october 30, 2014 oriental land co., ltd

October 30, 2014Oriental Land Co., Ltd.

Kenji YoshidaKenji YoshidaDirector of Finance/Accounting Department

I. Financial Results

Consolidated Statement of Income

Results for the 1st Half Ended 9/14

[¥ billion]

Change[¥ billion]

Results for the 1stHalf Ended 9/13

[¥ billion]Change

[%]

Net Sales 230.0 222.7 (7.3) (3.2)%

Theme Park Segment 189.7 184.4 (5.2) (2.8)%

Hotel Business Segment 31.7 29.7 (1.9) (6.3)%

Other Business Segment 8.6 8.6 (0.0) (0.3)%

Operating Income 58.4 53.9 (4.4) (7.7)%

Theme Park Segment 49.0 46.1 (2.9) (6.0)%

Hotel Business Segment 8.5 6.8 (1.6) (19.5)%

Other Business Segment 0.8 0.9 0.1 14.6%

Ordinary Income 57.5 54.9 (2.6) (4.5)%

Net Income 35.9 36.3 0.3 1.1%

3

Operating income dropped because the current year follows on the heels of Tokyo Disney Resort 30th Anniversary


Net Sales [¥ billion] 189.7 184.4 (5.2) (2.8)%

Results for the 1st Half Ended 9/14Theme Park Segment [1] ChangeResults for the 1st

Half Ended 9/13Change

[%]

[ ] ( ) ( )%Theme Park Attendance[million people] 15.36 15.10 (0.26) (1.7)%

Net Sales per Guest [¥] 10,920 10,769 (151) (1.4)%Ticket receipts 4,486 4,565 79 1.8%Merchandise 4,108 3,924 (184) (4.5)%Food and beverages 2,326 2,280 (46) (2.0)%

Reached the second highest attendance forthe first half under the influence of Tokyo

Decrease in theme park attendance Breakdown of Guests by Region

the first half under the influence of TokyoDisney Resort 30th Anniversary held in theprevious fiscal year

D i t l t

TokyoMetropolitan

Area64.9%

66.6%

Decrease in net sales per guestDecrease in merchandise sales

Decrease due to a termination of sellingTokyo Disney Resort 30th Anniversary

Other areasin Japan

Overseas

30.8%

4.3%

28.1%

5.3%9/13 9/14

4

Tokyo Disney Resort 30th Anniversary related products

Theme park attendance achieved the second highest figure after the previous year


Net Sales 189 7 184 4 (5 2) (2 8)%


[¥ billion]Theme Park Segment [2] Change

[¥ billion]Results for the 1st Half Ended 9/13

[¥ billion]Change

[%]

Net Sales 189.7 184.4 (5.2) (2.8)%


Decrease in operating income

D i t lDecrease in net salesIncrease 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 +¥1.0 billion

Note: Personnel expenses were roughly on a par with the previous fiscal year

Operating income declined due to the decrease in net sales5


Net Sales 31.7 29.7 (1.9) (6.3)%

Hotel Business SegmentResults for the 1st Half Ended 9/14

[¥ billion]

Change[¥ billion]


[¥ billion]Change

[%]

Net Sales 31.7 29.7 (1.9) (6.3)%

Operating Income 8.5 6.8 (1.6) (19.5)%Decrease in occupancy rates because this year follows on the heels of Tokyo

Disney Resort 30th AnniversaryDisney Resort 30th Anniversary

Tokyo Disneyland Hotel Tokyo DisneySea Hotel MiraCosta Disney Ambassador Hotel

Occupancy Rates *Please refer to “Supplementary Materials“ [P.4] for average charge per room [actual results]

Operating income decreased owing to the drop in net sales

9/13 9/14 9/13 9/14 9/13 9/14

96-99% 96-99% 96-99% 96-99% 96-99% 91-94%

Ope a g co e dec eased o g o e d op e sa es

Other Business SegmentResults for the 1st Half Ended 9/14

[¥ billion]

Change[¥ billion]


[¥ billion]Change

[%]

Net Sales 8.6 8.6 (0.0) (0.3)%Operating Income 0.8 0.9 0.1 14.6%

[¥ billion] [ ][¥ billion] [ ]

Net sales and operating income stayed at the same level as the previous fiscal year6


Operating Income 58 4 53 9 (4 4) (7 7)%

Net IncomeResults for the 1st Half Ended 9/14

[¥ billion]

Change[¥ billion]


[¥ billion]Change

[%]


Non-operating Income 1.5 1.4 (0.0) (6.1)%

Non-operating Expenses 2.3 0.4 (1.9) (83.1)%

Ordinary Income 57.5 54.9 (2.6) (4.5)%

Income Taxes 21.6 18.6 (2.9) (13.8)%

Net Income 35.9 36.3 0.3 1.1%

¥1.9 billion decrease in non-operating expensesDecrease 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 taxesTermination 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

Termination of special corporate tax for reconstruction, etc.



[¥ billion]

Change[¥ billion]

Initial Forecast for 1st Half Ended 9/14

[¥ billion]Change

[%]Consolidated

Statement of Income

Net Sales 200.6 222.7 22.0 11.0%

Theme Park Segment 163.3 184.4 21.0 12.9%

Hotel Business Segment 29.4 29.7 0.2 1.0%


Operating Income 36.8 53.9 17.0 46.3%

Theme Park Segment 30.0 46.1 16.1 53.7%

Hotel Business Segment 6.4 6.8 0.4 6.5%


Ordinary Income 37.6 54.9 17.3 46.1%

Net Income 25.3 36.3 10.9 43.1%

Both net sales and operating income far exceeded the forecastby the success of theme park segment

8


Net Sales 163 3 184 4 21 0 12 9%


[¥ billion]

Change[¥ billion]

Initial Forecast for the 1st Half Ended 9/14

[¥ billion]Change

[%]Theme Park Segment

Net Sales 163.3 184.4 21.0 12.9%

Operating Income 30.0 46.1 16.1 53.7%

I i ti iIncrease in operating incomeIncrease in net sales

Increase in theme park attendance owing to favorable reception of new contentsh “O U Ti ” d “J l C i Wildlif E diti ” i T ksuch 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 +¥1.5 billionChanges 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 +¥2.0 billion

Mainly increase in net sales pushed up operating income9

Costs postponed to the 2nd half about +¥1.5 billion, etc.


Consolidated Net Sales andOperating Margin [1st Half]

Quarterly Consolidated Operating Income [1st Half]

Net Sales [¥ billion]

Operating Margin [%]58.4

53.9

2Q Operating Income [¥ billion]

1Q Operating Income [¥ billion]

179 7188.3

230.0 222.7

%

32.5 29.1

39.02Q

174.6 179.7

148.1 20.7%

25.4% 24.2%

22.2 27.7

20.4

2Q

9.1%

15.4% 13.8%

25.8 24.7

14.6

23.4

15.8

1Q

9/09 9/10 9/11 9/12 9/13 9/14

1.1

13.0

(3.0)

16.814.7

9/09 9/10 9/11 9/12 9/13 9/14

Impact of the earthquake


Both net sales and operating income achieved the second highest figure after the previous year 10

9/09 9/10 9/11 9/12 9/13 9/14 9/09 9/10 9/11 9/12 9/13 9/14

II. Forecast for the Full Year

Net Sales 417 6 453 4 35 8 8 6%

Consolidated Statement of Income

Revised Forecast for the Full FY 3/15

[¥ billion]Change[¥ billion]

Initial Forecast for the Full FY 3/15

[¥ billion]Change

[%]

Net Sales 417.6 453.4 35.8 8.6%Theme Park Segment 341.5 376.4 34.9 10.2%Hotel Business Segment 59.6 59.7 0.0 0.1%Other Business Segment 16.5 17.3 0.7 4.8%

Operating Income 83.1 101.7 18.5 22.3%Theme Park Segment 70 3 88 0 17 7 25 3%Theme Park Segment 70.3 88.0 17.7 25.3%Hotel Business Segment 12.2 12.3 0.0 0.7%Other Business Segment 0.5 1.1 0 6 123 1%0.5 0.6 123.1%

Ordinary Income 84.1 102.9 18.8 22.4%Net Income 55.5 67.3 11.8 21.3%

Theme Park Attendance [million people] 28.00 30.40 2.40 8.6%Net Sales per Guest [¥] 10,620 10,930 310 2.9%Capital Expenditure* [¥ billion] 42.8 40.2 (2.6) (6.1)%D i ti dA ti ti * [¥ billi ] 35 4 35 0 (0 4) (1 1)%

Forecast for the full year is revised upward

Depreciation andAmortization* [¥ billion] 35.4 35.0 (0.4) (1.1)%* For the breakdown, please refer to “Supplementary Materials”.

12


The 2nd HalfRevised Forecast for

the 2nd Half Ending 3/15[¥ billion]

Change[¥ billion]

Initial Forecast for the 2nd Half Ending 3/15

[¥ billion]Change

[%]

Net Sales 216 9 230 7 13 7 6 3Net Sales 216.9 230.7 13.7 6.3Operating Income 46.2 47.7 1.4 3.2

Theme Park Segment 40.3 41.9 1.6 4.1Hotel Business Segment 5 8 5 4 (0 3) (5 8)%Hotel Business Segment 5.8 5.4 (0.3) (5.8)%Other Business Segment 0.1 0.2 0.1 117.9%

¥1 6 billion increase in theme park segment¥1.6 billion increase in theme park segmentIncrease in net salesDecrease in merchandise sales cost ratio, increase in food/beverages sales cost ratiog

about +¥1.0 billionIncrease in personnel expenses about ¥(2.0 billion)

Increase in performance bonus and work hours of part-time employeesIncrease 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)

Operating income is expected to increase despite a rise in costs13

Facility renovation costs, marketing expenses, etc.


Operating Income [¥ billion]

Consolidated Net Sales andOperating Margin

Consolidated Operating Income andNet Income

114.4

101.7[Revised Forecast]

Net Sales [¥ billion]

Operating Margin [%]

Operating Income [¥ billion]

Net Income [¥ billion]

473.5


81 4

Forecast]

67 3

83.1[Initial

Forecast]371.4 356.1 360.0

395.5 417.6[Initial

Forecast]

53 6

66.9

81.4

70.5


18.6%20.6%

24.2% 22.4%[Revised Forecast]

41.9

53.6

25 432.1

51.4 55.5[Initial

Forecast]11.3%

15.1%

18.6%

19.9[Initial

Forecast]25.4 22.9

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


[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

[ ] 3/10 3/11 3/12 3/13 3/14 3/15 [ ]

Yuichi KatayamaYuichi KatayamaExecutive Director and Executive Officer

III. Progress of 2016 Medium-Term Plan

Investment to actualize the greatest value of the theme parkOLC 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]

p g

Tokyo Disneyland

Redevelopment of Fantasyland [renovation and expansion]Investment in other new products

Orientation of Investment

Investment inDisneyland est e t ot e e p oducts

Tokyo DisneySea

Development of new themed port in an area south of Lost River DeltaInvestment in other new products

Investment in On-Stage

About ¥400 billionInvestment forInvestment in other new products

Both Parks

Development of special eventsPreparations for creating a comfortable environmentVarious improvements [including maintenance and

Investment for enhancing value

About ¥250 billion

Investment for renewal and improvementVarious improvements [including maintenance and

preparation of infrastructure]

BackstageStrengthen the operations base, including support functions,

etcInvestment in Backstage

About ¥100 billion

pAbout ¥150 billion

g etc. About ¥100 billion

Aim to maximize the value of the theme parks by enhancing attractiveness in both physical and intangible ways 16


DirectionLarge-scale developments which have great impact on enhancement of

theme park value

Large-scale development plans for both parks

Tokyo Disneyland Tokyo DiensySea

Direction theme park valueIncrease capacity of both parks

y yRedevelopment of Fantasyland

[renovation and expansion]

Tokyo DiensySeaDevelopment of new themed port

in an extension area

Overall redevelopment of Fantasyland with mulitple major

Development of multiple major attractions shops restaurantsOverview Fantasyland with mulitple major

attractions, shops, restaurants and other facilities

Period of After the “2016 Medium Term

Overview attractions, shops, restaurants and other facilities for a new themed port

Period of After the “2016 Medium TermPeriod of Introduction

After the 2016 Medium-Term Plan” period

The entire existing Fantasyland [ ti ] d t f

Period of Introduction

After the 2016 Medium-Term Plan” period

Utilization of the expansion areaArea of

Development

[renovation] and parts of Tomorrowland and “backstage” areas [expansion of site]Note: This will nearly double the size of the existing Fantasyland

Area ofDevelopment

Utilization of the expansion area to the south of Lost River DeltaNote: The scale of the new themed port will be about the same as Arabian Coast

of the existing Fantasyland

Plan to announce details of the development when decision is made17

©Disney

� 18

Note: These are still at the planning stage. The images are subject to change.

Area of “Fantasyland Redevelopment”at Tokyo Disneyland

Intended site for development of new themed portat Tokyo DisneySeaat Tokyo Disneyland at Tokyo DisneySea

Expansion AreaArea of Redevelopment

(Existing Fantasyland)

Redevelopment

©Disney


19


Direction Enhance the level of service to gain a high degree of guest satisfaction

Preparations for creating a comfortable environment at both parks

Consider and execute followings:Restructure the show viewing area

Concrete examples

Restructure the show viewing areaEnhance restaurants furtherMake service facilities more comfortableRestructure the IT environment

Enlarge support facilities aiming at the highest level of theme park attendance and best Guest service

Strengthening the base for operations including support functions

Direction and best Guest serviceCreate 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

Concrete examples

Making investments to ensure a sustainable growth of the theme parks

property nearbyMove part of the administration functions to company-owned property nearby

20

Concept image of enlargement and Concept image of parade viewing area set up enhancement of show viewing area in a restaurant

A bl t ill b i t ll d i M dit U d id ti f T k Di l d i th

©Disney

A moveable stage will be installed in Mediterranean Harbor at Tokyo DisneySea to increase visibility of shows and the areas from which shows can be viewed will be expanded. [St t f tili ti h d l d f M h 1 2015]

Under consideration for Tokyo Disneyland is the introduction of a restaurant situated on the parade route so that Guests can leisurely enjoy dining while watching a parade.

21

©Disney[Start of utilization scheduled for March 1, 2015]Note: These are still at the planning stage. The images are subject to change.

Tokyo Disneyland

Tokyo DisneySea

Area of Redevelopment

Redevelopment of Fantasyland

Expansion Area

Redevelopment

New Themed Port

��

©Disney

22



Quantitative Target: Operating cash flow of over ¥280 billion in a three-year period

* Operating cash flow=Net income + Depreciation and amortization

182 2

Operating cash flow and capital expenditure OLCin 20232016

Medium-term Plan2013

Medium-term Plan182.2

Operating cash flow [¥ billion]

Capital expenditure [¥ billion]

More than ¥ 280 billionfor 3 years

¥ 267 billionfor 3 years

+ about 5%

107.5102.3

[Revised

130.4 109.7

for 3 years

50.6

66.8 64.5 61.7 59.0 59.2 58.367.8

72.162.8

71.9

87.6[Forecast]

90.9[Initial

Forecast]

22.3 23.1

14.8

29.2

46.8 43.1

54.8 52.6

40.1

19.427.9

23.228.7

20.3

40.2[RevisedForecast]

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[FY]

23Maximize operating cash flow to make large-scale investments


[1] Enhance theme park valueMain new products

New at Tokyo Disneyland

New at Tokyo DisneySea

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]

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]

R d T k Di l d El t i l P d D li ht

New show viewing area in Mediterranean Harbor [Investment amount Approx. ¥ 2.5 billion] Scheduled to open on March 1, 2015

Stitch Encounter [Investment amount Approx. ¥2.0 billion] Scheduled to open in Summer 2015 [Guests can enjoy communicating with Stitch

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.]

p [ j y ginteractively through this theater-type attraction]

We will decide on and sequentially launch large-scale investment projects and other measures that

New musical show at Hangar Stage [Investment amount TBA] Scheduled to start in Spring-Summer 2016

3/15 3/16 3/17 3/18 3/19

help us maximize the value of our theme parksTokyo DisneySea

15th Anniversary Tokyo Disney Resort35th Anniversary *Plans announced as of October 30, 2014

[FY] 3/15 3/16 3/17 3/18 3/19

Aim to further enhance value of theme park 24

2016 Medium-term Plan[FY]


Increase theme park attendance in 1Q and 4Q

[2] Increase theme park attendance by stabilizing attendance levels

c ease t e e pa atte da ce Q a d QStrengthen our capacity to attract guests by rolling out special events in combination with marketing activities

The first quarterTokyo Disneyland / Tokyo DisneySeaDisney’s Easter

Quarterly net sales in theme park segment

The growth of seasonal

event “Easter”

Attracting students byCampus-day Passport

Plan to roll out a new special event y[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

event Easter Plan to roll out a new special event“Anna and Elsa’s Frozen Fantasy”

Around ¥80.0 –¥100.0 billion [current status]

Around ¥90.0 –¥110.0 billion [current status]

The fourth quarterTokyo Disneyland

from the next yearAround ¥70.0 –¥80.0 billion

[current status]

[current status]Around ¥70.0 –¥80.0 billion

[current status]

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

Plan to roll out new special events in 1Q and 4Q 25

pDisney’s blockbuster film Frozen will be held1Q 2Q 3Q 4Q


Increase spending unit in the medium to long term

[3] Pricing strategy that reflects experience value

c ease spe d g u t t e ed u to o g te

Increase spending unit by creating new value and setting prices strategically

Net sales per guest

¥10,336[+31%]

Net sales per guest

¥10,022¥9,743[Y 02%]

¥10,601[+2.6%]

¥11,076[+4.5%]

¥10,930[(1.3)%]

[RevisedForecast]

Increase in merchandise sales

“Gelatoni”[F J l 4 2014]

3 6293,796 3,860 4,185

2,160 2,176 2,205 2,259 2,292 2,260

[+3.1%][+2.9%][Yoy+0.2%] Forecast] [From July 4, 2014]

Introduction of a new “Duffy” related character after an interval of 4 years

[RevisedForecast]

Food

and

be

vera

ges

4 483

3,377 3,629 4,060

Ticket price revision

Revised the price of “After 6 Passport”[F S t b 1 2014]

[RevisedForecast]

Mer

chan

dise

4,206 4,217

4,335 4,483 4,598 4,610 [From September 1, 2014]

[Before] ¥3,400 � [After] ¥ 3,900Continue considering ticket price revision that reflects theme park experience value

[RevisedForecast]

Tick

et

Rec

eipt

s

Aiming to increase spending unit in the medium to long term 26

3/10 3/11 3/12 3/13 3/14 3/15that reflects theme park experience value

[FY]


¥140[RevisedForecast]

[1] Cash Dividends

Annual cash dividends per share

¥70

¥100 ¥100 ¥100¥120 ¥120

¥120[Initial

Forecast]

Increased by ¥20

Annual cash dividends per share

¥14 ¥19 ¥24 ¥29 ¥35¥45

¥55 ¥60¥70

[Policy]Aim for a steady

payout ofcash dividends

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[FY]

12.6%15.2%

12.9%[RevisedForecast]

[2] ROEROE is expected to be 12.9% for the

Continue aiming to achieve ROE of 8% or more

6.9% 6.3%8.7%

Forecast]fiscal year ending March 31, 201510.8%

[Initial Forecast]

3/10 3/11 3/12 3/13 3/14 3/15

Provide stockholder returns steadily 27

[FY]

This document includes statements about Oriental Land’s plans estimates strategies and beliefs The statements made that are

., .Investor Relations Group, Finance/Accounting Department

URL: www.olc.co.jp/en

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 statementsactual 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.

october 30, 2014 oriental land co., ltd

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