Management Plan

Our goal for 2030

Bringing more "Happiness" to you and the community.

 

Continue to create “Happiness” not only inside the Resort including the Theme Parks, but also for many people in the broader community.

 

Continue to be a corporation desired by society by fulfilling our role in the efforts made toward achieving a sustainable society.

 

Continue to be a corporation in which employees can truly take pride.

Future Direction of Businesses

8 ESG Areas of Materiality

Area of materiality KGI 2030
S Employee happiness Enhance job satisfaction of employees
Result of job satisfaction survey: Positive responses to question on general job satisfaction account for more than 80%
[average of the entire OLC Group]
Happiness of
children		 [Tokyo Disney Resort]
Implement activities aimed at enriching the daily lives
and minds of children		 [Social contribution activities]
Implement activities to foster the development of children,
who are our future
Diversity & inclusion ・Build and implement a human rights due diligence process for designated key human rights issues
・Build systems for implementing business activities in which diversity is respected
Supply chain
management		 ・Ensure that all primary suppliers are informed of and consent to our procurement policy and the OLC Group Vendors
Code of Conduct
・Ensure sustainable raw material procurement for all internally designated items

Contribution to SDGs

Area of materiality KGI 2030
E Measures to address
climate change and
natural disasters		 Reduce greenhouse gas emissions [Scope 1 and 2] by 51% from the FY3/14 level
→ Achieve net zero emissions of greenhouse gases by FY3/51
Recycling-oriented
society		 ・Waste reduction target [weight]: 10% reduction from FY3/17
・Percentage recycled [actual result]: 80%

Contribution to SDGs

Area of materiality KGI 2030
G Stakeholder
engagement		 Ensure appropriate and open information disclosure to stakeholders and place value on interactive communication with them to evolve business
activities and engage in activities that contribute to achieving a sustainable society
Fairness in corporate
management		 Ensure that all laws and regulations and the Corporate Governance Code are complied with, and the management systems in place allow
flexible response to changes and facilitate growth

2024 Medium-term Plan - Overview

Policy : Recovery from the pandemic and take on challenges for the future

Goals Enhance Guests’ experience value
Restore financial performance
●Consolidated operating cash flow*: Record high [¥128.5 billion]
●Consolidated operating profit: At least ¥100 billion
●ROE: At least 8.0%

*Consolidated operating cash flow = Profit attributable to owners of parent + Depreciation and amortization

Theme Park Business Strategy

Goals : Enhance Guests’ experience value

Measures

[1] Reduce limit on daily attendance
+ Seek to even out attendance levels
[2] Provide options
[3] Enhance Theme Park appeal

＋

[4]

Establish efficient Park operation

Aim for a consolidated operating profit of ¥100 billion
by FY3/25 with annual attendance of approx.
26 million and net sales per Guest of ¥14,500

Reduce the Limit on Daily Attendance + Seek to Even Out Attendance Levels

○ Guests’ experience value increased due to reduced waiting times
Parks can be operated with a fixed number of Cast Members
Take measures against future risks including a decrease in the total/working-age population
× Guests are less likely to be able to visit on their desired date

Provide Options

How Guests may desire to enjoy our Parks

Options

Enjoy attractions while also taking time to immerse themselves in the atmosphere of the Park

Ticket

Enjoy the Park without wasting time and meet lots of characters

Ticket + Monetization of experience

Experience something special that is not usually available

Time-limited program

Stay at a hotel and relax, while enjoying additional services

Vacation Packages

Enhance Theme Park Appeal

Continue working on initiatives to enhance Guests’ experience value
・New investments will be made, including large-scale development, and new contents will be introduced to make our Parks more appealing
・Create a sense of change by remodeling existing attractions

Tokyo DisneySea Large-Scale Expansion Project [Fantasy Springs]

Overall view of Fantasy Springs
拡大
Overall view of Fantasy Springs

Area themed to Frozen

Establish Efficient Park Operations

Park
operations
  • Stabilize workload: Decrease the differences in attendance levels
    throughout the year to operate our Parks with a smaller number of
    Cast Members than we had in the pre-pandemic days
  • Promote labor-saving measures: Promote mechanization and review
    service processes to concentrate on necessary services
  • Utilization of IT: Efficient use of Tokyo Disney Resort Shopping service,introduction of mobile order service in Park restaurants

Cost
control
  • Costs are expected to increase due to the opening of Fantasy
    Springs and new Disney Hotels
  • Depreciation and amortization expenses are estimated to be ¥75
    billion level in FY3/25
  • Minimize the increase in costs resulting from restored performance
Reference: Projection of Non-consolidated costs [vs. FY3/18]
Personnel
expenses
  • The number of part-time Cast Members will decrease, but personnel expenses will remain the same as a result of improved treatment
Miscellaneous
costs
  • Increase in new costs related to Tokyo Disneyland LargeScale Development Area, Fantasy Springs, and new investment in systems
  • By the continual effort of cost control, increase in costs related to marketing and etc. will be minimized

Hotel Business Strategy

●Introduce two new hotels to address diversifying Guest needs

●Establish overwhelming competitive advantage; further enhance appeal
●Establish long-term sustainable earnings base by effectively using management resources

Human Resource Strategy

Seek transformation into a sustainable HR structure
while maximizing job satisfaction

The
point		 [1] Develop human resources and organizations capable of improving Guest
services and improving/reforming operations on the basis of new way of
thinking
[2] System where high added value can be provided by a limited number of staff

Direction of efforts
Organizational management Mental and physical health
Review working conditions of
Cast Members		 Comfortable facilities and
digital environment

Financial Policy

Operating cash flow* Approx. ¥350 billion during the 2024 Medium-term Plan period
　　*Operating cash flow = Profit attributable to owners of parent + Depreciation and amortization
Allocation policy Allocate operating cash flow* by giving priority to investment
Funds allocation Investment In addition to investment in Theme Park Segment, we will invest
in ESG and start sowing for the future
• Capital expenditure ¥160 billion
• Remodeling work ¥75 billion
Shareholder
return		 • Under our policy of aiming for a steady payout of cash dividends, we
will aim to restore dividends to the pre-pandemic level during the
2024 Medium-term Plan period
• The acquisition of treasury shares will be considered based on a
comprehensive analysis of our business environment and financial
performance
Debt
repayment		 Approx. ¥60 billion

Cash on hand [1] Working capital [for several months]
[2] ¥50 billion in capital for continuing with capital expenditure even in
　the event of an emergency such as an earthquake. [In addition, we
　have ¥150 billion in a line of credit for earthquake risk
　countermeasures such as working capital for emergencies.]
[3] Investment capital for growth in and after FY3/26

Development Policy Going Forward

Remodeling of Tokyo Disneyland’s “Space Mountain” and its surrounding environment

This is an image and does note show an exact representation of the development site.

Opening year 2027
Planned investment value Approx. ¥56.0 billion (including remodeling of surrounding facilities)
Outline Space Mountain, an attraction in Tomorrowland, will be renovated with the addition of enhanced performance and immersive special effects. Its surrounding area will also be remodeled by adding light and sound features, drawing Guests into a spectacular world of light and soundscapes.
Development policy
going forward		 Create a foundation for maximizing the potential of Tokyo Disney Resort
・Existing attractions Make investments to increase appeal and provide Guests with constantly changing Parks
・Backstage Establish a comfortable work environment, create land for future development, etc.

Reference Data

Please look at Oriental Land at a Glance to see more information. We provide details of the Medium-Term Plan.


Format of the issue: A4 size, 6pages
Last updated: April 27, 2022