Visitors of the Theme Park Segment, the core business of the OLC Group, mostly consist of guests from within Japan. Changes in demographics, such as continued population decrease owing to a falling birth rate, and a deterioration of the economic environment in Japan may lead to a decline in attendance and net sales, which could have an adverse impact on the Group’s business results.
Furthermore, failure to fully respond to the emergence of new products and services as leisure options and to changes in customers’ values may lead to a decline in attendance and net sales, which could have an adverse impact on the Group’s business results.

As measures against such risks, we will strive to enhance the value of our theme parks by considering measures from both tangible and intangible aspects even when demand weakens due to changes in demographics and a deterioration of the economic environment in Japan. We will also make efforts to attract more domestic and inbound visitors and increase net sales per guest. We will also conduct market research and analysis to ensure that we can respond to the emergence of new products and services and address changes in customers’ values, thereby maintaining and improving guest satisfaction.

The Resort as a whole, including the theme parks operated by the OLC Group, is sustained by a large number of cast members and their hospitality. Therefore, we place emphasis on employee engagement so that employees may feel job satisfaction in their daily work and a high level of employee friendliness which involves not only the company’s facilities and systems but also employees’ relationships with their colleagues in their workplace. However, insufficient responses to the personnel system, workplace environment and organizational culture may lead to a drop in employee engagement.
This could result in a decline in the level of hospitality provided by the Group’s employees to guests, thereby undermining public trust in the Group and causing serious damage to the Group’s management strategies.

As measures against such risks, we offer support to enhance employees’ job satisfaction and employee friendliness by selecting “employee happiness” as a material ESG issue and setting policies and goals with a target year of 2030.
We will conduct surveys on job satisfaction on a continuous basis. Based on the survey results, each organization will formulate and promote strategies to improve organizational management. To create an employee-friendly working environment, we make efforts to develop a digital environment and improve the workplace facility environment, as well as support the growth of employees by increasing learning opportunities and providing assistance in career development.

The Resort as a whole, including the theme parks operated by the OLC Group, is sustained by a large number of cast members. If the recruitment and development of employees become difficult due to a drop in the working population or other factors, recruiting costs and personnel costs may rise, which could cause serious damage to the Group’s management strategies for securing human resources.

As measures against such risks, we make efforts to appeal to employees and the recruiting market. We will increase employee retention by creating an employee-friendly working environment through improvements to our workplace environment and organizational culture based on an analysis of the trends in resignations. In addition, we will make investments for more efficient personnel allocations before carrying out recruiting activities.

The Resort as a whole, including the theme parks operated by the OLC Group, involves stakeholders that include employees, vendors and guests who come from various backgrounds. Society’s demands that companies address issues related to human rights and diversity have become more sophisticated amid increasing awareness of such issues.
Insufficient efforts to address human rights and diversity issues at the OLC Group and a lack of appropriate efforts for such issues in the supply chain may undermine public trust in the Group, which could have an adverse impact on the Group’s business results.

As measures against such risks, we have selected “diversity and inclusion” and “supply chain management” as two of our material ESG issues and have set policies and goals with a target year of 2030.
In order to promote the overall human rights and diversity initiatives internally, we have established the Corporate Conduct Committee. Specific initiatives include the revision of our human rights policy, the implementation of employee training and awareness-raising on human rights and diversity, and the establishment of a procurement policy, and the implementation of human rights due diligence.
Furthermore, in order to address supply chain risks, we have established the Supply Chain Management Subcommittee, which formulates procurement policies, disseminates the Vendors Code of Conduct, and administers the Voluntary Survey List. We also perform audits of vendors’ human rights violations in accordance with Disney’s standards and diversify risks so that we can take prompt action if a problem arises in the supply chain.

The core business of the OLC Group is conditional on guests visiting our theme parks, which involve many outdoor experiences. A rise in the temperature due to climate change is likely to lead to a decline in attendance and an increase in the costs of countermeasures during the summer, which could have an adverse impact on the Group’s business results. Furthermore, abnormal weather or intensified natural disasters induced by climate change may lead to shortened business hours or closure of the park due to damage to facilities, and have an adverse impact on the Group’s business results arising from an increase in costs of countermeasures and failure to procure products due to damage to the supply chain. In addition, failure to achieve the targets of climate change countermeasures, such as CO2 reduction targets, may undermine public trust in the Group due to the rise of social concerns regarding the negative impact of climate change on the global environment. This could have an adverse impact on the Group’s business results.

As measures against such risks, we have selected “climate change and natural disasters” as a material ESG issue and have set policies and goals with a target year of 2030.
With regard to the reduction of greenhouse gas emissions, we have established the Subcommittee on Climate Change to conduct fact-finding surveys, devise strategies, and implement initiatives to reduce environmental impact.
We also conduct appropriate risk assessments, risk scenario analyses, and strategy formulation for our business by utilizing the disclosure framework recommended by the Task Force on Climate-related Financial Disclosures (TCFD). While formulating business plans from a short- and medium-term perspective, we are also considering devising a long-term business strategy that coincides with the time horizons of the “Net zero GHG by FY2050” target, since the impact of climate change emerges over a long period of time.
(For details of disclosure in accordance with TCFD recommendations, please see our website.)
In measures against heat, we have developed countermeasures at facilities and operational rules that place an emphasis on safety.
We also implement facility measures and periodic facility inspections in line with government standards and give the safety of guests and employees top priority at all times in order to minimize damage caused by extreme weather events.

The Theme Park Segment, the core business of the OLC Group, uses a wide variety of resources including foodstuffs, plastic products, and water for its business operations. We appropriately manage the level of inventory of food and products sold in our theme parks by controlling orders based on demand forecasts. However, any food waste or mass product disposal that occurs due to unavoidable circumstances, or insufficient efforts for contribution to forming a symbiotic relationship with nature may undermine public trust in the Group, which could have an adverse impact on the Group’s business results.
Furthermore, in procuring various raw materials used in our business activities, we take sustainability into consideration in the environmental and social aspects of the supply chain. However, failure to immediately respond to rapid changes in social demand could have an adverse impact on the Group’s business results.

As measures against such risks, we have selected “recycling-oriented society” and “supply chain management” as two of our material ESG issues and have set policies and goals with a target year of 2030.
We have established the Resource Recycling Promotion Subcommittee to conduct fact-finding surveys, devise strategies, and implement initiatives to establish a recycling-oriented society, with particular regard to the adoption of resource-saving services and reduction of waste, use of sustainable resources, contribution to forming a symbiotic relationship with nature. We have also implemented measures to achieve waste reduction targets, such as by ensuring appropriate inventory management and improving order placement precision, and to raise the recycling ratio of resources and water.
In order to ensure sustainable procurement of raw materials, we have established the Supply Chain Management Subcommittee for the timely promotion of responses based on environmental and social aspects.

The OLC Group’s management performance relies on existing businesses such as the Theme Park Segment. We will continue to pursue growth centered around the Theme Park Segment. However, should the growth of the Theme Park Segment slow, the lack of other drivers of growth could undermine the Group’s reputation.

To prevent the emergence of such risks, we will pursue the sustainable growth of the Theme Park Segment by enhancing the value of our theme parks through measures from both tangible and intangible aspects and implementing initiatives for strengthening customer attraction and efforts to increase net sales per guest.
Furthermore, we will take on the challenge of establishing new businesses that will resolve issues and add value to our existing businesses as well as provide growth opportunities. We intend to plant the seeds for the future and make investments on the scale of 10 billion yen by FY2026 with the aim of creating a new business segment by 2030.

To undertake its business, the OLC Group welcomes a large number of guests at its facilities. Its operations are almost entirely concentrated in Maihama. A natural disaster—such as a large earthquake in or around Maihama, a terrorist attack at any of the Group’s facilities or a large-scale facility in Japan or elsewhere, or an outbreak of infectious diseases—is expected to cause harm to guests and employees, damage facilities, impact the surrounding transportation systems and lifelines (electricity, gas, water supply), cause temporary closure and restrictions on theme park attendance based on requests from the national and local government, and trigger a drop in consumer sentiment toward leisure activities. These may have an adverse effect on the Group’s business results, such as reducing its net sales, as well as causing a temporary business suspension.

As common measures against such risks, we have prepared and periodically revised procedure manuals for employees to use in order to alleviate damage that may be caused when the risks emerge. We also provide training and drills, as well as procure and store the necessary materials. Should the events have a material impact on the Group’s business management, we will establish a response coordination division led by the president to create systems to cope with the situation.
In addition to the common measures above, as measures against large earthquakes, we are taking risk finance measures as needed for the purpose of ensuring we have sufficient liquidity on hand to continue our business. To respond to large earthquakes and other potential future disasters, we will secure funds needed to continue our business by using a portion of cash on hand over the near term. As measures against terrorism, we are strengthening security countermeasures, such as by installing metal detectors and X-ray inspection devices at our theme park entrances. As measures against infectious diseases, we implement comprehensive hygiene management of employees and facilities on a daily basis, and take infection prevention measures by periodically implementing employee training and awareness-raising based on information pertaining to infectious diseases provided by administrative agencies, etc.

The OLC Group executes its operations by placing importance on compliance with regard to the operation of its businesses as well as the procurement of related materials and products. However, in cases where a serious industrial accident or a violation of a law or regulation occurs due to negligence on the part of a director or employee, the Group’s business results may be adversely affected as a result of a partial suspension of operations owing to an administrative disposition, undermined public trust in the Group, damage to the brand image, huge expenses incurred due to a law suit, or other consequences.

Among measures to prevent the emergence of such risks, we set forth the OLC Group Compliance Code and Business Guidelines, have built a system for promoting compliance, and engage in education and awareness-raising activities for the Group’s directors and employees. If a director or employee becomes aware of a compliance violation, the whistleblowing contact point receives a report on the violation, carries out the necessary investigations, and rectifies the violation.

The OLC Group possesses customer information pertaining to business execution and confidential information for its sales activities. It also uses a wide range of information systems to provide services and execute its operations. Therefore, any security breach, destruction or falsification involving customer information or confidential information that we use for sales activities due to causes such as cyberattack or assault on internal databases; or any information security incident due to an information system failure resulting in suspension of operations, etc. may result in the Group’s business results being adversely affected as a result of undermined public trust in the Group, damage to the brand image, major expenses incurred due to a law suit, or other consequences.

In measures against such risks, we strive to prevent information security incidents by building a system for information security promotion and raising awareness among the Group’s directors and employees, strengthening monitoring functions for internal networks, and limiting access to information, among other initiatives. Furthermore, when such risks emerge, the situation will be appropriately addressed, the cause will be analyzed, and the scope of impact will be examined. Additionally, we have a system in place to prevent recurrence and to optimize preventive measures.

Safety is given top priority in the design of the products and services we offer at the Resort as a whole, including the theme parks operated by the OLC Group. However, in the event of an accident (e.g., fire, falling of structures or decorations, food poisoning), causing serious damage to our guests, the Group’s business results may be adversely affected as a result of undermined public trust in the Group’s policy of giving top priority to safety, damage to the brand image, huge expenses incurred due to a law suit, or other consequences.

As measures against such risks, we strive to prevent serious accidents from occurring by complying with safety-related laws and regulations and the Group’s own regulations, standards, and manuals, and having organizations other than the supervisory divisions of the relevant risks perform audits on a regular basis.