Management Plan

We have announced 2035 Long-term Management Strategy on April 28, 2025.

Our Goal for 2035

What the OLC Group aspires to be

As a pioneer in the creation of happiness,
achieve what the Group aspires to be and contribute to society

Bringing more “Happiness” to you and the community.

To maintain alignment with Our Goal for 2030 and strengthen our initiatives for the future, we have formulated Our Goal for 2035 by evolving the existing concept

What the OLC Group aspires to be
  • Provide enjoyment that drives people into tomorrow through spaces and times where diverse people can share joy, laughter, and inspiration
  • Cherish the world that nurtures and sustains us, and contribute to a sustainable society
  • Continue to be a corporation in which employees can truly take pride by expanding the OLC Group's corporate value

Financial targets

Promote our Long-term Management Strategy with the aim of further developing and evolving our Group, and achieve financial targets

Growth through business

Theme Park Segment

Tokyo Disneyland®: Redevelopment within Tomorrowland area

Attraction set in the world of Wreck-It Ralph

Artist Concept Only

Investment

amount

¥29.5 billion

Scheduled

opening

Spring 2027

Development of entire area surrounding Space Mountain

Artist Concept Only

Investment
amount

¥70.5 billion

Scheduled

opening

2027

Conceptual image of theme park area redesign

Artist Concept Only

Artist Concept Only

Attendance

Establish a solid customer acquisition platform to achieve even higher attendance

Net sales per guest

Adapt to guests’ diverse needs and upgrade existing services

New revenue sources

Establish new revenue models for the Theme Park Segment that allow us

to respond flexibly to changes in the external environment

Cruise business

Build a new pillar of growth by entering the cruise business,
which has strengths not found in our existing businesses

Overview of New Business (Disney Cruises)

Agreement with Disney Enterprises, Inc
  • Oriental Land has the rights pertaining to the development and operation of the Japan-based Disney cruises
  • Contract period can be extended up to a period of 39 years from start of service
  • Royalty* to be paid in accordance with net sales　
    *Not subject to the effect f exchange rate fluctuations

Services to be offered
  • Highly original Disney activities and entertainment aboard the ship
  • Guest rooms of a variety of grades and types; Diverse dining options
  • Hospitable services, etc.

Scheduled start of services

FY3/29

Investment value

Ship’s body: ¥290 billion / Contingency funds: ¥40 billion   

*Assumed exchange rage: ¥165/euro, ¥155/dollar

Registry

Japan

(planned)

Ship design

Designed based on "Disney Wish" cruise ship that started service in 2022

Tonnage

Approx. 140,000 gross tons

Number of guest rooms

Approx. 
1,250 rooms

Capacity

Approx. 4,000 persons

Number of crew

Approx. 1,500 persons

A.Cruise services planned at this point point

Route

Cruises mainly depart and arrive at ports around Tokyo metropolitan area

Length of cruise

2 to 4-night short-term cruises

Price per person

A wide range of prices from the ¥100,000 range to ¥300,000 range* (one cruise per person)

*Price for the most common type of guest room

Target

Families, younger generation, overseas inbound travelers

Contribution to financial performance
  • Annual net sales and number of passengers are expected to reach approx. ¥100 billion and 400,000, respectively, within the first several years. Operating margin is estimated to be a level on a par with the Theme Park Segment.
  • Annual depreciation and amortization expenses in the ¥20 billion range are expected. Statutory useful life of the ship is 15 years.
  • Profit is assumed to be generated from FY2029 when full-year operation is scheduled
  • We are closely examining the upside of net sales while aiming for the upper 20% range in operating margin within the first several years
  • Operating margin is expected to improve further after depreciation
  • A foreign exchange forward contract will be executed to hedge against exchange risks for approxmately half of the amount

 

The launch of the second ship will be considered when the first ship is successfully on track.

The OLC Group’s unique activities that help enhance corporate value

Creation of social value through ESG activities

We have restructured our ESG Materiality areas, and will implement initiatives in accordance with their respective standpoints and purposes

Measures to conduct management with a focus on capital cost and stock price

  • We will calculate our capital cost* and utilize the outcome to evaluate the return on capital and to make investment decisions
    *Capital Cost: calculated based on our equity cost, which is calculated using CAPM
  • We are aware that our ROE keeps exceeding our equity cost
  • Our price-to-book ratio [PBR] exceeds 1. We are aware that the market expects growth potential; on the other hand, PBR decreased from FY2023 due to a fall in our stock price
  • ROE for FY2025 is projected to be 11.1%, exceeding equity cost

FY2022

FY2023

FY2024

ROE

10.2%

13.5%

12.9%

Equity cost

4.3%

5.1%

6.6%

Specific initiatives

Increase future cash flow and future profit
  • Aim to grow profits not only by strengthening and leveraging the ability of Tokyo Disney Resort to bring in customers but also by entering the cruise business

Reduce capital cost
  • Make growth investments and conduct share repurchase by utilizing cash reserves* and debt repayment capacity in addition to operating cash flow
    *Cash reserve that can be used for growth investment and capital expenditure
  • Promote sustainability management and strengthen investor relations activities
  • Aim to increase dividend payout ratio to 30% by 2035
  • Stay aware of the issue of overhang and take the best possible action by identifying the situation with a release of the Company’s shares in advance

Reference Data