Consolidated Financial Statements for the Fiscal Year Ended March

Consolidated Financial Statements for the Fiscal Year
Ended March 31, 2013 (Japanese accounting standards)
April 26, 2013
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/en/
Representative: Kyoichiro Uenishi, Representative Director and President
Contact: Kenji Yoshida, Director of Finance/Accounting Department
Planned Date for Annual General Meeting of Stockholders: June 27, 2013
Planned Date for Submission of Securities Report (Yuka shoken hokokusho): June 27, 2013
Planned Date for Start of Dividend Payment: June 28, 2013
Supplementary materials for the financial statements: Yes
Briefing session on financial results: Yes (for institutional investors)
1. Consolidated Results for the Fiscal Year Ended March 31, 2013
(April 1, 2012 – March 31, 2013)
Note: All amounts are rounded down to the nearest million yen.
(1) Consolidated Operating Results
Net sales
(¥ million)
Year-on-year
change (%)
(Percentages represent change compared with the previous fiscal year.)
Operating
Year-on-year
Ordinary
Year-on-year
income
change (%)
income
change (%)
(¥ million)
(¥ million)
Fiscal Year ended
March 31, 2013
395,526
9.9
81,467
21.7
Fiscal Year ended
March 31, 2012
360,060
1.1
66,923
24.7
(Note) Comprehensive income:
Fiscal year ended March 31, 2013: ¥57,900 million (72.4%)
Fiscal year ended March 31, 2012: ¥33,583 million (53.1%)
Net income
Year-onEarnings per Earnings per
Return on
(¥ million)
year change
share
share
equity
(%)
(¥)
(diluted) (¥)
(%)
Fiscal Year ended
March 31, 2013
51,484
60.3
616.96
580.87
12.6
Fiscal Year ended
March 31, 2012
32,113
40.2
384.98
372.87
8.7
(Reference) Equity in earnings of affiliates:
Fiscal year ended March 31, 2013: ¥103 million
Fiscal year ended March 31, 2012: ¥57 million
(2) Consolidated Financial Position
Total assets
Net assets
Net worth ratio
(¥ million)
(¥ million)
(%)
As of March 31, 2013
655,544
432,262
65.9
As of March 31, 2012
619,493
383,084
61.8
(Reference) Equity capital:
As of March 31, 2013: ¥432,262 million
As of March 31, 2012: ¥383,084 million
(3) Consolidated Cash Flows
Net cash provided by
Net cash provided by
Net cash provided by
operating activities
(used in)
(used in)
(¥ million)
investing activities
financing activities
(¥ million)
(¥ million)
Fiscal Year ended
March 31, 2013
91,982
(45,377)
(34,515)
Fiscal Year ended
March 31, 2012
90,327
(73,713)
(3,485)
80,867
22.1
66,238
25.2
Ordinary
income/total
assets (%)
Operating
income/total
net sales
(%)
12.7
20.6
11.1
18.6
Net assets
per share (¥)
5,178.67
4,592.03
Cash and cash
equivalents at end of
period (¥ million)
60,582
48,511
2. Dividends
First
quarterend
Fiscal Year ended
March 31, 2012
Fiscal Year ended
March 31, 2013
Fiscal Year ending
March 31, 2014 (Est.)
Annual dividends (¥)
Second
Third
Yearquarterquarterend
end
end
Total
Total
dividends
paid
(total)
(¥ million)
Payout ratio
(consolidated)
(%)
Dividends/
Net assets
(consolidated)
(%)
—
50.00
—
50.00
100.00
8,341
26.0
2.3
—
60.00
—
60.00
120.00
10,015
19.5
2.5
—
60.00
—
60.00
120.00
19.2
3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2014
(April 1, 2013 to March 31, 2014)
(Percentages represent change compared with the previous fiscal year or the same quarter of the previous fiscal year, as applicable.)
Net sales
Operating income
Ordinary income
Net income
Earnings
per share
(¥ million)
(%)
(¥ million)
(%)
(¥ million)
(%)
(¥ million)
(%)
(¥)
Six months ending
September 30, 2013
200,160
6.2
37,880
(3.1)
37,850
(3.3)
24,540
(3.9)
293.99
Fiscal Year ending
March 31, 2014
413,730
4.6
82,780
1.6
82,350
1.8
52,280
1.5
626.33
*Notes
(1) Changes in Major Subsidiaries During the Period (Changes in specified subsidiaries due to changes in the scope of
consolidation): None
New: — companies (Company name:
)
Eliminated: — companies (Company name:
)
(2) Changes in Accounting Policies, Changes in Accounting Estimates, or Restatement
(a) Changes in accounting policies due to changes in accounting standards: Yes
(b) Changes other than (a) above: None
(c) Changes in accounting estimates: Yes
(d) Restatement: None
(3) Number of Shares Issued and Outstanding (Common stock)
(a) Number of shares issued at end of period Year ended March. 31, 2013:
(including treasury stock)
(b) Number of treasury stock at end of period
Year ended March. 31, 2013:
(c) Average number of shares outstanding
Year ended March. 31, 2013:
(quarterly cumulative period)
90,922,540
shares
7,452,794
Shares
83,448,973
shares
Year ended March 31, 2012:
Year ended March 31, 2012:
Year ended March 31, 2012:
90,922,540
shares
7,498,674
shares
83,417,277
shares
* Statement concerning the Status of Financial Audit Procedures
These Consolidated Financial Statements for the Fiscal Year Ended March 31, 2013 are not subject to audit procedures
under the Financial Instruments and Exchange Act. At the time of disclosing these Consolidated Financial Statements,
audit procedures specified in the Financial Instruments and Exchange Act have not been completed with respect to the
financial statements.
* Explanation on the Appropriate Usage of Performance Projections and Other Specific Matters
The projections and other statements with respect to the future 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 and other situations differ materially from the projections.
1. Operating Results
(1) Analysis of Operating Results
During the fiscal year ended March 31, 2013, Japan’s economic outlook remained uncertain, reflecting such
factors as the European sovereign debt crisis. Owing, however, to anticipation prevalent that economic measures
would take effect, signs of recovery were seen, although conditions remained weak in some areas.
Regarding the OLC Group, theme park attendance and net sales per guest increased and also reached record highs
mainly due to the success of special events and new attractions at the both parks.
As a result, net sales, operating income, ordinary income, and net income set new records at ¥395,526 million (up
9.9% from the previous fiscal year), ¥81,467 million (up 21.7%), ¥80,867 million (up 22.1%), and ¥51,484 million (up
60.3%), respectively.
The following is results for each segment.
A. Summary of Results by Segment for the Fiscal Year Ended March 31, 2013
(Millions of yen)
Fiscal Year
ended
March 31, 2012
Net Sales
Theme Park Segment
Hotel Business Segment
Other Business Segment
Operating Income
Theme Park Segment
Hotel Business Segment
Other Business Segment
Elimination and Corporate
Ordinary Income
Net Income
360,060
297,891
42,210
19,959
66,923
56,433
9,555
733
201
66,238
32,113
Fiscal Year
ended
March 31, 2013
395,526
329,814
48,924
16,787
81,467
68,484
12,022
606
353
80,867
51,484
Change
(decrease)
35,466
31,923
6,714
(3,172)
14,544
12,051
2,467
(127)
152
14,628
19,370
Change
(%)
9.9
10.7
15.9
(15.9)
21.7
21.4
25.8
(17.3)
76.0
22.1
60.3
[Theme Park Segment] Tokyo Disneyland, Tokyo DisneySea and others
Although costs such as personnel expenses and fixed and miscellaneous costs rose due to returning to normal
operations, net sales and operating income climbed as a result of an increase in both theme park attendance and net
sales per guest.
Net Sales
¥329,814 million (up 10.7% from the previous fiscal year)
From April 2012, we held “Disney’s Easter Wonderland” at Tokyo Disneyland and a new special event “Mickey &
Duffy’s Spring Voyage” in which Duffy was featured, for the first time, in a lead role with Mickey Mouse at Tokyo
DisneySea until June 2012. From July to August 2012, a new special event “Disney’s Natsu Matsuri” started at Tokyo
Disneyland and a new attraction “Toy Story Mania!” was launched at Tokyo DisneySea on July 9, 2012. At the both
parks, Halloween-themed events were held from September to November 2012 and Christmas-themed events were
carried out from November to December 2012. January through March 2013, the limited period program “Tower of
Terror: Level 13” was introduced at Tokyo DisneySea.
Theme park attendance amounted to 27,503 thousand, up 8.5% from the previous fiscal year, due to favorable weather
during mainly summer vacation period and the fourth quarter in addition to the success of special events and new
attractions at the both theme parks.
Net sales per guest created a new record high of ¥10,601 (up 2.6%). Ticket receipts per guest increased to ¥4,483 (up
3.4%) due to ticket price revisions in the previous fiscal year, merchandise sales per guest rose to ¥3,860 (up 1.7%) due
to strong sales of products related to special events and “Toy Story Mania!,” and food and beverages sales per guest
grew to ¥2,259 (up 2.4%) due to favorable sales of one-hand menu items.
Owing to the factors described above, net sales for the theme park segment increased as a whole.
1
Operating Income
¥68,484 million (up 21.4%)
Costs such as personnel expenses (including mainly work hours of part-time employees) and fixed and miscellaneous
costs (including facility renovation costs and marketing expenses) climbed due to returning to normal operations.
However, operating income grew owing to an increase in net sales.
[Hotel Business Segment] Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta and others
Operating income rose as a result of an increase in net sales mainly due to a growth in occupancy rates.
Net Sales
¥48,924 million (up 15.9%)
During the fiscal year under review, we offered the “Tokyo Disney Resort Multi-day Passport Special” at the three
Disney hotels as a standard practice for all hotel guests, continuing from the previous fiscal year. We also continued
implementing the “Tokyo Disneyland ‘Happy 15’ Entry” program, under which hotel guests are allowed to enter Tokyo
Disneyland 15 minutes earlier. In addition, Disney Ambassador Hotel had closed all facilities from January 23 to
February 5, 2013 for the main purpose of refurbishing its guest rooms in order to launch, for example, “Mickey Mouse
Rooms” and “Minnie Mouse Rooms.”
Occupancy rates of each hotel increased year on year mainly as a result of a growth in theme park attendance as
well as returning to normal operations. The occupancy rates were in the lower-90% for Tokyo Disneyland Hotel, the
higher-90% for Tokyo DisneySea Hotel MiraCosta, and approximately 80% for Disney Ambassador Hotel. As a result,
overall net sales in this segment increased year on year.
Operating Income
¥12,022 million (up 25.8%)
Despite an increase in costs due to the restoration of normal operations and facility renovation for refurbishment of
Disney Ambassador Hotel, operating income climbed owing to a rise in net sales.
[Other Business Segment] Ikspiari, Disney Resort Line and others
Operating income declined mainly because of an increase in facility renovation costs of Ikspiari.
Net Sales
¥16,787 million (down 15.9%)
Ikspiari held seasonal events in celebration of Halloween and Christmas while at the same time renovating stores and
welcoming new tenants.
Regarding Cirque du Soleil Theatre Tokyo where the “ZED” productions were terminated as of December 31, 2011,
we changed the name into the “MAIHAMA Amphitheatre” and started to operate it as a multipurpose hall which can be
used for various purposes such as corporate and school ceremonies and lectures, music concerts for domestic and
overseas artists from September 1, 2012.
However, overall net sales declined mainly due to a termination of the “ZED” productions.
Operating Income
¥606 million (down 17.3%)
Operating income declined owing to an increase in facility renovation costs of Ikspiari, among other factors.
2
B. Forecast of Results by Segment for the Fiscal Year Ending March 31, 2014
During the fiscal year ending March 31, 2014, we are holding “Tokyo Disney Resort 30th: The Happiness Year”
throughout the year mainly at Disney Hotel and Disney Resort Line as well as the both theme parks.
As a result, net sales, operating income, ordinary income and net income are forecast to be 413,730 million (up 4.6%),
¥82,780 million (up 1.6%), ¥82,350 million (up 1.8%) and ¥52,280 million (up 1.5%) and reach record highs,
respectively.
The following is our forecast by segment.
(Millions of yen)
Results for the
fiscal year ended
March 31, 2013
Net Sales
Theme Park Segment
Hotel Business Segment
Other Business Segment
Operating Income
Theme Park Segment
Hotel Business Segment
Other Business Segment
Elimination and Corporate
Ordinary Income
Net Income
Forecast for the
fiscal year
ending
March 31, 2014
Change
(decrease)
Change
(%)
395,526
413,730
18,203
4.6
329,814
336,670
6,855
2.1
48,924
60,740
11,815
24.1
16,787
16,320
(467)
(2.8)
81,467
82,780
1,312
1.6
68,484
69,550
1,065
1.6
12,022
12,920
897
7.5
606
220
(386)
(63.7)
353
90
(263)
(74.6)
80,867
82,350
1,482
1.8
51,484
52,280
795
1.5
[Theme Park Segment] Tokyo Disneyland, Tokyo DisneySea and others
Net sales and operating income are expected to increase mainly due to a rise in both theme park attendance and net
sales per guest as a result of implementation of “Tokyo Disney Resort 30th: The Happiness Year.”
Net Sales
¥336,670 million (up 2.1% from the previous fiscal year)
At the both parks, we are holding “Tokyo Disney Resort 30th: The Happiness Year” for 340 days from April 15, 2013
to March 20, 2014. The theme of 30th anniversary events which are an important turning point for us is “happiness.”
The 30th anniversary year will be a very special year in which the greatest happiness ever created by Tokyo
Disney Resort can be shared among families, friends, Disney friends, and Cast Members through unexpected
discoveries, surprises, and heartwarming experiences. At Tokyo Disneyland, a new daytime parade “Happiness Is
Here” will be launched on the same day of beginning the 30th anniversary events. In addition, a new attraction “Star
Tours: The Adventures Continue” will open on May 7, 2013. Moreover, a number of special seasonal events will be
rolled out in sequence at both theme parks.
Therefore, total annual theme park attendance is expected to reach a new record high of 27,700 thousand, up 0.7%.
Net sales per guest are expected to be ¥10,700 (up 0.9%). Ticket receipts per guest are forecast to be ¥4,500 (up
0.4%). Our forecast for merchandise sales per guest is ¥3,960 (up 2.6%) owing to sales of Tokyo Disney Resort 30th
Anniversary related products. Food and beverages sales per guest are forecast to be ¥2,240 (down 0.8%).
Due to the factors mentioned above, whole net sales in theme park segment are expected to increase.
Operating Income
¥69,550 million (up 1.6%)
Despite an increase in Tokyo Disney Resort 30th Anniversary related costs including mainly entertainment show
production costs as well as the cost of merchandise ratio and food and beverages ratio, operating income is forecast to
increase as a result of a growth in net sales.
3
[Hotel Business Segment] Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta and others
Net sales and operating income are forecast to grow due to an increase in occupancy rates as a result of Tokyo Disney
Resort 30th Anniversary events, among other factors.
Net Sales
¥60,740 million (up 24.1%)
At three Disney Hotels, various programs linking to the implementation period of Tokyo Disney Resort 30th
Anniversary will be held. We will continue to offer the “Tokyo Disney Resort Multi-day Passport Special” and
implement the “Tokyo Disneyland ‘Happy 15’ Entry” program for all hotel guests. In addition, new anniversary plans
such as the “Special Kids Birthday Plan” and the “My Anniversary Story” will be started at Disney Ambassador Hotel.
Occupancy rates are expected to be the mid-90% range for Tokyo Disneyland Hotel, the higher-90% for Tokyo
DisneySea Hotel MiraCosta, and the mid-80% range for Disney Ambassador Hotel, and forecast to increase compare
with the fiscal year under review.
Furthermore, net sales in the hotel business segment are projected to increase as a whole due to acquisition of all
shares in Brighton Corporation which operates mainly Urayasu Brighton Hotel and Kyoto Brighton Hotel on March 29,
2013.
Operating Income
¥12,920 million (up 7.5%)
Operating income is forecast to rise due to an increase in mainly net sales.
[Other Business Segment] Ikspiari, Disney Resort Line and others
Operating income is expected to decrease mainly due to a decline in net sales of Ikspiari.
Net Sales
¥16,320 million (down 2.8%)
Whole net sales are projected to decline as a result of a decrease in net sales of Ikspiari due to the effect of the period
when some stores closed temporarily to renovate their facilities or to be replaced to new tenants, among other factors.
Operating income
¥220 million (down 63.7%)
Operating income is projected to decrease mainly due to a decline in net sales of Ikspiari.
4
(2) Analysis of Consolidated Financial Position
A. Assets, Liabilities and Net Assets
[Assets]
Total assets as of March 31, 2013 were ¥655,544 million (up 5.8% compared with the end of the previous fiscal year).
Current assets rose to ¥150,844 million (up 12.4%) due to an increase in cash and deposits.
Noncurrent assets increased to ¥504,700 million (up 4.0%) due to an increase in investment securities thanks to a rise of
market-value evaluation of shares owned by us and property, plant and equipment as a result of the acquisition of all shares
in Brighton Corporation on March 29, 2013.
[Liabilities]
Total liabilities as of March 31, 2013 were ¥223,282 million (down 5.6%).
Current liabilities increased to ¥109,845 million (up 16.6%) as a result of various factors, including a rise in current
portion of long-term loans payable.
Noncurrent liabilities decreased to ¥113,436 million (down 20.2%) due to a decrease in long-term loans payable, among
other factors.
[Net Assets]
Total net assets as of March 31, 2013 were ¥432,262 million (up12.8%) due to various factors, including an increase in
retained earnings owing to net income. Net worth ratio stood at 65.9 % (up 4.1 points).
B. Cash Flows
[Net Cash Provided by Operating Activities]
Net cash from operating activities increased to ¥91,982 million (a growth of ¥1,655 million compared with the previous
fiscal year) due to factors that included a rise in net cash provided by major operating activities.
[Net Cash Used in Investing Activities]
Net cash used in investing activities rose to ¥45,377 million (an increase of ¥28,336 million compared with the previous
fiscal year) due to factors that included an increase in proceeds from withdrawal of time deposits.
[Net Cash Used in Financing Activities]
Net cash used in financing activities was ¥34,515 million (a decrease of ¥31,029 million compared with the previous
fiscal year) due to factors that included a decline in proceeds from long-term loans payable.
C. Indicators of Financial Position
Net worth ratio (%)
Net worth ratio on market value
basis (%)
Debt/equity ratio (times)
Interest-bearing debt to cash-flow
ratio (%)
Interest coverage ratio (times)
Fiscal year
ended
March 31,
2009
57.9
Fiscal year
ended
March 31,
2010
59.6
Fiscal year
ended
March 31,
2011
62.3
Fiscal year
ended
March 31,
2012
61.8
Fiscal year
ended
March 31,
2013
65.9
88.5
91.6
96.0
119.4
195.1
0.52
0.47
0.40
0.39
0.29
247.1
240.4
192.3
165.6
134.8
19.2
30.7
35.7
46.5
52.2
Notes:
• All indicators are calculated on a consolidated basis.
• Net worth ratio: Equity capital/Total assets
• Net worth ratio on market value basis: Total market value of stock*/Total assets
* Total market value of stock is calculated by multiplying the total number of shares outstanding at the end of the
period (excluding treasury stock) by the closing stock price at the end of the period.
• Debt/equity ratio: Interest-bearing debt*/ Equity capital
* Interest-bearing debt includes all liabilities stated on the balance sheet on which interest is paid.
• Interest-bearing debt to cash flow ratio: Interest-bearing debt*/Cash flows from operating activities
* Interest-bearing debt: Same as above
• Interest coverage ratio: Cash flows from operating activities/Interest paid*
* Interest paid is as stated on the consolidated statement of cash flows.
5
(3) Basic Policy on Distribution of Profit and Dividends for the Fiscal Years Ended March 31, 2013 and Ending
March 31, 2014
The OLC Group recognizes that returning profits to its stockholders is an important management policy.
We will set the year-end dividend for the fiscal year ended March 31, 2013 at ¥60.00 per share and the total cash
dividends for the fiscal year increased by ¥20.00 to ¥120.00 per share. We plan to keep total dividend at ¥120.00 per share
for the fiscal year ending March 31, 2014, the same amount as the fiscal year under review.
We will continue to provide a steady payout of cash dividends while also taking the external environment into
consideration.
6
2. Outline of the Oriental Land Group (“OLC Group”)
The OLC Group includes Oriental Land Co., Ltd, (the “Company”), 17 consolidated subsidiaries, 3 affiliated companies
and 1 other affiliated company, with the main businesses being the management and operation of theme parks and hotels.
The main operations of each business segment and the main affiliates and other companies of the Company conducting
each business during the period under the review were as follows:
Main Operations
Segments
Theme
Park
Management and operation of theme parks
Hotel
Management and operation of hotels
Main Companies (Note)
Oriental Land Co., Ltd. (listed company)
and 7 other companies
Milial Resort Hotels Co., Ltd.
and 3 other companies
Management and operation of Ikspiari
Ikspiari Co., Ltd.
Management and operation of monorail,
Maihama Resort Line Co., Ltd.
and others
and 5 other companies
Note: Company names and numbers of companies listed in the Main Companies column all refer to consolidated
subsidiaries except Oriental Land Co., Ltd.
Other
Legends
The following diagram shows an overview of our major business operations.
The Company
Consolidated subsidiaries
Equity method affiliates
Keisei Electric Railway Co., Ltd.
Other affiliated company
Theme Park
Business outsourcing
and others
Milial Resort Hotels Co., Ltd.
and 3 other companies
Real estate leasing
Other
Ikspiari Co., Ltd.
Maihama Resort Line Co., Ltd.
and 4 other companies
Real estate leasing and others
* Ikspiari Co., Ltd. sublets its properties to Milial Resort Hotels Co., Ltd.
Tokyo Bay City Kotsu Co., Ltd.
and 2 other companies
Offering of services
7
Offering of services,
and sales of
merchandise and food
and beverages
Customers
Hotel
Oriental Land Co., Ltd.
Photo Works Co., Ltd.
Design Factory Co., Ltd.
and 5 other companies
3. Management Policies
(1) Corporate Mission and Policies
With a corporate mission to “create happiness and contentment by offering wonderful dreams and moving
experiences created with original, imaginative ideas,” the OLC Group continues to be an organization that is widely
loved and popular among people from Japan, Asia and the wider world. We aim to increase its corporate value over the
long term by maximizing the cash flow that is generated as a result of its ability to earn the trust and understanding of all
stakeholders.
Tokyo Disney Resort is our core business. In addition to its role as a key element within the Tokyo Bay area, the
resort aims to continue bringing happiness for another 50 or 100 years time.
(2) Medium- and Long- Term Strategies, Management Indicators and Issues
The fiscal year ended March 31, 2012, we have launched the 2013 Medium-Term Plan, which covers the period
between the fiscal year ended March 31, 2012 and the fiscal year ending March 31, 2014. We will continue to innovate
and reinvent ourselves in order to consistently create new value while at the same time dealing with expected future
changes in the surrounding environment, such as shifting demographics.
We have formulated the following two fundamental policies for the medium-term plan: “Sustainable Growth of the
Core Business (Tokyo Disney Resort)” and “Reinforcement of the Foundation for Long-Term Sustainable Growth.” Of
the free cash flow consistently generated from the sustainable growth of the core business, we will allocate a high level
to stockholder returns and preparations for new growth, among other areas.
Under the 2013 Medium-Term Plan, we have set a numerical target for “total free cash flow over a period of three
years” with a view to generating corporate value that will enable sustainable growth over the long term, and we have
revised the numerical target upwards from the initial target figure “the ¥120.0 billion level” to “the ¥130.0 billion level”
in April, 2012. Free cash flow for the fiscal year ended March 31, 2012 reached ¥48.7 billion, that for the fiscal year
ended March 31, 2013 amounted to ¥58.8 billion and that for the fiscal year ending March 31, 2014 is forecast to reach
¥64.3 billion, and total free cash flow for three years will achieve ¥172.0 billion and accomplish our target figure.
i. Sustainable Growth of the Core Business (Tokyo Disney Resort)
We steadily increased our base level of profitability by strengthening our core business under the 2010 Medium-Term
Plan (covering the fiscal year ended March 31, 2008 to the fiscal year ended March 31, 2011) and have achieved record
operating income for the last five consecutive years since the fiscal year ended March 31, 2009. We will continue
striving to achieve the sustainable growth of our core business under the 2013 Medium-Term Plan.
(i) Creation of New Value
[Enhanced Value of Tokyo Disney Resort]
As a means of enhancing the value of Tokyo Disney Resort, we will add new products to the two theme parks in a
well-balanced manner. In addition, we will capitalize on the full potential of Tokyo Disney Resort by creating content
which will enhance the profitability of the resort on the whole in preparation for the Tokyo Disney Resort 30th
Anniversary, which will take place during the fiscal year ending March 31, 2014, the last year of the new
medium-term plan.
In the fiscal year under review, we opened a new attraction “Toy Story Mania!” at Tokyo DisneySea in July 2012.
Moreover, during the fiscal year ending March 31, 2014, we are holding “Tokyo Disney Resort 30th: The Happiness
Year,” and a new daytime parade “Happiness Is Here” will start from April 15, 2013 at Tokyo Disneyland. In addition,
a new attraction “Star Tours: The Adventures Continue” will be launched on May 7, 2013. By effectively combining
various new products and anniversary events in this way, we will systematically enhance the value of our theme
parks.
[Creation and Expansion of Earnings Opportunities]
We will continue to create and expand earnings opportunities for Tokyo Disney Resort as a whole. By reducing the
waiting time for our guests, we will enhance guest satisfaction and further increase profitability. Specifically, we will
focus on the rollout of “Tokyo Disney Resort Vacation Packages,” high-value added packaged products which
combine hotel accommodations with theme park contents such as FastPass tickets, show tickets, etc. These packages
have contributed to the improvement of guest satisfaction and motivated those guests who purchased the packages to
again visit the theme parks at a later date. In addition, we are strengthening efforts to allocate our resources to the
development and investments that will enhance the profitability of Tokyo Disney Resort as a whole such as creation
of new content and efficient utilization of existing facilities. By creating new value as described above, we aim to
enhance guest satisfaction and further increase profitability.
8
(ii) Market Development
[Promoting Attraction for Guests to Both Theme Parks]
We will continue to promote efforts to attract guests to both theme parks, seeking to maintain a good balance
between increasing the number of Tokyo Disney Resort fans and enhancing our ability to attract repeat guests.
Due to the extremely strong appeal of anniversary events, we will position them as a key part of efforts for
large-scale expansion of our fan base. In addition, we aim to attain stronger guest loyalty by targeting families with
the introduction of new products with high family entertainment value and strengthening sales of vacation packages
targeting “post family” (primarily guests in their 40s and over).
With the aim of enhancing our ability to encourage repeat visits, we will continue to enhance guest satisfaction
while expanding events under seasonal themes such as Halloween and Easter in addition to Christmas-themed events.
[Attracting Overseas Guests]
After the earthquake disaster, the number of overseas visitors to Japan declined. However, various initiatives are
being considered primarily by the Japanese government in order to increase the number of overseas visitors to Japan
and the target numbers indicate a significant increase in the future.
We regard such a policy as an opportunity and are poised to capitalize on it by responding appropriately.
(iii) Investment and Cost Efficiency
[Control of Investment Amount]
In order to generate free cash flow steadily, we will control its consolidated capital expenditures at an annual
average of around the ¥30.0 billion level. We will strengthen our control based on a long-term perspective, ensuring a
balanced allocation of investment resources to new products and to renovations and improvements with the aim of
enhancing the attractiveness of Tokyo Disney Resort. Meanwhile, depreciation and amortization expenses are
expected to decrease slightly, reflecting investment efficiency.
[Reduction of Running Costs]
To further improve cost efficiency, we will strive to control cost in accordance with net sales and reduce running
costs through measures that will not affect the guests’ experience value. Since the fiscal year ended March 31, 2010,
we have been able to control costs within the initially projected ranges despite higher-than-expected growth in net
sales. We will continue to enhance cost efficiency while retaining a high level of guest satisfaction.
ii. Reinforcement of the Foundation for Long-Term Sustainable Growth
We will allocate the steady stream of high free cash flow, generated by the sustainable growth of our core business, to
reinforcing the foundation for long-term sustainable growth.
(i) Preparation for New Growth
[Business Development Policies]
We will continue our efforts into the research and development of new business in order to generate additional
growth. With the aim of growing new businesses that can build upon Tokyo Disney Resort, we will consider various
opportunities and methods from a long-term perspective based on a policy of selection and focus on investment from
which we can expect more than a certain level of return in areas in which we can capitalize on our strengths.
[Reduction of Interest-Bearing Debt]
We are reducing interest-bearing debt in order to secure funds for investment in new growth opportunities.
(ii) Stockholder Returns
As in the past, we will remain focused on stockholder returns when allocating the steady stream of free cash
flow. We aim to pay stable dividend while taking external factors into consideration.
Regarding our target of achieving an ROE of 8% or more, ROE for the fiscal year ended March 31, 2012 was
8.7% and for the fiscal year under review was 12.6%. We successfully reached our target figure. We will continue to
aim at an ROE of 8% or more through earnings growth and direct stockholder returns.
9
4. Consolidated Financial Statements
(1) Consolidated Balance Sheets
(Millions of yen)
At the end of the previous
fiscal year
(March 31, 2012)
At the end of the fiscal year
(March 31, 2013)
ASSETS
Current assets
Cash and deposits
66,512
88,585
Notes and accounts receivable—trade
17,753
19,461
Short-term investment securities
30,998
20,699
Merchandise and finished goods
7,538
9,583
107
123
Raw materials and supplies
3,884
4,530
Deferred tax assets
5,027
5,516
Other
2,379
2,347
Work in process
Allowance for doubtful accounts
(2)
Total current assets
134,199
(1)
150,844
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
584,421
622,539
(284,511)
(324,012)
299,910
298,527
242,249
245,336
(205,989)
(211,050)
36,260
34,285
Land
93,301
106,681
Construction in progress
10,471
9,492
Accumulated depreciation
Machinery, equipment and vehicles, net
Other
71,122
75,402
(63,956)
(67,489)
7,166
7,912
447,110
456,900
―
1,239
Other
6,062
7,269
Total intangible assets
6,062
8,509
21,808
32,637
630
436
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
4,042
852
Other
5,739
5,466
Allowance for doubtful accounts
(99)
Total investments and other assets
Total noncurrent assets
Total assets
10
(102)
32,121
39,290
485,294
504,700
619,493
655,544
(Millions of yen)
At the end of the previous
fiscal year
(March 31, 2012)
At the end of the fiscal year
(March 31, 2013)
LIABILITIES
Current liabilities
Notes and accounts payable—trade
15,935
19,641
Current portion of long-term loans payable
15,600
19,343
Income taxes payable
18,548
20,277
Reserve for loss on disaster
488
207
Other
43,618
50,376
Total current liabilities
94,192
109,845
Bonds payable
59,994
49,997
Long-term loans payable
Noncurrent liabilities
73,954
54,654
Provision for retirement benefits
4,114
4,919
Other
4,153
3,865
Total noncurrent liabilities
Total liabilities
142,216
113,436
236,409
223,282
63,201
63,201
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
111,417
111,584
Retained earnings
256,094
298,400
Treasury stock
(47,165)
(46,876)
Total shareholders’ equity
383,548
426,309
210
5,952
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
(673)
—
Total accumulated other comprehensive income
(463)
5,952
Total net assets
Total liabilities and net assets
11
383,084
432,262
619,493
655,544
(2) Consolidated Statements of Income
Fiscal Year ended
March 31, 2012
(April 1, 2011
to March 31, 2012)
(Millions of yen)
Fiscal Year ended
March 31, 2013
(April 1, 2012
to March 31, 2013)
Net sales
360,060
395,526
Cost of sales
248,456
265,946
Gross profit
111,604
129,580
Selling, general and administrative expenses
44,680
48,113
Operating income
66,923
81,467
Interest income
240
380
Dividends income
336
373
57
103
Non-operating income
Equity in earnings of affiliates
Insurance and dividends income
338
379
Other
630
612
1,603
1,848
1,857
1,673
Total non-operating income
Non-operating expenses
Interest expenses
－
249
Commission fee
154
261
Other
276
265
2,288
2,449
66,238
80,867
Impairment loss
6,331
－
Loss on disaster
3,617
－
999
－
Loss on bond retirement
Total non-operating expenses
Ordinary income
Extraordinary loss
Other
10,948
－
Income before income taxes and minority interests
55,289
80,867
Income taxes—current
23,218
30,050
Total extraordinary losses
Income taxes—deferred
(34)
(667)
Total income taxes
23,183
29,382
Income before minority interests
32,105
51,484
Minority interests in loss
(8)
Net income
32,113
12
－
51,484
(Consolidated Statements of Comprehensive Income)
Fiscal Year ended
March 31, 2012
(April 1, 2011
to March 31, 2012)
Income before minority interests
(Millions of yen)
Fiscal Year ended
March 31, 2013
(April 1, 2012
to March 31, 2013)
32,105
51,484
1,388
5,742
89
673
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Total other comprehensive income
Comprehensive income
1,477
6,415
33,583
57,900
33,591
57,900
Comprehensive income attributable to
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests
(8)
13
—
(3) Consolidated Statements of Changes in Net Assets
Fiscal Year ended
March 31, 2012
(April 1, 2011
to March 31, 2012)
(Millions of yen)
Fiscal Year ended
March 31, 2013
(April 1, 2012
to March 31, 2013)
Shareholders’ equity
Capital stock
Balance at the beginning of current period
63,201
63,201
—
—
63,201
63,201
111,403
111,417
Disposal of treasury stock
14
167
Total changes of items during the period
14
167
111,417
111,584
232,322
256,094
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
(8,341)
(9,178)
Net income
32,113
51,484
Total changes of items during the period
23,772
42,306
256,094
298,400
(47,215)
(47,165)
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
—
Disposal of treasury stock
49
288
Total changes of items during the period
49
288
Balance at the end of current period
(0)
(47,165)
(46,876)
359,711
383,548
Total shareholders’ equity
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
(8,341)
(9,178)
Net income
32,113
51,484
Purchase of treasury stock
—
Disposal of treasury stock
64
455
23,836
42,761
383,548
426,309
Total changes of items during the period
Balance at the end of current period
14
(0)
Fiscal Year ended
March 31, 2012
(April 1, 2011
to March 31, 2012)
(Millions of yen)
Fiscal Year ended
March 31, 2013
(April 1, 2012
to March 31, 2013)
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period
(1,178)
210
Changes of items during the period
Net changes of items other than shareholders’ equity
1,388
5,742
Total changes of items during the period
1,388
5,742
210
5,952
Balance at the end of current period
Deferred gains or losses on hedges
Balance at the beginning of current period
(763)
(673)
Net changes of items other than shareholders’ equity
89
673
Total changes of items during the period
89
673
(673)
—
Changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive income
Balance at the beginning of current period
(1,941)
(463)
Changes of items during the period
Net changes of items other than shareholders’ equity
1,477
6,415
Total changes of items during the period
1,477
6,415
Balance at the end of current period
(463)
5,952
Minority interests
Balance at the beginning of current period
8
—
Net changes of items other than shareholders’ equity
(8)
—
Total changes of items during the period
(8)
—
—
—
357,778
383,084
Changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
(8,341)
(9,178)
Net income
32,113
51,484
Purchase of treasury stock
—
Disposal of treasury stock
64
455
1,469
6,415
25,306
49,177
383,084
432,262
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
15
(0)
(4) Consolidated Statements of Cash Flows
Fiscal Year ended
March 31, 2012
(April 1, 2011
to March 31, 2012)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in provision
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Equity in (earnings) losses of affiliates
Loss on redemption of bonds
Decrease (increase) in notes and accounts receivable—trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable—trade
Increase (decrease) in accrued consumption taxes
Other, net
Subtotal
Interest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from redemption of securities
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of investment securities
Purchase of investments in subsidiaries resulting in
change in scope of consolidation
Payments of loans receivable
Collection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Cash dividends paid
Purchases of treasury stock
Payments for long-term accounts payable—other
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
55,289
41,944
6,331
(2,685)
(577)
1,857
4
(57)
－
(8,363)
769
5,044
1,560
4,701
105,820
483
(1,941)
(14,034)
90,327
80,867
36,131
－
(166)
(753)
1,673
19
(103)
249
(1,270)
(2,652)
3,136
(198)
4,439
121,372
755
(1,761)
(28,383)
91,982
(60,500)
11,500
(1,999)
1,999
(23,463)
1,577
(1,999)
(94,500)
95,500
(3,499)
3,499
(23,310)
8
(2,751)
－
16
(Millions of yen)
Fiscal Year ended
March 31, 2013
(April 1, 2012
to March 31, 2013)
(366)
(0)
418
(1,246)
(73,713)
(17,502)
196
(2,651)
(45,377)
20,000
(30,000)
56,137
(30,363)
－
(8,338)
－
(10,388)
(532)
(3,485)
(3)
13,124
35,386
48,511
－
－
－
(15,556)
(10,249)
(9,150)
(0)
(5)
446
(34,515)
(18)
12,071
48,511
60,582