1-1 Maihama, Urayasu, Chiba 279-8511, Japan www.olc.co.jp/en www.tokyodisneyresort.co.jp/index_e.html

“Happiness Creates Value”

ANNUAL REPORT 2008 2008 for the Year Ended March 31, 2008

Printed in Japan Our Presence Oriental Land Co., Ltd. (“Oriental Land”) was established in 1960 to reclaim land off the coast of Urayasu, Chiba Prefecture, and to construct a large-scale leisure facility with the objective of contributing to the culture, welfare and well-being of the Japanese people. In 1983, Oriental Land opened Tokyo Disneyland® in Maihama, Chiba Prefecture, about 10 kilometers (six miles) from central Tokyo. Since then, we have significantly contributed to the expansion of Japan’s amusement and leisure park industry and have maintained our established position in the market and expanded our profit base by maximizing our advantages of superb location, our business alliance with Disney Enterprises, Inc., our accumulated theme park management expertise and our ability to generate sta- ble cash flow. In 2001, we opened Tokyo DisneySea®, the world’s first Disney theme park based on a maritime concept. To date, the two theme parks have welcomed a cumulative total of more than 400 million guests. The opening of Tokyo DisneySea heralded the full-scale operation of the Tokyo Disney Resort®, a unique theme resort spanning approximately 2 million square meters of land near Tokyo. We continuously develop the resort to fur- ther raise its appeal. The Oriental Land Group (“the OLC Group”), led by Oriental Land, is broadening its operations beyond the Maihama area, the site of Tokyo Disney Resort, into such ventures as The Disney Store Japan. Aspiring to create new value, Oriental Land will continue developing its “Fill Your Heart with Energy and Happiness” business — a high-value pursuit that energizes and enriches people’s lives.

Our mission is to create happiness and contentment Business Mission by offering wonderful dreams and moving experiences created with original, imaginative ideas.

Contents Our Presence 1 Corporate Governance 18 Business Mission 1 Board of Directors, Corporate Auditors Strengths of Tokyo Disney Resort 2 and Corporate Officers 21 Financial Highlights 4 The OLC Group at a Glance 23 To Our Stakeholders 5 Review of Consolidated Operations 24 Interview with Representative Director, Forecast for the Fiscal Year Ending March 2009 26 President and COO Yoshiro Fukushima 6 Financial Section Feature: Happiness Creates Value 10 Six-Year Summary 28 Enhancing the Appeal of Tokyo Disney Resort 12 Management’s Discussion and Cautionary Remark Regarding Forward-Looking Statements The Cast Members That Support Analysis of Operations 29 This Annual Report includes statements about Oriental Land’s plans, estimates, strategies and beliefs. The statements made that are not based on historical Tokyo Disney Resort 14 Consolidated Financial Statements 36 fact represent the assumptions and expectations of Oriental Land in light of the information available to it as of June 2008, and should be considered as forward- Oriental Land’s Corporate Data 54 looking. Oriental Land uses a variety of business measures to constantly strive to increase its revenues and management efficiency. However, Oriental Land recognizes Corporate Social Responsibility (CSR) 16 Investor Information 55 that there are certain risks and uncertainties that should be considered which could cause actual performance results to differ from those discussed in the for- ward-looking statements. Potential risks could include, but are not limited to, weather, general economic conditions, and consumer preferences. Therefore, there is no firm assurance that the forward-looking statements in this Annual Report will prove to be accurate. Oriental Land Annual Report 2008 1 Strengths of Tokyo Disney Resort Tokyo DisneySea Hotel MiraCosta Disney Resort Line Tokyo Disney Resort Official Hotels

Market Advantages

Share of the Approximately 40.3% Amusement and Leisure Park Market: Amusement and Total Leisure Parks: ¥648.0 40% Market Size and Billion the OLC Group’s Share 2006 Source: White Paper on Leisure 2007 (July 2007, Japan Productivity Center for Socio-Economic Development) Tokyo Disneyland Note: Data used to calculate the OLC Group’s market share is based on figures for each fiscal year Tokyo DisneySea (e.g., 2006 reflects figures for the fiscal year from April 1, 2006 to March 31, 2007).

Approximately

Annual Attendance Million at Theme Parks: Guests 25.0 (Thousands) Annual Rank Name of Facility Attendance Attendance 1 Tokyo Disneyland Ranking 25,816 among Japanese Tokyo DisneySea Theme Parks: 2 Universal Studios Japan 8,698 3 Namco Namjatown 2,263 4 Huis Ten Bosch 2,140 No.1 5 Parque España—Shima Spain Village 1,589 Source: Japan Amusement and Recreation Park Data Book 2008 Open July 8, 2008 (SOGO UNICOM CO., Ltd., November 2007) Tokyo Disneyland Hotel Note: Ranking based on the fiscal year ended March 2007.

Open October 1, 2008 Cirque du Soleil Theatre Tokyo Disney Ambassador Hotel IKSPIARI Bon Voyage Four Strengths That Support Our Earnings Base

Accumulated Theme Park Superb Location Business Alliance with Ability to Generate Stable Cash Flow 12Disney Enterprises, Inc. 3 Management Expertise 4 Intangibles: High-Quality Service EBITDA EBITDA＝ Operating income + Depreciation expenses Extensive Land License Agreement for Japan The source of OLC’s strength is human resources that provide (Billions of yen) Approx. 2 million square meters of Tokyo Disney Resort 74.0 77.1 74.8 ● Scope outstanding hospitality. connected land 10 kilometers (6 miles) Design, construction and operation of Tokyo Disney Resort and 43.4 43.0 43.6 from the city center Tangibles: Ongoing Additional Investment The Disney Store in Japan Immense Market Create spaces of dreams where guests gain a whole new 30.6 34.1 31.1 ● Royalties experience of enjoyment and moving 2006 2007 2008 (Fiscal years ended Population of approx. 30 million with Attract more experiences with each visit Increase appeal and capacity guests March 31) substantial disposable income living Proportionate to revenues (yen-denominated) Capital Expenditures Central ▼ within a 50-kilometer (30-mile) radius Tokyo (Billions of yen) 54.8 52.7 Note: OLC has no capital or personal relationship with Disney Increase appeal Increase cash flow 43.1 Convenient Access and capacity Enterprises, Inc. but the two companies have enjoyed a highly Investment 15 minutes by train from Tokyo Station positive relationship for more than 25 years. 50-60 minutes by airport shuttle bus 2006 2007 2008 (Fiscal years ended Achieve a greater number of guests March 31) The OLC Group owns extensive land in a The OLC Group is the operator of the and high rate of repeat visits with expertise in Implement ongoing additional investment based on superior location Disney theme parks in Japan intangibles and tangibles generating stable cash flow

2 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 3 Financial Highlights To Our Stakeholders

Oriental Land Co., Ltd. and Consolidated Subsidiaries Fiscal Years Ended March 31, 2008, 2007 and 2006 Millions of yen Percent change Thousands of U.S. dollars1 2008 2007 2006 2008/2007 2008 FOR THE YEAR: The OLC Group will steadily promote its Revenues ¥342,422 ¥344,083 ¥332,885 (0.5)% $3,417,726 Operating income 31,144 34,111 30,605 (8.7) 310,849 Net income 14,731 16,309 15,704 (9.7) 147,031 medium-term plan “Innovate OLC 2010” to Capital expenditures2 52,691 54,807 43,129 (3.9) 525,911 Depreciation and amortization, aggregate 43,623 42,951 43,374 1.6 435,403 achieve earnings growth and greater stockholder Free cash flow3 5,663 4,453 15,949 27.2 56,523 AT YEAR-END: returns as it continues to be a company that Total assets ¥757,542 ¥699,772 ¥718,866 8.3% $7,561,054 Net assets4 388,181 385,001 375,947 0.8 3,874,448 earns the support of its stakeholders by Interest-bearing debt 294,320 235,626 266,945 24.9 2,937,617 Yen Percent change U.S. dollars1 deepening their trust and understanding. PER SHARE DATA: Net income ¥ 154.86 ¥ 171.46 ¥ 162.73 (9.7)% $ 1.55 Net assets 4,079.44 4,046.03 3,950.49 0.8 40.72 Cash dividends 60.00 55.00 45.00 9.1 0.60 Overview of Results for the Fiscal Year Ended March 31, 2008 Disneyland. We will hold Tokyo Disney Resort 25th Anniversary Percent Amount of change During the fiscal year ended March 2008, the first of our four-year throughout the entire resort during the year and open two new facili- SELECTED FINANCIAL DATA: Operating margin 9.1% 9.9% 9.2% (0.8) pts medium-term plan “Innovate OLC 2010,” revenues and income ties, Tokyo Disneyland Hotel in July and Cirque du Soleil Theatre Tokyo Return on assets (ROA)5 2.0 2.3 2.3 (0.3) decreased compared with the previous fiscal year. Revenues were in October. Accompanying this, we will implement new programs for all Return on equity (ROE)6 3.8 4.3 4.1 (0.5) ¥342,422 million (down 0.5 percent) due to factors including a employees to raise the hospitality of cast members as we work to fur- Equity ratio 51.2 55.0 52.3 (3.8) Payout ratio 38.7 32.1 27.7 6.6 decrease in theme park attendance from the record set during Tokyo ther enhance quality in building unparalleled advantages that set us DisneySea 5th Anniversary in the previous fiscal year. Operating income apart from our competitors. Annual theme park attendance (thousands of guests) 25,424 25,816 24,766 was ¥31,144 million (down 8.7 percent) due to an increase in depreci- For net income, we expect steady increases from the fiscal year Revenues per guest (¥) 9,370 9,309 9,220 ation expenses following a tax code revision, and an increase in special ending March 2009 to reach the ¥27.0 billion level in the fiscal year Average length of visit (hours) 8.4 8.4 8.4 costs consisting of expenses preceding Tokyo Disney Resort 25th ending March 2011, one of the targets of our medium-term plan. Notes: 1. The U.S. dollar amounts are provided for convenience only and have been converted at the rate of ¥100.19 to $1, the approximate rate of exchange in effect at March 31, 2008. 2. Capital expenditures includes tangible and intangible assets. Anniversary and preparation expenses for opening new facilities. Net Based on another target of a consolidated payout ratio of 35 percent or 3. Free cash flow = Net income + Depreciation and amortization, aggregate – Capital expenditures income was ¥14,731 million (down 9.7 percent) as a result of one-time higher, we paid cash dividends per share of ¥60.00 for the fiscal year 4. Net assets as of March 31, 2006 and previous fiscal years has been restated in accordance with a change in accounting standards. 5. Return on assets = Net income / Total assets losses including an impairment loss following the decision to terminate ended March 2008 (an increase of ¥5.00 from the previous fiscal year) 6. Return on equity = Net income / Owners’equity operations at Camp Nepos, a facility within IKSPIARI, as well as a loss and plan to pay ¥65.00 for the fiscal year ending March 2009 (an Revenues Operating Income / Operating Margin Net Income / Net Income per Share on doubtful receivables and an impairment loss due to the bankruptcy increase of ¥5.00 from the previous fiscal year). Moreover, we have set (Millions of yen) (Millions of yen) (%) (Millions of yen) (Yen) 400,000 38,765 20,000 18,530 400 of a contracting company for a hydroponic culture facility that we had the framework for the repurchase of a maximum of 5,000,000 shares 336,517 331,094 332,885 344,083 342,422 40,000 20 17,224 34,562 34,111 15,704 16,309 30,605 31,144 14,731 300,000 30,000 15 15,000 300 planned through a subsidiary. (5.26 percent of total issued and outstanding shares) at a total cost of 11.5 10.4 9.9 Although we experienced a temporary lull in growth compared ¥32.5 billion in the fiscal year ending March 2009. In this way, we will 200,000 20,000 9.2 9.1 10 10,000 184.23 171.19 162.73 171.46 154.86 200

100,000 10,000 5 5,000 100 with the previous fiscal year, we proceeded according to the medium- apply the significant increase in free cash flow from the fiscal year end-

0 0 0 00term plan, and revenues and income exceeded our initial plan. ing March 2009 onward to stockholder returns. 20042005 2006 2007 2008 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 (Fiscal years ended March 31) (Fiscal years ended March 31) (Fiscal years ended March 31) In a severe environment of worsening consumer sentiment trig- We will steadily promote “Innovate OLC 2010” and continue to Operating income Operating margin Net income Net income per share (Left scale) (Right scale) (Left scale) (Right scale) gered by global financial uncertainty and increases in the price of crude earn the support of our stakeholders by deepening their trust and Total Assets / Net Assets ROA / ROE Interest-Bearing Debt / Equity Ratio oil, we succeeded in surpassing our initial plan, and we were also able understanding. (Millions of yen) (%) (Millions of yen) (%) 800,000 757,542 to prepare for growth in the fiscal year ending March 2009 and there- We humbly request your continued support. 718,866 699,772 6 300,000 294,320 70 654,425 660,225 5.1 266,945 4.5 4.3 235,626 after. Therefore, I believe we were able to make steady progress in car- July 2008 600,000 4.1 3.8 209,286 4 200,000 202,449 60 389,714 388,180388,181 55.0 rying out our medium-term plan. 400,000 373,866 375,947 385,001 2.8 2.6 Yoshiro Fukushima 2.3 2.3 2.0 57.1 59.0 51.2 2 100,000 50 Representative Director, President and COO 200,000 52.3 Achieving Earnings Growth and Greater Stockholder Value 0 0 00 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 April 2008 marked the 25th anniversary of the opening of Tokyo (As of March 31) (Fiscal years ended March 31) (As of March 31) Total assets Net assets ROA ROE Interest-bearing debt Equity ratio (Left scale) (Right scale) 4 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 5 Interview with Representative Director, President and COO Yoshiro Fukushima

Current Status

In this severe market environment, how do you evaluate the progress of your medium-term plan Q. “Innovate OLC 2010” during its first year?

Due to a decrease in theme park attendance and an increase in special costs, our A. results decreased compared with the previous fiscal year, but we got off to a steady start that surpassed our initial plan.

Revenues and income decreased in the fiscal year ended March 2008. This was due to a decrease in theme park atten- dance because it was the year following Tokyo DisneySea 5th Anniversary, when we achieved record high attendance, in addition to an increase in depreciation expenses following a tax code revision, and an increase in special costs for prepara- tion expenses for opening new facilities and expenses preceding Tokyo Disney Resort 25th Anniversary. However, we were able to surpass our initial plan. Revenues per guest increased compared with the previous fiscal year, with no apparent effect from the cooling of consumer sentiment. In addition, our plan moved forward steadily, with preparations for Tokyo Disney Resort 25th Anniversary and for the opening of Tokyo Disneyland Hotel and Cirque du Soleil Theatre Tokyo. Efforts to improve cost efficiency, mainly centered Yoshiro Fukushima on fixed costs, also moved forward according to the medium-term plan. Representative Director, President and COO

Issues The OLC Group’s Operating Environment What do you see as the issues affecting the OLC Group’s future growth? The market environment in the fiscal year ended March 2008 was severe. What is your forecast Q. Q. for the future? Reinforcing brand equity is essential for maintaining the support of all stakeholders. A. To achieve this end, I believe in the importance of further strengthening our business As values further diversify, and with the recent cooling of consumer sentiment, I base to generate the necessary income and cash flow. A. believe the environment will remain severe, with a clear distinction between winners and losers. As I have already mentioned, the OLC Group’s operating environment is growing more severe. In uncertain conditions, reinforcing brand equity is an issue in maintain- In our market environment over the past year, consumer sentiment has cooled since fall 2007, and consumers are ing the support of not only customers but all stakeholders, including employees and becoming more discriminating in their choices. The ability to meet consumer demand for high-value-added services is mak- stockholders. In order to reinforce brand equity, our primary focus must be on enhanc- ing clearer the polarization of winners and losers. I believe we must respond to this severe environment by continuing to ing the quality of Tokyo Disney Resort as a whole and further polishing that quality to further raise the brand equity that is the OLC Group’s great strength. create “spaces” that are considered incomparable and invaluable. The service industry of the future faces Japan’s structural problems of changes in customer segmentation and employ- We are also aware of the need to strengthen our business base to be able to ment conditions resulting from a low birthrate and aging society, as well as further diversification in customer values. generate steady income and cash flow in order to invest resources in reinforcing Changes in the OLC Group’s operating environment are forecast to be substantially greater than before. brand equity. On the other hand, despite the low birthrate and aging society, we see business opportunities developing. The trend toward greater concentration of the population in the Tokyo metropolitan area, where Tokyo Disney Resort is located, is expected to continue. In addition, the number of foreign visitors to Japan is increasing due to the Visit Japan Campaign led by the Ministry of Land, Infrastructure, Transport and Tourism to enhance Japan as a tourist destination.

6 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 7 An Interview with President Fukushima

Measures growth with efforts to “raise cost efficiency.” To “Establish the Foundation for New Growth,” we will formulate business policies for future growth with the aim of Q. How will the OLC Group address these issues? establishing a business by the fiscal year ending March 2011 that can continue on from Tokyo Disney Resort. Innovate OLC 2010 To “Increase the Value of the OLC Group,” we will follow a policy of further increasing our previous proportion of In order to reinforce brand equity, the OLC (Fiscal Year Ended March 2008 ~ Fiscal Year Ending March 2011) direct returns of profits to stockholders from cash flow. Together with this initiative, we will develop our human resources A. Group will steadily promote its medium-term Create moving experiences that “bring tears to guests’ eyes” and conduct CSR activities. plan,“Innovate OLC 2010,” to further enhance Fundamental Policies Further Strengthen the Core Business (Tokyo Disney Resort) quality while working for earnings growth. Please discuss the forecast of results for the fiscal year ending March 2009 and thereafter. Establish the Foundation for New Growth Q. “Innovate OLC 2010” sets forth the direction we must take to Increase the Value of the OLC Group We forecast net income will increase only slightly in the fiscal year ending March reinforce our brand equity. Our first and foremost task is steady A. 2009. However, we will aim for a significant increase in the fiscal year ending March progress in this area. Targets 2010 and net income at the ¥27.0 billion level in the fiscal year ending March 2011, Based on our policy to “Further Strengthen the Core Business,” first ■ Earningsg Growth which is a target of “Innovate OLC 2010.” of all we will increase the appeal of Tokyo Disney Resort, with Consolidated net income at ¥27.0 billion level in FY ending 3/11 “enhance quality” at the core of our efforts. We will work to improve Decrease in depreciation expenses (about ¥10.0 billion) Revenues for the fiscal year ending March 2009 are forecast to increase due to an increase in theme park attendance not only the tangible aspects of introducing the attractions and enter- FY Ending 3/11 Decrease in opening preparation expenses (about ¥3.0 billion) Net income spurred by our campaign for Tokyo Disney Resort 25th Anniversary, in addition to the opening of Tokyo Disneyland Hotel and tainments that make up the theme park’s appeal, but also intangible Income contribution from 2 new facilities* (about ¥2.5 billion) • 27.0 billion level Cirque du Soleil Theatre Tokyo. However, operating income is forecast to decrease due to the burden of special costs including aspects, particularly the hospitality of cast members. For this purpose, (¥ Billion) an increase in depreciation expenses following a tax code revision and preparation expenses for opening the two new facilities. we will create a fun, lively workplace where cast members can experi- 16.3 14.7 16.2 However, for the fiscal year ending March 2010 and thereafter, we forecast a significant increase in income due to fac- ence the joy of working. By doing so, we will simultaneously respond to * Tokyo Disneyland Hotel / tors including the absence of special costs, the contribution of the two new facilities to earnings (total revenues at the ¥20 the changes in the employment environment. Cirque du Soleil Theatre Tokyo 2007 2008 2009 2011 (Fiscal years to March 31) billion level and total operating income at the ¥2.5 billion level in the fiscal year ending March 2011), and a decrease in Through efforts to “clarify targets,” we will raise the number of depreciation expenses at Tokyo DisneySea. We will aim to reach net income at the ¥27.0 billion level in the fiscal year end- theme park guests in stages. In response to the changing population ■ Stockholder Returns ()(Dividends) ing March 2011, which is a target of “Innovate OLC 2010.” dynamics accompanying the declining birth rate and aging society, we Aim for a consolidated payout are working to provide new forms of enjoyment for the New Aging ratio of 35% or higher from FY ending 3/08 Please explain OLC’s basic policy on stockholder returns and capital policies. segment of adults aged 40 and older, mainly at Tokyo DisneySea, and Payout ratio: Q. 35% or higher we are already steadily increasing attendance. In addition, the num- Annual cash dividends ¥5 Up (¥100 level*) In addition to targeting a consolidated payout ratio of 35 percent or higher for ber of guests from overseas surpassed one million for the first time in per share ¥60 ¥65 A. dividends, we will carry out share repurchases as appropriate. the fiscal year ended March 2008. With the increase in visitors to ¥55 Japan from overseas and the scheduled expansion of Haneda and * Assumption: Consolidated net income The OLC Group has positioned stockholder returns as one of its most important management policies. In “Innovate OLC Narita airports in 2010, we see overseas guests as a segment that will at the ¥27.0 billion level 2007 2008 2009 2011 (Fiscal years to March 31) 2010,” we are targeting a consolidated payout ratio of 35 percent or higher from the fiscal year ended March 2008. For the grow substantially in the future, and we will make further efforts in past fiscal year, we paid cash dividends per share totaling ¥60.00 (an increase of ¥5.00 from the previous fiscal year). As a this area. In tandem with these measures, we will aim for earnings result, dividends increased for the seventh consecutive year. For the fis-

Adults (40+) cal year ending March 2009, we plan to pay total dividends per share ■ ■ Number of Foreign Tourists to Japan ■ Free Cash Flow* [Guideline figure] Theme Park Guests by Age Group Adults (18-39) 10 million of ¥65.00 (an increase of ¥5.00 from the previous fiscal year). Teens (12-17) by 2010 ¥30.0 Children (4-11) (Thousand people) Moreover, we have set the framework for the repurchase of a maxi- billion level (%) Start of “Visit Japan mum of 5,000,000 shares (5.26 percent of total issued and outstanding 23.3 10.7 13.7 15.6 15.2 15.3 15.4 16.2 17.0 10,000 Campaign” (¥ Billion) 8,347 shares) at a total cost of ¥32.5 billion. In this way, we will apply the sig- 7,334 6,728 57.6 56.0 53.4 53.0 52.0 52.2 52.0 51.8 6,138 nificant increase in free cash flow from the fiscal year ending 2009 Capital Expenditures 5,212 3/08 : ¥52.6 billion onward to stockholder returns. Through income growth and direct return →3/09 : ¥42.7 billion 4.4 5.6 12.5 12.2 12.6 13.1 13.0 12.5 11.8 11.3 of profits, we aim to achieve ROE in the upper 6 percent level in the fiscal 19.2 18.1 18.4 18.7 19.7 19.9 20.0 19.9 year ending March 2011, rising to 8 percent or higher soon thereafter. 2007 2008 2009 2011 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 2003 2004 2005 2006 2007 2010 (Fiscal years to March 31) Source: Japan National Tourist Organization *Free cash flow = Net income + Depreciation and amortization, aggregate – Capital expenditures

8 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 9 Feature Happiness Creates Value Providing Happiness by Raising the Level of Guest Satisfaction Increases Corporate Value

We must continue achieving a high level of guest satisfaction in order to maintain our unparalleled advantages. Guest satisfaction is based on an evaluation of the “experience value” they derive from their various experiences.This section introduces measures to enhance quality and thereby improve “experience value.”

■ Value of the Guest Experience Raising the Level of Guest Satisfaction the quality of intangibles. This quality is the understanding and ment in raising “experience value.” Raise the appreciation that remains in the heart of each guest from con- We accurately detect what our guests desire or expect in Enhance Level of Over 90 percent of theme park guests are repeaters, or tact with the hospitality of cast members and the bonds or con- order to provide services that, far from being perfunctory, com- Quality Guest Satisfaction guests who have visited before. Many repeaters visit several nections that guests form with cast members and the theme pletely meet or surpass their needs and expectations, thus rais- times a year. The key to maintaining and raising this surprising park. It lasts far beyond the moment, building in emotional value ing the “experience value.” This in turn achieves high guest sat- Future repeater rate is raising the level of guest satisfaction. over time. isfaction. The level of guest satisfaction is based on an evaluation of Non-visible value of Current the “experience value” that comes from a variety of experiences Pursuing Quality That Always Surpasses experience Continuing to Be Our Guests’ Choice (Dependent on within the theme parks. “Experience value” is the aggregate of Guest Expectations cast member hospitality, etc.) the facilities and service that are the “visible value of experience” Tokyo Disney Resort aims for the unending support of its Guest expectations rise with each visit. Continuing to pro- for guests, and the hospitality provided by cast members, which is guests by continuing to strengthen both the “visible value of vide “experience value” surpassing those expectations will lead the “non-visible value of experience.” A high level of guest satis- experience” and “non-visible value of experience.” In a changing to the next visit. market environment, consumers may view their choices with an Visible value of experience faction cannot be achieved when one of these is missing. The actual “experience value” first leads to satisfaction when it (Dependent on facilities, service, etc.) The “visible value of experience” is the quality of tangibles. ever sharper eye due to the worsening economy or diversifying surpasses the guest’s expectation level of the park. Conversely, it We have a total commitment to creating and providing spaces in needs. In order to remain consumers‘ one special choice, Tokyo leads to dissatisfaction when it falls below that level. which our guests can forget about everyday life and ways they Disney Resort will constantly continue to focus on and enhance Enhancing the Appeal of P. 12 The “non-visible value of experience,” particularly from the Tokyo Disney Resort can enjoy the theme parks. By doing so, we ensure that guests its quality. hospitality of cast members, is important in making that extra feel the functional value the moment they see these tangibles or The following are some specific measures to enhance our The Cast Members That Support P. 14 Tokyo Disney Resort effort that surpasses the expectation level. Continuing to make receive a service. quality. and provide this non-visible value of experience is a critical ele- The “non-visible value of experience,” on the other hand, is

10 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 11 Enhancing the Appeal of Tokyo Disney Resort Enhancing the Visible Value of Experience

Opening of Cirque du Soleil Theatre Tokyo provide guests with a new experience value from Tokyo Disney Resort. We will work to arouse new demand and increase visits ■ About Cirque du Soleil by members of guest segments that visit Tokyo Disney Resort Cirque du Soleil Theatre Tokyo will open on October 1, 2008, Opening of Tokyo Disneyland Hotel infrequently. Generating demand for dining or shopping after a giving additional appeal to Tokyo Disney Resort. theatre show will enliven the resort as a whole. Tokyo Disneyland Hotel will open on July 8, 2008 as the The name Cirque du Soleil means “circus of the sun.” Renowned Celebrating Tokyo Disney Resort 25th Anniversary Cirque du Soleil Theatre Tokyo is positioned next to Disney third Disney hotel. Located adjacent to the Disney Resort Line the world over as a top class entertainment group, Cirque du Soleil Ambassador Hotel. With a 2,170 seat capacity and over 380 We have continued to regularly raise the appeal of Tokyo station in a building facing Tokyo Disneyland, the hotel is deco- formed in Quebec, Canada in 1984 and has been seen by a total of shows each year, we will aim for annual attendance of 750 Disney Resort by introducing new attractions and entertainment, rated in a Victorian style similar to World Bazaar in order to more than 70 million people over the last 20 years. thousand. mainly in the two theme parks. blend in with the park for an unbroken Disney world from the The group performs both as a resident show in permanent OLC established the On April 15, 2008,Tokyo Disneyland celebrated 25 years since park to the hotel entrance. This allows guests to stay overnight exclusive theatres and as a touring show in large tents around Disney theme park brand in its grand opening, and Tokyo Disney Resort 25th Anniversary at Tokyo Disney Resort in the state of mind that comes from the the world. Japan and has come a long began. We will offer a variety of dreams and moving experiences enjoyment of Tokyo Disneyland. Currently Cirque du Soleil has five resident shows perform- way in its expansion. We will during each of its five stages during the year. At Tokyo Disneyland, The 705 guest rooms are the largest of the Disney hotels, ing in Las Vegas, Nevada and one in Orlando, Florida in the utilize this expertise for the we began a new daytime parade, “Jubilation!”. In July, we will with many four-guest rooms to accommodate families and United States, each of which enjoys high popularity. The troupe establishment of the new open the renovated “Enchanted Tiki Room” in Tokyo Disneyland groups comfortably. has previously toured Japan, but Cirque du Soleil Theatre Tokyo Cirque du Soleil brand, and and “Fortress Exploration” in Tokyo DisneySea. We will also carry Tokyo Disneyland Hotel boasts overwhelmingly high quality in will be its first resident show in Japan. raise the appeal of the entire out a variety of events throughout Tokyo Disney Resort. its tangible accommodations. Full of the Disney world view, it Cirque du Soleil Theatre Tokyo will present original, unique Tokyo Disney Resort by pro- In addition, the new attraction “MONSTERS, INC. ‘RIDE & provides the experience value of an extraordinary land of dreams. programs. viding a new experience The title “ZED” has been chosen for GO SEEK!’” is scheduled to open at Tokyo Disneyland in the fis- ■ Providing New Experience Value and Further value. Cirque du Soleil’s show. The trademarks ZED and Cirque du Soleil and Sun cal year ending March 2010. We will continue to introduce Raising the Appeal of Tokyo Disney Resort logo are owned by Cirque du Soleil and used under license. appealing attractions and entertainment in order to provide new The opening of Cirque du Soleil Theatre Tokyo is meant to Photos: Masayoshi Aomatsu value of experience. 12 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 13 The Cast Members That Support Tokyo Disney Resort tion put into it. We pass on 25 years of accumulated knowledge through the program Enhancing the Non-Visible Value The Importance of Cast Member Hospitality while reaffirming cast members’ enjoyment of work by having them share memories, of Experience The hospitality of cast members is extremely important in build- thus further raising hospitality. ing the “non-visible value of experience,” part of the “experience Other measures include awarding the “Spirit of Tokyo Disney Resort” to cast mem- value” supporting the quality of Tokyo Disney Resort. The bonds or bers voted for by peers for their high level of service. In the “Five Star Program,” we give connections that guests form with cast members and the theme praise and present a card to those seen practicing excellent service and hospitality. park through contact with this hospitality lead to greater customer These measures engender enjoyment in work through praise, and lead to a rise in hos- satisfaction. pitality toward guests. We will take advantage of Tokyo Disney Resort 25th Anniversary We have also started the “Area Service Project” to raise hospitality through cross- in the fiscal year ending March 2009 to spotlight the cast members division cast member gatherings to resolve issues and improve the workplace. We will who support Tokyo Disney Resort and take measures to maintain or continue to match the times with our efforts, without relying solely on the progress raise their hospitality. we made in the past.

Pride and Enjoyment in Work:The Source of Hospitality Acting as Hospitality Professionals

In order to continue evoking hospitality that surpasses expectations, Through these measures, we make an environment at Tokyo Disney Resort cast members need to enjoy and take pride in their work. Watching the where cast members naturally identify and feel the enjoyment of work for the smiles of guests that come from service full of hospitality broadens the purpose of maintaining and raising their hospitality.As a result, each cast mem- smiles of cast members as well. Smiles spread among the cast members, cre- ber carries on the essence of Tokyo Disney Resort’s 25-year history. Cast mem- ating a positive cycle that raises the hospitality level of the team as a whole. bers regard themselves as hospitality professionals, thinking and acting vol- If cast members only carry out their duties by the book, they will neither untarily while adjusting to a changing environment. This raises hospitality be able to provide the “non-visible value of experience,” nor to raise other ever higher while building the “non-visible value of experience.” value. In order to continue providing “experience value” that surpasses our guests’ expectations, we will nurture numerous cast members who can sense and consider what the guest desires at that particular time or place and act voluntarily out of hospitality. Message from the Director of the Theme Park Business Unit In April 2008, Tokyo Disney Resort celebrated its 25th anniversary. I firmly believe we have our guests Creating an Environment for Growth to thank for this success. We have added a variety of appeal to the park with attractions, entertainment and shows, and grown from a theme park to a theme resort by raising the value of the guest experience. To make an environment where cast members feel the enjoyment of work, in For over half of the 38 years since I joined the company in 1970, I have been involved with the theme addition to continuing the efforts of the 25 years since the opening of Tokyo park. I believe that the Disney theme park brand that originated in the United States has been able to take root and grow to this extent in Japan because the “hospitality” and “attentiveness” that are so Disneyland, we have started new measures. important to the Japanese are reflected and continue to be steadily refined in the hospitality of our cast First, in addition to numerous existing cast member education programs, we have Kiichi Sunayama Representative Director, Senior members. introduced the new “Reminding Program” on the occasion of Tokyo Disney Resort 25th Executive Officer Director of Theme Park Cast members will continue raising the level of their hospitality, as we welcome guests to have unfor- Anniversary. This program for all cast members aims to raise hospitality toward guests by Business Unit gettable experiences that make lasting memories. looking back on the 25 years since the opening of Tokyo Disneyland and reaffirming the emo-

14 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 15 Oriental Land’s Corporate Social Responsibility (CSR)

Theme Park Operations That Put Safety First Environmental Protection Activities The OLC Group contributes to society from various angles,

building a positive relationship through its business activi- Providing the Peace of Mind That Comes from Safety Dreams and Moving Experiences for the Next Generation ties and other activities that have a strong affinity with its “SCSE” — The Core Principles The OLC Group actively works toward harmony with the global businesses in order to achieve a sustainable society. Disney theme parks are operated on the principles of “SCSE” - environment. Various initiatives include establishing the OLC Group “S” is for Safety, “C” for Courtesy, “S” for Show, and “E” for Environmental Policy and the Environmental Protection Committee. Efficiency. Each and every cast member refers back to these princi- For the prevention of global warming, we implemented a large- OLC Group focuses its CSR activities on efforts to enhance “family ples to provide the highest level of service to our guests. scale upgrade of Tokyo Disneyland’s air conditioning system by Basic Policy values” and “learning opportunities.” “SCSE” lists the core principles in the order of priority, with installing more efficient equipment. We also worked to switch to Achieving a Sustainable Society For “family values,” we provide activities centered around the Safety taking precedence over all. fuels with lower environmental impact, including the use of com- The OLC Group has brought “happiness” to people under its theme park business that will strengthen family ties by providing pressed natural gas to power attractions, in addition to other efforts. business mission to “create happiness and contentment by offering the time and place for families to enjoy spending time together, To reduce waste, we are working to reduce the trash generated S afety 安全 wonderful dreams and moving experiences created with original, thereby promoting communication between grandparents, parents, by eliminating disposable paper towels, installing electrical hand imaginative ideas.” We will continue to be a company that people and children. C ourtesy 礼儀正し dryers, introducing non-disposable tableware and other measures. love and trust by not simply pursing profit but also fulfilling our role For “learning opportunities,” we offer programs to help people SCSE We recycle almost all table waste as a result of thorough trash sep- S how ショー as a corporate citizen that considers both the environment and soci- learn the joys of working, stimulate curiosity, develop creativity, and aration, and achieve 70 percent recycling of total waste at Tokyo ety, so that society will endure for generations to come. In order to nurture kindness toward others. For example, the Disney Academy E fficiency 効率 Disney Resort. achieve a sustainable society, the OLC Group promotes its own provides companies and schools with programs that teach the par- We also work actively to reduce water consumption. unique CSR by utilizing the special attributes of its businesses to ticipants about the spirit of hospitality. Approximately 60 percent of water used at the theme parks is recy- build a positive relationship with society, contributing from various The key to practicing these CSR activities is the initiative of each Enjoying the Theme Parks with Peace of Mind cled for toilet water, plant irrigation and other purposes. angles through its business activities and other activities that have and every employee of the OLC Group. We will continue to regard To ensure safety and quality management of attractions, the OLC Group has established the “Basic Policy for Attraction Safety.” a strong affinity with its businesses. employees as significant stakeholders, enhance the work environ- Social Contribution Activities ment and create job satisfaction in order to more strongly promote Under this policy, we conduct daily and regular inspections based on legal requirements and our internal “Maintenance Standard.” The Foundation for Remaining a Trusted Company CSR activities. In addition, we will promote CSR together by regu- A Heartfelt Bridge to Society Befitting the OLC Group CSR activities of the OLC Group form the foundation of trust larly incorporating it into the reevaluation of our business and in all To ensure the safety of parades and stage shows, the “Safety from its stakeholders. We practice CSR through attention to compli- administrative processes in order to fulfill our role as a corporate Management Guideline” has been established to strengthen safety We contribute to the local community by cooperating in a career ance and adherence to the law, daily consciousness of social regu- citizen. in design, construction, inspection, and maintenance. experience study program for elementary and junior-high school lations and corporate ethics, based on the belief that earning the In addition, during parades, more than 100 cast members are students in Urayasu City. In the OLC Group program, “We Make trust of all stakeholders and society achieves the mission and vision stationed along the parade route (spanning approximately 800 Happiness,” participants experience various jobs behind the scenes of the Group. As we focus on safety and quality control measures, meters) to ensure the safety of the guests. at Tokyo Disney Resort, learning that all of them are linked to the we are always aware of society, listening to its requests and to our For shopping and dining, we also aim for safety and high quality happiness of guests. guests’ opinions. in product development and safety inspections based on the Basic In addition, we work to foster the growth of the next generation Policy for Merchandise Safety and Quality and the OLC Group Food with our “Imagination Storybook” that helps children nurture their Promoting the Unique CSR Activities of the OLC Group Safety Policy, along with other various steps to provide safe and imagination and creativity, and carry out activities in a unique OLC Group way for their emotional development. CSR activities that take advantage of our strengths are those that “Disney Academy” secure products. reach out to people through the “heart.” The OLC Group is based We also implement welfare activities in which the Tokyo Disney on business operations that provide people with dreams, excitement, Resort Ambassadors and the Disney characters bring the “Disney joy and happiness. Taking these strengths into consideration, the Dreams” to those who are unable to visit Tokyo Disney Resort.

16 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 17 Corporate Governance

The OLC Group aims to enhance corporate governance in order to increase Compensation Paid to Directors and Corporate In addition, we set up the Compliance Committee, which is chaired by a designee of the president, to ensure the legality of the Company’s management transparency and fairness and raise the Group’s corporate value. Auditors and Audit Compensation management and promote a spirit of compliance. If the committee dis- In the fiscal year ended March 2008, compensation paid to direc- covers misconduct by an officer or employee or a serious violation of Basic Policy bodies that decide on important matters concerning business execution of tors and corporate auditors and compensation paid to independent law or the Company’s articles of incorporation, it conducts the neces- authority delegated by the Board of Directors, excluding items to be auditors (compensation for services prescribed in Article 2, Paragraph 1 sary investigations and reports its findings to management or to the The OLC Group is raising corporate value with “Innovate OLC 2010,” resolved by the Board. We established the Executive Committee to decide of the Certified Public Accountant Law of Japan and compensation for Executive Committee and the Board of Corporate Auditors. its medium-term plan for the four years ending March 2011. We consid- on matters related to overall Company management, and the Theme Park other services) was as follows. Moreover, we systematically and continuously conduct internal edu- er and then act on what we can do for customers and society, based on Committee to make decisions concerning the theme park business. cation and awareness efforts regarding compliance and monitor the our business mission of providing “dreams, excitement, joy and happi- ■ Compensation Paid to Directors and Corporate Auditors (Fiscal year ended March 2008) (Millions of yen) status of compliance in the Company. As part of these efforts, we have ness,” which is the origin of the OLC Group. Also, we will continue 2. Auditing and Supervision Recipients Amount set up an Employee Consultation Office as a channel for internal working to strengthen corporate governance, based on our understand- In the Corporate Auditor System adopted by the Company, the two Compensation paid to directors 13 408 reporting within the OLC Group. ing of the importance of raising management transparency and fairness, [Compensation paid to external directors included in above] [2] [10] standing corporate auditors attend meetings of the Board of Directors, achieving sustainable growth and development, and fulfilling our social Compensation paid to corporate auditors 4 64 Executive Committee and Theme Park Committee, as well as other [Compensation paid to external corporate auditors included in above] [3] [37] 2. Further Upgrading the Information Management responsibilities. Specifically, we are primarily engaged in the following System meetings and committees the corporate auditors deem important, Total 17 473 activities. where they state their opinions. Three of the four corporate auditors Notes:1. Employee wages are not paid to directors who work concurrently as employ- Information related to directors’ execution of their duties is properly First, the OLC Group is reinforcing internal controls in ways such as ees of the Company. stored and managed in accordance with laws and internal regulations are external auditors, a structure that brings in opinions from an objec- 2. The Company has abolished bonuses to directors and corporate officers, and creating a comprehensive compliance system, establishing a risk man- tive and independent standpoint to enable effective audits. To assist such bonuses are not included in compensation paid to directors. including the OLC Group Information Security Policy and Document agement system, and strengthening its information management system. the corporate auditors in their duties, we have appointed specialized ■ Audit Compensation Rules. An Information Security Management Committee chaired by the Second, the OLC Group is also reinforcing management oversight (Fiscal year ended March 2008) (Millions of yen) staff, and we promote timely reporting of necessary and pertinent Amount director in charge of the IT Promotion Division has been created to functions by enhancing the audit system with independent accounting information for audits with the formulation of the Policy for Reporting Compensation based on Article 2, Paragraph 1 of the Certified Public Accountant Law 40 oversee management of information. audits and internal audits. to Auditors, which stipulates what matters officers and employees Other compensation (including subsidiaries) 27 Third, the OLC Group is conducting active information disclosure to must report to corporate auditors, as well as the timing and method of Total 67 3. Strengthening Risk Management increase its management transparency. reporting. Note: The Company’s auditing contract with the independent auditors does not clearly We have established the OLC Group Risk Management Guidelines, By conducting honest management that emphasizes corporate ethics differentiate compensation for auditing as based on the Company Law or the In accordance with auditing policy and its basic audit plan, corpo- Securities and Exchange Law. Because the amounts cannot be practically differ- which set forth our basic risk management principles. through these measures, we aim to increase our corporate value and entiated, compensation, etc. for the period is listed in the total. rate auditors carry out activities including listening to reports from The Risk Assessment Committee, chaired by the director in charge deepen the high evaluation of our stockholders and other stakeholders. directors and employees and viewing important documents, while of the Corporate Management Planning Division, identifies, evaluates working to ensure the effectiveness of its audits by discussing the sta- and prioritizes risks that the OLC Group faces, based on which it estab- Improvement of the Internal Control System Measures to Strengthen Corporate Governance tus of deliberation at important meetings, audit results and other mat- lishes and manages the overall risk management cycle to formulate ters among the corporate auditors. The Company has clarified the cor- 1. Strengthening Operations to Ensure Compliance individual preventative and response measures. 1. Business Execution porate auditors’ role and work responsibilities by setting the Audit We have established the OLC Group Code of Compliance, which Moreover, we have an Emergency Control Center to serve as a Oriental Land (“the Company”) has introduced a Corporate Officer Standards for Corporate Auditors and the Regulations for the Board of outlines the rules for officers’ and employees’ compliance with ethics response unit in the event that risks materialize. System to strengthen overall control of Group management. The purpose Corporate Auditors as a means of establishing and maintaining good and laws, and Business Guidelines, which serve as rules of conduct of the Corporate Officer System is to more clearly define supervisory and corporate governance. regarding compliance. 4. Strengthening Decision Making, Authority and executive responsibilities in each of the OLC Group’s businesses, The Company has enhanced internal control with the establishment Responsibility strengthen the management supervisory functions of directors by shifting of an Audit Division to conduct internal audits on compliance with laws OLC Group Code of Compliance We have defined the administrative duties of each department and the focus of their roles to supervision, and accelerate decision making by and internal rules and efficient business execution. 1. Prioritize safety above all else. the Company’s ranking system in the Organizational Rules, and the promoting delegation of authority to corporate officers. The Audit Division, the standing corporate auditors and the inde- authority of each position and the chain of command in the Rules of Board of Directors meetings are held once a month in principle. All 2. Respect human rights and prevent discrimination and harassment. pendent auditors conduct cooperative auditing with three-party meet- Administrative Authority, in order to ensure directors’ efficient execu- corporate auditors attend the meetings, whether or not they hold stand- 3. Engage in fair and transparent transactions. ings and regular opportunities for the Audit Division to report audit tion of duties. ing positions. 4. Strictly control confidential information including personal information. results to the standing corporate auditors, as well as meetings that Further, we have established the Executive Committee and the In addition, we promote swift and accurate decision making through 5. Take a firm stance toward anti-social organizations. provide the opportunity to communicate and report as needed. Theme Park Committee to decide and report on key issues related to To ensure accurate accounting, we receive audits by KPMG AZSA & Co.

18 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 19 21 Oriental Land Annual Report 2008 Jun-ichir¯o Tanaka Jun-ichir¯o Executive Director (External) Senior Executive Advisor of Mitsui Fudosan Co., Ltd. 1951 Entered Mitsui Fudosan Co., Ltd. 1987 Executive Director of the Company Yumiko Takano Executive Director 1980 the Company Entered 2003 Director Executive Kyoichiro Uenishi Executive Director 1980 the Company Entered 2003 Director Executive Tsutomu Hanada Executive Director (External) President and Representative Director of Keisei Electric Railway Co., Ltd. 1966 Entered Keisei Electric Railway Co., Ltd. 2005 Executive Director of the Company Akio Nagaoka Vice President Representative Director, Executive 1974 Entered the Company 2005 Vice President Representative Director, Executive Kiichi Sunayama Representative Director 1970 the Company Entered 2007 Director Representative President and COO Yoshiro Fukushima Representative Director, President and COO 1969 the Company Entered 2005 Director, Representative Norio Irie Executive Director 1975 Entered the Company 2003 Executive Director Makoto Owada Executive Director 1974 Entered the Company 2001 Executive Director Shigeru Suzuki Executive Director 1980 Entered the Company 2003 Executive Director Yojiro Shiba Executive Director 2005 the Company Entered 2007 Director Executive Makoto Takakuwa Executive Director 1967 the Company Entered 1997 Director Executive Chairman and CEO Toshio Kagami Representative Director, Chairman and CEO 1972 the Company Entered 2005 Director, Representative Board of Directors,Board Officers Corporate and Auditors Corporate (As of June 27, 2008) (As of June 27, of Directors Board Cooperate Appoint/Dismiss Independent Auditors Internal Audits Corporate Governance Corporate Compliance Committee Internal Control Committee Export/Import Control Committee Environmental Protection Committee Information Security Management Committee Risk Assessment Committee Report Cooperate

Consult ← Recommend→ Audit Division Cooperate Policy Regarding Control of the Company Policy Regarding Control The OLC Group’s management policy is to raise corporate value by The OLC Group’s management long-term growth and This management policy is aimed at continued [Audits business execution of each division] continuing to be a company that is widely loved and familiar, deepening continuing to be a company of all its stakeholders, and maximizing the the trust and understanding resulting cash flow. Company will not cate- is not meant for pursuing short-term profits. The through the gorically reject the reform or vitalization of management obstruct an acquisition transfer of rights to control the Company, nor value or the common with the potential to further enhance corporate has no specific predeter- benefit of stockholders. The Company currently the Company believes it mined anti-hostile takeover measures. However, who may work to the is inappropriate for an individual or financial entity (including individuals or detriment of the Company’s corporate value without regard to the financial entities that attempt to manage making regarding Company’s management policies) to control decision In the event such an indi- the Company’s financial or operational policy. of Directors will con- vidual or financial entity should appear, the Board and implement counter- sider appropriate measures with outside experts measures in response to conditions. the Internal Control Committee, chaired by the president, to promote the Internal Control Committee, control system for financial reporting as set the building of an internal and Exchange Law. forth in the Financial Instruments Appoint/Dismiss Board of Corporate Auditors 4 Auditors including 3 External Auditors General Meeting of Stockholders Internal Audits [Decide and report on key issues other than matters decided by the Board of Directors] Executive Committee/ Theme Park Committee Audit Instruct /Report (As of June 27, 2008) Audit Transfer of authority Transfer Deliberation on issues Appoint/Dismiss Representative Directors Instruct Instruct Business divisions [Execution of business] Board of Directors Corporate Officers (20) /Administrative divisions Appoint/Dismiss Supervise

13 Directors including 2 External Directors

To ensure the reliability of financial reports, we have established To ensure the reliability of financial reports, We have also set Audit Standards for Corporate Auditors, which pro- We have also set Audit Standards for Corporate We have introduced the Corporate Officer System to more clearly We have introduced the Appoint/Dismiss Supervise vides standards and action guidelines for corporate auditors to follow in vides standards and action guidelines for corporate report to the Board of conducting their audits. The corporate auditors that violates the law Directors if they discover any activity by a director promote timely reporting or the articles of incorporation. In addition, we with the formulation of necessary and pertinent information for audits stipulates what matters of the Policy for Reporting to Auditors, which auditors, as well as the officers and employees must report to corporate we have appointed spe- timing and method of reporting. Additionally, in their duties, and cialized staff in order to assist the corporate auditors an internal audit division we also have an Audit Division that serves as independent from business execution divisions. 6. Ensuring the Reliability of Financial Reports 5. Further Upgrading the Supervisory System define supervisory and executive responsibilities in each of the OLC define supervisory and organizations, to strengthen the management Group’s businesses and management by shifting the focus of directors’ supervisory functions of to accelerate decision making by promoting roles to supervision, and to corporate officers. delegation of authority management of the Company, other than matters decided by the management of the Company, to accelerate decision making. Board of Directors, in order Corporate Governance Structure Oriental Land Annual Report 2008 20 Board of Directors, Corporate Auditors and Corporate Officers The OLC Group at a Glance

Corporate Auditors Theme Park Segment Fumio Tsuchiya Hiroshi Otsuka Percentage of Segment Revenues / Operating Income Theme Park Segment Standing Corporate Auditor Corporate Auditor (External) Total Revenues (Millions of yen) (Millions of yen) Despite an increase in revenues per guest, (Fiscal year ended 1979 Entered the Company Chairman of Keisei Electric Railway Co., Ltd. March 31, 2008) 300,000 276,282 289,149 286,842 45,000 attendance declined because it was the 2005 Corporate Auditor of the Company 1958 Entered Keisei Electric Railway Co., Ltd. year following Tokyo DisneySea 5th 1996 Corporate Auditor of the Company 31,497 200,000 26,294 28,198 30,000 Anniversary, and revenues decreased. 2004 Chairman of Keisei Electric Railway Co., Ltd. Operating income decreased due to an increase in depreciation expenses follow- Isao Iizuka Akiyasu Nakano 83.8% 100,000 15,000 ing a tax code revision and an increase in Standing Corporate Auditor (External) Corporate Auditor (External) expenses, including expenses preceding 00 2005 Corporate Auditor of the Company 1991 Licensed attorney at law 2006 2007 2008 Tokyo Disney Resort 25th Anniversary. Entered Marunouchi Sogo Law Office (Fiscal years ended March 31) “Tokyo Disneyland ‘Wet & Wild Pirate Night’” Revenues (Left scale) Operating income (Right scale) 2008 Corporate Auditor of the Company Commercial Facilities Segment Percentage of Segment Revenues / Operating Income Commercial Facilities Segment Total Revenues (Millions of yen) (Millions of yen) Revenues and operating income increased Message from the Corporate Auditors (Fiscal year ended March 31, 2008) 30,000 4,500 due to the full renovation of Disney The standing corporate auditors, together with full-time audit staff, com- lem areas and improvements in each other’s audits. Ambassador Hotel carried out during the 22,765 23,177 23,280 municate with the relevant parties in the Group by holding interviews with Oriental Land has established the Policy for Reporting to Auditors to previous fiscal year and other factors. 20,000 3,000 managers at the parent company and subsidiaries. In addition, we hold ensure that auditors receive the necessary information in a timely and appro- % 1,989 meetings with senior management as needed to report on the content of the priate manner. This policy stipulates what information must be reported to 6.8 10,000 1,036 1,151 1,500 interviews and offer suggestions. We also work to gain an understanding of corporate auditors, as well as when and by whom it is to be reported. We actual conditions by performing on-site inspections. continue to make functional improvements to this system. 00 2006 2007 2008 We attend all key meetings, including meetings of the Board of Directors, We are committed to fulfilling our responsibilities so that the OLC Group (Fiscal years ended March 31) the Executive Committee and the Compliance Committee, and make state- can continue to offer its guests “dreams, moving experiences, enjoyment “Disney Ambassador Hotel” Revenues (Left scale) Operating income (Right scale) ments as necessary. and contentment.” We meet regularly with the independent auditor and internal auditors to Fumio Tsuchiya Retail Business Segment Standing Corporate Auditor share audit policies and audit plans, as well as exchange opinions on prob- Percentage of Segment Revenues / Operating Income (Loss) Retail Business Segment Total Revenues (Millions of yen) (Millions of yen) Revenues decreased, with a continuing (Fiscal year ended March 31, 2008) 30,000 3,000 decline in the number of customers in a Corporate Officers 21,466 17,858 16,904 changing environment of worsening con- 15,000 1,500 sumer sentiment. However, operating loss President Executive Officers 931 Yumiko Takano improved as a result of cost structure Yoshiro Fukushima Takeshi Okamura 4.9% Representative Director and Executive Vice President 0 0 reforms that have been ongoing since the In charge of Special Assignment of Milial Resort Hotels Co., Ltd. (301) previous fiscal year. Executive Vice President Makoto Takakuwa Kyoichiro Uenishi (1,019) -1,500 Akio Nagaoka Director of Engineering Division Director of Corporate Strategy Planning Division; 2006 2007 2008 (Fiscal years ended March 31) In charge of Finance/Accounting Department, Yasushi Tamaru in charge of Publicity Department IT Promotion Department, Food Safety Control Department Revenues (Left scale) Operating income (loss) (Right scale) Director of Affiliates Business Unit; in charge of “Disney Store Tokyo Disney Resort branch” and Theatrical Business Department Yoritoshi Kikuchi Business Promotion Department and Business Solution Deputy Director of Engineering Division Department Katsuhisa Udagawa Other Business Segment Senior Executive Officers Norio Irie Representative Director and President of Other Business Segment Kiichi Sunayama Director of Merchandise Division Percentage of Segment Revenues / Operating Income E Production Co., Ltd. Total Revenues Director of Theme Park Business Unit; in charge of (Millions of yen) (Millions of yen) Revenues continued to increase from the Kenjiro Mizushima (Fiscal year ended Theme Park Business Supervision Department, Resort Officers March 31, 2008) 15,000 15,396 2,500 previous fiscal year due to a fare revision Creation Department, Casting Department, Cast Development Director of Food Division 13,899 2,323 Department and NEP Project Promotion Department 12,372 of Disney Resort Line implemented in Makoto Owada Hirofumi Kohnobe In charge of Internal Auditing Department; 1,654 April 2007 and increases in movie-related Yojiro Shiba Executive Managing Director of Milial Resort Hotels Co., Ltd. Director of Internal Auditing Department 1,174 1,250 revenues and revenues from food and Director of Marketing Division % 7,500 Kenji Sato Etsuko Nagashima 4.5 beverage sales. However, preparation Director of Operations Division; Director of Entertainment Division expenses before the opening of two new in charge of CS Enhancement Department George Yasuoka facilities led to a decrease in operating 0 0 Shigeru Suzuki Director of NEP Project Promotion Department 2006 2007 2008 (Fiscal years ended March 31) income. In charge of General Affairs Department and Akiyoshi Yokota Revenues (Left scale) Operating income (Right scale) Human Resources Department “Disney Resort Line” Director of Finance/Accounting Department

22 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 23 Others 9.8% Real Estate Review of Commercial 13.7% Consolidated Facilities Operations Breakdown Segment of Revenues

“Harborside Christmas” Directly Hotel 59.8% Managed Stores 16.7% “Disney’s Halloween” “IKSPIARI” “Disney Ambassador Hotel” Theme Park Hotel 5.3% Others 0.2% • Disney Ambassador Hotel In addition to conducting events linked to special events at Segment Food and Segment Overview Beverages Tokyo Disneyland, we carried out a full renovation of the hotel in the Breakdown • IKSPIARI 18.2% previous fiscal year. As a result, the occupancy rate was in the lower of Revenues In addition to holding seasonal events unique to IKSPIARI such 90 percent range. as “IKSPIARI Halloween” and “PIARI Christmas,” we opened new

stores and carried out store renovations. Fiscal years ended March 31 2008 2007 Merchandise Attractions and Shows Approximately 31.8% 44.5% Occupancy rate 90-95% 90% Average revenues Mid-¥40,000 Mid-¥40,000 per guest room range range

“Pirates of the Caribbean” Retail “Tower of Terror” Business a decrease of 1.5 percent compared with the previous fiscal year, Segment “Disney Store Segment Overview because it was the year following Tokyo DisneySea 5th Anniversary. Funabashi LaLaport branch” However, revenues per guest were ¥9,370 (up 0.7 percent) due to an • Tokyo Disneyland/Tokyo DisneySea Segment Overview increase in ticket receipts following a ticket price revision in At Tokyo Disneyland, we held numerous programs throughout September 2006 and an increase in revenues from food and beverage • The Disney Store Japan the year, including the opening of the renovated “Pirates of the sales. At the Disney Store, in addition to offering items commemorating the 15th anniversary of its Caribbean” attraction along with water programs, and the popular opening and tie-in merchandise coinciding with the release of a Disney movie, we enhanced member- annual events “Disney’s Halloween” and “Christmas Fantasy,” as ship campaigns for “Fantamiliar,” our loyal customer program, to promote purchasing. However, rev- well as the final performance of “Cinderellabration: Lights of • Tokyo DisneySea Hotel MiraCosta enues for the year decreased due to a changing environment of worsening consumer sentiment. Romance.” The hotel implemented programs linked with Tokyo DisneySea On the other hand, ongoing cost structure reforms led to decreases in store rent, distribution At Tokyo DisneySea, in addition to the new “Tower of Terror” special events. The occupancy rate during the fiscal year ended March expenses, head office rent, personnel expenses and other expenses. In addition, we closed two unprof- attraction, which continued to be popular, we held various special 2008 was around 90 percent, however, due to a full renovation of itable stores and improved store earnings structure. As a result, operating loss improved. events including “Harborside Christmas.” guest rooms and other areas carried out from January to March Total attendance at the two theme parks was 25,424 thousand, 2008. Others Hotel Fiscal years ended March 31 2008 2007 Percent change Fiscal years ended March 31 2008 2007 38.0% 27.3% “Disney Resort Line” Theme park attendance Approximately (Thousands of guests) 25,424 25,816 (1.5)% Occupancy rate 95-100% Other 90% Breakdown 9,309 0.7% Revenues per guest (Yen) 9,370 Average revenues Approximately Approximately Business of Revenues per guest room ¥50,000 ¥50,000 Employee Ticket receipts (Yen) 4,226 4,151 1.8% • Disney Resort Line Segment Cafeterias Merchandise (Yen) 3,096 3,144 (1.5)% 15.1% Revenues increased due to a fare Monorail revision implemented in April 2007. Food and beverages (Yen) 2,048 2,014 1.7% 19.6% • Other Segment Overview While revenues increased, including movie-related revenues and • Palm & Fountain Terrace Hotel Revenues per Guest: Average Length of Visit: Breakdown of Guests by Age: Breakdown of Guests by Region: revenues from food and beverage sales, operating income decreased We worked to expand sales channels through various measures due to an increase in preparation expenses before the opening of 40 years old including aggressive PR activities and sales of original packages. As a ¥ 9,370 8.4 hours 68.8% and over 95.8% from Japan Tokyo Disneyland Hotel and Cirque du Soleil Theatre Tokyo and 17.0% adults Other Regions in Japan result, the occupancy rate was in the lower 80 percent range, Food and （Hours） 4 to 11 years old movie-related costs. Beverages 9.0 (over18) % 19.9% 28.7 the same as the previous fiscal year. ¥2,048 8.5 8.5 8.4 8.4 8.4 8.5 12 to 17 Overseas 4.2% Total years old Fiscal years ended March 31 2008 2007 ¥9,370 8.0 Tokyo 11.3% Metropolitan Area Occupancy rate 80-85% 0 67.1% 80-85% Merchandise Ticket 20042005 2006 2007 2008 “Palm & Fountain Terrace Hotel” ¥3,096 Receipts （Fiscal years ended March 31） 18 to 39 Average revenues Approximately Approximately ¥4,226 years old per guest room ¥20,000 ¥20,000 51.8%

24 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 25 Forecast for the Fiscal Year Ending March 2009

The OLC Group will change its business segments as of the fiscal year ending March 2009 in line Theme Park Segment with strengthening the management structure of each segment. For Tokyo Disney Resort 25th Anniversary, we will offer a variety of dreams and moving experiences during each of its five stages during the year. At Tokyo Disneyland, Content of New Segments (Main Facilities) we began a new daytime parade, “Jubilation!”. In July, we will renovate “The

● Tokyo Disneyland Enchanted Tiki Room” in Tokyo Disneyland and “Fortress Exploration” in Tokyo Theme Park Segment Theme Park Segment ● 東京ディズニーランド ● 東京ディズニーシー ● Tokyo DisneySea DisneySea. As a result, we forecast that total attendance at the two theme parks will

● Tokyo Disneyland Hotel set a new record high of 25,800 thousand (an increase of 1.5 percent compared with Commercial Facilities ● Tokyo DisneySea Hotel MiraCosta the previous fiscal year), and project revenues per guest of ¥9,380 (up 0.1 percent) at

Hotel Business Segment ● Segment Disney Ambassador Hotel the theme parks. ● Palm & Fountain Terrace Hotel We will conduct Tokyo Operating income is forecast to decrease because of factors including an increase Disney Resort 25th in depreciation expenses following a tax code revision in the fiscal year ending March ▼ ● Anniversary Retail Business Segment Retail Business Segment The Disney Store 2009 (approximately ¥1.5 billion). throughout the year. ● IKSPIARI “Jubilation!” Other Business Segment Other Business Segment ● Cirque du Soleil Theatre Tokyo ● Disney Resort Line Hotel Business Segment We forecast an increase in revenues as a result of holding the grand opening of Red: Reclassified facilities Tokyo Disneyland Hotel, the largest of the Disney hotels, on July 8, 2008. Main Points of the Segment Changes ② Reclassification of Subsidiaries and Affiliates Operating income for the Hotel Business Segment is forecast to decrease due to ① Establishment of the Hotel Business Segment The OLC Group reclassified subsidiaries and affiliates among seg- preparation expenses before the opening of Tokyo Disneyland Hotel (approximately The newly established Hotel Business Segment will encompass all ments in consideration of management based on their respective future ¥2.0 billion). However, excluding preparation costs before opening, Tokyo Disneyland hotels in the Group, including Tokyo Disneyland Hotel, which is due to orientation and current state of revenues. As a result, seven companies Tokyo Disneyland Hotel is expected to be profitable from its first year of operation. open. The Commercial Facilities Segment will be abolished due to its related to the operation of theme parks, in addition to Oriental Land Co., Hotel will open. Ltd., will be included in the Theme Park Segment, and the number of resulting diminished size. IKSPIARI will be included in the Other Business “Tokyo Disneyland Hotel” Segment subsidiaries and affiliates included in the Other Business Segment will decrease. Retail Business Segment At the Disney Store, we will aim to increase the number of customers by creating new sales outlets that bring together products under unifying themes. In addition, we will offer products to a greater number of guests through sales promotions that utilize Revenues are forecast to increase due to the opening of the two new facilities and an increase in theme park the new sales channel of the Disney Store original online shopping website. We forecast attendance. Although operating income will decrease due to special costs such as depreciation expenses fol- We will aim for the total number of stores as of March 31, 2009 will increase by three after closing unprofitable stores and opening new stores. lowing a tax code revision and preparation expenses before opening, we forecast an increase in net income. profitability by continuing to imple- In addition, we will aim for profitability by improving the cost of merchandise ratio ment improvement and the SG&A expense ratio. We have targeted an operating margin of 4 percent in ● Forecast for the Fiscal Year Ending March 2009 measures. the fiscal year ending March 2011. (Millions of yen) Forecast for the fiscal Results for the fiscal “STITCH‘S Ohana Village” Change from previous period (%) year ending March 31, 2009 year ended March 31, 2008 Revenues ¥364,240 ¥342,422 6.4% Other Business Segment We forecast an increase in revenues as a result of the opening of Cirque du Soleil Theme Park Segment 278,350 272,854 2.0 Theatre Tokyo on October 1, 2008. However, we forecast an operating loss due to fac- Hotel Business Segment 43,600 33,182 31.4 tors including expenses to prepare for the opening (approximately ¥1.0 billion). Retail Business Segment 17,630 16,904 4.3 At IKSPIARI, following a revision to social contribution operations, we will termi- Other Business Segment 24,660 19,482 26.6 nate operations at Camp Nepos. In addition to improving operating loss through this Operating Income (Operating Loss) ¥ 28,400 ¥ 31,144 (8.8)% Cirque du Soleil Theatre Tokyo measure, we will work to further improve the overall profit structure of our commercial Theme Park Segment 25,150 26,368 (4.6) will open. facilities. Hotel Business Segment 4,560 5,956 (23.4) Retail Business Segment “Cirque du Soleil” 40 (301) — Note: Tokyo Disneyland Hotel and Palm & Fountain Terrace Hotel, previously part of the Other Business Segment, have been transferred Other Business Segment (1,690) (685) — to the Hotel Business Segment, and seven subsidiaries and affiliates related to the operation of theme parks, which were previously Elimination and Corporate 340 (194) — part of the Other Business Segment, have been transferred to the Theme Park Segment. IKSPIARI was previously included in the Ordinary Income (3.0)% Commercial Facilities Segment due to its integrated development with Disney Ambassador Hotel as a high-quality facility befitting ¥ 26,680 ¥ 27,511 the entrance of Tokyo Disney Resort and its contribution to overall profitability. Following changes to business segments, Disney Net Income ¥ 16,220 ¥ 14,731 10.1% Ambassador Hotel will be included in the Hotel Business Segment and IKSPIARI will be included in the Other Business Segment. In Note: Results for the fiscal year ended March 31, 2008 have been reclassified to reflect the change in segments. addition, due to the inclusion of preparation expenses before the opening of Cirque du Soleil Theatre Tokyo in October 2008, the Other Business Segment will incur an operating loss. 26 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 27 Six-Year Summary Management’s Discussion and Analysis of Operations

Oriental Land Co., Ltd. and Consolidated Subsidiaries

Millions of yen Thousands of U.S. dollars1 The OLC Group consists of Oriental Land Co., Ltd., 20 consolidated Fiscal years ended March 31 2008 2007 2006 2005 2004 2003 2008 subsidiaries, 4 affiliated companies that are accounted for by the equity FOR THE YEAR: method, and 2 other affiliates. Its main businesses include managing Revenues ¥ 342,422 ¥ 344,083 ¥ 332,885 ¥ 331,094 ¥ 336,517 ¥ 331,753 $3,417,726 and operating theme parks, hotels and commercial facilities. Operating income 31,144 34,111 30,605 34,562 38,765 38,029 310,849 Income before income taxes 25,475 28,863 26,448 30,447 33,458 33,767 254,267 Income taxes 10,739 12,546 10,738 13,222 14,913 14,826 107,186 Consolidated Results Net income 14,731 16,309 15,704 17,224 18,530 18,932 147,031 In the fiscal year ended March 31, 2008, the Japanese economy was solid at the beginning of Capital expenditures2 52,691 54,807 43,129 46,855 29,277 14,848 525,911 the fiscal year. However, unstable conditions continued thereafter, including the impact of global Depreciation and amortization, aggregate 43,623 42,951 43,374 44,555 45,982 47,935 435,403 financial uncertainty triggered by the subprime mortgage crisis in the United States and increases in Net cash provided by operating activities 57,718 66,504 59,170 59,915 61,213 84,952 576,085 the price of crude oil. The range of services in the leisure industry expanded, despite the severe envi- ronment for consumer sentiment. Sensory and experiential leisure facilities and games were well AT YEAR-END: received due to high interest in lifestyles in which people enjoy leisure time and especially the Total assets ¥ 757,542 ¥ 699,772 ¥ 718,866 ¥ 660,225 ¥ 654,425 ¥ 691,883 $7,561,054 expansion of needs for study and the enjoyment of connecting with others through leisure. Theme parks, resorts and In these conditions, the OLC Group held various events throughout the year and carried out new other property 531,479 526,217 518,936 520,721 518,400 531,710 5,304,711 initiatives to respond to the diversifying values of its guests in the core Theme Park Segment. As a Long-term debt 294,320 235,626 266,945 202,449 209,286 265,922 2,937,619 Net assets3 388,181 385,001 375,947 389,714 373,866 355,002 3,874,448 result, attendance was essentially in line with our forecast, and revenues per guest increased com- pared with the previous fiscal year in both the first and second halves, with no apparent effect from Number of shares issued (thousands) 95,123 100,123 100,123 100,123 100,123 100,123 worsening consumer sentiment. Number of employees 3,896 3,750 3,676 3,695 3,715 3,731 However, we recorded special costs from an increase in depreciation expenses following a tax Revenues code revision enacted in the year ended March 31, 2008 that involved the elimination of residual (Millions of yen) Yen U.S. dollars1 value and accelerated depreciation, and preparation expenses before opening two new facilities. 400,000 PER SHARE DATA: 332,885 344,083 342,422 As a result, revenues decreased by 0.5 percent compared with the previous fiscal year to Net income ¥ 154.86 ¥ 171.46 ¥ 162.73 ¥ 171.19 ¥ 184.23 ¥ 188.24 $ 1.55 300,000 ¥342,422 million, operating income decreased 8.7 percent to ¥31,144 million, and net income Net assets 4,079.44 4,046.03 3,950.49 3,890.51 3,732.22 3,543.92 40.72 200,000 decreased 9.7 percent to ¥14,731 million. Cash dividends 60.00 55.00 45.00 35.00 29.00 24.00 0.60 100,000

Percent Revenues and Income 0 2006 2007 2008 RATIOS: (Fiscal years ended March 31)

4 Revenues Return on sales 4.3% 4.7% 4.7% 5.2% 5.5% 5.7% 5 A decrease in attendance in the Theme Park Segment resulted in a 0.5 percent decrease in rev- Return on assets (ROA) 2.0 2.3 2.3 2.6 2.8 2.7 Operating Income / Return on equity (ROE)6 3.8 4.3 4.1 4.5 5.1 5.5 enues compared with the previous fiscal year to ¥342,422 million. In the Theme Park Segment, Operating Margin (Millions of yen) (%) Equity ratio 51.2 55.0 52.3 59.0 57.1 51.3 despite an increase in revenues per guest, attendance declined because it was the year following 40,000 20 Notes: 1. The U.S. dollar amounts are provided for convenience only and have been converted at the rate of ¥100.19 to $1, the approximate rate of exchange in effect at March 31, 2008. Tokyo DisneySea 5th Anniversary. Although revenues increased in the Other Business Segment due 34,111 2. Capital expenditures includes tangible and intangible assets. 30,605 31,144 3. Net assets as of March 31, 2006 and previous fiscal years has been restated in accordance with a change in accounting standards. to a fare revision on the Disney Resort Line, Retail Business Segment revenues decreased. 30,000 15 4. Return on sales = Net income / Revenues 9.2 9.9 9.1 5. Return on assets = Net income / Total assets 20,000 10 6. Return on equity = Net income / Owners’ equity Operating Income 10,000 5 Operating income decreased 8.7 percent compared with the previous fiscal year to ¥31,144 mil- 0 0 lion. Primary factors include the decrease in revenues, an increase in depreciation expenses in the 2006 2007 2008 (Fiscal years ended March 31) Theme Park Segment following a tax code revision, and an increase in expenses including expenses Operating income (Left scale) preceding Tokyo Disney Resort 25th Anniversary and preparation expenses before opening two new Operating margin (Right scale)

28 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 29 Management‘s Discussion and Analysis of Operations

facilities. As a result, the operating margin decreased to 9.1 percent from 9.9 percent for the previ- Liquidity and Financial Condition ous fiscal year. Please see pages 23 through 25 for detailed segment information. Financial Strategy The OLC Group generates cash flow primarily through its day-to-day operating activities. One of Other Income (Expenses) and Income before Income Taxes the objectives of the “Innovate OLC 2010” medium-term plan is increased free cash flow, which the Net other expenses totaled ¥5,669 million, compared with net other expenses of ¥5,248 million Net Income / OLC Group will allocate to direct stockholder returns. We will also allocate free cash flow to reduc- for the previous fiscal year. Interest and dividend income increased. However, the decrease was the Return on Equity (ROE) ing interest-bearing debt to secure available capital capacity for investment for new growth and result of increased expenses for the issuance of bonds, in addition to one-time losses including an (Millions of yen) (%) business development. impairment loss following the decision to terminate operations at Camp Nepos, and a loss on 20,000 8 16,309 In addition, efforts to manage liquidity include credit facilities with leading domestic and inter- 15,704 14,731 doubtful receivables and an impairment loss due to the bankruptcy of a contracting company for a 15,000 6 national financial institutions to ensure low-cost access to liquidity when dealing with risk. Please hydroponic culture facility. 4.1 4.3 3.8 10,000 4 see page 33 for a detailed explanation of the business risks to which the OLC Group is subject. As a result of the above, income before income taxes decreased 11.7 percent compared with 5,000 2 As of March 31, 2008, cash and cash equivalents increased ¥51,024 million compared with the the previous fiscal year to ¥25,475 million. end of the previous fiscal year to ¥97,902 million due to an increase in proceeds from long-term 0 0 2006 2007 2008 Net Income (Fiscal years ended March 31) debt and the issuance of bonds, despite a decrease in cash flow from operating activities. Net income (Left scale) Income taxes net of deferrals decreased 14.4 percent compared with the previous fiscal year to ROE (Right scale) Cash Flows Cash Flows from Operating Activities, ¥10,739 million, and net income decreased 9.7 percent to ¥14,731 million. Investing Activities & Net cash provided by operating activities decreased ¥8,786 million compared with the end of Financing Activities the previous fiscal year to ¥57,718 million. Factors in the decrease included a decrease in income (Millions of yen) Basic Policy on Distribution of Profit and Dividends 100,000 before income taxes and an increase in income taxes paid. 66,504 The OLC Group recognizes that returning profits to its stockholders is one of its most important 59,170 57,718 52,874 50,000 Net cash used in investing activities decreased ¥8,344 million compared with the end of the 30,158 management policies. In “Innovate OLC 2010,” the medium-term plan formulated last year for the previous fiscal year to ¥59,575 million. Factors included the postponement of redemption of the first period from April 2007 through March 2011, we have stated a policy of working for continuous 0 series of unsecured bonds (¥100,000 million) until April 2008, and an increase in proceeds from stockholder returns, with a target consolidated payout ratio of 35 percent or higher from the fiscal -50,000 (36,039) maturity of marketable securities and from sales of securities. year ending March 2008. In addition, we will consider stock repurchases. (63,588) (67,919) (59,575) Net cash provided by financing activities was ¥52,874 million. In the previous fiscal year, net -100,000 With this policy in mind, we set the year-end dividend for the fiscal year ended March 2008 at 2006 2007 2008 (Fiscal years ended March 31) cash used in financing activities was ¥36,039 million. In addition to the absence of expenditures for ¥30.00 per share. Combined with the interim dividend, this brought total cash dividends for the fis- Cash flows from operating activities the redemption of bonds incurred in the previous fiscal year, factors in the change included an Cash flows from investing activities cal year to ¥60.00 per share, an increase of ¥5.00 from the fiscal year ended March 2007. Cash flows from financing activities increase in proceeds from long-term debt, including the issuance of bonds. For the fiscal year ending March 2009, we will pay total dividends of ¥65.00 per share, an increase of ¥5.00 from the fiscal year ended March 2008. In addition, we will implement a share repurchase between May 2008 and March 2009 of 5,000,000 shares, which is 5.26 percent of total Capital Expenditures and Depreciation and Amortization Capital Expenditures / Depreciation and Amortization Capital expenditures decreased 3.9 percent compared with the previous fiscal year to ¥52,691 issued and outstanding shares. (Millions of yen) Dividends per Share (Yen) million, despite the construction of new attractions and large-scale renovations, and the construc- 60,000 54,807 70 65.00 52,691 60.00 tion of Tokyo Disneyland Hotel and Cirque du Soleil Theatre Tokyo, both of which are scheduled to 50,000 60 55.00 43,129 43,374 42,951 43,623 open in the fiscal year ending March 2009. The OLC Group forecasts capital expenditures will 40,000 50 45.00 35.00 30,000 40 35.00 30.00 30.00 decrease by 19.0 percent in the fiscal year ending March 2009 to ¥42,700 million due to a decrease 20,000 29.00 25.00 30 24.00 in large-scale renovations and construction expenses for new facilities. 20.00 10,000 15.00 20 12.00 Depreciation and amortization increased 1.6 percent compared with the previous fiscal year to 20.00 25.00 30.00 30.00 0 10 15.00 2006 2007 2008 12.00 14.00 ¥43,623 million. In the fiscal year ending March 2009, a tax code revision and the opening of Tokyo (Fiscal years ended March 31) 0 2003 2004 2005 2006 2007 2008 2009 (Estimate) Capital expenditures (Fiscal years ended/ending March 31) Disneyland Hotel and Cirque du Soleil Theatre Tokyo will cause depreciation expenses to rise. The Depreciation and amortization Interim Year-end OLC Group therefore forecasts that depreciation and amortization will increase 14.4 percent to

30 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 31 Management‘s Discussion and Analysis of Operations

¥49,900 million in the fiscal year ending March 2009. In the fiscal year ending March 2010, depre- Business Risks ciation and amortization is forecast to be at the ¥45.0 billion level, as depreciation expenses associ- Primary issues that could exert a material effect on the results, financial position, stock price ated with the initial investment for Tokyo DisneySea will decrease significantly. and other aspects of the OLC Group are as follows.

Total Assets / Weather Assets, Liabilities and Net Assets Return on Assets (ROA) (Millions of yen) (%) In the Theme Park Segment, the OLC Group‘s core business, the number of guests that visit the Assets 800,000 718,866 699,772 757,542 4 theme parks is easily influenced by weather conditions such as climate and temperature. Total assets as of March 31, 2008 increased 8.3 percent compared with the end of the previous Consequently, an extended period of inclement weather could affect the performance of the OLC 600,000 3 fiscal year to ¥757,542 million. Current assets increased 74.1 percent compared with the end of the 2.3 2.3 Group by causing the number of guests to decrease. 2.0 previous fiscal year to ¥180,554 million, mainly due to a transfer of investment securities to mar- 400,000 2 ketable securities and an increase in cash and cash equivalents. While depreciation of Tokyo Disney Natural Disasters 200,000 1 Resort facilities continued, theme parks, resorts and other property increased 1.0 percent from the The OLC Group‘s business infrastructure is concentrated in the Maihama area, and a major 0 0 end of the previous fiscal year to ¥531,479 million because of factors including capital investment in 2006 2007 2008 earthquake, fire, flood or other disaster there could lead to adverse effects. Although the Group has (As of / Fiscal years ended March 31) Tokyo Disneyland Hotel and other facilities. Investments and other assets decreased 34.8 percent Total assets (Left scale) given sufficient consideration to disaster resistance at all Tokyo Disney Resort facilities, there is a Return on assets (ROA) (Right scale) from the end of the previous fiscal year to ¥45,509 million due to factors including the transfer of possibility that in the event of a disaster the damage caused to facilities and public transportation investment securities to marketable securities. and the likely drop in consumer confidence would lead to a temporary decrease in the number of Interest-Bearing Debt / guests, which would affect the performance of the OLC Group. Debt-to-Equity Ratio Liabilities (Millions of yen) (%) Terrorism, Infectious Diseases or Similar Incidents Total liabilities as of March 31, 2008 increased 17.3 percent compared with the end of the pre- 294,320 300,000 266,945 100 vious fiscal year to ¥369,361 million. Current liabilities increased 131.1 percent compared with the 235,626 The OLC Group has numerous facilities where guests are present, and places the highest priority 240,000 75.8 80 end of the previous fiscal year to ¥169,907 million, primarily as a result of the transfer of the first on ensuring safety at each of them. However, in the event of a terrorist attack or similar incident at 180,000 71.0 60 series of unsecured bonds due in April 2008 (¥100,000 million) from non-current liabilities to cur- 61.2 a large-scale consumer-oriented facility in Japan or overseas, or in the event of an outbreak of an 120,000 40 rent liabilities. Non-current liabilities decreased 17.3 percent compared with the end of the previous infectious disease for which no treatment is available, such as a new strain of influenza, consumer 60,000 20 fiscal year to ¥199,454 million, despite the issue of the ninth and tenth series of unsecured bonds, confidence would presumably decline. This would likely result in a temporary decrease in the num- 00 primarily because the first series of unsecured bonds was transferred to current liabilities. 2006 2007 2008 ber of guests, which could affect the performance of the OLC Group. (As of March 31) Interest-bearing debt as of March 31, 2008 increased 24.9 percent compared with the end of Interest-bearing debt (Left scale) Debt-to-equity ratio (Right scale) Product Deficiencies and Problems the previous fiscal year to ¥294,320 million. The debt-to-equity ratio increased to 75.8 percent from Incidents, including attraction incidents, sale of defective merchandise or product tampering, 61.2 percent at the end of the previous fiscal year. involving the products and services of the core theme park business, including attractions, products Net Assets / Equity Ratio Net Assets (Millions of yen) (%) and foods, could entail serious harm to the guests who are customers, and could result in material

Total net assets as of March 31, 2008 increased 0.8 percent compared with the end of the pre- 400,000 375,947 385,001 388,181 80 costs from factors, including decreased trust in the Group‘s priority on safety, damage to the Group brand and lawsuits, that could affect the performance of the OLC Group. vious fiscal year to ¥388,181 million due to the increase from net income. The equity ratio 55.0 300,000 52.3 51.2 60 decreased 3.8 percentage points from the end of the previous fiscal year to 51.2 percent. 200,000 40 Handling of Internal Information In June 2007, we used retained earnings to retire 5 million shares of treasury stock. The OLC Group takes full precautions in its business activities to prevent avoidable leaks of the 100,000 20 personal information it maintains on guests and the proprietary information it maintains concerning 0 0 2006 2007 2008 business operations. These precautionary measures include strengthening surveillance systems for (As of March 31) Net assets (Left scale) internal networks and limiting access to information. However, unforeseeable or unexpected Equity ratio (Right scale) instances such as hacking of internal information, misuse of internal databases, leaks or falsification could lead to a decrease in trust in the OLC Group or other negative consequences including law- suits involving large expenses that could affect the performance of the OLC Group.

32 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 33 Management‘s Discussion and Analysis of Operations

Outlook for the Fiscal Year Ending March 31, 2009 Revenues Forecast fiscal year ending March 2009. Therefore, we project that operating income will decrease 4.6 per- (Millions of yen) cent year-on-year to ¥25,150 million. 400,000 364,240 Revenues 342,422 Hotel Business Segment We project that revenues will increase 6.4 percent year-on-year to ¥364,240 million. Total 300,000 attendance at the two theme parks is forecast to reach the highest level to date primarily because We project that revenues will increase 31.4 percent year-on-year to ¥43,600 million in the Hotel 200,000 Tokyo Disney Resort 25th Anniversary will be conducted for the full year throughout the entire Business Segment. The occupancy rate of Tokyo Disneyland Hotel, which will open in the fiscal year 100,000 resort, and Tokyo Disneyland Hotel and Cirque du Soleil Theatre Tokyo will open during the fiscal ending March 2009, is expected to be in the mid-90 percent range. 0 Despite the increase in revenues, we will incur expenses including preparation expenses before year ending March 2009. 2008 2009 (Estimate) (Fiscal years ended/ending March 31) Please see page 27 for detailed forecast information by segment. opening Tokyo Disneyland Hotel. Therefore, operating income is expected to decrease 23.4 percent The business segments will change as of the fiscal year ending March 2009. Please refer to year-on-year to ¥4,560 million. Excluding preparation costs before opening, Tokyo Disneyland Hotel page 26 for detailed information. is expected to be profitable from its first year of operation.

Operating Income Operating Income / Retail Business Segment Net Income Forecast We project that operating income will decrease 8.8 percent year-on-year to ¥28,400 million. We project that revenues will increase 4.3 percent year-on-year to ¥17,630 million in the Retail (Millions of yen) Despite an increase in revenues, primary factors in the decrease will be an increase in depreciation Business Segment. We project a return to profitability by continuing to implement improvement 40,000 measures that began in the fiscal year ended March 2008. By opening new stores and closing expenses following a tax code revision and preparation expenses before opening Tokyo Disneyland 31,144 30,000 28,400 Hotel and Cirque du Soleil Theatre Tokyo. unprofitable stores, we forecast that the total number of stores as of March 31, 2009 will increase 20,000 by three. 14,731 16,220 Net Income We will aim for profitability by continuing improvements from the fiscal year ended March 2008 10,000 We project that net income will increase 10.1 percent year-on-year to ¥16,220 million. The in both the cost of merchandise ratio and SG&A expense ratio through stricter inventory and stock- 0 impairment loss following the decision to terminate operations at Camp Nepos, and the loss on 2008 2009 (Estimate) keeping unit (SKU) management flow and streamlining of administrative operations. Therefore, (Fiscal years ended/ending March 31) doubtful receivables and impairment loss due to the bankruptcy of a contracting company for a operating income is expected to be ¥40 million, an improvement of ¥341 million from the operating Operating income hydroponic culture facility recorded as one-time losses in the fiscal year ended March 2008 will not Net income loss in the previous fiscal year. recur in the fiscal year ending March 2009. We aim for an operating margin of 4 percent in the fiscal year ending March 2011.

Outlook by Business Segment Other Business Segment We project that revenues will increase by 26.6 percent year-on-year to ¥24,660 million in the Theme Park Segment Other Business Segment. Cirque du Soleil Theatre Tokyo will hold its grand opening on October 1, We project that revenues will increase 2.0 percent year-on-year to ¥278,350 million in the 2008, after tryout performances from August. Theme Park Segment. Total attendance at the two theme parks is expected to increase 1.5 percent Despite the increase in revenues, we will incur expenses including preparation expenses before from the previous fiscal year to 25,800 thousand, the highest level to date, primarily because Tokyo opening Cirque du Soleil Theatre Tokyo. As a result, we project that operating loss will increase by Disney Resort 25th Anniversary will be conducted throughout the year. ¥1,005 million year-on-year to ¥1,690 million. On a per-guest basis, revenues at the theme parks are expected to be ¥9,380, an increase of 0.1 percent. Although ticket revenues are expected to decrease 0.1 percent year-on-year to ¥4,220, merchandise sales revenues are expected to increase 0.5 percent year-on-year to ¥3,110, due to the promotion of items for Tokyo Disney Resort 25th Anniversary. Revenues from food and beverage sales are expected to increase 0.1 percent year-on-year to ¥2,050. Despite the increase in revenues, we forecast an increase in personnel expenses due to an hourly wage revision for part-time employees in the fiscal year ended March 2008 and an increase in depreciation expenses following an additional tax code revision (simplified classification) in the

34 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 35 Consolidated Balance Sheets Consolidated Balance Sheets

As of March 31, 2008 and 2007

THOUSANDS OF THOUSANDS OF MILLIONS OF YEN U.S. DOLLARS MILLIONS OF YEN U.S. DOLLARS 2008 2007 2008 2008 2007 2008 ASSETS LIABILITIES AND NET ASSETS CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents ¥ 97,902 ¥ 46,878 $ 977,163 Trade payables ¥ 15,377 ¥ 15,368 $ 153,478 Marketable securities (Notes 2 and 4) 42,711 21,988 426,300 Current portion of long-term debt (Notes 3 and 4) 101,304 1,304 1,011,119 Trade receivables 13,362 12,210 133,367 Accrued income taxes (Note 6) 6,165 10,052 61,533 Inventories 10,563 8,965 105,430 Other current liabilities(Note 4) 47,061 46,796 469,718 Deferred tax assets (Note 6) 5,796 6,315 57,850 Total current liabilities 169,907 73,520 1,695,848 Other current assets 10,220 7,369 102,006 NON-CURRENT LIABILITIES: Total current assets 180,554 103,725 1,802,116 Long-term debt (Notes 3 and 4) 193,016 234,322 1,926,500 Employees’ estimated severance and retirement benefits (Note 5) 2,502 2,397 24,973 Deferred tax liabilities (Note 6) — 650 — Other non-current liabilities 3,936 3,882 39,285 Total non-current liabilities 199,454 241,251 1,990,758 THEME PARKS, RESORTS AND OTHER PROPERTY, AT COST: Total liabilities 369,361 314,771 3,686,606 Attractions, buildings and equipment (Note 4) 807,513 791,665 8,059,816 COMMITMENTS AND CONTINGENT LIABILITIES (Note 9) Land (Note 4) 93,302 93,302 931,251 NET ASSETS Construction in progress 47,261 26,823 471,714 OWNERS’ EQUITY: (Note 7) 948,076 911,790 9,462,781 Common stock: Less accumulated depreciation (416,597) (385,573) (4,158,070) Authorized – 330,000,000 shares; 531,479 526,217 5,304,711 Issued – 95,122,540 shares in 2008 and 100,122,540 shares in 2007 63,201 63,201 630,811 Additional paid-in capital 111,403 111,403 1,111,917 Retained earnings 212,704 233,932 2,123,006 Less cost of common stock in treasury, 2,558 shares in 2008 and 5,002,303 shares in 2007 (15) (30,265) (149) Total owners’ equity 387,293 378,271 3,865,585 INVESTMENTS AND OTHER ASSETS: ACCUMULATED GAINS FROM VALUATION AND Investment securities (Notes 2 and 4) 19,398 44,164 193,612 TRANSLATION ADJUSTMENTS: Goodwill 1,830 2,104 18,265 Net unrealized holding gains on securities 1,059 6,348 10,570 Other intangible assets 11,712 11,634 116,898 Net unrealized gains on hedging derivatives (315) 241 (3,144) Deferred tax assets (Note 6) 3,694 253 36,870 Total accumulated gains from valuation and Other assets 8,875 11,675 88,582 translation adjustments 744 6,589 7,426 45,509 69,830 454,227 MINORITY INTERESTS: 144 141 1,437 Total non-current assets 576,988 596,047 5,758,938 Total net assets 388,181 385,001 3,874,448 Total assets ¥ 757,542 ¥ 699,772 $ 7,561,054 Total liabilities and net assets ¥757,542 ¥699,772 $7,561,054

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

36 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 37 Consolidated Statements of Income Consolidated Statements of Changes in Net Assets

Years Ended March 31, 2008, 2007 and 2006 Years Ended March 31, 2008, 2007 and 2006

MILLIONS OF YEN THOUSANDS OF MILLIONS OF YEN U.S. DOLLARS Owners’ equity Number 2008 2007 2006 2008 of shares Common stock Additional Retained Less cost of common Total owners’ 2008 (THOUSANDS) paid-in capital earnings stock in treasury equity REVENUES ¥342,422 ¥344,083 ¥332,885 $3,417,726 Balance at March 31, 2007 100,123 ¥63,201 ¥111,403 ¥233,932 ¥(30,265) ¥378,271 COST OF REVENUES 277,874 276,856 269,680 2,773,470 Changes during the period Dividends from retained earnings Gross profit 64,548 67,227 63,205 644,256 (5,707) (5,707) Net income 14,731 14,731 SELLING, GENERAL AND Acquisition of treasury stock (2) (2) ADMINISTRATIVE EXPENSES 33,404 33,116 32,600 333,407 Retirement of treasury stock (5,000) (30,252) 30,252 — Net change of items other than Operating income 31,144 34,111 30,605 310,849 owners’ equity during the period OTHER INCOME (EXPENSES): Total changes during the period (5,000) ¥— ¥—¥ (21,228) ¥30,250 ¥ 9,022 Balance at March 31, 2008 Interest and dividend income 1,022 491 231 10,201 95,123 ¥63,201 ¥111,403 ¥212,704 ¥ (15) ¥387,293 Gain on sales of property — 181 — — MILLIONS OF YEN Valuation and translation adjustment Gain on sales of investment securities 21 — — 210 Net unrealized Deferred gains on derivative Total valuation Interest expenses (4,736) (4,302) (3,785) (47,270) holding gains financial instruments used and translation Minority interests Total net assets 2008 on securities for hedge accounting adjustment Loss on business restructuring — (736) — — Balance at March 31, 2007 ¥ 6,348 ¥ 241 ¥ 6,589 ¥141 ¥385,001 Impairment loss on investment securities (Note 2) (80) (770) (85) (798) Changes during the period Impairment loss of fixed assets (Note 10) (1,546) — — (15,431) Dividends from retained earnings (5,707) Net income 14,731 Equity in earning (loss) of affiliates 33 (1) 80 329 Acquisition of treasury stock (2) Other, net (383) (111) (598) (3,823) Retirement of treasury stock — Net change of items other than (5,669) (5,248) (4,157) (56,582) owners’ equity during the period (5,289) (556) (5,845) 3 (5,842) Income before income taxes 25,475 28,863 26,448 254,267 Total changes during the period ¥(5,289) ¥(556) ¥(5,845) ¥ 3 ¥ 3,180 INCOME TAXES (Note 6): Balance at March 31, 2008 ¥ 1,059 ¥(315) ¥ 744 ¥144 ¥388,181 10,492 14,284 10,823 104,721 Current MILLIONS OF YEN Deferred 247 (1,738) (85) 2,465 Number Owners’ equity 10,739 12,546 10,738 107,186 of shares Additional Retained Less cost of common Total owners’ 2007 (THOUSANDS) Common stock paid-in capital earnings stock in treasury equity MINORITY INTERESTS 5 8 6 50 Balance at March 31, 2006 100,123 ¥63,201 ¥111,403 ¥222,439 ¥(30,263) ¥366,780 Net income ¥ 14,731 ¥ 16,309 ¥ 15,704 $ 147,031 Changes during the period Dividends from retained earnings (4,756) (4,756) Bonuses to directors and corporate auditors (60) (60) YEN U.S. DOLLARS Net income 16,309 16,309 AMOUNTS PER SHARE: Acquisition of treasury stock (2) (2) Net change of items other than Net income ¥ 154.86 ¥ 171.46 ¥ 162.73 $ 1.55 owners’ equity during the period Cash dividends 60.00 55.00 45.00 0.60 Total changes during the period — ¥— ¥ — ¥ 11,493 ¥ (2) ¥ 11,491 Balance at March 31, 2007 100,123 ¥63,201 ¥111,403 ¥233,932 ¥(30,265) ¥378,271 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

MILLIONS OF YEN Valuation and translation adjustment Net unrealized Deferred gains on derivative Total valuation holding gains financial instruments used and translation Minority interests Total net assets 2007 on securities for hedge accounting adjustment Balance at March 31, 2006 ¥ 9,053 ¥ — ¥ 9,053 ¥114 ¥375,947 Changes during the period Dividends from retained earnings (4,756) Bonuses to directors and corporate auditors (60) Net income 16,309 Acquisition of treasury stock (2) Net change of items other than owners’ equity during the period (2,705) 241 (2,464) 27 (2,437) Total changes during the period ¥(2,705) ¥241 ¥(2,464) ¥ 27 ¥ 9,054 Balance at March 31, 2007 ¥ 6,348 ¥241 ¥ 6,589 ¥141 ¥385,001 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

38 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 39 Consolidated Statements of Cash Flows Consolidated Statements of Changes in Net Assets

Years Ended March 31, 2008, 2007 and 2006

MILLIONS OF YEN THOUSANDS OF Owners’ equity MILLIONS OF YEN Number U.S. DOLLARS of shares Additional Retained Less cost of common Total owners’ 2007 2006 2008 2006 (THOUSANDS) Common stock paid-in capital earnings stock in treasury equity 2008 Balance at March 31, 2005 100,123 ¥63,201 ¥111,403 ¥210,725 ¥ (12) ¥385,317 CASH FLOWS FROM OPERATING ACTIVITIES: Changes during the period Income before income taxes ¥ 25,475 ¥ 28,863 ¥ 26,448 $ 254,267 Dividends from retained earnings (3,905) (3,905) Adjustments to reconcile income before income taxes Bonuses to directors and corporate auditors (85) (85) to net cash provided by operating activities: Net income 15,704 15,704 Acquisition of treasury stock (30,251) (30,251) Depreciation and amortization, aggregate 43,623 42,951 43,374 435,403 Net change of items other than Impairment loss of fixed assets 1,546 — — 15,431 owners’ equity during the period Amortization of goodwill 155 178 131 1,547 Total changes during the period — ¥— ¥— ¥ 11,714 ¥(30,251) ¥ (18,537) Increase (decrease) in estimated termination and Balance at March 31, 2006 100,123 ¥63,201 ¥111,403 ¥222,439 ¥(30,263) ¥366,780 retirement and other allowances 10 247 (304) 100 MILLIONS OF YEN Interest and dividends income (1,022) (491) (231) (10,201) Valuation and translation adjustment Interest expenses 4,736 4,302 3,785 47,270 Net unrealized Deferred gains on derivative Total valuation Exchange loss (gain) (6) (2) (14) (60) holding gains financial instruments used and translation Minority interests Total net assets 2006 on securities for hedge accounting adjustment Gain on sales of property — (181) — — Gain on sales of investment securities (21) — — (210) Balance at March 31, 2005 ¥4,289 ¥— ¥4,289 ¥108 ¥389,714 Changes during the period Impairment loss on investment securities 80 770 85 798 Dividends from retained earnings (3,905) Equity in (earning) loss of affiliates (33) 1 (80) (329) Bonuses to directors and corporate auditors (85) (Increase) decrease in trade receivables (464) (858) (1,256) (4,631) Net income 15,704 (Increase) decrease in inventories (1,598) 71 (938) (15,950) Acquisition of treasury stock (30,251) Increase (decrease) in trade payables 682 1,350 (94) 6,807 Net change of items other than Increase (decrease) in accrued consumption taxes (153) 637 392 (1,527) owners’ equity during the period 4,764 — 4,764 6 4,770 Total changes during the period ¥4,764 ¥— ¥4,764 ¥ 6 ¥ (13,767) Other, net 2,177 4,242 2,877 21,729 Balance at March 31, 2006 ¥9,053 ¥— ¥9,053 ¥114 ¥375,947 Sub-total 75,187 82,080 74,175 750,444 Interest and dividends received 798 449 225 7,965 THOUSANDS OF U.S. DOLLARS Interest paid (4,617) (4,360) (3,899) (46,082) Owners’ equity Number Income taxes paid (13,650) (11,665) (11,331) (136,242) of shares Common stock Additional Retained Less cost of common Total owners’ Net cash provided by operating activities 57,718 66,504 59,170 576,085 2008 (THOUSANDS) paid-in capital earnings stock in treasury equity CASH FLOWS FROM INVESTING ACTIVITIES: Balance at March 31, 2007 100,123 $630,811 $1,111,917 $2,334,884 $(302,076) $3,775,536 Addition to marketable securities (72,927) (41,869) (25,696) (727,887) Changes during the period Dividends from retained earnings (56,962) (56,962) Proceeds from maturity of marketable securities 61,472 39,191 8,549 613,554 Net income 147,031 147,031 Acquisition of property (49,084) (50,843) (33,571) (489,909) Acquisition of treasury stock (20) (20) Addition to investment securities (1,158) (10,488) (10,615) (11,558) Retirement of treasury stock (5,000) (301,947) 301,947 — Proceeds from sales of investment securities 5,239 — 561 52,291 Net change of items other than Proceeds from maturity of investment securities 3,000 — 3,032 29,943 owners’ equity during the period Addition of time deposits included in other current assets (11,000) (1,000) — (109,791) Total changes during the period (5,000) $ — $—$ (211,878) $ 301,927 $ 90,049 Balance at March 31, 2008 95,123 $630,811 $1,111,917 $2,123,006 $ (149) $3,865,585 Proceeds from maturity of time deposits included in other current assets 8,000 — — 79,848 THOUSANDS OF U.S. DOLLARS Other, net (3,117) (2,910) (5,848) (31,111) Valuation and translation adjustment Net cash used in investing activities (59,575) (67,919) (63,588) (594,620) Net unrealized Deferred gains on derivative Total valuation CASH FLOWS FROM FINANCING ACTIVITIES: holding gains financial instruments used and translation Minority interests Total net assets 2008 on securities for hedge accounting adjustment Proceeds from long-term debt 59,874 — 80,805 597,605 Repayments of long-term debt (1,304) (31,304) (16,504) (13,015) Balance at March 31, 2007 $ 63,360 $ 2,395 $ 65,755 $1,407 $3,842,698 Changes during the period Dividends paid (5,694) (4,733) (3,888) (56,832) Dividends from retained earnings (56,962) Purchase of treasury stock (2) (2) (30,252) (21) Net income 147,031 Other, net 0 0 (3) 0 Acquisition of treasury stock (20) Net cash provided by (used in) financing activities 52,874 (36,039) 30,158 527,737 Retirement of treasury stock — Effect of exchange rate changes on cash and cash equivalents 7 4 11 70 Net change of items other than Net increase (decrease) in cash and cash equivalents 51,024 (37,450) 25,751 509,272 owners’ equity during the period (52,790) (5,539) (58,329) 30 (58,299) Cash and cash equivalents at beginning of period 84,328 58,577 467,891 Total changes during the period $(52,790) $(5,539) $(58,329) $ 30 $ 31,750 46,878 Balance at March 31, 2008 $ 10,570 $(3,144) $ 7,426 $1,437 $3,874,448 Cash and cash equivalents at end of period ¥ 97,902 ¥ 46,878 ¥ 84,328 $ 977,163 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

40 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 41 Notes to Consolidated Financial Statements Notes to Consolidated Financial Statements

1. SIGNIFICANT ACCOUNTING AND REPORTING POLICIES retired or otherwise disposed of, the property and accumulated deprecia- In this connection, prior service costs incurred due to this transfer are tion accounts related to it are relieved of the applicable amounts and any amortized using the straight-line method over a certain period within the A BASIS OF PRESENTING CONSOLIDATED D CASH AND CASH EQUIVALENTS differences are included in maintenance costs for theme parks, resorts expected average remaining service life of employees (15 years). FINANCIAL STATEMENTS In preparing the consolidated statements of cash flows, cash on hand, and other property, except for the extraordinary nature of disposal of The accompanying consolidated financial statements have been prepared in readily available deposits and short-term highly liquid investments with neg- property which is included in other expenses. KINCOME TAXES accordance with the provisions set forth in the Japanese Financial Instruments ligible risk of changes in value and maturities not exceeding three months (Change in accounting policy) The provision for income taxes is computed based on the pretax income and Exchange Law and its related accounting regulations, and in conformity at the time of purchase are considered to be cash and cash equivalents. The Companies have changed the depreciation method following the revised included in the Consolidated Statements of Income. The asset and with accounting principles generally accepted in Japan (“Japanese GAAP”), corporation tax law from this consolidated accounting period regarding prop- liability approach is used to recognize deferred tax assets and liabilities which are different in certain respects as to application and disclosure require- E MARKETABLE SECURITIES AND erty, attractions, buildings and equipment acquired after April 1, 2007. for the expected future tax consequences of temporary differences ments from the International Financial Reporting Standards. INVESTMENT SECURITIES As a result, operating income, income before income taxes and net between the carrying amounts of assets and liabilities for financial report- The accompanying consolidated financial statements have been restruc- Marketable securities and investment securities are classified as (a) securi- income have decreased by ¥527 million (US$5,260 thousand), ¥527 million ing purposes and the amounts used for income tax purposes. tured and translated into English (with some expanded descriptions) from ties held for trading purposes (hereafter, “trading securities”), (b) debt (US$5,260 thousand) and ¥314 million (US$3,134 thousand), respectively. the consolidated financial statements of Oriental Land Co., Ltd. (“the L PER SHARE DATA securities intended to be held to maturity (hereafter, “held-to-maturity debt (Additional information) Company”) prepared in accordance with Japanese GAAP and filed with the securities”), (c) equity securities issued by subsidiaries and affiliate compa- The Companies have recorded assets acquired before March 31, 2007 Dividends per share shown in the Consolidated Statements of Income appropriate Local Finance Bureau of the Ministry of Finance as required by nies, or (d) all other securities that are not classified in any of the above based on the previous depreciation method. Following the revised corpo- have been presented on an accrual basis and include, in each fiscal the Financial Instruments and Exchange Law. Some supplementary informa- categories (hereafter, “available-for-sale securities”). The Companies do ration tax law, when the assets are depreciated to the residual value, period, dividends approved after each balance sheet date, but applicable tion included in the statutory Japanese language consolidated financial not have trading securities and held-to-maturity-debt securities. which is 5% of the acquisition cost under the tax law, the residual value to the fiscal period then ended. statements, but not required for fair presentation, is not presented in the Available-for-sale securities with available fair market value are stated at is equally depreciated over five years of period. Net income per share is based on the weighted average number of accompanying consolidated financial statements. fair market value as of the balance sheet date. Unrealized gains or losses on As a result, operating income, income before income taxes and net shares of common stock The translation of the Japanese yen amounts into U.S. dollars is included these securities are reported, net of applicable income taxes, as a separate income have decreased by ¥1,291 million (US$12,886 thousand), ¥1,291 solely for the convenience of readers outside Japan, using the prevailing component of net assets. Realized gains and losses on sales of such securities million (US$12,886 thousand) and ¥771 million (US$7,695 thousand), M USE OF ESTIMATES exchange rate at March 31, 2008, which was ¥100.19 to U.S.$1. The conven- are computed using the moving-average method. Available-for-sale securities respectively. The preparation of financial statements in conformity with generally ience translations should not be construed as representations that the without fair market value are stated at the moving-average cost. accepted accounting principles requires management to make estimates Japanese yen amounts have been, could have been, or could in the future be, If the market value of available-for-sale securities declines significantly, H SOFTWARE and assumptions that affect the reported amounts of assets and liabilities converted into U.S. dollars at this or any other rate of exchange. such securities are restated at fair market value and the difference between Amortization of the software for internal use included in other intangible and disclosures of contingent assets and liabilities at the date of the finan- Certain reclassifications have been made to the 2007 and 2006 consoli- fair market value and the carrying amount is recognized as loss in the period assets is computed by the straight-line method over the estimated useful cial statements and the reported amounts of revenue and expenses during dated financial statements to conform to the classifications used in 2008. of the decline. For the available-for-sale securities without fair market value, lives (five years). the reporting period. Actual results could differ from those estimates. if the net asset value declines significantly, such securities are restated to net B PRINCIPLES OF CONSOLIDATION asset value with the corresponding losses recognized in the period of decline. I PRE-OPERATING COSTS AND DEVELOPMENT N LEASES The consolidated financial statements include the accounts of the In these cases, such fair market value or the net asset value will be the carry- EXPENSES Finance leases, except for those leases under which the ownership of the Company and all of its subsidiaries (“the Companies”). ing amount of the securities at the beginning of the next year. Pre-operating costs are capitalized and amortized using the straight-line leased assets is considered to be transferred to the lessee, are accounted Material inter-company balances, transactions and profits have been method over five years. Expenses relating to development activities are for in the same manner as operating leases. eliminated in consolidation. In the elimination of investments in sub- F INVENTORIES charged to income as incurred sidiaries, the assets and liabilities of the subsidiaries, including the portion Consumer products at stores are stated at cost, determined by the retail OACCOUNTING FOR IMPAIRMENT OF attributable to minority stockholders, are evaluated using the fair value at method. Consumer products at warehouses, materials for food and bev- J PENSION PLAN AND RETIREMENT BENEFITS FIXED ASSETS the time the Company acquired control of the respective subsidiaries. erages and supplies are stated at cost, determined by the moving- The Companies provide allowances for employees’ severance and retirement Effective April 1, 2005, the Companies adopted the new accounting stan- Consolidation goodwill, the excess of acquisition cost over net assets, average method. benefits at the balance sheet date based on the estimated amounts of pro- dard for impairment of fixed assets (“Opinion Concerning Establishment of is amortized over a period of 20 years on a straight-line basis. Movie films are computed using the declining-balance method over jected benefit obligation and the fair value of the plan assets at that date. Accounting Standard for Impairment of Fixed Assets” issued by the Business The number of consolidated subsidiaries was 20, 20 and 19 in 2008, two years. Accounting Deliberation Council on August 9, 2002) and the implementa- 2007 and 2006, respectively. The net transition obligation incurred effective April 1, 2000 due to tion guidance for the accounting standard for impairment of fixed assets Investments in 20-50%-owned affiliates are accounted for by the equity G THEME PARKS, RESORTS AND the adoption of new accounting standards (¥4,573 million) has been rec- (the Financial Accounting Standard Implementation Guidance No. 6 issued method and are included in investment securities in the accompanying con- OTHER PROPERTY ognized in expenses in equal amounts over 15 years. Unrecognized actu- by the Accounting Standards Board of Japan on October 31, 2003). solidated balance sheets. The number of companies accounted for under the arial net gains or losses are amortized over 15 years on a straight-line Depreciation on property of Tokyo Disneyland is computed primarily using equity method was 4, 5 and 4 in 2008, 2007 and 2006, respectively. basis commencing from the succeeding period. the declining-balance method. Depreciation on property of Tokyo On July 1, 2005, the Company terminated its tax-qualified pension PACCOUNTING STANDARD FOR PRESENTA- DisneySea, Tokyo DisneySea Hotel MiraCosta, IKSPIARI, Disney C FOREIGN CURRENCY TRANSLATION plans, and transferred them to the cash-balance type of defined benefit TION OF NET ASSETS IN THE BALANCE SHEET Ambassador Hotel, Disney Resort Line and buildings acquired after April pension plans. As a result, cost of closing the non-contributory pension Effective from the year ended March 31, 2007, the Companies adopted the Receivables and payables denominated in foreign currencies are translated 1, 1998 is computed using the straight-line method. plan (¥153 million) was recognized in other expenses in the Consolidated new accounting standard for Presentation of Net Assets in the Balance into Japanese yen at the exchange rates prevailing on the balance sheet Ordinary maintenance and repairs are charged to income as incurred. Statements of Income. Sheet (Statement No. 5 issued by the Accounting Standards Board of Japan date. Gains and losses resulting from the translation are charged to income. Major replacements and betterments are capitalized. When property is 42 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 43 Notes to Consolidated Financial Statements

on December 9, 2005) and the implementation guidance for the accounting As a result, minority interests of ¥114 million, which were not Securities with available fair values not exceeding book values standard for Presentation of Net Assets in the Balance Sheet (the Financial included in the 2006 consolidated statements of owners’ equity, is now MILLIONS OF YEN THOUSANDS OF Accounting Standard Implementation Guidance No. 8 issued by the presented in the consolidated statement of changes in net assets. U.S. DOLLARS Accounting Standards Board of Japan on December 9, 2005) (collectively, 2008 2007 2008 the “New Accounting Standards”). RACCOUNTING STANDARD FOR DEFERRED Acquisition Book Acquisition Book Acquisition Book Type cost value Difference cost value Difference cost value Difference Under the New Accounting Standards, the balance sheet comprises the ASSETS Equity securities ¥ 8,953 ¥ 7,098 ¥(1,855) ¥ 891 ¥ 864 ¥(27) $ 89,360 $ 70,845 $(18,515) assets, liabilities and net assets section. Effective from the year ended March 31, 2007, the Companies adopted Bonds 14,035 14,033 (2) 25,226 25,210 (16) 140,084 140,064 (20) Previously, the balance sheet comprised the assets, liabilities, the new accounting standard for Tentative Solution on Accounting for Others — — — — — — — — — minority interests and the owners’ equity section. Deferred Assets (Practical Solution No. 19 issued by the Accounting Total ¥22,988 ¥21,131 ¥(1,857) ¥26,117 ¥26,074 ¥(43) $229,444 $210,909 $(18,535) The net assets section comprised four subsections, which are owners’ Standards Board of Japan on August 11, 2006). equity, accumulated gains (losses) from valuation and translation adjust- As a result of adopting the new accounting standard, operating Total sales amounts of available-for-sale securities sold in the years ended March 31, 2008 amounted to ¥5,043 million (US$50,334 thousand). ments, subscription rights to shares and minority interests, as applicable. income for the year ended March 31, 2007 decreased by ¥152 million. The following table summarized book values of available-for-sale securities with no available fair values as of March 31, 2008 and 2007: The net assets section includes items which were not included in the Additionally, bond discounts were reflected by deducting such amounts previously presented owners’ equity section. THOUSANDS OF from the amount of the relevant bonds in the liability section. MILLIONS OF YEN U.S. DOLLARS The accumulated gains from valuation and translation adjustments sec- Bond discounts deducted from the amount of the relevant bonds Type 2008 2007 2008 tion included net unrealized gains on hedging derivatives. Minority interests were ¥15 million. were presented between non-current liabilities and the previously presented Certificate of deposit ¥17,000 ¥ 3,000 $169,678 Preference shares — 3,000 — owners’ equity. SRECLASSIFICATION Non-listed equity securities 3,628 3,718 36,211 Effective from the year ended March 31, 2008, the Companies adopted the QACCOUNTING STANDARD FOR STATEMENT Bond 5,000 1,000 49,905 revision of the Practical Guidelines on Accounting for Financial Instruments OF CHANGES IN NET ASSETS Investment 422 — 4,212 (Accounting Committee Report No. 14 as amended on July 4, 2007), Total ¥26,050 ¥10,718 $260,006 Effective from the year ended March 31, 2007, the Companies adopted Regarding Matters to be Noted relating to Treatment on Regulation for Investments in affiliated companies accounted for by the equity method amounted to ¥1,671 million (US$16,678 thousand) and ¥1,820 million at the new accounting standard for Statement of Changes in Net Assets Terminology, Forms and Preparation on Financial Statements (as amended March 31, 2008 and 2007, respectively. (Statement No. 6 issued by the Accounting Standards Board of Japan on on October 2, 2007) and Q&A on Accounting for Financial Instruments December 27, 2005), and the implementation guidance for the accounting (Accounting Committee as amended on November 6, 2007), certificate of Maturities of available-for-sale securities with maturity were as follows: standard for Statement of Changes in Net Assets (the Financial Accounting deposit are changed to be presented as the marketable securities. MILLIONS OF YEN Standard Implementation Guidance No. 9 issued by the Accounting The relevant amount included in “marketable securities” is ¥17,000 Standards Board of Japan on December 27, 2005) (collectively, the “New Over one year Over five years million (US$169,678 thousand) and ¥3,000 million, as of March 31, Within but within but within Over Accounting Standards”). 2008 and 2007, respectively. Type one year five years ten years ten years Total Previously, consolidated statements of stockholders’ equity were pre- In the consolidated statement of cash flows, acquisition of certificate 2008 pared for purposes of inclusion in the consolidated financial statements of deposit and proceeds from maturity of certificate of deposit are 1) Bonds: although such statements were not required in Japan. changed to be presented as “addition to marketable securities” and Government bonds ¥ 715 ¥21 ¥— ¥— ¥ 736 The consolidated statement of changes in net assets for 2006 have “proceeds from maturity of marketable securities,” respectively. Corporate bonds 24,996 — — — 24,996 been prepared in accordance with the New Accounting Standards. Other — — — — — 2) Other 17,000 — 260 — 17,260 Total ¥42,711 ¥21 ¥260 ¥— ¥42,992 2. MARKETABLE SECURITIES AND INVESTMENT SECURITIES

The following tables summarized acquisition costs and book values of available-for-sale securities with available fair values as of March 31, 2008 and 2007: MILLIONS OF YEN Securities with available fair values exceeding book values Over one year Over five years Within but within but within Over THOUSANDS OF Type one year five years ten years ten years Total MILLIONS OF YEN U.S. DOLLARS 2007 2008 2007 2008 1) Bonds: Acquisition Book Difference Acquisition Book Difference Acquisition Book Difference Type cost value cost value cost value Government bonds ¥ — ¥ 732 ¥— ¥ — ¥ 732 Equity securities ¥2,756 ¥ 6,557 ¥3,801 ¥10,818 ¥21,518 ¥10,700 $27,508 $ 65,446 $37,938 Corporate bonds 18,988 8,496 — — 27,484 Bonds 6,699 6,700 1 3,000 3,006 6 66,863 66,873 10 Other — — — — — Others — — — 4,006 4,016 10 — — — 2) Other 3,000 — — 7,016 10,016 Total ¥9,455 ¥13,257 ¥3,802 ¥17,824 ¥28,540 ¥10,716 $94,371 $132,319 $37,948 Total ¥21,988 ¥9,228 ¥— ¥7,016 ¥38,232

44 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 45 Notes to Consolidated Financial Statements

THOUSANDS OF U.S. DOLLARS 4. PLEDGED ASSETS Over one year Over five years The net carrying value of pledged assets at March 31, 2008 and 2007 was as follows: Within but within but within Over Type one year five years ten years ten years Total THOUSANDS OF MILLIONS OF YEN U.S. DOLLARS 2008 2008 2007 2008 1) Bonds: Buildings ¥36,720 ¥40,196 $366,504 Government bonds $ 7,136 $210 $— $— $ 7,346 Land 2,655 2,655 26,500 Corporate bonds 249,486 — — — 249,486 Marketable securities 715 — 7,136 Other — — — — — Investment securities 21 732 210 2) Other 169,678 — 2,595 — 172,273 Total ¥40,111 ¥43,583 $400,350 Total $426,300 $210 $2,595 $— $429,105 Buildings and land were pledged to secure other long-term payable (¥14,285 million (US$142,579 thousand) and ¥15,583 million at March 31, Impairment loss of ¥80 million (US$798 thousand) and ¥770 million were recognized for available-for-sale securities in the years ended March 31, 2008 and 2007, respectively). Marketable securities and investment securities were pledged to advances received of gift certificates (¥404 million 2008 and 2007, respectively. (US$4,032 thousand) and ¥448 million at March 31, 2008 and 2007, respectively). 3. LONG-TERM DEBT 5. EMPLOYEES’ SEVERANCE AND RETIREMENT BENEFITS Long-term debt as of March 31, 2008 and 2007 consisted of the following: The liabilities for severance and retirement benefits included in the liability section of the consolidated balance sheets as of March 31, 2008 and 2007 con- THOUSANDS OF MILLIONS OF YEN U.S. DOLLARS sisted of the following: 2008 2007 2008 THOUSANDS OF MILLIONS OF YEN U.S. DOLLARS Bonds 2.600%, unsecured straight bonds, payable in yen, due April 2008 ¥ 100,000 ¥100,000 $ 998,104 2008 2007 2008 0.730%, unsecured straight bonds, payable in yen, due May 2009 20,000 19,999 199,621 Projected benefit obligation ¥ 23,527 ¥ 22,192 $ 234,824 1.860%, unsecured straight bonds, payable in yen, due March 2016 29,993 29,992 299,361 Less fair value of pension assets (16,871) (16,889) (168,390) 1.290%, unsecured straight bonds, payable in yen, due March 2011 19,995 19,994 199,571 Funded status 6,656 5,303 66,434 1.317%, unsecured straight bonds, payable in yen, due January 2015 9,995 — 99,760 Unrecognized net transition obligation (2,134) (2,439) (21,299) 1.700%, unsecured straight bonds, payable in yen, due January 2018 20,000 — 199,621 Unrecognized actuarial differences (1,657) (261) (16,539) 199,983 169,985 1,996,038 Unrecognized prior service cost (363) (394) (3,623) Loans Liability for severance and retirement benefits, net 2,502 2,209 24,973 Unsecured bank loans 0.75% to 2.47%, due 2009 through 2011 23,800 13,800 237,549 Prepaid pension cost — (188) — Unsecured loans from life insurance companies 1.021% to 1.111% due 2012 5,200 5,200 51,901 Liability for severance and retirement benefits ¥ 2,502 ¥ 2,397 $ 24,973 Unsecured syndicate loans 1.023% to 1.177%, due 2010 through 2013 51,000 31,000 509,033 Included in the consolidated statement of income for the years ended March 31, 2008, 2007 and 2006 were severance and retirement benefit expens- 80,000 50,000 798,483 es comprised of the following: Payable Secured other long-term payable 2.150%, due 2019 14,285 15,583 142,579 THOUSANDS OF MILLIONS OF YEN Unsecured other long-term payable 4.178%, due 2018 52 58 519 U.S. DOLLARS 14,337 15,641 143,098 2008 2007 2006 2008 Total 294,320 235,626 2,937,619 Service costs-benefits earned during the year ¥1,323 ¥1,341 ¥1,296 $13,205 Less current portion included in current liabilities (101,304) (1,304) (1,011,119) Interest cost on projected benefit obligation 428 407 396 4,272 ¥ 193,016 ¥234,322 $ 1,926,500 Expected return on plan assets (485) (448) (424) (4,841) Amortization of prior service costs 30 28 14 300 The aggregate annual maturities of long-term debt subsequent to March 31, 2008, were summarized below. Amortization of actuarial differences 49 51 86 489 THOUSANDS OF Amortization net transition obligation 305 305 308 3,044 MILLIONS OF YEN U.S. DOLLARS Special termination benefit 115 394 635 1,148 Year ending March 31, Cost of closing non-contributory pension plan — — 153 — 2009 ¥101,304 $1,011,119 Severance and retirement benefit expenses ¥1,765 ¥2,078 ¥2,464 $17,617 2010 42,104 420,242 2011 55,299 551,941 2008 2007 2012 11,504 114,822 Discount rate 2.0% 2.0% 2013 16,304 162,731 Rate of expected return on plan assets 3.0% 3.0% Thereafter 67,805 676,764 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 294,320 $2,937,619 number of total service years. 46 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 47 Notes to Consolidated Financial Statements

6. INCOME TAXES holders’ meeting or could be capitalized by a resolution of the Board of B HEDGING INSTRUMENTS AND Directors. Under the Law, both of these appropriations generally require a HEDGED ITEMS The Companies are subject to corporation, enterprise and inhabitants’ taxes, which resulted in an aggregate normal effective tax rates of approximately resolution of the shareholders’ meeting. The following summarizes hedging derivative financial instruments used 40.4% for the years ended March 31, 2008, 2007 and 2006. Additional paid-in capital and legal earnings reserve may not be dis- by the Companies and items hedged: The following table summarizes the significant differences between the statutory tax rate and the Companies’ effective tax rate for financial state- tributed as dividends. Under the Code, however, on condition that the ment purposes for the year ended March 31, 2007. The differences for the years ended March 31, 2008 and 2006 are not shown because they were not total amount of legal earnings reserve and additional paid-in capital Hedging instruments: Hedged Items: significant. remained equal to or exceeded 25% of common stock, they were avail- Currency swap contracts Foreign currency accounts payable 2007 2005 able for distribution by resolution of the shareholders’ meeting. Under the Interest rate swap contracts Interest on bonds Law, all additional paid-in capital and all legal earnings reserve may be Statutory tax rate 40.4% 40.4% The Companies evaluate hedge effectiveness by comparing the cumu- transferred to other capital surplus and retained earnings, respectively, Tax loss carry-forwards of subsidiaries 2.4 lative changes in cash flows from or the changes in fair value of hedged 3.4 which are potentially available for dividends. Non-deductible expenses 0.5 items to the corresponding changes in the hedging derivative instruments. 0.5 The maximum amount that the Company can distribute as dividends is Others 0.2 (0.9) calculated based on the non-consolidated financial statements of the Effective tax rate 43.5% CCREDIT RISK 43.4% Company in accordance with the Japanese Laws and regulations. The Companies are exposed to credit risk in the event of default by counter- Significant components of the Companies’ deferred tax assets and liabilities as of March 31, 2008 and 2007 were as follows: At the annual shareholders’ meeting held on June 27, 2008, the share- holders resolved to issue cash dividends amounting to ¥2,954 million parties to the currency swap agreements and the interest rate swap agree- THOUSANDS OF MILLIONS OF YEN U.S. DOLLARS (US$29,484 thousand). Such appropriations have not been accrued in the ments, however, the Companies don’t anticipate the realization of such risk because the counter-parties are major international financial institutions 2008 2007 2008 consolidated financial statements as of March 31, 2008. Such appropria- which have high credit ratings. Deferred tax assets: tions will be recognized in the period when they are resolved. Tax loss carry-forwards of subsidiaries ¥ 3,706 ¥ 3,821 $ 36,990 D RISK MANAGEMENT Revenue of advanced sold admission tickets on a cash basis 2,783 2,575 27,777 Loss from impairment of investment securities 2,267 2,364 22,627 8. FINANCIAL DERIVATIVES The Companies have a policy not to perform any derivative transactions for Excess bonuses accrued 2,139 2,384 21,349 speculation, but to cover the future foreign currency settlements and the future Retirement benefits for employees 1,009 966 10,071 A PURPOSE AND NATURE OF TRANSACTIONS interest payments and interest received which will incur in the normal course Impairment loss of fixed assets 578 — 5,769 The Companies have entered into currency swap contracts in order to of the Companies’ business. Also, risk control procedures are well established Enterprise taxes accrued — 805 — hedge exposures resulting from fluctuations in foreign currency exchange to operate internal controls effectively for execution of the transactions. Others 1,976 1,376 19,723 rates on transactions denominated in foreign currencies. The Companies Total deferred tax assets 14,458 14,291 144,306 have also entered into interest rate swap contracts in order to reduce Valuation allowance (3,995) (3,881) (39,874) interest expenses on bonds issued. Net deferred tax assets 10,463 10,410 104,432 9. COMMITMENTS AND CONTINGENT Derivative financial instruments are stated at fair value. The Deferred tax liabilities: LIABILITIES Companies recognize changes in the fair value as gain or loss unless Net unrecognized holding gains on securities (973) (4,327) (9,712) derivative financial instruments are used for hedging purposes. Others (0) (165) (0) The Companies had cancelable and non-cancelable lease agreements, Net deferred tax assets ¥ (9,490) ¥ 5,918 $(94,720) If derivative financial instruments are used as hedges and meet cer- principally for vehicles and computer equipment, which provided for tain hedging criteria, the Companies defer recognition of gain or loss annual lease payments of ¥266 million (US$2,655 thousand) and ¥274 resulting from changes in fair value of derivative financial instruments million as of March 31, 2008 and 2007. 7. OWNERS’ EQUITY until the related loss or gain on the hedged items are recognized. Also, if The remaining lease obligation was estimated at ¥475 million interest rate swap contracts are used as hedge and meet certain hedging (US$4,741 thousand) and ¥569 million as of March 31, 2008 and 2007, made, the smaller of an amount equal to 10% of the dividend or the excess, Net assets comprises three subsections, which are the owners’ equity, accu- criteria, the net amount to be paid or received under the interest rate respectively. mulated gains (losses) from valuation and translation adjustments and if any, of 25% of common stock over the total of additional paid-in capital swap contract is added to or deducted from interest on the assets or lia- minority interests. and legal earnings reserve must be set aside as additional paid-in capital or bilities for which the swap contract was executed. The Japanese Corporate Law (“the Law”) became effective on May 1, legal earnings reserve. Legal earnings reserve is included in retained earn- 2006, replacing the Japanese Commercial Code (“the Code”). ings in the accompanying consolidated balance sheets. Under the Japanese laws and regulations, the entire amount paid for Under the Code, companies were required to set aside an amount equal new shares is required to be designated as common stock. However, a to at least 10% of the aggregate amount of cash dividends and other cash company may, by a resolution of the Board of Directors, designate an appropriations as legal earnings reserve until the total of legal earnings amount not exceeding one-half of the price of the new shares as additional reserve and additional paid-in capital equaled 25% of common stock. paid-in capital, which is included in capital surplus. Under the Code, legal earnings reserve and additional paid-in capital Under the Law, in cases where a dividend distribution of surplus is could be used to eliminate or reduce a deficit by a resolution of the share-

48 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 49 Notes to Consolidated Financial Statements

10. IMPAIRMENT LOSS OF FIXED ASSETS Business segment information for the year ended March 31, 2007 is as follows: MILLIONS OF YEN During the fiscal year ended March 31, 2008, ¥1,546 million (US$15,431 thousand) in impairment losses were recognized as other expense for the Company and its subsidiary Maihama Business Service Co., Ltd., and is broken down as follows: Commercial Retail Other Elimination Year Ended March 31, 2007 Theme Parks Facilities Business Businesses Total and Corporate Consolidated THOUSANDS OF MILLIONS OF YEN U.S. DOLLARS Revenues: Revenues from customers ¥289,149 ¥23,177 ¥17,858 ¥13,899 ¥344,083 ¥ — ¥344,083 Location Use Classification 2008 2008 Inter-segment revenues 779 748 769 27,033 29,329 (29,329) — CINEMA IKSPIARI (Urayasu-shi, Chiba) Movie theater Goodwill ¥ 119 $ 1,188 Total 289,928 23,925 18,627 40,932 373,412 (29,329) 344,083 CAMP NEPOS (Urayasu-shi, Chiba) Children’s play & care Buildings and equipment 1,119 11,169 Operating expenses 258,431 22,889 19,646 38,609 339,575 (29,603) 309,972 Hydroponics plant (Sodegaura-shi, Chiba) Idle asset Construction in progress 308 3,074 Operating income (loss) ¥ 31,497 ¥1,036 ¥ (1,019) ¥2,323 ¥ 33,837 ¥ 274 ¥ 34,111 Total ¥1,546 $15,431 Total assets ¥475,734 ¥54,872 ¥10,086 ¥64,378 ¥605,070 ¥ 94,702 ¥699,772 Depreciation and amortization, aggregate ¥ 37,291 ¥ 2,968 ¥ 517 ¥ 2,274 ¥ 43,050 ¥ (99) ¥ 42,951 The Company recognized impairment loss for goodwill in connection with the movie theater due to a changing market environment and decreased Capital expenditures ¥ 40,342 ¥ 1,056 ¥ 438 ¥13,076 ¥ 54,912 ¥ (105) ¥ 54,807 profitability. The Company believed that the estimate of the recoverable amount of such goodwill was nil. Furthermore, the Company has decided to dis- continue the operation of CAMP NEPOS, which is recreation facility for kids and recognized the impairment loss fully against on the net book value of the Business segment information for the year ended March 31, 2006 is as follows: facility due to the plan for disposal in the coming years. MILLIONS OF YEN

Maihama Business Service Co., Ltd. recognized impairment loss on the construction in progress due to the suspension of the construction of hydropon- Commercial Retail Other Elimination ics plant. The estimate of the recoverable amount of the property was determined based on appraisal by the public appraiser. Year Ended March 31, 2006 Theme Parks Facilities Business Businesses Total and Corporate Consolidated Revenues: 11. SEGMENT INFORMATION Revenues from customers ¥276,282 ¥22,765 ¥21,466 ¥12,372 ¥332,885 ¥ — ¥332,885 Inter-segment revenues 764 831 570 25,687 27,852 (27,852) — Business segment information for the year ended March 31, 2008 is as follows: Total 277,046 23,596 22,036 38,059 360,737 (27,852) 332,885 Operating expenses 250,752 21,607 21,105 36,885 330,349 (28,069) 302,280 MILLIONS OF YEN Operating income ¥ 26,294 ¥ 1,989 ¥ 931 ¥ 1,174 ¥ 30,388 ¥ 217 ¥ 30,605 Commercial Retail Other Elimination Total assets ¥504,773 ¥56,354 ¥10,714 ¥52,602 ¥662,443 ¥ 94,423 ¥718,866 Year Ended March 31, 2008 Theme Parks Facilities Business Businesses Total and Corporate Consolidated Depreciation and amortization, aggregate ¥ 37,375 ¥ 3,040 ¥ 614 ¥ 2,438 ¥ 43,467 ¥ (93) ¥ 43,374 Revenues: Capital expenditures ¥ 39,169 ¥ 1,514 ¥ 589 ¥ 1,988 ¥ 43,260 ¥ (131) ¥ 43,129 Revenues from customers ¥286,842 ¥23,280 ¥16,904 ¥15,396 ¥342,422 ¥—¥342,422 The Companies are primarily engaged in the business areas of Theme parks, Commercial facilities, Retail and Other businesses in Japan. Business seg- Inter-segment revenues 764 807 1,005 28,069 30,645 (30,645) — Total 287,606 24,087 17,909 43,465 373,067 (30,645) 342,422 ments are classified based on type and nature of products and similarity of market. Operating expenses 259,408 22,936 18,210 41,811 342,365 (31,087) 311,278 Main businesses by segment are as follows: Operating income (loss) ¥ 28,198 ¥ 1,151 ¥ (301) ¥ 1,654 ¥ 30,702 ¥ 442 ¥ 31,144 Segments Main business Total assets ¥478,334 ¥51,263 ¥ 9,711 ¥75,883 ¥615,191 ¥142,351 ¥757,542 Depreciation and amortization, aggregate ¥ 38,566 ¥ 2,925 ¥ 235 ¥ 1,994 ¥ 43,720 ¥ (97) ¥ 43,623 Theme park Management and operation of Tokyo Disneyland Tokyo DisneySea and Tokyo DisneySea Hotel MiraCosta Impairment loss of fixed assets ¥ — ¥ 1,238 ¥— ¥ 308 ¥ 1,546 ¥—¥ 1,546 Capital expenditures ¥ 30,896 ¥ 1,034 ¥ 396 ¥20,419 ¥ 52,745 ¥ (54) ¥ 52,691 Commercial facilities Management and operation of IKSPIARI and Disney Ambassador Hotel Retail business Management and operation of Disney Store Japan Other business Management and operation of Disney Resort Line THOUSANDS OF U.S. DOLLARS Management and operation of Palm & Fountain Terrace Hotel Operation of employee cafeterias and management and operation of theme restaurants Commercial Retail Other Elimination Year Ended March 31, 2008 Theme Parks Facilities Business Businesses Total and Corporate Consolidated (a) There are no unallocated operating expenses. Revenues: (b) Unallocated assets amounted to ¥150,098 million (US$1,498,134 thousand), ¥100,178 million and ¥98,910 million as of March 31, 2008, 2007 and Revenues from customers $2,862,980 $232,359 $168,719 $153,668 $3,417,726 $—$3,417,726 2006, respectively, and included primarily cash, marketable securities, investment securities and so on. Inter-segment revenues 7,626 8,054 10,031 280,158 305,869 (305,869) — (c) Depreciation and capital expenditures included amortization and addition of long-term prepaid expenses. Total 2,870,606 240,413 178,750 433,826 3,723,595 (305,869) 3,417,726 (d) Revenues outside Japan and revenues to foreign customers were less than 10% of the Companies’s consolidated net revenues for 2008, 2007 Operating expenses 2,589,161 228,925 181,754 417,317 3,417,157 (310,280) 3,106,877 and 2006. Operating income (loss) $ 281,445 $ 11,488 $ (3,004) $ 16,509 $ 306,438 $ 4,411 $ 310,849 Total assets $4,774,269 $511,658 $ 96,926 $757,391 $6,140,244 $1,420,810 $7,561,054 Depreciation and amortization, aggregate $ 384,929 $ 29,194 $ 2,346 $ 19,902 $ 436,371 $ (968) $ 435,403 (Business segments reclassification) Impairment loss of fixed assets $—$ 12,357 $—$ 3,074 $ 15,431 $—$ 15,431 The management of the Company has decided to change the business segments from the fiscal year ending March 31, 2009, in which Hotel segment is Capital expenditures $ 308,374 $ 10,321 $ 3,952 $203,803 $ 526,450 $ (539) $ 525,911 newly established while Commercial Facilities segment is discontinued and others are reconciled among segments considering the current group business structure, so that the management can evaluate their business segments better than before.

50 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 51 Independent Auditors’ Report Notes to Consolidated Financial Statements

As a result of the change, the business segment information for the year ended March 31, 2008 was reclassified as follows: To the Owners and Board of Directors of Oriental Land Co., Ltd.: MILLIONS OF YEN Retail Other Elimination Year Ended March 31, 2008 Theme Parks Hotel Business Businesses Total and Corporate Consolidated We have audited the accompanying consolidated balance sheets of Oriental Land Co., Ltd. and con- Revenues: solidated subsidiaries as of March 31, 2008 and 2007, and the related consolidated statements of Revenues from customers ¥272,854 ¥33,182 ¥16,904 ¥19,482 ¥342,422 ¥ — ¥342,422 Inter-segment revenues 3,731 387 1,005 6,655 11,778 (11,778) — income, changes in net assets and cash flows for each of the three years in the period ended March Total 276,585 33,569 17,909 26,137 354,200 (11,778) 342,422 31, 2008, expressed in Japanese yen.These consolidated financial statements are the responsibility of Operating expenses 250,217 27,613 18,210 26,822 322,862 (11,584) 311,278 the Company‘s management. Our responsibility is to independently express an opinion on these con- Operating income (loss) ¥ 26,368 ¥ 5,956 ¥ (301) ¥ (685) ¥ 31,338 ¥(194) ¥ 31,144 Total assets ¥444,593 ¥88,166 ¥ 9,711 ¥71,983 ¥614,453 ¥143,089 ¥757,542 solidated financial statements based on our audits. Depreciation and amortization, aggregate ¥ 37,063 ¥ 3,206 ¥ 235 ¥ 3,216 ¥ 43,720 ¥ (97) ¥ 43,623 Impairment loss of fixed assets ¥308 ¥— ¥— ¥ 1,238 ¥ 1,546 ¥ — ¥ 1,546 We conducted our audits in accordance with auditing standards generally accepted in Japan. Those Capital expenditures ¥ 30,615 ¥15,255 ¥ 396 ¥ 6,479 ¥ 52,745 ¥ (54) ¥ 52,691 standards require that we plan and perform the audit to obtain reasonable assurance about whether THOUSANDS OF U.S. DOLLARS the financial statements are free of material misstatement. An audit includes examining, on a test Retail Other Elimination Year Ended March 31, 2008 Theme Parks Hotel Business Businesses Total and Corporate Consolidated basis, evidence supporting the amounts and disclosures in the financial statements. An audit also Revenues: includes assessing the accounting principles used and significant estimates made by management, as Revenues from customers $2,723,366 $331,191 $168,719 $194,450 $3,417,726 $—$3,417,726 well as evaluating the overall financial statement presentation. We believe that our audits provide a Inter-segment revenues 37,239 3,863 10,031 66,424 117,557 (117,557) — reasonable basis for our opinion. Total 2,760,605 335,054 178,750 260,874 3,535,283 (117,557) 3,417,726 Operating expenses 2,497,425 275,607 181,754 267,711 3,222,497 (115,620) 3,106,877 Operating income (loss) $ 263,180 $ 59,447 $ (3,004) $ (6,837) $ 312,786 $ (1,937) $ 310,849 In our opinion, the consolidated financial statements referred to above present fairly, in all material Total assets $4,437,499 $879,988 $ 96,926 $718,465 $6,132,878 $1,428,176 $7,561,054 respects, the consolidated financial position of Oriental Land Co., Ltd. and subsidiaries as of March Depreciation and amortization, aggregate $ 369,927 $ 31,999 $ 2,346 $ 32,099 $ 436,371 $ (968) $ 435,403 31, 2008 and 2007, and the consolidated results of their operations and their cash flows for each of Impairment loss of fixed assets $ 3,074 $—$—$ 12,357 $ 15,431 $—$ 15,431 Capital expenditures $ 305,570 $152,261 $ 3,952 $ 64,667 $ 526,450 $ (539) $ 525,911 the three years in the period ended March 31, 2008, in conformity with accounting principles gener- The Companies are primarily engaged in the business areas of Theme parks, Hotel, Retail and Other businesses in Japan. Business segments are classi- ally accepted in Japan. fied based on type and nature of products and similarity of market. Main businesses by segment are as follows: Without qualifying our opinion, we draw attention to the following: Segments Main business (1) As described in Note 12 to the consolidated financial statements, the Company executed pur- Theme park Management and operation of theme parks chase of treasury stocks, based on the resolution of the Board of Directors held on May 8, 2008. Hotel Management and operation of Tokyo Disneyland Hotel Management and operation of Tokyo DisneySea Hotel MiraCosta (2) As described in Note 11 to the consolidated financial statements, the Company decided a change Management and operation of Tokyo Disney Ambassador Hotel Management and operation of Tokyo Palm & Fountain Terrace Hotel of the business segment effectively the fiscal year ending March 31, 2009. Retail business Management and operation of Disney Store Japan Other business Management and operation of IKSPIARI Management and operation of Cirque du Soleil Theatre Tokyo The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the Management and operation of Disney Resort Line Operation of employee cafeterias year ended March 31, 2008 are presented solely for convenience. Our audit also included the transla- Management and operation of theme restaurants, and others tion of yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on (a) There are no unallocated operating expenses. the basis described in Note 1 to the consolidated financial statements. (b) Unallocated assets amounted to ¥150,098 million (US$1,498,134 thousand) as of March 31, 2008 and included primarily cash, marketable securities, investment securities and so on. (c) Depreciation and capital expenditures included amortization and addition of long-term prepaid expenses.

12. SUBSEQUENT EVENT On May 8, 2008, the Board of the Company made a resolution to purchase treasury stocks in accordance with Paragraph 3 of Article 165 of the Japanese Company Law. The purchase was made from May 23, 2008 to June 19, 2008. As a result, the Company purchased treasury stocks from the market as follows: Tokyo, Japan Number of shares: 4,200,079 shares June 27, 2008 Total acquisition cost: ¥24,444 million (US$243,976 thousand)

52 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 53 Corporate Data Investor Information

As of March 31, 2008 As of March 31, 2008

Company Name: Capital Stock: Shares of Common Stock: Oriental Land Co., Ltd. ¥63,201 million Common Stock Outstanding: 95,122,540 shares Note: The Company retired 5 million shares of treasury stock in June 2007. Address: Number of Employees: Stock Listing: Tokyo Stock Exchange, First Section (Code No. 4661) 1-1 Maihama, Urayasu, Chiba 279-8511, Japan 2,193 Investment Unit: 100 shares Established: Number of Stockholders: 129,952 July 11, 1960 Bond Ratings: JCR ······················ AA R&I ······················ AA- Primary Subsidiaries: Share Registrar: The Chuo Mitsui Trust & Banking Co., Ltd. Company Name Established Business Description 33-1, Shiba 3-chome, Minato-ku, Tokyo 105-8574, Japan Maihama Corporation Co., Ltd. February 14, 1994 Management and operation of shopping centers Milial Resort Hotels Co., Ltd. June 12, 1996 Management and operation of hotels Principal Stockholders: Distribution of Stockholders: Maihama Resort Line Co., Ltd. April 9, 1997 Management and operation of monorail National government Number of Shares Percentage Held and local public Green and Arts Co., Ltd. Stockholders organizations December 8, 1997 Landscaping and groundskeeping (Thousands) (%) Individuals and others 4.16% Photo Works Co., Ltd. June 15, 1998 Photofinishing Keisei Electric Railway Co., Ltd. Financial institutions 19,435 20.43 29.19% 15.94% Design Factory Co., Ltd. June 15, 1998 Production of publications Mitsui Fudosan Co., Ltd. 15,180 15.95 Securities companies Chiba Prefecture 3,300 3.46 Bay Food Services Co., Ltd. June 15, 1998 Operation of employee cafeterias 0.37% Keisei Kaihatsu Co., Ltd. 1,980 2.08 Foreign corporations Maihama Business Service Co., Ltd. February 4, 1999 Business services for Oriental Land Group and individuals The Master Trust Bank of Japan, Ltd. 7.57% Other corporations IKSPIARI Co., Ltd. March 4, 1999 Management and operation of IKSPIARI (Trust account) 1,896 1.99 42.77% Note: The Company retired 5 million shares of treasury stock in June 2007. RC Japan Co., Ltd. October 20, 1999 Management and operation of themed restaurants The Dai-ichi Mutual Life Insurance Company 1,640 1.72 Resort Cleaning Services Co., Ltd. October 6, 2000 Costume laundry services Mizuho Trust & Banking Co., Ltd.1 1,480 1.55 Stock Price Range and Trading Volume Maihama Building Maintenance Co., Ltd. June 8, 2001 Cleaning and security services Japan Trustee Services Bank, Ltd. (Trust accounts 4) 1,220 1.28 Stock Price Trading Volume OLC Kitchen Techno Co., Ltd. June 8, 2001 Sales and maintenance of kitchen equipment (Yen) (Thousand Shares) Japan Trustee Services Bank, Ltd. 8,000 Retail Networks Co., Ltd. April 1, 2002 Management and operation of Disney Store Japan (Trust accounts) 1,046 1.10 7,000 E Production Co., Ltd. December 10, 2002 Entertainment production 2 Mizuho Trust & Banking Co., Ltd. 924 0.97 6,000

OLC/Rights Entertainment (Japan) Inc. May 26, 2003 Management of intellectual property rights Notes: 1. Shares held in a pension trust account with Mizuho Trust & Banking Co., Ltd., 5,000 for the benefit of retirement plans of Mizuho Corporate Bank, Ltd. M TECH Co., Ltd. July 29, 2005 Theme park maintenance 4,000 8,000 2. Shares held in a pension trust account with Mizuho Trust & Banking Co.,Ltd., for 3,000 6,000 the benefit of retirement plans of Keisei Electric Railway Co., Ltd. 2,000 4,000

Chronology: 1,000 2,000

0 0 1960 Oriental Land Co., Ltd. (Oriental Land) was 1983 Tokyo Disneyland opened For Further Information, Contact: 2005/1 2006/1 2007/1 2008/1 established (Capital: ¥250 million) 1996 Oriental Land listed its shares on the First Investor Relations Group, Finance/Accounting Division 1962 Oriental Land and Chiba Prefecture concluded Section of the Tokyo Stock Exchange Oriental Land Co., Ltd. the Urayasu District Land Reclamation 1-1 Maihama, Urayasu, Chiba 279-8511, Japan Agreement 2000 IKSPIARI and Disney Ambassador Hotel opened TEL: +81 47 305 2034 FAX: +81 47 381 3556 2001 Disney Resort Line, Tokyo DisneySea and Tokyo 1964 Reclamation work began off the coast of e-mail: [email protected] Urayasu (completed in 1975) DisneySea Hotel MiraCosta opened

1979 Oriental Land and Walt Disney Productions 2002 Oriental Land acquired Disney Stores in Japan (currently, Disney Enterprises, Inc.) concluded 2005 Palm & Fountain Terrace Hotel opened an agreement concerning the licensing, design, The copyrights to the Disney characters and scenes from Tokyo Disneyland, Tokyo construction and operation of Tokyo Disneyland DisneySea, Disney Ambassador Hotel, Tokyo DisneySea Hotel MiraCosta, Disney Resort Line and The Disney Store Japan are owned by Disney Enterprises, Inc. © Disney Enterprises, Inc.

54 Oriental Land Annual Report 2008 Oriental Land Annual Report 2008 55