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
Total score of employee engagement survey: 71 [OLC Group-wide]
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

FY3/25 Target

[Revised in Oct. 2023]

FY3/25 Forecast

●Consolidated operating cash flow*

¥180 billion level

¥185.1 billion

●Consolidated operating profit

¥160 billion level

¥170 billion

●ROE

11% level

12.1%

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

Forecast for FY3/25 is expected to exceed the target level
of the mid-term plan.
We will continue to actively take on challenges aiming for even higher level.

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

Forecast for FY3/25 is expected to exceed the target level
of the mid-term plan.
We will continue to actively take on challenges aiming for even higher level.

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

Set a lower limit on daily attendance
・Aim to enhance guests’ experience value by eliminating the extremely long waiting time that has occurred on some days and shortening the waiting time to a constant level throughout the year

・The optimal attendance limit will be verified in overall consideration of guests’ experience　value and operational circumstances

・Reduced waiting times result in rises in net sales per guest as well

Even out attendance levels
・Use the variable pricing of tickets and other new measures

Note: Continue working on the attendance measures over the long term beyond the 2024Medium-term Plan period in view of the holiday schedule in Japan

Provide Options

Under 2024 Medium-term Plan, expand the range of optional services for guests to widely meet their needs with the aim of enhancing their experience value and our earnings.

Examples of guest options

1-Day Passport: Fantasy Springs Magic

・Fee-based (Adult: \22,900-25,900)

♦Park admission + Guests can enjoy attractions at Fantasy Springs without specifying a time in advance and with a reduced wait time

・Guests either staying at Tokyo DisneySea Fantasy Springs Hotel or who have booked an eligible Vacation Package plan

Disney Premier Access

・Fee-based (\1,500-2,500)

・Available at 11 contents* in total in two Parks

Tokyo Disney Resort 40th Anniversary Priority Pass

・Free of charge

・Available at 13 attractions* in total in two Parks

Vacation Packaes

*As of Apr. 26, 2024

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]

Opening
schedule

June 6, 2024

Investment value

Approx. \320 billion

Area

Approx. 100,000㎡ [approx. 140,000㎡ including backstage area]

Outline

 Themes of the areas Frozen

Facilities

Attractions：1

Restaurants：1

Tangled

Attractions：1

Restaurants：1

Peter Pan

Attractions：2

Restaurants：1

One shop

One Park-integrated hotel [475 guest rooms, including luxury-type rooms]

Effect of the investment

Consolidated net sales to be boosted by approx. \75 billion on an annual basis

[Breakdown of approx. \75 billion]

●Increase in attendance resulting from expanded capacity of facilities

●Sales of fee-based products such as Disney Premier Access

●Increase in hotel revenue [about 20% of \75 billion]

Note: As the figure was calculated presuming stable operations throughout the entire fiscal year, it differs from the figure incorporated into the FY3/25 financial target.
Overall view of Fantasy Springs
拡大
Overall view of Fantasy Springs

Area themed to Frozen

Establish Efficient Park Operations

Park
operations

●Streamlined operation structure ●Promote labor-saving measures ●Utilization of IT

Cost
control
  • Costs are expected to increase due to the opening of FantasySprings and new Disney Hotels
  • Depreciation and amortization expenses are estimated to be ¥70 billion level in FY3/25
  • Minimize the increase in costs resulting from restored performance

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. \460 billion during the 2024 Medium-term Plan period

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 \215 billion

・Remodeling work \90 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

　→Dividend amount in FY3/24 exceeded the pre-pandemic level 
      Further increase of dividends is projected in FY3/25

・The acquisition of treasury shares will be considered based on a comprehensive analysis of our business environment and financial performance
   →Plan to buyback 1.8 million shares (planned) and cancel the same number of treasury shares during the period between FY3/25 and FY3/26 (planned)

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

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

Theme Park Development Policy Going Forward

Development
policy going
forward		 Create a foundation for maximizing the potential of Tokyo Disney Resort
Onstage Make investments to increase appeal and provide guests with constantly changing Parks
Backstage Establish a comfortable work environment, create land for future development, etc.

New attraction based on the world of Disney film Wreck-It Ralph coming to Tokyo Disneyland

Opening
schedule		 After FY3/27
Investment value TBD*
*As soon as it’s decided
Outline ●The new attractions will be created by transforming
the existing Buzz Lightyear’s Astro Blasters attraction
●An indoor shooting-type experience

Tokyo Disneyland Attraction Space Mountain and surrounding area to be renovated

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

Opening
schedule		 2027
Investment
value		 Approx. ¥56 billion [including cost of new facilities in the surrounding area]
Outline ●Space Mountain 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

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

About ¥330 billion

(Mostly shipbuilding costs, but also includes startup and contingency funds*, etc.)

*A certain amount of contingency funds is allocated, taking into account risks such as further depreciation of yen and rising material costs 
 

Registry

Japan

(planned)

Guest room types
 

Designed based on Disney Wish cruise ship that started service in 2022
Tonnage About 140,000 gross tons Number of guest rooms

About 
1,250 rooms

 Capacity About 4,000 persons Number of crew About 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


B. Contribution to corporate value and financial performance
 

●Disney’s highly original activities and entertainment offered by Disney cruises
●Expertise cultivated through experiences of management in Theme Park business
    and Hotel business, and strong partnership with Disney Enterprises, Inc.　  
●Tokyo Disney Resort’s customer platform
 

●The number of cruise passengers is increasing every year in Japan, with further growth expected
●There is plenty of potential to develop the cruise market in Japan, targeting families and younger generation with the uniqueness of Disney cruises
●Depending on operation of our first cruise ship, operating multiple ships will be expected in the future

＊Disney Enterprises, Inc. has been engaging in and achieving growth in its cruise business for more than 20 years.
We can harness their expertise, which will also add to our strength.

 

 

Contribution to Materiarity

Employee happiness

Happiness of childre

Diversity & inclusion

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.

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, 7pages
Last updated: July 9, 2024