IR Presentation Material
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IR Presentation Material August, 2021 Oriental Land Co., Ltd. This material has been specifically prepared for institutional investors who are not familiar with our company, and is not presentation material for the earnings presentation. Contents I. Business Outline II. Growth Investments beyond FY3/22 I-I. Theme Park Business III. For Long-term Sustainable Growth I-II. Hotel Business IV. Appendix I-III. Overview Cautionary Statement The purpose of this document is to provide information on the operating results and future management strategies of the OLC Group, and not to solicit investment in securities issued by the Company. 2 The data disclosed in this document are based on the judgments and available information as of the date of publication. The OLC Group's business is sensitive to factors such as customer preferences, and social and economic conditions, and therefore the forecasts and outlook presented in this document contain uncertainties. Theme Park attendance figures have been rounded, and financial figures have been truncated. Please refrain from reprinting this document. 2 I. Business Outline Corporate Profile I. Business Outline Corporate Data Stock Information Established July 11, 1960 Tokyo Stock Stock Listing Code Exchange, First No. Total Assets Section 4661 ¥1,040.4 billion [consolidated] Shareholders’ Investment Unit 100 shares Equity ¥759.9 billion [consolidated] Stock Price ¥15,400 JCR : AA [Stable] Aggregate Market Bond Ratings 4 ¥5,600.8 billion R&I : AA- [Stable] Price [As of March 31, 2021] [As of July 28, 2021] Corporate Mission Business Domain Our mission is to create happiness and “We pursue businesses that fill your contentment by offering wonderful heart with energy and happiness” We strive to create new value in a high-value dreams and moving experiences created business for enriching and nourishing people’s hearts with original, imaginative ideas and appealing to abundant humanity and happiness 4 History and Business Description I. Business Outline History Tokyo Disney Resort Disney Hotels Shops and restaurants, Monorail service 1960 Oriental Land Co., Ltd. [OLC] was established [under direct provided around management] cinema complex, etc. the resort OLC and Chiba Prefecture concluded the Urayasu 1962 District Land Reclamation Agreement Disney Ambassador Reclamation work began off the coast of Urayasu Ikspiari Hotel 1964 [completed in 1975] OLC and Walt Disney Productions [currently, Disney Tokyo Enterprises, Inc.] concluded an agreement on the Disneyland Tokyo DisneySea 1979 Hotel licensing, design, construction and operation of Tokyo Disneyland Hotel MiraCosta Tokyo Disneyland 1983 Tokyo Disneyland opened Listed on the first section of the Tokyo 1996 5 Tokyo DisneySea Stock Exchange 2000 Ikspiari and Disney Ambassador Hotel opened Disney Resort Line, Tokyo DisneySea, and Tokyo 2001 DisneySea Hotel MiraCosta opened Tokyo Disney Resort 2008 Tokyo Disneyland Hotel opened Official Hotels Milial Resort Hotels Co., Ltd. (MRH) acquired all 2013 stocks of Brighton Corporation Co., Ltd. 2016 Tokyo Disney Celebration Hotel opened The first Disney Theme The only “Sea”-themed Disney Park outside of the U.S. Theme Park in the world Managing and operating a large scale theme resort offering versatile Entertainment facilities 5 Unique Competitive Advantage to Support Our Earnings I. Business Outline 1. Prime Locations 2. License Agreement with Disney 2046 at maximum Vast Land Holdings Period Note: When facilities open as planned, the agreement period can be extended to 2 Own approx. 2,000,000 m 2076 at maximum [approx. 500 acres] of land easily accessible from central Tokyo Activities Management and operation of Tokyo Covered Disney Resort, etc. Huge Market Payment of royalties fees based on net Consideration sales [yen basis] Approx. 30 million of high income households living within 50km [30 miles] Relationship No capital or personnel relationship radius Only OLC operates Disney Theme Parks in Japan 6 3. Human Resources with Magnificent Hospitality Ibaraki Saitama 東京 Raise the level of Raise the level of 千葉 Tokyo Guest Satisfaction Employee Satisfaction 神奈川 Chiba Kanagawa Diverse measures and education/training programs are implemented with as much focus on employee satisfaction as on Guest satisfaction Establish stable earnings base by implementing structural/non-structural strategies that capitalize on the advantageous location 6 Mechanism of Value Creation I. Business Outline Unique competitive Value Business model advantage provided New Hotel investment Business Segment ←Enhanced appeal increases cash flow Increasing (1) Prime Locations corporate value (2) License Agreement with “Creating Disney Theme Park 7 Enhance appeal by Happiness” (3) Human Resources Segment making additional investments on an ongoing basis → Attract more Other Guests/Increase Business sales per Guest Segment Deliver more happiness by making tangible and intangible investments to increase corporate value 7 Changes in Business Results I. Business Outline Net Sales and Operating Margin Operating Profit and Profit Consolidated net sales [¥ billion] Consolidated operating profit [¥ billion] Operating margin Consolidated profit attributable to owners of parent [¥ billion] 525.6 129.2 477.7 479.2 464.4 113.1 110.2 23.7% 24.6% 23.0% 96.8 20.9% 90.2 82.3 81.1 62.2 170.5 8 Influence of Influence of COVID-19 pandemic COVID-19 pandemic 3/17 3/18 3/19 3/20 3/21 [FY] 3/17 3/18 3/19 3/20 3/21 [FY] (45.9) (27.0)% (54.1) Our business result decreased as a result of temporary closure of 4 months and giving utmost priority to safety and peace of mind in Park operations 8 Segment Information I. Business Outline Breakdown by Segment and Content of Segments Results for FY ended 3/21 Consolidated net sales ¥170.5 billion Tokyo Disneyland Theme Park Tokyo DisneySea Segment 78.7% Tokyo Disneyland Hotel Tokyo9 DinsneySea Hotel MiraCosta Disney Ambassador Hotel Hotel Business Tokyo Disney Celebration Hotel Segment and others Ikspiari Disney Resort Line Other Business 16.8% and others Segment 4.5% About 80% comes from the Theme Park Segment 9 I-I. Theme Park Business Trend in Theme Park Attendance I-I. Theme Park Business Annual Theme Park Attendance [million people] Tokyo Disney Resort Tokyo Disney Resort %: year on year Tokyo Disney Resort 25th Anniversary 30th Anniversary 35th Anniversary Opening of Tokyo DisneySea Tokyo DisneySea Tokyo DisneySea Tokyo DisneySea 5th Anniversary 10th Anniversary 15th Anniversary Tokyo Disneyland Tokyo Disneyland 32.56 15th Anniversary 20th Anniversary 31.30 [+8.2%] [+13.8%] 30.00 [(0.6)%] 27.22 [+7.1%] Opening of 25.47 25.82 25.35 [+2.6%] [+4.2%] [(0.1)%] Tokyo Disneyland 22.05 [+27.4%] 11 17.46 [+4.6%] 7.56 [(73.9)%] 9.93 3/84 3/99 3/02 3/04 3/07 3/093/12 3/14 3/17 3/19 3/21 [FY] Note: Attendance figures for FY 3/12 and 3/17 decreased from the previous fiscal years respectively because of the influence of earthquakes. Attendance figure for FY 3/21 decreased from the previous fiscal year due to the spread of COVID-19. Theme Park attendance has increased driven by each anniversary event, exceeding 30 million on a stable basis 11 Trend in Theme Park Attendance I-I. Theme Park Business Breakdown of Guests by Region Number of Overseas Guests Overseas [million people] 6.0% 8.5% 9.8% 9.6% 10.0% 3.13 15.0% 2.95 areas in 2.90 Japan Other 27.3% 26.8% 2.55 26.6% 29.6% 27.1% 1.81 Metropolitan 85.0% Area 66.7% 64.7% 63.6% 60.8% 62.9% 12 0 3/16 3/17 3/18 3/19 3/20 3/21 [FY] 3/16 3/17 3/18 3/19 3/20 3/21 [FY] Metropolitan ・Largest number of Guests accounting ・Increases in tandem with the Area for approx.60% growing number of tourists visiting Overseas Japan Other areas ・Mainly Chubu and Koshinetsu regions ・More guests can be attracted from in Japan ・Tends to grow in anniversary years this category Guests from overseas and areas other than metropolitan area decreased due to COVID-19 12 Net Sales per Guest I-I. Theme Park Business Net Sales per Guest and Breakdown Ticket price revision policy [¥] Increase in Theme × Price sensitivity 13,642 Park value survey result 6,538 +Trends in demand 11,815 Ticket 11,594 11,614 11,606 Note: Take external environment including 11,257 Receipts tax hike into consideration 5,352 5,292 5,264 5,339 5,007 • Ticket receipts per Guest increase over two years since ticket price revision • Introduction of variable pricing since March 20, 2021 4,122 13 3,964 4,074 3,989 4,122 3,877 • Tend to increase in anniversary event Merchandise* years • Development of contents, such as Duffy & Friends series, lead to increase in 2,982 earnings 2,286 2,256 2,286 2,341 2,437 Food and • Stable net sales maintained regardless of Beverages 3/16 3/17 3/18 3/19 3/20 3/21 [FY] whether or not events are hold • Create more dining opportunities Note: Each figure for net sales per Guest in FY3/21 grew for the reasons including restriction on ticket types under the limit of COVID-19 pandemic, temporary demand for merchandise, and increased dining opportunities with less waiting time for attractions. Achieved increase in net sales per Guest based on meticulous pricing strategy 13 I-II. Hotel Business Facilities of Hotel Business I-II. Hotel Business Disney Hotels Disney Ambassador Tokyo DisneySea Tokyo Disneyland Tokyo Disney Hotel Hotel MiraCosta Hotel Celebration Hotel Deluxe-type Deluxe-type Deluxe-type Value-type 504 rooms 502 rooms 706 rooms 702 rooms ・ Own four Disney Hotels [about 2,400 rooms] ・ Tokyo Disney Resort Toy Story Hotel is scheduled to launch in the 2nd half of FY3/22 ・ New Disney Hotel located inside Tokyo DisneySea15 is scheduled to launch in FY3/24 Other Hotels ・ Own Brighton-brand hotels [about 600 rooms] ・ Hyatt Regency Seragaki Island Okinawa opened in August, 2018 [joint project of three companies] Strengthen Hotel business with the growth and expansion of Tokyo Disney Resort 15 Results for Hotel Business I-II.