オリエンタルランド（4661） – Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2022 (Japanese accounting standards)

Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2022 (Japanese accounting standards) January 28, 2022 These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan. Oriental Land Co., Ltd. Code number: 4661, First Section of the Tokyo Stock Exchange URL: http://www.olc.co.jp/en/ Representative: Kenji Yoshida, Representative Director and President Contact: Kenji Horikawa, Officer and Director of Finance/Accounting Department Planned Date for Submission of the Quarterly Report: February 14, 2022 Planned Date for Start of Dividend Payment: ― Supplementary materials for the quarterly financial statements: Yes Briefing session on quarterly financial results: Yes (for institutional investors) Note: All amounts are rounded down to the nearest million yen. 1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2022 (1) Consolidated Operating Results (Cumulative total) (April 1, 2021 to December 31, 2021) (Percentages represent change compared with the same period of the previous fiscal year.) Net sales (¥ million) Year-on-year change (%) Operating profit (loss) (¥ million) (1,617) (19,840) Year-on-year change (%) — — Ordinary profit (loss) (¥ million) (15) (21,850) Year-on-year change (%) — — Nine months ended Dec. 31, 2021 Nine months ended Dec. 31, 2020 190,313 137,113 38.8 (64.9) Note: Comprehensive income: Nine months ended December 31, 2021: ¥(4,238 million) (—%) Nine months ended December 31, 2020: ¥(28,530 million) (—%) Profit (loss) attributable to owners of parent (¥ million) Year-on-year change (%) Earnings per share (¥) Earnings per share (diluted) (¥) Nine months ended Dec. 31, 2021 Nine months ended Dec. 31, 2020 (1,152) (28,728) — — (3.52) (87.75) — — Notes (1) Earnings per share (diluted) for nine months ended December 31, 2021, is not indicated because net loss per share is indicated, although there are potential common shares with dilutive effects. (2) The “Accounting Standards for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. has been applied since the beginning of the first quarter of the current consolidated fiscal year. Figures for the third quarter of the fiscal year ending March 2022 are stated after the application of the said accounting standard, etc. (2) Consolidated Financial Position As of December 31, 2021 As of March 31, 2021 Reference: Shareholders’ equity: As of December 31, 2021: ¥745,645 million As of March 31, 2021: ¥759,948 million Total assets (¥ million) 1,091,483 1,040,465 Net assets (¥ million) 745,645 759,948 Shareholders’ equity ratio (%) 68.3 73.0 Net assets per share (¥) 2,276.64 2,320.71 Note: The “Accounting Standards for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. has been applied since the beginning of the first quarter of the current consolidated fiscal year. Figures for the third quarter of the fiscal year ending March 2022 are stated after the application of the said accounting standard, etc. 2. Dividends Fiscal year ended March 31, 2021 Fiscal year ending March 31, 2022 Fiscal year ending March 31, 2022 (Est.) First quarter-end — — Second quarter-end 13.00 13.00 Annual dividends (¥) Third quarter-end — — Year-end 13.00 13.00 Total 26.00 26.00 Note: Revisions to the latest announcement regarding dividend projection: None 3. Projected Consolidated Results for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022) (Percentages represent change compared with the previous fiscal year or the same quarter of the previous fiscal year, as applicable.) Earnings per share (¥) Profit (loss) attributable to owners of parent (%) Operating profit (loss) Ordinary profit (loss) (¥ million) (¥ million) (¥ million) (¥ million) Net sales (%) (%) (%) 261,939 53.6 (7,623) — (6,232) — (5,874) — (17.94) Fiscal year ending March 31, 2022 Note: Revisions to the latest announcement regarding result projection: Yes *Notes (1) Changes in Major Subsidiaries during the Nine Months Ended December 31, 2021: None (2) Application of Special Accounting Methods for Quarterly Consolidated Financial Statements: None (3) Changes in Accounting Policies, Changes in Accounting Estimates, or Restatement (a) Changes in accounting policies due to changes in accounting standards: Yes (b) Changes other than (a) above: Yes (c) Changes in accounting estimates: Yes (d) Restatement: None Note: For details, please refer to Change in Accounting Policy and Changes in Accounting Policies That Are Difficult to Distinguish from Changes in Accounting Estimates in (3) Notes Regarding the Consolidated Financial Statements for the Third Quarter Under Review on page 5. (4) Number of Shares Issued and Outstanding (Common stock) (a) Number of shares issued at end of period (including treasury stock) (b) Number of treasury stock at end of period (c) Average number of shares outstanding (quarterly cumulative period) Nine months ended December 31, 2021: Nine months ended December 31, 2021: Nine months ended December 31, 2021: 363,690,160 shares 36,169,741 shares Year ended March 31, 2021: Year ended March 31, 2021: 327,492,067 shares Nine months ended December 31, 2020: 363,690,160 shares 36,226,898 shares 327,410,200 shares Note: Number of treasury stock includes dividends paid to the trust to the employee stock plan. * The Company’s quarterly consolidated financial statements are not subject to quarterly financial review by certified public accountants or an auditing firm. * Explanation on the Appropriate Usage of Performance Projections and Other Specific Matters The projections and other statements with respect to the future included in this material are based on currently available information and certain assumptions that are judged reasonable by the Company. Please be advised that the Company does not guarantee in any way the achievement of the projections and other goals in this material and that cases may occur where the actual results and other situations differ materially from the projections due to various factors. Quarterly Consolidated Financial Statements and Key Notes (1) Quarterly Consolidated Balance Sheets At the end of the previous fiscal year (March 31, 2021) At the end of the third quarter (December 31, 2021) (Millions of yen) Items ASSETS Current assets Cash and deposits Notes and accounts receivable—trade Securities Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures, net Machinery, equipment and vehicles, net Land Construction in progress Other, net Total property, plant and equipment Intangible assets Other Total intangible assets Investments and other assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 197,317 12,040 33,495 12,511 118 8,901 9,757 (8) 274,134 315,411 47,849 115,890 165,344 21,063 665,557 17,111 17,111 83,759 (97) 83,662 766,331 1,040,465 221,697 19,206 17,999 6,427 316 9,195 7,677 (11) 282,510 325,727 44,927 115,890 204,966 19,105 710,616 18,145 18,145 80,305 (95) 80,210 808,973 1,091,483 1 Items LIABILITIES Current liabilities Notes and accounts payable—trade Current portion of bonds payable Current portion of long-term borrowings Income taxes payable Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Retirement benefit liability Other Total non-current liabilities Total liabilities Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares NET ASSETS Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Remeasurements of defined benefit plans Total accumulated other comprehensive income Total net assets Total liabilities and net assets At the end of the previous fiscal year (March 31, 2021) At the end of the third quarter (December 31, 2021) (Millions of yen) 9,072 30,000 3,859 9,023 69,414 121,370 150,000 2,364 3,030 3,752 159,147 280,517 63,201 112,001 678,792 (108,771) 745,223 12,449 137 2,137 14,724 759,948 1,040,465 10,912 30,000 5,219 889 83,311 130,333 200,000 7,685 3,492 4,325 215,504 345,838 63,201 115,005 669,346 (113,546) 734,007 9,513 141 1,983 11,638 745,645 1,091,483 2(2) Quarterly Consolidated Statements of (Comprehensive) Income (Quarterly Consolidated Statements of Income) Nine months ended December 31, 2021 Selling, general and administrative expenses Insurance received and insurance dividends Items Net sales Cost of sales Gross profit Operating profit (loss) Non-operating income Interest income Dividend income Subsidy income Other Total non-operating income Non-operating expenses Interest expenses Commission expenses Depreciation Other Total non-operating expenses Ordinary profit (loss) Extraordinary losses Loss on temporary closure Total extraordinary losses Profit (loss) before income taxes Income taxes—current Income taxes—deferred Total income taxes Profit (loss) Profit (loss) attributable to owners of parent Share of loss of entities accounted for using equity method Nine months ended December 31, 2020 (April 1, 2020 to December 31, 2020) (Millions of yen) Nine months ended December 31, 2021 (April 1, 2021 to December 31, 2021) 137,113 *1 121,987 15,126 *1 34,966 (19,840) 46 533 337 ― 728 241 371 610 667 1,646 1,766 3,656 (21,850) *1 13,333 13,333 (35,184) 412 (6,868) (6,455) (28,728) (28,728) 190,313 *1 150,047 40,265 *1 41,882 (1,617) *2 2,048 984 3,923 91 513 284 341 385 653 698 241 2,320 (15) ― ― (15) 337 799 1,137 (1,152) (1,152) 3(Quarterly Consolidated Statements of Comprehensive Income) Nine months ended December 31, 2021 Items Nine months ended December 31, 2020 (April 1, 2020 to December 31, 2020) (Millions of yen) Nine months ended December 31, 2021 (April 1, 2021 to December 31, 2021) Profit (loss) Other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Remeasurements of defined benefit plans, net of tax Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests (28,728) 369 (123) (47) 197 (28,530) (28,530) ― (1,152) (2,935) 4 (154) (3,086) (4,238) (4,238) ― 4(3) Notes Regarding Quarterly Consolidated Financial Statements for the Third Quarter Under Review Notes Regarding Going Concern Assumption: None Notes Regarding the Occurrence of Significant Changes in Amount of Shareholders’ Equity: None Change in Accounting Policy Application of the Accounting Standard for Revenue Recognition, etc. The “Accounting Standards for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020. Hereinafter, “Accounting Standard for Revenue Recognition”), etc. has been applied since the beginning of the first quarter of the current consolidated fiscal year. In accordance with this accounting standard, the Company recognizes revenue as the amount expected to be received in exchange for the promised goods or services when the control of the goods or services is transferred to the customer. The application of the Accounting Standard for Revenue Recognition is pursuant to the transitional treatment stipulated in the proviso of Paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative effect when applying the new accounting policy retrospectively from before the beginning of the first quarter of the current consolidated fiscal year is added to or subtracted from the retained earnings at the beginning of the first quarter of the current consolidated fiscal year before applying the new accounting policy from the beginning-of-year balance. The impact of these changes on the Company’s consolidated quarterly financial statements is minor. Furthermore, in accordance with the transitional treatment stipulated in Paragraph 28-15 of the Accounting Standard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), information on the breakdown of revenue generated from contracts with customers for the third quarter of the previous consolidated fiscal year is not shown. Application of Accounting Standard for Fair Value Measurement, etc. The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019), etc, have been applied since the beginning of the first quarter of the current consolidated fiscal year. In accordance with the transitional treatment prescribed in Paragraph 19 of the “Accounting Standard for Fair Value Measurement” and Paragraph 44–2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the Company has decided to apply the new accounting policies set forth by the Accounting Standard for Fair Value Measurement, etc. in the future. These changes had no impact on the Company’s quarterly consolidated financial statements. Changes in Accounting Policies That Are Difficult to Distinguish from Changes in Accounting Estimates Changes in Depreciation Method for Property, Plant and Equipment While the Company had previously adopted the declining-balance method mainly for depreciation of property, plant and equipment of Tokyo Disneyland (however, the straight-line method had been applied for buildings acquired on or after April 1, 1998 and facilities attached to buildings and structures acquired on or after April 1, 2016), the method was changed to the straight-line method from the first quarter of the current consolidated fiscal year. The business environment surrounding the Company is currently undergoing major changes due to the impact of COVID-19, in addition to demographic changes such as the declining birthrate and aging population. Against this backdrop, we examined the effects of attracting guests to the facility during the period between fiscal 2020 and fiscal 2021, in the wake of the opening of large-scale development areas in Tokyo Disneyland, which was the largest investment since the opening of the park. As a result, since Tokyo Disneyland is expected to operate stably and contribute to earnings for a long period of time similarly to Tokyo DisneySea, which adopts the straight-line method, we judged that it will become possible to reflect the actual conditions of the parks more adequately on the Company’s financial statements by unifying the depreciation methods. As a result of this change, for the nine months of the current consolidated fiscal year, operating loss decreased by 4,410 million yen, and ordinary loss and loss before income taxes decreased by 4,454 million yen, respectively, compared with the previous method. 5Additional Information Impact of COVID-19 The OLC Group’s Theme Parks, which constitute its core business, take measures primarily based on the sector-wide guidelines for preventing the spread of COVID-19. Furthermore, in view of the COVID-19 pandemic situation, the quasi-state of emergency applied to Chiba Prefecture, and other factors, we currently limit our daily attendance in line with requests from the national and local governments. It may take some time before we can restore normal operations, depending on the external environment including trends in consumer sentiment for leisure activities. As such, the situation of the spread of COVID-19 is expected to exert a material impact on our consolidated financial results in and after the fourth quarter of the fiscal year ending March 31, 2022. Significant accounting estimates and underlying assumptions As of the end of the previous fiscal year and the end of the first quarter of the current fiscal year ending March 2022, the OLC Group made various consolidated accounting estimates on the assumption that the COVID-19 pandemic will linger for a certain period during the current fiscal year. With regard to the second quarter ended September 30, 2021, in view of the prolonged impact of the COVID-19 pandemic, we revised our assumption to deem that the impact will remain for a certain period in the next fiscal year, based on which we have made consolidated accounting estimates on the impairment of non-current assets and realizability of deferred tax assets. As a result, we revised our assessment on the realizability of deferred tax assets and have recorded a partial reversal of our deferred tax assets. However, the impact of this revision on the Company’s consolidated quarterly financial statements is minor. We make estimates and judgments deemed to be rational in view of the current situation and available information, but given the highly uncertain outlook of the COVID-19 pandemic including the extent of its spread and when it will end, the pandemic may exert further impact on the consolidated financial results in and after the fourth quarter of the current fiscal year in the event that the impact is more prolonged or exacerbated than is expected. Matters Concerning Consolidated Statements of Income *1 Employment adjustment subsidies The OLC Group has been applied to special case of employment adjustment subsidy for paid treatments to prevent the spread of the COVID-19 pandemic. As a result, the employment adjustment subsidy received or expected to be received from the government has been registered by deducting 4,594 million yen, 842 million yen, and 12,796 million yen from the cost of sales, selling, general and administrative expenses, and extraordinary loss, respectively, in the previous third quarter of the fiscal year ended March 31, 2021; furthermore, in the third quarter under review, 7,589 million yen and 199 million yen are deducted from the cost of sales and selling, general and administrative expenses respectively. *2 Subsidy income This is the income from the subsidies for cooperation paid by local governments for the reduction of operating hours in an effort to prevent the spread of COVID-19. 6Segment Information 1. Nine months ended December 31, 2020 (April 1, 2020 to December 31, 2020) A. Net Sales and Profit (Loss) by Reportable Segment Reportable Segments Theme Park Hotel Total Other Business*1 Total Adjustment*2 109,159 22,158 131,318 5,795 137,113 2,784 278 3,062 2,746 5,809 (5,809) (Millions of yen) Amount stated on the Quarterly Consolidated Statements of Income*3 — 137,113 — Net sales Sales to external customers Intersegment sales or transfers 137,113 Total (19,840) Segment Profit (Loss) Notes: 1. The “Other Business” segment, which includes the Ikspiari, monorail, and employee cafeteria businesses, etc., is 134,380 (18,762) 111,944 (18,384) 142,923 (19,987) 22,436 (378) (5,809) 146 8,542 (1,224) 2. The segment profit (loss) adjustment amount of 146 million yen is the result of elimination of intersegment 3. The segment profit (loss) is adjusted to be recorded as operating profit (loss) in the Quarterly Consolidated not a reportable segment. transactions. Statements of Income. B. Information regarding impairment loss on fixed assets and goodwill by reportable segment: None (Millions of yen) Amount stated on the Quarterly Consolidated Statements of Income*3 — — — — — — — 70,873 49,194 25,676 3,281 34,341 6,946 190,313 2. Nine months ended December 31, 2021 (April 1, 2021 to December 31, 2021) A. Net Sales and Profit (Loss) by Reportable Segment and Breakdown of Revenue Other Business*1 Total Adjustment*2 Reportable Segments Theme Park 70,873 49,194 25,676 3,281 — — Hotel Total — — — — 34,341 — 70,873 49,194 25,676 3,281 34,341 — 149,024 34,341 183,366 — — — — — 6,946 6,946 70,873 49,194 25,676 3,281 34,341 6,946 190,313 Net sales Attractions and shows Merchandise Food and beverages Other revenue Hotel Other Sales to external customers Intersegment sales or transfers 4,448 377 4,826 2,802 7,628 (7,628) — Total Segment Profit (Loss) Notes: 1. The “Other Business” segment, which includes the Ikspiari, monorail, and employee cafeteria businesses, is not a reportable segment. 153,473 (5,106) 188,192 (805) 197,942 (1,856) 9,749 (1,050) (7,628) 238 34,719 4,300 190,313 (1,617) 2. The segment profit (loss) adjustment amount of 238 million yen is the result of elimination of intersegment 3. The segment profit (loss) is adjusted to be recorded as operating profit (loss) in the Quarterly Consolidated transactions. Statements of Income. B. Matters Regarding the Changes in Reportable Segment, etc. Application of the Accounting Standard for Revenue Recognition, etc. As stated under the “Notes Regarding the Change in Accounting Policy,” the Accounting Standards for Revenue Recognition, etc. has been applied since the beginning of the first quarter of the current consolidated fiscal year. As a result of a change in the method of accounting treatment for revenue recognition, the method of measuring profit or loss in each business segment has also been changed accordingly. The impact of these changes on the Company’s consolidated quarterly financial statements is minor. 7Changes in Depreciation Method for Property, Plant and Equipment As stated under the “Notes Regarding the Changes in Accounting Policies That Are Difficult to Distinguish from Changes in Accounting Estimates,” while the Company had previously adopted the declining-balance method mainly for depreciation of property, plant and equipment of Tokyo Disneyland (however, the straight-line method had been applied for buildings acquired on or after April 1, 1998 and facilities attached to buildings and structures acquired on or after April 1, 2016), the method was changed to the straight-line method from the first quarter of the current consolidated fiscal year. As a result of this change, segment profit for the nine months of the current consolidated fiscal year increased by 6 million yen for the “Hotel” segment, and segment loss for the same period decreased by 4,399 million yen for the “Theme Park” segment and 4 million yen for the “Other Business” segment, compared with the previous method. C. Information regarding impairment loss on fixed assets and goodwill by reportable segment: None 8