Message from CEO
Chairman and CEO
Aiming to Continue Delivering Wonderful Dreams, Moving Experiences, Happiness and Contentment
For the full fiscal year ended March 2021, we recorded a loss for the first time since Oriental Land was listed due to the long-term temporary closure of our Theme Parks and numerous restrictions imposed on our business operations after reopening, including limits on attendance. Our management environment remains challenging to this day, which is no doubt a cause for concern for our stakeholders. Even under these circumstances, however, we have been receiving many kind words of encouragement. On behalf of the OLC Group, I would like to express my deepest appreciation for the continued understanding and warm support extended to us. Our Group marked the 60th anniversary of its founding last year. We have been declaring within and outside the Group that we are transforming ourselves into a new enterprise, despite of the current adversity. We are thus moving forward to turn this challenging situation into a chance to make a renewed start toward new growth.
Tokyo Disney Resort is currently operated under a new operational standard that gives priority to the safety and security of our Guests and Cast Members. We are reopening attractions and resuming entertainment shows in phases by taking whatever measures we can, based on our consolidated wisdom, making utmost efforts to deliver the greatest possible experience to our Guests within the current environment. At the same time, we are also continuing with our initiatives to minimize the impact of the ordeal on our management, including, for example, rigorously controlling costs and reviewing business operations. Meanwhile, the opening of the Tokyo Disneyland Large-Scale Development area in September 2020 enabled us to reaffirm the value we provide to society. Seeing Guests enjoy novel experiences in the new area, we were convinced that, especially on the current stifling atmosphere permeating the entire society, there exists an ever increasing demand for the value that we deliver to the society through Tokyo Disney Resort business.
At the General Meeting of Shareholders held on June 29, 2021, Kenji Yoshida was appointed as the president and COO, which signified a shift to a new management structure with an eye to the medium- and long-term growth of our Group. While broadly overseeing all operations, Yoshida is working to restore our Group’s current financial performance and formulate and execute strategies from a medium- and long-term perspective, demonstrating his leadership to put our Group on a new growth trajectory. When we turn our eyes to the wider world, we see signs of volatility, uncertainty, complexity and ambiguity continuing to spread in our global business environment. For our Group to sustain growth and evolution amid such adversity, we crucially need to increase values along with our Guests’ need, build a new business model in addition to a new vision that will serve as our constant compass. To this end, we will make agile management decisions and sustainably increase our corporate value to transform our profit structure into one with more liquidity, strengthen resilience to fluctuations, and shift to a sustainable management culture by incorporating environmental, social and governance (ESG) perspectives.
We believe with conviction that “Fantasy Springs,” a new themed port currently under preparation to be opened in FY 2023, will boost the one-and-only value of Tokyo DisneySea and our Resort overall by delivering a totally new experience to our Guests. Our Group has developed into what it is today by adhering to and executing its strong aspiration to provide wonderful dreams, moving experiences, happiness and contentment against all odds. By consolidating such strengths rooted in the DNA of our Group and commonly sharing the goal among all directors and employees, we are determined to pull through the current adversity and leap forward to the next stage.
Oriental Land was founded to contribute to Japan’s culture, health and welfare. Upholding this unchanging goal, our Group will remain wholly committed to achieve it. In our efforts to continue to be a corporation chosen by all our stakeholders, we will keep up our dialogue with them and work to enhance our sustainable corporate value without setting limits. I would like to ask our stakeholders for their continued support from a long-term perspective.
Message from COO
President and COO
I wish to extend my heartfelt sympathies to the people who have been infected with COVID-19 and those whose daily lives have been affected by the spreading infection. I sincerely pray for their speedy recovery and the earliest possible containment of the pandemic.
On June 29, 2021, the baton of leadership was passed to me by Kyoichiro Uenishi, the former president and COO. My mission for the time being is to enable our Guests to have fun in our Resort by taking all possible safety measures with a view to continuing with our business operations amid the extremely challenging external environment. Then, we must swiftly embark on a variety of new measures for regrowth. The “change of leadership to initiate transformation,” as former President Uenishi described it, was one such measure.
Reviewing FY 2020 and looking ahead
FY 2020 turned out to be a tremendously challenging year for our Group, with both Parks forced to close for the entire first quarter. Never before had our Parks been closed for such a long time, but we were delighted to have been able to reopen them on July 1 with the understanding and cooperation of our Guests. Moreover, on September 28, 2020, we also achieved the opening of the largest ever new development area within Tokyo Disneyland after roughly three years of construction work and an investment of approximately 75 billion yen. Through its new section based on the Walt Disney Animation Studios’ film Beauty and the Beast and the Baymax attraction themed on the film Big Hero 6, among others, the new area is offering new experience value to our Guests, and making a steady contribution to earnings following the reopening of our Theme Parks.
FY 2020 was a year in which we thought through what measures we needed to prepare for the next stage. Given the prolonged out-of-the-ordinary situation where attendance had to be limited, we were provided with an opportunity to try out unconventional methods and approaches. I believe we were able to take proactive steps for the future instead of merely remaining on the defensive.
One of the highlights in our Theme Park business will be “Fantasy Springs,” Tokyo DisneySea’s eighth themed port, currently under preparation for its opening in FY 2023. Having been engaged in the preparations as the director of the division leading the project in the past, I am looking forward with confidence to the day the new area will be opened to our Guests. The new area will undoubtedly be a rising star of hope that will guide not only Tokyo DisneySea, but also Tokyo Disney Resort as a whole and the entire OLC Group to a brighter future.
Aiming to contribute to a sustainable society while also achieving long-term sustainable growth
If we are to perpetually provide value to society and continue growing as a corporation, we critically need to incorporate measures to address environmental and social problems into our management and business strategies. We recognize that our Group’s business is premised on a sustainable society. Therefore, we intend to contribute to achieving a sustainable society by helping resolve social issues by way of, for example, pursuing the Sustainable Development Goals (SDGs), while simultaneously achieving long-term sustainable growth by continuing to increase profits as a corporation.
To this end, the key will be to integrate ESG viewpoints into management and produce ESG-oriented measures designed to benefit management, as opposed to simply investing in ESG practices.
Tokyo Disney Resort, our Group’s core business, is a constituent of the equipment industry as well as a labor-intensive industry, which means it exerts a tremendous impact on the environment and on people by way of hiring. It is of great importance to provide our Guests with happiness through our Resort operations while also striving to be a corporate entity that gives consideration to social needs and helps address them through business.
Managing our Tokyo Disney Resort business from ESG perspectives does not only bring direct and indirect quantitative benefit to our management, but also enhances the value we provide to society and eventually increase our Group’s corporate value over the long term if we undertake whatever measures we can through our business. In other words, ESG is a substantial management theme that should be pursued with a long-term perspective in mind.
Above all, the aspiration of each and every employee and the strength of those aspirations provide the key to success. It is no exaggeration to say that we cannot deliver happiness to our Guests visiting Tokyo Disney Resort unless our employees, who are the source of all our strengths, can work with a sense of pride and satisfaction. We therefore should seek to stabilize employment, enhance livelihood stability, and improve the work environment. We have reaffirmed that maximizing our employees’ sense of work satisfaction will lead to the growth of our business, all the more because we are facing a tough situation now.
Amid the changing natural environment, in recent years we have been witnessing various events such as the flooding of rivers, massive wildfires, and changes in the Arctic caused by temperature rises. Also, food loss occurs in huge amounts while many suffer from hunger, and not a few children are deprived of the opportunity to receive satisfactory education. What does the future hold for us humans in such a world? As human beings living in this age and as a corporate entity, we face the question as to what responsibilities we must fulfill for the future.
The starting line for ESG practices, I believe, is to think through what kind of future we should prepare for the next generation of babies. I would like the employees of our Group to start by contemplating and doing what they themselves can do. The accumulation of small actions will produce a huge effect. Among such individual actions, we may find unexpected seeds for ESG practices.
Drawing on our own sound corporate DNA to aim for new growth
Upon receiving the baton of leadership from my predecessor, I was also entrusted with our Group’s own sound DNA, which has been passed down uninterrupted for decades and which I will in turn transfer to the next generation. The DNA that shapes our Group has many features, one of which is the culture of mutual trust that commonly underlies all human relationships within and outside our Group, including those between Guests and Cast Members, suppliers and in-house personnel, superiors and subordinates, senior and junior employees, and among colleagues. Our free and open corporate culture conducive to a workplace environment where frank opinions can be exchanged without hesitation, regardless of one’s position—whether superior or subordinate, experienced staff member or novice—may be another characteristic of the enduring DNA of Oriental Land.
We will fully draw on this fine asset to aim for new growth.
We ask our stakeholders for their continued understanding and support.