| A message to stockholders and investors from Kyoichiro Uenishi, Representative Director, President and COO of Oriental Land Co., Ltd. |
Aiming to Achieve Record Operating Income for the Third Consecutive Fiscal Year
Dear Stockholders and Investors:
Amid a challenging economic environment, the OLC Group achieved strong earnings for the fiscal year ended March 31, 2010, with operating income setting a new record following the previous fiscal year's high, despite the fact that Tokyo Disney Resort 25th Anniversary was celebrated during the previous year. These results could not have been achieved without the support of many people including our guests, stockholders and investors. We would like to take this opportunity to express our sincere appreciation for your support.
The OLC Group has continued to make steady progress in strengthening the foundation of Tokyo Disney Resort and we have increased our profitability level based on the "2010 Medium-Term Plan" (fiscal year ended March 31, 2008 to fiscal year ending March 31, 2011). We are committed to continuing to promote this medium-term plan without losing momentum in the fiscal year ending March 31, 2011, the last year of the plan, with the aim of achieving record operating income for the third consecutive year. In addition, we will remain focused on the management of our operations from a long-term perspective in order to sustain the current level of increase in profitability beyond the short term and leverage it to achieve sustainable growth of our corporate value over a long period.
Formulation of the Next Medium-Term Plan with the Aim of Achieving Long-Term Sustainable Growth
The OLC is celebrating its 50th anniversary in July this year. We dedicated the first 25 years or so of our history to efforts such as land reclamation of the Urayasu area and negotiating the licensing agreement to build and operate a Disney theme park. The second 25 years or so was largely devoted to the expansion of Tokyo Disney Resort. In order to realize long-term sustainable growth as we move ahead, it is necessary for us to continue to innovate and reinvent ourselves with the aim of creating new value on a constant basis and to respond strategically to changes in the environment we expect to face in the future.
Commemorating its 50th anniversary this year, the OLC Group has newly formulated the next medium-term plan, the "2013 Medium-Term Plan" (fiscal year ending March 2012 to fiscal year ending March 31, 2014), to ensure that these strategies are executed steadily. Under the new medium-term plan, we will generate a high level of free cash flow on a consistent basis through the sustainable growth of the core business (Tokyo Disney Resort) and allocate such free cash flow to the reinforcement of the foundation for long-term sustainable growth including stockholder returns and the preparations for new growth.
Improvement of ROE through Earnings Growth and Direct Stockholder Returns
We are committed to stockholder returns as one of our most important management policies. With regard to the cash dividends for the fiscal year ended March 31, 2010, we have paid out total dividends of ¥100.00 per share, including a ¥30.00 increase over the previous fiscal year distributed in line with our policy of achieving a target payout ratio of 35% or more of consolidated net income as described in our medium-term plan. This means that we have increased our cash dividends for the ninth consecutive fiscal year. For the fiscal year ending March 31, 2011, we are planning to further increase the dividend by ¥5.00 to ¥105.00 per share. With regard to the repurchases of treasury stock, we acquired 4.5 million shares (¥26.0 billion) of treasury stock in March 2010 and are planning to consider more repurchases in the future according to circumstances.
The OLC Group has improved return on equity (ROE) on a steady basis through earnings growth and direct stockholder returns as described above. We will continue our efforts to realize ROE of 8% or more as early as possible.
As we move forward, we are determined to remain focused on innovation and "bring happiness" not only to our guest, but to you, our investors. We appreciate your continued support.
Sincerely,
Kyoichiro Uenishi
Representative Director, President and COO
May 2010
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