ANNUAL REPORT 2009 for the Year Ended March 31, 2009
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 ANNUAL REPORT 2009 for the Year Ended March 31, 2009 Printed in Japan Contents Business Mission 1 Our Presence 1 Financial Highlights 2 Message from Chairman Toshio Kagami 4 Interview with President Kyoichiro Uenishi 6 Feature 10 An introduction of the factors in the success of Tokyo Disney Resort 25th Anniversary and measures for future growth Success of the 25th Anniversary and Further Expansion of ”New Experience Value” Enhancing the Visible Value of Experience 12 Giving Form to Cast Members’ Ideas Enhancing the Non-Visible Value of Experience 14 Strengths of Tokyo Disney Resort 16 The OLC Group at a Glance 17 Review of Consolidated Operations 18 Theme Park Segment 18 Hotel Business Segment 21 Business Mission Retail Business Segment 22 Other Business Segment 23 Our mission is to create happiness and contentment by offering wonderful dreams and moving Corporate Social Responsibility (CSR) 24 experiences created with original, imaginative ideas. Corporate Governance 26 Board of Directors, Corporate Auditors and Corporate Officers 30 Our Presence Financial Section Oriental Land Co., Ltd. (“Oriental Land”) was established in 1960 to Six-Year Summary 32 reclaim land off the coast of Urayasu, Chiba Prefecture, and to construct a Message from the Officer in Charge of large-scale leisure facility with the objective of contributing to the culture, the Finance/Accounting Department 33 welfare and well-being of the Japanese people. In 1983, we opened Tokyo Management’s Discussion and Analysis of Operations 34 Disneyland® and in 2001, we opened Tokyo DisneySea®, the world’s first Consolidated Financial Statements 40 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. Corporate Data 58 The opening of Tokyo DisneySea heralded the full-scale operation of Stock Information 59 Tokyo Disney Resort®, a unique theme resort spanning approximately 2 mil- lion square meters of land near Tokyo. We continuously develop the resort Cautionary Remark Regarding Forward-Looking Statements This Annual Report includes statements about Oriental Land’s plans, estimates, strategies and beliefs. The statements made that are not based on to further raise its appeal. historical fact represent the assumptions and expectations of Oriental Land in light of the information available to it as of June 2009, and should be con- sidered as forward-looking. Aspiring to create new value, Oriental Land will continue developing its Oriental Land uses a variety of business measures to constantly strive to increase its revenues and management efficiency. However, Oriental Land recognizes that there are certain risks and uncertainties that should be considered which could cause actual performance results to differ from those dis- “Fill Your Heart with Energy and Happiness” business— a high-value pursuit cussed in the forward-looking statements. Potential risks could include, but are not limited to, weather, general economic conditions, and consumer preferences. Therefore, there is no firm that energizes and enriches people’s lives. assurance that the forward-looking statements in this Annual Report will prove to be accurate. Oriental Land Annual Report 2009 1 Financial Highlights Oriental Land Co., Ltd. and Consolidated Subsidiaries Fiscal Years Ended March 31, 2009, 2008 and 2007 Revenues Annual Attendance (Billions of yen) (Millions of guests) 27.2 25.5 25.8 25.4 ● Revenues rose to a record ¥389.2 billion, supported by the opening of 389.2 Opening of Tokyo DisneySea 24.8 25.0 24.8 22.1 Tokyo Disneyland Hotel and Cirque du Soleil Theatre Tokyo. 331.1 332.9 344.1 342.4 20 ● Attendance reached a record 27.2 million guests because of the popularity of Opening of Tokyo Disneyland Tokyo Disney Resort 25th Anniversary. ● Operating income increased to a record ¥40.1 billion. 10 10 (Millions of yen) Percent change (Thousands of U.S. dollars1) 0 2009 2007 2009/2008 2009 2008 20052006 2007 2008 2009 84 02 03 04 05 06 07 08 09 FOR THE YEAR: (Fiscal years ended March 31) (Fiscal years ended March 31) Revenues ¥389,243 ¥342,422 ¥344,083 13.7% $3,962,567 Operating Income & Net Income & Cash Dividends per Share & Operating income 40,096 31,144 34,111 28.7 408,185 Operating Margin Net Income per Share Payout Ratio (Billions of yen) (%) (Billions of yen) (Yen) (Yen) (%) Net income 18,089 14,731 16,309 22.8 184,149 70 Capital expenditures2 40,140 52,691 54,807 (23.8) 408,633 40.1 18.1 60 Depreciation and amortization, aggregate 49,733 43,623 42,951 14.0 506,291 34.6 34.1 17.2 55 16.3 38.7 EBITDA3 89,829 74,767 77,062 20.1 914,476 31.1 15.7 196.84 35.6 30.6 14.7 Free cash flow4 27,682 5,663 4,453 388.8 281,807 45 10.4 10.3 32.1 9.2 9.9 9.1 AT YEAR-END: 171.19 171.46 162.73 154.86 35 27.7 Total assets ¥644,992 ¥757,542 ¥699,772 (14.9)% $6,566,141 373,660 (3.7) 3,803,930 Net assets 388,181 385,001 20.4 Interest-bearing debt 193,019 294,320 235,626 (34.4) 1,964,970 (Yen) Percent change (U.S. dollars1) PER SHARE DATA: Net income (EPS) ¥ 196.84 ¥ 154.86 ¥ 171.46 27.1% $ 2.00 Net assets (BPS) 4,109.59 4,079.44 4,046.03 0.7 41.84 20052006 2007 2008 2009 20052006 2007 2008 2009 20052006 2007 2008 2009 Cash dividends 70.00 60.00 55.00 16.7 0.71 (Fiscal years ended March 31) (Fiscal years ended March 31) (Fiscal years ended March 31) (Percent) Amount of change Operating Income Operating Margin Net Income Net Income per Share Cash Dividends per Share Payout Ratio SELECTED FINANCIAL DATA: Interest-Bearing Debt & Operating margin 10.3% 9.1% 9.9% 1.2 pts Total Assets & Net Assets ROA & ROE Equity Ratio Return on assets (ROA)5 2.6 2.0 2.3 0.6 (Billions of yen) (%) (Billions of yen) (%) Return on equity (ROE)6 4.7 3.8 4.3 0.9 757.5 294.3 718.9 Equity ratio 57.9 51.2 55.0 6.7 699.8 4.7 266.9 660.2 645.0 4.5 Payout ratio 35.6 38.7 32.1 (3.1) 4.3 235.6 4.1 202.4 Annual theme park attendance 3.8 193.0 (thousands of guests) 27,221 25,424 25,816 57.9 Revenues per guest (¥) 9,719 9,370 9,309 389.7 385.0 388.2 59.0 52.3 55.0 51.2 375.9 373.7 2.6 Notes: 1. The U.S. dollar amounts are provided for convenience only and have been converted at the rate of ¥98.23 to $1, the approximate rate of exchange in effect at March 31, 2009. 2.6 2. Capital expenditures includes tangible and intangible assets and long-term prepaid expenses. 2.3 2.3 3. EBITDA = Operating income + Depreciation and amortization, aggregate 2.0 4. Free cash flow = Net income + Depreciation and amortization, aggregate – Capital expenditures 5. Return on assets = Net income / Total assets 6. Return on equity = Net income / Owners’ equity 20052006 2007 2008 2009 20052006 2007 2008 2009 20052006 2007 2008 2009 (As of March 31) (Fiscal years ended March 31) (As of March 31) Total Assets Net Assets ROA ROE Interest-Bearing Debt Equity Ratio 2 Oriental Land Annual Report 2009 Oriental Land Annual Report 2009 3 Message from Chairman Toshio Kagami During the fiscal year ended March 2009, the OLC Group achieved positive results with record high revenues and operating income in an extremely severe economic environment. I would like to express my gratitude to the stakeholders of the OLC Group, whose support made this possible. Our Assets We have focused our management resources on the development of approximately 2 million square meters of land 10 kilometers (about 6 miles) from central Tokyo. Over 25 years, we have expanded our functions as a resort with hotels and a theatre, in addition to the two theme parks, working to build experience value available nowhere else. As a result, Tokyo Disney Resort enjoys the support of a wide range of guest segments. The OLC Group owes its relatively stable earnings regard- less of economic conditions to the support of this broad segment of fans. Meeting everyone’s expecta- tions is our responsibility. Our Values The product we provide is our guests’ contentment, or in other words, happiness. These products can vanish in an instant, and because they have no form they cannot be laid aside in inventory. Quality control is extremely difficult. On the other hand, the business of offering contentment to our guests is the greatest joy for us as well. We are grateful to have such enjoyable work, and that joy and appreci- ation are what drive us. We will continue to create new value by never forgetting our original inten- tions, responding flexibly to change, and evolving as individuals. The Cornerstone of Our Medium-to-Long-Term Management In 2010, Oriental Land will celebrate its 50th anniversary. Our first 25 years mainly involved the land reclamation business, whereas the second have principally involved the business of Tokyo Disney Resort. This year marks the start of a significant period of transition as we look ahead to the next October 1972: Joined Oriental Land Co., Ltd. June 1981: Director and General Manager, General quarter-century.