October 30, 2014 Oriental Land Co., Ltd.

Transcription

1 October 30, 2014 Oriental Land Co., Ltd. Kenji Yoshida Director of Finance/Accounting Department

2 Consolidated Statement of Income Half Ended 9/13 Half Ended 9/14 Net Sales (7.3) (3.2)% Theme Park Segment (5.2) (2.8)% Hotel Business Segment (1.9) (6.3)% Other Business Segment (0.0) (0.3)% Operating Income (4.4) (7.7)% Theme Park Segment (2.9) (6.0)% Hotel Business Segment (1.6) (19.5)% Other Business Segment % Ordinary Income (2.6) (4.5)% Net Income % Operating income dropped because the current year follows on the heels of Tokyo Disney Resort 30th Anniversary 3 Theme Park Segment [1] Half Ended 9/13 Half Ended 9/14 Net Sales (5.2) (2.8)% Theme Park Attendance [million people] (0.26) (1.7)% Net Sales per Guest [ ] 10,920 10,769 (151) (1.4)% Ticket receipts 4,486 4, % Merchandise 4,108 3,924 (184) (4.5)% Food and beverages 2,326 2,280 (46) (2.0)% Decrease in theme park attendance Reached the second highest attendance for the first half under the influence of Tokyo Disney Resort 30th Anniversary held in the previous fiscal year Tokyo Metropolitan Area Breakdown of Guests by Region 64.9% 66.6% Decrease in net sales per guest Other areas Decrease in merchandise sales in Japan 30.8% 28.1% Decrease due to a termination of selling Overseas Tokyo Disney Resort 30th Anniversary 4.3% 5.3% related products 9/13 9/14 Theme park attendance achieved the second highest figure after the previous year 4

3 Theme Park Segment [2] Half Ended 9/13 Half Ended 9/14 Net Sales (5.2) (2.8)% Operating Income (2.9) (6.0)% Decrease in operating income Decrease in net sales Increase in fixed and miscellaneous costs (0.7 billion) Removal costs related to the termination of The Legend of Mythica (1.0 billion), etc. Decrease in depreciation and amortization expenses billion Note: Personnel expenses were roughly on a par with the previous fiscal year Operating income declined due to the decrease in net sales 5 Hotel Business Segment Half Ended 9/13 Half Ended 9/14 Net Sales (1.9) (6.3)% Operating Income (1.6) (19.5)% Decrease in occupancy rates because this year follows on the heels of Tokyo Disney Resort 30th Anniversary Occupancy Rates *Please refer to Supplementary Materials [P.4] for average charge per room [actual results] Tokyo Disneyland Hotel Tokyo DisneySea Hotel MiraCosta Disney Ambassador Hotel 9/13 9/14 9/13 9/14 9/13 9/ % 96-99% 96-99% 96-99% 96-99% 91-94% Operating income decreased eased owing to the drop in net sales Other Business Segment Half Ended 9/13 Half Ended 9/14 Net Sales (0.0) (0.3)% Operating Income % Net sales and operating income stayed at the same level as the previous fiscal year 6

4 Net Income Half Ended 9/13 Half Ended 9/14 Operating Income (4.4) 4) (7.7)% 7)% Non-operating Income (0.0) (6.1)% Non-operating Expenses (1.9) (83.1)% Ordinary Income (2.6) (4.5)% Income Taxes (2.9) (13.8)% Net Income % 1.9 billion decrease in non-operating expenses Decrease in loss on bond retirement and interest expenses Impact of the debt assumption implemented in the previous fiscal year 0.3 billion increase in net income Decrease in income taxes Termination of special corporate tax for reconstruction, etc. Net income rose due mainly to a decline in income taxes combined with a smaller drop in operating income, setting a new record 7 Consolidated Statement of Income Initial Forecast for 1st Half Ended 9/14 Half Ended 9/14 Net Sales % Theme Park Segment % Hotel Business Segment % Other Business Segment % Operating Income % Theme Park Segment % Hotel Business Segment % Other Business Segment % Ordinary Income % Net Income % Both net sales and operating income far exceeded the forecast by the success of theme park segment 8

5 Theme Park Segment Initial Forecast for the 1st Half Ended 9/14 Half Ended 9/14 Net Sales % Operating Income % Increase in operating income Increase in net sales Increase in theme park attendance owing to favorable reception of new contents such as Once Upon a Time and Jungle Cruise: Wildlife Expeditions in Tokyo Disneyland and special events held at both parks, etc. Increase in net sales per guest because of strong sales of Duffy related products (Gelatoni, etc.) Decrease in merchandise sales cost ratio, increase in food/beverages sales cost ratio about billion s in the composition ratio of product categories, etc. Increase in personnel expenses about (2.0 billion) Increase in performance bonus and work hours of part-time employees Decrease in fixed and miscellaneous costs about billion Costs postponed to the 2nd half about billion, etc. Mainly increase in net sales pushed up operating income 9 Consolidated Net Sales and Operating Margin [1st Half] Quarterly Consolidated Operating Income [1st Half] Net Sales Operating Margin 2Q Operating Income 1Q Operating Income % 24.2% Q % % 15.4% 13.8% Impact of the earthquake 9/09 9/10 9/11 9/12 9/13 9/ Impact of the 1.1 earthquake (3.0) 9/09 9/10 9/11 9/12 9/13 9/14 Both net sales and operating income achieved the second highest figure after the previous year 10 1Q

6 II. Forecast for the Full Year Consolidated Statement of Income Initial Forecast for the Full FY 3/15 Revised Forecast for the Full FY 3/15 Net Sales % 8.6% Theme Park Segment % Hotel Business Segment % Other Business Segment % Operating Income % Theme Park Segment % Hotel Business Segment % Other Business Segment % 1% Ordinary Income % Net Income % Theme Park Attendance [million people] % Net Sales per Guest [ ] 10,620 10, % Capital Expenditure* (2.6) (6.1)% Depreciation and Amortization* * (0.4) (1.1)% 1)% * For the breakdown, please refer to Supplementary Materials. Forecast for the full year is revised upward 12

7 II. Forecast for the Full Year The 2nd Half Initial Forecast for the 2nd Half Ending 3/15 Revised Forecast for the 2nd Half Ending 3/15 Net Sales Operating Income Theme Park Segment Hotel Business Segment (0.3) (5.8)% Other Business Segment % 1.6 billion increase in theme park segment Increase in net sales Decrease in merchandise sales cost ratio, increase in food/beverages sales cost ratio about billion Increase in personnel expenses about (2.0 billion) Increase in performance bonus and work hours of part-time employees Increase in fixed and miscellaneous costs about (5.5 billion) Costs related to large-scale investment project about (1.5 billion) Costs postponed from the 1st half about (1.5 billion) Facility renovation costs, marketing expenses, etc. Operating income is expected to increase despite a rise in costs 13 II. Forecast for the Full Year Consolidated Net Sales and Operating Margin Consolidated Operating Income and Net Income Net Sales Operating Margin Operating Income Net Income % % 18.6% Impact of the earthquake % [Initial 24.2% 22.4% 19.9 [Initial [Initial [Initial [FY] 3/10 3/11 3/12 3/13 3/14 3/15 [FY] 3/10 3/11 3/12 3/13 3/14 3/15 Although net sales and operating income decrease from the previous fiscal year, forecast remains at a high level 14

8 Yuichi Katayama Executive Director and Executive Officer Investment to actualize the greatest value of the theme park OLC continues to raise the level of hospitality provided by Cast Members and will implement following investment. Amount of investment in the Theme Park Segment 500 billion level [Total amount from FY ending 3/15 to FY ending 3/24] Orientation of Investment Tokyo Redevelopment of Fantasyland [renovation and expansion] Disneyland Investment e t in other new products Tokyo DisneySea Both Parks Development of new themed port in an area south of Lost River Delta Investment in other new products Development of special events Preparations for creating a comfortable environment Various improvements [including maintenance and preparation of infrastructure] Investment in On-Stage About 400 billion Investment for enhancing value About 250 billion Investment for renewal and improvement About 150 billion Backstage Strengthen the operations base, including support functions, etc. Investment in Backstage About 100 billion Aim to maximize the value of the theme parks by enhancing attractiveness in both physical and intangible ways 16

9 Large-scale development plans for both parks Direction Large-scale developments which have great impact on enhancement of theme park value Increase capacity of both parks Tokyo Disneyland Redevelopment of Fantasyland [renovation and expansion] Overview Overall redevelopment of Fantasyland with mulitple major attractions, shops, restaurants and other facilities Tokyo DiensySea Development of new themed port in an extension area Overview Development of multiple major attractions, shops, restaurants and other facilities for a new themed port Period of Introduction After the 2016 Medium-Term Plan period Period of Introduction After the 2016 Medium-Term Plan period Area of Development The entire existing Fantasyland [renovation] and parts of Tomorrowland and backstage areas [expansion of site] Note: This will nearly double the size of the existing Fantasyland Area of Development Utilization of the expansion area to the south of Lost River Delta Note: The scale of the new themed port will be about the same as Arabian Coast Plan to announce details of the development when decision is made 17 Disney Note: These are still at the planning stage. The images are subject to change. 18

10 Area of Fantasyland Redevelopment at Tokyo Disneyland Intended site for development of new themed port at Tokyo DisneySea Area of Redevelopment (Existing Fantasyland) Expansion Area Disney Note: These are still at the planning stage. The images are subject to change. 19 Preparations for creating a comfortable environment at both parks Direction Enhance the level of service to gain a high degree of guest satisfaction Concrete examples Consider and execute followings: Restructure the show viewing area Enhance restaurants further Make service facilities more comfortable Restructure the IT environment Strengthening the base for operations including support functions Direction Enlarge support facilities aiming at the highest level of theme park attendance and best Guest service Create land for future business use by moving and reallocating support facilities Concrete examples Consider and execute followings: Move and enlarge the Logistics Center and Central Kitchen to company-owned property nearby Move part of the administration functions to company-owned property nearby Making investments to ensure a sustainable growth of the theme parks 20

11 Concept image of enlargement and enhancement of show viewing area Concept image of parade viewing area set up in a restaurant A moveable stage will be installed in Mediterranean Under consideration for Tokyo Disneyland is the Harbor at Tokyo DisneySea to increase visibility of introduction of a restaurant situated on the parade route shows and the areas from which shows can be viewed so that Guests can leisurely enjoy dining while watching will be expanded. a parade. [Start of utilization scheduled for March 1, 2015] Disney Note: These are still at the planning stage. The images are subject to change. 21 Tokyo Disneyland Tokyo DisneySea Redevelopment of Fantasyland Area of Redevelopment Expansion Area New Themed Port Disney Note: These are still at the planning stage. The images are subject to change. 22

12 Quantitative Target: Operating cash flow of over 280 billion in a three-year period * Operating cash flow=net income + Depreciation and amortization Operating cash flow and capital expenditure Operating cash flow Capital expenditure 2013 Medium-term Plan 267 billion for 3 years + about 5% 2016 Medium-term Plan More than 280 billion for 3 years OLC in [Initial [FY] 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/24 Maximize operating cash flow to make large-scale investments 23 [1] Enhance theme park value Main new products Once Upon a Time [Investment amount Approx. 2.0 billion] Started on May 29, 2014 [New night entertainment using projection mapping] Jungle Cruise: Wildlife Expedition [Investment amount Approx. 1.6 billion] Opened on September 8, 2014 [With new effects and music] New at Tokyo Disneyland New at Tokyo DisneySea New show viewing area in Mediterranean Harbor [Investment amount Approx. 2.5 billion] Scheduled to open on March 1, 2015 King Triton s Concert [Investment amount Approx. 4.0 billion] Scheduled to start on April 24, 2015 [New musical show based on the film The Little Mermaid] Renewed dtokyo Disneyland Electrical l Parade Dreamlights [Investment amount Approx. 2.0 billion] Scheduled to start in July 9, 2015 [New float based on the film Tangled will be added, etc.] Stitch Encounter [Investment amount Approx. 2.0 billion] Scheduled to open in Summer 2015 [Guests can enjoy communicating with Stitch interactively through this theater-type attraction] New musical show at Hangar Stage [Investment amount TBA] Scheduled to start in Spring-Summer 2016 We will decide on and sequentially launch large-scale investment projects and other measures that help us maximize the value of our theme parks Tokyo DisneySea Tokyo Disney Resort *Plans announced as of October 30, th Anniversary 35th Anniversary [FY] 3/15 3/16 3/17 3/18 3/ Medium-term Plan Aim to further enhance value of theme park 24

13 [2] Increase theme park attendance by stabilizing attendance levels Increase theme e park attendance in 1Q and 4Q Strengthen our capacity to attract guests by rolling out special events in combination with marketing activities Quarterly net sales in theme park segment The growth of seasonal event Easter Around billion [current status] Around billion [current status] Around billion [current status] Attracting students by Campus-day Passport Plan to roll out a new special event Anna and Elsa s Frozen Fantasy Around billion [current status] 1Q 2Q 3Q 4Q The first quarter Tokyo Disneyland / Tokyo DisneySea Disney s Easter [From April 2 to June 23, 2015, for 83 days] Plan to hold Easter themed event in both parks including Tokyo DisneySea starting from the next year Tokyo Disneyland The fourth quarter Anna and Elsa s Frozen Fantasy [From January 13 to March 20, 2015, for 67 days] [From January 12 to March 18, 2016, for 67 days] A new special event under the theme of the Disney s blockbuster film Frozen will be held Plan to roll out new special events in 1Q and 4Q 25 [3] Pricing strategy that reflects experience value Increase spending unit in the medium to long term Increase spending unit by creating new value and setting prices strategically 9,743 [Yoy+0.2%] 02%] Food and beverages Merchandise Ticket Receipts 2,160 3,377 Net sales per guest 10,022 [+2.9%] 2,176 3,629 4,206 4,217 10,336 [+3.1%] 2,205 10,601 [+2.6%] 2,259 3,796 3,860 4,335 4, ,076 [+4.5%] 4,185 10,930 [(1.3)%] Gelatoni [From July 4, 2014] 2,292 2,260 4,060 4,598 4,610 [FY] 3/10 3/11 3/12 3/13 3/14 3/15 Increase in merchandise sales Introduction of a new Duffy related character after an interval of 4 years Ticket price revision Revised the price of After 6 Passport [From September 1, 2014] [Before] 3,400 [After] 3,900 Continue considering ticket price revision that reflects theme park experience value Aiming to increase spending unit in the medium to long term 26

14 [1] Cash Dividends Annual cash dividends per share [Initial [Policy] Aim for a steady payout of cash dividends Increased by 20 [FY] 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 [2] ROE ROE is expected to be 12.9% for the fiscal year ending March 31, 2015 Continue aiming to achieve ROE of 8% or more [FY] 6.9% 6.3% 8.7% 12.6% 15.2% 12.9% 10.8% [Initial 3/10 3/11 3/12 3/13 3/14 3/15 Provide stockholder returns steadily 27.,. Investor Relations Group, Finance/Accounting Department URL: This document includes statements about Oriental Land s plans, estimates, strategies and beliefs. The statements made that are not based on historical fact represent the assumptions and expectations of Oriental Land in light of the information available to it as of the date when this document was prepared, and should be considered as forward-looking. Oriental Land uses a variety of business measures to constantly strive to increase its net sales and management efficiency. However, Oriental Land recognizes that there are certain risks and uncertainties that should be considered which could cause actual performance results to differ from those discussed in the forward-looking statements. Potential risks could include, but are not limited to, weather, general economic conditions, and consumer preferences. Therefore, there is no firm assurance that the forward-looking statements in this document will prove to be accurate. Theme park attendance figures have been rounded. Financial figures have been truncated. All rights reserved.