

Board of Directors, Corporate Auditors, and Corporate Officers

President Officer

Kyoichiro UenishiProject Strategy Department, Business Development Department

Executive Vice President Officer

Norio IrieDirector of Marketing Division;Casting Department

Executive Officers

Yasushi TamaruGeneral Manager of Theme Park Business Unit; Resort Creation Department

Shigeru SuzukiGeneral Affairs Department, Publicity Department

Yumiko TakanoRepresentative Director and President of Milial Resort Hotels Co., Ltd.

Akiyoshi YokotaSocial Activity Promotion Department,Food Safety Control Department, Business Solution Department,Internal Auditing Department

Yoritoshi KikuchiDirector of Engineering Division

Yuichi KatayamaFinance/Accounting Department, Sponsor Marketing Alliance Department

Officers

Hirofumi KohnobeDirector of Food Division

Etsuko NagashimaCS Enhancement Department,Cast Development Department

George YasuokaTheatrical Business Division,Director of Theatrical Business Division,Representative Director and President of IKSPIARI Co., Ltd.

Wataru TakahashiCorporate Supervision Department,IT Promotion Department

Masufumi SumimotoTheme Park Business Supervision Department

Tetsuro SatoDirector of Operations Division

Satoshi HayashiTheme Park Facility Development Department,Director of Theme Park Facility Development Department

Seiji SakaiDirector of Entertainment Division

Yuichi KanekiDirector of Human Resources Division;Director of Human Resources 1 Department

Rika KanbaraDirector of Merchandise Division

Executive Director

Akiyoshi Yokota1980 Entered the Company


Executive Director

Shigeru Suzuki1980 Entered the Company


Executive Director

Yasushi Tamaru1975 Entered the Company


Executive Director

Yumiko Takano1980 Entered the Company


<Concurrent office>

Representative Director and President of Milial Resort Hotels Co., Ltd.

Executive Director

Hirofumi Kohnobe1981 Entered the Company


Executive Director (External)

Tsutomu Hanada1966 Entered Keisei Electric Railway Co., Ltd.

2005 Executive Director of the Company

<Concurrent office>

Representative Director and Chairman of Keisei Electric Railway Co., Ltd.

Executive Director (External) of Shin-Keisei Electric Railway Co., Ltd.

Note: Executive Director (External) Tsutomu Hanada and Corporate Auditor (External) Tatsuo Kainaka satisfy the requirements for independent officers as specified in Article 436-2 of the Securities Listing Regulations of Tokyo Stock Exchange, Inc.

Corporate Officers

Executive Director

Yuichi Katayama2013 Entered the Company



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54 Oriental Land

Six-Year SummaryOriental Land Co., Ltd. and Consolidated Subsidiaries Fiscal Years Ended March 31

Millions of yenThousands of U.S. dollars*1

’14/3 ’13/3 ’12/3 ’11/3 ’10/3 ’09/3 ’14/3

FOR THE YEAR:

Revenues ¥473,573 ¥395,527 ¥360,061 ¥356,181 ¥371,415 ¥389,243 $4,601,370

Operating income 114,491 81,467 66,923 53,664 41,924 40,096 1,112,427

Income before income taxes 112,672 80,867 55,289 38,086 37,780 34,841 1,094,753

Total income taxes 42,100 29,383 23,183 15,188 12,354 16,878 409,055

Net income 70,572 51,484 32,114 22,908 25,427 18,089 685,698

Capital expenditures*2 20,367 28,730 23,210 27,904 19,419 40,140 197,892

Depreciation and amortization 36,934 36,132 39,850 39,985 46,695 49,733 358,861

EBITDA*3 151,426 117,599 106,773 93,649 88,619 89,829 1,471,298

Free cash flow*4 87,139 58,886 48,754 34,989 52,703 27,682 846,667

AT YEAR-END:

Total assets ¥664,539 ¥655,544 ¥619,494 ¥574,635 ¥615,090 ¥644,992 $6,456,850

Theme parks, resorts and other property, at cost 438,788 456,900 447,110 472,152 487,871 516,040 4,263,389

Total net assets 493,697 432,262 383,085 357,779 366,473 373,660 4,796,901

Interest-bearing debt 58,448 124,020 149,580 142,937 173,289 193,019 567,897

Yen U.S. dollars*1

PER SHARE DATA:

Net income (EPS) ¥ 845.32 ¥ 616.96 ¥ 384.98 ¥ 265.26 ¥ 280.17 ¥ 196.84 $ 8.21

Diluted net income 815.03 580.87 372.87 — — — 7.92

Net assets (BPS) 5,912.53 5,178.67 4,592.03 4,288.99 4,240.59 4,109.59 57.45

Cash dividends 120.00 120.00 100.00 100.00 100.00 70.00 1.17

%

SELECTED FINANCIAL DATA:

Operating margin 24.2% 20.6% 18.6% 15.1% 11.3% 10.3%

Return on revenues 14.9 13.0 8.9 6.4 6.8 4.6

Return on assets (ROA) 10.7 8.1 5.4 3.9 4.0 2.6

Return on equity (ROE) 15.2 12.6 8.7 6.3 6.9 4.7

Equity ratio 74.3 65.9 61.8 62.3 59.6 57.9

Payout ratio 14.2 19.5 26.0 37.7 35.7 35.6

Annual theme park attendance (Thousands of Guests) 31,298 27,503 25,347 25,366 25,818 27,221

Revenues per Guest (Yen) ¥11,076 ¥10,601 ¥10,336 ¥10,022 ¥9,743 ¥9,719

Number of shares issued (Thousands) 90,923 90,923 90,923 90,923 90,923 95,123

Number of employees 4,348 4,273 3,939 3,960 3,954 4,115

*1. The U.S. dollar amounts are provided for convenience only and have been converted at the rate of ¥102.92 to U.S.$1, the prevailing exchange rate at March 31, 2014.

*2. Capital expenditures includes tangible and intangible assets and long-term prepaid assets.

*3. EBITDA = Operating income + Depreciation and amortization, aggregated

*4. Free cash fl ow = Net income + Depreciation and amortization, aggregated – Capital expenditures

� Interest-Bearing Debt / Debt-to-Equity Ratio


� ROE

(%)

’14/3’13/3’12/3’11/3’10/3

58.4

149.6142.9

173.3

124.00.47

0.400.39

0.29

0.12

’14/3’13/3’12/3’11/3’10/3

15.2

8.7

6.36.9

12.6

Interest-Bearing Debt Debt-to-Equity Ratio

Annual Report 2014

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Enhancing Risk Responsiveness and the Financial Base

As a financial measure to respond to future risks, in September 2011,

we took out a new long-term loan of ¥50.0 billion as earthquake risk

countermeasures financing. This step has prepared the OLC Group to

deal with a massive seismic event above and beyond any previously

imagined. These funds will be held and managed mainly as cash and

deposits, allocated to working capital and similar uses should our

theme parks need to close temporarily.

At the same time, strengthening our financial base by paring

down interest-bearing debt is also essential, as this ensures we have

the capacity to invest in new growth opportunities. To this end, we

repaid debt during the fiscal year ended March 31, 2014 and also took

on debt assumption agreements (seventh issue (¥30.0 billion) and

ninth issue (¥20.0 billion) of unsecured bonds). As a result, interest-

bearing debt was ¥58.4 billion and the debt-to-equity ratio was 0.12

times at March 31, 2014.

In this way, by preparing for risks through low-expense borrowings

while steadily strengthening our financial base by reducing the level of

high-interest debt from the current level, we are simultaneously laying

the groundwork for responding swiftly to a range of decisions.

Control fixed costs with sound sales plan and maintain business management approach that maximizes profits

In the fiscal year ended March 31, 2014, record-breaking theme

park attendance due to the success of Tokyo Disney Resort 30th

Anniversary events resulted in substantial sales and profit increases to

record-breaking levels.

Because the fiscal year ending March 31, 2015 is the year follow-

ing the Tokyo Disney Resort 30th Anniversary, lower sales and profits

are projected.

Theme park attendance is expected to decrease 10.5% from the

previous year to 28 million. The reason that we expect this substantial

decrease is because it is the year following the anniversary event, and

just as before, we will continue to take steps to control costs through

a sound sales plan and take a business management approach that

maximizes profits. Therefore, we are determined to achieve sales and

profit targets for the fiscal year ending March 31, 2015.

Aiming for Long-term Sustainable Improvement in Corporate Value

In order to allocate cash flow from operating activities to our core

business and new business growth, we plan to pay an annual divi-

dend of ¥120 per share for both the fiscal year ended March 31, 2014

and the fiscal year ending March 31, 2015. Going forward, we aim to

pay stable dividends while taking external factors into consideration.

ROE was 15.2% in the fiscal year ended March 31, 2014. We expect

an ROE of 10.8% in the fiscal year ending March 31, 2015.

We will continue to provide steady returns to shareholders while

seeking to raise corporate value through cash flow from operating

activities growth.

Seeking to raise corporate value by allocating operating cash flow to growth investments

A new financial policy has been established for the 2016 Medium-Term Plan, through

which cash flow from operating activities will be maximized over the next three years

and channeled into growth investments in core and new businesses. This will generate

more free cash flow and significantly raise corporate value.

OLC aims to continue to provide steady returns to shareholders while raising its long-

term sustainable corporate value through the growth of cash flow from operating activities.

ow to growth investments

gh

ars

ate

ng-

es.

Executive Director and Executive Officer of Finance / Accounting Department

Yuichi Katayama

Message from the Officer in Charge of the Finance /Accounting Department

(1) Revenues and Income During the fiscal year ended March 31, 2014, despite the con-tinued risk of an overseas economic downturn, the Japanese economy was on track to a modest recovery against a backdrop of monetary easing and economic stimulus measures by the government and Bank of Japan. For the OLC Group, given the success of Tokyo Disney Resort 30th Anniversary events, theme park attendance and revenues per Guest both set record highs. As a result, in the fiscal year ended March 31, 2014 the OLC Group recorded revenues of ¥473.6 billion (up 19.7%), operating income of ¥114.5 billion (up 40.5%), and net income of ¥70.6 billion (up 37.1%), all record highs.

(Billions of yen)



Increase (decrease)

Change from previous period

(%)

Revenues 473.6 395.5 78.0 19.7

Theme Park Segment 390.9 329.8 61.1 18.5

Hotel Business Segment 64.9 48.9 16.0 32.7

Other Business Segment 17.7 16.8 0.9 5.6

Operating Income 114.5 81.5 33.0 40.5

Theme Park Segment 97.2 68.5 28.7 41.9

Hotel Business Segment 15.9 12.0 3.9 32.2

Other Business Segment 1.3 0.6 0.7 108.0

Net Income 70.6 51.5 19.1 37.1

Revenues

Due to higher revenues in all three segments (the Theme Park Segment, Hotel Business Segment and Other Business Segment) revenues came to ¥473.6 billion (up 19.7%).

• Theme Park Segment

Revenues were ¥390.9 billion (up18.5%). Theme park attendance set a record high with 31.30 million (up 13.8%) due to the success of Tokyo Disney Resort 30th Anniversary events, the increased attraction to visit our parks as we celebrated the major milestone of our 30th Anniversary, and favorable external conditions includ-ing good weather and higher domestic travel and leisure demand. Further, revenues per Guest reached a record high of ¥11,076 (up 4.5%) due to the sound performance of merchandise related to Tokyo Disney Resort 30th Anniversary.

Theme Park Information



Change from previous period (%)

Theme park attendance(Millions of Guests) 31.30 27.50 13.8

Revenues per Guest (yen) 11,076 10,601 4.5

Ticket receipts (yen) 4,598 4,483 2.6

Merchandise (yen) 4,185 3,860 8.4

Food and beverages (yen) 2,292 2,259 1.5

• Hotel Business Segment

Due to a rise in occupancy rates associated with increases in theme park attendance acquisition of all shares in Brighton Corporation on March 29, 2013, and other factors, revenues came to ¥64.9 billion (up 32.7%). Further, occupancy rates at each of the Disney Hotels (the Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta and Disney Ambassador Hotel) were in the upper 90% range and strong due to increased theme park attendance.

Overview of Consolidated Results (Fiscal Year Ended March 31, 2014) 1

473.6

’14/3

395.5

’13/3

360.1

’12/3

356.2

’11/3

371.4

’10/3

70.6

’14/3

51.5

’13/3

32.1

’12/3

22.9

’11/3

25.4

’10/3

◆ Revenues

(Billions of yen)

◆ Net Income

(Billions of yen)

56 Oriental Land

Management’s Discussion and Analysis of Operations

• Other Business Segment

Revenues were ¥17.7 billion (up 5.6%) as a result of increases in revenue from monorail operations due to higher theme park attendance.

Operating Income

Operating income was ¥114.5 billion (up 40.5%), a record high for the 6th consecutive year due to record-high theme park atten-dance and revenues per Guest. The operating margin improved 3.6 percentage points to 24.2%.


Despite increased fixed and miscellaneous costs, such as per-sonnel expenses including the work hours for part-time employ-ees and costs associated with the Tokyo Disney Resort 30th Anniversary, operating income reached ¥97.2 billion (up 41.9%), due to increased revenues.


Due to revenue increases associated with rises in occupancy rates as a result of Tokyo Disney Resort 30th Anniversary, operating income rose to ¥15.9 billion (up 32.2%).


Thanks to higher revenue in the monorail business, operating income reached ¥1.3 billion (up 108.0%). * Please see the OLC Group at a Glance and Review of Consolidated Operations on

pages 32 through 37 for detailed segment information.

Other Income (Expenses) and Income before Income Taxes

Other expenses totaled ¥1.8 billion, compared with other expenses of ¥0.6 billion in the previous fiscal year. Despite increased losses from the redemption of bonds due to the assumption of debt, we steadily reduced interest-bearing debt to ¥58.4 billion, and the debt-to-equity ratio was 0.12 times. As a result of the above, income before income taxes increased to ¥112.7 billion (up 39.3%).

Income Taxes

Income taxes were ¥42.1billion (up 43.3%). The effective tax rate, calculated as the ratio of income taxes to income before incomes taxes, rose 1.1 percentage points from 36.3% in the previous fiscal year to 37.4%.

Net Income

Net income was ¥70.6 billion (up 37.1%). Net income per share increased to ¥845.32 and return on equity (ROE) to 15.2%.

(2) Assets, Liabilities, and Net AssetsAssets

Total assets as of March 31, 2014 were ¥664.5 billion (up 1.4%). Total current assets rose to ¥174.4 billion (up 15.6%) due to increases in cash and cash equivalents. Total non-current assets declined to ¥490.2 billion (down 2.9%) due to reductions in property, plant and equipment by increasing depreciation and amortization.

Liabilities

Total liabilities as of March 31, 2014 were ¥170.8 billion (down 23.5%). Current liabilities fell to ¥109.7 billion (down 0.1%) due to a decline in the current portion of long-term debt. Total non-current liabilities declined to ¥61.1 billion (down 46.1%) due to a reduction in long-term debt resulting from the debt assumptions of the 7th issue of unsecured bonds (¥30 bil-lion) and 9th issue of unsecured bonds (¥20 billion).

Net Assets

Total net assets as of March 31, 2014 were ¥493.7 billion (up 14.2%) as a result of an increase in retained earnings from the net income. The equity ratio stood at 74.3% (up 8.4 percentage points).

664.5

’14/3

655.5

’13/3

619.5

’12/3

574.6

’11/3

615.1

’10/3

4.0 3.9

5.4

8.1

10.7

493.7

’14/3

432.3

’13/3

383.1

’12/3

357.8

’11/3

366.5

’10/3

59.6 62.3 61.8 65.9

74.3

Total Assets Total Net AssetsReturn on Assets (ROA) Equity Ratio

◆ Total Assets / Return on Assets (ROA)


◆ Total Net Assets / Equity Ratio



Financial Section /Corporate D

ata / Stock Information

(3) Cash FlowsCash Flows

Cash and cash equivalents as of March 31, 2014, totaled ¥80.0 billion, up ¥19.4 billion year on year.

• Cash Flows from Operating Activities

Net cash provided by operating activities increased ¥28.7 billion year on year to ¥120.7 billion mainly due to a rise in net cash pro-vided by operating activities.

• Cash Flows from Investing Activities

Net cash used in investing activities decreased ¥22.0 billion year on year to ¥23.4 billion due to lower spending on property, plant and equipment.

• Cash Flows from Financing Activities

Net cash used in financing activities increased ¥43.4 billion year on year to ¥77.9 billion due to higher expenditures for the redemption of bonds.

Capital Expenditures and Depreciation and Amortization

Capital expenditures were ¥20.4 billion (down 29.1% year on year). This was due to lower capital expenditures for “Star Tours” at Tokyo Disneyland and for “Toy Story Mania!” at Tokyo DisneySea, as well as a year-on-year decrease in investments for the purchase of land. Depreciation and amortization was ¥36.9 billion (up 2.2%).

Free Cash Flow

Free cash flow totaled ¥87.1 billion (up 48.0%) as a result of reduced capital expenditure and an increase in net income.

Fund procurement and ratings

The OLC Group secures liquidity based on cash flow generated by daily operating activities. In the 2016 Medium-Term Plan announced in April 2014, a policy was established aiming to raise corporate value by further generation of free cash flow from cash flow from operating activities, based on maximization of cash flow from operating activities as the source of funding for investments. This replaces the free cash flow policy adopted to date. Turning to ratings, as of the end of the period under review, Oriental Land was given an AA by Japan Credit Rating Agency (JCR) and an AA- by Rating and Investment Information (R&I).

120.7

’14/3

92.0

’13/3

90.3

’12/3

74.3

’11/3

72.1

’10/3

(23.4)(45.4)

(73.7)

(25.2)(22.7)

(77.9)

(34.5)(3.5)

(61.0)(53.1)

20.4

’14/3

28.7

’13/3

23.2

’12/3

27.9

’11/3

19.4

’10/3

36.936.139.940.0

46.7

Cash Flows from Operating Activities Capital ExpendituresCash Flows from Financing Activities

Cash Flows from Investing Activities Depreciation and Amortization

◆ Cash Flows

(Billions of yen)

◆ Capital Expenditures / Depreciation and Amortization

(Billions of yen)

58 Oriental Land

(1) Forecast for Revenues and Operating Income(Billions of yen)

Fiscal year ending March 31, 2015


Increase (decrease)


(%)

Revenues 417.6 473.6 (55.9) (11.8)

Theme Park Segment 341.5 390.9 (49.4) (12.6)

Hotel Business Segment 59.6 64.9 (5.3) (8.2)

Other Business Segment 16.5 17.7 (1.2) (6.8)

Operating Income 83.2 114.5 (31.3) (27.4)

Theme Park Segment 70.3 97.2 (26.8) (27.6)

Hotel Business Segment 12.2 15.9 (3.7) (23.1)

Other Business Segment 0.5 1.3 (0.7) (58.8)

Net Income 55.5 70.6 (15.0) (21.3)

Revenues

Because it is the year following Tokyo Disney Resort 30th Anniversary, revenues are forecast to decline, with revenues of ¥417.6 billion (down 11.8%).


Revenues are forecast to decline to ¥341.5 billion (down 12.6%). This is mainly due to an expected decrease in attendance at the two theme parks to 28.00 million Guests (down 10.5%) because it is the year following Tokyo Disney Resort’s 30th Anniversary. Revenues per Guest at the theme parks is also forecast to decline to ¥10,620 (down 4.1%).

Theme Park Information

Fiscal year endingMarch 31, 2015

(Forecast)

Fiscal year endedMarch 31, 2014

(Actual)


(%)

Theme park attendance(Millions of Guests) 28.00 31.30 (10.5)

Revenues per Guest (Yen) 10,620 11,076 (4.1)

Ticket receipts (Yen) 4,560 4,598 (0.8)

Merchandise (Yen) 3,780 4,185 (9.7)

Food and beverages (Yen) 2,280 2,292 (0.5)


Revenues are forecast to decline to ¥59.6 billion (down 8.2%). Owing to declines in theme park attendance, occupancy rates for each of the Disney Hotels are expected to be in the lower 90% range for the Tokyo Disneyland Hotel, the upper 90% range for the Tokyo DisneySea Hotel MiraCosta and the upper 80% range for the Disney Ambassador Hotel. As a result, revenues are fore-cast to decline.


Revenues in this segment are expected to decline to ¥16.5 billion (down 6.8%) on lower monorail business revenues in line with declining theme park attendance.

Operating Income

Operating income of ¥83.2 billion (down 27.4%) is forecast due to lower revenues and other factors.


Operating income is expected to decline to ¥70.3 billion (down 27.6%) due to such factors as declining revenues, despite reduc-tions in personnel expenses including work hours for part-time employees, and fixed and miscellaneous costs such as costs associated with Disney Resort’s 30th Anniversary.


Operating income is expected to decline to ¥12.2 billion (down 23.1%) due to a decrease in revenues.


Operating income is expected to decline to ¥0.5 billion (down 58.8%) due to such factors as lower monorail business revenues.

Net Income

Net income is forecast to decline to ¥55.5 billion (down 21.3%) due to a decrease in revenues. Net income per share is also expected to decline to ¥665.03 (down 21.3%).

(2) Cash Flows ForecastCapital Expenditures and Depreciation and Amortization

Capital expenditures are expected to increase to ¥42.8 million (up 110.8%) due to the Lilo & Stitch attraction at Tokyo Disneyland and the renovation of the Mermaid Lagoon Theater at Tokyo DisneySea. Depreciation and amortization is expected to decline to ¥35.4 billion (down 4.1%) on lower depreciation and amortiza-tion of StarTours, which reopened in May 2013, and other factors.

Operating Cash Flows

The 2016 Medium-Term Plan, which starts from the fiscal year ending March 31, 2015, set a target of cash flows from operating activities* of ¥280.0 billion over three years. In the fiscal year end-ing March 31, 2015, the first year of the plan, an operating cash flow of ¥90.9 billion is expected because that is the year after the Tokyo Disney Resort 30th Anniversary.

* Operating cash flow = Net income + Depreciation and amortization

Forecast for Consolidated Results (Fiscal Year Ending March 31, 2015) 2




(1) Medium-Term Plan for 2013 (March 31, 2012–March 31, 2014)

In the three-year period from March 2012 to March 2014, the OLC Group has taken steps to reinforce its fundamentals for sustainable growth of the core business (Tokyo Disney Resort) and for long-term sustainable development under the 2013 Medium-Term Plan. Regarding our three-year free cash flow generation target, we greatly exceeded our first-year target of ¥120.0 billion, achieving ¥194.8 billion through sustainable growth in our core business. (Please see “Feature 1: The President Discusses the 2016 Medium-Term Plan” from page 14 for details.)

(2) 2016 Medium-Term Plan (March 31, 2015–March 31, 2017)

The OLC Group formulated a new Medium-Term Plan for the period from the fiscal years ending March 2015 to March 2017. In the fiscal year ended March 31, 2014, attendance at our two

Dividends

The total cash dividend for the fiscal year ended March 31, 2014, is set at ¥120.00 per share, same as the previous fiscal year. This will make for a consolidated dividend payout ratio of 14.2%. We will remain focused on stockholder returns when allocating the steady stream of free cash flow. Going forward, we aim to pay stable dividends while taking external factors into consideration. We plan to keep total dividends at ¥120.00 per share for the fiscal year ending March 31, 2015, the same amount as the fiscal year ended March 31, 2014.

ROE

ROE was 12.6% in the fiscal year ended March 31, 2013, and 15.2% in the fiscal year ended March 31, 2014. In both years, ROE exceeded our target of at least 8.0%. We continue to aim for 8.0% or more through earnings growth and direct stockholder returns.

Issues that could exert a material effect on the results, financial position, stock price, and other aspects of the OLC Group include, but are not limited to, the following. Management believes that these are among the issues that could significantly affect the

decisions of investors. Please note that forward-looking statements are based on judgments made by the OLC Group as of June 27, 2014.

theme parks surpassed the 30 million mark, greatly exceeding our initial forecast. This was an opportunity for the OLC Group to re-acknowledge the strong potential of Tokyo Disney Resort, as well as reaffirm its confidence in the further growth that lies ahead. The future leisure market environment will see an increase in the population of the middle-age and elderly segment, with its high disposable income, and the number of foreign visitors is expected to rise due to government policies for attracting tourists, the holding of the Tokyo Olympics, and other factors. Therein, we believe, lays a further growth opportunity for Tokyo Disney Resort. To show the OLC Group’s long-term management direction in response to the Group’s changing circumstances as well as mar-ket changes, we formulated “OLC in 2023,” our vision of what we want the OLC Group to be. In conjunction with this, we compiled the 2016 Medium-Term Plan as the first three years on the road to achieving “OLC in 2023.” (Please see “Feature 1: The President Discusses the 2016 Medium-Term Plan” from page 14 for details.)


Basic Policy on Distribution of Profit and Dividends

Business Risks

3

4

5

120

’14/3

120

’13/3

100

’12/3

100

’11/3

100

’10/3

40

60

50

50

50

50

60

60

60

60

◆ Annual Cash Dividends per Share

(Yen)

Interim Year-End

60 Oriental Land

(1) Risks Related to Weakening of the Tokyo Disney Resort Brand

◆ Quality of Tangibles (Facilities, Services, etc.)

The OLC Group’s principal business, Tokyo Disney Resort, main-tains Guest satisfaction at a high level by constantly creating new experience value for Guests through such means as introducing new facilities. The OLC Group will work to raise the overall appeal of Tokyo Disney Resort by raising the quality of its facilities and ser-vices. However, lower Guest satisfaction due to factors including an inability to properly time investments as a result of unforeseen circumstances could damage the Group brand.

◆ Quality of Intangibles (Cast Hospitality, etc.)

The OLC Group’s principal business, Tokyo Disney Resort, is supported by numerous Cast Members. The hospitality of Cast Members creates strong feelings of satisfaction among Guests. Going forward, the OLC Group will educate Cast Members and create a work environment that gives Cast Members a sense of pride and joy in their work. However, lower Guest satisfaction due to factors including a shortage of workers as a result of unforeseen circumstances could damage the Group brand.

(2) Risks Related to Operations◆ Product Deficiencies and Problems

Incidents, including attraction incidents, the sale of defective merchandise, or product tampering, involving the products and services of Tokyo Disney Resort, including attractions, products, and foods, could entail serious harm to Guests, who are cus-tomers, and could result in material costs from factors including decreased trust in the Group’s priority on safety, damage to the Group brand, and lawsuits.

◆ Regulatory Violations

The OLC Group emphasizes compliance in operating its businesses and conducting related transactions, including the procurement of products and materials. We maintain systems that promote compliance and provide ongoing education to managers. These efforts notwithstanding, failure among managers to prevent major regulatory violations or incidents could result in the cessation of part or all operations due to government actions, reduced trust in the OLC Group, damage to the Group brand, or other negative consequences, including lawsuits involving large expenses.

◆ Information Security

The OLC Group takes full precautions in its business activities to prevent avoidable leaks of the personal information it maintains on Guests and the proprietary information it maintains concern-ing business operations. These precautionary measures include strengthening surveillance systems for internal networks and limiting access to information. However, unforeseeable or unexpected instances, such as the hacking of internal information, the misuse of internal databases,

and leaks or falsification, could lead to a decrease in trust in the OLC Group, damage to the Group brand, or other negative con-sequences, including lawsuits involving large expenses, that could affect the performance of the OLC Group.

(3) Risks Related to the External Environment◆ Weather

In the OLC Group’s principal business, Tokyo Disney Resort, the number of Guests that visit the theme parks is easily influenced by weather conditions, such as climate and temperature. Consequently, an extended period of inclement weather could lead to a temporary decrease in the number of Guests.

◆ Natural Disasters

The OLC Group’s business infrastructure is concentrated in the Maihama area, and a major earthquake, fire, flood, or other disas-ter there could lead to adverse effects. Although the Group has given sufficient consideration to disaster resistance at all Tokyo Disney Resort facilities, there is a possibility that in the event of a disaster the damage caused to facilities, public transportation, and lifelines (electricity, gas, and water) will likely cause a drop in consumer confidence. This could lead to a temporary decrease in the number of Guests.

◆ Terrorism, Infectious Diseases, or Similar Incidents

The OLC Group has numerous facilities where Guests are present and places the highest priority on ensuring safety at each of them. However, in the event of a terrorist attack or similar incident at a large-scale, consumer-oriented facility in Japan or overseas, or in the event of an outbreak of an infectious disease for which no treat-ment is available, consumer confidence would presumably decline. This could lead to a temporary decrease in the number of Guests.

◆ Changes in the Domestic Economy

The results of the OLC Group’s principal business, Tokyo Disney Resort, have been stable in the past, even when economic condi-tions were unfavorable in Japan. We therefore believe that Tokyo Disney Resort is not greatly affected by the state of the domestic economy. However, such factors as an unprecedented recession could lead to a temporary decrease in the number of Guests.

◆ Regulatory Issues

The OLC Group is subject to various regulatory systems, including safety standards for attractions, quality standards for products and other items provided to Guests, environmental standards, accounting standards, and tax laws. Of note, the OLC Group main-tains its own standards for safety and quality that exceed those mandated by law. In the other areas, the OLC Group promotes full compliance. However, the OLC Group would necessarily have to comply with newly introduced or revised laws and regulations as part of its responsibility to society, which could temporarily constrain some or all operations.




Consolidated Balance SheetsAs of March 31, 2014 and 2013

Millions of yenThousands of

U.S. dollars (Note ❶)

’14/3 ’13/3 ’14/3

ASSETS

CURRENT ASSETS:

Cash and cash equivalents (Notes ❷ ❺ ➒) ¥ 80,018 ¥ 60,583 $ 777,478

Trade receivables (Notes ❺ ➒) 20,750 19,461 201,613

Inventories (Note ❸) 14,610 14,237 141,955

Deferred tax assets (Note ❼) 6,273 5,516 60,950

Other current assets (Notes ❺ ➒) 52,701 51,048 512,058

Total current assets 174,352 150,845 1,694,054

THEME PARKS, RESORTS AND OTHER PROPERTY, AT COST:

Attractions, buildings and equipment (Note ⓫) 951,041 943,278 9,240,585

Land 107,976 106,682 1,049,126

Construction in progress 5,963 9,493 57,938

1,064,980 1,059,453 10,347,649

Less accumulated depreciation (626,192) (602,553) (6,084,260)

Total theme parks, resorts and other property, at cost 438,788 456,900 4,263,389

INVESTMENTS AND OTHER ASSETS:

Investment securities (Notes ❷ ❺ ➒) 33,478 32,637 325,282

Goodwill (Notes ⓮ ⓯) 992 1,240 9,639

Other intangible assets 8,743 7,270 84,949

Asset for retirement benefits (Note ❻) 2,097 — 20,375

Deferred tax assets (Note ❼) 885 852 8,599

Other assets (Note ➒) 5,204 5,801 50,563

Total investments and other assets 51,399 47,800 499,407

Total non-current assets 490,187 504,700 4,762,796

Total assets ¥ 664,539 ¥ 655,545 $ 6,456,850

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

62 Oriental Land

Consolidated Financial Statements



’14/3 ’13/3 ’14/3

LIABILITIES

CURRENT LIABILITIES:

Trade payables (Note ➒) ¥ 20,216 ¥ 19,641 $ 196,424

Current portion of long-term debt (Notes ❹ ❺ ➒) 5,585 19,349 54,265

Accrued income taxes 27,241 20,277 264,681

Reserve for loss on disaster (Note ⓭) 107 208 1,040

Other current liabilities (Note ❺) 56,558 50,371 549,534

Total current liabilities 109,707 109,846 1,065,944

NON-CURRENT LIABILITIES:

Long-term debt (Notes ❹ ❺ ➒) 52,863 104,671 513,632

Provision for retirement benefits (Note ❻) — 4,919 —

Liability for retirement benefits (Note ❻) 2,931 — 28,478

Other non-current liabilities (Note ❼) 5,341 3,847 51,895

Total non-current liabilities 61,135 113,437 594,005

Total liabilities 170,842 223,283 1,659,949

COMMITMENTS AND CONTINGENT LIABILITIES (Note ❿)

NET ASSETS

SHAREHOLDERS’ EQUITY: (Note ❽)

Common stock:

Authorized—330,000,000 shares;

Issued—90,922,540 shares in 2014, 90,922,540 shares in 2013 63,201 63,201 614,079

Capital surplus 111,861 111,585 1,086,873

Retained earnings 358,955 298,401 3,487,709

Treasury stock, 7,422,294 shares in 2014 and 7,452,794 shares in 2013 (46,685) (46,877) (453,605)

Total shareholders’ equity 487,332 426,310 4,735,056

ACCUMULATED OTHER COMPREHENSIVE INCOME

Valuation difference on available-for-sale securities 6,014 5,952 58,434

Accumulated adjustment for retirement benefits (Note ❻) 351 — 3,411

Total accumulated other comprehensive income 6,365 5,952 61,845

Total net assets 493,697 432,262 4,796,901

Total liabilities and net assets ¥664,539 ¥655,545 $6,456,850




Consolidated Statements of IncomeYears Ended March 31, 2014, 2013 and 2012



’14/3 ’13/3 ’12/3 ’14/3

REVENUES ¥473,573 ¥395,527 ¥360,061 $4,601,370

COST OF REVENUES 301,069 265,946 248,457 2,925,272

Gross profit 172,504 129,581 111,604 1,676,098

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 58,013 48,114 44,681 563,671

Operating income 114,491 81,467 66,923 1,112,427

OTHER INCOME (EXPENSES):

Interest and dividends income 875 754 577 8,502

Interest expenses (1,161) (1,673) (1,858) (11,281)

Impairment loss (Note ⓫) — — (6,332) —

Loss on disaster (Note ⓭) — — (3,618) —

Equity in earnings of affiliates 113 103 57 1,098

Loss on bond retirement (2,761) (249) — (26,827)

Other, net 1,115 465 (460) 10,834

(1,819) (600) (11,634) (17,674)

Income before income taxes 112,672 80,867 55,289 1,094,753

INCOME TAXES: (Note ➐)

Current 41,307 30,051 23,218 401,350

Deferred 793 (668) (35) 7,705

Total income taxes 42,100 29,383 23,183 409,055

Income before minority interests 70,572 51,484 32,106 685,698

MINORITY INTERESTS IN LOSS — — (8) —

Net income ¥ 70,572 ¥ 51,484 ¥ 32,114 $ 685,698

Millions of yen U.S. dollars (Note ❶)

AMOUNTS PER SHARE:

Net income ¥845.32 ¥616.96 ¥384.98 $8.21

Diluted net income 815.03 580.87 372.87 7.92

Cash dividends 120.00 120.00 100.00 1.17


Consolidated Statements of Comprehensive IncomeYears Ended March 31, 2014, 2013 and 2012



’14/3 ’13/3 ’12/3 ’14/3

INCOME BEFORE MINORITY INTERESTS ¥70,572 ¥51,484 ¥32,106 $685,698

OTHER COMPREHENSIVE INCOME

Valuation difference on available-for-sale securities 62 5,742 1,388 602

Deferred gains or losses on hedges — 673 90 —

Total other comprehensive income (Note ⓬) 62 6,415 1,478 602

Comprehensive income (Note ⓬) 70,634 57,899 33,584 686,300

(Comprehensive income attributable to)

Comprehensive income attributable to owners of the parent 70,634 57,899 33,592 686,300

Comprehensive income attributable to minority interests — — (8) —


64 Oriental Land

Consolidated Statements of Changes in Net AssetsYears Ended March 31, 2014, 2013 and 2012

Millions of yen

Number of shares(Thousands)

Shareholders’ equity

’14/3 Common stock Capital surplus Retained earnings Treasury stockTotal

shareholders’ equity

Balance at April 1, 2013 90,923 ¥63,201 ¥111,585 ¥298,401 ¥(46,877) ¥426,310

Changes of items during the period

Dividends from retained earnings (10,018) (10,018)

Net income 70,572 70,572

Disposal of treasury stock 276 192 468

Net changes of items other than shareholders’ equity

Total changes of items during the period ¥ — ¥ 276 ¥ 60,554 ¥ 192 ¥ 61,022

Balance at March 31, 2014 90,923 ¥63,201 ¥111,861 ¥358,955 ¥(46,685) ¥487,332

Millions of yen

Accumulated other comprehensive income

Total net assets’14/3

Valuation difference on available-for-sale

securities

Remeasurements of defined benefit

plans

Total accumulated other comprehensive

income

Balance at April 1, 2013 ¥5,952 ¥ — ¥5,952 ¥432,262


Dividends from retained earnings (10,018)

Net income 70,572

Disposal of treasury stock 468

Net changes of items other than shareholders’ equity 62 351 413 413

Total changes of items during the period ¥ 62 ¥351 ¥ 413 ¥ 61,435

Balance at March 31, 2014 ¥6,014 ¥351 ¥6,365 ¥493,697

Millions of yen





Balance at April 1, 2012 90,923 ¥63,201 ¥111,417 ¥256,095 ¥(47,165) ¥383,548



Net income 51,484 51,484

Purchase of treasury stock (0) (0)



Total changes of items during the period — ¥ — ¥ 168 ¥ 42,306 ¥ 288 ¥ 42,762

Balance at March 31, 2013 90,923 ¥63,201 ¥111,585 ¥298,401 ¥(46,877) ¥426,310

Millions of yen




securities

Deferred gains or losses

on hedges


income

Balance at April 1, 2012 ¥ 210 ¥(673) ¥ (463) ¥383,085



Net income 51,484

Purchase of treasury stock (0)


Net changes of items other than shareholders’ equity 5,742 673 6,415 6,415

Total changes of items during the period ¥5,742 ¥ 673 ¥6,415 ¥ 49,177

Balance at March 31, 2013 ¥5,952 ¥ — ¥5,952 ¥432,262





Millions of yen


’12/3Number of shares

(Thousands) Common stock Capital surplus Retained earnings Treasury stockTotal


Balance at April 1, 2011 90,923 ¥63,201 ¥111,403 ¥232,323 ¥(47,215) ¥359,712



Net income 32,114 32,114



Total changes of items during the period — ¥ — ¥ 14 ¥ 23,772 ¥ 50 ¥ 23,836

Balance at March 31, 2012 90,923 ¥63,201 ¥111,417 ¥256,095 ¥(47,165) ¥383,548Millions of yen


Minority interests Total net assets’12/3


securities

Deferred gains or losses

on hedges


income

Balance at April 1, 2011 ¥(1,178) ¥(763) ¥(1,941) ¥ 8 ¥357,779



Net income 32,114


Net changes of items other than shareholders’ equity 1,388 90 1,478 (8) 1,470

Total changes of items during the period ¥ 1,388 ¥ 90 ¥ 1,478 ¥ (8) ¥ 25,306

Balance at March 31, 2012 ¥ 210 ¥(673) ¥ (463) ¥— ¥383,085

Thousands of U.S. dollars (Note ❶)





Balance at April 1, 2013 90,923 $614,079 $1,084,191 $2,899,349 $(455,470) $4,142,149



Net income 685,698 685,698

Disposal of treasury stock 2,682 1,865 4,547


Total changes of items during the period $ — $ 2,682 $ 588,360 $ 1,865 $ 592,907

Balance at March 31, 2014 90,923 $614,079 $1,086,873 $3,487,709 $(453,605) $4,735,056

Thousands of U.S. dollars (Note ❶)




securities

Remeasurements of defined benefit

plans


income

Balance at April 1, 2013 $57,832 $ — $57,832 $4,199,981



Net income 685,698

Disposal of treasury stock 4,547

Net changes of items other than shareholders’ equity 602 3,411 4,013 4,013

Total changes of items during the period $ 602 $ 3,411 $ 4,013 $ 596,920

Balance at March 31, 2014 $58,434 $ 3,411 $61,845 $4,796,901


66 Oriental Land

Consolidated Statements of Cash FlowsYears Ended March 31, 2014, 2013 and 2012



’14/3 ’13/3 ’12/3 ’14/3

CASH FLOWS FROM OPERATING ACTIVITIES

Income before income taxes ¥112,672 ¥ 80,867 ¥55,289 $1,094,753Adjustments to reconcile income before income taxes to net cash provided by operating activities:

Depreciation and amortization 36,934 36,132 41,945 358,861Impairment loss — — 6,332 —Amortization of goodwill 248 — — 2,410Increase (decrease) in estimated termination and retirement and other allowances (83) (166) (2,686) (806)Increase (decrease) in liability for retirement benefits (2,060) — — (20,016)Interest and dividends income (875) (754) (577) (8,502)Interest expenses 1,161 1,673 1,858 11,281Exchange loss (gain) 12 19 4 117Equity in earnings of affiliates (113) (103) (57) (1,098)Loss on bond retirement 2,761 249 — 26,827Decrease (increase) in trade receivables (1,415) (1,270) (8,363) (13,749)Decrease (increase) in inventories (373) (2,653) 770 (3,624)Increase (decrease) in trade payables 1,988 3,137 5,044 19,316Increase (decrease) in accrued consumption taxes 1,290 (199) 1,560 12,534Other, net 2,913 4,440 4,702 28,303

Subtotal 155,060 121,372 105,821 1,506,607Interest and dividends received 982 755 484 9,542Interest paid (927) (1,761) (1,942) (9,007)Income taxes paid (34,440) (28,383) (14,035) (334,629)

Net cash provided by operating activities 120,675 91,983 90,328 1,172,513CASH FLOWS FROM INVESTING ACTIVITIES

Addition of time deposits included in other current assets (70,000) (94,500) (60,500) (680,140)Proceeds from maturity of time deposits included in other current assets 68,000 95,500 11,500 660,707Payment for purchase of marketable securities — (3,500) (1,999) —Proceeds from maturity of marketable securities 700 3,500 1,999 6,801Payment for purchase of property (18,594) (23,310) (23,463) (108,665)Payment for purchase of investment securities (691) (2,752) (2,000) (6,714)Purchase of investments in subsidiaries resulting in change in scope of consolidation — (367) — —Payments for loans receivable (3) (17,502) (0) (29)Collection of loans receivable 86 197 419 836Other, net (2,855) (2,643) 330 (27,739)

Net cash used in investing activities (23,357) (45,377) (73,714) (226,943)CASH FLOWS FROM FINANCING ACTIVITIES

Increase in short-term loans payable — — 20,000 —Decrease in short-term loans payable — — (30,000) —Proceeds from long-term debt 3,783 — 56,137 36,757Repayment of long-term debt (72,119) (25,811) (40,757) (700,729)Dividends paid (9,992) (9,151) (8,338) (97,085)Purchase of treasury stock — (0) — —Other, net 459 446 (528) 4,460

Net cash used in financing activities (77,869) (34,516) (3,486) (756,597)Effect of exchange rate changes on cash and cash equivalents (14) (18) (4) (137)Net increase (decrease) in cash and cash equivalents 19,435 12,072 13,124 188,836Cash and cash equivalents at beginning of period 60,583 48,511 35,387 588,642Cash and cash equivalents at end of period ¥ 80,018 ¥ 60,583 ¥ 48,511 $ 777,478





68 Oriental Land

Notes to Consolidated Financial Statements

A Basis of presenting consolidated financial statements

The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Law and its related accounting regulations, and in conformity with accounting principles generally accepted in Japan (“Japanese GAAP”), which are different in certain aspects as to application and disclosure requirements from the International Financial Reporting Standards. The accompanying consolidated financial statements have been restructured and translated into English (with some expanded descriptions) from the consolidated financial statements of Oriental Land Co., Ltd. (“the Company”) prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Law. Some supplementary information included in the stat-utory Japanese language consolidated financial statements, but not required for fair presentation, is not presented in the accompanying consolidated financial statements. The translation of the Japanese yen amounts into U.S. dollars is included solely for the convenience of readers outside Japan, using the prevailing exchange rate at March 31, 2014, which was ¥102.92 to U.S. $1. The convenience translations should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange. Certain reclassifications have been made to the 2013 and 2012 consolidated financial statements to conform to the classifications used in 2014.

B Principles of consolidation

The consolidated financial statements include the accounts of the Company and all of its subsidiaries (“the Companies”). Material inter-company balances, transactions and profits have been eliminated in consolidation. In the elimination of investments in subsidiaries, the assets and liabilities of the subsidiaries, including the portion attributable to minority stockholders, are evaluated using the fair value at the time the Company acquired control of the respective subsidiaries. The number of consolidated subsidiaries was 17, 17 and 14 in 2014, 2013 and 2012, respectively. Investment in affiliates (generally 20–50% owned companies) are accounted for by the equity method and are included in investment securities in the accompanying consolidated balance sheets. The number of companies accounted for under the equity method was 3 in 2014, 2013 and 2012.

C Foreign currency translation

Receivables and payables denominated in foreign currencies are translated into Japanese yen at the exchange rates prevailing on the balance sheet date. Gains and losses resulting from the translation are charged to income.

D Cash and cash equivalents

In preparing the consolidated statements of cash flows, cash on hand, readily available deposits and short-term highly liquid investments with negligible risk of changes in value and maturities not exceeding three months at the time of purchase are considered to be cash and cash equivalents.

E Marketable securities and investment securities

Marketable securities and investment securities are classified as (a) securities held for trading purposes (hereafter, “trading securities”), (b) debt securities intended to be held to maturity (hereafter, “held-to-maturity-debt securities”), (c) equity securities issued by subsidiaries and affiliate companies, or (d) all other securities that are not classified in any of the above categories (hereafter, “available-for-sale securities”). The Companies do not have trading securities and held-to-maturity-debt securities. Available-for-sale securities with available fair market value are stated at fair market value as of the balance sheet date. Unrealized gains or losses on these securities are reported, net of applicable income taxes, as a separate component of net assets. Realized gains and losses on sales of such securities are computed using the moving- average method. Available-for-sale securities without fair market value are stated at the moving-average cost. If the market value of available-for-sale securities declines significantly, such securities are restated at fair market value and the difference between fair market value and the carrying amount is recognized as loss in the period of the decline. For the available-for-sale securities without fair market value, if the net asset value declines significantly, such securities are restated to net asset value with the corresponding losses recognized in the period of decline. In these cases, such fair market value or the net asset value will be the carrying amount of the securities at the beginning of the next year.

F Inventories

Consumer products, materials for food, beverages and supplies are primarily stated at the lower of cost or market using the moving- average method.

G Theme parks, resorts and other property

Depreciation on property of Tokyo Disneyland and others is com-puted primarily using the declining-balance method. Depreciation on property of Tokyo DisneySea and others and buildings acquired after April 1, 1998 is computed primarily using the straight-line method. Ordinary maintenance and repairs are charged to income as incurred. Major replacements and betterments are capitalized. When property is retired or otherwise disposed of, the property and accumulated depreciation accounts related to it are relieved of the applicable amounts and any differences are included in maintenance costs for theme parks, resorts and other property, except for the extraordinary nature of disposal of property which is included in other expenses.

1 SIGNIFICANT ACCOUNTING AND REPORTING POLICIES




H Amortization method and period of goodwill

Amortization of goodwill is computed by the straight-line method over a period of five years.

I Software

Amortization of the software for internal use included in other intangible assets is computed by the straight-line method over the estimated useful lives (five years).

J Retirement Benefits

(1) Standard for recording liability for retirement benefitsTo provide employees with retirement benefits, liability for retirement benefits is recorded by posting the amount of plan assets deducted from projected benefit obligations (if the amount of plan assets exceeds projected benefit obligations, asset for retirement benefits is recorded in Investments and other assets).

(2) Attribution method for estimated retirement benefitsWhen calculating retirement benefit obligations, the method used for attributing expected benefits to periods up to the end of the consoli-dated fiscal year is the straight-line basis.

(3) Determination of actuarial gains and losses, prior service costs, and net transition obligation

Unrecognized actuarial gains or losses are amortized on a straight-line basis over a fixed period (mainly 12 years) within the average remaining service years of employees at the time that liability was incurred in each fiscal year, commencing with the following consolidated fiscal year. Prior service costs are amortized on a straight-line basis over a fixed period (mainly 15 years) within the average remaining service years of employees at the time that liability was incurred, commencing with the fiscal year in which an amount was proportionally distributed. The net transition obligation (¥4,573 million) has been recognized in expenses in equal amounts over 15 years. After adjusting for the tax effects, unrecognized actuarial gains and losses, unrecognized prior service costs, and unrecognized net transition obligation are recorded in accumulated adjustment for retirement benefits in accumulated other comprehensive income in the net assets section.

K Income taxes

The provision for income taxes is computed based on the income before income taxes included in the Consolidated Statements of Income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

L Per share data

Dividends per share shown in the Consolidated Statements of Income have been presented on an accrual basis and include, in each fiscal period, dividends approved after each balance sheet date, but appli-cable to the fiscal period then ended. Net income per share is based on the weighted average number of shares of common stock. The diluted net income per share assumes the dilution that would occur if stock acquisition rights were exercised. The number of shares used in the computations of diluted net income per share was 86,939 thousand shares for the year ended March 31, 2014, 89,144 thousand shares for the year ended March 31, 2013 and 86,514 thousand shares for the year ended March 31, 2012.

M Use of estimates

In preparing financial statements, generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclo-sures of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

N Change in accounting policy

(Change in Depreciation Method)From the year ended March 31, 2013, in accordance with the amend-ment in corporate tax law, the Companies have changed their depre-ciation method for theme parks, resorts and other property. Assets acquired on or after April 1, 2012 are depreciated using the method prescribed in amended corporate tax law. The impact of this change on income figures in the year ended March 31, 2013, was immaterial.

(Application of accounting standard for retirement benefits)Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May 17, 2012) and Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012) have been applied since the end of the fiscal year ended March 31, 2014 (but excluding provisions contained in the text of Paragraph 35 of Accounting Standard for Retirement Benefits and the text of Paragraph 67 of Guidance on Accounting Standard for Retirement Benefits.) Because of this, the method of recording has changed to one wherein the amount by which plan assets exceed liability for retire-ment benefits for the pension plan is recorded as asset for retirement benefits and lump-sum retirement benefit obligations are recorded as liability for retirement benefits. In addition, unrecognized actuarial gains and losses, unrecog-nized prior service costs, and unrecognized net transition obligation are recorded in asset for retirement benefits and liability for retirement benefits. Regarding the application of the standard for retirement benefits, in accordance with the transitional handling set forth in Paragraph 37 of Accounting Standard for Retirement Benefits, the effect of the change in accounting policies arising from initial application has been recognized in accumulated adjustment for retirement benefits in accumulated other comprehensive income.

70 Oriental Land

As a result, at the end of the consolidated fiscal year ended March 31, 2014, the Company recorded asset for retirement benefits of ¥2,097 million and liability for retirement benefits of ¥2,931 million, while accumulated other comprehensive income increased by ¥351 million. Net assets per share increased by ¥4.20.

O Accounting standards issued but not yet effective

“Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012)

(1) SummaryUnder the amended rule, net transition obligation, actuarial gains and losses and prior service costs that are yet to be recognized in profit or loss would be recognized within the net assets section, after adjusting for the tax effects, and the accumulated deficit or surplus would be recognized as a liability or asset without any adjustments. For deter-mining the method of attributing expected benefit to periods, the Standard now allows to choose the benefit formula basis, as well as the straight-line basis. The method for calculating of the discount rate has also been amended.

(2) Effective datesAmendments relating to determination of retirement benefit obli-gations and current service costs are effective from the beginning of annual periods ending on or after March 31, 2015. The Standard and guidance will not be applied retrospectively to financial statements in the prior years in accordance with specific transitional provisions.

(3) Effect of application of the Standard and GuidanceThe Companies are currently in the process of determining the effects of amendments relating to the method of attributing expected bene-fit to periods in the consolidated financial statements.

P Change in Presentation Method

(Consolidated Statements of Income)From the fiscal year ended March 31, 2014, “Loss on bond retirement,” which had been included in “Other, net” under “Other Income (Expenses),” has been listed separately due to its increased materiality. It has been reclassified in the consolidated financial statements for the fiscal year ended March 31, 2013 to reflect this change in presentation method. As a result, in the consolidated statements of income for the fiscal year ended March 31, 2013, the ¥216 million that had been shown in “Other, net” under “Other Income (Expenses)” was reclassified as “Loss on bond retirement” ¥(249) million, and “Other, net” ¥465 million.

(Consolidated Statements of Cash Flows)In the fiscal year ended March 31, 2013, “Loss on bond retirement,” which had been included in “Other, net” under “Cash Flows from Operating Activities,” was presented separately in the fiscal year ended March 31, 2014 due to its increased materiality. It was reclassi-fied in the Consolidated Financial Statements for the fiscal year ended March 31, 2013 to reflect this change in presentation method.

As a result, in the Consolidated Statements of Cash Flows for the fiscal year ended March 31, 2013, the ¥4,689 million presented in “Other, net” under “Cash Flows from Operating Activities” was reclas-sified as “Loss on bond retirement” ¥249 million, and “Other, net.” ¥4,440 million.

Q Additional information

(Adoption of Accounting Standards for Accounting Changes and Error Corrections)The Companies adopted the “Accounting Standard for Accounting Changes and Error Corrections” (Statement No. 24, issued by the ASBJ on December 4, 2009) and the “Guidance on Accounting Standard for Accounting Changes and Error Corrections” (Guidance No. 24, issued by the ASBJ on December 4, 2009) for accounting changes and corrections of past errors made from the fiscal year beginning on April 1, 2011.

(Employee Stock Ownership Plan ESOP)Effective from the year ended March 31, 2012, the Company has adopted the “Employee Stock Ownership Plan ESOP” in order to fur-ther enhance employees’ welfare and grant incentives to improve the corporate value of the Company. For the purchase and disposal of treasury stocks by the trust under this scheme, the Company has guaranteed the obligations. Therefore, the Company and trust are treated as a single economic unit for the accounting purpose as placing emphasis on economic substance. Assets and liabilities, including the shares of the Company held by the trust and gains and losses therefrom, are therefore included in the Consolidated Balance Sheets, Consolidated Statements of Income, and Consolidated Statements of Comprehensive Income. The number of shares of treasury stock were as follows as of March 31, 2014, 2013 and 2012.

(Year ended March 31, 2014)Number of shares of treasury stock: 7,422,294 sharesOf which, the number of shares of treasury stock owned by the Company: 7,205,994 sharesOf which, the number of shares of the Company’s stock held by the trust: 216,300 shares






(Revision of deferred tax assets and liabilities due to change in income tax rate)On March 31, 2014, a partial revision of the Income Tax Law (Law No. 10, 2014) was announced and, as a result, the Company will not be subject to the special income tax for reconstruction from the consolidated fiscal year beginning from April 1, 2014. As a result, the statutory tax rate, which is used to calculate deferred tax assets and

deferred tax liabilities for temporary differences that are expected to be eliminated in the consolidated fiscal year beginning from April 1, 2014, will be lowered from 37.8% to 35.4%. Due to this change in tax rate, deferred tax assets (the amount from which deferred tax liabilities have been deducted) decreased ¥414 million while income taxes deferred increased by the same amount.

2 MARKETABLE SECURITIES AND INVESTMENT SECURITIES

The following tables summarize book values, acquisition costs, and differences of available-for-sale securities with available fair value as of March 31, 2014 and 2013:

Securities with book value exceeding acquisition costMillions of yen Thousands of U.S. dollars

’14/3 ’13/3 ’14/3Type Book value Acquisition cost Difference Book value Acquisition cost Difference Book value Acquisition cost Difference

Equity securities ¥28,078 ¥19,034 ¥9,044 ¥27,341 ¥18,362 ¥8,979 $272,814 $184,940 $87,874Bonds 706 702 4 2,712 2,710 2 6,860 6,821 39Others — — — — — — — — —

Total ¥28,784 ¥19,736 ¥9,048 ¥30,053 ¥21,072 ¥8,981 $279,674 $191,761 $87,913

Securities with book value not exceeding acquisition costMillions of yen Thousands of U.S. dollars

’14/3 ’13/3 ’14/3Type Book value Acquisition cost Difference Book value Acquisition cost Difference Book value Acquisition cost Difference

Equity securities ¥ 401 ¥ 420 ¥(19) ¥ 1,040 ¥ 1,092 ¥(52) $ 3,896 $ 4,081 $(185)Bonds 3,000 3,000 (0) 7,998 7,998 (0) 29,149 29,149 (0)Others 33,500 33,500 — 10,000 10,000 — 325,495 325,495 —

Total ¥36,901 ¥36,920 ¥(19) ¥19,038 ¥19,090 ¥(52) $358,540 $358,725 $(185)

Non-listed equity securities and others (total amount of ¥2,349 million (US$22,824 thousand) and ¥2,369 million at March 31, 2014 and 2013, respectively) are not included in the above table, as they have no market value and their fair value is not readily determinable.

3 INVENTORIES

Inventories at March 31, 2014 and 2013 are summarized as follows:


U.S. dollars

’14/3 ’13/3 ’14/3

Merchandise and finished goods ¥ 9,372 ¥ 9,583 $ 91,061Work in process 58 123 564Raw materials and supplies 5,180 4,531 50,330

Total ¥14,610 ¥14,237 $141,955

72 Oriental Land

4 LONG-TERM DEBT

Long-term debt as of March 31, 2014 and 2013 is summarized as follows:


U.S. dollars

’14/3 ’13/3 ’14/3

Bonds

1.86%, unsecured straight bonds, payable in yen, due March 2016 (Note) ¥ — ¥ 29,997 $ —1.70%, unsecured straight bonds, payable in yen, due January 2018 (Note) — 20,000 —

Subtotal — 49,997 —Loans

Unsecured bank loans due 2013 through 2071 at the average interest rate of 0.92% 57,212 57,782 555,888Unsecured loans from life insurance companies due 2015 at the average interest rate of 0.78% 1,217 1,217 11,825Unsecured syndicate loans due 2013 at the average interest rate of 0.21% — 15,000 —

Subtotal 58,429 73,999 567,713Payables

Unsecured other long-term payable 4.18%, due 2018 19 24 184Subtotal 19 24 184

Total 58,448 124,020 567,897Less current portion included in current liabilities (5,585) (19,349) (54,265)

Grand total ¥52,863 ¥104,671 $513,632

The average interest rates shown above are weighted according to the loan balances at the end of the year ended March 31, 2014.

The aggregate annual maturities of long-term debt subsequent to March 31, 2014, are summarized as follows:


U.S. dollars

Year ending March 31,2015 ¥ 5,585 $ 54,2652016 587 5,7032017 580 5,6352018 117 1,1372019 116 1,1272020 Thereafter 51,463 500,030

Total ¥58,448 $567,897

Note: As described in Note 10. “Commitments and contingent liabilities,” debt assumption agreements have been arranged, and the debt to be assumed has been transferred. For this reason, this debt is considered repaid.

5 PLEDGED ASSETS

The net carrying value of pledged assets at March 31, 2014 and 2013 is as follows:


U.S. dollars

’14/3 ’13/3 ’14/3

Cash and cash equivalents ¥ 194 ¥ 907 $1,885Trade receivables 16 22 155Investment securities 695 10 6,753Others 114 119 1,108

Total ¥1,019 ¥1,058 $9,901

In addition to the above, the future receivables of a consolidated subsidiary, trade receivables eliminated internally on consolidation (¥1 million (US$10 thousand) and ¥1 million in the years ended March 31, 2014 and 2013, respectively) and other current assets (¥1 million (US$10 thousand) and ¥1 million in the years ended March 31, 2014 and 2013, respectively) were pledged. Cash and cash equivalents, trade receivables, and future receivables of a subsidiary are pledged to secure current portion of long-term debt and long-term debt (¥2,016 million (US$19,588 thousand) and ¥2,119 million at March 31, 2014 and 2013, respectively). Investment securities and others are pledged to other current liabilities (¥374 million (US$3,634 thousand) and ¥346 million at March 31, 2014 and 2013, respectively).




6 RETIREMENT BENEFITS

Projected benefit obligations at beginning and end of period as of March 31, 2014 are summarized as follows:


U.S. dollars

’14/3 ’14/3

Projected benefit obligations at beginning of period ¥29,002 $281,792Service costs-benefits earned during the year 1,525 14,817Interest cost on projected benefit obligation 548 5,324Actuarial gains and losses (430) (4,178)Retirement benefits paid (1,022) (9,930)

Projected benefit obligations at end of period ¥29,623 $287,825

Note: Severance and retirement benefit expenses of consolidated subsidiaries that employ the simplified method are recorded in “Service costs-benefits earned during the year.”

Plan assets at beginning and end of period as of March 31, 2014 are summarized as follows:


U.S. dollars

’14/3 ’14/3

Plan assets at beginning of period ¥22,685 $220,414Expected return on plan assets 590 5,733Actuarial gains and losses 1,033 10,037Employer’s contribution 5,398 52,448Retirement benefits paid (917) (8,910)

Plan assets at end of period ¥28,789 $279,722

Reconciliation from projected benefit obligations and plan assets to liability and asset for retirement benefits as of March 31, 2014 are summa-rized as follows:


U.S. dollars

’14/3 ’14/3

Projected benefit obligations for funded plans ¥26,692 $259,347Less fair value of plan assets (28,789) (279,722)

(2,097) (20,375)Projected benefit obligations for unfunded plans 2,931 28,478Net liability (asset) recorded in the consolidated balance sheets 834 8,103

Liability for retirement benefits 2,931 28,478Asset for retirement benefits (2,097) (20,375)Net liability (asset) recorded in the consolidated balance sheets ¥ 834 $ 8,103

Severance and retirement benefit expenses and a breakdown of their amounts by item as of March 31, 2014 are summarized as follows:


U.S. dollars

’14/3 ’14/3

Service costs-benefits earned during the year ¥1,506 $14,633Interest cost on projected benefit obligations 548 5,325Expected return on plan assets (590) (5,733)Amortization of net transition obligation 305 2,963Amortization of actuarial gains and losses 137 1,331Amortization of prior service costs 36 350Other 28 272

Severance and retirement benefit expenses of defined benefit plans ¥1,970 $19,141

Note: Severance and retirement benefit expenses of consolidated subsidiaries that employ the simplified method are recorded in “Service costs-benefits earned during the year.”

74 Oriental Land

A breakdown of items (before adjusting for the tax effects) recorded in remeasurements of defined benefit plans as of March 31, 2014 is sum-marized as follows:


U.S. dollars

’14/3 ’14/3

Unrecognized net transition obligation ¥ 305 $ 2,964Unrecognized actuarial gains and losses (1,027) (9,979)Unrecognized prior service costs 179 1,739

Total ¥ (543) $(5,276)

Items related to plan assets as of March 31, 2014 are summarized as follows:(1) The ratio for each main classification for total plan assets of March 31, 2014 is summarized as follows:

’14/3

Bonds 49%Equity securities 24General accounts 22Other 5

Total 100%

(2) Method for calculating expected long-term rate of returnTo determine the expected long-term rate of return on plan assets, the Company takes into account current and projected asset allocations, as well as current and expected long-term rates of return on various categories of assets that make up the plan assets.

The basis for calculating key actuarial assumptions as of March 31, 2014 is summarized as follows:’14/3

Discount rate mainly 2.0%Long-term expected rate of return on plan assets 2.6%

Provision for retirement benefits recorded in the liabilities section of the Consolidated Balance Sheets as of March 31, 2013 and 2012 are sum-marized as follows:

Millions of yen

’13/3 ’12/3

Projected benefit obligation ¥29,002 ¥27,655Less fair value of plan assets (22,685) (19,964)

Funded status 6,317 7,691Unrecognized net transition obligation (610) (915)Unrecognized actuarial gains and losses (578) (2,421)Unrecognized prior service costs (210) (241)

Liability for severance and retirement benefits, net 4,919 4,114Prepaid plan cost — —

Provision for retirement benefits ¥ 4,919 ¥ 4,114

Included in the Consolidated Statements of Income for the years ended March 31, 2013 and 2012 are severance and retirement benefit expenses comprised as follows:

Millions of yen

’13/3 ’12/3

Service costs-benefits earned during the year ¥1,423 ¥1,395Interest cost on projected benefit obligation 536 513Expected return on plan assets (499) (481)Amortization of prior service costs 31 31Amortization of actuarial gains and losses 273 256Amortization of net transition obligation 305 305Special termination benefit 28 5

Severance and retirement benefit expenses ¥2,097 ¥2,024




8 SHAREHOLDERS’ EQUITY

Net assets comprise three subsections, which are shareholders’ equity, accumulated other comprehensive income, and minority interests. Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock. However, a company may, by a resolution of the board of directors, designate an amount not exceeding one-half of the price of the new shares as additional paid-in capital which is included in capital surplus. In cases where dividend distribution of surplus is made, the lesser of an amount equal to 10% of the dividend or the excess, if any, of 25% of common stock over the total of additional paid-in capital and legal reserve must be set aside as additional paid-in capital or legal reserve. Legal reserve is included in retained earnings in the accompa-nying Consolidated Balance Sheets. Both appropriations of legal reserve and additional paid-in capital used to eliminate or reduce a deficit generally require a resolution of the stockholders’ meeting. Additional paid-in capital and legal reserve may not be distributed as dividends. All additional paid-in capital and legal reserve may be transferred to other capital surplus and retained earnings, respectively, which are potentially available for dividends.

The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial statements of the Company in accordance with Japanese laws and regulations. At the annual stockholders’ meeting held on June 27, 2014, the stockholders resolved to pay cash dividends amounting to ¥5,010 million (US$48,679 thousand). Such appropriations have not been accrued in the consolidated financial statements as of March 31, 2014. Such appropriations were recognized in the period when they were resolved. The total dividend paid does not include dividends of ¥13 million (US$126 thousand) payable to the trust established by the Employee Stock Ownership Plan ESOP. This is because the Company has recognized the shares of the Company held by the trust as trea-sury stock.

’13/3 ’12/3

Discount rate mainly 2.0% mainly 2.0%

Rate of expected return on plan assets 2.5% 2.6%

The estimated amount of all retirement benefits to be paid at the future retirement date is allocated equally to each service year using the estimated number of service years.

7 INCOME TAXES

The Companies are subject to corporation, enterprise and inhabitants’ taxes, which resulted in a statutory tax rate of approximately 37.8% for the year ended March 31, 2014 and 37.8% for the year ended March 31, 2013 and 40.4% for the years ended March 31, 2012. The differences between the statutory tax rate and the Companies’ effective tax rate for financial statement purposes for the years ended March 31, 2014, 2013 and 2012 are not shown because they were not significant. Significant components of the Companies’ deferred tax assets and liabilities as of March 31, 2014 and 2013 are as follows:


U.S. dollars

’14/3 ’13/3 ’14/3

Deferred tax assets:Impairment loss ¥ 9,911 ¥ 2,402 $ 96,298Excess bonuses accrued 2,973 2,797 28,886Valuation difference on non-current assets 2,250 — 21,862Net loss carried forward 2,070 465 20,113Accrued business tax 1,874 1,623 18,208Others 3,607 4,024 35,047

Total deferred tax assets 22,685 11,311 220,414Valuation allowance (13,669) (2,021) (132,812)

Net deferred tax assets 9,016 9,290 87,602Deferred tax liabilities:

Valuation difference on available-for-sale securities (2,919) (2,908) (28,362)Others (823) (84) (7,996)

Total deferred tax liabilities (3,742) (2,992) (36,358)Net deferred tax assets ¥ 5,274 ¥ 6,298 $ 51,244

76 Oriental Land

A Policies on the use of financial instruments

The Companies raise the funds needed to implement capital invest-ment plans through loans from banks and other institutions and by issuing corporate bonds. The Companies limit their investment of temporary surpluses to deposits and highly liquid financial assets such as bank deposits. The Companies employ derivative financial instruments only as needed to limit the scope of actual settlement and do not undertake speculative transactions for the purpose of generating trading profits.

B Financial instrument content and risks

Trade-notes and accounts receivable, involve credit risk on the part of customers and business partners. Investment securities, which are mainly equity securities, involve market risk.

C Financial instrument risk management

(a) Management of credit risk (the risk that a business partner will default on its transactional obligations)

The Companies employ accounts receivable management regula-tions to reduce the risks related to trade-notes and accounts receiv-able, which are collected within one year.(b) Management of market risk (the risk of foreign exchange and

interest rate fluctuations)The fair value of investment securities in listed companies is deter-mined on a quarterly basis.

The Companies have formulated operational handling proce-dures pertaining to the execution and management of derivative financial transactions. Departments handling such transactions are managed closely, and a system is in place to ensure an effective inter-nal control function.

D Supplementary explanation regarding the fair value of

financial instruments

With regard to the fair value of financial instruments, in addition to basing fair value on market value, the fair value of financial instru-ments that have no available market value is determined by using a rational method of calculation. However, as variables are inherent in these value calculations, the resulting values may differ if different assumptions are used.

E Matters related to the fair value of financial instruments

(Year ended March 31, 2014)

The following table summarizes book value, fair value and difference on financial instruments, excluding financial instruments without fair value, as of March 31, 2014:

Millions of yen Thousands of U.S. dollars

’14/3 ’14/3Book value Fair value Difference Book value Fair value Difference

Cash and cash equivalents(1) Cash and deposits (maturing within 3 months) ¥ 43,518 ¥ 43,518 ¥— $ 422,833 $ 422,833 $ —(2) Marketable securities (maturing within 3 months) 36,500 36,500 — 354,645 354,645 —

Trade receivables(3) Notes and accounts receivable 20,750 20,750 — 201,613 201,613 —

Other current assets(4) Cash and deposits (maturing after 3 months) 50,000 50,000 — 485,814 485,814 —(5) Marketable securities (maturing after 3 months) 10 10 — 97 97 —

Investment securities(6) Investment securities 29,176 29,176 — 283,482 283,482 —

Other assets(7) Long-term loans receivable 354 354 — 3,440 3,440 —

Total assets ¥180,308 ¥180,308 ¥— $1,751,924 $1,751,924 $ —Trade payables

(1) Notes and accounts payable-trade ¥ 20,216 ¥ 20,216 ¥— $ 196,424 $ 196,424 $ —Current portion of long-term debt

(2) Current portion of long-term loans payable 5,580 5,580 — 54,217 54,217 —Long-term debt

(3) Long-term loans payable 52,849 52,888 39 513,496 513,875 379Total liabilities ¥ 78,645 ¥ 78,684 ¥39 $ 764,137 $ 764,516 $379

9 FINANCIAL INSTRUMENTS




Method of calculating the fair value of financial instruments and matters related to securities

Assets

(1) Cash and deposits (maturing within 3 months), (2) marketable securities (maturing within 3 months), (3) notes and accounts receivable, (4) cash and deposits (maturing after 3 months), and (5) marketable securities (maturing after 3 months)

As these instruments are settled within a short term and their fair values and book values are nearly identical, their book values are assumed as their fair values.

(6) Investment securities

The fair values of equity securities are determined by their prices on stock exchanges.

(7) Long-term loans receivable

For long-term loans receivable, fair value is determined by discounting the total amount of principal and interest with the assumed interest rate on new borrowings of the same type.

Liabilities

(1) Notes and accounts payable-trade and (2) current portion of long-term loans payable


(3) Long-term loans payable

For long-term loans payable, fair value is determined by discounting the total amount of principal and interest with the assumed interest rate on new loans of the same type. However, for loans with floating interest rates that do not employ interest rate swaps, as interest rates are revised in set increments as conditions dictate and their fair values and book values are nearly identical, the book values are assumed as their fair values.

Financial instruments of which fair value is not readily determinableMillions of yen Thousands of U.S. dollars

Non-listed equity securities ¥4,063 $39,477Investment 240 2,332

These instruments are not included within “(6) Investment securities,” as they have no market value, and their fair value is not readily determinable.

Monetary assets and liabilities and the expected maturity values of marketable securities with maturities after the balance sheet dateMillions of yen

’14/3

Type Within one yearOver one year but within five years

Over five years but within ten years Over ten years

Cash and deposits ¥ 79,000 ¥ — ¥— ¥—Notes and accounts receivable 20,750 — — —Marketable securities and investment securities

Maturities of available-for-sale securities(1) Government bonds 10 700 — —(2) Other 36,500 240 — —

Long-term loans receivable 350 4 0 0Total ¥136,610 ¥944 ¥ 0 ¥ 0

Thousands of U.S. dollars

’14/3



Cash and deposits $ 767,587 $ — $— $—Notes and accounts receivable 201,613 — — —Marketable securities and investment securities

Maturities of available-for-sale securities(1) Government bonds 97 6,801 — —(2) Other 354,644 2,332 — —

Long-term loans receivable 3,401 39 0 0Total $1,327,342 $9,172 $ 0 $ 0

For information on the expected maturity values after the balance sheet date of long-term loans payable, see Note 4. “Long-term debt.”

78 Oriental Land

(Year ended March 31, 2013)The following table summarizes book value, fair value and difference on financial instruments, excluding financial instruments without fair value, as of March 31, 2013:

Millions of yen

’13/3

Book value Fair value Difference

Cash and cash equivalents(1) Cash and deposits (maturing within 3 months) ¥ 40,585 ¥ 40,585 ¥ —(2) Marketable securities (maturing within 3 months) 19,998 19,998 —

Trade receivables(3) Notes and accounts receivable 19,461 19,461 —

Other current assets(4) Cash and deposits (maturing after 3 months) 48,000 48,000 —(5) Marketable securities (maturing after 3 months) 702 702

Investment securities(6) Investment securities 28,391 28,391 —

Other assets(7) Long-term loans receivable 437 437 —

Total assets ¥157,574 ¥157,574 ¥ —Trade payables

(1) Notes and accounts payable-trade ¥ 19,641 ¥ 19,641 ¥ —Current portion of long-term debt

(2) Current portion of long-term loans payable 19,344 19,344 —Long-term debt

(3) Bonds payable 49,997 52,793 2,796(4) Long-term loans payable 54,655 54,725 70

Total liabilities ¥143,637 ¥146,503 ¥2,866

Method of calculating the fair value of financial instruments and matters related to securities

Assets

(1) Cash and deposits (maturing within 3 months), (2) marketable securities (maturing within 3 months), (3) notes and accounts receivable, (4) cash and deposits (maturing after 3 months), and (5) marketable securities (maturing after 3 months)


(6) Investment securities The fair values of equity securities are determined by their prices on stock exchanges.

(7) Long-term loans receivable For long-term loans receivable, fair value is determined by discounting the total amount of principal and interest with the assumed interest rate on new borrowings of the

same type.

Liabilities

(1) Notes and accounts payable-trade and (2) current portion of long-term loans payable As these instruments are settled within a short term and their fair values and book values are nearly identical, their book values are assumed as their fair values.

(3) Bonds payable The fair value of corporate bonds is determined based on market prices.

(4) Long-term loans payable For long-term loans payable, fair value is determined by discounting the total amount of principal and interest with the assumed interest rate on new loans o the same type.

However, for loans with floating interest rates that do not employ interest rate swaps, as interest rates are revised in set increments as conditions dictate and their fair values and book values are nearly identical, the book values are assumed as their fair values.




Financial instruments of which fair value is not readily determinableMillions of yen

Non-listed equity securities ¥3,987Investment 260

These instruments are not included within “(6) Investment securities,” as they have no market value, and their fair value is not readily determinable.

Monetary assets and liabilities and the expected maturity values of marketable securities with maturities after the balance sheet dateMillions of yen

’13/3



Cash and deposits ¥ 72,500 ¥ — ¥— ¥—Notes and accounts receivable 19,461 — — —Marketable securities and investment securities

Maturities of available-for-sale securities(1) Government bonds 700 10 — —(2) Other 19,998 260 — —

Long-term loans receivable 31 404 0 0Total ¥112,690 ¥674 ¥ 0 ¥ 0

For information on the expected maturity values after the balance sheet date of corporate bonds and long-term loans payable, see Note 4. “Long-term debt.”

10 COMMITMENTS AND CONTINGENT LIABILITIES

The Companies have non-cancelable lease agreements, principally for vehicles and computer equipment.

Guarantees under debt assumption agreements assumed in the year ended March 31, 2013 are as follows: Tenth issue of unsecured bonds: ¥10,000 million Guarantees under debt assumption agreements assumed in the year ended March 31, 2014 are as follows: Seventh issue of unsecured bonds: ¥30,000 million (US$291,489 thousand) Ninth issue of unsecured bonds: ¥20,000 million (US$194,326 thousand) Tenth issue of unsecured bonds: ¥10,000 million (US$97,163 thousand)

11 IMPAIRMENT LOSS

Impairment loss for the years ended March 31, 2012 is as follows:Millions of yen

Location Use Classification ’12/3

© Cirque du Soleil Theatre Tokyo (Urayasu City) Theater Buildings and machinery, equipment and vehicles ¥6,319

Shops (Hiratsuka City, Kanagawa) Restaurants and retail stores Buildings, kitchen facilities and equipment 13

Total ¥6,332

The Company resolved to close the theater and end the performances at the theater in the year ended March 31, 2012. Therefore, the Company expensed the amount of non-current assets related to the theater business and presented it as an impairment loss. For restaurants and retail stores, a certain consolidated subsidiary determined to recognize an impairment loss by reducing the book value to the recoverable amount of the group of assets continuously making a loss. For restaurants and retail stores, the recoverable amount of the property was determined based on the value in use calculated under the 4% discount rate of future cash flows. Impairment loss was not recorded in the year ended March 31, 2014 and 2013.

80 Oriental Land

12 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

The amounts related to the tax effect on other comprehensive income for the years ended March 31, 2014 and 2013 are as follows:


U.S. dollars

The amounts related to the tax effect on other comprehensive income ’14/3 ’13/3 ’14/3

Valuation difference on available-for-sale securitiesCurrent year accrual ¥101 ¥8,698 $981Recycling — — —

Other comprehensive income, before tax 101 8,698 981Tax effect (39) (2,956) (379)Net of income tax effect 62 5,742 602

Deferred gains (losses) on hedgesCurrent year accrual — 1,082 —Recycling — — —

Other comprehensive income, before tax — 1,082 —Tax effect — (409) —Net of income tax effect — 673 —

Total ¥ 62 ¥6,415 $602

13 LOSS ON DISASTER

Loss on disaster represents the fixed expenses (personnel expenses, depreciation and amortization, etc.) incurred during the period of being closed to business due to the Great East Japan Earthquake, as well as the restoration cost and the disposal loss on merchandise. Loss on disaster was not recorded in the years ended March 31, 2014 and 2013.

14 CONSOLIDATED STATEMENTS OF CASH FLOWS

Amounts of assets and liabilities of newly consolidated subsidiaries in the fiscal year ended March 31, 2013

The following are the amounts of assets and liabilities for Brighton Corporation and two other newly consolidated companies at the time of acqui-sition for the year ended March 31, 2013, and the acquisition cost of those companies’ stocks and the amounts of cash and cash equivalents and of net expenditure for acquisition.

Millions of yen

Current assets ¥ 1,255Non-current assets 18,977Goodwill 1,240Current liabilities 1,832Non-current liabilities 18,589Acquisition cost 1,051Cash and cash equivalents of acquired companies 684Net expenditure 367

A Overview of business combination

(1) Name and business activities of acquired companyName of acquired company: Brighton CorporationBusiness activities: Hotel management, operation, etc.

(2) Primary reason for business combinationThe acquisition of hotels in the Shin-Urayasu area is expected to generate synergies with Tokyo Disney Resort, and the business com-bination also brings the potential of developing hotel operations in the Kyoto area.

(3) Date of business combinationMarch 29, 2013

(4) Legal form of business combinationAcquisition of shares in cash

(5) Percentage of voting rights after acquisition100%

15 BUSINESS COMBINATIONS




B Period for which business results of acquired company are

included in consolidated financial statements

Not applicable because the acquisition date was considered to be March 31, 2013.

C Acquisition cost and details of acquired companyMillions of yen

Compensation paid for acquisition ¥ 570Expenses directly related to acquisition 481Acquisition cost ¥1,051

D Amount, reason for occurrence, amortization method and

amortization period for goodwill

(1) Goodwill amount: ¥1,240 million

(2) Reason for occurrenceThe cost of acquisition exceeded the value of assets acquired and lia-bilities assumed, and the amount exceeded was recorded as goodwill.

(3) Amortization method and amortization periodAmortization is computed by the straight-line method over a five-year period.

E Details of assets acquired and liabilities assumed on the

date of business combinationMillions of yen

Current assets ¥ 1,255Non-current assets 18,977Total assets ¥20,232Current liabilities ¥ 1,832Non-current liabilities 18,589Total liabilities ¥20,421

F Approximate effect on the consolidated statements of

income if the business combination had been completed

at the beginning of the year ended March 31, 2013 and the

calculation method

Approximate effect and calculation method are not shown as the effect is immaterial.

16 SEGMENT INFORMATION

Segment information for the years ended March 31, 2014, 2013 and 2012

Reportable segments are the segments of the Companies for which financial information can be obtained. The Board of Directors examines such information to determine the allocation of management resources and evaluate the business performance on a regular basis. The Companies conduct the management and operation of hotels and theme parks as their primary business. Taking into consideration the type and nature of services offered and similarity of market, the Company has established two reportable segments: the Theme Park Segment and the Hotel Segment. The Theme Park Segment manages and operates theme parks. The Hotel Segment manages and operates hotels. Methods of accounting for reportable segments are generally identical to those described in Note 1. “Significant accounting and reporting policies.”

(Year ended March 31, 2014)Millions of yen

’14/3Reportable Segments

Other Business Total Adjustment ConsolidatedTheme Park Hotel Total

Net salesSales to external customers ¥390,912 ¥64,933 ¥455,845 ¥17,728 ¥473,573 ¥ — ¥473,573Intersegment sales or transfers 6,228 638 6,866 3,988 10,854 (10,854) —

Total 397,140 65,571 462,711 21,716 484,427 (10,854) 473,573Segment income 97,154 15,898 113,052 1,261 114,313 178 114,491Segment assets ¥373,889 ¥95,114 ¥469,003 ¥50,188 ¥519,191 ¥145,348 ¥664,539Others

Depreciation and amortization ¥ 29,314 ¥ 4,880 ¥ 34,194 ¥ 2,763 ¥ 36,957 ¥ (23) ¥ 36,934Increase in property, plant and equipment and intangible assets ¥ 16,918 ¥ 2,133 ¥ 19,051 ¥ 1,327 ¥ 20,378 ¥ (11) ¥ 20,367

82 Oriental Land

Thousands of U.S. dollars

’14/3Reportable Segments


Net salesSales to external customers $3,798,212 $630,908 $4,429,120 $172,250 $4,601,370 $ — $4,601,370Intersegment sales or transfers 60,513 6,199 66,712 38,749 105,461 (105,461) —

Total 3,858,725 637,107 4,495,832 210,999 4,706,831 (105,461) 4,601,370Segment income 943,976 154,469 1,098,445 12,253 1,110,698 1,729 1,112,427Segment assets $3,632,812 $924,155 $4,556,967 $487,640 $5,044,607 $1,412,243 $6,456,850Others

Depreciation and amortization $ 284,823 $ 47,416 $ 332,239 $ 26,846 $ 359,085 $ (224) $ 358,861Increase in property, plant and equipment and intangible assets $ 164,380 $ 20,725 $ 185,105 $ 12,893 $ 197,998 $ (106) $ 197,892

(a) “Other business” includes business segments that are not part of the Company’s reportable segments. These include the management and operation of IKSPIARI and Disney Resort Line; the operation of employee cafeterias; and the management and operation of theme restaurants.

(b) Segment income has been adjusted by ¥178 million (US$1,729 thousand) to account for intersegment sales or transfers.(c) Segment assets have been adjusted by ¥145,348 million (US$1,412,243 thousand). This included deducting intersegment sales or transfers total-

ing ¥3,989 million (US$38,758 thousand) and adjusting for assets valued at ¥149,337 million (US$1,451,001 thousand) that are not attributable to any segment. These assets primarily represent the parent company’s surplus operating capital (cash and cash equivalents) and long-term invested capital (investment securities).

(d) Segment income has been adjusted to operating income on the Consolidated Statements of Income.(e) Depreciation and amortization and increase in property, plant and equipment and intangible assets include the amortization and addition of

long-term prepaid expenses.(f) Revenues outside Japan and revenues by sales to foreign customers are less than 10% of the Companies’ consolidated net revenues for the year

ended March 31, 2014.


’13/3

Reportable Segments



Total 335,017 49,494 384,511 20,539 405,050 (9,523) 395,527Segment income 68,485 12,022 80,507 607 81,114 353 81,467Segment assets ¥384,344 ¥97,449 ¥481,793 ¥51,749 ¥533,542 ¥122,003 ¥655,545Others

Depreciation and amortization ¥ 28,909 ¥ 4,535 ¥ 33,444 ¥ 2,722 ¥ 36,166 ¥ (34) ¥ 36,132Increase in property, plant and equipment and intangible assets ¥ 26,496 ¥20,959 ¥ 47,455 ¥ 1,195 ¥ 48,650 ¥ (18) ¥ 48,632

(a) “Other business” includes business segments that are not part of the Company’s reportable segments. These include the management and operation of IKSPIARI and Disney Resort Line; the operation of employee cafeterias; and the management and operation of theme restaurants.

(b) Segment income has been adjusted by ¥353 million to account for intersegment sales or transfers.(c) Segment assets have been adjusted by ¥122,003 million. This included deducting intersegment sales or transfers totaling ¥4,270 million and

adjusting for assets valued at ¥126,273 million that are not attributable to any segment. These assets primarily represent the parent company’s surplus operating capital (cash and cash equivalents) and long-term invested capital (investment securities).

(d) Segment income has been adjusted to operating income on the Consolidated Statements of Income.(e) Depreciation and amortization and increase in property, plant and equipment and intangible assets include the amortization and addition of

long-term prepaid expenses.(f) Revenues outside Japan and revenues by sales to foreign customers are less than 10% of the Companies’ consolidated net revenues for the year






’12/3

Reportable Segments



Total 302,354 42,729 345,083 23,568 368,651 (8,590) 360,061Segment income 56,433 9,555 65,988 734 66,722 201 66,923Segment assets ¥383,092 ¥81,268 ¥464,360 ¥52,703 ¥517,063 ¥102,431 ¥619,494Others

Depreciation and amortization ¥ 32,122 ¥ 4,478 ¥ 36,600 ¥ 3,289 ¥ 39,889 ¥ (39) ¥ 39,850Impairment loss — — — 6,332 6,332 — 6,332Loss on disaster 2,795 766 3,561 61 3,622 (4) 3,618Increase in property, plant and equipment and intangible assets ¥ 22,009 ¥ 640 ¥ 22,649 ¥ 564 ¥ 23,213 ¥ (3) ¥ 23,210

(a) “Other business” includes business segments that are not part of the Company’s reportable segments. These include the management and operation of IKSPIARI, Cirque du Soleil Theatre Tokyo, and Disney Resort Line; the operation of employee cafeterias; and the management and operation of theme restaurants.

(b) Segment income has been adjusted by ¥201 million to account for intersegment sales or transfers.(c) Segment assets have been adjusted by ¥102,431 million. This included deducting intersegment sales or transfers totaling ¥3,315 million and

adjusting for assets valued at ¥105,746 million that are not attributable to any segment. These assets primarily represent the parent company’s surplus operating capital (cash and cash equivalents) and long-term invested capital (investment securities).

(d) Adjustments to extraordinary losses arising from the one-time accelerated repayment of interest-bearing debt and elimination of inter-segment transactions amounted to ¥579 million.

(e) Segment income has been adjusted to operating income on the Consolidated Statements of Income.(f) Depreciation and amortization, impairment loss, and increase in property, plant and equipment and intangible assets include the amortization,

impairment, and addition of long-term prepaid expenses.(g) Impairment loss in “Other business” is primarily attributable to the management and operation of Cirque du Soleil Theatre Tokyo.(h) Revenues outside Japan and revenues by sales to foreign customers are less than 10% of the Companies’ consolidated net revenues for the year


17 SUBSEQUENT EVENT

None applicable.

To the Board of Directors of Oriental Land Co., Ltd.:

We have audited the accompanying consolidated financial statements of Oriental Land Co., Ltd. and its consolidated subsidiaries, which

comprise the consolidated balance sheets as at March 31, 2014 and 2013, and the consolidated statements of income, the consolidated

statements of comprehensive income, the consolidated statements of changes in net assets and the consolidated statements of cash

flows for the years ended March 31, 2014, 2013 and 2012, and a summary of significant accounting policies and other explanatory

information.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with

accounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the

preparation of consolidated financial statements that are free from material misstatements, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits

in accordance with auditing standards generally accepted in Japan. Those standards require that we comply with ethical requirements

and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from

material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial

statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the

consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant

to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are

appropriate in the circumstances, while the objective of the financial statement audit is not for the purpose of expressing an opinion on

the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and

the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated

financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Oriental Land Co.,

Ltd. and its consolidated subsidiaries as at March 31, 2014 and 2013, and their financial performance and cash flows for the years ended

March 31, 2014, 2013 and 2012 in accordance with accounting principles generally accepted in Japan.

Convenience Translation

The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2014 are

presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion,

such translation has been made on the basis described in Note 1 to the consolidated financial statements.

June 27, 2014

Tokyo, Japan

84 Oriental Land

Independent Auditors’ Report

Corporate Data

Stock Information

Company Name Oriental Land Co., Ltd.

Address 1-1 Maihama, Urayasu, Chiba 279-8511, Japan

Established July 11, 1960

Capital Stock ¥63,201 million

Number of Employees

4,348 (Consolidated, OLC Group)2,196 (Non-consolidated, Oriental Land Co., Ltd.)

Stockholders

Number of Shares

(Thousands)Percentage

Held (%)

Keisei Electric Railway Co., Ltd. 18,157 19.97

Mitsui Fudosan Co., Ltd. 7,689 8.46

Chiba Prefecture 3,300 3.63

The Master Trust Bank of Japan, Ltd. (Trust accounts) 2,216 2.44

Mizuho Trust & Banking Co., Ltd.*2 1,874 2.06

Japan Trustee Services Bank, Ltd. (Trust accounts) 1,651 1.82

The Dai-ichi Life Insurance Company, Limited 1,640 1.80

Japan Trustee Services Bank, Ltd. (Trust accounts 4) 1,007 1.11

Sumitomo Mitsui Trust Bank, Limited 863 0.95

STATE STREET BANK WEST CLIENT - TREATY 774 0.85

*1. In addition to the above, 7,205 thousand shares are held in treasury. Treasury stock does not include 216 thousand shares of the Company’s stock that are held by the trust.

*2. Shares held in a pension trust account with Mizuho Trust & Banking Co., Ltd., are for the benefit of retirement plans of Mizuho Corporate Bank, Ltd.

Common Stock Outstanding 90,922,540 shares

Stock Listing Tokyo Stock Exchange, First Section

Code No. 4661

Investment Unit 100 shares

Number of Stockholders 100,741

Bond Ratings JCR…AA R&I…AA–

Share Registrar Sumitomo Mitsui Trust Bank, Limited4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan

Transfer Agent Stock Transfer Agent Department,Sumitomo Mitsui Trust Bank, Limited8-4, Izumi 2-chome, Suginami-ku, Tokyo 168-0063, Japan

Milial Resort Hotels Co., Ltd.Maihama Resort Line Co., Ltd.IKSPIARI Co., Ltd.RC Japan Co., Ltd.Maihama Corporation Co., Ltd.Green and Arts Co., Ltd.

Photo Works Co., Ltd.Design Factory Co., Ltd.Bay Food Services Co., Ltd.Resort Costuming Service Co., Ltd.Maihama Building Maintenance Co., Ltd.M TECH Co., Ltd.

◆ Primary Subsidiaries

◆ Principal Stockholders*1 (Top Ten)

◆ Distribution of StockholdersNational government and local public organizations

4.36%

Financial institutions17.73%

Securities companies0.56%

Other corporations33.61%

Foreign corporations and individuals13.60%

Individuals and others22.21%

Treasury stock7.93%

◆ Stock Price Range and Trading Volume

The copyrights to the Disney characters and scenes from Tokyo Disneyland, Tokyo DisneySea, Disney Ambassador Hotel, Tokyo DisneySea Hotel MiraCosta, Tokyo Disneyland Hotel and Disney Resort Line are owned by or licensed to Disney Enterprises, Inc. © Disney Enterprises, Inc. © Disney/Pixar.

0

3000

6000

9000

12000

15000

18000

0’10/1 ’11/1 ’12/1 ’13/1 ’14/1

3,000

6,000

9,000

12,000

15,000

18,000Stock Price (Yen)

0

10,000

20,000

Trading Volume (Thousand Shares)

Nikkei Stock Average



Annual Report 2014 85

Corporate Data / Stock InformationAs of March 31, 2014

1-1 Maihama, Urayasu, Chiba 279-8511, Japan

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

“Oriental Land,” Oriental Land’s equivalent in Japanese, and the Oriental Land logo are registered trademarks or trademarks of Oriental Land Co., Ltd., in Japan and overseas. The names of other companies, other logos, product names, brands, etc., mentioned in this annual report are registered trademarks or trademarks of Oriental Land Co., Ltd., Disney Enterprises, Inc., or the applicable companies.

Printed in Japan

your happiness, our growth - オリエンタルランド...big thunder mountain july 4, 1987 8.0...

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