April 28, 2015 Oriental Land, Co., Ltd

Transcription

1 April 28, 2015 Oriental Land, Co., Ltd Kenji Yoshida Officer and Director, Finance/Accounting Department

2 I. Overview of Results Consolidated Statements of Income FY Ended 3/14 Net Sales (7.2) (1.5)% Theme Park Segment (3.2) (0.8)% Hotel Business Segment (3.8) (6.0)% Other Business Segment (0.1) (0.7)% Operating Income (3.8) (3.4)% Theme Park Segment (1.4) (1.5)% Hotel Business Segment (2.7) (17.4)% Other Business Segment % Ordinary Income (2.1) (1.9)% Net Income % Operating income decreased because FY ended 3/14 followed on the heels of Tokyo Disney Resort 30th Anniversary 3 I. Overview of Results Theme Park Segment [1] FY Ended 3/14 Net Sales (3.2) (0.8)% Attendance [million people] % Net Sales per Guest [ ] 11,076 10,955 (121) (1.1)% Ticket Receipts 4,598 4, % Merchandise 4,185 4,043 (142) (3.4)% Food and Beverages 2, , (40) (1.7)% Decrease in net sales Increase in theme park attendance Record high attendance due to the success of newly introduced products at Tokyo Disneyland such as Once Upon a Time and Jungle Cruise: Wildlife Expeditions and special events held at both parks Decrease in net sales per guest Decrease due to a termination of selling Tokyo Disney Resort 30th Anniversary related products, etc. Although net sales per guest declined, attendance reached record high 4

3 I. Overview of Results Theme Park Segment [2] FY Ended 3/14 Net Sales (3.2) (0.8)% Operating Income (1.4) (1.5)% Decrease in operating income Decrease in net sales Increase in theme park attendance, decrease in net sales per guest Increase in merchandise sales cost ratio and food/beverages sales cost ratio (2.5 billion) Increase in fixed and miscellaneous costs (0.3 billion) Decrease D in Tokyo Disney Resort 30thA Anniversary related costs billion Increase in removal costs related to the termination of The Legend of Mythica, among other factors (1.4 billion) Increase I in expenses for large scale investment t projects (0.5 billion) Decrease in depreciation and amortization expenses billion * Personnel expenses stood at the same level as the previous fiscal year Note: Increase in costs is expressed by figures in brackets, which shows by how much operating income was negatively affected. Drop in net sales and rise in costs led to profit decline 5 I. Overview of Results Hotel Business Segment FY Ended 3/14 Net Sales (3.8) (6.0)% Operating Income (2.7) (17.4)% Drop in net sales because the year followed on the heels of Tokyo Disney Resort 30th Anniversary (decrease in guests from areas requiring i overnight stays, among other factors) 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 FY 3/14 FY 3/15 FY 3/14 FY 3/15 FY 3/14 FY 3/ % About 95% 96-99% 96-99% 96-99% About 95% Operating income declined due to a fall in net sales and other factors Other Business Segment FY Ended 3/14 Net Sales (0.1) (0.7)% Operating Income % Operating income rose mainly owing to a reduction in fixed and miscellaneous costs in Ikspiari business 6

4 I. Overview of Results Net Income FY Ended 3/14 Operating Income (3.8) (3.4)% Non-operating Income (0.2) (7.5)% Non-operating Expenses (1.9) (41.7)% Ordinary Income (2.1) (1.9)% Income Taxes (3.6) (8.7)% Net Income % Decrease in non-operating expenses Decrease in loss on bond retirement billion Increase in loss on retirement of fixed assets (1.0 billion) Increase in net income Decrease in income taxes Net income rose due mainly to a decline in income taxes combined with a smaller drop in operating income, setting a new record 7 I. Overview of Results Consolidated Statements of Income Forecast for FY Ended 3/15 announced in Oct. 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 % *Please refer to Supplementary Materials [P. 5-6] for details. Net sales and operating income grew thanks to the strong performance of theme park segment 8

5 I. Overview of Results Consolidated Net sales and Operating Margin Consolidated Operating Income and Net Income Net Sales Operating Income Operating Margin [%] Net Income % % 18.6% Impact of earthquake disaster % 24.2% 23.7% Record High /10 3/11 3/12 3/13 3/14 3/15 3/10 3/11 3/12 3/13 3/14 3/15 While net sales and operating income recorded the second highest figures, net income reached a record high 9 I. Overview of Results Quarterly Consolidated Operating Income Q Impact of earthquake disaster Q (3.0) 3/10 3/11 3/12 3/13 3/14 3/15 3/10 3/11 3/12 3/13 3/14 3/15 2Q 4Q Impact of earthquake disaster (4.7) Record High /10 3/11 3/12 3/13 3/14 3/15 3/10 3/11 3/12 3/13 3/14 3/15 1Q, 2Q, and 3Q recorded the second highest figures respectively, and 4Q hit a new record 10

6 II. Forecast Consolidated Statements of Income Forecast for FY Ending 3/16 Net Sales % Theme Park Segment % Hotel Business Segment % Other Business Segment (0.2) (1.2)% Operating Income (4.5) (4.1)% Theme Park Segment (3.6) (3.8)% Hotel Business Segment (0.5) (4.2)% Other Business Segment (0.2) (18.3)% Ordinary Income (3.1) (2.9)% Net Income % 0.2% Despite an increase in net sales, operating income is expected to fall 12

7 II. Forecast Theme Park Segment [1] Forecast for FY Ending 3/16 Net Sales % Attendance [million people] (0.98) (3.1)% Net Sales per Guest [ ] 10,955 11, % Ticket Receipts 4,660 4, % Merchandise 4,043 4, % Food and Beverages 2, , % Increase in net sales Decrease in theme park attendance Decrease because Once Upon a Time and Anna and Elsa s Frozen Fantasy, which were particularly popular p when first launched, will enter their second year of operation Increase in net sales per guest Increase in ticket receipts mainly due to ticket price revisions Net sales is estimated to rise owing to an increase in net sales per guest in spite of a drop in theme park attendance 13 II. Forecast Theme Park Segment [2] Forecast for FY Ending 3/16 Net Sales % 0.8% Operating Income (3.6) (3.8)% Decrease in operating income Increase in net sales Decrease in theme park attendance, increase in net sales per guest Increase in merchandise sales cost ratio and food/beverages sales cost ratio about (1.5 billion) Decrease in personnel expenses about + 1.5billion Increase in fixed and miscellaneous costs about (6.0 billion) Increase in expenses for large scale investment projects about (4.0 billion) Increase I in preparation costs for a comfortable environment about (1.0 billion), etc. Increase in depreciation and amortization about (2.0 billion) Although net sales grow, operating income is forecast to decline due to increased costs 14

8 II. Forecast Hotel Business Segment Forecast for FY Ending 3/16 Net Sales % 1.9% Operating Income (0.5) (4.2)% Increase in fixed and miscellaneous costs resulting from guest room renovation Occupancy Rates *Please refer to Supplementary Materials [P.8] for average charge per room [actual results] Tokyo Disneyland Hotel Tokyo DisneySea Hotel MiraCosta Disney Ambassador Hotel FY 3/15 FY 3/16 FY 3/15 FY 3/16 FY 3/15 FY 3/16 About 95% 96-99% 96-99% 91-94% About 95% 91-94% Operating income is projected to drop due to cost rise Other Business Segment Forecast for FY Ending 3/16 Net Sales (0.2) (1.2)% Operating Income (0.2) (18.3)% Operating income is expected to fall mainly because of lower net sales for Monorail business 15 Kyoichiro Uenishi Representative Director, President and COO

9 III. Progress of 2016 Medium-Term Plan 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 give great impact on enhancement of theme park value and to increase capacity 17 III. Progress of 2016 Medium-Term Plan Large-scale development plans for both parks Overview Tokyo Disneyland Redevelopment of Fantasyland [renovation and expansion] Overall redevelopment of Fantasyland with major attractions, shops, restaurants and other facilities Tokyo DisneySea Development of new themed port in an extension area Development of major attractions, Overview shops, restaurants and other facilities for a new themed port Themes Consisting of multiple areas with specific themes, such as the Disney films Beauty and the Beast and Alice in Wonderland Theme Themed to Scandinavia [includes area where the world of the Disney film Frozen will be experienced] Period of Introduction After FY ending March 2018 Period of Introduction After FY ending March 2018 Development Area The entire existing Fantasyland [renovation] and parts of Tomorrowland, Guest parking and backstage areas [expansion of site] Note: About double the size of the existing iti Fantasyland area Development Area The expansion site south of and adjacent to Lost River Delta Note: About the same size as Arabian Coast Plan to announce details of the areas within

10 Area themed to Beauty and the Beast in Fantasyland, Tokyo Disneyland Disney Note: These are concept images only and are subject to change. 19 Area themed to Alice in Wonderland in Fantasyland, Tokyo Disneyland Disney Note: These are concept images only and are subject to change. 20

11 Development of new themed port inspired by Scandinavia Disney Note: These are concept images only and are subject to change. 21 Tokyo Disneyland Tokyo DisneySea Redevelopment of Fantasyland Expansion Area Area of Redevelopment New Themed Port [Legends] Dotted lines mark the expansion sites for the large-scale development of the Parks (including Backstage areas). Disney Note: These are concept images only and are subject to change.

12 III. Progress of 2016 Medium-Term Plan Quantitative Target: Operating cash flow* of over billion in a three-year period Toward OLC in 2023, we will endeavor to maximize operating cash flow to make large-scale investments in our core business and fund investments in new business. 1 Sustainable growth of the core business While seeking to build a business foundation in line with upcoming changes in the market, we will strive to maximize operating cash flow Toward OLC in 2023, we will decide on and sequentially launch largescale investment projects that help us maximize the value of our theme parks 2 Further growth Toward T d OLC in 2023, we will move forward our research and through new business development of a business with the potential to contribute to our future earnings outside the Maihama area 3 Financial policies We will use operating cash flow to enhance our corporate value * Operating cash flow=net income + Depreciation and amortization 23 III. Progress of 2016 Medium-Term Plan Operating cash flow and capital expenditure Opening of Tokyo DisneySea 2013 Medium-term Plan 2016 Medium-term Plan OLC in Operating cash flow Capital expenditure + about 5% 267 billion for 3 years More than 280 billion for 3 years [Actual Result] [Forecast] [Forecast in Oct.] 37.0 [Actual 20.3 Result] 69.7 [Forecast] [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/ Growth of operating (1) Sustainable growth of the core business Expanded the core business cash flow (2) Further growth through new business Exceeding the plan thanks to the favorable performance of the core business 24

13 III. Progress of 2016 Medium-Term Plan Outline of strategy for the core business Target OLC in 2023 Build a business foundation in line with upcoming changes in the market All kinds of families including parents and children, couples, and multigenerational extended families Aging society Focus on attracting Growing inbound Be more prepared to welcome Families with children New-Aging [middle-aged couples whose children have grown up] Overseas guests Strategiest Enhancing products targeting families and preparing for further comfortable environment Enhance capacity to attract guests Attendance Enhance earning power Net sales per guest [1] Enhance theme park value [2] Increase theme park attendance by stabilizing attendance levels [3] Pricing i strategy that reflects experience value [4] Be more prepared to welcome overseas guests P.26 P.27 P.28 P III. Progress of 2016 Medium-Term Plan [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 show viewing area in Mediterranean Harbor [Investment amount Approx. 2.5 billion] ] New at Tokyo Disneyland New at Tokyo DisneySea Opened on March 1, 2015 King Triton s Concert [Investment amount Approx. 4.0 billion] Started on April 24, 2015 [New musical show based on the film The Little Mermaid] Renewed Tokyo Disneyland Electrical 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 on July 17, 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 Summer 2016 New Facility for Disney Character Greetings and Adjoining Restaurant in Westernland [Investment amount Approx. 3.0 billion, including new restaurant] Scheduled to open in Autumn-Winter 2016 We will decide on and sequentially launch large-scale investment projects and other measures that help us *Plans announced as of April 28, 2015 maximize the value of our theme parks Tokyo DisneySea 15th Anniversary Tokyo Disney Resort 35th Anniversary [FY] 3/15 3/16 3/17 3/18 3/ Medium-term Plan Further enhance value of theme park toward OLC in

14 III. Progress of 2016 Medium-Term Plan [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 [Actual Result for FY 3/15] [Prior level] Quarterly net sales in theme park segment The growth of seasonal event Easter Attracting students by Campus-day Passport Launched a new special event Anna and Elsa s Frozen Fantasy Q 2Q 3Q 4Q The first quarter Tokyo Disneyland / Tokyo DisneySea Disney s s Easter [From April 2 to June 23, 2015, for 83 days] Rolling out Easter themed event in both parks including Tokyo DisneySea starting from the fiscal year ending March 2016 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] Holding a special event under the theme of the Disney s blockbuster film Frozen Robust attendance in 1Q and 4Q driven by special events, etc. 27 III. Progress of 2016 Medium-Term Plan [3] Pricing strategy that reflects experience value Increase spending unit by creating new value and setting prices strategically s Food and beverages Merchand dise Ticket Receipts 10,022 [Yoy +2.9%] [FY] 2,176 3,629 10,336 [+3.1%] ,205 Net sales per guest 3,796 4,217 4,335 10,601 [+2.6%] 2, ,860 11,076 [+4.5%] 10,955 [(1.1)%] 2,292 2,252 4,185 4,483 4,598 4,043 4,660 11,360 [+3.7%] [Forecast] 2,290 [Forecast] 4,090 [Forecast] 4,980 [Forecast] 3/11 3/12 3/13 3/14 3/15 3/16 Increase in ticket receipts Ticket price revision [From April 1, 2015] 1-Day Passport [Adult] 6,400 6,900 Raising the prices of the all ticket types for the first time since the last revision in April, 2011 to appropriately reflect theme park value Increase in merchandise sales Gelatoni [From July 4, 2014] Introduction of a new Duffy related character after an interval of 4 years At Tokyo DisneySea Journeys with Duffy: Your Friend Forever [From July 3, 2015 to March 18, 2016] Program that marks the tenth year since Mickey and Duffy first met Revised ticket prices to reflect theme park value 28

15 III. Progress of 2016 Medium-Term Plan [4] Be more prepared to welcome overseas guests Enhance Aim to enhance experience value by improving both our tangible and intangible features experience value so as to be more prepared to welcome overseas guests Strengthen marketing activities focusing on Southeast Asia, where growth is expected Strengthen our appeal Started e-ticket sales in FY 3/14 to respond to increasing demand for self-guided travel The number of overseas visitors to Japan and the ratio of our parks overseas guests among overseas visitors to Japan Overseas visitors to Japan [million people] The ratio of overseas guests coming to our parks among overseas visitors to Japan Source: Prepared by the OLC Group based on materials created by the Japan National Tourist Organization (JNTO) and the Japan Tourism Agency [Government s Target] [million people] Overseas guests attendance [Actual] Theratio of overseasguests among all attendance [Government s Target] Impact of earthquake Continue aiming to disaster attract overseas guests 99% 9.9% 10.1% 1% 52% 5.2% 83% 8.3% 11.1% 1% 10.7% 3/10 3/11 3/12 3/13 3/14 3/ Tokyo Olympics [Scheduled] Overseas guests at our parks are 28% 2.8% 33% 3.3% 13% 1.3% 26% 2.6% 39% 3.9% 50% 5.0% mainly from Asia such as Taiwan Take advantage of the growth in foreign tourists visiting Japan and respond appropriately 29 III. Progress of 2016 Medium-Term Plan Policy: [1] Cash Dividendsid d Annual cash dividends per share By using operating cash flow for further growth, strive to enhance corporate value by 20 Increased by 20 [Policy] Aim for a steady payout of cash dividends 35* [Forecast] [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 3/16 *Conducted a 4-for1 stock split effective from April 1, [2] ROE s in ROE ROE is expected to be 12.2% for the fiscal year ending March 31, 2016 Continue aiming to achieve ROE of 8% or more [FY] 6.3% 8.7% Provide stockholder returns steadily 15.2% 13.6% 12.6% 12.2% 2% 12.9% [Forecast in Oct.] [Forecast] 3/11 3/12 3/13 3/14 3/15 3/16 30

16 Cautionary Statement: Oriental Land Co., Ltd. Investor Relations Group, Finance/Accounting Department 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.