Land Oriental Co., Ltd. ANNU al REP or T 2010 s T es he pin Art of Hap Oriental Land Co., Ltd. 1-1 Maihama, Urayasu, Chiba 279-8511, Japan “Oriental Land,” Oriental Land’s equivalent in Japanese, and the Oriental Land logo are ANNUAL REPORT 2010 registered trademarks or trademarks of Oriental Land Co., Ltd. in Japan and overseas. The names of other companies, other logos, product names, brands, etc., mentioned in this annual report www.olc.co.jp/en are registered trademarks or trademarks of Oriental Land Co., Ltd. or the applicable companies. www.tokyodisneyresort.co.jp/index_e.html Printed in Japan Business Mission Toward a New Stage of Growth Our mission is to create happiness and contentment Our ability to open up new and unknown by offering wonderful dreams and moving worlds—that is our driving force experiences created with original, imaginative ideas. The path we have traveled over the past 50 years has had many ups and downs along the way. However, thanks to the help and support we have received from many people along the way, we overcame numerous trials We aim to constantly maintain a perspective at the and tribulations. forefront of each era as we strive for emotion as a company. During this period, the consistent strand that has remained throughout As we move ever closer to our ideal, we have a firm the Company’s history has been our ability to open up new and unknown conviction in its realization. worlds. This is our driving force—it will sustain us for the next 50 or 100 years as we boldly continue our journey. Our greatest asset is our imagination. It may be said that imagination is the Earth’s only By steadfastly upholding this legacy and blazing a trail toward a new era, inexhaustible resource. Utilizing this asset, we pursue we will aim to realize long-term, sustainable growth in corporate value. our business of bringing abundant humanity and happiness. Flow of Oriental Land Growth In the lives of people today, emotions that we tend to cast 1960 1983 2010 aside, dreams that we harbor deep in our hearts, moving Oriental Land Co., Ltd. established Tokyo Disneyland opened Oriental Land 50th Anniversary experiences that uplift our souls, joy that makes life worth 50 years living, a true sense of peace that provides us with First Half Second Half Toward a new stage of growth rejuvenation… Reclamation, then the agreement From a theme park to a theme resort with Disney It is the mission of Oriental Land to bring all of these to Capitalize on the each and every person. full potential of our unique competitive advantages Establishment of unique Accumulating our unique competitive advantages competitive advantages Period of continuous generation of free cash flow We have pursued this mission with pride. Let us introduce Oriental Land (OLC)’s 50 years of constant progress as we have striven to realize this mission. 5 50 Years of Continually Creating New Value First Half Reclamation, then the agreement with Disney 1960 “It was our dream to let the children of Japan Oriental Land Co., Ltd. established see and feel the wonder of Disneyland.” OLC was established in July 1960 to reclaim land off the coast of Urayasu, Chiba Prefecture, and to construct a commercial area Our dream and leisure facilities with the objective of contributing to the cul- ture, welfare and well-being of the Japanese people. The com- —“Best in the Orient” pany’s vision of developing the Orient’s best leisure facilities, “Oriental Land,” directly became the Company’s name. Shortly after the company’s establishment, we didn’t even have our own office. Our headquarters comprised a small corner of We didn’t have a building for the third floor of the Keisei Electric Railway Co., Ltd. head office building, in Keisei’s Stock Department. We didn’t even have our our headquarters—if fact, we own telephone. Hence, each time we needed to use the tele- phone, we had to ask to borrow one from the department next didn’t even have our own office to ours. It is likely that the mental toughness that has developed at OLC was driven by our very modest beginnings. 1979 1982 In May 1964, a commencement ceremony was held for the start of Before we began, this was all reclamation work off the coast of Urayasu. At the time, the expan- Signing of the agreement between OLC and the Walt Disney Productions At that time Tokyo Disneyland® was constructed sive land area that would later become Tokyo Disney Resort® was (currently the Disney Enterprises, Inc.) part of the sea still part of the sea. Establishment of unique competitive advantages Premium Location Proven Partnership Own vast land in the superb location Only Oriental Land operates Disney theme parks in Japan 1. Extensive Land Approx. 2 million square meters of contiguous land 10 kilometers License Agreement for Japan (6 miles) from the city center Scope 2. Immense Market Management and operation of Tokyo Disney Resort in Japan Population of approx. 30 million with substantial disposable Royalties income living within a 50-kilometer (30-mile) radius Proportionate to revenues (yen-denominated) 3. Convenient Access Note: OLC has no capital or personal relationship with the Disney Enterprises, Inc. but 15 minutes by train from Tokyo Station the two companies have enjoyed a highly positive relationship for more than 25 years. 50-60 minutes by shuttle bus from Narita and Haneda airports Keisei Electric Railway Co.,Ltd. head office building Urayasu area before reclamation Courtesy of Urayasu City meusium (as Oriental Land Co., Ltd. was established) 1 2 Second Half From a theme park to a theme resort “When we create something new here, we must “Our potential is still great—even greater than approach it with an imagination over the sea” what we have achieved until now.” 1983 2001 2008 2010 Tokyo Disneyland® opened Tokyo DisneySea®, Tokyo DisneySea Hotel MiraCosta and Tokyo Disney Resort 25th Anniversary, Tokyo Disneyland Hotel and Oriental Land 50th Anniversary Disney Resort Line opened Cirque du Soleil Theatre Tokyo opened Accumulating our unique competitive advantages Our Competition in the Market Traditional Hospitality Sustaining Interest Strong Finances The OLC’s Share of the 44.5% Japanese Leisure Market The source of our strength is human resources; the cast Creating a place of dreams where guests will gain a Implement ongoing additional investment based on members provide magnificent hospitality whole new experience of happiness and wonder at generating stable cash flow every visit Amusement and Leisure Parks: Market Size and the OLC’s Share Intangibles ppeal an n a d c 648 High Guest Loyalty High Employee Loyalty the ap 632 630 643 640 g ac Outstanding Service Quality en i tr ty The source of our strength is human S Raise the level of Guest Satisfaction Demand for Happiness Raise the level of Employee Satisfaction resources; the cast members provide 44.5 magnificent hospitality 39.7 39.6 40.3 40.2 Expand foundation of Tokyo Disney Resort fans Provision of Happiness Secure employees with high motivation Attract Investment more Tangibles guests A wide range of supporters acquired over a period spanning • Joy of working in a business that has an objective of fulfilling guests’ Ongoing Investment more than 25 years. emotional satisfaction. Creating a place of dreams where guests will gain a whole new • Values shared among all employees. In 2004 2005 2006 2007 2008 experience of happiness and wonder cre flow High employee loyalty is linked to the continuation ase cash (CY) High guest loyalty is linked to the stability of earnings at every visit Market Size (Billions of Yen) OLC Group’s Share (%) of high-quality operation Source: White Paper on Leisure 2009. OLC Group’s market share is calculated using data for each fiscal year, not each calendar year. Strengthen appeal and capacity 3 4 Theme of Annual Report 2010 The Art of Happiness —The essential thing we need to continue bringing happiness to guests— Happiness—a contented heart We want to bring happiness to guests by providing the dreams, moving experiences, enjoyment and contentment that no one could have imagined. This has been our hope since OLC was founded 50 years ago, and continues to be our unchanging hope now and in Contents the future. Business Mission 50 Years of Continually Creating New Value 1 The Art of Happiness Eleven-Year Financial Highlights 8 What is the essential thing we need to continue bringing Message from the Chairman and the President 10 happiness to guests? That is our resolve—our will to go on Feature: The Art of Happiness 15 evolving and changing ourselves. President’s Outline of the OLC Growth Strategy 16 Front-line Challenges from a Manager’s Perspective 22 To continue bringing happiness for another 50 or 100 years The OLC Group at a Glance 27 time, we need to make today even better than yesterday. Review of Consolidated Operations 28 Theme Park Segment 28 With the teamwork of 28,000 people working toward this Hotel Business Segment 31 common goal. Other Business Segment 32 OLC Group Corporate Social Responsibility (CSR) 33 Board of Directors, Corporate Auditors and Corporate Officers 44 Financial Section Six-Year Summary 46 FAC T BO O K 2 0 1 0 Message from the Officer in Charge of Corporate 2010年3月期 FACT BOOK 2010 For the Year Ended March 31, 2010 Strategy Planning and Finance / Accounting 47 Fact Book 2010 Management’s Discussion and Analysis OLC’s provides a wide range of long- 目次 ■ Contents 連結 指 標 ■ Financial Results and Key Indicators (Consolidated) 1 有利子負 債 の 状 況■ Interest-Bearing Debt 3 of Operations 48 セグ メ ン ト 情 報 ■ Segment Information 5 セグ メ ン ト 別 主 要■ 施 Principal 設 デ Facility ー タ Data Classified by Segment 7 term, historical data, including financial indicators and テー マ パ ーク データ■ Theme Park Data 9 連結 財 務 諸 表 ■ Consolidated Financial Statements 13 単体 財 務 諸 表 ■ Nonconsolidated Financial Statements 17 業界動 向 ■ Market Data 21 Consolidated Financial Statements 54 quantitative management data.