ORIENTAL LAND CO., LTD.

In the cruise business, which is targeting launch in FY2028, there is a risk that the launch could be significantly delayed due to shipbuilding schedule delays, supplier financial difficulties, or delays in establishing an operational structure. A delayed launch would directly impact management strategy and business results. Preparations for launch are being advanced through close coordination with shipbuilders and government agencies, and with advice from experts with shipbuilding and operational experience.

In ongoing capital expenditure centered on the Theme Park, there is a risk that development and renewal costs may rise more than expected due to increases in material prices and labor costs, making execution of the long-term investment plan difficult. This could affect management strategy and business results. Countermeasures include cash allocation management based on the long-term management strategy, careful examination of investment returns, and formulation of efficient investment plans by area.

As the business foundation is almost entirely concentrated in Maihama, there is a risk that, in the event of a natural disaster such as a major earthquake, a terrorist incident, or an infectious disease outbreak, facility damage, impacts on transportation infrastructure, temporary park closures, and a chilling of consumer sentiment could lead to a decline in net sales or a temporary suspension of operations. As countermeasures, the Group has prepared manuals and conducted training for employees, implemented risk financing, strengthened security such as metal detectors, and thoroughly enforced hygiene management.

There is a risk that cyberattacks or misuse of internal databases could result in the leakage, destruction, or falsification of customer information and trade secrets, or that information system failures could cause business disruption. This could lead to a decline in trust, brand damage, and the burden of substantial litigation costs, thereby affecting business results. The Group has established an information security promotion structure, strengthened monitoring of internal networks, restricted access, and conducted awareness-raising and training for officers and employees.

If a serious workplace accident or legal violation occurs due to negligence by officers or employees, there is a risk that administrative disposition could cause business disruption, decline in trust, brand damage, and the burden of substantial costs such as litigation, thereby affecting business results. The Group has established the Group Compliance Code of Conduct and business guidelines, and addresses this risk through the establishment of a compliance promotion structure, education and awareness-raising for officers and employees, and the establishment and operation of a whistleblowing hotline.

As domestic guests account for the majority of visitors, there is a risk that attendance and net sales may decline due to population decrease from the falling birthrate and changes in the economic environment. In addition, a delayed response to the diversification of leisure options and changes in customer values could have a similar impact. As countermeasures, the Group is promoting the strengthening of inbound customer acquisition, per-guest spending improvement, establishment of new revenue models, and entry into the cruise business.

The Group's business results are strongly dependent on the Theme Park business, and there is a risk of a shortage of alternative growth drivers if growth in this business slows. This could not only affect management strategy and business results but also lead to a decline in social trust. As countermeasures, the Group is strengthening the customer acquisition base of Tokyo Disney Resort, launching the cruise business, and accelerating the creation of new businesses by increasing the CVC investment framework from ¥3.0 billion to ¥13.0 billion.

If the response to human resource systems, the workplace environment, and organizational culture is inadequate, there is a risk that employee engagement could decline, leading to a decline in the quality of hospitality provided to guests. This could result in a decline in trust in the Group and a significant impact on management strategy. The Group has selected "Employee Happiness" as an ESG materiality item and is promoting the continued implementation of workplace satisfaction surveys, improvement of the digital environment, and support for career development.

If the recruitment and training of employees become difficult due to a decline in the working population and other factors, there is a risk of increased recruitment costs and labor costs, as well as a significant impact on human resource acquisition strategy. Since Theme Park operations rely heavily on the hospitality of many employees, a shortage of personnel directly affects the quality of business operations. The Group is promoting improvements to the workplace environment based on analysis of retirement trends, improving retention rates, and investing in efficient staffing allocation.

Due to climate change accompanying rising temperatures, there is a risk that, in the Theme Park business, which is centered on outdoor experiences, large-scale operational restrictions or policy changes may be forced during the summer, making business continuity difficult. In addition, failure to achieve CO₂ reduction targets and similar goals could negatively impact the global environment and lead to a decline in social trust. The Group is conducting scenario analysis and strategy formulation utilizing the TCFD framework, has established a "Climate Change Response Subcommittee," and is considering a long-term strategy toward net-zero greenhouse gas emissions by 2050.