Oriental Land's Pricing Power Intact, but Rising Costs Warrant Faster Price Revisions and Cost Cuts

Oriental Land’s partnership with Disney dates back to 1979, and Tokyo Disneyland began operations in 1983. In exchange for exclusive operating rights for Tokyo Disney Resort, Oriental Land pays Disney royalty fees amounting to 7% of total revenue on average. Disney has been supporting Oriental Land’s operation of TDR through sharing know-how and technology for the past 40 years, and their current agreement can be extended to 2076 at the latest. We believe that Oriental Land will continue to leverage its relationship with Disney and its strong position as the only Disney theme park in Japan to maintain stable attendance for its theme park business and high returns.