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*: Approx. ¥180 billion

●Consolidated operating profit: Approx. ¥160 billion

●ROE: Approx. 11%

*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 ¥160 billion
by FY3/25 with annual attendance of approx. 28.5 million 
and net sales per guest of approx. ¥17,000

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 Jan. 30, 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 is estimated to exceed the pre-pandemic level in FY3/24

・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

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

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: January 30, 2024