1
Consolidated Financial Statements for the Fiscal Year ended March 31, 2010
May 6, 2010
These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.
Oriental Land Co., Ltd.
Code number: 4661, First Section of the Tokyo Stock Exchange URL:
http://www.olc.co.jp Representative: Kyoichiro Uenishi, Representative Director and President Contact: Kenji Yoshida, Director of Finance/Accounting Department Planned Date for Annual General Meeting of Stockholders: June 29, 2010 Planned Date for Submission of Securities Report (Yuka shoken hokokusho): June 29, 2010 Planned Date for Start of Dividend Payment: June 30, 2010
1. Consolidated Results for the Fiscal Year Ended March 31, 2010
(April 1, 2009 – March 31, 2010)
Note: All amounts are rounded down to the nearest million yen.
(1)
Consolidated Operating Results
(Percentages represent change compared with the previous fiscal year.)
Net sales
(¥ million)
Year-on-year
change (%)
Operating
income
(¥ million)
Year-on-year
change (%)
Ordinary
income
(¥ million)
Year-on-year
change (%)
Fiscal Year ended March 31, 2010 Fiscal Year ended March 31, 2009
371,414
389,242
(4.6)
13.7
41,924
40,096
4.6
28.7
40,758
38,824
5.0
41.1
Net income
(¥ million)
Year-on-
year change
(%)
Earnings per
share
(¥)
Earnings per
share
(diluted) (¥)
Return on
equity
(%)
Ordinary
income/total
assets (%)
Operating
income/total
net sales
(%)
Fiscal Year ended March 31, 2010 Fiscal Year ended March 31, 2009
25,427
18,089
40.6
22.8
280.17
196.84
—
—
6.9
4.7
6.5
5.5
11.3
10.3
(Reference) Equity in earnings of affiliates: Fiscal year ended March 31, 2010: ¥52 million; Fiscal year ended March 31, 2009: ¥35 million (2)
Consolidated Financial Position
Total
assets
(¥ million)
Net assets
(¥ million)
Net worth ratio
(%)
Net assets
per share (¥)
As of March 31, 2010 As of March 31, 2009
615,090 644,991
366,473 373,660
59.6 57.9
4,240.59 4,109.59
(Reference) Equity capital: As of March 31, 2010: ¥366,454 million; As of March 31, 2009: ¥373,641 million
(3)
Consolidated Cash Flows
Net cash provided by
operating activities
(¥ million)
Net cash provided by
(used in)
investing activities
(¥ million)
Net cash provided by
(used in)
financing activities
(¥ million)
Cash and cash
equivalents at end of
period (¥ million)
Fiscal Year ended March 31, 2010 Fiscal Year ended March 31, 2009
72,094
78,122
(22,726)
5,751
(53,081)
(130,859)
47,233
50,919
2. Dividends
Dividends per share (¥)
Total
dividends
paid
(total)
(¥ million)
Payout ratio
(consolidated)
(%)
Dividends/
Net assets
(consolidated)
(%)
First
quarter-
end
Second
quarter-
end
Third
quarter-
end
Year-
end
Total
Fiscal Year ended March 31, 2009 Fiscal Year ended March 31, 2010
—
—
30.00
40.00
—
—
40.00
60.00
70.00
100.00
6,364
8,821
35.6
35.7
1.7
2.4
Fiscal Year ending March 31, 2011 (Est.)
—
50.00
—
55.00
105.00
35.1
(Note) Breakdown of year-end dividend for Fiscal year ended March 31, 2010: Commemorative dividend ¥10.00 per share
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3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2011
(April 1, 2010 to March 31, 2011)
(Percentages represent change compared with the previous cumulative consolidated second quarter or fiscal year, as applicable.)
Net sales
Operating income
Ordinary income
Net income
Earnings per share
(¥ million)
(%)
(¥ million)
(%)
(¥ million)
(%)
(¥ million)
(%)
(¥)
Six months ending September 30, 2010 Fiscal Year ending March 31, 2011
169,060
356,560
(3.2)
(4.0)
17,960
43,740
13.1
4.3
17,610
42,600
13.7
4.5
10,550
25,830
10.3
1.6
122.08
298.90
4. Other
(1)
Changes in Major Subsidiaries During the Period (Changes in specified subsidiaries due to changes in the scope of consolidation): No
New: — companies (Company name: )
Eliminated: — companies (Company name: )
(2)
Changes in Consolidated Accounting Rules, Procedures, Presentation Method, etc. for the Preparation of Consolidated Financial Statements (Presented in changes to important items basic to the preparation of financial statements): (a)
Changes in consolidated accounting methods: Yes
(b)
Changes other than (a) above: No
(3)
Number of Shares Issued and Outstanding (Common stock) (a)
Number of shares at end of period (including treasury stock):
Year ended March 31, 2010:
90,922,540 shares
Year ended March 31, 2009:
95,122,540 shares
(b)
Treasury stock at end of period:
Year ended March 31, 2010:
4,506,474 shares
Year ended March 31, 2009:
4,203,176 shares
(Reference) Summary of Nonconsolidated Results 1. Nonconsolidated Results for the Fiscal Year Ended March 31, 2010 (April 1, 2009 to March 31, 2010)
(1)
Nonconsolidated Operating Results
(Percentages represent change compared with the previous fiscal year.)
Net sales
(¥ million)
Year-on-year
change (%)
Operating
income
(¥ million)
Year-on-year
change (%)
Ordinary
income
(¥ million)
Year-on-year
change (%)
Fiscal Year ended March 31, 2010 Fiscal Year ended March 31, 2009
305,425
318,467
(4.1)
12.7
34,658
34,780
(0.4)
29.9
35,916
33,988
5.7
44.4
Net income
(¥ million)
Year-on-year
change (%)
Earnings per share
(¥)
Earnings per share
(diluted) (¥)
Fiscal Year ended March 31, 2010 Fiscal Year ended March 31, 2009
21,931
12,629
73.7
3.6
241.65
137.43
—
—
(2)
Nonconsolidated Financial Position
Total
assets
(¥ million)
Net assets
(¥ million)
Net worth ratio
(%)
Net assets
per share (¥)
As of March 31, 2010 As of March 31, 2009
604,595 635,731
357,176367,903
59.157.9
4,133.214,046.49
(Reference) Equity capital: As of March 31, 2010: ¥357,176 million; As of March 31, 2009: ¥367,903 million
Note: Explanation on the Appropriate Usage of Performance Projections and Other Specific Matters
The projections for consolidated business results included in this material are based on currently available information and certain assumptions that are judged reasonable by the Company. Due to various factors, cases may occur where the actual results of future business operations differ materially from the projections. With regard to the cautions, etc. regarding the use of these projections, please see “1. Operating Results, (1) Analysis of Operating Results” on pages 3-6.
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1. Operating Results
(1) Analysis of Operating Results
The challenging operating environment remained in force during the fiscal year ended March 31, 2010, as the
Japanese government made an official “declaration of deflation,” reflecting slack consumer spending due to the deterioration of employment conditions and decreased income. In addition, the numbers of domestic travelers and overseas visitors to Japan decreased as a result, in large part, of an outbreak of novel influenza A (H1N1).
Under these circumstances, net sales for the OLC Group decreased by 4.6% compared with the previous fiscal
year to ¥371,414 million. This was the result of a number of reasons, including the fact that the previous year marked the Tokyo Disney Resort 25th Anniversary. On the other hand, operating income, ordinary income, and net income set new records at ¥41,924 million (up 4.6%), ¥40,758 million (up 5.0%), and ¥25,427 million (up 40.6%), respectively, as a result of factors that include a reduction of costs commensurate with the decrease in the number of visitors and a decrease in pre-opening expenses.
A.
Summary of Results by Segment for the Fiscal Year Ended March 31, 2010
(Millions of yen)
Fiscal Year
ended
March 31, 2009
Fiscal Year
ended
March 31, 2010
Increase
(decrease)
Change from
previous period
(%)
Net Sales
389,242
371,414
(17,828) (4.6)
Theme Park Segment
302,412
287,320
(15,091) (5.0)
Hotel Business Segment
45,917
45,230
(686) (1.5)
Retail Business Segment
16,225
14,760
(1,465) (9.0)
Other Business Segment
24,687
24,102
(585) (2.4)
Operating Income (Operating Loss)
40,096
41,924
1,827 4.6
Theme Park Segment
34,545
33,235
(1,309) (3.8)
Hotel Business Segment
6,224
8,403
2,179 35.0
Retail Business Segment
4
20
16 356.0
Other Business Segment
(880)
(86)
794
－
Elimination and Corporate
202
350
147 72.5
Ordinary Income
38,824
40,758
1,933 5.0
Net Income
18,089
25,427
7,338 40.6
[Theme Park Segment] Tokyo Disneyland, Tokyo DisneySea and others Net sales and operating income decreased as theme park attendance fell below the level of the previous fiscal year due to various reasons, including the fact that Tokyo Disney Resort 25th Anniversary was celebrated in the previous year.
Net Sales ¥287,320 million (down 5.0% from the previous fiscal year)
During the period under review, we opened new attractions in each of our two theme parks. “Monsters, Inc. Ride
& Go Seek!” was opened in April at Tokyo Disneyland and “Turtle Talk” was opened in October at Tokyo DisneySea, with both proving extremely popular, especially among families. Furthermore, as part of our special events program, in addition to “Disney’s Halloween,” which was held at Tokyo DisneySea for the first time, we held special Christmas-themed events at the two theme parks starting in November.
As a result of the above, total attendance at the two theme parks for this fiscal year stood at the second highest
level ever achieved, with 25.818 million guests coming through the gates. This figure was down 5.2% from the previous fiscal year, however, for reasons that included the previous year was Tokyo Disney Resort 25th Anniversary.
In addition, net sales per guest at theme parks were ¥9,743 (up 0.2%), maintaining the same high level as the
previous fiscal year. Ticket receipts per guest were ¥4,206 (down 0.4%). Merchandise sales per guest were ¥3,377 (up 0.2%) due to reasons including strong sales of “Duffy” related products thanks to the new addition of Duffy’s friend “ShellieMay.” Food and beverage sales per guest were ¥2,160 (up 1.5%) due to various factors, including strong wagon sales.
Owing to the factors described above, net sales for the theme park segment decreased as a whole.
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Operating Income ¥33,235 million (down 3.8%)
Although operating income decreased due to a decline in net sales, the decrease was smaller than that of the net
sales because of the decrease in depreciation and amortization and a reduction of costs commensurate with the decrease in the number of visitors.
[Hotel Business Segment] Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta and others Despite a decrease in net sales, operating income increased as a result of various factors, including a decrease in preparation expenses prior to the opening of Tokyo Disneyland Hotel.
Net Sales ¥45,230 million (down 1.5%)
As a standard practice for all hotel guests, we offered the “Tokyo Disney Resort Multi-day Passport Special” at
the three Disney hotels for a year now, with sales starting on April 1, 2009. In addition, we implemented the “Tokyo Disneyland ‘Happy 15’ Entry” program, under which hotel guests are allowed to enter Tokyo Disneyland 15 minutes earlier during the period from September 1, 2009 to March 31, 2010.
However, overall net sales in this segment declined as the occupancy rates of each hotel fell below those of the
previous fiscal year due to a number of reasons, including external factors such as the outbreak of novel influenza A (H1N1) as well as the fact that the previous year was the 25th Anniversary. The occupancy rates were in the mid-80% range for Tokyo Disneyland Hotel, approximately 90% for Tokyo DisneySea Hotel MiraCosta, approximately 70% for Disney Ambassador Hotel, and in the mid-70% range for Palm & Fountain Terrace Hotel.
Operating Income ¥8,403 million (up 35.0%)
Despite a decrease in net sales, operating income increased due to various factors, including a decrease in
preparation expenses prior to the opening of Tokyo Disneyland Hotel.
[Retail Business Segment] The Disney Store Despite a decrease in net sales, operating income increased as a result of various factors, including efforts to reduce fixed expenses.
Net Sales ¥14,760 million (down 9.0%)
At the Disney Store, we created appealing sales outlets that reflected seasonal demands with “The Resort,” a
program featuring a wide variety of items useful at resorts and other tourist destinations, as well as the rollout of Halloween- and Christmas-themed products. However, net sales dropped amid a further decline in the economic environment.
Regarding the number of stores, we opened 2 stores, including the AEON Tsuchiura shopping center, and closed
11 stores, leaving us with a total of 48 stores as of March 31, 2010.
Operating Income ¥20 million (up 356.0%)
Despite a decrease in net sales, operating income increased as a result of a reduction in fixed expenses, including
store personnel expenses.
* Retail Networks Co., Ltd., an operator of the Disney Store was transferred to The Walt Disney Company (Japan) Ltd. as of March
31, 2010.
[Other Business Segment] Ikspiari, Cirque du Soleil Theatre Tokyo and others Despite a decrease in net sales, operating income increased due to various factors, including a decrease in preparation expenses prior to the opening of Cirque du Soleil Theatre Tokyo.
Net Sales ¥24,102 million (down 2.4%)
Net sales increased as a result of full-year operation of Cirque du Soleil Theatre Tokyo, which was opened to the
public on October 1, 2008. Overall net sales, however, decreased due to withdrawal from the intellectual property business in the previous fiscal year.
Operating Loss ¥86 million (an improvement of ¥794 million)
Despite a decrease in net sales, operating income improved due to various factors, including a decrease in
preparation expenses prior to the opening of Cirque du Soleil Theatre Tokyo.
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B.
Forecast of Results by Segment for the Fiscal Year Ending March 31, 2011
While net sales for the consolidated fiscal year ending March 31, 2011 is forecast to be ¥356,560 million (down 4.0% from the fiscal year ended March 31, 2010) due to the transfer of the Retail Business Segment among other reasons, operating income is expected to be ¥43,740 million (up 4.3%), setting a new record high for the third consecutive year. This is projected as a result of various factors including a decrease in depreciation and amortization expenses, mainly in the Theme Park Segment. In addition, ordinary income and net income is forecast to be ¥42,600 million (up 4.5%) and ¥25,830 million (up 1.6%), respectively, both record high levels.
The following is our forecast of results by segment.
(Millions of yen)
Results for the
fiscal year ended
March 31, 2010
Forecast for the
fiscal year
ending
March 31, 2011
Increase
(decrease)
Change from
previous period
(%)
Net Sales
371,414
356,560
(14,854) (4.0)
Theme Park Segment
287,320
286,420
(900) (0.3)
Hotel Business Segment
45,230
45,730
499 1.1
Retail Business Segment
14,760
－
(14,760)
－
Other Business Segment
24,102
24,410
307 1.3
Operating Income (Operating Loss)
41,924
43,740
1,815 4.3
Theme Park Segment
33,235
35,160
1,924 5.8
Hotel Business Segment
8,403
8,490
86 1.0
Retail Business Segment
20
－
(20)
－
Other Business Segment
(86)
(40)
46
－
Elimination and Corporate
350
130
(220) (62.9)
Ordinary Income
40,758
42,600
1,841 4.5
Net Income
25,427
25,830
402 1.6
* The Retail Business Segment has been abolished as a result of the transfer of Retail Networks Co., Ltd. to The Walt
Disney Company (Japan) Ltd. as of March 31, 2010.
[Theme Park Segment] Tokyo Disneyland, Tokyo DisneySea and others Despite an expected decline in net sales, operating income is forecast to increase due to a decrease in depreciation and amortization expenses, among other factors.
Net Sales ¥286,420 million (down 0.3% from the previous fiscal year)
As in the past, we will continue to carry out a wide variety of special events at the two theme parks throughout the year. In the spring, we are holding “Disney Easter Wonderland,” our first Easter-themed special event, at Tokyo Disneyland, as well as the last “Tokyo DisneySea Spring Carnival” at Tokyo DisneySea. In both parks, we will carry out water-themed programs during the summer and roll out special events under the theme of Halloween and Christmas starting in the fall. In addition, at Tokyo Disneyland we are planning to welcome the return of “Captain EO” for a limited period from July 1 and launch a new attraction, “Mickey’s PhilharMagic,” in the fourth quarter.
As a result of the above, total attendance at the two theme parks is forecast to be 25.8 million guests (down 0.1%). In addition, net sales per guest at the two theme parks are expected to be ¥9,690 (down 0.5%) while ticket receipts per guest are forecast to be ¥4,220 (up 0.3%). Our forecasts for merchandise sales per guest and food and beverage sales per guest are ¥3,340 (down 1.1%) and ¥2,130 (down 1.4%), respectively. We will continue to implement solid sales plans to reduce expenses and investments.
Operating Income ¥35,160 million (up 5.8%)
Despite a decrease in net sales, operating income is expected to increase due to factors that include a decrease in depreciation and amortization expenses.
