Unique competitive advantages

O

rientalLandCo.,Ltd.

AN

NU

ALREPO

RT2011

Printed in Japan

1-1 Maihama, Urayasu, Chiba 279-8511, Japan

Oriental Land Co., Ltd.

“Oriental Land,” Oriental Land’s equivalent in Japanese, and the Oriental Land logo are registered trademarks or trademarks of Oriental Land Co., Ltd. in Japan and overseas. The names of other companies, other logos, product names, brands, etc., mentioned in this annual report are registered trademarks or trademarks of Oriental Land Co., Ltd. or the applicable companies.

Printed in Japan

1-1 Maihama, Urayasu, Chiba 279-8511, Japan

Oriental Land Co., Ltd.

“Oriental Land,” Oriental Land’s equivalent in Japanese, and the Oriental Land logo are registered trademarks or trademarks of Oriental Land Co., Ltd. in Japan and overseas. The names of other companies, other logos, product names, brands, etc., mentioned in this annual report are registered trademarks or trademarks of Oriental Land Co., Ltd. or the applicable companies.

OurCommitment—Bringing Happiness

www.olc.co.jpwww.tokyodisneyresort.co.jp

ANNUALREPORT2011

Premium Location

Traditional Hospitality

Sustaining Interest

Strong Finances

Proven Partnership

On July 11, 1960, Oriental Land was established.

At that time, Maihama was still part of the sea, but the Company’s

founder cherished one great hope for this place:

“Let’s create a genuine theme park, right here in Japan.”

That is the seed from which OLC grew.

The road to realizing that hope

—stretching out over half a century—

has not been smooth by any means.

Our first great challenge was land reclamation,

which created new value out of Maihama itself.

Maintaining their strong determination,

our predecessors steadfastly pursued their goal with a passion

we can scarcely imagine.

By sharing this strong founding hope among everyone at the OLC

Group, we have been able to overcome adversity many times over.

Slowly but surely, our great hope has come to fruition,

and continues to create new value as Tokyo Disney Resort.

Even now, this great hope is handed on to each and

every member of the OLC Group.

As we head into a new quarter-century,

toward the next 50 or 100 years, we are starting out again

on a new journey.

The “great hope” handed down to us from OLC’s founders is the source

of our competitive advantage and continues to support OLC’s growth.

We aim to bolster long-term, sustainable growth in corporate value

through maximizing these competitive advantages.

The Great Hope of Our Founding The Competitive Advantage Handed Down from OLC’s Founders

Unique competitive advantagesOwn vast land in a superb location

1. Extensive Land Approx.2millionsquaremetersofcontiguousland10kilometers(6miles)fromthecitycenter

2. Immense Market Populationofapprox.30millionwithsubstantialdisposableincomelivingwithina50-kilometer(30-mile)radius

3. Convenient Access 15minutesbytrainfromTokyoStationandabout30-60minutesbyshuttlebusfromNaritaandHanedaairports

The source of our strength is human resources: our cast members provide magnificent hospitality

Creating a place of dreams where guests will gain a whole new experience of happiness and wonder with every visit

Implement ongoing additional investment based on generating stable cash flow

Only Oriental Land operates Disney theme parks in JapanLicense agreement with Disney Enterprises, Inc. ManagementandoperationofDisneybrandfacilitiesinTokyoDisneyResort*

Royalties Proportionatetorevenues(yen-denominated)

Note:OLChasnocapitalorpersonalrelationshipwithDisneyEnterprises,Inc.*AsofAugust2011

High guest loyalty is linked to thestability of earnings

A wide range of supporters acquired over a periodspanning over the years

High employee loyalty is linked to thecontinuation of high-quality operations

• Joy of working in a business that has an objective of fulfilling guests’ emotional satisfaction• Values shared among all employees

HIGH GUEST LOYALTY HIGH EMPLOYEE LOYALTY

Demand for Happiness

Provision of Happiness

Raise the level ofGuest Satisfaction

Expand foundation of Tokyo Disney Resort fans

Raise the level ofEmployee Satisfaction

Secure employees with high motivation

Strengthen appeal

Increase cash �ow

Investment Attract moreguests

Intangibles

Outstanding Service QualityThesourceofourstrengthishumanresources:ourcastmembersprovidemagnificenthospitality

Tangibles

Ongoing InvestmentCreatingaplaceofdreamswhereguestswillgainawholenewexperienceofhappinessandwonderwitheveryvisit

Strengthen appeal

1979:SigningoftheagreementbetweenOLCandWaltDisneyProductions(currentlyDisneyEnterprises,Inc.)

2010:OrientalLand’s50thAnniversary

KeiseiElectricRailwayCo.,Ltd.headofficebuilding(asOrientalLandCo.,Ltd.wasestablished)

1Oriental Land Annual Report 2011

FACT BOOK2011年3月期For the Year Ended March 31, 2011

■ Contents

■ Financial Results and Key Indicators (Consolidated) 1

■ Interest-Bearing Debt 3

■ Segment Information 5

■ Principal Facility Data Classified by Segment 7

■ Theme Park Data 9

■ Consolidated Financial Statements 13

■ Nonconsolidated Financial Statements 17

■ Market Data 21

■ Stock Information 22

2 0 1 1

目次

連結指標

有利子負債の状況

セグメント情報

セグメント別主要施設データ

テーマパークデータ

連結財務諸表

単体財務諸表

業界動向

株式情報

Our Commitment —Bringing HappinessOur unwavering commitment —to continue bringing happiness

No matter what business we may pursue in the future, we will remain faithful to this commitment. Our 28,000 employees take great pride in their work. With a strong sense of professionalism, they apply themselves each day to bringing real happiness to our guests.

Our Commitment—Bringing Happiness

In 2010, we celebrated OLC’s 50th anniversary. Now, in 2011, with a renewed sense of determination, we are striving to keep fulfilling our mission over the next 50 years.

No matter what difficulties we may encounter, we must turn these into major opportunities, while remaining focused on self-innovation that will enable us to constantly create new value.

To continue bringing happiness that can only be experienced at Tokyo Disney Resort, we are committed to applying our utmost efforts.

The Great Hope of Our FoundingThe Competitive Advantage Handed Down from OLC’s FoundersEleven-Year Financial Highlights 4

Message from the Chairman 6

Message from the President 8Feature: OurCommitment—BringingHappiness

12

President’sReviewoftheOLCGrowthStrategyunderthe2010Medium-TermPlan

13

President’sOutlineoftheOLCGrowthStrategyunderthe2013Medium-TermPlan

16

TheContinuingEvolutionofTokyoDisneySea—Celebratingthe10thAnniversary

20

The OLC Group at a Glance 24

Review of Consolidated Operations 25

ThemeParkSegment 25

HotelBusinessSegment 28

OtherBusinessSegment 29

Response to the Great East Japan Earthquake 30

Business Mission 32

Corporate Governance 33

Corporate Social Responsibility (CSR) 40Board of Directors, Corporate Auditors and Corporate Officers

44

Financial Section46

Six-YearSummaryMessagefromtheOfficerinChargeoftheFinance/AccountingDepartment

47

Management’sDiscussionandAnalysisofOperations

48

ConsolidatedFinancialStatements 54

Corporate Data / Stock Information 75

Contents

Theme of Annual Report 2011

OLC’s Fact Book 2011 provides a wide range of long-term,historicaldata, including financial indicatorsandquantitativemanagementdata.

FACT BOOK 2011

www.olc.co.jp/en/ir/pdf/factbook2011.pdf

0

4000(%)

0

18

’07/3 ’08/3 ’09/3 ’10/3 ’11/3■■ Revenues　　 Operating Margin

9.9

342.4

9.1

344.1389.2

10.3

371.4

11.3

356.215.1

(Billions of yen)

Revenues & Operating Margin

0

4500(Yen)

0

6000

’07/3 ’08/3 ’09/3 ’10/3 ’11/3■■ Total Net Assets　　 BPS

4,046.03

388.2

4,079.44

385.0 373.7

4,109.59

366.5

4,240.59

357.84,289.99

(Billions of yen)

Total Net Assets & BPS

0

5500

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

31.134.1

40.1 41.9

53.7(Billions of yen)

Operating Income

0

8

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

3.84.3

4.7

6.96.3

(%)

ROE

0

95000

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

74.877.189.8 88.6

93.6(Billions of yen)

EBITDA

0

250(Yen)

0

350

’07/3 ’08/3 ’09/3 ’10/3 ’11/3■■ Net Income　　 EPS

171.46

14.7

154.86

16.318.1

196.84

25.4

280.17

22.9

265.26

(Billions of yen)

Net Income & EPS

Eleven-Year Financial HighlightsOrientalLandCo.,Ltd.andConsolidatedSubsidiariesFiscalYearsEndedMarch31

(Millionsofyen) Percentchange (ThousandsofU.S.dollars1)

’11/3 ’10/3 ’09/3 ’08/3 ’07/3 ’06/3 ’05/3 ’04/3 ’03/3 ’02/3 ’01/3 ’11/3 / ’10/3 ’11/3

FOR THE YEAR:Revenues ¥356,181 ¥371,415 ¥389,243 ¥342,422 ¥344,083 ¥332,885 ¥331,094 ¥336,517 ¥331,753 ¥281,081 ¥200,192 (4.1)% $ 4,283,596Operatingincome 53,664 41,924 40,096 31,144 34,111 30,605 34,562 38,765 38,029 33,662 22,130 28.0 645,388Netincome 22,908 25,427 18,089 14,731 16,309 15,704 17,224 18,530 18,932 12,727 4,740 (9.9) 275,502Capitalexpenditures2 27,904 19,419 40,140 52,691 54,807 43,129 46,855 29,277 14,848 109,788 182,226 43.7 335,586Depreciationandamortization,aggregate 39,985 46,695 49,733 43,623 42,951 43,374 44,555 45,982 47,935 37,954 18,422 (14.4) 480,878EBITDA3 93,649 88,619 89,829 74,767 77,062 73,979 79,117 84,747 85,964 71,616 40,552 5.7 1,126,266Freecashflow4 34,989 52,703 27,682 5,663 4,453 15,949 14,924 35,235 52,019 (59,107) (159,064) (33.6) 420,794AT YEAR-END:Totalassets ¥574,635 ¥615,090 ¥644,992 ¥757,542 ¥699,772 ¥718,866 ¥660,225 ¥654,425 ¥691,883 ¥694,769 ¥672,484 (6.6)% $ 6,910,824Totalnetassets5 357,779 366,473 373,660 388,181 385,001 375,947 389,714 373,866 355,002 338,618 327,672 (2.4) 4,302,814Interest-bearingdebt 142,937 173,289 193,019 294,320 235,626 266,945 202,449 209,286 265,922 296,985 272,572 (17.5) 1,719,026

(Yen) Percentchange (U.S.dollars1)

PER SHARE DATA:Netincome(EPS) ¥ 265.26 ¥280.17 ¥196.84 ¥154.86 ¥171.46 ¥162.73 ¥171.19 ¥184.23 ¥188.24 ¥127.11 ¥47.34 (5.3)% $ 3.19Netassets(BPS) 4,288.99 4,240.59 4,109.59 4,079.44 4,046.03 3,950.49 3,890.51 3,732.22 3,543.92 3,381.21 3,272.28 1.1 51.58Cashdividends 100.00 100.00 70.00 60.00 55.00 45.00 35.00 29.00 24.00 19.00 14.00 0.0 1.20

(Percent) Amountofchange

SELECTED FINANCIAL DATA:Operatingmargin 15.1% 11.3% 10.3% 9.1% 9.9% 9.2% 10.4% 11.5% 11.5% 12.0% 11.1% 3.8points

Returnonassets(ROA)6 3.9 4.0 2.6 2.0 2.3 2.3 2.6 2.8 2.7 1.9 0.8 (0.1)Returnonequity(ROE)7 6.3 6.9 4.7 3.8 4.3 4.1 4.5 5.1 5.5 3.8 1.5 (0.6)Equityratio 62.3 59.6 57.9 51.2 55.0 52.3 59.0 57.1 51.3 48.7 48.7 2.7 Payoutratio 37.7 35.7 35.6 38.7 32.1 27.7 20.4 15.7 12.7 14.9 29.6 2.0

Percentchange

Annualthemeparkattendance(thousandsofguests) 25,366 25,818 27,221 25,424 25,816 24,766 25,021 25,473 24,820 22,047 17,300 (1.8)%Revenuesperguest(¥) 10,022 9,743 9,719 9,370 9,309 9,220 9,178 9,247 9,505 9,763 9,236 2.9

Notes:1.TheU.S.dollaramountsareprovidedforconvenienceonlyandhavebeenconvertedattherateof¥83.15toU.S.$1,theprevailingexchangerateatMarch31,2011. 2.Capitalexpendituresincludestangibleandintangibleassetsandlong-termprepaidexpenses. 3.EBITDA=Operatingincome+Depreciationandamortization,aggregate

4.Freecashflow=Netincome+Depreciationandamortization,aggregate–Capitalexpenditures5.TotalnetassetsasofMarch31,2006andpreviousfiscalyearshasbeenrestatedinaccordancewithachangeinaccountingstandards.6.Returnonassets=Netincome/Totalassets7.Returnonequity=Netincome/Totalstockholders’equity

RevenuesdeclinedowingtotheimpactoftheGreatEastJapanEarthquake, which led to the temporary closure of facilities atTokyo Disney Resort. In contrast, the operating margin rosesubstantially,drivennotonlybyan increase in revenues in theThemeParkSegment,whichhasarelativelyhighprofitmargin,butalsobydecreasesinsuchvariablecostratiosasthecostofmerchandise ratio and cost of food and beverages ratio, andreductions in such fixed costs as personnel expenses, fixedexpensesanddepreciationandamortizationexpenses.

OurforecastinFebruary2011hadanticipatedourachievingROEinexcessof8.0%duetoacquisitionofstockrepurchasestotaling3.0million shares (3.3% of total shares issued and outstanding) andstrong financial performance. ROE was to 6.3% as a result of adecreaseinnetincomeduetotheimpactofthedisaster.

4 Oriental Land Annual Report 2011 5Oriental Land Annual Report 2011

Message from the Chairman and the President

Feature ReviewofConsolidatedOperations

CorporateGovernanceCSR

FinancialSection

Iwish to take thisopportunity tooffermydeepestsympathies toeveryonewhohassuffereddamage fromorbeen

affectedbytheGreatEastJapanEarthquake.AllofusatOLCprayfortherapidreconstructionandrecoveryofthedevas-

tatedareasandforthehealthandwell-beingofallthoseaffected.Ialsooffermyapologiestoallofourstockholdersand

investors for the concern we have caused, and wish to express my sincere gratitude for the tremendous amount of

supportwehavereceived,includingnumerousmessagesofencouragement.

Matters on which there is no room for compromiseWebelievethatinthethemeparkbusinessthereisnoroomforcompromiseovermattersofqualityandsafety.Sincewe

openedTokyoDisneylandin1983,wehaveremainedfaithfultothisphilosophy.

Instrivingtoenhancequality,werecognizenotonlytheimportanceoffacilitiesandotherphysicalinfrastructurebut

also thekey roleofpeople—inparticular thehospitalityprovidedbyourcastmembers.Put simply, theproductwe

provideisthecontentmentofourguests.AtTokyoDisneyResort,whenwecomeintocontactwithguests,thatisthe

momentwhenourproductiscreatedandsimultaneouslyconsumedbyguests.Theseproductsvanishinaninstant,and,

sincetheyhavenophysicalform,theycannotbesetasideasinventory.Italsomeansthatqualityismuchmoredifficult

tomanagethanisthecaseforabusinessthatdealsinphysicalgoods.Ontheotherhand,thegreatestsourceofjoyand

motivationforcastmembersisbeingpartofabusinesswhereprovidingcontentmentforguestsisitselftheessenceof

thebusiness.

Withregardtosafety,inadditiontothephysicalinfrastructure,suchasbuildingsandfacilities,Disneyhasdefinedwhat

iscalledthe“SCSE”principleasthestandardfortheservicesweprovidewithinthethemeparks,andapplyourutmost

effortstoensurethisprincipleishonored.“SCSE”isanacronymcomprisingfourwordsinaspecificorder—Safety,Cour-

tesy,ShowandEfficiency.Withinouroperations,safetyalwaystakesprecedence.Thisisfollowedbythecourtesyofour

castmembersandthestrongawarenessthatineverysituationweareprovidingashowforourguests,whichisessential

tomaintainingaconsistentlyhighlevelofquality.Finally,weaimtocarryoutourservicesefficiently.Iftheorderofprior-

ityofthesefourelementswerenotadheredto,wewouldceasetobeaDisneythemepark.

Returning to our original purpose to further strengthen the foundations of our businessIbelievethatitistheOLCGroup’srefusaltocompromiseonmattersofqualityandsafetythathasenabledustolimitthe

impactsoftheearthquaketotemporaryeffects.Byfocusingstronglyonsafetyandundertakingsuchmeasuresasground

improvementduringconstruction,weavoidedmajordamagetobuildings.Furthermore,preparations—includingTokyo

DisneyResortearthquakemanualanddisasterpreventiontrainingprograms—borefruit,andourcrisismanagementsys-

temenabledustorespondrapidly.Inaddition,Ibelievethatthesuperbactionsofourcastmembers—whichwentbeyond

thatcalledforinthemanual—emergednaturallyandreflectthekind-heartedapproachshowndailybycastmembers.

TheCompany’shistorytodatehasbynomeansbeenalleasysailing.Wehavesuccessfullynegotiatedmanydifficult

phasesalongtheway,includingtheUrayasureclamationproject,reachinganagreementwithWaltDisneyProductions

andtheTokyoDisneySeaproject.

Particularlyintimeslikethese,wemustonceagainreturntoouroriginalpurposetofurtherstrengthenthefounda-

tionsofourbusiness.TheseeffortswillenableustocontinuebringinghappinesstoourguestsandcreateanewOLC

Group. In theseendeavors, I look forward to theongoingunderstandingandsupport fromamedium- to long-term

perspectiveofallourstockholdersandinvestors.

August2011

Message from the Chairman

Returning to our original purpose, we will create a new OLC Group.

Representative Director, Chairman and CEO

Toshio Kagami





FinancialSection

Impact of the Great East Japan Earthquake

Solid operational foundation Challenge

Impact in the first half

The challenge will be overcomein the medium term

Respond to the crisis by leveraging the Company’s strengths

Further strengthen business foundations

Hardware side

High level ofsafety

Ground improvement No liquefaction in the theme parks

Highly earthquake-resistant design No serious damage to buildings

Software side

Strongemployee

loyalty

Functions of the crisis management system Prompt response to disaster

Hospitality of cast members Many compliments on their response during the disaster

Adjust theme park operations tomeet power supply/demand situation

Additional utilization of privatelyowned generators

Q. Please provide a recap of the fiscal year ended March 31, 2011.

Although the earthquake had an impact on results, by maintaining thorough cost controls we achieved the highest operating income in the Company’s history.

WithregardtotheimpactoftheGreatEastJapanEarthquake,Ifirstlywishtoexpressmydeepestcondolences

andsympathiestothevictimsofthisdisasterandtheirfamilies.InthefiscalyearendedMarch31,2011,although

revenuesdecreasedowingtosuchfactorsasthetemporaryclosureofthethemeparksfollowingtheGreatEast

JapanEarthquake,bothoperatingincomeandordinaryincomereachednewrecordhighs,reflecting,Ibelieve,

thesuccessofmeasuresimplementedunderthe2010medium-termplan.

In the themeparkbusiness, fromApril2010weheldvarious seasonalevents, including, for the first time,

aspecialEaster-themedeventatTokyoDisneyland.Themeparkattendance,priortotheearthquake,hadbeen

trendingatarecordpace,bolsteredbysuchfactorsastheopeningofanewattractionatTokyoDisneyland,

“Mickey’sPhilharMagic,”inJanuary2011,andbycontinuingexpansionoftheTokyoDisneySeafanbase.Reve-

nuesperguestalsosetanewrecord,reaching¥10,022,asmerchandiserevenuescontinuedtherisingtrendset

inthepreviousfiscalyear.Tobringhappinesstoguests,wecreatednewvalueand,Ibelieve,wewereableto

achievetheseresultsthroughoureffortstofurtherenhancethevalueofourthemeparks.

Evenduringthistimeofrobustrevenueperformance,continuingonfromthepreviousfiscalyear,weimple-

mented thorough cost control measures. As a result, although the temporary park closures following the

earthquakehadsome impact, theoperatingmargin increasedsubstantially, to15.1%.This increase reflected

suchfactorsasariseintheshareofrevenuesaccountedforbythethemeparkbusiness,whichhasarelatively

highprofitmargin,decreasesinsuchvariablecostratiosasthecostofmerchandiseratioandcostoffoodand

beveragesratiointhethemeparkbusiness,andsignificantdecreasesinsuchfixedcostsaspersonnelexpenses,

fixedexpensesanddepreciationandamortizationexpenses.

Q. What is your analysis of the impact of the Great East Japan Earthquake?

We are working to further strengthen the foundations of our business as we focus on the future.

Theearthquakedidnotcauseanyinjuriesorcasualtiestoourguestsoremployees.Ibelievethatwewereable

tominimizetheimpactoftheearthquakethankstoourhighlevelofriskpreparedness.

Intermsofhardware,throughsuchmeasuresasgroundimprovementtopreventliquefactionandconstruc-

tion based on high earthquake-resistance, there was no major damage to buildings or facilities. From the

softwareside,suchpreparationsasourearthquakemanualanddisasterpreventiontrainingprogramspaidoff,

and the effective operation of our crisis management system enabled us to respond rapidly. Furthermore,

theresponseofourcastmembersonthedayoftheearthquakehasresultedinourreceivingmanytributesof

praise.However,wemustdealwiththeissueofoperatingourbusinessesinaccordancewiththetightelectricity

supplysituationineasternJapan.Althoughthiswillhaveanimpactonourperformanceduringthefirsthalfof

the fiscal year ending March 31, 2012, we are undertaking measures that aim to prevent any medium-term

impactarisingfromthissituation.Forexample,bylate-August2011weintendtohaveinstalledadditionalpri-

vatelyownedgeneratorsthatwillenableustogenerateaportionofthethemeparks’electricityneedsourselves.

Inlightofthisdisaster,OLCwillidentifypreviouslyunforeseeablerisksandformulatepreventionandresponse

measureswiththeobjectiveofmakingourfacilitiesevensaferandmoredisaster-resistant.Further,toenablethe

provisionofhighqualityhospitalityevenintimesofemergency,ashasbeenthecasetodate,wewillprovide

ongoingtrainingprogramsandinstructionstoourcastmembers.

WithregardtotheimpactonoperatingresultsforthefiscalyearendedMarch31,2011,thebusinesslostdue

tothethemeparksclosureforthe20daysaftertheearthquakeresultedina¥6.7billiondeclineinoperatingin-

comefromtheforecastannouncedinFebruary2011. Inaddition,werecordedextraordinary lossduetothe

earthquakedamage,whichcomprised¥5.3billioninsuchfixedcostsaspersonnelexpensesanddepreciation

andamortizationduringtemporaryclosureofthethemeparks,and¥4.4billioninsuchitemsasrecovery-related

expenses, includingrepairsofparking lots,andmerchandisedisposal losses, fora totalof¥9.7billion.Conse-

quently, the impact of the earthquake on income before income taxes and minority interests was

approximately¥16.4billion.

Message from the President

Even in another 50 or 100 years time, we will continue bringing happiness to guests.

Representative Director, President and COO

Kyoichiro UenishiPresident Kyoichiro Uenishi at Tokyo Disneyland Hotel





FinancialSection

April May June July August September Last half year

0 24

Adjustment of Theme Park Operations to Meet Power Supply/Demand Situation

Gradual reopening Normal operations(stringent power-saving e�orts)

Normal operations(stringent power-saving e�orts)

Operation of both theme parks / Regular operation hours(Operations in line with government policies)

April 15: Reopening of Tokyo Disneyland

April 28: Reopening of Tokyo DisneySea

(Time)

Additional use of generators

Cover power shortages Implementation timing: Around late-August Investment amount: Approx. ¥3.0 billion

Peak usage

Reduction

Policy

Electricity usage (Image) Theme park operations adjusted toconserve electricity

Intermsofthespeedofpost-earthquakerecovery,wearesubjecttotheimpactofmarketconditions,which

maymeanthatexternalfactorswillmakeitdifficulttogrowthemeparkattendanceandrevenuesperguesttothe

extentpreviouslyenvisaged.Insuchaperiod,Ibelievethatitisimportanttofocusonenhancingcostandinvest-

mentefficiencytogiveusa leanoperatingstructure.Hence,wewillstrivefor furthercost-efficiency improve-

mentswhileensuringthatsafety ismaintained, includingcostcontrolcommensuratewithrevenuesandcost

reductionsthatdonotaffectthevalueofguestexperience.Inaddition,asameansofstrengtheningourbusiness

foundationsinpreparationfornewgrowth,wewillworktoenhancemedium-tolong-termoperatingmargin.

Whilerespondingtoexternalchanges,includingthroughmeasurestofurtherbolsterourdisasterprepared-

ness,byaggressivelypursuingtheimplementationofthemedium-termplan,wewillaimtogeneratestablefree

cashflowandsteadfastlyundertakepreparationsnecessaryforthenextstageofgrowth.(Fordetails,pleaserefer

topage16.)

Q. Please outline your message to stockholders and investors.

We have a renewed commitment to continue bringing happiness to guests.Althoughnetincomedecreasedowingtotheimpactoftheearthquake,inaccordancewithourpolicyofprovid-

ingstabledividends,wehavesetcashdividendsapplicabletothefiscalyearendedMarch31,2011,at¥100.00

pershare,thesameasthepreviousfiscalyear.Theconsolidatedpayoutratiowas37.7%.

ForthefiscalyearendingMarch31,2012,owingtothedifficultyinreasonableforecastsatthispoint,wehave

notyetmadeadividendforecast.Whiletakingexternalconditionsintoaccount,wewillaimtoprovidestable

futuredividends.

Withregardtostockrepurchases,inMarch2011wecarriedoutrepurchasesamountingto¥21.1billion,bring-

ingthetotalofstockrepurchasesexecutedduringtheperiodofthe2010medium-termplanto¥71.6billion.

Inthefuture,wewillconsiderfurtherstockrepurchasesasdeemedappropriate,aftercomprehensivelytaking

intoaccountsuchfactorsasmarkettrendsandeconomicconditions.

Intermsofreturnonequity(ROE),althoughourforecastinFebruary2011hadanticipatedourachievingROE

inexcessof8.0%,theimpactoftheearthquakeresultedinROEof6.3%.OurstanceofworkingtoachieveROEof

8.0%orhigherattheearliestpossiblestageremainsunchanged,eventhoughthetimingofourreachingthis

targetmaybesomewhatdependentonexternalconditions.

Duringthesequenceofeventsbeginningwithexperiencinganearthquakeofunprecedentedproportions,

thetemporaryclosureofthethemeparksandthesubsequentrecommencementofoperations,onequestion

wehavehadtoconfrontdirectlywas,“WhatisOLC’smission?”Whenitcametoreopening,intruththerehad

beensomeambivalenceandinfactawiderangeofopinionswerevoiced.However,whenTokyoDisneyland

reopenedonApril15—theanniversaryofourgrandopeningin1983—themomentwesawthesmilingfacesof

somanyguests,weonceagainreaffirmedourdeterminationtocontinuebringinghap-

pinesstoguests.Inthefuture,nomatterwhatbusinesswepursue,thismissionwillre-

mainunchanged.Wearereturningtoourroots,endeavoringtosetcourseforanew

stageofgrowth.Lastyearwecelebratedthe50thanniversaryofOLC’sfounding.Inthe

fiscalyearendingMarch31,2012,wemarkanewstartfortheOLCGroup—thebegin-

ningofthenext50yearsofourjourney.Itismyfirmbeliefthatwecanturnthisdifficult

phaseintoamajoropportunityanddeterminetheoveralldirectionforalong-termspan

thatwillenableustocontinuebringinghappinessforanother50or100years.Wehope

that our stockholders and investors will look forward to enhanced stockholder value

fromalong-termperspective,andwerequestyourcontinuedsupport.

MessagefromthePresident

Q. Please provide your outlook for the fiscal year ending March 31, 2012.

While complying with policies announced by the government, we will strive to operate without reducing the experience value provided to guests.

With regard to results forecasts for the fiscalyearendingMarch31,2012,wehavenotannounced forecasts

owingtothedifficultyinestimatingreasonableforecastsatthispointintime.Weintendtoexaminetheimpact

ofexternalfactorsonoperatingperformance,includingtheelectricitysupply/demandsituation,andannounce

forecastsinatimelymannerwhenitisreadyfordisclosure.

Although our two theme parks were both temporarily closed after the earthquake, we reopened Tokyo

DisneylandonApril15,andthenreopenedTokyoDisneySeaonApril28,meaningtheparkshaveresumednormal

operations. Inthe immediatefuture,wewilloperatethethemeparks inaccordancewiththeelectricitysupply/

demandsituationwithoutreducingtheexperiencevalueprovidedtoguests.Forthesummerof2011,weplanto

operate both theme parks under regular operation hours while adhering to government policies that call for

areductioninelectricityconsumption.

In the fiscalyearendingMarch31,2012,depreciationandamortization isanticipated tobeat the levelof

approximately ¥40.0 billion, and capital expenditures are expected to be at the level of approximately ¥30.0

billion,whichhasnotbeenincreasedevenaftertheearthquake.

Q. Please provide an overview of the direction of the 2013 medium-term plan.

Our overall direction remains unchanged, and we will implement the plan while responding to changes in the operating environment.

ThefiscalyearendingMarch31,2012istheinitialyearofthe2013medium-termplan.Weareaimingtorealize

sustainablegrowthinourcorebusinessandutilizethestablefreecashflowgeneratedbythebusinesstoprepare

forthenextstageofgrowthandtoprovidereturnstostockholders.Hence,followingtheearthquakethereisno

change in our overall direction. We are at present assessing the impact of the earthquake on our target of

generatingapproximately¥120.0billioninfreecashflowoverthethree-yearperiodoftheplan.Althoughsome

short-termimpact isunavoidable,wecontinuetobe inabusinesscyclephase inwhichwearegeneratinga

steadyfreecashflow.Regardingourguidelinefigures—thekeyassumptionsunderpinningourtargets—weare

currentlyreviewingthesewhiletakingintoaccountearningstrendstodate,andwillannouncenewfiguresasit

isreadyfordisclosure.


56.5

53.7

¥27.0 billion level


Impact of the earthquake

30.9

22.9

Impact of the earthquake

Forecast in Feb. 2011

Forecast in Feb. 2011

’08/3 ’09/3 ’10/3 ’11/3

31.1

40.141.9

14.7

18.1

25.4

Operating Income (Results) 2010 Medium-Term Plan Guideline Figure

Net Income (Results) 2010 Medium-Term Plan Target Figure

2010 Medium-Term Plan: Changes in Pro�t

(Billions of yen)

We steadily strengthened Tokyo Disney Resort’s underlying business, and achieved an increase in the base earnings level.

Achieved record operating income in three consecutive fiscal years

Overthepastfourfiscalyears,fromthefiscalyearendedMarch31,

2008tothefiscalyearendedMarch31,2011,theOLCGroupimple-

mented the 2010 medium-term plan. Under the plan, these four

yearswerepositionedas“aperiodforpromotingeffortstogenerate

new growth in the OLC Group.” Based on earnings growth and

appropriateallocationofresources,westrovetobolstercorporate

valuebybuildingafoundationforstable,long-termgrowth.Oneof

ourkeynumerical targetswas tobuildnet incometo the levelof

¥27.0 billion by the fiscal year ended March 31, 2011. However,

owing to the impact of the Great East Japan Earthquake, which

occurred on March 11, 2011, we recorded extraordinary losses,

leadingtonetincomeamountingto¥22.9billion.Althoughwedid

not reach our net income target, our efforts in such areas as

enhancementofthequalityofTokyoDisneyResortandimprovement

incostefficiencyresultedinourachievingrecordoperatingincome

inthreeconsecutivefiscalyears.

Furthermore, we were successful in reaching another of our

numericaltargets—aconsolidatedpayoutratioof35%orhigher—

continuouslyoverthefouryearsofthe2010medium-termplan.

President’s Review of the OLC Growth Strategy under the 2010 Medium-Term Plan

Feature

Our Commitment —Bringing Happiness

We will strive to ensure that the evolution we have achieved to date will continue to bring happiness even in another 100 years time. With this unwavering determination in the hearts of 28,000 OLC Group employees, we are setting out on a challenge that will take us to the next stage.


MessagefromtheChairmanandthePresident



FinancialSection

(Billions of yen) (Times)

’08/3 ’09/3 ’10/3 ’11/3

Interest-Bearing Debt &Debt-to-Equity Ratio

193.0

294.3

173.3142.9

0.52

0.76

0.47 0.40

Interest-Bearing Debt Debt-to-Equity Ratio

(Millions of guests)

’08/3 ’09/3 ’10/3 ’11/3

Annual Theme Park Attendance

27.2225.42 25.82 25.37

Inuence of the earthquake

27.00 [Forecast in Feb. 2011]

(Yen)

’08/3 ’09/3 ’10/3 ’11/3

Net Sales per Guest

9,7199,370 9,743 10,022

(%)

’08/3 ’09/3 ’10/3 ’11/3

Operating Margin

10.39.1

11.3

15.1

(Yen)

’08/3 ’09/3 ’10/3 ’11/3

Cash Dividends per Share & Payout Ratio

Achieved one year ahead of schedule

Cash Dividends per Share Payout Ratio

(%)

7060

100 100

38.7 35.6 35.737.7

(%)

’08/3 ’09/3 ’10/3 ’11/3

ROE

4.73.8

6.96.3

In�uence of the earthquake

Expected to reach 8% or above[Forecast in Feb. 2011]

Further strengthen the core business (Tokyo Disney Resort) Establishing the foundation for new growth

Asoneofthemainpillarsofthe2010medium-termplan,westrove

tofurtherstrengthenourcorebusiness.Toraiseguestsatisfaction

levels, we focused on making quality improvements to both the

infrastructure side and our human resource side at Tokyo Disney

Resort.

Ontheinfrastructureside,wehadtwograndopeningsofmajor

newfacilities—TokyoDisneylandHotel inJuly2008andCirque du

Soleil Theatre Tokyo in October 2008. At Tokyo Disneyland, we

began a new daytime parade “Jubilation!” and opened two new

attractions, “Monsters, Inc. Ride & Go Seek!” and “Mickey’s Philhar-

Magic.” At Tokyo DisneySea, we introduced new products as

planned, including the new attraction “Turtle Talk,” and the new

Disneycharactergreetingfacilities“SaludosAmigos!GreetingDock.”

Onthehumanresourceside,wefocusedonenhancingemployee

satisfaction from the perspective that it is important to build and

maintainanenvironmentforcastmembersinwhichtheyfeelgood

about their jobs—providing hospitality to guests. For the Tokyo

Disney Resort 25th Anniversary, we conducted the “Reminding

Program”—anewtrainingprogramcoveringallemployeesworking

at the resort—with the objective of helping cast members think

backtowhentheyfirstbeganatTokyoDisneyResort.Thisandother

programs are designed to maintain a high level of motivation

among cast members while creating a work environment that

encouragesemployeestoremainattheresortlong-term.

Inthisway,byimprovingqualityonboththephysicalinfrastruc-

ture and human resource sides of the business, we bolstered the

valueofthethemeparksandenhancedtheguestexperiencevalue.

Inlinewiththeenhancedvalueofthethemeparks,inApril2011we

revisedticketprices.

The next aspect we focused on was clarifying our target guest

segments.Byprovidingvalueinlinewiththeneedsofeachguest

segment, we aimed to expand our overall market. To respond to

demographicchangesinJapan—decliningbirthratesandanaging

population—weareworkingtosteadilyincreasethemeparkatten-

dance by consistently attracting the family segment, which

constitutethehighestvolumeoftheentireattendance,whilealso

bolsteringappealamongguestsintheover-40segment.

Intheareaofimprovingcostefficiency,byestablishingsolidrev-

enueplans,westrovetocurbcostsandinvestment.Thankstothe

successof thismanagementcontrolmethodformaximizingearn-

ings and free cash flow and other measures, we increased the

operatingmarginfrom9.1%inthefiscalyearendedMarch31,2008

to15.1%inthefiscalyearendedMarch31,2011.

Basedonthesetypesofpolicies,overthefouryearsoftheplanwe

steadily strengthened Tokyo Disney Resort’s underlying business,

andachievedan increase in thebase-earnings level.Althoughwe

didnotreachournetincometargetforthefiscalyearendedMarch

31, 2011, owing to the impact of the earthquake, we achieved

recordoperatingincomeinthreeconsecutivefiscalyears.

Tomaintainadequateinvestmentcapacity,wehavesteadilyreducedinterest-bearingdebt

and strengthened our financial structure. Under the 2010 medium-term plan, interest-

bearingdebtwasreducedfrom¥294.3billionatMarch31,2008to¥142.9billionatMarch

31,2011.Thedebt-to-equityratioimprovedto0.40times.

Wehavealsopursuedapolicyofselectingandfocusingonkeybusinesses.Thiswasthe

rationalebehindourpassingthemanagementoftheDisneyStoreretailbusinesstoThe

WaltDisneyCompany(Japan)Ltd.inMarch2010.Withregardtothedevelopmentofnew

businesspoliciesthathavethepotentialtobecometheOLCGroup’ssecondmajorearning’s

sourceafterTokyoDisneyResort,wewillcontinuetosetandexaminestrategiesunderthe

2013medium-termplan.

Increasing the value of the OLC Group

Based on our policy of emphasizing stockholder return, we have achieved a substantial

increase incashdividends.Wemetourtargetofcashdividendsatthelevelof¥100per

share by the fiscal year ended March 31, 2011, a year ahead of schedule. Furthermore,

theconsolidatedpayout ratio targetof35%orhigherwasachieved in fourconsecutive

fiscalyears.

Inaddition,duringtheperiodofthe2010medium-termplan,wecarriedoutstockrepur-

chasestotaling11.7millionshares(¥71.6billion).

Intermsofreturnonequity(ROE),althoughourforecastinFebruary2011hadanticipated

ourachievingROEinexcessof8.0%,theimpactoftheearthquakeresultedinROEof6.3%.

President’sReviewoftheOLCGrowthStrategyunderthe2010Medium-TermPlan

Stock Repurchases during the Period of the 2010 Medium-Term Plan

Timingofacquisition Numberofsharesacquired Totalvalueofsharesacquired

June2008 4.20 million shares (4.4%oftotalsharesissuedandoutstanding) ¥24.4 billion

March2010 4.50 million shares (4.9%oftotalsharesissuedandoutstanding) ¥26.1 billion

March2011 3.00 million shares (3.3%oftotalsharesissuedandoutstanding) ¥21.1 billion

Total 11.70 million shares ¥71.6 billion





FinancialSection

Continue to generate a high level of free cash �ow

Sustainable growth of the core business (Tokyo Disney Resort)

1 Creation of new value

2 Market development

3 Cost and investment e�ciency

Growth

E�ciency1

Reinforcement of the foundation for long-term sustainable growth

1 Preparation for new growth

2 Stockholder returns ROE improvement

Sustainability2

2013 Medium-Term Plan (From the �scal year ending March 31, 2012 to the �scal year ending March 31, 2014)

MANAGEMENT OBJECTIVE Generate corporate value which will enable sustainable growth over the long termTARGET ¥120.0 billion level*1 of aggregated free cash �ow*2 to be generated during three years

Free Cash Flow Capital ExpendituresChanges in Free Cash Flow

’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

¥115.4 billion for three years

¥120.0 billion levelfor three years

Under scrutiny of transient impact

2010 Medium-Term Plan 2013 Medium-Term Plan

Priority investment period Period of continuous generation of free cash flow

Period of preparation for new growthOpening of Tokyo DisneySea


’11/3 ’12/3 ’13/3 ’14/3

Tokyo DisneySea 10th Anniversary

(From September 4, 2011 through March 19, 2012)

Tokyo Disney Resort 30th Anniversary

Mickey’s PhilharMagicOpened on January 24, 2011 (3D theater-type attraction to experience the world of Disney lms)

Cinderella’s Fairy Tale Hall Opened on April 15, 2011 (Walk-through attraction inside Cinderella Castle)

Fantasmic!Started on April 28, 2011 (New nighttime entertainment replacing “BraviSEAmo!”)

Mickey & Friends’ Greeting TrailsOpened on April 28, 2011 (Character greeting facility)

Jasmine’s Flying CarpetsOpened on July 18, 2011 (Ride attraction based on the lm Aladdin)

Village Greeting PlaceOpened on July 8, 2011 (Character greeting facility (Du�y))

Toy Story Mania!Scheduled to open in 2012 (3D ride attraction based on the lm Toy Story)

Tokyo Disneyland

Tokyo DisneySea

Main Measures to Enhance the Value of Tokyo Disney Resort in the 2013 Medium-Term Plan

Sustainable growth of the core business

Creation of new value

To create new value, at our two theme parks comprising Tokyo

DisneylandandTokyoDisneySea,weplantointroduceadiverserange

ofnewproductsandeffectivelyutilizeascheduleofanniversaryevents

toincreasethevalueofthethemeparksinacarefullyplannedmanner.

Specifically,fromApril2011wereopenedTokyoDisneySea.Atthe

sametime,we launched “Fantasmic!”asnewnighttimeentertain-

mentandnewDisneycharactergreetingfacilities“Mickey&Friends’

GreetingTrails.”Moreover,inJuly2011weopenednewDisneychar-

acter greeting facilities “Village Greeting Place” and new attraction

“Jasmine’sFlyingCarpets.”WewillholdTokyoDisneySea10thAnni-

versaryeventsfromSeptember4,2011toMarch19,2012.

Weplantointroduceanew“ToyStoryMania!”interactive3Dride

attraction based on the Disney/Pixar Toy Story film series. We will

strivetomaximizethelatentpotentialofTokyoDisneyResortinthe

lead-uptothe30thanniversaryofTokyoDisneyResort,whichwe

willcelebrateduringthefiscalyearendingMarch31,2014,thefinal

yearofthe2013medium-termplan.

We are also pursuing strategies to create and expand earnings

opportunitiesacrossTokyoDisneyResortasawhole.Whileworking

to enhance guest satisfaction by reducing waiting times, we are

simultaneouslyaimingtoimproveearnings.Inaddition,weplanto

reinforce the allocation of resources relating to development and

investment that will contribute to increased earnings at Tokyo

DisneyResortasawhole,suchasthecreationofnewcontentsand

theeffectiveutilizationofexistingfacilities.Basedonthesepolicies,

we aim to create new value that enhances guest satisfaction and

bolstersearnings.Asaspecificexample,weareparticularlyfocusing

our efforts on the development and promotion of Tokyo Disney

Resort Vacation Packages. These are product packages offering a

high level of value-added by combining hotel accommodation

withsuchparkcontentsasFASTPASS®ticketsandreservedtickets

to see popular shows. Although we only sold these packages

throughourWebsite,fromOctober2010webeganofferingthese

packagesbytelephonefromourTokyoDisneyResortReservations

Centertobolstersales.

President’s Outline of the OLC Growth Strategy under the 2013 Medium-Term Plan

In addition to responding to anticipated future changes in the operating environment, we will remain focused on self-innovation that will enable us to constantly create new value.

Working toward long-term, sustainable growth in corporate value

FromthefiscalyearendingMarch31,2012tothefiscalyearending

March31,2014,OLChascommenced implementationof its2013

medium-termplan.Inadditiontorespondingtoanticipatedfuture

changesintheoperatingenvironment,wewillremainfocusedon

self-innovationthatwillenableustoconstantlycreatenewvalue.

The plan’s fundamental objective is “sustainable growth of the

corebusiness(TokyoDisneyResort)”toconsistentlygenerateahigh

leveloffreecashflow,whichwillthenbeallocatedtoinvestments

preparingfornewgrowth,returnstostockholdersandotherefforts

designedtoreinforcetheGroup’sfoundationforlong-term,sustain-

ablegrowth.Withregardtoournumericaltargetforfreecashflow,

wearecloselyassessingtheimpactoftheearthquake.

*1.Underscrutinyoftransientimpactoftheearthquake*2.Freecashflow=Netincome+Depreciationandamortizationexpenses–Capitalexpenditures

Market development

Todate,wehaveraisedthebaselevelofthemeparkattendanceby

achievingincreasesinguestnumbersduringyearsinwhichweheld

anniversary events. In the future, we plan to cultivate the market

throughthepromotionofvisitstoboththemeparksandbyworking

toattractoverseasguests.

Specifically,inworkingtowardsustainedgrowth,wearepromoting

toattractgueststoboththemeparksbyendeavoringtoachievea

balancebetweenexpandingTokyoDisneyResort’sfanbaseanden-

hancingourabilitytoattractrepeatguests.Firstly,withregardtothe

expansionofTokyoDisneyResort’sfanbase,weplantoutilizeanni-

versaryeventsthathaveextremelystrongguestappealasameansof

broadeningtherangeofguestsegmentsattractedtotheresort,and

therebyincreasethebaselevelofthemeparkattendance.





FinancialSection

Income margin improvesOperating margin:

approx. 15%

Burdened with high depreciation and amortization expenses / Increase in costsOperating margin: approx. 10%

Single park eraOperating margin:

approx. 20%

Note: The results before 1998 are nonconsolidated.

’97/3 ’98/3 ’99/3 ’00/3 ’01/3 ’02/3 ’03/3 ’04/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3

(Billions of yen)

Operating Income & Operating Margin

Non-Consolidated Operating Income Consolidated Operating Income Operating Margin (Billions of yen)

(%)

53.7

15.1

25.4

34.529.5

35.814.6

18.416.8

19.8

22.1

11.1 33.7

12.0

38.0

11.5

38.8

11.534.6

10.430.6

9.2

34.1

9.931.1

9.1

40.1

10.3

41.9

11.3

11.9 11.3 11.7 12.5 18.4 38.0 47.9 46.0 44.6 43.4 43.0 43.6 49.7 46.7 40.0

Capital Expenditures 38.4 44.1 59.8 130.5 182.2 109.8 14.8 29.3 46.9 43.1 54.8 52.7 40.1 19.4 27.9

Depreciation andAmortization

(Millions of guests)

’84/3 ’85/3 ’86/3 ’87/3 ’88/3 ’89/3 ’90/3 ’91/3 ’92/3 ’93/3 ’94/3 ’95/3 ’96/3 ’97/3 ’98/3 ’99/3 ’00/3 ’01/3 ’02/3 ’03/3 ’04/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Changes in Annual Theme Park Attendance

By Fiscal Year Three-Year Moving Average

Opening of Tokyo Disneyland

Tokyo Disneyland5th Anniversary

Tokyo Disneyland 10th Anniversary

Opening of Tokyo DisneySea


Tokyo DisneySea 5th Anniversary Tokyo Disney Resort25th Anniversary


9.93 10.01 10.68 10.67 11.9813.38

14.7515.88

16.14 15.82 16.03 15.51 16.99 17.37 16.69 17.46 16.51 17.30

22.05

24.8225.47

25.02 24.77 25.82 25.42 27.22 25.82 25.37

Usage of Free Cash Flow

Stockholder returns2Reduction of interest-bearing debt (Tosecurereservestoinvestinnewgrowth)3

Investment in new growth areas1 Establish a policy during the period covered by the 2013 medium-term plan

’08/3 ’09/3 ’10/3 ’12/3’11/3

Depreciation and Amortization

¥49.7 billion¥43.6 billion ¥46.7 billion

¥40.0 billion*¥40.0 billion*

* Excluding extraordinary loss

2010 Medium-Term Plan 2013 Medium-Term Plan’08/3 ’09/3 ’10/3 ’11/3 ’12/3

Capital Expenditures

¥40.1 billion

¥52.7 billion

¥19.4 billion

¥27.9 billion

¥35.2 billion[Forecast in Nov. 2010]

Decreased

Approx. ¥4.0 billion [Postponed]



Wealsointendtointroducenewproductswithhighfamily-enter-

tainmentappealasameansofincreasingtheresort’sattractivenessto

familieswithyoungchildren.Tobolsterappealamongguestsover40

whosetimeislesstakenupbychildrearingastheirchildrengrow,we

intend to strengthen our lineup of Tokyo Disney Resort Vacation

Packagestowinevenstrongerguestloyalty.Asastrategytoattractand

increasemorerepeatvisits,weplantofocusonmeasurestoenhance

guest satisfaction, which include enriching our calendar of seasonal

eventssuchasHalloweenandEastereventsinadditiontoChristmas

events.Wealsoplantofocusonenhancingguestsatisfaction.

Withregardtostrategiesforattractingoverseasguests,although

thenumberofoverseasvisitors toJapanmaydecline in theshort

runduetotheimpactoftheGreatEastJapanEarthquake,theJapa-

nesegovernmentistakingtheleadinconsideringvariousinitiatives

aimedat increasing thenumberofoverseasvisitors toJapan.The

medium- to long-term target visitor numbers announced by the

governmentindicateasignificantincreaseinthefuture.Weregard

suchapolicyasanopportunityandarepoisedtocapitalizeonitby

respondingappropriately.

Enhancing cost efficiency and return on investment

To improve cost efficiency while ensuring that safety is maintained,

OLCwillworkonthereductionofrunningcoststhroughmeasuresthat

willnot reduce theexperiencevalueprovided toguests.Simultane-

ously,OLCwillfocusonmaintainingahighlevelofguestsatisfaction.

Withregardtoinvestmentinthethemeparkbusiness,wehave

setapolicytocarryout investmentsoverthe10-yearperiodfrom

thefiscalyearendingMarch31,2012tothefiscalyearendingMarch

31,2021,ata level totalingapproximately¥200billion.Key invest-

ment areas are new products to promote the evolution of Tokyo

DisneySeaduringthe initial fiveyears,andrenewalsand improve-

ments during the latter five years. We will continue to focus on

controllinginvestmentintheThemeParkSegmentasourcorebusi-

nessandaimtofurtherimproveinvestmentefficiency.Depreciation

and amortization expenses are expected to decrease over the

mediumterm,reflectingimprovedinvestmentefficiency.

After the fiscalyearendedMarch31,2001, theoperatingmargin

decreasedtoaround10%duetoasignificantincreaseindepreciation

andamortizationexpensesasaresultoflarge-scaleforward-looking

Reinforcing the Group’s foundation for long-term, sustainable growth

Wewillallocatetheconsistentlyhighstreamoffreecashflow,gen-

eratedbysustainedgrowthofourcorebusiness,toreinforcingthe

Group’sfoundationforlong-termsustainablegrowth.

ToreinforcetheGroup’sfoundation,ourhighestpriorityisinvest-

mentinbusinesseswiththepotentialtogeneratenewgrowth.To

developnewbusinessesthatcanbuilduponTokyoDisneyResort,

wewillleverageOLCGroup’sstrengthsandinvestinbusinessesin

whichweseepotential for return. Investmentswillbecarriedout

basedonapolicyofselectingandfocusingonkeybusinesses,and

wewillconsideravarietyofopportunitiesandmethodsdrivenbya

long-termperspective.

Wewillcontinuetoreduceinterest-bearingdebttoensurethat

sufficient investment capacity is available for new growth in the

yearsahead.

In addition, as in the past, we will continue to place significant

weightonstockholderreturnswhenallocatingtheuseofthesteady

freecashflowgeneratedbyourbusiness.Weaimtopaystablecash

dividendswhiletakingexternalfactorsintoconsideration.Moreover,

wewillconsiderfurtherstockrepurchasesasappropriate.Weaimto

achieve 8% or higher ROE as early as possible through earnings

growthanddirectstockholderreturns.

President’sOutlineoftheOLCGrowthStrategyunderthe2013Medium-TermPlan

investmentinTokyoDisneySeaamongothers.However,theoperat-

ingmarginhasimprovedtoapproximately15%,duetoadecreasein

variablecostratioandfixedexpensesasaresultofourvariousefforts

toimprovecostandinvestmentefficienciesforthepastfewyears.

Wewillstrengthenourcontrolbasedonalong-termperspective,

ensuringanappropriatebalanceofinvestmentresourcesallocated

acrossnewproductsandrenovationsandimprovements,withthe

aimofenhancingtheattractivenessofTokyoDisneyResort.





FinancialSection

Main Measures to Enhance the Value after Opening Tokyo DisneySeaEvolution of Tokyo DisneySea

family entertainment, the world of Disney,

extraordinariness

innocence of childhood,

fantasy, cute

Characteristics of Tokyo Disneyland

mature, romantic, sophisticatedatmosphere

Characteristics of Tokyo DisneySea

Values common to both Disney theme parks

Raging SpiritsOpened on July 21, 2005

Tower of TerrorOpened on September 4, 2006

Turtle TalkOpened on October 1, 2009

Saludos Amigos! Greeting DockOpened on May 1, 2010

Mickey & Friends' Greeting TrailsOpened on April 28, 2011

Fantasmic!Started on April 28, 2011

Village Greeting Place Opened on July 8, 2011

Jasmine’s Flying Carpets Opened on July 18, 2011

Toy Story Mania!Scheduled to open in 2012

5th 10th

Expansion

The world’s only sea-themed Disney parkAt a press conference to mark the 5th anniversary of Tokyo

Disneylandin1988,OLCannouncedplansforasecondthemepark.

Mr.MasatomoTakahashi,thenpresidentofOrientalLand,calledon

employeestopursuetheprojectbasedonthefollowinginstruction,

“Whenwecreatesomethingnewhere,wemustapproachitwithan

imagination that reaches over the sea.” In September 2001, we

accomplished the opening of Tokyo DisneySea, the world’s only

sea-themedDisneyPark.

When Tokyo DisneySea first opened, all of the attractions were

completely new—they had been specifically developed for this

theme park. The sole exception was “Indiana Jones Adventure:

TempleoftheCrystalSkull,”whichhadpreviouslyfeaturedatDisney

theme parks in the United States. Furthermore, Tokyo DisneySea

wasdesignedtoappealtoabroaderrangeofagesegmentsthan

Tokyo Disneyland, particularly focusing on guests 40 and over.

Basedonthisconcept,restaurantsatTokyoDisneySeaservedbeer

andwine,andofferedarichlineupofentertainingshows.

Enhancing value through improvements and creationTocontinuebringinghappinesstoourguestssincetheopeningof

TokyoDisneySea,OLChasfocusedonenhancingthelevelofguest

satisfaction. Walt Disney said “Disneyland will never complete.”

Hence, day by day, we need to keep improving and creating the

theme park. For example, since the park first opened, we have

continuedtoimplementnewmeasurestorelievethesenseofcon-

gestion.FASTPASSisasystem,wherebyguestsregisterinadvance

the time they will enter an attraction, thereby enabling them to

enjoyattractionswithouthavingtolineupforlongperiods.When

Tokyo DisneySea opened, there were only three attractions that

used the FASTPASS system. But we have subsequently expanded

thesystemtoincludeafurtherfiveattractions.

TokyoDisneySeahasfromthebeginningincludedseveralareas

of landsetaside for thedevelopmentofnewattractions,andwe

have carried out development of these areas in accordance with

various themes. The introduction of new attractions not only

providesacatalystforgueststovisitthethemeparkbutalsoleads

to the expansion of the park’s capacity. In addition, by arranging

large-scaleattractionssystematically,weareabletobetterdistrib-

uteguestflowaroundthepark.Asaresult,wehavebeenableto

provide guests with an experience that feels less crowded and

henceguestsatisfactionhasbeenenhanced.

Forourregularshows,wehaveadheredtoastrategyofchanging

shows once every few years. When we develop a new show,

weconsiderwaystomaketheshowappealingtoaslargeanaudi-

ence as possible, and also make improvements so that even on

rainyorwindydayswecanprovideamodifiedversionoftheshow.

The Continuing Evolution of Tokyo DisneySea—Celebrating the 10th Anniversary

Tokyo DisneySea opened on September 4, 2001. In the 10 years since then, the theme park has continued to grow, driven by improvements and creation. Looking ahead, we are committed to ensuring that Tokyo DisneySea evolves to its next stage of growth.





FinancialSection

(%)

’01/3 ’02/3 ’03/3 ’04/3 ’05/3 ’06/3 ’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Guests by Age

Adult (Over 40) Adult (18 to 39) Junior (12 to 17) Child (4 to 11)

16.2 17.0 17.9

20.0 19.9 19.2

19.1

18.4

11.8 11.3 10.7 10.1

52.0

15.4

19.9

12.5

52.2

15.3

19.7

13.0

52.0

15.2

18.7

13.1

53.0

15.6

18.4

12.6

53.4

13.7

18.1

12.2

56.0

10.7

19.2

12.5

57.6 51.8 52.2

17.7

18.1

11.1

53.1 52.4

100

Fantasmic!

Forverypopularshows,wehaveintroducedmeasuresdesignedto

reducewaiting time, suchasallocatingseats for shows througha

lotterysystem.

Inadditiontoattractionsandshows,wehaveprovidedavarietyof

special events. These include not only events unique to Tokyo

DisneySeabutalsoChristmas,Halloweenandotherseasonalevents

thatoriginallygainedpopularityatTokyoDisneyland.Bydeveloping

eventsthatrunatboththemeparks,wehavebroadenedtheTokyo

DisneySeafanbaseandwonmanyrepeatguests.

Bringing happiness to a broader range of target segmentsSince its opening, we have fostered the development of Tokyo

DisneySea’s own distinctive brand that is differentiated from the

Tokyo Disneyland brand. We have done this through a variety of

strategies, such as offering an abundance of entertainment that

appealstomatureaudiencesandbyservingalcoholicbeveragesat

therestaurantsinthepark.Theseeffortshavepaidoff,asreflectedin

our brand-image market research, which indicates that Tokyo

DisneySeaisseenbyguestsasathemeparkwithamature,romantic,

sophisticatedatmosphere,andthattheimagesofTokyoDisneyland

andTokyoDisneySeaarequitedistinct.Asshowninthechartbelow,

we have achieved consistent increases in the number of guests

aged40andoversincetheopeningofTokyoDisneySea.

Inthefuture,inadditiontomaintainingTokyoDisneySea’sdistinc-

tivebrand,wewillalsoworktoenhancethevaluesitshareswithall

DisneythemeparkstopromotetheevolutionofTokyoDisneySeato

itsnextstageofgrowth.Wehaveproactivelypursuedastrategyof

introducing products that will appeal to adults and children alike,

suchas the “TurtleTalk”attraction launched in2009and thenew

Disney character greeting facilities opened since 2010. Hence, by

promoting experience of both theme parks at an early stage in

life, we aim to foster the future fan base for Disney theme parks.

Market research indicates that childhood experiences of visiting

thethemeparkshaveapositivecorrelationwithrepeatvisitslaterin

life or having children. Consequently, from a long-term manage-

ment perspective, encouraging childhood visits to the parks is

extremelyimportant.

The Japanese government has announced that it is targeting

anincreaseinthenumberofoverseasvisitorscomingtoJapanover

the medium- to long-term. We see the government’s policies on

attracting overseas tourists as an opportunity not only for Tokyo

DisneySea—theworld’sonlysea-themedDisneythemepark—but

forTokyoDisneyResortasawhole.Bysteadilyimplementingstrate-

giesthatrespondtothisopportunity,weaimtobringhappinessto

abroaderrangeoftargetsegments.

Expanding earnings through originality at Tokyo DisneySeaMaking a significant contribution as a Tokyo DisneySea original

characterisDuffy.Duffy’srootscanbetracedbacktoaDisneybear

that was sold in the Disney theme parks in the United States.

AlthoughthebearfirstappearedatTokyoDisneySeain2004,Duffy

TheDisneyBearmadeitsdebutasaTokyoDisneySeaoriginalchar-

acterwithanewlyaddedstoryinDecember2005.Duffyisaunique

character in that he did not originate from any movies or videos.

However, this also meant that compared with most other Disney

characters,therewasahighdegreeoffreedominhowDuffycould

bedevelopedandpresented.

The plan was formulated, based on a medium- to long-term

perspective,tonurtureDuffywhileinfusingthecharacterwithtraits

thatareuniquelyidentifiablewithTokyoDisneySea.Aswellassales

ofchangeablecostumesforDuffy,thedebutofShellieMayasDuffy’s

friendinJanuary2010havecontributedtoanincreaseinmerchan-

diserevenues.

NotonlyhavewedevelopedDuffy-relatedmerchandisebutwe

have also cultivated a broader expansion of Duffy’s unique world.

ExamplesincludethelaunchinMarch2010of“MyFriendDuffy,”a

stageshow,andtheopening inJuly2011of the“VillageGreeting

Place,” where guests are greeted by characters. These and other

products help to enhance the diversity of ways guests can enjoy

TokyoDisneySea.

Inthefuture,bydevelopingandnurturingneworiginalcontent,

we aim to contribute to improved earnings over Tokyo Disney

Resortasawhole.

Evolution as a resortTheopeningofTokyoDisneySeawasamajorstepintheevolution

ofTokyoDisneyResort.Byhavingtwothemeparks,TokyoDisney

Resortwastransformedfromasingle-daydestinationtoanareathat

couldbeenjoyedoverastayofseveraldays.Ithasalsobecomepos-

sibletoenjoythethemeparksincombinationwithanarrayofother

facilities, including Ikspiari, Disney Hotels, and the Cirque du Soleil

TheatreTokyo.Whathadpreviouslybeena single “point”—Tokyo

Disneyland—evolvedintoanentire“surface”toexplore.

GuestsvisitingTokyoDisneyResortnotonlybolsterthemepark

attendancebutalsostayattheresort’shotelsandconsumemealsat

its restaurants, thereby contributing to an increase in revenues

acrosstheresortasawhole.

Thereisatrendtowardhighernumbersofguestsfromareasout-

sidethegreaterTokyoregioninanniversaryyears.Theopeningof

TokyoDisneySeahasprovidedOLCwiththeopportunitytoutilize

anniversaryeventstwiceeveryfiveyears.Forexample,inthefiscal

yearendedMarch31,2007wecelebratedtheTokyoDisneySea5th

Anniversary,andtwoyearslater,inthefiscalyearendedMarch31,

2009,wemarkedtheTokyoDisneyResort25thAnniversary. Inthe

fiscalyearendingMarch31,2012,TokyoDisneySeacommemorates

its 10th Anniversary, hence we will hold anniversary events from

September2011.Inthefutureweplantokeeputilizingopportuni-

tiespresentedbyanniversaryyears toexpandourguest fanbase,

particularlyinlocalregionsofJapan.

AtDisneyHotels,wewelcomealargenumberofguestsfromthe

greaterTokyoregion.Theareawithina50-kilometerradiusofTokyo

Disney Resort boasts a high-disposable-income population of

approximately30millionpeople.Thus,weseethisasanextremely

important market. We believe that Tokyo Disney Resort Vacation

Packages,whichhaverecordedrevenuegrowthinrecentyears,are

a highly effective means for creating and expanding earnings

opportunities vis-à-vis such accommodation guests. Vacation

Packagesarehigh-value-addedproductscombininghotelaccom-

modation,themeparkticketsandsuchparkcontentsasFASTPASS

tickets.Guestswhousethesepackageshaveahighlevelofsatisfac-

tionaswellasahighintentionofmakingrepeatvisits.FromOctober

2010,weexpandedthedistributionchannelforthesepackagesto

includetelephonereservations.Inthefuturetoo,byofferingattrac-

tiveproducts,wewillstrivetoincreasethenumberofaccommoda-

tionguestsandearnings.

Further evolution through the 2013 medium-term planInApril2011,thestartingpointofthe2013medium-termplan,we

launched “Fantasmic!” as Tokyo DisneySea’s new nighttime spec-

tacular.ItissetintheMediterraneanHarborandutilizesarangeof

specialeffects,includingwaterandfire.Thethemeofthisnighttime

entertainment is Mickey Mouse’s “world of imagination.” Since

“Fantasmic!”began,many familiesandotherguestshaveenjoyed

theshow.

In2012,weplantoopenanewattraction,“ToyStoryMania!,”an

interactive3DrideattractionbasedontheDisney/Pixar Toy Story film

series.TokyoDisneySeawillcontinueevolvingsothatitbringshap-

pinesstoallitsguests.

TheContinuingEvolutionofTokyoDisneySea—Celebratingthe10thAnniversary


Segment Overview

Note:TheRetailBusinessSegmenthasbeenabolishedasaresultofthetransferofRetailNetworksCo.,Ltd.toTheWaltDisneyCompany(Japan)Ltd.asofMarch31,2010.

¥290.5billion

(Fiscal year ended March 31, 2011)

44.0% Attractions and Shows

35.9% Merchandise

19.0% Food and Beverages

1.1% Others

Segment Revenues

“Mickey’sPhilharMagic”(TokyoDisneyland)

“Disney’s Easter Wonderland”(Tokyo Disneyland)

Percentage of Total Revenues



Segment Highlights

Segment Highlights

Segment Highlights

Segment Revenues & Operating Income

Segment Revenues & Operating Income

Segment Revenues & Operating Income (Loss)

FiscalyearendedMarch31,2011



81.5%

12.4%

6.1%

272.9

26.4

302.4

34.5

287.3

33.2

290.546.2

’08/3 ’09/3 ’10/3 ’11/3Revenues Operating Income

33.2

6.0

45.9

6.2

45.2

8.4

44.0

8.4

’08/3 ’09/3 ’10/3 ’11/3Revenues Operating Income

19.5

(0.7)

24.7

(0.9)

24.1

(0.1)

21.7

(1.2)

’08/3 ’09/3 ’10/3 ’11/3Revenues Operating Income (Loss)

Tokyo Disneyland

Tokyo Disneyland Hotel

Ikspiari

Tokyo DisneySea

Tokyo Disneyland

Disney Ambassador Hotel

Tokyo DisneySea Hotel MiraCosta

Cirque du Soleil Theatre TokyoIkspiari

Disney Resort Line

Tokyo Disneyland Hotel

Theme Park Segment

Hotel Business Segment

Other Business Segment

Despite a fall in theme park atten-

danceduetothemeparkclosures,

revenues and operating income

increased year on year owing to a

growth in revenues per guest and

reductionsinexpenses.

Despiteadecreaseinrevenuesdue

to the suspension of operations,

operatingincomeincreasedasare-

sult of a decrease in depreciation

and amortization expenses and

otherfactors.

Operating income decreased ow-

ingtoanincreaseintherenovation

costofIkspiari,inadditiontoafallin

revenuesasaresultoftheimpactof

thesuspensionofoperations.

(Billionsofyen)

(Billionsofyen)

(Billionsofyen)

The OLC Group at a Glance Review of Consolidated Operations

The main facilities of the Theme Park Segment are Tokyo Disneyland and Tokyo DisneySea.

Tokyo Disneyland opened in April 1983 and Tokyo DisneySea in September 2001. Total annual attendance at the two theme parks exceeds 25 million, for a cumulative total to date of over 500 million.

Tokyo Disneyland and Tokyo DisneySea have an approximately 40%* share of the Japanese amusement and leisure park market.

Revenues of the Theme Park Segment are broadly divided into attractions and shows, merchandise, and food and beverages.

• Attractionsandshowsrevenuesincludeticketreceiptsandparkingreceipts. • Merchandise revenues include sales of merchandise at Bon Voyage and commercial facilities within affiliated

hotels,inadditiontocommercialfacilitieswithinthethemeparks. • Foodandbeveragesrevenuesincludesalesoffoodandbeveragesatcommercialfacilitieswithinthethemeparks. *Source:WhitePaperonLeisure2010(July2010,JapanProductivityCenter)

The Theme Park Segment saw increases in both revenues and operating income due to record-breaking revenues per guest.

SUMMARY OF THE FISCAL YEAR EnDED MARCH 31, 2011

[Revenues] ¥290.5 billion (up 1.1%) [Operating Income] ¥46.2 billion (up 39.0%)ThroughoutthefiscalyearendedMarch31,2011,weheldavarietyofspecialeventsatthetwothemeparks.

“Disney’sEasterWonderland,”thefirstEaster-themedspecialevent,washeldatTokyoDisneylandinspringand,

fromautumn,Halloween-andChristmas-themedspecialeventswererolledoutatboththemeparks.These

eventshelpedustoachieverecordhighsinrevenuesduringthefirstandthirdquartersofthefiscalyear.Also,

onJuly1,2010,“CaptainEO”wasreintroducedatTokyoDisneylandandthenew3Dtheaterattraction“Mickey’s

PhilharMagic”wasopenedonJanuary24,2011.

Theme Park Segment



Feature Review of Consolidated Operations


FinancialSection

“Disney’sEasterWonderland”(TokyoDisneyland)

“Disney’sHalloween”(TokyoDisneySea)

(Yen)

’08/3 ’09/3 ’10/3 ’11/3

4,206

3,377

2,160

4,222

3,370

2,128

4,226

3,096

2,048

4,217

3,629

2,176

Revenues per Guest

9,7199,370 9,743 10,022

Attractions and Shows

Food and Beverages

Merchandise

(%)

’08/3 ’09/3 ’10/3 ’11/3

17.7

53.1

11.1

17.9

52.2

10.7

17.0

51.8

11.3

19.1

52.4

10.1

18.119.219.9 18.4

100

Guests by Age

Over 40

12 to 17 4 to 11

18 to 39

(%)

’08/3 ’09/3 ’10/3 ’11/3

67.5

11.57.5

66.3

11.77.9

67.1

11.47.2

66.4

11.97.6

7.27.26.5 7.23.53.73.6 3.62.83.24.2 3.3

100

Guests by Region

Kanto

Tohoku Others (Japan) Overseas

Chubu/Koshinetsu Kinki

TokyoDisneySea10thAnniversary“BeMagical!”(TokyoDisneySea)

’11/4 5 6 7 8 9 10 11 12 ’12/1 2 3

Tokyo Disneyland

Tokyo DisneySea

Theme Parks Event Calendar (For the �scal year ending March 31, 2012)

Cinderella’s Fairy Tale Hall Opened on April 15, 2011

Disney’s Easter WonderlandFrom April 15, 2011 to June 30, 2011

Tokyo DisneySea 10th Anniversary “Be Magical!”From September 4, 2011 to March 19, 2012

Cool the HeatFrom July 8, 2011 to August 31, 2011

Summer Oasis SplashFrom July 8, 2011 to August 31, 2011

Disney’s HalloweenFrom September 4, 2011 to October 31, 2011

Christmas FantasyFrom November 7, 2011 to December 25, 2011

Christmas Wishes

Fantasmic!Started on April 28, 2011

Mickey & Friends’ Greeting TrailsOpened on April 28, 2011

A Table is WaitingStarted on April 28, 2011

Village Greeting PlaceOpened on July 8, 2011

Jasmine’s Flying CarpetsOpened on July 18, 2011

From November 7, 2011 to December 25, 2011

Drivenbysuchsuccessfulinitiatives,aswellastheongoingtrendofexpansionintheTokyoDisneySeafan

baseplusthefavorableweatherseenthroughoutthefiscalyear,untiltheGreatEastJapanEarthquakestruck

wewereachievingstrongfinancialperformancethatsignificantlyexceededtheresultsofthepreviousfiscal

year. Consequent to the disaster, the two theme parks closed for 20 days, causing total theme park

attendanceforthetwoparkscombinedtodeclineby1.8%,to25.37millionguests.Revenuesperguestwerea

newrecordhighof¥10,022(up2.9%).Thiswaslargelyduetostrongmerchandiserevenuesperguest,which

totaled¥3,629(up7.5%).Further,ticketreceiptsperguestwere¥4,217(up0.3%)andfoodandbeveragesales

perguestwere¥2,176(up0.7%).

Asaresult,revenuesintheThemeParkSegmentwere¥290.5billion(up1.1%).

Operatingincomeincreasedduetoreductionsinthecostofmerchandiseratio,costoffoodandbeverages

ratio,personnelexpenses,fixedexpenses,miscellaneousexpenses,anddepreciationandamortizationexpens-

es,inadditiontoanincreaseinrevenues.Theoperatingmarginimprovedby4.3percentagepoints,to15.9%.

InITIATIvES In THE FISCAL YEAR EnDInG MARCH 31, 2012

WhilebothofourthemeparkswereclosedtemporarilyfollowingtheGreatEastJapanEarthquake,wewere

abletoreopenTokyoDisneylandonApril15,2011andTokyoDisneySeaonApril28,2011.

Inthesummerof2011,wewillcontinuetooperatethetwothemeparksbasedonthesametimeschedule

asinpastyears,whilereducingenergyconsumptionin-linewiththegovernment’spower-savingframework.In

additiontotheimplementationofthoroughenergy-conservationmeasures,weplantoinstalladditionalpri-

vatelyownedgeneratorsbylate-Augustinordertosupplyapartoftheelectricitythatwewouldnormallyre-

ceivefromconventionalsourcesduringpeakhours.

ThroughoutthefiscalyearendingMarch31,2012,asinpastyears,wewillholdavarietyofspecialeventsat

thetwothemeparksandintroduceanumberofnewproducts.InApril2011,thespecialEaster-themedevent,

“Disney’sEasterWonderland,”whichreceivedhighacclaimlastyear,washeldonceagainatTokyoDisneyland.

TokyoDisneySeasawthestartof thenewnighttimespectacular “Fantasmic!”aswellas theopeningof the

charactergreetingfacility“Mickey&Friends’GreetingTrails.”InJuly2011,weopenedthecharactergreeting

facility“VillageGreetingPlace”andthenewattraction“Jasmine’sFlyingCarpets.”Further,insummerwecarry

outsummerwater-themedprogramsatbothofourthemeparks.

Additionally, September4,2011willmark thebeginningof theTokyoDisneySea10thAnniversaryEvent

“BeMagical!”Fillingtheparkwithmagicforits10thanniversary,thiseventwillbringjoytoallTokyoDisneySea

guests.Thiseventwillfeaturethemagicalgreetingshow“BeMagical!,”whichincludesaudienceparticipation,

as well as a number of special merchandise and food items available throughout the park, which will be

enchanted through the use of special decorations. We will hold the “Disney’s Halloween” event at Tokyo

Disneyland,andwewillholdspecialChristmas-themedeventsatbothoftheparksfromNovember.

ReviewofConsolidatedOperations

Implementation of seasonal eventsWecarryoutawidevarietyofspecialeventsatthetwothemeparks

throughouttheyear.Amongthem,ourlineupofseasonaleventshas

strengthened.Wehavebroughtuptheseevents toseasonal fixture

andbolsteredourabilitytoattractrepeatguests.

AChristmas-themedspecialeventhadbeenofferedsincetheyear

TokyoDisneylandopened.Intheearlyyears,theeventwasheldonlyfor

onemonth inDecember.However, since1995 theeventhasstarted

fromNovember.Also,ithasbeenheldatTokyoDisneySeasince2002.

AHalloween-themedspecialeventwasheld for the first timeon

October31,1997.

WebeganholdingtheeventforamonthfromOctober2001,and

thenextendedtheperiod,startingfromSeptember.Furthermore,we

havebegunholdingthisspecialeventatTokyoDisneySeasince2009.

An Easter-themed special event, as a new seasonal event, com-

mencedin2010atTokyoDisneylandandhasbecomeverypopular.


Segment OverviewSegment Overview




FinancialSection

¥21.7billion

39.9% Ikspiari

21.9% Theatrical

15.9% Monorail

10.3% Group Employee Cafeterias

(Fiscal year ended March 31, 2011)

12.0% Others

Segment Revenues

ZEDTM DisneyResortLine

¥44.0billion

Segment Revenues(Fiscal year ended March 31, 2011)

31.2% Tokyo Disneyland Hotel

33.4% Tokyo DisneySea Hotel MiraCosta

27.1% Disney Ambassador Hotel

8.3% Palm & Fountain Terrace Hotel

Tokyo Disneyland Hotel Ikspiari

The main facilities of the Other Business Segment are Ikspiari (opened July 2000), Cirque du Soleil Theatre Tokyo (opened October 2008) and Disney Resort Line (opened July 2001).

Ikspiari is a commercial facility based on the concept of “a town full of stories and entertainment.” It includes approximately 140 shops and restaurants and a 16-screen cinema complex.

Cirque du Soleil Theatre Tokyo, with a 2,170 seat capacity, is the first permanent theatre in Japan for Cirque du Soleil.

Disney Resort Line is a monorail connecting four stations within Tokyo Disney Resort.

Operating income decreased owing to an increase in renovation costs of Ikspiari, in addition to a fall in revenues as a result of the impact of suspending operations.


[Revenues] ¥21.7 billion (down 10.0%) [Operating Loss] ¥1.2 billion (increased ¥1.1 billion)Celebratingits10thanniversaryinJuly2010,Ikspiariheldvariouseventsandfairsthroughouttheyearunderthe

theme“MoreFun!ForeverFun!”inordertothankitsguestsandexpressappreciationfortheircontinuedsup-

portoverthepast10years.Atthesametime,Ikspiarirenovatedstoreswhilewelcomingnewtenants.

AtCirque du SoleilTheatreTokyo,the“ZED+Park”Plan,whichcombinesaticketfor“ZED™”andanadmission

tickettoTokyoDisneylandorTokyoDisneySea,wassold.

However,overallrevenuesdeclinedto¥21.7billion(down10.0%)asaresultofthesuspensionofoperations

duetotheimpactoftheGreatEastJapanEarthquake.Operatinglossincreasedowingtoariseinthefacility

renovationcostsofIkspiari,aswellasadeclineinrevenues.


Ikspiariwillholdvariouseventsandfairsthroughouttheyear.Atthesametime, Ikspiariwillrenovatestores

whilewelcomingnewtenants.

We have reached a conclusion to indefinitely close the Cirque du Soleil Theatre Tokyo. Performances of

“ZED™”willendonDecember31,2011.


The facilities included in the Hotel Business Segment are the three Disney Hotels of Tokyo Disneyland Hotel (opened July 2008), Tokyo DisneySea Hotel MiraCosta (opened September 2001) and Disney Ambassador Hotel (opened July 2000), as well as Palm & Fountain Terrace Hotel (opened February 2005), which is located in the Shin-Urayasu region.

Despite a decrease in revenues due to the suspension of operations, operating income increased as a result of a decrease in depreciation and amortization expenses, among other factors.


[Revenues] ¥44.0 billion (down 2.7%) [Operating Income] ¥8.4 billion (up 0.2%)Duringthefiscalyearunderreview,weofferedthepopular“TokyoDisneyResortMulti-DayPassportSpecial”at

threeDisneyHotelsasastandardpracticeforallDisneyHotelguests,continuingfromthepreviousfiscalyear.

Wealsocontinuedimplementingthe“TokyoDisneyland‘Happy15’Entry”program,underwhichhotelguests

areallowedtoenterTokyoDisneyland15minutesearlier.Therobustthemeparkattendance,amongother

factors,resultedintheoccupancyratesofeachhotelrisingabovethoseofthepreviousfiscalyear.Upuntil

March 11, 2011, the occupancy rates were approximately 90% for Tokyo Disneyland Hotel, in the mid-90%

range for Tokyo DisneySea Hotel MiraCosta, approximately 80% for Disney Ambassador Hotel and approxi-

mately80%forthePalm&FountainTerraceHotel.

However,overallrevenuesinthissegmentwere¥44.0billion

(down2.7%),asaresultofsuspendingoperationsowingtothe

impactoftheGreatEastJapanEarthquake.Despiteadecrease

inrevenues,operatingincomeincreasedduetofactorssuchas

reductions indepreciationandamortizationexpensesassoci-

atedwiththeTokyoDisneylandHotelamongotherfactors.


AllofourhotelswereclosedtemporarilyaftertheGreatEastJapanEarthquake.Later,wewereabletosuccess-

fullyreopenallthreeDisneyHotelswiththeDisneyAmbassadorHotelandtheTokyoDisneylandHotelbeing

reopenedonApril15,2011,andtheTokyoDisneySeaHotelMiraCostabeingreopenedonApril28,2011.

Wewillcontinuetoimplementthe“TokyoDisneyland‘Happy15’Entry”program,whichwillbeavailablefor

alimitedtimeonlyasastandardpracticeforallDisneyHotelguests.

Additionally,inSeptember2011,theTokyoDisneySeaHotelMiraCostawillhaveits10thanniversary,andwe

willbeholdinganniversaryeventstocelebrate.Roomkeysatthishotelwillfeatureanewlimitededition10th

anniversarydesign,andweareplanningafullprogramoffunevents.

Occupancy Rate & Average Revenues per Guest Room FiscalyearendedMarch31,2011

Numberofguestrooms Occupancyrate Averagerevenues

perguestroom*

TokyoDisneylandHotel 705 about90% about¥50,000

TokyoDisneySeaHotelMiraCosta 502 about95% about¥50,000

DisneyAmbassadorHotel 504 about80% about¥45,000

Palm&FountainTerraceHotel 702 about80% about¥20,000

Note:OccupancyrateswerecalculatedexcludingtheperiodfromMarch12toMarch31inwhichthethemeparkswerenotinoperation.

*Averagerevenuesperguestroomincludesservicecharges.


ReviewofConsolidatedOperations

Tokyo Disney Resort vacation Packages—Initiatives to Bolster SalesTokyoDisneyResortisofferingTokyoDisneyResortVacationPackages

in order to further raise the level of satisfaction of guests staying

overnight.Thishigh-value-addedpackageispackedfullofthejoyof

TokyoDisneyResort,whichincludeshotelaccommodation,andspe-

cialcontentstohelpguestsenjoyourparks,suchasFASTPASStickets

and reserved tickets to see entertainment shows. Although previ-

ouslyonlyavailablethroughourWebsite,fromOctober2010guests

are now able to purchase these magical package, by telephone

throughtheTokyoDisneyResortReservationsCenter.Additionally,

we have redesigned our Web site to increase the level of conve-

nience.Goingforward,wewillcontinueimplementinginitiativesto

bolster our sales with the hopes of inviting even more guests to

experienceTokyoDisneyResortVacationPackages.





FinancialSection

Sand Compaction Pile (SCP) Method

10~15m

5

12 2

3

4

After improvement

Handdryerturnedoff Reductionoflightingoutside

Charitywristband

Response to the Great East Japan Earthquake

The buildings and facilities at Tokyo Disney Resort were spared serious damage thanks to the preventative measures against liquefaction we adopted at the time of construction and subsequent seismic strengthening work, as well as the implementation of appropriate routine maintenance inspections. The earthquake did not lead to any casualties or injuries among our guests or employees. Going forward, we will redouble our efforts to establish measures to ensure the safety of facilities within the Tokyo Disney Resort should another such disaster occur. At the same time, we will strive to enhance our ability to provide high-quality hospitality even in emergency situations.

Ground improvementDuetopreventativemeasuresagainstliquefactionthatwerealready

inplaceatthebuildingsandfacilitiesatTokyoDisneyResort,noliq-

uefactionoccurredwithin the themeparks,with theexceptionof

one portion of the flat parking area. Liquefaction was prevented

becauseatthetimeofconstructionofTokyoDisneylandandTokyo

DisneySea,weappliedapre-treatmentofcompression loadingto

stabilize the ground, and carried out ground fortification of the

entirearea toadepthof10 to15meters. Thiswasaccomplished

using the Sand Compaction Pile (SCP) method, which drives

columns of compacted sand into the ground at regular intervals,

thereby increasing the density of the ground, which prevented

liquefactionfromoccurringattheparks.

High level of earthquake-resistanceAllfacilitieswithinTokyoDisneyResorthavebeenbuilttoearthquake-

resistance standards exceeding the requirements specified under

Japaneselaw,providingahighlevelofsafety.Appropriatemeasures

havebeenimplementedtopreventfallingdebris,includingtheuse

ofanti-shatterfilmonglassinallbuildingsandfacilities,andlighting

equipmentandornamentsarefittedwithsafetywires.

Followingtheearthquake,wecarriedoutafullsafetycheckofall

facilitiessothatbylate-March2011thethemeparkswereinastate

readyforreopening.

Crisis management systemAnEarthquakeResponseCoordinationTaskForcewassetupimmedi-

atelyfollowingtheearthquake,headedbythepresident,tomanagethe

crisis. The task force promptly undertook various measures in accor-

dancewiththeTokyoDisneyResortEarthquakeResponsePlancreated

byOLC.Undertheplan,wehavemadeapointofimplementingemer-

gencydrillsandtrainingforouremployeesateachTokyoDisneyResort

facilityandmaintainingasubstantialstoreof foodandbeveragesfor

emergencypurposes.Thishelpedusdealwiththecrisiseffectively.

In response to the recent disaster, OLC will renew its efforts to

identify potential risks that were previously unforeseeable, and

establishpreventiveandresponsivemeasureswhileaimingtoachieve

ahigherlevelofdisasterprotectionandsafetyforourfacilities.We

willalsocontinuetoprovideouremployeeswithtrainingandguid-

ance,aswehaveinthepast,toempowerthemtoofferhigh-quality

hospitalityevenintheeventofanemergency.

Response inside the theme parks immediately following the earthquakeImmediately following the earthquake, we evacuated all guests

fromthebuildingsandfacilitiesandsuspendedoperationofallat-

tractionsinsidethethemeparks.Afterconductingsafetychecks,we

guidedguestsintothebuildingsandfacilities.

Guestswhowereunabletoreturnhomeremainedinsidethetheme

parks,andwehandedoutbeverages,snacks,soup,breadandother

itemsnormally forsale, freeofcharge.Wealsoprovidedemergency

mealsthathadbeenstockpiledbyOLC.Furthermore,wegaveouta

varietyofitemsthatcouldbeusedasprotectionagainsttherainand

thecold,includingplasticsheets,largeplasticbags,packagingmateri-

alsformerchandise,portableheatpacksaswellascardboardboxes,

rainapparelandumbrellasforwindandrainprotection.Onthefollow-

ingday,afterconfirmingthatpublictransportserviceshadresumed

operation,weprovidedshuttlestotheneareststationtomakesure

guestscouldleavesafety.

Temporary suspension of operations at principal facilitiesInlightofexternalconditionscausedbytheearthquake,including

electricityshortages,wedecidedtotemporarilysuspendoperations

offacilitieswithinTokyoDisneyResort.Thelengthoftemporaryclo-

sureforeachfacilitywasasfollows.

Businesssegmentsandprincipalfacilities Lengthoftemporaryclosure

Theme Park Segment

TokyoDisneyland FromMarch12,2011toApril14,2011

TokyoDisneySea FromMarch12,2011toApril27,2011


DisneyAmbassadorHotel FromMarch12,2011toApril14,2011

TokyoDisneySeaHotelMiraCosta FromMarch12,2011toApril27,2011

TokyoDisneylandHotel FromMarch12,2011toApril14,2011


Ikspiari FromMarch12,2011toMarch27,2011

Cirque du SoleilTheatreTokyo FromMarch12,2011toApril22,2011

DisneyResortLine FromMarch12,2011toApril1,2011

Toprepare for suchcircumstances,OLCsetsasidecash reserves,

whichareearmarkedtoserveasworkingcapitalintheeventofatem-

porarydeclineinrevenues.Inaddition,wehaveenteredintocommit-

mentlineagreementswithourbanks,underwhichOLChasaccessto

financingofup to¥30.0billion.Thanks to thesepreparations,even

duringtheperiodoftemporaryclosureoftheparks,OLCwasnotaf-

fectedbycash flowproblemsandwassubsequentlyable to resume

businessoperationsatitsfacilities,includingthethemeparksandhotels.

Reopening of the theme parks under stringent power-saving measuresOLCisimplementingthoroughpower-savingeffortstoensurethe

ongoingoperationsofTokyoDisneyResortcomplyingwithpolicies

announced by the Japanese government. These policies are a re-

sponsetotheelectricitysupplyshortagesforecastoverthesummer.

Specifically, indoor and outdoor lighting in the parks has been

reducedtoanextent thatdoesnotcompromisethesafetyofour

guests.Inaddition,theoperationofwaterfountainshavebeenre-

duced,andelectrichanddryersintherestroomshavebeenturned

off. Further, energy conservation measures are also being imple-

mentedoutsidetheparks,includingreductionoflightinginoffices,

lobbiesandcorridors;adjustingthetemperaturesettingsofaircon-

ditioningunits;suspendingtheuseofelectrichanddryersinthere-

strooms;andlimitingtheuseofelevators.

Additional privately owned generatorsOLChasinstalledon-siteelectricitygenerationequipmentbasedon

solarandnaturalgas technology (cogenerationsystem).Theelec-

tricitygeneratedonsiteisusedinthethemeparksandotherplaces.

Inaddition,wehaveinvestedapproximately¥3.0billioninnewon-

site generators. This equipment, which we are currently installing,

will boast an output capacity of around 15,000 kilowatts. We

anticipatethatthisequipmentwillbereadytobeginoperationby

late-August2011.Wearealsoplanningtoincreaseouruseofsolar

photovoltaicpanels.

Programs to support earthquake relief and recoveryTheOLCGrouphasimplementedawiderangeofprogramstosup-

portreliefeffortsforpeopleaffectedbytheGreatEastJapanEarth-

quakeandrecoveryofdisaster-afflictedregions.

OLCmadereliefcontributionstotheJapaneseRedCrossSociety,

ChibaPrefectureandUrayasuCityimmediatelyfollowingtheearth-

quake.Foreachguestvisiting the themeparksupuntilMay14,a

¥300contributionwasmadefromthethemeparkrevenuestothe

reliefandrecoveryeffortforaffectedareas.AtDisneyHotels,wedo-

nated ¥1,000 per room per night to earthquake relief from guest

roomcharges.Inaddition,wesoldcharitywristbandstogueststhat

carried the inscription “WE ARE ONE” as a message of support to

people in earthquake-affected regions. The entire amount raised

throughthesecharitywristbandsaleswasdonatedtotheJapanese

RedCrossSocietyforearthquakereliefandrecovery.

Asthecombinedresultoftheprogramsoutlinedabovetosup-

porttheearthquakereliefandrecovery,theOLCGrouphascontrib-

utedatotalofapproximately¥620million*forreliefsupport.

*AsofMay19,2011

1 Vibratethepipetoachievegroundpenetration.

2 Attheprescribeddepth,supplysandintothepipe.Removepipefromthegroundwhileejectingsandfromthepipe.

3 Vibratethepipeandforceitbackintotheground,compactingtheejectedsanddownandcreatingasandcolumnthatisthickerthantheoriginaldiameterofthepipe.

4 Repeatsteps 2 and 3 toformacolumnofcompactedsandtotheprescribeddepth.

5 Carryoutthismethodatpredeterminedintervalsoverthesite.



Compliance Committee

Environment Committee

Risk Management Committee

Internal Auditing Department[Audits business execution of each department]

Independent Accounting AuditorsBoard of Corporate Auditors4 Auditors including 3 External Auditors

General Meeting of Stockholders

Board of Directors12 Directors including 1 External Director

Business Departments /Administrative Departments

Corporate O�cers (17)[Execution of business]

Representative Directors

Executive Committee / Theme Park Committee

[Decide and report on key issues other than matters decided

by the Board of Directors]

Appoint / Dismiss

Appoint / DismissSupervise

Appoint / DismissSupervise

Appoint / Dismiss Appoint / DismissAudit

Audit

Instruct

Instruct

Deliberation on issues

Transfer of authority

Instruct / Report

Internal audits

Consult / Recomm

end

Report

Cooperate

Cooperate

Internal audits

Cooperate

Corporate Governance Structure

Business Mission Corporate Governance

Basic Systems

Business Execution

In response to changes in the operating environment, OLC has introduced a Corporate Officer System in order

to strengthen overall control of Group management and enhance corporate governance. The purpose of the

Corporate Officer System is to more clearly define supervisory and executive responsibilities in each of the OLC

Group’s businesses, strengthen the management supervisory functions of directors by shifting the focus of

their roles to supervision and accelerate decision making by promoting delegation of authority to corporate

officers.

Appointment of directors

As described in the Company’s articles of incorporation, the appointment of directors must be approved by a

majority vote at a General Meeting of Stockholders at which stockholders whose voting rights exceed one-third

of the total voting rights are present. Furthermore, the appointment of directors may not be approved by cu-

mulative voting.

We will continue working to strengthen corporate governance, based on our understanding of the importance of raising

management transparency and fairness, achieving sustainable growth and development and fulfilling our social responsibili-

ties. Specifically, we aim to strengthen corporate governance by reinforcing internal controls, promoting reinforcement of

management oversight functions and increasing management transparency.

By conducting honest management that emphasizes corporate ethics through these measures, we aim to increase our

corporate value.

We aim to constantly maintain a perspective at the forefront of each era as we strive for emotion as a company. As we move ever closer to our ideal, we have a firm conviction in its realization.

Our greatest asset is our imagination. It may be said that imagination is the Earth’s only inexhaustible resource. Utilizing this asset, we pursue our business of bringing abundant humanity and happiness.

In the lives of people today, emotions that we tend to cast aside, dreams that we harbor deep in our hearts, moving experiences that uplift our souls, joy that makes life worth living, a true sense of peace that provides us with rejuvenation…

It is the mission of Oriental Land to bring all of these to each and every person.

Acting in accordance with this business mission, we have strengthened corporate governance

aiming to increase our corporate value and fulfilled our social responsibilities.

Our mission is to create happiness and contentment by offering wonderful dreams and moving

experiences created with original, imaginative ideas.

34 Oriental Land Annual Report 2011



Corporate Governance CSR

Financial Section


Board of Directors

The Board of Directors consists of 12 directors, including one external director. Board of Directors’ meetings are

held once a month in principle. All corporate auditors attend the meetings, whether or not they hold standing

positions.

All directors and corporate auditors, who have different duties, monitor management from their own unique

perspectives. Additionally, directors conduct extensive deliberation in accordance with the Company’s man-

agement policies to ensure that the Company’s operations are not in violation of laws, regulations or the arti-

cles of incorporation in any manner.

Executive Committee

The Executive Committee makes decisions and files reports regarding important matters, excluding items to be

resolved by the Board of Directors, pertaining to the management of the Company.

Theme Park Committee

The Theme Park Committee makes decisions and files reports relating to the operation and business execution

of the theme park business.

Corporate Auditors

In the Corporate Auditor System adopted by the Company, the two standing corporate auditors attend meet-

ings of the Board of Directors, the Executive Committee and the Theme Park Committee, as well as other meet-

ings and committees the corporate auditors deem important, where they state their opinions. Three of the four

corporate auditors are external auditors, a structure that actively incorporates opinions from an objective and

independent standpoint to enable effective audits. Furthermore, to assist the corporate auditors in their duties,

a specialized staff has been assembled within the Corporate Auditor Office, which is a body that is independent

from the executive arm of the Company.

Board of Corporate Auditors

In accordance with auditing policy and its basic audit plan, corporate auditors carry out activities including lis-

tening to reports from directors, officers and employees and viewing important documents, while working to

ensure the effectiveness of its audits by discussing the status of deliberation at important meetings, audit re-

sults and other matters among the corporate auditors.

As a means of establishing and maintaining good corporate governance, the Company has clarified the

corporate auditors’ role and work responsibilities by setting the Regulations for the Board of Corporate Auditors

and the Audit Standards for Corporate Auditors.

Internal Control

The Company has enhanced internal control with the establishment of an Internal Auditing Department to

conduct internal audits on compliance with laws and internal rules as well as efficient business execution. This

department is separate from the executive arm of the Company to ensure that it can conduct unbiased audits.

Internal audits are conducted with the goal of improving managerial efficiency and profitability. Furthermore,

the Internal Auditing Department objectively investigates and evaluates whether or not business operations

are in compliance with management policies and plans as well as internal regulations, and also that they are

conducted in an efficient manner. The department offers advice as it deems necessary.

Independent Accounting Auditors

To ensure accurate accounting, we receive audits by KPMG AZSA LLC.

Our designated unlimited liability and engagement partners from KPMG AZSA LLC are certified public ac-

countants Eiji Mizutani and Hiroaki Komatsu. Additionally, a total of 11 accountants and assistants engage in

other accounting auditing activities.

Corporate Governance

Practice of the OLC-WAY

Even with our thorough governance systems in place, ultimately the

awareness of the people who use these systems will decide if they will

function or not. In recognition of this fact, the OLC Group is working to

spread and provide education about the OLC-WAY, a set of shared prom-

ises among all officers and employees. Having all officers and employees

fulfill the promises of “Honesty,” “Proactive Execution” and “Healthy Con-

flict” contained in the OLC-WAY will foster a highly compliance-aware

corporate culture and corporate climate.

Reinforcing the Internal Control System

Compliance

We have established the OLC Group Code of Compliance, which outlines the rules for officers’ and employees’

compliance with ethics and laws, and the Business Guideline, which outlines specific standards for the practice

of compliance.

Strengthening Operations to Ensure Compliance

We set up the Compliance Committee, which is chaired by a designee of the president, to ensure the legality

of the Company’s management and to promote a spirit of compliance. If the committee discovers misconduct

by an officer or employee or a serious violation of law or the Company’s articles of incorporation, it conducts

the necessary investigations and reports its findings to management or to the Executive Committee and the

Board of Corporate Auditors. Moreover, we have set up an Employee Consultation Office as a channel for inter-

nal reporting within the OLC Group.

Furthermore, we institute education programs related to compliance once a year in principle. These

programs are custom-tailored for various different ranks of employees. All employees participate in these pro-

grams, which serve as an opportunity for the sharing of information and awareness related to compliance

issues. We also implement strict monitoring to ensure the effectiveness of measures related to compliance.

From the fiscal year ended March 31, 2009, the OLC Group is developing more practical education for regular

employees with the introduction of original e-learning that was produced by the OLC Group’s compliance

managers and group discussions that use case studies.

Risk Management System

In order to entrench the risk management system, the OLC Group Risk Management Guidelines, which outline

basic rules of conduct, have been established. In addition, the Risk Management Committee, chaired by the

president, identifies, analyzes, evaluates and prioritizes risks that the OLC Group faces, and manages the overall

risk management cycle to formulate individual preventative and response measures, evaluate these measures

and constantly pursue their improvement. Furthermore, we are bolstering our responsiveness toward unfore-

seen risks through the ECC (Emergency Control Center), a response unit consisting of the president and other

related personnel that works to manage response systems in the event that risks materialize.

1. Honesty Focus not only on your own good and the good of the organization, but also on the good of everyone else.

2. Proactive Execution There is no need for excuses or criticism. Act without fear of mistakes.

3. Healthy Conflict The precedent is not necessarily the best. Discuss matters starting from zero and heading toward the goal.

OLC-WAY

OLC Group Code of Compliance

The OLC Group’s officers and employees have a strong ethical commitment to

compliance with external laws and regulations and internal rules.

1. Prioritize safety above all else.

2. Respect human rights and prevent discrimination and harassment.

3. Engage in fair and transparent transactions.

4. Strictly control confidential information including personal information.

5. Take a firm stance toward anti-social organizations.

Business Guideline

Examples of Group Discussions that Use Case Studies

Protection of Personal Information

Prevention of Harassment

Prevention of Insider Trading

Appropriate Labor Control

Protection of Intellectual Property Rights

Maintaining Appropriate Relationship with Business Partners

Number of Committee in the Fiscal Year Ended March 31, 2011

Board of Directors 12

Executive Committee 20

Theme Park Committee 17

Specific Risks for which ECCs are Held

Earthquake, fire, typhoon, snow, oxidase smog, lightning, power outages, accidents, food poisoning, infectious diseases, terrorism, unscheduled park closure, etc.





Financial Section



Information Security Management System

The OLC Group’s fundamental policies regarding information security are outlined in the OLC Group Funda-

mental Information Security Policy, while specific rules of conduct are defined in the OLC Group Information

Security Policy. Acting in accordance with the OLC Group Information Security Policy, we are enhancing our

information security management systems by defining regulations regarding the handling of information,

documents and information security systems. Additionally, we have been working to improve the level of infor-

mation security management through the creation of an Information Security Management Subcommittee in

the Risk Management Committee. These two organizations oversee the management of information.

Reinforcing Decision Making, Authority and Responsibilities

We have defined the administrative duties of each department and the Company’s ranking system in the

Organizational Rules, and the authority of each position and the chain of command in the Rules of Administra-

tive Authority, in order to ensure directors’ efficient execution of duties.

Group Management System

By principle, corporate governance systems of the Company also apply to its subsidiaries. Representatives from

subsidiaries are present among the members of the various committees we have developed to strengthen our

corporate governance systems and subsidiaries are expected to adhere to all Company regulations. Addition-

ally, we have established Management Regulations for Associated Companies to serve as a guideline for the

appropriate management of subsidiaries.

Reinforcing Management Oversight Functions

Utilizing External Directors and External Auditors

External directors receive reports on the results of accounting and other audits of the Board of Directors and

give advice or make suggestions as necessary to ensure the validity and appropriateness of the decisions made

by the Board. The presence of outside perspectives helps guarantee the justness of management. Also, the

external directors offer prudent advice based on their wealth of experience and wide-ranging insights, further

enhancing management’s ability to make appropriate decisions.

The external auditors receive reports on the results of the independent accounting auditors’ reviews and

audits of the Company’s financial statements for the first through third quarters. They also exchange opinions

regarding the Company’s operations throughout the fiscal year while remaining well versed on a variety of

Company-related information. The external auditors also help bolster cooperation within the Company’s audit-

ing systems by adjusting auditing plans together with the Internal Auditing Department and requesting a re-

port from the Internal Auditing Department each time it conducts an audit.

Reporting to Corporate Auditors

Directors and corporate officers of the Company quickly report risks that may greatly damage the Company

and occurrences that may significantly affect management to corporate auditors. In urgent cases, employees

may report such occurrences directly to the corporate auditors. We promote the timely reporting of necessary

and pertinent information for audits with the formulation of the Policy for Reporting to Auditors, which stipu-

lates what matters officers and employees must report to the corporate auditors, as well as the timing and

method of reporting.

Additionally, should the corporate auditors discover that a director is acting in violation of laws, regulations

or the articles of incorporation they will report this fact to the Board of Directors.

Ensuring the Reliability of Financial Reports

To ensure the reliability of financial reports we have established the Internal Control Committee, which pro-

motes all areas of our internal control system for financial reporting as set forth in the Financial Instruments and

Exchange Law. Additionally, we have prepared systems in order to allow for mutual cooperation between de-

partments responsible for constructing and evaluating the OLC Group’s internal control systems.

We have judged that our internal controls for consolidated financial reporting were effective as of March 31,

2011, and submitted an internal control report on the results of the evaluation. The contents are being audited

by an external auditor. The OLC Group will continue working to reinforce internal controls through ongoing

evaluations of the system’s condition and application.

Increasing Management Transparency

Compensation Paid to Directors and Corporate Auditors and Audit Compensation

In the fiscal year ended March 31, 2011, compensation paid to directors and corporate auditors and compensa-

tion paid to independent auditors (compensation for services prescribed in Article 2, Paragraph 1 of the Certi-

fied Public Accountant Law of Japan and compensation for other services) was as follows.

Compensation Paid to Directors and Corporate Auditors (Fiscal year ended March 31, 2011) (Millions of yen)

Recipients Amount

Compensation paid to directors 12 434

[Compensation paid to external directors included in above] (1) (6)

Compensation paid to corporate auditors 4 67

[Compensation paid to external corporate auditors included in above] (3) (40)

Total 16 502

Notes: 1. Employee wages are not paid to directors who work concurrently as employees of the Company. 2. The Company has abolished bonuses and such bonuses are not included in compensation paid to directors.

Audit Compensation (Fiscal year ended March 31, 2011) (Millions of yen)

Amount

Compensation based on audit certification 85

Other compensation 1

Total 86

Note: The Company’s auditing contract with the independent auditors does not clearly differentiate compensation for auditing as based on the Company Law or the Financial Instruments and Exchange Law. Because the amounts cannot be practically differentiated, compensation, etc., for the period is listed in the total.

Policy for Determining Compensation Paid to Directors and Corporate Auditors

Directors are compensated in the form of set monthly payments only. The amount to be paid is determined in

accordance with policies accepted by the Board of Directors and must not exceed a limit decided at the

General Meeting of Stockholders. This amount is decided based on the position, roles and responsibilities of

each director as well as in consideration of how well they met management and individual goals and how

much they contributed to the management of the Company.

Corporate auditors are compensated in the form of set monthly payments only. The amount to be paid is

determined through negotiation with the corporate auditors and must not exceed a limit decided at

the General Meeting of Stockholders.

There is no set policy for determining the compensation of independent accounting auditors. When

deciding this compensation, the Company takes into account such factors as the number of days used to

conduct audits.





Financial Section


Investor Relations Group


Policy Regarding Control of the Company (Outline)

The OLC Group’s management policy is to raise corporate value by continuing to be a company that is

widely loved and familiar, deepening the trust and understanding of all its stakeholders and maximizing

the resulting cash flow.

This management policy is aimed at continued long-term growth and is not meant for pursuing short-term

profits. The Company will not categorically reject the reform or vitalization of management through the

transfer of rights to control the Company, nor obstruct an acquisition with the potential to further enhance

corporate value or the common benefit of stockholders. The Company currently has no specific predeter-

mined anti-hostile takeover measures. However, the Company believes it is inappropriate for an individual or

financial entity who may work to the detriment of the Company’s corporate value (including individuals or

financial entities that attempt to manage without regard to the Company’s management policies) to control

decision making regarding the Company’s financial or operational policy. In the event such an individual or fi-

nancial entity should appear, the Board of Directors will consider appropriate measures with outside experts

and implement countermeasures in response to conditions.

Investor Relations (IR) Activities of OLC

Top management, corporate officers and general managers are supported by a specialized IR staff consisting of

six members. This staff constantly endeavors to improve the transparency and speed of information disclosure.

We aim to disclose information in an easy-to-understand manner through such means as transmitting on-

demand video presentations of financial results and voice files of quarterly financial teleconferences, as well as

by providing materials in Japanese and English that are geared toward investors who are unfamiliar with OLC.

Conducting Active Information and Disclosure Transmitting Feedback throughout the Company

OLC values opportunities for management to communicate directly with stockholders. The Company holds

discussion forums with its stockholders and investors, participates in conferences throughout Japan and

overseas that are organized by securities companies and conducts Company explanations for private investors

and securities companies.

We not only make reports to management, we also hold internal explanatory meetings for individual

departments that use our financial results meeting materials over 50 times a year in order to communicate

opinions of stockholders and investors to employees in detail. In addition, the several thousands of opinions,

suggestions and evaluations received from our approximately 120,000 individual stockholders through

questionnaires were sorted by content for regular feedback for appropriate managers and departments so we

could work to improve our management and business activities.

External Evaluations of the OLC Group’s IR Activities

OLC’s IR activities, characterized by the active disclosure of information, have been highly evaluated by

external organizations, and have thus received a number of awards. In the fiscal year ended March 31,

2011, we were awarded the FY2010 Best IR Award presented by the Japan Investor Relations Association

(JIRA) and the 2010 Award for Superior Corporate Disclosure, which is presented by the Tokyo Stock

Exchange. Additionally, OLC’s annual report received the Excellence Awards at the Annual Report Awards

2010 hosted by Nikkei Inc. due to its superiority as an IR tool.

Appraisals of the OLC Group’s IR Activities ( In the fiscal year ended March 2011)

FY2010 Best IR Award

2010 Award for Superior Corporate Disclosure

NIKKEI Annual Report Awards 2010 (Excellence Awards)

Interview with an External Corporate Auditor

Akiyasu Nakano Corporate Auditor (External)

Attorney at Law

Q. What have you found to be important throughout your

three years of experience as an external corporate auditor

for OLC?

My role is to offer appropriate advice to OLC with regards to

its corporate management. In doing this, I take an objective

perspective from outside of the Company, focusing on the areas

that are often overlooked by those working within the Company.

This basic stance has not changed throughout my three years at

this post.

In particular, as a lawyer, I can view the Company’s management

from a very specialized legal perspective, allowing me to utilize my

legal expertise and insight in offering advice to and monitoring

management. Additionally, my experience as an external auditor at

other companies during these three years has served to supple-

ment my knowledge of the daily operations of companies. There-

fore, I am able to fulfill my duty as a corporate auditor by offering

opinions based on a wide range of viewpoints.

Q. How would you evaluate the effectiveness of OLC’s

corporate governance systems?

In order to perform effective audits, it is first necessary for me to

be provided with sufficient information regarding the Company’s

management. OLC provides all corporate auditors with the infor-

mation necessary for making management and other decisions.

This helps facilitate the rigorous exchange of opinions and discus-

sion conducted by the Board of Corporate Auditors. Further,

based on this information, the corporate auditors and directors

engage in open discussions at meetings of the Board of Directors

and other such forums to determine the appropriateness of OLC’s

business and management policies. As important decisions are

made following such exchanges, I believe that the decision-

making process at OLC is highly effective.

Moreover, communicating the decisions made by the Company’s

management and the reasoning behind these decisions to all em-

ployees is important in ensuring the effectiveness of corporate

governance systems. This is not an easy task for a company as large

as OLC. For this reason, I have always made sure to remind OLC’s

management of the importance of strengthening its systems

for communicating information throughout the Company. From

this perspective, I can say that these systems are functioning

effectively, as represented by the ability of OLC’s employees to

respond appropriately to the Great East Japan Earthquake.

OLC has developed an emergency response manual, and

employees were able to react to this disaster appropriately in ac-

cordance with this manual. This manual was primarily created by

OLC’s employees, and it truly reflects this in its nature. I believe it is

because this manual was created by OLC’s employees that all

employees were able to gain such a strong understanding of its

contents. However, no matter how superior a manual is, it will

mean nothing at the actual site of a disaster if nobody knows

about it. For this reason, OLC periodically holds education and

training seminars relating to this manual. OLC’s ability to weather

this disaster without any major accidents occurring and without a

single employee or guest sustaining injury was the result of the

fast action of its employees attributable to continuous training, as

well as to their acting in accordance with OLC’s great hope to

“bringing the highest degree of happiness to our guests.” In other

words, this was due the fact that the actions of employees ex-

ceeded those described in the manual. This hope was effectively

communicated to all employees, empowering them to act on

their own accord, even in a moment of crisis.

Q. What must OLC do in the future to achieve sustainable

growth?

It is my belief that companies grow stronger by transmitting infor-

mation. This does not just refer to the good news. I think it is

important that companies also actively transmit the bad news to

outside sources. It goes without saying that such bad news will be

met with a variety of responses from outside of the Company.

However, I believe that openly facing these responses and then

strengthening and improving criticized areas through repeated

discussion helps a company grow. OLC is currently conducting

such proactive information disclosure. Nevertheless, it is my opin-

ion that OLC has the potential to achieve even greater levels of

sustainable growth by redoubling its efforts to quickly and accu-

rately disclose such information in its own unique way.





Financial Section


Cast members positioned along a parade route

Specialist disaster prevention staff are on duty to monitor the parks 24 hours a day

Regular implementation of compre-hensive emergency drills for the safety of guests

SCSE

S afety

E fficiency

C ourtesy

S how

Scale models are used to convey the features of attractions and characters to visually impaired guests

Tokyo Disney Resort Guest Relations Center

We understand that safety and quality control initiatives are of the utmost importance in ensuring that all

guests are able to enjoy our theme parks with peace of mind. Therefore, the OLC Group places safety as the

highest priority in the operation of its theme parks.

SCSE Conduct Guidelines

Disney theme parks are operated based on the SCSE (Safety,

Courtesy, Show and Efficiency) conduct guidelines. The four

quality standards that guide the operational decisions and be-

havior of all of our cast members are designed to ensure that we

provide the highest levels of service to all of our guests. The or-

der in which the letters are presented also represents the order

of importance.

Bolstering Theme Park Safety

We practice thorough safety management and have developed standards and guidelines to ensure the safety

of attractions, shows and parades. All attractions have been designed with safety as their highest priority. Also,

we regularly inspect all attractions to confirm and manage their safety. In addition to the legal requirements,

we also conduct daily and other regular inspections based on our internal Maintenance Standard, which is

significantly stricter than the legal requirements. Through these efforts, we are working to bolster the safety of

our theme parks.

For shopping and dining in the theme parks, having established the Basic Policy for Merchandise Safety and

Quality and the OLC Group Food Safety Policy, we strive to ensure that we provide products that are both safe

and high quality through the implementation of thorough product development and food safety manage-

ment measures in cooperation with partner manufacturing plants and suppliers.

Security and Disaster Response Systems

The emergency response operations team monitors Tokyo Disney Resort 24 hours a day, 365 days a year, to

ensure that fires and other abnormalities have not occurred. The team inspects and maintains firefighting

equipment and is responsible for all fire prevention operations within the theme parks. They also oversee

operation of the Central Disaster Control Monitoring Center, provide guidance and supervision in fire preven-

tion activities and are responsible for theme park security.

In the event of a fire, the Central Disaster Control Monitoring Center will request immediate dispatching of

firefighting units via its direct hotline to the Urayasu City Fire Department, while our own firefighting team will

take initial measures to tackle any fire. Employees participate in regular education and training programs to

ensure their ability to provide evacuation guidance and extinguish fires to maintain guest safety.

Emergency Response Methods

We have developed an emergency response manual that is designed to enable cast members to take prompt

action in the event of an earthquake or other emergency at theme parks, and conduct comprehensive emer-

gency drills and area-specific drills twice a year to ensure that our employees fully understand the procedures in

the emergency response manual. In addition, we gather information on disaster prevention from government

organizations and specialists with the intent of increasing knowledge and improving skills within the Group.

The manual ensures that we are ready to take prompt action in the event of a natural disaster. Several sites

have been identified within the two theme parks that can be used for evacuation. So, appropriate evacuation

areas can be designated as the situation demands. We will also set up temporary emergency shelters to facili-

tate emergency assistance.

We will continue to provide training on a regular basis so as to ensure our ability to provide the optimal

response in any emergency.

Corporate Social Responsibility (CSR)

We remain committed to bring happiness to our Guests and the community through business opera-

tions that give due consideration to the diversifying values of our customers and by addressing con-

cerns and matters related to the community as a whole.

Pursuing Normalization

At Tokyo Disney Resort, we are continuing our efforts to establish facilities that are barrier-free and other sup-

port systems for guests with disabilities. We are also conducting employee education and training programs to

bolster our ability to offer disabled guests service that better meets their individual needs. Furthermore, a num-

ber of employees have voluntarily learned sign language, and we have accordingly established a certification

system within the Company to support such activities.

(Currently approximately 100 employees have received certification)

Learning from Guest Feedback

The comments from guests visiting Tokyo Disney Resort offer myriad clues as to how we can make the

resort even better. These comments are analyzed and shared within the Company, and we use them to

explore and implement a wide range of measures aimed at improving the safety and quality of our

services and facilities.

Examples of Facilities and Services Improved due to Guest Feedback

Discomfort while waiting in line for attractions for long periods of time on hot days

Installed parasols to keep guests from being exposed to direct sunlight and misting water to lower temperatures around attractions

Separation of smoking areas in theme parksPlanted shrubbery around smoking areas to reduce the spread of second-hand smoke by preventing the release of smoke and changed the color of path markers and set signs leading to smoking areas

INCORPORATING THE SOCIAL PERSPECTIvES AND NEEDS INTO OUR BUSINESS

PROvIDING THE PEACE OF MIND THAT COMES FROM SAFETY

The OLC Group will continue to partake in various activities involving guests, communities, the environment, and employees

to create a future filled with dreams that enrich people’s lives.





Financial Section


We undertake career education programs that foster a positive attitude to work among junior high school students in Urayasu City

Some parts of our cast costumes are sourced from recycled materials

The central monitoring system of our central energy plant

Water is collected and purified at OLC’s own water treatment facilities

Products and menus that have been developed through the “I Have an Idea” Program

Encouragement of employee independence through career advancement programs

OLC Group Policy on Community Action ProgramsThe OLC Group seeks to engage in community action programs that focus on the positive development of children—our hope for the future—as a means of creating healthy and happy families, regions and communities.

Programs Fostering the Positive Development of Children The OLC Group will support programs that “nurture the heart” with a view toward developing

intellectual curiosity and consideration for others in children.

Programs that Support Children The OLC Group will support programs that provide assistance to children who have been placed at a

disadvantage for various reasons.

The OLC Group has established an Environmental Policy that sets forth guidelines for action and our

philosophy governing the Group’s environmental activities. The Group has established the Environment

Committee to promote the environmental activities of the Group. This committee is chaired by the execu-

tive manager of our General Affairs Department and is responsible for planning environmental activities

and for setting the Company’s targets in this area.

Electric power and other energy resources are vital to the running of theme parks. However, we are ac-

tively working to reduce CO2 emissions and energy consumption, and define environmentally conscious

practices as a prerequisite for our business operations. In these manners, we are working to reduce the

environmental impact of our operations through a variety of different means.

Measures against Global Warming

The OLC Group is working to prevent global warming by promoting measures to reduce CO2 emissions and

energy consumption. We have been working to reduce CO2 emissions through such initiatives as reducing

energy consumption by installing a new large-scale heat pump in our central energy plant*. Furthermore, in

order to reduce energy consumption, we have established the Energy Management System, and have been

combining a diverse range of measures including promoting the visibility of energy-related issues, as well as

changing several lights in buildings and those used in night parades to light-emitting diodes (LEDs).* Rather than building heat pumps for each of the facilities in our theme parks, such as attractions, restaurants and shops, we built a central heat

pump, which distributes the heat used in the air conditioners in all of these facilities.

Initiatives to Reduce Waste

We have been working to reduce waste by installing hand dryers* in restrooms and using tableware made of

porcelain, ceramic and metal in dining facilities. Additionally, we are aggressively promoting recycling through

such initiatives as the appropriate disposal of waste and separating garbage based on highly detailed specifica-

tions. As a result of these measures, we have raised the recycling rate for Tokyo Disney Resort as a whole from

less than 50% in the fiscal year ended March 31, 2003—the first full year of operation of Tokyo DisneySea—to

approximately 70% in the fiscal year ended March 31, 2011. Among the various recycling categories, the recy-

cling rate for kitchen garbage at the theme parks is now almost 100%.* According to the power supply/demand situation, hand dryers will be turned off in order to conserve electricity.

Water Treatment

The precious water used at Tokyo Disney Resort is collected and purified at the Company’s own water treat-

ment facilities. Furthermore, approximately 60% of used water is subsequently recycled and used in toilets.

Additionally, through the establishment of the OLC Group Water Supply and Disposal Guidelines, we are con-

structing systems to enable optimal plumbing management and operation, as well as developing an emer-

gency procedure flow-chart for issues relating to water usage.

Our mission as a Group is to offer dreams, moving experiences, happiness and contentment, and our com-

munity action programs focus on the “heart.” Support for the well-being of children and families is deeply

rooted in our business and we put particular emphasis on programs that support positive childhood de-

velopment, since children are our future. Our support for the development of children involves providing

entertaining educational experiences.

Programs to Educate Children in Local Communities

The OLC Group is actively involved in work experience study programs and hosting classes in schools. The

Group’s work experience study program gives children the opportunity to gain firsthand experience of

the various tasks that take place behind the scenes at Tokyo Disney Resort, and to learn that all jobs are

connected to the happiness of our guests.

Delivering the Dream of Our Theme Parks

By visiting hospitals and other facilities nationwide, the OLC Group has been working to deliver the Disney

dream to people who are unable to visit Tokyo Disney Resort as an ongoing commitment since Tokyo

Disneyland opened to the public in 1983.

In the fiscal year ended March 31, 2011, Disney characters and Tokyo Disney Resort Ambassadors visited a

total of 34 facilities.

ENvIRONMENTAL PROTECTION ACTIvITIES

OLC Group Corporate Social Responsibility (CSR)

Oriental Land Co., Ltd. is committed to creating a corporate culture that inspires, empowers and energizes

our employees since they provide Guests with wonderful dreams, moving experiences, joy and contentment.

Furthermore, we have introduced a variety of education programs matched to each work area and a

career advancement program. Additionally, we are implementing a number of measures to help employ-

ees develop harmony between their work and private lives while also promoting occupational health and

safety.

Training and Career Development

As stated in our management credo, we are committed to “respect individuals and support their work” and offer

our employees both the opportunity to maximize their potential and a range of programs that give our employ-

ees the support they need to enhance their professional skills. Our employees are encouraged to pursue career

development opportunities within the Group, and we have a system that enables part-time employees to apply

for theme park employee status and for theme park employees to apply to become corporate employees.

Enhancing the Work Environment and Work-Related Systems

Aligned with our business mission, which emphasizes the value of original and imaginative ideas, the OLC

Group is striving to develop a corporate culture in which all employees think about how to achieve this mission.

For example, OLC has developed a program in which ideas received from employees are utilized at Tokyo Disney

Resort. To date, ideas received through this program have successfully resulted in improvements to facilities, in

new merchandize and in menu items for special events.

For child care and nursing support systems, employees are entitled to take a leave of absence for childcare,

regardless of gender, until the day before the child reaches one year of age, and may opt to extend this leave

of absence under an independent initiative. We have allowed employees to take a leave of absence by the hour

since April 2011.

ENHANCING THE WORK ENvIRONMENT AND WORK-RELATED SYSTEMS

SOCIAL CONTRIBUTION ACTIvITIES





Financial Section


President Officer

Kyoichiro Uenishi

Executive Vice President Officers

Kiichi SunayamaGeneral Manager of Theme Park Business Unit, Theme Park Business Supervision Department, Resort Creation Depart-ment

Yojiro ShibaDeputy General Manager of Theme Park Business Unit. Marketing Division,Theatrical Business Division, Finance / Accounting Department

Senior Executive Officer

Norio IrieHuman Resources Division, IT Promotion Department, Food Safety Control Department, Casting Department

Executive Officers

Yasushi TamaruOperations Division, Entertainment Division

Shigeru SuzukiGeneral Affairs Department, Publicity Department, Internal Auditing Depart-ment, Business Solution Department

Yumiko TakanoRepresentative Director and President of Milial Resort Hotels Co., Ltd.

Akiyoshi YokotaCorporate Strategy Planning Division, Affiliated Business Department

Officers

Yoritoshi KikuchiDirector of Engineering Division

Hirofumi KohnobeRepresentative Director and President of IKSPIARI Co., Ltd.

Katsuhisa UdagawaBusiness Solution Department, Affiliated Business Department

Etsuko NagashimaCS Enhancement Department, Cast Development Department

George YasuokaDirector of Theatrical Business Division

Wataru TakahashiFinance / Accounting Department

Masufumi SumimotoMerchandise Department Division

Seiji KurokawaFood Division, Director of Food Purchase & Development Department

Tetsuro SatoDirector of Theme Park Business Supervision Department

Board of Directors, Corporate Auditors and Corporate Officers(As of July 1, 2011)

Representative Director, Chairman and CEO

Toshio Kagami1972 Entered the Company2005 Representative Director, Chairman and CEO

< Concurrent office>Representative Director and Chairman of Milial Resort Hotels Co., Ltd.Corporate Auditor (External) of Keiyo Gas Co., Ltd.

Representative Director, President and COO

Kyoichiro Uenishi1980 Entered the Company2009 Representative Director, President and COO

< Concurrent office>Corporate Auditor of Keisei Electric Railway Co., Ltd.

Note: Executive Director (External) Tsutomu Hanada and Corporate Auditor (External) Akiyasu Nakano satisfy the requirements for independent officers as specified in Article 436-2 of the Securities Listing Regulations of Tokyo Stock Exchange, Inc.

BOARD OF DIRECTORS

CORPORATE AUDITORS

Representative Director

Kiichi Sunayama

1970 Entered the Company2007 Representative Director

Corporate Auditor (External)

Akiyasu Nakano

1991 Licensed attorney at law Entered Marunouchi Sogo Law Office

2008 Corporate Auditor of the Company

<Concurrent office>Partnership Lawyer of Marunouchi Sogo Law Office

Corporate Auditor (External)

Hiroshi Otsuka

1958 Entered Keisei Electric Railway Co., Ltd.1996 Corporate Auditor of the Company2008 Advisor of Keisei Electric Railway

Co., Ltd.

<Concurrent office>Advisor of Keisei Electric Railway Co., Ltd.

Standing Corporate Auditor (External)

Isao Iizuka

2008 Corporate Auditor of the Company

Standing Corporate Auditor

Fumio Tsuchiya

1979 Entered the Company2005 Corporate Auditor of

the Company

Executive Director

Norio Irie

1975 Entered the Company2003 Executive Director

Executive Director

Shigeru Suzuki


Executive Director

Akiyoshi Yokota


Executive Director

Hirofumi Kohnobe


<Concurrent office>Representative Director and President of IKSPIARI Co., Ltd.

Executive Director

Yasushi Tamaru


Executive Director

Yumiko Takano


<Concurrent office>Representative Director and President of Milial Resort Hotels Co., Ltd.

Executive Director

Yoritoshi Kikuchi


Executive Director (External)

Tsutomu Hanada

1966 Entered Keisei Electric Railway Co., Ltd.2005 Executive Director of the Company

<Concurrent office>Representative Director and Chairman of Keisei Electric Railway Co., Ltd.Executive Director (External) of Shin-Keisei Electric Railway Co., Ltd.

Representative Director

Yojiro Shiba

2005 Entered the Company2009 Representative Director

CORPORATE OFFICERS

Oriental Land Annual Report 2011 Oriental Land Annual Report 2011

Officer and Director of Finance / Accounting Department

Wataru Takahashi

46 47

(Billions of yen)

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Interest-Bearing Debt &Debt-to-Equity Ratio

■■ Interest-Bearing Debt　　 Debt-to Equity Ratio

(Times)

0.61

0.76

0.520.47 0.40

294.3

235.6

193.0173.3

142.9

(Billions of yen)

■■ Operating Income　　Operating Margin

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Operating Income &Operating Margin

(%)

9.9 9.110.3

34.131.1

40.1 41.9

11.3

53.7

15.1

(Yen)

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Cash Dividends per Share

5560

70

100 100

Message from the Officer in Charge of the Finance / Accounting Department

Steady Strengthening of the Financial FoundationThe OLC Group is currently preparing to create new growth. However, it must first develop a strong financial foundation to be able to target long-term sustainable improvements in corporate value. This is because reducing interest-bearing debt enables a company to devote its funds to future invest-ments. In the past three years, OLC has reduced its interest-bearing debt approximately ¥150.0 billion. Through these efforts, interest-bearing debt totaled ¥142.9 billion at the end of the fiscal year ended March 31, 2011, and the debt-to-equity ratio was 0.40 times. By steadily strengthening our finan-cial foundation, we will bolster our ability to respond swiftly when difficult management decisions need to be made. Our ability to respond to the effects of the Great East Japan Earthquake was not only because of the safety of our facilities and our employees’ ability to respond to this disaster but also thanks to our strong financial foundation. As the OLC Group had set aside liquid capital that was sufficient enough to fund operations into the near future, it was able to continue operation without procuring additional funds. Going forward, we will continue to strengthen our financial foundation to enable us to respond quickly to any risks that may occur.

Improved Operating Margin and Record-Breaking Operating IncomeIn the fiscal year ended March 31, 2011, we achieved record-breaking operating income of ¥53.7 billion, regardless of the lower revenues that were caused by the effects of the earthquake. Also, the operating margin showed significant improvement at 15.1%. The operating margin has continued to improve for the past three fiscal years. Over the past several years, we have worked to reduce costs and improve return on investment. Accordingly, we have seen decreases in the

variable cost ratio, fixed costs and depreciation and amortization expenses, as well as the abovementioned improvements in the operating margin. In particular, the operating margin of the Theme Park Segment has shown impressive improvement, rising 4.3 percentage points, to 15.9% in the fiscal year under review. We believe that the speed of recovery following the earthquake will be heavy affected by changes in the market. Therefore, we must continue to closely monitor costs and return on investment for the foreseeable future. By building strong business infrastructure, we will lay the foundation on which we will achieve future growth.

Continued Focus on Stockholder ReturnsBy further strengthening OLC’s business foundation in these manners, we aim to create stable free cash flow and long-term sustainable improvements in corporate value. Leveraging this free cash flow, we intend to maintain our focus on stockholder returns. In the fiscal year under review, net income was down year on year due to the recording of extraordinary loss associated with the Great East Japan Earthquake. However, in accordance with our policy of maintaining stable stockholder returns, we have chosen to pay cash dividends for the year of ¥100 per share, the same as in the previous fiscal year. Going forward, we will strive to maintain stable dividends while taking into account factors in the external operating environment that may affect our operations. In the past three years, we have repurchased shares of the Company’s stock totaling ¥71.6 billion in value. While we were anticipating ROE of over 8% in the fiscal year under review, the effects of the earthquake resulted in ROE of 6.3%. Though we must address external factors as they affect our operations, our goal of achieving ROE of over 8% at the earliest date possible remains unchanged.

Financial Policy of OLC

The OLC Group will aim to improve corporate value in a manner that is sustainable in the long term by further strengthening its business foundation.The OLC Group has formulated its 2013 medium-term plan. The plan calls for the Group to achieve sustainable growth

in its core business, the operation of the Tokyo Disney Resort, so that it can create abundant free cash flow to be used

for future investment and stockholder returns. In addition to steadily implementing the measures outlined in this plan,

the Group is taking a long-term stance toward management. The Great East Japan Earthquake temporarily damaged

our business performance. Reflecting on this, we have decided to further strengthen our business foundation in order

to improve corporate value in a manner that is sustainable in the long term.

Six-Year SummaryOriental Land Co., Ltd. and Consolidated SubsidiariesFiscal Years Ended March 31

(Millions of yen)(Thousands of U.S. dollars1)

’11/3 ’10/3 ’09/3 ’08/3 ’07/3 ’06/3 ’11/3

FOR THE YEAR:

Revenues ¥356,181 ¥371,415 ¥389,243 ¥342,422 ¥344,083 ¥332,885 $4,283,596

Operating income 53,664 41,924 40,096 31,144 34,111 30,605 645,388

Income before income taxes 38,086 37,780 34,841 25,475 28,863 26,448 458,040

Total income taxes 15,188 12,354 16,878 10,739 12,546 10,738 182,658

Net income 22,908 25,427 18,089 14,731 16,309 15,704 275,502

Capital expenditures2 27,904 19,419 40,140 52,691 54,807 43,129 335,586 Depreciation and amortization,

aggregate39,985 46,695 49,733 43,623 42,951 43,374 480,878

EBITDA3 93,649 88,619 89,829 74,767 77,062 73,979 1,126,266

Free cash flow4 34,989 52,703 27,682 5,663 4,453 15,949 420,794

AT YEAR-END:

Total assets ¥574,635 ¥615,090 ¥644,992 ¥757,542 ¥699,772 ¥718,866 $6,910,824 Theme parks, resorts and other property, at cost

472,152 487,871 516,040 531,479 526,217 518,936 5,678,316

Total net assets5 357,779 366,473 373,660 388,181 385,001 375,947 4,302,814

Interest-bearing debt 142,937 173,289 193,019 294,320 235,626 266,945 1,719,026

(Yen) (U.S. dollars1)

PER SHARE DATA:

Net income (EPS) ¥265.26 ¥ 280.17 ¥ 196.84 ¥ 154.86 ¥ 171.46 ¥ 162.73 $ 3.19

Net assets (BPS) 4,288.99 4,240.59 4,109.59 4,079.44 4,046.03 3,950.49 51.58

Cash dividends 100.00 100.00 70.00 60.00 55.00 45.00 1.20

(%)

SELECTED FINANCIAL DATA:

Operating margin 15.1% 11.3% 10.3% 9.1% 9.9% 9.2%

Return on revenues 6.4 6.8 4.6 4.3 4.7 4.7

Return on assets (ROA)6 3.9 4.0 2.6 2.0 2.3 2.3

Return on equity (ROE)7 6.3 6.9 4.7 3.8 4.3 4.1

Equity ratio 62.3 59.6 57.9 51.2 55.0 52.3

Payout ratio 37.7 35.7 35.6 38.7 32.1 27.7

Annual theme park attendance (thousands of guests)

25,366 25,818 27,221 25,424 25,816 24,766

Revenues per guest (¥) 10,022 9,743 9,719 9,370 9,309 9,220

Number of shares issued (thousands)

90,923 90,923 95,123 95,123 100,123 100,123

Number of employees 3,960 3,954 4,115 3,896 3,750 3,676

Notes: 1. The U.S. dollar amounts are provided for convenience only and have been converted at the rate of ¥83.15 to U.S.$1, the prevailing exchange rate at March 31, 2011. 2. Capital expenditures includes tangible and intangible assets and long-term prepaid assets. 3. EBITDA = Operating income + Depreciation and amortization, aggregate 4. Free cash flow = Net income + Depreciation and amortization, aggregate–Capital expenditures 5. Total net assets as of March 31, 2006 has been restated in accordance with a change in accounting standards. 6. Return on assets = Net income / Total assets 7. Return on equity = Net income / Total stockholders’ equity

Oriental Land Annual Report 2011

Message from the Chairmanand the President

Feature Review of ConsolidatedOperations



Financial Section

48 49

(Billions of yen)

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Revenues

344.1 342.4

389.2371.4 356.2

(Billions of yen)

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Total Assets & Return on Assets (ROA)

■■ Total Assets　　 Return on Assets (ROA)

(%)

2.3 2.0

2.6

699.8757.5

645.0 615.1

4.0

574.6

3.9

(Billions of yen)

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Total Net Assets &Equity Ratio

■■ Total Net Assets　　 Equity Ratio

（%）

55.0 51.257.9

385.0 388.2 373.7 366.5

59.6

357.8

62.3

(Billions of yen)

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Net Income & Return on Equity (ROE)

■■ Net Income　　 Return on Equity (ROE)

(%)

4.3 3.8

4.7

16.314.7

18.1

25.4

6.9

22.9

6.3

Management’s Discussion and Analysis of Operations

Up until March 11, 2011, the occupancy rates were approximately 90% for

Tokyo Disneyland Hotel, in the mid-90% range for Tokyo DisneySea Hotel

MiraCosta, approximately 80% for Disney Ambassador Hotel and approxi-

mately 80% for the Palm & Fountain Terrace Hotel.


Revenues in the Other Business Segment decreased 10.0% year on year, to

¥21.7 billion, as a result of the suspension of operations due to the impact of

the Great East Japan Earthquake.

Theme Park Information

Fiscal year ended March 31, 2011


Change from previous

period (%)

Theme park attendance (Millions of guests) 25.37 25.82 (1.8)Revenues per guest ¥10,022 ¥9,743 2.9 Ticket receipts ¥ 4,217 ¥4,206 0.3 Merchandise revenues ¥ 3,629 ¥3,377 7.5 Food and beverages revenues ¥ 2,176 ¥2,160 0.7

Operating Income

Operating income set a new record at ¥53.7 billion (up 28.0%). This was due

to increased revenues in the Theme Park Segment, which has particularly

high profit margins, reduced variable cost ratio and lower fixed costs. The

operating margin improved 3.8 percentage points, to 15.1%.

Theme Park Segment

In the Theme Park Segment, operating income increased 39.0% year on year,

to ¥46.2 billion, due to reductions in the variable cost ratios and fixed

expenses, in addition to an increase in revenues.

The reduction in variable cost ratios including the cost of merchandise

ratio and cost of food and beverages ratio was ¥2.5 billion, whereas the

reduction in personnel expenses, depreciation and amortization expenses

and other fixed expenses totaled ¥9.3 billion.


Despite a decrease in revenues due to the suspension of operations,

operating income in the Hotel Business Segment increased 0.2% year on

year, to ¥8.4 billion, as a result of a decrease in depreciation and amortization

expenses, among other factors.


Operating loss in the Other Business Segment was ¥1.2 billion, loss ¥1.1

billion year on year owing to an increase in the facility renovation costs of

Ikspiari, in addition to a fall in revenues as a result of the impact of the suspen-

sion of operations.

Please see the review of consolidated operations on pages 24 through 29

for detailed segment information.

Other Income (Expenses) and Income before Income Taxes

Other expenses totaled ¥15.6 billion, compared with other expenses of ¥4.1

billion for the previous fiscal year. Loss on disaster of ¥9.7 billion attributable

to the earthquake was recorded.

As a result of the above, income before income taxes increased 0.8%

compared with the previous fiscal year, to ¥38.1 billion

Income Taxes

Income taxes were ¥15.2 billion (up 23.0%). The effective tax rate, calculated

as the ratio of income taxes to income before income taxes, rose 7.2

percentage points, to 39.9%

Net Income

Net income was ¥22.9 billion (down 9.9%). Net income per share decreased

to ¥265.26. ROE became 6.3%.

Assets

Total assets as of March 31, 2011 were ¥574.6 billion (down 6.6%).

Total current assets declined to ¥65.4 billion (down 26.2%) due to decrease

in cash and cash equivalents, notes and accounts receivable−trade and

short-term investment securities, among other factors.

Total non-current assets dropped to ¥509.3 billion (down 3.3%) due to

various factors, including a decrease in property, plant and equipment as a

result of the continued depreciation and amortization of facilities at Tokyo

Disney Resort.

In the fiscal year ended March 31, 2011, corporate earnings in Japan began a

recovery trend, sustained by effective economic policies and improvements

in the economic environment, including the recovery of exports. Consumer

spending, however, remained sluggish, reflecting such factors as the deterio-

rating employment and income conditions. In addition, we are concerned

that the Great East Japan Earthquake will exert various negative influences in

the days ahead. Under these circumstances, the financial performance of the

OLC Group was favorable up until the end of the third quarter, significantly

exceeding the results of the same period of the previous fiscal year. The

strong performance was attributable to the fact that events held at the two

theme parks were successful and Tokyo DisneySea’s fan base continued to

expand in the Theme Park Segment, the mainstay business of the Group.

However, in light of external factors, namely, the Great East Japan Earthquake

and subsequent power shortages, we suspended operations of all facilities at

Tokyo Disney Resort.

As a result of the above and the transference of the Retail Business

Segment, revenues decreased 4.1% year on year, to ¥356.2 billion. However,

due to reductions in the cost of merchandise ratio, cost of food and bever-

ages ratio and depreciation and amortization expenses, operating income

increased 28.0%, to ¥53.7 billion. Meanwhile, net income declined 9.9%, to

¥22.9 billion, owing in part to the fact that extraordinary expenses such as

fixed expenses (including personnel expenses and depreciation and amorti-

zation expenses) incurred during suspension of operations, facility restora-

tion expenses and merchandise disposal loss were recorded as a result of the

earthquake.

There were no human casualties or injuries caused by the earthquake

among our guests or employees. The buildings and facilities at the theme

parks and other sites were also spared serious damage and no liquefaction

phenomenon was observed with the exception of a portion of the flat

parking area.

(Billions of yen)



Increase (decrease)

Change from previous

period (%)

Revenues 356.2 371.4 (15.2) (4.1)

Theme Park Segment 290.5 287.3 3.2 1.1

Hotel Business Segment 44.0 45.2 (1.2) (2.7)

Retail Business Segment — 14.8 (14.8) —

Other Business Segment 21.7 24.1 (2.4) (10.0)

Operating Income (Loss) 53.7 41.9 11.7 28.0

Theme Park Segment 46.2 33.2 13.0 39.0

Hotel Business Segment 8.4 8.4 0 0.2

Retail Business Segment — 0 (0) —

Other Business Segment (1.2) (0.1) (1.1) —

Net Income 22.9 25.4 (2.5) (9.9)

Revenues

Revenues for the OLC Group decreased 4.1% compared with the previous

fiscal year, to ¥356.2 billion. While revenues increased in the Theme Park

Segment, this was offset by factors such as the transference of the Retail

Business Segment in March 2010, resulting in an overall decrease.

Theme Park Segment

Theme Park Segment revenues were ¥290.5 billion (up 1.1%). Park attendance

was strong and greatly exceeded last year’s numbers for the majority of the

year, driven by the openings of new attractions, the growing fan base of Tokyo

DisneySea and the favorable weather seen throughout the year. However, we

were forced to close both parks since March 12, 2011 due to the effects of the

Great East Japan Earthquake, resulting in lower park attendance of 25.37

million people (down 1.8%). Regardless, revenues per guest set a record high at

¥10,022 (up 2.9%) due to increased merchandise revenues per guest.


Revenues in the Hotel Business Segment declined 2.7% year on year, to ¥44.0

billion. This was due to suspending operations for 20 days owing to the

impact of the Great East Japan Earthquake.

(1) Revenues and Income

(2) Assets, Liabilities and Net Assets

Overview of Consolidated Results (Fiscal Year Ended March 31, 2011)1






Financial Section

50 51

(Billions of yen)

■■ Cash Flows from Operating Activities　■■ Cash Flows from Investing Activities■■ Cash Flows from Financing Activities

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Cash Flows

(67.9)

(36.0)(59.6)

52.9

5.8

66.5 57.778.1

(130.9)

72.1

(22.7)

(53.1)

(25.2)

74.3

(61.0)

(Billions of yen)

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Capital Expenditures &Depreciation and Amortization, Aggregate

■■ Capital Expenditures　■■ Depreciation and Amortization, Aggregate

43.0 43.649.7

54.8 52.7

40.1

19.4

46.7

27.9

40.0

Liabilities

Total liabilities as of March 31, 2011 were ¥216.9 billion (down 12.8%).

Total current liabilities declined to ¥107.0 billion (down 12.5%) due to

various factors, including the redemption of the Unsecured Straight Bonds

8th series (¥20.0 billion) in March 2011.

Total non-current liabilities dropped to ¥109.9 billion (down 13.0%) due to

a decrease in long-term debt, among other factors.

As of March 31, 2011, interest-bearing debt totaled ¥142.9 billion (down

17.5%). The debt-to-equity ratio improved to 0.40 times from 0.47 times a

year earlier.

Net Assets

Total net assets as of March 31, 2011 dropped to ¥357.8 billion (down 2.4%)

due to various factors, including a new repurchase of 3.0 million shares of

treasury stock (3.3% of the total number of shares issued and outstanding) in

March 2011, despite an increase in net income. Stockholders’ equity ratio

stood at 62.3% (up 2.7 points).

Cash Flows

Cash and cash equivalents as of March 31, 2011 totaled ¥35.4 billion, down

¥11.8 billion year on year.

Cash Flows from Operating Activities

Net cash provided by operating activities increased ¥2.2 billion year on year,

to ¥74.3 billion, due to factors that included a decrease in income tax

payments, in addition to a rise in net cash provided by operating activities.

Cash Flows from Investing Activities

Net cash used in investing activities decreased ¥2.5 billion, to ¥25.2 billion,

due to factors that included an increase in acquisition of property and

addition to investment securities, despite a decrease in payments into time

deposits included in other current assets.

Cash Flows from Financing Activities

Net cash used in financing activities increased ¥7.9 billion, to ¥61.0 billion,

due to factors that included an increase in repayment of long-term debt and

an increase in dividends paid, despite a decrease in repayment of short-term

loans payable.

Capital Expenditures and Depreciation and Amortization, Aggregate

Capital expenditures were ¥27.9 billion (up 43.7%).

This was primarily due to increased investments in new attractions such

as “Mickey’s PhilharMagic” and “Toy Story Mania!”

Depreciation and amortization, aggregate totaled ¥40.0 billion (down

14.4%). This is primarily due to the reductions in depreciation and amortiza-

tion related to the initial investment in Tokyo DisneySea.

Free Cash Flow

Free cash flow totaled ¥35.0 billion (down 33.6%). This was primarily the

result of increased capital expenditures and decreased net income as a

result of the disaster.

Funding and Bond Ratings

The OLC Group’s primary source of liquidity is cash generated in day-to-day

operating activities. In addition, the OLC Group will work to increase free

cash flow under the 2013 medium-term plan. The OLC Group’s policy is to

allocate free cash flow to direct stockholder returns while reducing interest-

bearing debt and enhancing business development in order to secure

surplus capital to fund new growth.

As of March 31, 2011, the OLC Group’s long-term debt was rated AA by

Japan Credit Rating Agency, Ltd. (JCR) and AA- by Rating and Investment

Information Inc. (R&I).

In addition, the OLC Group also manages liquidity by maintaining

commitment lines with strong financial institutions in Japan and overseas to

obtain access to low-cost liquidity to respond to risks that may arise.


(3) Cash Flows

Although we had suspended operations of our facilities in light of external

factors exemplified by the power shortages consequent to the Great East Japan

Earthquake, we reopened Tokyo Disneyland and Tokyo DisneySea on April 15

and April 28, respectively, while pursuing stringent power-saving efforts. During

the coming summer, we are planning to operate the two theme parks based on

the same time schedule as in past years, working within the government’s

power-saving framework. Further, as a measure for coping with the power

shortages, plans are underway to install additional privately owned generators

by August to provide a portion of the electricity used by our theme parks.

We do not present a forecast for the fiscal year ending March 31, 2012 in this

material, given the difficulties in creating a reasonable forecast at this point in

time. We will closely examine the trends of external factors such as the power

supply/demand situation as well as their impact on financial results and will

publicly announce our forecast of results as soon as it is ready for disclosure.

Forecast of Results for the Fiscal Year Ending March 31, 20122

2013 Medium-Term Plan

(Fiscal year ending March 31, 2012 to fiscal year ending

March 31, 2014)

During the last four fiscal years the OLC Group implemented the 2010

medium-term plan, under which it has made consistent progress in

strengthening the foundation of Tokyo Disney Resort. This fiscal year, we have

launched the 2013 medium-term plan, which covers the period between the

fiscal year ending 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 responding to expected future

changes in the surrounding environment, such as shifting demographics.

OLC has formulated the following two fundamental policies for the new

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.

The management objective in the next medium-term plan is to “generate

corporate value that will enable sustainable growth over the long term” and

a numerical target has been set at “around the ¥120.0 billion level of

aggregated free cash flow to be generated over three years.” Having come

through a period of priority investment that included large-scale investment

projects such as Tokyo DisneySea and Disney hotels, in the fiscal year ended

March 31, 2009, OLC entered a period in which free cash flow has been

generated in a steady stream.

Medium- and Long-Term Strategies, Management Indicators3

*1 Under scruting of transient impact*2 Free cash flow = net income + depreciation and amortization expenses—capital expenditure

2013 Medium-Term Plan (FY ending 3/12 to FY ending 3/14)

Management objectiveGenerate corporate value which will enablesustainable growth over the long term

Target¥120.0 billion*1 level of aggregated free cash �ow*2 to be generated during three years

Sustainable growth of the core business (Tokyo Disney Resort)1

Reinforcement of the foundation for long-term sustainable growth2

Continue to generate a high level of free cash �ow

(4) The Impact of the Great East Japan Earthquake

The buildings and facilities at Tokyo Disney Resort were spared serious damage

thanks to the ground improvement techniques we adopted at the time of

construction as a preventative measure against liquefaction. There were no

human casualties or injuries caused by the disaster among our guests or

employees. Although liquefaction phenomenon was observed in one portion

of Tokyo Disneyland’s flat parking area, we promptly repaired the damage.

Immediately after the earthquake, an Earthquake Response Coordination

Task Force was set up, headed by the president, to manage the crises. The

task force promptly undertook various measures in accordance with the

Tokyo Disney Resort Earthquake Response Plan created by OLC. Under the

plan, we have made a point of implementing emergency drills and training

for our employees at each Tokyo Disney Resort facility and maintaining a

substantial store of food and beverages for emergency purposes. This helped

us deal with the crises effectively.

In the subsequent recovery phase, we pursued efforts to resume operation

of our theme parks and other facilities at Tokyo Disney Resort under the

leadership of the Earthquake Response Coordination Task Force. Having

resumed operations, we are now striving to save electricity in response to

power shortages by reducing lighting and operation of water fountains

within the theme parks and back areas, as well as air conditioning. Further,

plans are underway to install additional privately owned generators by

August to provide a portion of the electricity used by our theme parks.

In response to the recent disaster, OLC will renew its efforts to identify

potential risks that were previously inconceivable and establish preventive

and responsive measures against them while aiming to achieve a higher

level of disaster resistance and safety for our facilities. We also intend to

continue providing our employees with training and guidance, as we have in

the past, to empower them to offer high-quality services even in the event of

an emergency.

OLC sets aside cash reserves, which is earmarked to serve as working

capital if needed in the event of a temporary decline in revenues. In addition,

we have concluded a commitment line agreement with our banks, a contract

under which the banks promise to provide financing of ¥30.0 billion.






Financial Section

52 53

(Yen)

’07/3 ’08/3 ’09/3 ’10/3 ’11/3

Cash Dividends per Share

■■ Interim　■■ Year-end

25

30

60

30

30 30

55

70

100

40

40

60

100

50

50

While net income was down year on year due to the effects of the Great East

Japan Earthquake, the Company will continue to adhere to its policy of

providing stable stockholder returns. According, it will issue year-end cash

dividend payments of ¥50 per share, for a total of ¥100 per share in the fiscal

year under review, the same as in the previous fiscal year. This will make for a

consolidated dividend payout ratio of 37.7%.

Going forward, we will strive to maintain stable dividends, while

considering external factors. However, we will not present a forecast for the

fiscal year ending March 31, 2012 in this material, given the difficulties in

creating a reasonable forecast at this point in time.

In the year under review, we repurchased ¥21.1 billion worth of treasury stock

in March 2011. Looking ahead, we will continue to consider repurchases of

treasury stock as necessary.

In the year under review ROE was 6.3%. Moreover, the Company aims to

increase ROE to 8.0% or higher at the earliest date possible.

(1) Dividends (2) Share Repurchases

Issues that could exert a material effect on the results, financial position, stock

price and other aspects of the OLC Group include, but are not limited to, the

following. Management believes that these are among the issues that could

significantly affect the decisions of investors.

Please note that forward-looking statements are based on judgments

made by the OLC Group as of June 29, 2011.

(1) Risks Related to Weakening of the Tokyo Disney Resort Brand

n Quality of Tangibles (Facilities, Services, etc.)

The OLC Group’s principal business, Tokyo Disney Resort, maintains guest

satisfaction at a high level by constantly creating new experience value for

guests through such means as introducing new facilities. The OLC Group will

work to raise the overall appeal of Tokyo Disney Resort by raising the quality

of its facilities and services. However, lower guest satisfaction due to factors

including an inability to properly time investments as a result of unforeseen

circumstances could damage the Group brand.

n Quality of Intangibles (Cast Hospitality, etc.)

The OLC Group’s principal business, Tokyo Disney Resort, is supported by

numerous cast members. The hospitality of cast members creates strong

feelings of satisfaction among guests. Going forward, the OLC Group will

educate cast members and create a work environment that gives cast

members a sense of pride and joy in their work. However, lower guest satis-

faction due to factors including a shortage of workers as a result of unfore-

seen circumstances could damage the Group brand.

(2) Risks Related to Operations

n Product Deficiencies and Problems

Incidents, including attraction incidents, sale of defective merchandise or

product tampering, involving the products and services of Tokyo Disney

Resort, including attractions, products and foods, could entail serious harm

to the guests who are customers, and could result in material costs from

factors including decreased trust in the Group’s priority on safety, damage to

the Group brand and lawsuits.

n Regulatory Violations

The OLC Group emphasizes compliance in operating its businesses and

conducting related transactions including the procurement of products and

materials. We maintain systems that promote compliance and provide

ongoing education to managers. These efforts notwithstanding, failure

among managers to prevent major regulatory violations or incidents could

result in the cessation of part or all operations due to government actions,


Basic Policy on Distribution of Profit and Dividends4

Business Risks5

reduced trust in the OLC Group, damage to the Group brand or other

negative consequences including lawsuits involving large expenses.

n Information Security

The OLC Group takes full precautions in its business activities to prevent

avoidable leaks of the personal information it maintains on guests and the

proprietary information it maintains concerning business operations. These

precautions include strengthening the security of internal networks and

limiting access to information. However, should the Company’s database be

hacked, or were information within the database to be misused, leaked or

altered following unforeseen circumstances, it could result in reduced trust in

the OLC Group, damage to the Group brand or other negative consequences

including lawsuits involving large expenses.

These precautionary measures include strengthening surveillance systems

for internal networks and limiting access to information. However, unforesee-

able or unexpected instances such as hacking of internal information, misuse

of internal databases, leaks or falsification could lead to a decrease in trust in

the OLC Group, damage to the Group brand or other negative consequences

including lawsuits involving large expenses that could affect the perfor-

mance of the OLC Group.

(3) Risks Related to the External Environment

n Weather

In the OLC Group’s principal business, Tokyo Disney Resort, the number of

guests that visit the theme parks is easily influenced by weather conditions

such as climate and temperature. Consequently, an extended period of

inclement weather could cause the number of guests to decrease.

n Natural Disasters

The OLC Group’s business infrastructure is concentrated in the Maihama area,

and a major earthquake, fire, flood or other disaster there could lead to

adverse effects. Although the Group has given sufficient consideration to

disaster resistance at all Tokyo Disney Resort facilities, there is a possibility

that in the event of a disaster the damage caused to facilities and public

transportation and the likely drop in consumer confidence would lead to a

temporary decrease in the number of guests.

n Terrorism, Infectious Diseases or Similar Incidents

The OLC Group has numerous facilities where guests are present, and places

the highest priority on ensuring safety at each of them. However, in the event

of a terrorist attack or similar incident at a large-scale consumer-oriented

facility in Japan or overseas, or in the event of an outbreak of an infectious

disease for which no treatment is available, consumer confidence would

presumably decline. This would likely result in a temporary decrease in the

number of guests.

n Changes in the Economy

The results of the OLC Group’s principal business, Tokyo Disney Resort, have

been stable in the past even when economic conditions were unfavorable in

Japan. We therefore believe that Tokyo Disney Resort is not greatly affected

by the state of the economy. However, factors such as an unprecedented

recession could result in a temporary decrease in the number of guests.

n Regulatory Issues

The OLC Group is subject to various regulatory systems including safety

standards for attractions, quality standards for products and other items

provided to guests, environmental standards, accounting standards and tax

laws. Of note, the OLC Group maintains its own standards for safety and

quality that exceed those mandated by law. In the other areas, the OLC

Group promotes full compliance. However, the OLC Group would necessarily

have to comply with newly introduced or revised laws and regulations,

which could temporarily constrain some or all operations.

Share Repurchases during the period of the 2010 medium-term plan

Timing of acquisition

Number of shares acquiredTotal value of

shares acquired

June 20084.20 million shares(4.4% of total shares issued and outstanding)

¥24.4 billion

March 20104.50 million shares(4.9% of total shares issued and outstanding)

¥26.1 billion

March 20113.00 million shares(3.3% of total shares issued and outstanding)

¥21.1 billion

Total 11.70 million shares ¥71.6 billion






Financial Section

54 55

Consolidated Financial Statements

Millions of yenThousands of U.S. dollars1

’11/3 ’10/3 ’11/3

ASSETS

CURRENT ASSETS:

Cash and cash equivalents (Notes 2, 5 and 9) ¥ 35,387 ¥ 47,233 $ 425,580

Trade receivables (Notes 5 and 9) 9,050 16,943 108,839

Inventories (Note 3) 12,301 11,240 147,937

Deferred tax assets (Note 7) 5,961 6,915 71,690

Other current assets (Notes 5 and 9) 2,660 6,285 31,991

Total current assets 65,359 88,616 786,037

THEME PARKS, RESORTS AND OTHER PROPERTY, AT COST:

Attractions, buildings and equipment (Note 5) 885,782 877,560 10,652,820

Land (Note 5) 93,302 93,302 1,122,093

Construction in progress 13,548 5,430 162,934

992,632 976,292 11,937,847

Less accumulated depreciation (520,480) (488,421) (6,259,531)

Total theme parks, resorts and other property, at cost 472,152 487,871 5,678,316

INVESTMENTS AND OTHER ASSETS:

Investment securities (Notes 2, 5 and 9) 17,560 16,632 211,185

Other intangible assets 7,680 9,202 92,363

Deferred tax assets (Note 7) 4,030 2,452 48,467

Other assets (Note 9) 7,854 10,317 94,456

Total investments and other assets 37,124 38,603 446,471

Total non-current assets 509,276 526,474 6,124,787

Total assets ¥574,635 ¥615,090 $ 6,910,824

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.


’11/3 ’10/3 ’11/3

LIABILITIES

CURRENT LIABILITIES:

Trade payables (Note 9) ¥ 11,892 ¥ 14,059 $ 143,019

Short-term loans payable (Note 9) 10,000 − 120,265

Current portion of long-term debt (Notes 4, 5 and 9) 31,603 55,354 380,072

Accrued income taxes 9,380 8,273 112,808

Reserve for loss on disaster (Note 13) 3,398 − 40,866

Other current liabilities (Note 5) 40,708 44,573 489,573

Total current liabilities 106,981 122,259 1,286,603

NON-CURRENT LIABILITIES:

Long-term debt (Notes 4, 5 and 9) 101,334 117,935 1,218,689

Provision for retirement benefits (Note 6) 3,906 3,423 46,975

Other non-current liabilities 4,635 5,000 55,743

Total non-current liabilities 109,875 126,358 1,321,407

Total liabilities 216,856 248,617 2,608,010

COMMITMENTS AND CONTINGENT LIABILITIES (Note 10)

NET ASSETS

SHAREHOLDERS’ EQUITY: (Note 8)

Common stock:

Authorized—330,000,000 shares; 63,201 63,201 760,084

Issued—90,922,540 shares in 2011 90,922,540 shares in 2010

Additional paid-in capital 111,403 111,403 1,339,784

Retained earnings 232,323 218,921 2,794,022 Less cost of common stock in treasury, 7,506,574 shares in 2011 and 4,506,474 shares in 2010 (47,215) (26,094) (567,829)

Total shareholders’ equity 359,712 367,431 4,326,061

ACCUMULATED OTHER COMPREHENSIVE INCOME

Valuation difference on available-for-sale securities (1,178) (502) (14,167)

Deferred gains or losses on hedges (Note 9) (763) (474) (9,176)

Total accumulated other comprehensive income (1,941) (976) (23,343)

MINORITY INTERESTS 8 18 96

Total net assets 357,779 366,473 4,302,814

Total liabilities and net assets ¥574,635 ¥615,090 $6,910,824

Consolidated Balance SheetsAs of March 31, 2011 and 2010






Financial Section

56 57



’11/3 ’10/3 ’09/3 ’11/3

REVENUES ¥356,181 ¥371,415 ¥389,243 $4,283,596 COST OF REVENUES 255,089 272,530 286,151 3,067,817 Gross profit 101,092 98,885 103,092 1,215,779 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 47,428 56,961 62,996 570,391 Operating income 53,664 41,924 40,096 645,388 OTHER INCOME (EXPENSES): Interest and dividend income 439 330 521 5,280 Gain on sales of investment securities (Note 2) 1 − 93 12 Loss on sales of stocks of subsidiaries and affiliates − (2,135) − − Interest expenses (2,010) (2,202) (2,809) (24,173) Loss on retirement of non-current assets − (375) − − Loss on business restructuring − − (706) − Loss on valuation of investment securities (Note 2) (1,547) − (604) (18,605) Impairment loss (Note 11) (3,367) (238) (988) (40,493) Loss on adjustment for changes of accounting standard for asset retirement obligations (162) − − (1,948) Loss on disaster (Note 13) (9,727) − − (116,981) Equity in earnings of affiliates 37 52 35 445 Other, net 758 424 (797) 9,115

(15,578) (4,144) (5,255) (187,348) Income before income taxes 38,086 37,780 34,841 458,040 INCOME TAXES: (Note 7)

Current 15,052 12,437 15,341 181,022 Deferred 136 (83) 1,537 1,636 Total income taxes 15,188 12,354 16,878 182,658 Income before minority interests 22,898 − − 275,382

MINORITY INTERESTS IN LOSS (10) (1) (126) (120) Net income ¥ 22,908 ¥ 25,427 ¥ 18,089 $ 275,502

Yen U.S. dollars1

AMOUNTS PER SHARE: Net income ¥265.26 ¥280.17 ¥196.84 $3.19 Cash dividends 100.00 100.00 70.00 1.20

Millions of yen

Number of shares(Thousands)

Shareholders’ equity

’11/3 Capital stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity

Balance at March 31, 2010 90,923 ¥63,201 ¥111,403 ¥218,921 ¥(26,094) ¥367,431 Changes of items during the period Dividends from retained earnings (9,506) (9,506) Net income 22,908 22,908 Purchase of treasury stock (21,121) (21,121) Net changes of items other than shareholders’ equityTotal changes of items during the period ¥ − ¥ − ¥ 13,402 ¥(21,121) ¥ (7,719)Balance at March 31, 2011 90,923 ¥63,201 ¥111,403 ¥232,323 ¥(47,215) ¥359,712

Millions of yen

Accumulated other comprehensive income Minority interests Total net assets

’11/3Valuation difference on

available-for-sale securities Deferred gains or losses on hedges

Total accumulated other comprehensive income

Balance at March 31, 2010 ¥ (502) ¥(474) ¥ (976) ¥ 18 ¥366,473 Changes of items during the period Dividends from retained earnings (9,506) Net income 22,908 Purchase of treasury stock (21,121) Net changes of items other than shareholders’ equity (676) (289) (965) (10) (975)

Total changes of items during the period ¥ (676) ¥(289) ¥ (965) ¥(10) ¥ (8,694)Balance at March 31, 2011 ¥(1,178) ¥(763) ¥(1,941) ¥ 8 ¥357,779

Millions of yen




Balance at March 31, 2009 95,123 ¥63,201 ¥111,403 ¥225,212 ¥(24,464) ¥375,352 Changes of items during the period Dividends from retained earnings (7,273) (7,273) Net income 25,427 25,427 Purchase of treasury stock (26,075) (26,075) Retirement of treasury stock (4,200) (24,445) 24,445 − Net changes of items other than shareholders’ equityTotal changes of items during the period (4,200) ¥ − ¥ − ¥ (6,291) ¥ (1,630) ¥ (7,921)Balance at March 31, 2010 90,923 ¥63,201 ¥111,403 ¥218,921 ¥(26,094) ¥367,431

Millions of yen





Balance at March 31, 2009 ¥(1,404) ¥(307) ¥(1,711) ¥19 ¥373,660 Changes of items during the period Dividends from retained earnings (7,273) Net income 25,427 Purchase of treasury stock (26,075) Retirement of treasury stock − Net changes of items other than shareholders’ equity 902 (167) 735 (1) 734

Total changes of items during the period ¥ 902 ¥(167) ¥ 735 ¥ (1) ¥ (7,187)Balance at March 31, 2010 ¥ (502) ¥(474) ¥ (976) ¥18 ¥366,473


Consolidated Statements of IncomeYears Ended March 31, 2011, 2010 and 2009

Consolidated Statements of Comprehensive IncomeYears Ended March 31, 2011, 2010 and 2009

Consolidated Statements of Changes in Net Assets Years Ended March 31, 2011, 2010 and 2009


’11/3 ’10/3 ’09/3 ’11/3

INCOME BEFORE MINORITY INTERESTS ¥22,898 ¥− ¥− $275,382 OTHER COMPREHENSIVE INCOME − − Valuation difference on available-for-sale securities (676) − − (8,130) Deferred gains or losses on hedges (289) − − (3,475) Total other comprehensive income (Note 12) (965) − − (11,605) Comprehensive income (Note 12) 21,933 − − 263,777 (Comprehensive income attributable to) Comprehensive income attributable to owners of the parent 21,943 − − 263,897 Comprehensive income attributable to minority interests (10) − − (120)







Financial Section

58 59

Millions of yen




Balance at March 31, 2008 95,123 ¥63,201 ¥111,403 ¥212,704 ¥ (15) ¥387,293 Changes of items during the period Dividends from retained earnings (5,581) (5,581) Net income 18,089 18,089 Purchase of treasury stock (24,449) (24,449) Net changes of items other than shareholders’ equityTotal changes of items during the period − ¥ − ¥ − ¥ 12,508 ¥(24,449) ¥ (11,941)Balance at March 31, 2009 95,123 ¥63,201 ¥111,403 ¥225,212 ¥(24,464) ¥375,352

Millions of yen





Balance at March 31, 2008 ¥1,059 ¥(315) ¥ 744 ¥144 ¥388,181 Changes of items during the period Dividends from retained earnings (5,581) Net income 18,089 Purchase of treasury stock (24,449) Net changes of items other than shareholders’ equity (2,463) 8 (2,455) (125) (2,580)

Total changes of items during the period ¥(2,463) ¥ 8 ¥(2,455) ¥(125) ¥ (14,521)Balance at March 31, 2009 ¥(1,404) ¥(307) ¥(1,711) ¥ 19 ¥373,660

Thousands of U.S. dollars1




Balance at March 31, 2010 90,923 $760,084 $1,339,784 $2,632,844 $(313,818) $4,418,894 Changes of items during the period Dividends from retained earnings (114,324) (114,324) Net income 275,502 275,502 Purchase of treasury stock (254,011) (254,011) Net changes of items other than shareholders’ equityTotal changes of items during the period − − − $ 161,178 $(254,011) $ (92,833)Balance at March 31, 2011 90,923 $760,084 $1,339,784 $2,794,022 $(567,829) $4,326,061

Thousands of U.S. dollars1





Balance at March 31, 2010 $ (6,037) $(5,701) $(11,738) $ 216 $4,407,372 Changes of items during the period Dividends from retained earnings (114,324) Net income 275,502 Purchase of treasury stock (254,011) Net changes of items other than shareholders’ equity (8,130) (3,475) (11,605) (120) (11,725)

Total changes of items during the period $ (8,130) $(3,475) $(11,605) $(120) $ (104,558)Balance at March 31, 2011 $(14,167) $(9,176) $(23,343) $ 96 $4,302,814



’11/3 ’10/3 ’09/3 ’11/3

CASH FLOWS FROM OPERATING ACTIVITIES Income before income taxes ¥ 38,086 ¥ 37,780 ¥ 34,841 $ 458,040 Adjustments to reconcile income before income taxes to net cash provided by operating activities: Depreciation and amortization, aggregate 42,287 46,695 49,733 508,563 Impairment loss of fixed assets 3,367 238 988 40,493 Amortization of goodwill − − 1,909 − Increase in estimated termination and retirement and other allowances 3,878 538 316 46,639 Interest and dividends income (439) (330) (521) (5,280) Interest expenses 2,010 2,202 2,809 24,173 Exchange gain (12) (26) (0) (144) Gain on sales of investment securities (1) − (93) (12) Loss on sales of stocks of subsidiaries and affiliates − 2,135 − − Impairment loss on investment securities 1,547 − 604 18,605 Equity in earning of affiliates (37) (52) (35) (445) Decrease (increase) in trade receivables 7,464 (720) (2,641) 89,765 Decrease (increase) in inventories (1,061) (1,506) (117) (12,760) Increase (decrease) in trade payables (4,708) (1,768) (923) (56,621) Increase (decrease) in accrued consumption taxes (1,937) 1,577 344 (23,295) Other, net (410) 2,709 4,533 (4,931) Subtotal 90,034 89,472 91,747 1,082,790 Interest and dividends received 437 344 735 5,256 Interest paid (2,081) (2,345) (4,075) (25,027) Income taxes paid (14,062) (15,377) (10,285) (169,116) Net cash provided by operating activities 74,328 72,094 78,122 893,903 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from maturity of marketable securities 10 726 41,979 120 Acquisition of property (25,102) (17,055) (40,924) (301,888) Addition to investment securities (3,500) (303) (1,206) (42,093) Proceeds from sales of investment securities 9 10 357 109 Addition of time deposits included in other current assets (8,000) (19,000) − (96,212) Proceeds from maturity of time deposits included in other current assets 12,000 15,000 4,000 144,317 Collection of loans receivable 522 2 2 6,278 Payments for sales of investments in subsidiaries resulting in change in scope of consolidation − (1,268) − − Other, net (1,157) (838) 1,544 (13,914) Net cash provided by (used in) investing activities (25,218) (22,726) 5,752 (303,283)CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term loans payable 10,000 − − 120,265 Proceeds from long-term debt 15,000 12,370 − 180,397 Repayment of long-term debt (55,355) (32,104) (101,304) (665,725) Dividends paid (9,486) (7,258) (5,596) (114,083) Purchase of treasury stock (21,121) (26,076) (24,448) (254,011) Other, net (9) (13) 489 (108) Net cash used in (provided by) financing activities (60,971) (53,081) (130,859) (733,265)Effect of exchange rate changes on cash and cash equivalents 15 26 3 180

Net decrease (increase) in cash and cash equivalents (11,846) (3,687) (46,982) (142,465)Cash and cash equivalents at beginning of period 47,233 50,920 97,902 568,045 Cash and cash equivalents at end of period ¥ 35,387 ¥ 47,233 ¥ 50,920 $ 425,580



Consolidated Statements of Cash FlowsYears Ended March 31, 2011, 2010 and 2009






Financial Section

60 61

Notes to Consolidated Financial Statements

A BASIS OF PRESENTING CONSOLIDATED FINANCIAL

STATEMENTSThe accompanying consolidated financial statements have been prepared in

accordance with the provisions set forth in the Japanese Financial Instru-

ments and Exchange Law and its related accounting regulations, and in

conformity with accounting principles generally accepted in Japan

(“Japanese GAAP”), which are different in certain respects as to application

and disclosure requirements from the International Financial Reporting

Standards.

The accompanying consolidated financial statements have been restruc-

tured and translated into English (with some expanded descriptions) from

the consolidated financial statements of Oriental Land Co., Ltd. (“the

Company”) prepared in accordance with Japanese GAAP and filed with the

appropriate Local Finance Bureau of the Ministry of Finance as required by

the Financial Instruments and Exchange Law. Some supplementary informa-

tion included in the statutory Japanese language consolidated financial

statements, but not required for fair presentation, is not presented in the

accompanying consolidated financial statements.

The translation of the Japanese yen amounts into U.S. dollars is included

solely for the convenience of readers outside Japan, using the prevailing

exchange rate at March 31, 2011, which was ¥83.15 to U.S. $1. The conve-

nience translations should not be construed as representations that the

Japanese yen amounts have been, could have been, or could in the future

be, converted into U.S. dollars at this or any other rate of exchange.

Certain reclassifications have been made to the 2010 and 2009 consoli-

dated financial statements to conform to the classifications used in 2011.

B PRINCIPLES OF CONSOLIDATIONThe consolidated financial statements include the accounts of the Company

and all of its subsidiaries (“the Companies”). Material inter-company balances,

transactions and profits have been eliminated in consolidation. In the elimi-

nation of investments in subsidiaries, the assets and liabilities of the subsid-

iaries, including the portion attributable to minority stockholders, are

evaluated using the fair value at the time the Company acquired control of

the respective subsidiaries. Consolidation goodwill, the excess of acquisition

cost over net assets, is amortized mainly over a period of 20 years on a

straight-line basis. The number of consolidated subsidiaries was 13, 14 and 18

in 2011, 2010 and 2009, respectively.

Investments in 20-50%-owned affiliates are accounted for by the equity

method and are included in investment securities in the accompanying

consolidated balance sheets. The number of companies accounted for under

the equity method was 3, 3 and 4 in 2011, 2010 and 2009, respectively.

C FOREIGN CURRENCY TRANSLATIONReceivables and payables denominated in foreign currencies are translated

into Japanese yen at the exchange rates prevailing on the balance sheet

date. Gains and losses resulting from the translation are charged to income.

D CASH AND CASH EQUIVALENTSIn preparing the consolidated statements of cash flows, cash on hand, readily

available deposits and short-term highly liquid investments with negligible

risk of changes in value and maturities not exceeding three months at the

time of purchase are considered to be cash and cash equivalents.

E MARKETABLE SECURITIES AND INVESTMENT SECURITIESMarketable securities and investment securities are classified as (a) securities

held for trading purposes (hereafter, “trading securities”), (b) debt securities

intended to be held to maturity (hereafter, “held-to-maturity-debt securi-

ties”), (c) equity securities issued by subsidiaries and affiliate companies, or (d)

all other securities that are not classified in any of the above categories

(hereafter, “available-for-sale securities”). The Companies do not have trading

securities and held-to-maturity-debt securities.

Available-for-sale securities with available fair market value are stated at

fair market value as of the balance sheet date. Unrealized gains or losses on

these securities are reported, net of applicable income taxes, as a separate

component of net assets. Realized gains and losses on sales of such securities

are computed using the moving-average method. Available-for-sale securi-

ties without fair market value are stated at the moving-average cost.

If the market value of available-for-sale securities declines significantly,

such securities are restated at fair market value and the difference between

fair market value and the carrying amount is recognized as loss in the period

of the decline. For the available-for-sale securities without fair market value, if

the net asset value declines significantly, such securities are restated to net

asset value with the corresponding losses recognized in the period of

decline. In these cases, such fair market value or the net asset value will be

the carrying amount of the securities at the beginning of the next year.

F INVENTORIESConsumer products, materials for food, beverages and supplies are primarily

stated at the lower of cost or market using the moving-average method.

(Change in accounting policy)

Effective from the year ended March 31, 2009, the Companies adopted the

new accounting standard for Measurement of Inventories (Statement No.9

issued by the Accounting Standards Board of Japan “ASBJ” on July 5, 2006).

This standard requires that inventories held for sale in the ordinary course

of business be measured at the lower of cost or net selling value, which is

defined as the selling price less additional estimated manufacturing costs

and estimated direct selling expenses. The replacement cost may be used in

place of the net selling value, if appropriate.

As a result, inventories as of March 31, 2009 decreased by ¥53 million and

operating income and income before income taxes decreased by the same

amount, respectively.

Effective from the fiscal year ended March 31, 2009, the Companies

changed the main accounting policy for determining cost of inventory

valuation of consumer products at stores, from the retail method to the

moving-average method. The purpose is to have more accurate cost of

1. SIGNIFICANT ACCOUNTING AND REPORTING POLICIES inventory and calculation of profits and losses for each financial period.

As a result, operating income and income before income taxes increased by

¥12 million, respectively.

G THEME PARKS, RESORTS AND OTHER PROPERTYDepreciation on property of Tokyo Disneyland and others are computed

primarily using the declining-balance method. Depreciation on property of

Tokyo DisneySea and others and buildings acquired after April 1, 1998 is

computed using the straight-line method.

Ordinary maintenance and repairs are charged to income as incurred.

Major replacements and betterments are capitalized. When property is

retired or otherwise disposed of, the property and accumulated depreciation

accounts related to it are relieved of the applicable amounts and any differ-

ences are included in maintenance costs for theme parks, resorts and other

property, except for the extraordinary nature of disposal of property which is

included in other expenses.

(Additional information)

Following the revisions to the corporation tax law in fiscal 2008, the Compa-

nies changed the useful life of machinery by the revised corporation tax law

from the year ended March 31, 2009.

As a result, for the year ended March 31, 2009, operating income and

income before income taxes decreased by ¥49 million, respectively.

H SOFTWAREAmortization of the software for internal use included in other intangible

assets is computed by the straight-line method over the estimated useful

lives (five years).

I DEVELOPMENT EXPENSESExpenses relating to development activities are charged to income

as incurred.

J PROVISION FOR RETIREMENT BENEFITSThe Companies provide allowances for employees’ severance and retirement

benefits at the balance sheet date based on the estimated amounts of

projected benefit obligation and the fair value of the plan assets at that date.

The net transition obligation incurred effective April 1, 2000 due to the

adoption of new accounting standards (¥4,573 million) has been recognized

in expenses in equal amounts over 15 years. Unrecognized actuarial net gains

or losses are amortized mainly over 15 years on a straight-line basis

commencing from the succeeding period, and unrecognized prior service

cost is amortized mainly over 15 years on a straight-line basis.

The Company and certain consolidated subsidiaries have defined the

cash-balance type of defined benefit pension plans.

(Change in accounting policy)


“Partial Amendments to Accounting Standard for Retirement Benefits (Part

3)” (Statement No. 19 issued by the ASBJ on July 31, 2008).

However, in accordance with this standard, if the difference between the

discount rate currently in use and the interest rates of applicable bonds at the

end of the fiscal year is within a certain range, it is not necessary to adjust the

discount rate.

Therefore, in the year ended March 31, 2010, the discount rate remained

unchanged and there was no impact on operating income and income

before income taxes after the adoption of this standard.

K INCOME TAXESThe provision for income taxes is computed based on the pretax income

included in the Consolidated Statements of Income. The asset and liability

approach is used to recognize deferred tax assets and liabilities for the

expected future tax consequences of temporary differences between the

carrying amounts of assets and liabilities for financial reporting purposes and

the amounts used for income tax purposes.

L PER SHARE DATADividends per share shown in the Consolidated Statements of Income have

been presented on an accrual basis and include, in each fiscal period,

dividends approved after each balance sheet date, but applicable to the

fiscal period then ended. Net income per share is based on the weighted

average number of shares of common stock.

M USE OF ESTIMATESIn preparing financial statements, generally accepted accounting principles

require management to make estimates and assumptions that affect the

reported amounts of assets and liabilities and disclosures of contingent liabil-

ities at the date of the financial statements and the reported amounts of

revenue and expenses during the reporting period. Actual results could differ

from those estimates.

N LEASESEffective from the year ended March 31, 2009, the Companies adopted the

new accounting standard for Lease Transactions(Statement No.13 issued by

the ASBJ on March 30, 2007), which revised the accounting standard for lease

transactions issued on June 17, 1993.

Prior to April 1, 2008, finance leases that deem to transfer ownership of the

leased property to the lessee are to be capitalized, however, other finance

leases are permitted to be accounted for as operating lease transactions if

certain “as if capitalized” information is disclosed in the note to the lessee’s

financial statements.

The revised accounting standard requires that all finance lease transac-

tions should be capitalized.

The effect on this change of accounting standard was immaterial.






Financial Section

62 63

The following tables summarize book values, acquisition costs, and differences of available-for-sale securities with available fair value as of March 31, 2011 and 2010:

Securities with book value exceeding acquisition costMillions of yen Thousands of U.S. dollars

’11/3 ’10/3 ’11/3

Type Book Value Acquisition Cost Difference Book Value Acquisition Cost Difference Book Value Acquisition Cost Difference

Equity securities ¥4,903 ¥4,282 ¥621 ¥4,728 ¥3,459 ¥1,269 $58,966 $51,497 $7,469 Bonds 730 712 18 737 713 24 8,779 8,563 216Others − − − − − − − − − Total ¥5,633 ¥4,994 ¥639 ¥5,465 ¥4,172 ¥1,293 $67,745 $60,060 $7,685

Securities with book value not exceeding acquisition costMillions of yen Thousands of U.S. dollars

’11/3 ’10/3 ’11/3

Type Book Value Acquisition Cost Difference Book Value Acquisition Cost Difference Book Value Acquisition Cost Difference

Equity securities ¥9,406 ¥12,023 ¥(2,617) ¥8,672 ¥10,809 ¥(2,137) $113,121 $144,594 $(31,473)Bonds − − − − − − − − −Others 9,500 9,500 − 17,000 17,000 − 114,251 114,251 − Total ¥18,906 ¥21,523 ¥(2,617) ¥25,672 ¥27,809 ¥(2,137) $227,372 $258,845 $(31,473)

Non-listed equity securities and others (total amount of ¥767 million (US$9,224 thousand) and ¥767million at March 31, 2011 and 2010 respectively.) are not

included in the above table, as they have no market value and their fair value is not readily determinable.

Total sales amounts of available-for-sales securities sold in the years ended March 31, 2011 and 2010 are indicated below.

Millions of yenThousands of

U.S. dollars

’11/3 ’10/3 ’11/3

Equity Securities Total sales amount ¥ 9 ¥− $108 Total gains on sales 1 − 12 Total losses on sales − − −

In the year ended March 31, 2011, an impairment loss of ¥1,547 million (US$18,605 thousand) was recorded on the value of investment securities (available-

for-sale securities). Investments in affiliated companies accounted for by the equity method amounted to ¥1,754 million (US$21,094 thousand) and ¥1,728

million at March 31, 2011 and 2010 respectively.

2. MARKETABLE SECURITIES AND INVESTMENT SECURITIES

3. INVENTORIES

Inventories at March 31, 2011 and 2010 are summarized as follows:


U.S. dollars

’11/3 ’10/3 ’11/3

Merchandise and Finished Goods ¥ 8,258 ¥ 7,378 $ 99,315

Work in Process 132 143 1,587

Raw materials and supplies 3,911 3,719 47,035

Total ¥12,301 ¥11,240 $147,937

4. LONG-TERM DEBT

Long-term debt as of March 31, 2011 and 2010 are summarized as follows:


U.S. dollars

’11/3 ’10/3 ’11/3

Bonds

1.86%, unsecured straight bonds, payable in yen, due March 2016 ¥ 29,996 ¥ 29,995 $ 360,745

1.29%, unsecured straight bonds, payable in yen, due March 2011 − 19,998 −

1.31%, unsecured straight bonds, payable in yen, due January 2015 9,997 9,997 120,229

1.70%, unsecured straight bonds, payable in yen, due January 2018 20,000 20,000 240,529

Subtotal 59,993 79,990 721,503

Loans

Unsecured bank loans due 2010 through 2030 at the average interest rate of 0.88% 22,319 25,370 268,418

Unsecured loans from life insurance companies due 2012 at the average interest rate of 1.07%

5,200 5,200 62,538

Unsecured syndicate loans due 2010 through 2013 at the average interest rate of 0.52% 35,000 51,000 420,926

Subtotal 62,519 81,570 751,882

Payable

Secured other long-term payable 2.15%, due 2019 10,389 11,687 124,943

Unsecured other long-term payable 4.18%, due 2018 36 42 433

Subtotal 10,425 11,729 125,376

Total 132,937 173,289 1,598,761

Less current portion included in current liabilities (31,603) (55,354) (380,072)

Grand total ¥101,334 ¥117,935 $1,218,689

The average interest rates shown above are weighted according to the loan balances at the end of the year ended March 31, 2011.


O ASSET RETIREMENT OBLIGATIONSEffective from the year ended March 31, 2011, the Companies adopted the

“Accounting Standards for Asset Retirement Obligations” (Statement No. 18

issued by the ASBJ on March 31, 2008) and the “Guidance on Accounting

Standards for Asset Retirement Obligations” (Guidance No. 21 issued by the

ASBJ on March 31, 2008).

As a result, for the year ended March 31, 2011, operating income decreased

by ¥14 million (US$ 168 thousand), as well as income before income taxes

decreased by ¥176 million (US$ 2,117 thousand).

P CHANGES IN PRESENTATION(Consolidated Statements of Income)


“Accounting Standard for Consolidated Financial Statements” (Statement No.

22 issued by the ASBJ on December 26, 2008) and implemented the

measures outlined in the “Cabinet Office Order to Revise the Ordinance on

Terminology, Forms, and Preparation Methods of Financial Statements”

(Order 5 issued by the Cabinet Office on March 24, 2009). Accordingly,

income before minority interests has been included as a new item.

Q ADDITIONAL INFORMATIONEffective from the year ended March 31, 2011, the Companies adopted the

“Accounting Standard for Presentation of Comprehensive Income” (Statement

No. 25 issued by the ASBJ on June 30, 2010). The values for “accumulated

other comprehensive income” and “total accumulated other comprehensive

income” in the year ended March 31, 2010, and the year ended March 31,

2009, are the values for “accumulated gains (losses) from valuation and

translation adjustments” and “total accumulated gains (losses) from valuation

and translation adjustments,” respectively.

The aggregate annual maturities of long-term debt subsequent to March 31, 2011, are summarized as follows:


U.S. dollars

Year ending March 31,

2012 ¥ 31,603 $ 380,072

2013 16,405 197,294

2014 16,407 197,318

2015 11,407 137,186

2016 31,407 377,715

Thereafter 25,708 309,176

Total ¥132,937 $1,598,761






Financial Section

64 65

Included in the consolidated statement of income for the years ended March 31, 2011, 2010 and 2009 are severance and retirement benefit expenses

comprised of the following:


U.S. dollars

’11/3 ’10/3 ’09/3 ’11/3

Service costs-benefits earned during the year ¥1,353 ¥1,387 ¥1,397 $16,271

Interest cost on projected benefit obligation 486 463 451 5,845

Expected return on plan assets (465) (413) (488) (5,592)

Amortization of prior service costs 31 31 31 373

Amortization of actuarial differences 182 235 146 2,189

Amortization net transition obligation 305 305 305 3,668

Special termination benefit 13 95 20 156

Severance and retirement benefit expenses ¥1,905 ¥2,103 ¥1,862 $22,910

5. PLEDGED ASSETS

The net carrying value of pledged assets at March 31, 2011 and 2010 is as follows:


U.S. dollars

’11/3 ’10/3 ’11/3

Cash and cash equivalents ¥ 161 ¥ − $ 1,936

Trade receivables 15 − 180

Buildings 31,414 33,029 377,799

Land 2,655 2,655 31,930

Investment securities 730 736 8,780

Others − 10 −

Total ¥34,975 ¥36,430 $420,625

Cash and cash equivalents, trade receivables, buildings and land are pledged to secure other long-term payable (¥12,708 million (US$ 152,832 thousand) and

¥11,687 million at March 31, 2011 and 2010, respectively). Investment securities and others are pledged to advances received of gift certificates (¥353 million

(US$ 4,245 thousand) and ¥359 million at March 31, 2011 and 2010, respectively).

6. PROVISION FOR RETIREMENT BENEFITS

Provision for retirement benefits included in the liability section of the consolidated balance sheets as of March 31, 2011 and 2010 consist of the following:


U.S. dollars

’11/3 ’10/3 ’11/3

Projected benefit obligation ¥ 26,361 ¥ 24,923 $ 317,029

Less fair value of pension assets (18,487) (17,889) (222,333)

Funded status 7,874 7,034 94,696

Unrecognized net transition obligation (1,219) (1,524) (14,660)

Unrecognized actuarial differences (2,478) (1,785) (29,802)

Unrecognized prior service cost (271) (302) (3,259)

Liability for severance and retirement benefits, net 3,906 3,423 46,975

Prepaid pension cost − − −

Liability for severance and retirement benefits ¥ 3,906 ¥ 3,423 $ 46,975

7. INCOME TAXES

The Companies are subject to corporation, enterprise and inhabitants’ taxes, which resulted in an aggregate normal effective tax rates of approximately 40.4%

for the years ended March 31, 2011, 2010 and 2009.

The following table summarizes the significant differences between the statutory tax rate and the Companies’ effective tax rate for financial statement

purposes for the years ended March 31, 2010 and 2009. The differences for the year ended March 31, 2011 are not shown because they were not significant.

’10/3 ’09/3

Statutory tax rate 40.4 % Statutory tax rate 40.4 %Decrease in valuation allowance (8.2) Increase in valuation allowance 7.0 Non-deductible expenses 0.5 Amortization of goodwill 2.2 Others 0.0 Others (1.2)Effective tax rate 32.7 % Effective tax rate 48.4 %

Significant components of the Companies’ deferred tax assets and liabilities as of March 31, 2011 and 2010 are as follows:


U.S. dollars

’11/3 ’10/3 ’11/3

Deferred tax assets:

Excess bonuses accrued ¥ 2,291 ¥ 2,983 $ 27,553

Loss from impairment of investment securities 1,876 1,283 22,562

Impairment loss of fixed assets 1,832 801 22,032

Reserve for loss on disaster 1,662 − 19,988

Provision for retirement benefits 1,577 1,367 18,966

Valuation difference on available-for-sale securities 809 − 9,729

Revenue of advanced sold admission tickets on a cash basis − 2,886 −

Tax loss carry-forwards of subsidiaries − 1,092 −

Others 3,411 2,336 41,022

Total deferred tax assets 13,458 12,748 161,852

Valuation allowance (3,226) (3,339) (38,797)

Net deferred tax assets 10,232 9,409 123,055

Deferred tax liabilities:

Net unrecognized holding gains on securities − (42) −

Others (344) − (4,137)

Net deferred tax assets ¥ 9,888 ¥ 9,367 $118,918


’11/3 ’10/3 ’09/3

Discount rate mainly 2.0% mainly 2.0% mainly 2.0%

Rate of expected return on plan assets 2.6% 2.6% 3.0%

The estimated amount of all retirement benefits to be paid at the future retirement date is allocated equally to each service year using the estimated number

of total service years.






Financial Section

66 67

9. FINANCIAL INSTRUMENTS

A POLICIES ON THE USE OF FINANCIAL INSTRUMENTSThe Companies raise the funds needed to implement capital investment

plans through loans from banks and other institutions and by issuing corpo-

rate bonds. The Companies limit their investment of temporary surpluses to

deposits and highly liquid financial assets such as bank deposits.

The Companies employ derivative financial instruments only as needed to

limit the scope of actual settlement and does not undertake speculative

transactions for the purpose of generating trading profits.

B FINANCIAL INSTRUMENT CONTENT AND RISKSTrade-notes and accounts receivable, involve credit risk on the part of

customers and business partners.

Investment securities, which are mainly equity securities, involve market risk.

Currency swap contracts and interest rate swap contracts are used to

mitigate risks arising from foreign currency rate fluctuations on transactions

denominated in foreign currencies and from interest rate fluctuations on

interest payment related to loans and ponds, respectively.

The Companies evaluate hedge effectiveness by comparing the cumula-

tive changes in cash flows from or the changes in fair value of hedged items

to the corresponding changes in the hedging derivative instruments.

C FINANCIAL INSTRUMENT RISK MANAGEMENT (a) Management of credit risk (the risk that a business partner will default on

its transactional obligations)

The Companies employ accounts receivable management regulations to

reduce the risks related to trade-notes and accounts receivable, which are

collected within one year.

As the Companies’ transaction partners on derivative financial instruments

are limited to prominent international financial institutions, credit risk related

to breach of contract is judged to be immaterial.

(b) Management of market risk (the risk of foreign exchange and interest

rate fluctuations)

The Companies have entered into currency swap contracts in order to

hedge resulting from fluctuations in foreign currency exchange rates on

transactions denominated in foreign currencies. The Companies have also

entered into interest rate swap contracts in order to mitigate exposures

resulting from interest rate fluctuations on interest payments related to

loans and bonds.

The fair value of investment securities in listed companies is determined

on a quarterly basis.

The Companies have formulated operational handling procedures

pertaining to the execution and management of derivative financial trans-

actions. Departments handling such transactions are managed closely, and

a system is in place to ensure an effective internal control function.

D SUPPLEMENTARY EXPLANATION REGARDING THE FAIR

VALUE OF FINANCIAL INSTRUMENTSWith regard to the fair value of financial instruments, in addition to basing

fair value on market value, the fair value of financial instruments that have

no available market value is determined by using a rational method of calcu-

lation. However, as variables are inherent in these value calculations, the

resulting values may differ if different assumptions are used. Also, market

risk related to derivative financial instruments is not included within the

contract amounts of derivative financial instruments.

E MATTERS RELATED TO THE FAIR VALUE OF FINANCIAL

INSTRUMENTS(Year ended March 31, 2011)

The following table summarizes book value, fair value and difference on

financial instruments excluding financial instruments without fair value, as

of March 31, 2011:

Method of calculating the fair value of financial instruments and matters related to derivativesAssets(1) Cash and deposits, (2) marketable securities, and (3) notes and accounts receivable As these instruments are settled within a short term and their fair values and book values are nearly identical, their book values are assumed as their fair values.(4) Investment securities The fair values of equity securities are determined by their prices on stock exchanges.(5) Long-term loans receivable For long-term loans receivable, fair value is determined by discounting the total amount of principal and interest with the assumed interest rate on new borrowings of the same type.Liabilities(1) Notes and accounts payable–trade, (2) short-term loans payable, and (3) current portion of long-term loans payable As these instruments are settled within a short term and their fair values and book values are nearly identical, their book values are assumed as their fair values.(4) Bonds payables The fair value of corporate bonds is determined based on market prices.(5) Long-term loans payable For long-term loans payable, fair value is determined by discounting the total amount of principal and interest with the assumed interest rate on new loans of the same type. However, for loans

with floating interest rates that do not employ interest rate swaps, as interest rates are revised in set increments as conditions dictate and their fair values and book values are nearly identical, the book values are assumed as their fair values.

Financial derivative transaction(1) Transactions on which hedge accounting is not employed None applicable(2) Derivative financial instruments employing hedge accounting. Currency related


U.S. dollars

Hedge accounting method Transaction type Main items hedged Contract amounts Over 1 year Fair value Contract amounts Over 1 year Fair value

Exchange forward contracts and other deferral hedge accounting

Currency swap contracts, U.S. dollars

Accounts payable, other payables, long-term accounts payable

¥7,526 ¥3,479 ¥(1,325) $90,511 $41,840 $(15,935)

Total ¥7,526 ¥3,479 ¥(1,325) $90,511 $41,840 $(15,935)

“Note: Fair value calculation methodFair value is calculated at the rates indicated by the financial institutions handling these transactions for the Companies.”

Financial instruments of which fair value is not readily determinable


U.S. dollars

Non-listed equity securities ¥2,261 $27,192 Investment 260 3,127

These instruments are not included within “(4) investment securities”, as they have no market value, and their fair value is not readily determinable.


Millions of yen Thousands of U.S. dollars

’11/3 ’11/3

Book value Fair value Difference Book value Fair value Difference

Cash and cash equivalents (1) Cash and deposits (maturing within 3 months) ¥ 25,887 ¥ 25,887 ¥ − $ 311,329 $ 311,329 $ − (2) Marketable securities (maturing within 3 months) 9,500 9,500 − 114,251 114,251 −Trade receivables (3) Notes and accounts receivable 9,050 9,050 − 108,839 108,839 −Investment securities (4) Investment securities 15,039 15,039 − 180,866 180,866 −Other assets (5) Long-term loans receivable 1,048 1,048 − 12,604 12,604 −Total assets ¥ 60,524 ¥ 60,524 ¥ − $ 727,889 $ 727,889 $ −Trade payables (1) Notes and accounts payable–trade ¥ 11,892 ¥ 11,892 ¥ − $ 143,019 $143,019 $ −Short-term debt (2) Short-term loans payable 10,000 10,000 − 120,265 120,265 −Current portion of long-term debt (3) Current portion of long-term loans payable 30,299 30,299 − 364,390 364,390 −Long-term debt (4) Bonds payables 59,993 62,679 2,686 721,503 753,806 32,303 (5) Long-term loans payable 32,220 32,341 121 387,492 388,947 1,455Total liabilities ¥144,404 ¥147,211 ¥2,807 $1,736,669 $1,770,427 $33,758 Financial derivative transaction* ¥ (1,325) ¥ (1,325) ¥ − $ (15,935) $ (15,935) $ −

* Stated values are the net amounts of receivables and payables arising from derivative financial transactions. Figures in parentheses are negative.

8. SHAREHOLDERS’ EQUITY

Net assets comprise three subsections, which are shareholders’ equity,

accumulated other comprehensive income, and minority interests.

Under Japanese laws and regulations, the entire amount paid for new

shares is required to be designated as common stock. However, a company

may, by a resolution of the board of directors, designate an amount not

exceeding one-half of the price of the new shares as additional paid-in

capital which is included in capital surplus.

In cases where dividend distribution of surplus is made, the lesser of an

amount equal to 10% of the dividend or the excess, if any, of 25% of common

stock over the total of additional paid-in capital and legal reserve must be set

aside as additional paid-in capital or legal reserve. Legal reserve is included

in retained earnings in the accompanying consolidated balance sheets.

Both appropriations of legal reserve and additional paid-in capital used to

eliminate or reduce a deficit generally require a resolution of the stock-

holders’ meeting.

Additional paid-in capital and legal reserve may not be distributed as

dividends .All additional paid-in capital and legal reserve may be transferred

to other capital surplus and retained earnings, respectively, which are poten-

tially available for dividends.

The maximum amount that the Company can distribute as dividends is

calculated based on the non-consolidated financial statements of the

Company in accordance with Japanese laws and regulations.

At the annual stockholders’ meeting held on June 29, 2011, the stock-

holders resolved to pay cash dividends amounting to ¥4,171 million (US$

50,162 thousand). Such appropriations have not been accrued in the

consolidated financial statements as of March 31, 2011. Such appropriations

will be recognized in the period when they are resolved.






Financial Section

68 69

Monetary assets and liabilities and the expected maturity values of marketable securities with maturities after the balance sheet dateMillions of yen

’11/3

Type Within one year Over one year but within five years

Over five years but within ten years Over Ten years

Cash and deposits ¥ 500 ¥ − ¥ − ¥−Notes and accounts receivable 9,050 − − −Marketable securities and investment securities Maturities of available-for-sale securities Government bonds − 710 − − Other 9,500 − 260 − Long-term loans receivable 410 637 1 0 Total ¥19,460 ¥1,347 ¥261 ¥ 0

Thousands of U.S. dollars

’11/3



Cash and deposits $ 6,013 $ − $ − $ −Notes and accounts receivable 108,839 − − −Marketable securities and investment securities Maturities of available-for-sale securities Government bonds − 8,539 − − Other 114,252 − 3,127 − Long-term loans receivable 4,931 7,661 12 0 Total $234,035 $16,200 $3,139 $ 0

For information on the expected maturity values after the balance sheet date of corporate bonds and long-term loans payable, see “long-term debt” in Note 4.

(Year ended March 31, 2010)

The following table summarizes book value, fair value and difference on financial instruments excluding financial instruments without fair value, as of March 31,

2010:

Millions of yen

’10/3

Book value Fair value Difference

Cash and cash equivalents (1) Cash and deposits(maturing within 3 months) ¥ 30,233 ¥ 30,233 ¥ − (2) Marketable securities (maturing within 3 months) 17,000 17,000 −Trade receivables (3) Notes and accounts receivable 16,943 16,943 −Other current assets (4) Cash and deposits (maturing after 3 months) 4,000 4,000 −Investment securities (5) Investment securities 14,137 14,137 −Other assets (6) Long-term loans receivable 1,570 1,570 −Total assets ¥ 83,883 ¥ 83,883 ¥ −Trade payables (1) Notes and accounts payable–trade ¥ 14,059 ¥ 14,059 ¥ −Current portion of long-term debt (2) Current portion of bonds 19,999 19,999 − (3) Current portion of long-term loans payable 34,051 34,051 −Long-term debt (4) Bonds payables 59,991 62,438 2,447 (5) Long-term loans payable 47,519 47,764 245Total liabilities ¥175,619 ¥178,311 ¥2,692Financial derivative transaction* ¥ (815) ¥ (815) ¥ −

* Stated values are the net amounts of receivables and payables arising from derivative financial transactions. Figures in parentheses are negative.

Method of calculating the fair value of financial instruments and matters related to derivativesAssets(1) Cash and deposits, (2) marketable securities, (3) notes and accounts receivable and (4) cash and deposits As these instruments are settled within a short term and their fair values and book values are nearly identical, their book values are assumed as their fair values.(5) Investment securities The fair values of equity securities are determined by their prices on stock exchanges.(6) Long-term loans receivable For long-term loans receivable, fair value is determined by discounting the total amount of principal and interest with the assumed interest rate on new borrowings of the same type.Liabilities(1) Notes and accounts payable–trade, (2) current portion of bonds, and (3) current portion of long-term loans payable As these instruments are settled within a short term and their fair values and book values are nearly identical, their book values are assumed as their fair values.(4) Bonds payables The fair value of corporate bonds is determined based on market prices.(5) Long-term loans payable For long-term loans payable, fair value is determined by discounting the total amount of principal and interest with the assumed interest rate on new loans of the same type. However, for loans

with floating interest rates that do not employ interest rate swaps, as interest rates are revised in set increments as conditions dictate and their fair values and book values are nearly identical, the book values are assumed as their fair values.

Financial derivative transaction(1) Transactions on which hedge accounting is not employed None applicable(2) Derivative financial instruments employing hedge accounting. Currency related

Millions of yen

Hedge accounting method Transaction type Main items hedged Contract amounts Over 1 year Fair value

Exchange forward contracts and other deferral hedge accounting

Currency swap contracts, U.S. dollars

Accounts payable, other payables, long-term accounts payable

¥11,596 ¥9,738 ¥(815)

Total ¥11,596 ¥9,738 ¥(815)

Note: Fair value calculation methodFair value is calculated at the rates indicated by the financial institutions handling these transactions for the Companies.

Financial instruments of which fair value is not readily determinableMillions of yen

Non-listed equity securities ¥2,235 Investment 260

These instruments are not included within “(5) investment securities”, as they have no market value, and their fair value is not readily determinable.

Monetary assets and liabilities and the expected maturity values of marketable securities with maturities after the balance sheet dateMillions of yen

’10/3



Cash and deposits ¥34,233 ¥ − ¥ − ¥−Notes and accounts receivable 16,943 − − −Marketable securities and investment securities Maturities of available-for-sale securities Government bonds − 736 − − Corporate bonds − − − − Other 17,000 − 260 − Long-term loans receivable 520 859 190 1Total ¥68,696 ¥1,595 ¥450 ¥1


"For information on the expected maturity values after the balance sheet date of corporate bonds and long-term loans payable, see “long-term debt” in Note 4.

(Additional Information)

Effective from the year ended March 31, 2010, the Companies adopted the “Accounting Standard for Financial Instruments” (Statement No. 10 issued by the ASBJ

on March 10, 2008) and the “Guidance on Disclosures about Fair Value of Financial Instruments” (Guidance No. 19 issued by the ASBJ on March 10, 2008)."






Financial Section

70 71


10. COMMITMENTS AND CONTINGENT LIABILITIES

The Companies have non-cancelable lease agreements, principally for vehicles and computer equipment.

11. IMPAIRMENT LOSS OF FIXED ASSETS

Impairment loss of fixed assets for the year ended March 31, 2011, 2010 and 2009 are as follows:

’11/3

Location Use Classification Millions of yen Thousands of U.S. dollars

Cirque du Soleil Theatre Tokyo (Urayasu City) Theater Buildings and machinery, equipment and vehicles ¥3,326 $40,000

Shops (Chuo district, Tokyo) Restaurant Buildings and kitchen facilities 28 337

Shops (Minato-district, Tokyo) Retail store Buildings and equipment 13 156Total ¥3,367 $40,493

The Company and certain consolidated subsidiaries recognized impairment loss to match the carrying amount to the recoverable amount for buildings and

others in connection with grouping assets of theaters, restaurants, and retail stores that had consecutive losses from operating activities. For theaters, the recov-

erable amount is measured at the net realizable value based on appraised value. For theater assets that are difficult to sell or use for other applications, the

recoverable amount is estimated as ¥0. For restaurants, the recoverable amount of the property was determined based on value in use calculated under the 4%

discount rate of future cash flows. As the Company has decided to discontinue its retail business by March 31, 2012, it derecognized full amount of non-current

assets related to the retail business and presented it as an impairment loss.

’10/3

Location Use Classification Millions of yen

Shops (Setasgaya-district, Tokyo, and others) Restaurant Buildings and kitchen facilities ¥100

Shops (Gotenba, Shizuoka, and others) Retail store Buildings and equipment 138Total ¥238

Certain consolidated subsidiaries recognized impairment loss to match the carrying amount to the recoverable amount for buildings and others in connec-

tion with grouping assets of restaurants and retail stores which had consecutive losses from operating activities. The estimate of the recoverable amount of the

property was determined based on value in use calculated under the 4-percent discounted cash flow.

’09/3

Location Use Classification Millions of yen

Shops (Kawaguchi-shi, Saitama, and others) Restaurant Buildings and kitchen facilities ¥245

Shops (Shinsaibashi, Osaka, and others) Retail store Buildings and equipment 439Hydroponics plant (Sodegaura-shi, Chiba) Idle asset Construction in progress 304Total ¥988

Certain consolidated subsidiaries recognized impairment loss to match the carrying amount to the recoverable amount for buildings and others in connec-

tion with grouping assets of restaurants and retail stores which had consecutive losses from operating activities. The estimate of the recoverable amount of the

property was determined based on value in use calculated under the 4-percent discounted cash flow, and consolidated subsidiary recognized impairment loss

fully against on the construction in progress, etc. due to the determination that hydroponics plant suspended in construction would be not used for its purpose.

Millions of yen

’11/3

Reportable SegmentsOther Business Total Adjustment Consolidated

Theme Park Hotel Total

Net Sales Sales to external customers ¥290,478 ¥44,005 ¥334,483 ¥21,697 ¥356,180 ¥ − ¥356,181 Intersegment sales or transfers 4,795 587 5,382 3,743 9,125 (9,125) − Total 295,273 44,592 339,865 25,440 365,305 (9,125) 356,181 Segment income (loss) 46,207 8,422 54,629 (1,205) 53,424 240 53,664 Segment assets ¥404,231 ¥84,056 ¥488,287 ¥61,714 ¥550,001 ¥24,634 ¥574,635 Others Depreciation and amortization ¥ 31,364 ¥ 4,999 ¥ 36,363 ¥ 3,679 ¥ 40,042 ¥ (56) ¥ 39,986 Impairment loss − − − 3,367 3,367 − 3,367 Loss on disaster 8,493 804 9,297 473 9,770 (43) 9,727 Increase in property, plant and equip-

ment and intangible assets ¥ 26,237 ¥ 863 ¥ 27,100 ¥ 1,101 ¥ 28,201 ¥ (6) ¥ 28,195

14. SEGMENT INFORMATION

A Segment information in the year ended March 31, 2011Reportable segments are the segments of the companies for which financial information can be obtained. The Board of Directors examines such information

to determine the allocation of management resources and evaluate the business performance on a regular basis. The Companies conduct the management

and operation of hotels and theme parks as their primary business. Taking into consideration the type and nature of services offered and similarity of market,

the Company has established two reportable segments: the Theme Park Segment and the Hotel Segment.

The Theme Park Segment manages and operates theme parks. The Hotel Segment manages and operates the Tokyo Disneyland Hotel, Tokyo DisneySea

Hotel MiraCosta, Tokyo Disney Ambassador Hotel, and Palm & Fountain Terrace Hotel.

Methods of accounting for reportable segments are generally identical to those described in the “Significant accounting and reporting policies” section

(Japanese only) of the Company’s financial statements (kessan tanshin).

13. LOSS ON DISASTER

12. Consolidated statements of Comprehensive income

Loss on disaster represents the fixed expenses (personnel expenses, depreciation and amortization, etc.) incurred during the period of being close business

due to the Great East Japan Earthquake, as well as the the restoration cost and the disposal loss merchandise. Additionally, this value includes provisions set

aside based on estimated future costs.

Comprehensive income and other comprehensive income in the year ended March 31, 2010 are as follows.Millions of yen

’10/3

Comprehensive income Comprehensive income attributable to owners of the parent ¥26,162 Comprehensive income attributable to minority interests (0)Total 26,162

Millions of yen

’10/3

Other comprehensive income Valuation difference on available-for-sale securities ¥902 Deferred gains (losses) on hedges (167)Total 735






Financial Section

72 73


B Business segment information for the years ended March 31, 2010, and 2009The Companies are primarily engaged in the business areas of Theme park, Hotel, Retail and Other businesses in Japan. Business segments are classified based

on type and nature of products and similarity of market.

Main businesses by segment are as follows:

Segments Main business

Theme park Management and operation of theme parks

Hotel Management and operation of Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta, Tokyo Disney Ambassador Hotel

and Palm & Fountain Terrace Hotel

Retail business Management and operation of Disney Store Japan

In addition, Owing to the transfer of shares in Retail Networks Co., Ltd., the Retail Business Segment is excluded, as of March

31, 2010”

Other business Management and operation of IKSPIARI, Cirque du Soleil Theatre Tokyo and Disney Resort Line

Operation of employee cafeterias, Management and operation of theme restaurants, and others

(a) Other business” includes business segments that are not part of the Company’s reportable segments. These include the management and operation

of IKSPIARI, Cirque du Soleil Theatre Tokyo, and Disney Resort Line; the operation of employee cafeterias; and the management and operation of theme

restaurants.

(b) Segment income has been adjusted by ¥240 million (US$2,886 thousand) to account for intersegment sales or transfers.

(c) Segment assets have been adjusted by ¥24,634 million (US$296,260 thousand). This included deducting intersegment sales or transfers totaling ¥1,896

million (US$22,802 thousand) and adjusting for assets valued at ¥26,530 million (US$319,062 thousand) that are not attributable to any segment. These assets

primarily represent the parent company’s surplus operating capital (cash and cash equivalents) and long-term invested capital (investment securities).

(d) Extraordinary loss has been adjusted by ¥1,504 million (US$18,088 thousand) in consideration of impairment loss on investment securities not attributable

to any segment and intersegment sales or transfers.

(e) Segment income has been adjusted to operating income on the consolidated statements of income.

(f ) Depreciation and amortization, impairment loss, and increase in property, plant and equipment and intangible assets include the amortization, impairment,

and addition of long-term prepaid expenses.

(g) Impairment loss in “other business” is primarily attributable to the management and operation of Cirque du Soleil Theatre Tokyo.

(h) Revenues outside Japan and revenues by sales to foreign customers are less than 10% of the Companies’ consolidated net revenues for the year ended March

31, 2011.

(Additional Information)

Effective from the year ended March 31, 2011, the Companies adopted the “Revised Accounting Standard for Disclosures about Segments of an Enterprise and

Related Information” (Statement No. 17 issued by the ASBJ on March 27, 2009) and the “Guidance on the Accounting Standard for Disclosures about Segments

of an Enterprise and Related information” (Guidance No. 20 issued by the ASBJ on March 21, 2008).

Thousands of U.S. dollars

’11/3

Reportable SegmentsOther Business Total Adjustment Consolidated

Theme Park Hotel Total

Net Sales Sales to external customers $3,493,422 $ 529,224 $4,022,646 $260,938 $4,283,584 $ − $4,283,584 Intersegment sales or transfers 57,666 7,060 64,726 45,015 109,741 (109,741) − Total 3,551,088 536,284 4,087,372 305,953 4,393,325 (109,741) 4,283,584 Segment income (loss) 555,706 101,287 656,993 (14,491) 642,502 2,886 645,388 Segment assets $4,861,467 $1,010,896 $5,872,363 $742,201 $6,614,564 $296,260 $6,910,824 Others Depreciation and amortization $ 377,198 $ 60,120 $ 437,318 $ 44,245 $ 481,563 $ (673) $ 480,890 Impairment loss − − − 40,493 40,493 − 40,493 Loss on disaster 102,141 9,669 111,810 5,688 117,498 $ (517) 116,981 Increase in property, plant and equip-

ment and intangible assets $ 315,538 $ 10,379 $ 325,917 $ 13,241 $ 339,158 $ (72) $ 339,086

15. SUBSEQUENT EVENT

A UNSECURED BANK LOANSThe Company concluded and executed the following commitment-line loan agreement to prepare for earthquake risk.

Borrowing amount ¥30,000 million (US$ 360,794 thousand)

Lender Mizuho Trust & Banking Co., Ltd

Borrowing date May 12, 2011

Repayment method Lump-sum

Repayment date May 11, 2012

Collateral None

Millions of yen

’09/3

Theme Park Hotel Retail Business Other Businesses Total Elimination and Corporate Consolidated

Revenues: Revenues from customers ¥302,412 ¥45,917 ¥16,226 ¥24,688 ¥389,243 ¥ − ¥389,243 Inter-segment revenues 4,928 599 1,201 7,713 14,441 (14,441) − Total 307,340 46,516 17,427 32,401 403,684 (14,441) 389,243 Operating expenses 272,795 40,292 17,422 33,282 363,791 (14,644) 349,147 Operating income(loss) ¥ 34,545 ¥ 6,224 ¥ 5 ¥ (881) ¥ 39,893 ¥ 203 ¥ 40,096 Total assets ¥424,178 ¥95,985 ¥ 8,279 ¥72,690 ¥601,132 ¥ 43,860 ¥644,992 Depreciation and amortization, aggregate ¥ 39,639 ¥ 5,818 ¥ 293 ¥ 4,132 ¥ 49,882 ¥ (149) ¥ 49,733 Impairment loss on fixed assets ¥ 304 ¥ − ¥ 439 ¥ 245 ¥ 988 ¥ − ¥ 988 Capital expenditures ¥ 20,440 ¥11,398 ¥ 802 ¥ 7,650 ¥ 40,290 ¥ (150) ¥ 40,140

(a) There are no unallocated operating expenses.

(b) Unallocated assets amounted to ¥52,568million and ¥52,828 million as of March 31, 2010and 2009, respectively, and include primarily cash, marketable

securities, investment securities and so on.

(c) Depreciation and capital expenditures included amortization and addition of long-term prepaid expenses.

(d) Revenues outside Japan and revenues by sales to foreign customers are less than 10% of the Companies’s consolidated net revenues for the year ended 31

March, 2010 and 2009."

Business segment information for the year ended March 31, 2010 and 2009 are as follows:Millions of yen

’10/3

Theme Park Hotel Retail Business Other Businesses Total Elimination and Corporate Consolidated

Revenues: Revenues from customers ¥287,321 ¥45,231 ¥14,760 ¥24,103 ¥371,415 ¥ − ¥371,415 Inter-segment revenues 4,667 622 960 6,041 12,290 (12,290) − Total 291,988 45,853 15,720 30,144 383,705 (12,290) 371,415 Operating expenses 258,752 37,450 15,699 30,230 342,131 (12,640) 329,491 Operating income(loss) ¥ 33,236 ¥ 8,403 ¥ 21 ¥ (86) ¥ 41,574 ¥ 350 ¥ 41,924 Total assets ¥402,897 ¥90,744 ¥ − ¥69,197 ¥562,838 ¥ 52,252 ¥615,090 Depreciation and amortization, aggregate ¥ 36,253 ¥ 6,030 ¥ 292 ¥ 4,243 ¥ 46,818 ¥ (123) ¥ 46,695 Impairment loss on fixed assets ¥ − ¥ − ¥ 126 ¥ 112 ¥ 238 ¥ − ¥ 238 Capital expenditures ¥ 17,645 ¥ 271 ¥ 336 ¥ 1,169 ¥ 19,421 ¥ (2) ¥ 19,419

Oriental Land Annual Report 2011 Oriental Land Annual Report 201174 75

Stock Price Trading Volume(Yen) (Thousand Shares)

’07/1 ’08/1 ’09/1 ’10/1 ’11/1

Stock price Range and Trading Volume

00

1,000

2,000

3,000

4,000

3,000

6,000

9,000

12,000

15,0005,000

6,000

8,000

7,000

9,000

4.36% National government andlocal public organizations

16.96% Financial institutions

0.56% Securities companies

33.70% Other corporations

7.81% Foreign corporation and individuals

28.36% Individuals and others

8.25% Treasury stock

Distribution of Stockholders

Stock Price Trading Volume(Yen) (Thousand Shares)

’07/1 ’08/1 ’09/1 ’10/1 ’11/1

Stock price Range and Trading Volume

00

1,000

2,000

3,000

4,000

3,000

6,000

9,000

12,000

15,0005,000

6,000

8,000

7,000

9,000

The copyrights to the Disney characters and scenes from Tokyo Disneyland, Tokyo DisneySea, Disney Ambassador Hotel, Tokyo DisneySea Hotel MiraCosta, Tokyo Disneyland Hotel and Disney Resort Line are owned by Disney Enterprises, Inc. © Disney Enterprises, Inc. Costumes: Rene é April The trademarks ZED and Cirque du Soleil are owned by Cirque du Soleil and used under license. © 2008 Cirque du Soleil Inc. © Disney/Pixar.

INDEPENDENT AUDITORS’ REPORT

To the Owners and Board of Directors of Oriental Land Co., Ltd.:

We have audited the accompanying consolidated balance sheets of Oriental Land Co., Ltd. and consolidated subsidiaries as of

March 31, 2011 and 2010, the related consolidated statements of income and comprehensive income for the year ended

March 31, 2011, consolidated statements of income for the years ended March 31, 2010 and 2009, and cinsolidated state-

ments of changes in net assets and cash flows for each of the three years in the period ended March 31, 2011, expressed in

Japanese yen. These consolidated financial statements are the responsibility of the Company’s management. Our responsi-

bility is to independently express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that

we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material

misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial

statements. An audit also includes assessing the accounting principles used and significant estimates made by management,

as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our

opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial

position of Oriental Land Co., Ltd. and subsidiaries as of March 31, 2011 and 2010, and the results of their operations and their

cash flows for each of the three years in the period ended March 31, 2011, in conformity with accounting principles generally

accepted in Japan.

The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31,

2011 are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts

and, in our opinion, such translation has been made on the basis described in Note1 to the consolidated financial statements.

Tokyo, Japan

June 29, 2011

Corporate Data / Stock InformationAs of March 31, 2011

Corporate Data

StockholdersNumber of Shares

(Thousands)Percentage

Held (%)

Keisei Electric Railway Co., Ltd. 18,157 19.97Mitsui Fudosan Co., Ltd. 7,689 8.46Chiba Prefecture 3,300 3.63Japan Trustee Services Bank, Ltd. (Trust accounts) 1,982 2.18The Master Trust Bank of Japan, Ltd. (Trust account) 1,640 1.80The Dai-ichi Life Insurance Company, Limited 1,503 1.65Mizuho Trust & Banking Co., Ltd.*2 1,480 1.63Japan Trustee Services Bank, Ltd. (Trust accounts 4) 1,102 1.21Nippon Life Insurance Company 917 1.01The Chuo Mitsui Trust and Banking Company, Limited 832 0.92

*1. In addition to the above, 7,506 thousand shares are held in treasury.*2. Shares held in a pension trust account with Mizuho Trust & Banking Co., Ltd., are for the benefit of retirement

plans of Mizuho Corporate Bank, Ltd.

Corporate Data (Top Ten)Shares of Common Stock

Primary SubsidiariesMilial Resort Hotels Co., Ltd.Maihama Resort Line Co., Ltd.IKSPIARI Co., Ltd.RC Japan Co., Ltd.Maihama Corporation Co., Ltd.Green and Arts Co., Ltd.

Photo Works Co., Ltd.Design Factory Co., Ltd.Bay Food Services Co., Ltd.Resort Costuming Service Co., Ltd.Maihama Building Maintenance Co., Ltd.M TECH Co., Ltd.

Company Name: Oriental Land Co., Ltd.

Address: 1-1 Maihama, Urayasu,Chiba 279-8511, Japan

Established: July 11, 1960

Capital Stock: ¥63,201 million

Number of Employees: 3,960 (Consolidated) (OLC Group) 2,219 (Nonconsolidated) (Oriental Land Co., Ltd.)

Common Stock Outstanding: 90,922,540 shares

Stock Listing: Tokyo Stock Exchange,First Section

Code No.: 4661

Investment Unit: 100 shares

Number of Stockholders: 123,519

Bond Ratings: JCR ..............AA R&I ...............AA-

Share Registrar: The Chuo Mitsui Trust & Banking Co., Ltd. 33-1, Shiba 3-chome, Minato-ku, Tokyo 105-8574, Japan

Transfer Agent: Stock Transfer AgentDepartment, The Chuo Mitsui Trust & Banking Co., Ltd. 8-4, Izumi 2-chome, Suginami-ku, Tokyo 168-0063 Japan

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