“Happiness Creates Value”
Total Page:16
File Type:pdf, Size:1020Kb
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.