Oriental Land Aktie

Hello, everyone. This is Tomoyuki Shimoda. Thank you very much for taking time out of your busy schedules to attend our company's financial presentation today.

Prior to today's financial results briefing, we would like to express our deepest sympathies to all those affected by the Reiwa 8 Kumamoto Earthquake and their families. We sincerely pray for everyone's safety and for the swift recovery and reconstruction of the affected areas.

While we have not confirmed any significant impact on our company at this time, we will continue to closely monitor the situation and take necessary measures. Furthermore, for guests who are unable to visit our parks or reschedule their visits due to the impact of this earthquake, we will provide refunds for park tickets and take other necessary measures taking into account the situation and the needs of the affected areas.

I will now explain the financial results for the first quarter of the fiscal year ending March 2027 and our outlook for the future.

First, I will explain the financial results overview. Please turn to Page 4. As you can see, here are the financial results for the first quarter. Due to the strong performance of the Tokyo DisneySea 25th anniversary events and other factors, consolidated operating cash flow, net sales and operating profit all reached record highs this quarter.

Going forward, we will continue to prioritize allocating cash to growth investments and take steady steps to enhance corporate value, including shareholder returns. In our Cruise business as well, preparations for the launch in fiscal year 2028 are in full swing, and we are making steady progress. Through growth investments, we will create unprecedented new experiences and accelerate growth of the company.

Please turn to Page 5. The results for this quarter are as shown here. Compared to the same period of the previous fiscal year, we saw an increase in both net sales and profits, driven by factors such as higher attendance and higher net sales per guest.

Please turn to Page 6. I will now explain the results by segment and the factors behind the changes. Net sales for the Theme Parks segment increased by JPY 16.1 billion to JPY 147.4 billion. Attendance increased due to factors such as the Tokyo DisneySea 25th anniversary events. Net sales per guest reached a record high across all revenue categories. Attractions and Shows revenue increased slightly, mainly due to a rise in revenue from Disney Premier Access.

Merchandise revenue increased due to factors such as higher sales of merchandise related to Tokyo DisneySea 25th anniversary. Food and Beverages revenue increased primarily driven by strong sales of menu items and food souvenirs related to Tokyo DisneySea 25th anniversary. As a reference, we will explain the trends in attendance and net sales per guest compared to the same period of the previous fiscal year.

Attendance for the 3 months of this quarter was approximately 7% higher. By month, attendance was up approximately 4% in April, approximately 13% in May and approximately 3% in June. Net sales per guest were up approximately 5% for the first 3-month quarter.

Please refer to Page 7. Operating profit for the Theme Parks segment increased by JPY 8.5 billion to JPY 37.8 billion. The merchandise and food beverages cost ratio decreased overall as the Food and Beverages cost ratio declined due to price adjustments and changes in the sales mix. Personnel expenses increased due to an increase in headcount and compensation revisions.

Miscellaneous costs increased due to higher costs related to the Tokyo DisneySea 25th anniversary events and costs related to entertainment.

Please refer to Page 8. In the Hotel Business segment, driven by factors such as an increase in average room rates, net sales rose by JPY 0.7 billion to JPY 29.2 billion, reaching a record high. The occupancy rate at Disney Hotels for this quarter was 95.2%, up 1.2 percentage points and the average room rate was JPY 67,036, up JPY 502. Although miscellaneous costs climbed due to decoration costs for the Tokyo DisneySea 25th anniversary events, et cetera, operating profit reached a record high of JPY 9.2 billion, driven by factors such as an increase in net sales.

Please turn to Page 9. Net sales for the Other business segment increased primarily due to growth in the Ikspiari business, offsetting the impact of business restructuring. Operating profit rose by JPY 0.3 billion to JPY 0.5 billion, owing to a decrease in miscellaneous costs and other factors.

Please turn to Page 10. Driven by an increase in net sales for guests and a rise in attendance, both net sales and operating profit exceeded our initial forecast. Attendance outperformed our forecast, driven by the Tokyo DisneySea 25th anniversary events. Net sales per guest were higher than expected in total. This was attributable to higher-than-projected revenues from merchandise and Food Beverages owing to the strong performance of products, menu items and food souvenirs related to Tokyo DisneySea 25th anniversary.

For your reference, I will explain the trends in attendance and net sales per guest compared to our initial forecast. Attendance for the 3-month period under review outperformed our forecast by approximately 3%. On a monthly basis, attendance was roughly on par with the forecast in April, about 5% higher in May and about 4% higher in June. Net sales per guest also outperformed the initial forecast by approximately 4%.

Costs in the Theme Parks segment decreased due to factors such as the deferral of miscellaneous costs to the second quarter and after as well and the lower-than-expected merchandise and food beverages cost ratio. As a result, operating profit exceeded our forecast.

Please turn to Page 11. Next, I will explain our earnings outlook for the first half and the full fiscal year. Please turn to Page 12. Although net sales and operating profit for this quarter exceeded our forecast, driven by the strong performance of the Tokyo DisneySea 25th anniversary events, among other factors, we are maintaining our financial forecasts for the first half and the full fiscal year at this time, taking into account factors such as weather risks.

In addition to the Tokyo DisneySea 25th anniversary events, summer cool-off at Tokyo Disney Resort began on July 2 and has been well received by guests. Moving forward into the second quarter and beyond, we will continue to strive to improve our business performance by steadily implementing our initiatives.

Please refer to Page 13. Although we expect a temporary decline in profits for the current fiscal year due to factors such as the implementation of a large-scale guest room renovation work at some Disney hotels beginning in the second quarter, we will continue to aim to contribute to our financial performance by implementing various initiatives. For example, regarding park tickets, in addition to adjusting the price tier composition, we have decided to introduce higher-priced tickets.

We also plan to expand the scope of facilities covered by Disney Premier Access and revise its pricing. As part of our future initiatives regarding cost control, we will fundamentally review our budget management system and prioritize costs to ensure a strategic allocation of resources. In addition, by formulating budgets that reflect current conditions, we will work to establish a system that enables us to execute plans as scheduled.

We will continue to explore ways to control costs so that we can provide an update on our progress going forward. To support our future growth, we will implement various initiatives to improve profitability, thereby generating cash to source growth investments. Our vision for Theme Parks is the pinnacle of happiness creation that exceeds people's imagination.

Moving forward, we will continue to meet the diverse needs of our guests and work to further enhance our existing services, thereby creating unique and unparalleled value. That concludes my remarks. Thank you very much.

Hello, everyone. This is Tomoyuki Shimoda. Thank you very much for taking time out of your busy schedules to attend our company's financial presentation today. We sincerely appreciate your time.

First, I will explain the financial results overview. Please turn to Page 4. The cumulative results for the fiscal year ended March 2026 are as shown here. Compared to the previous fiscal year, net sales increased to a record high due to factors such as higher net sales per guest. However, operating profit decreased due to increases in various costs. Meanwhile, both net sales and operating profit exceeded the initial forecast, primarily due to an increase in net sales per guest. In addition, based on our full year results, we have increased the annual dividend for the fiscal year ended March 2026 by JPY 1 from the initial forecast, setting it at JPY 15 per share.

Please turn to Page 5. I will now explain the results by segment and the factors behind the changes. Compared to the previous fiscal year, net sales for the Theme Park segment increased by JPY 16.2 billion to JPY 568.3 billion. Attendance was roughly the same as in the previous fiscal year. While the rush of demand prior to the closure of Space Mountain contributed to the previous fiscal year's results, the fiscal year under review saw strong performance from special events and full year operation of Fantasy Springs.

As a reference, I will explain the trend in attendance in the fourth quarter compared to the same period of the previous fiscal year. For the 3-month period of this quarter, the attendance numbers were approximately 1% lower. By month, January was approximately 5% lower. February and March were largely similar. Net sales per guest reached a record high of JPY 18,403, driven by factors such as increased revenue from attractions and shows.

Attractions and shows revenue increased mainly due to a rise in Disney Premier Access sales and an increase in the proportion of higher-priced tickets due to variable pricing. Merchandise revenue increased primarily due to a rise in Duffy and Friends 20th anniversary merchandise and products related to special events. Food and Beverages revenue increased due to the reopening of restaurants that were closed during the previous fiscal year, among other factors.

Please turn to Page 6. Operating profit for the Theme Park segment decreased by JPY 9.9 billion to JPY 130.4 billion, primarily due to increases in personnel expenses and miscellaneous costs, although net sales increased. While the food and beverages cost ratio increased due to factors such as higher manufacturing labor cost percentages, the merchandise cost ratio decreased due to improved material yield resulting from changes in the sales mix, resulting in the overall merchandise and food beverages cost ratio to decrease.

Personnel expenses increased due to differences in the recognition of performance bonuses and lump sum payments between fiscal years ended March 2025 and March 2026 as well as an upward revision of employee salaries and wages and an increase in headcount.

Miscellaneous costs increased due to higher maintenance costs for Fantasy Springs and an increase in IT-related expenses resulting from the replacement of IT equipment. Please refer to Page 7. In the Hotel Business segment, thanks to an increase in accommodation revenue driven by higher average charges per room and the full year operation of the Tokyo DisneySea Fantasy Springs Hotel, net sales increased by JPY 8.5 billion to JPY 119 billion, reaching a record high.

The room occupancy rate for Disney Hotels during the fiscal year under review decreased by 1 percentage point to 94.7% due to a decline in reservations made through Tokyo Disney Resort vacation packages, while the average room rate increased by JPY 4,705 to JPY 69,591. Although personnel expenses and depreciation and amortization expenses rose, operating profit increased by JPY 6.3 billion to JPY 36.8 billion, also reaching a record high driven by higher net sales and other factors. Please refer to Page 8. Net sales for the Other Business segment increased by JPY 0.3 billion to JPY 17.1 billion, driven by growth in the Ikspiari business and others.

Operating profit decreased by JPY 0.1 billion to JPY 0.4 billion, mainly owing to higher personnel expenses and miscellaneous costs. Please turn to Page 9. I will explain the comparison with the initial forecast. Although attendance fell short of our expectations mainly in the fourth quarter, this was offset by factors such as a higher-than-expected net sales per guest, resulting in net sales and operating profits exceeding the initial forecast.

As a reference, I will explain the trend in attendance compared to the full year forecast of 28 million. For the 3-month period of this quarter, the attendance numbers were approximately 5% lower. By month, January was approximately 5% lower, February was approximately 5% lower and March was approximately 6% lower. That concludes my remarks. Thank you very much.

Hello, everyone. This is Wataru Takahashi. I will explain our earnings forecast for the fiscal year ending March 31, 2027. Please note that as there are currently many uncertainties regarding the impact of geopolitical risks on our various business segments, we have not factored these into our full year earnings forecast. We will continue monitoring the situation closely and provide updates as necessary.

Please turn to Page 11. First, I would like to explain our premises for the full fiscal year ending March 2027. As a result of factoring large-scale renovations at Disney Hotels and other factors, we expect a temporary decline in profits for the fiscal year ending March 2027. However, we aim to enhance our business performance by implementing various initiatives.

In addition to hosting the Tokyo DisneySea 25th anniversary event, we will consider expanding the range of facilities applicable for Disney Premier Access and reviewing appropriate pricing and we'll prepare to introduce a service that allows guests to purchase Disney Premier Access before their visit. Furthermore, regarding park tickets, we are actively considering a price revision during the fiscal year. Since we are prepared to pass on value to pricing, we will also consider raising the price ceiling.

Please turn to Page 12. The earnings forecast for the fiscal year ending March 2027 is as shown. Although we anticipate increased net sales for the fiscal year due to factors such as higher attendance and increased net sales per guest, we expect a year-on-year decline in profits due to room renovation work in the hotel business and increases in various costs.

Please refer to Page 13. I will explain the factors contributing to the changes by segment. Net sales for the Theme Park business are expected to increase by JPY 23.8 billion to JPY 592.2 billion. Attendance is projected to reach 28 million, an increase of 470,000, driven by the Tokyo DisneySea 25th anniversary events and a rise in the number of overseas guests. Although the external environment remains uncertain due to factors such as the deteriorating situation in the Middle East and the impact of Japan-China relations, we expect the number of overseas guests to increase as a result of a rise in the number of foreign visitors to Japan and the strengthening of promotional activities.

Please refer to Page 14. Net sales per guest are expected to increase by JPY 309 to JPY 18,712. Revenue from attractions and shows is expected to increase due to a larger proportion of higher-priced tickets resulting from variable pricing and growth driven by Disney Premier Access. Merchandise revenue is expected to decrease primarily due to a decline in regular merchandise sales and the discontinuation of Duffy and Friends 20th anniversary merchandise, which will offset the anticipated increase in sales of Tokyo DisneySea 25th anniversary merchandise. Food and Beverages revenue is expected to remain largely unchanged.

Please refer to Page 15. Operating profit for the Theme Parks segment is expected to decrease by JPY 1.7 billion to JPY 128.7 billion. The merchandise and food beverages cost ratio is expected to increase, raising costs by approximately JPY 1.5 billion. This is primarily due to higher costs resulting from foreign exchange rate fluctuations.

Personnel expenses are expected to increase by approximately JPY 2.5 billion due to factors such as compensation revisions and an increase in the number of full-time employees, offsetting the decrease resulting from the recognition of performance bonuses in the previous fiscal year.

Miscellaneous costs are expected to increase by approximately JPY 16.5 billion, primarily due to higher maintenance costs and increased expenses related to Tokyo DisneySea 25th anniversary events. Please refer to Page 16. I will now explain our miscellaneous costs. We anticipate an increase of approximately JPY 16.5 billion in miscellaneous costs and the breakdown of this increase is as shown here. The increase of approximately JPY 4 billion is due to costs driven by the external environment. We expect these costs to continue rising. The increase of approximately JPY 3.5 billion represents costs for medium- to long-term growth. We believe we can control approximately JPY 1 billion in one-time costs for the fiscal year ending March 2027 as well as approximately JPY 8 billion in the base costs.

Regarding cost control, we will fundamentally overhaul our budget management system and reduce unnecessary costs by appropriately allocating resources to essential expenses. We aim to improve the accuracy of our budgets and establish a system that enables us to execute plans as intended. Moving forward, we will aim for cost optimization through fundamental cost control over the medium to long term, minimize the extent of increase and achieve the financial targets set forth in the 2035 long-term management strategy.

Please turn to Page 17. Net sales for the Hotel Business segment are expected to decrease by JPY 3.2 billion to JPY 115.7 billion due to guest-room renovation work. Operating profit is expected to decrease by JPY 6.1 billion to JPY 30.7 billion due to factors such as increased costs associated with guest room renovations.

Please turn to Page 18. In the Other Business segment, net sales are expected to decrease by JPY 0.8 billion to JPY 16.3 billion, while operating profit is expected to increase by JPY 300 million to JPY 800 million. Please refer to Page 19. I would like to explain our dividend policy. Based on our full year results, we have set the annual dividend for the fiscal year ended March 2026 at JPY 15 per share, an increase of JPY 1 from the initial forecast announced at the beginning of the fiscal year. As announced in our 2035 long-term management strategy, we will continue to maintain stable dividends while prioritizing the allocation of resources to growth investments, and we will steadily increase the dividend payout ratio to a 30% level by 2035.

For the fiscal year ending March 2027, we forecast a dividend of JPY 16 per share, an increase of JPY 1 from the previous fiscal year. Please refer to Page 20. Next, I will explain the implementation of a special shareholder benefit. Please turn to Page 21. This year marks the 30th anniversary of our group's listing. To express our gratitude to our shareholders, we have decided to offer a special shareholder benefit. We will distribute 1-Day Passport to all shareholders holding 100 or more shares as of September 30, 2026.

As announced in our 2035 long-term management strategy, we will continue to strengthen shareholder returns through measures such as increasing the dividend payout ratio, repurchasing treasury stock and expanding shareholder benefits. We ask our shareholders and investors to continue supporting our group's growth over the medium to long term, and we appreciate your continued guidance and encouragement.

Please refer to Page 22. Next, I will explain the outlook for the future. Please turn to Page 23. The outline of the 2035 long-term management strategy announced in April 2025 is shown here. In the first year of the 2035 long-term management strategy, we steadily implemented initiatives aimed at achieving our goals. For example, regarding growth investments, we steadily advanced the development of new attractions. In the Cruise business, we resolved to establish a subsidiary, Oriental Land Cruise Company Limited, with the aim of accelerating commercialization and achieving specialized management and operation of cruise ships. We will consistently implement initiatives aimed at overall growth of the company.

Please turn to Page 24. There are no changes to the goals set forth in the 2035 long-term management strategy. We will continue to maintain our steady pace of growth investments and strive to achieve the goals of the 2035 long-term management strategy. In addition to our Theme Park segment, Disney Cruise Line Japan is scheduled to launch in fiscal year 2028 and begin year-round operations in fiscal year 2029. We will continue to strive to create happiness for our guests by further enhancing the appeal of Tokyo Disney Resort and offering family entertainment cruises.

Please turn to Page 25. In closing, I would like to once again share my sincere thoughts with you. This year marks a major milestone, the Tokyo DisneySea 25th anniversary. Over the course of a quarter century, Tokyo DisneySea has taken on many challenges, creating new and memorable experiences each time. Despite changes in the external environment, the value we aim to deliver remains unchanged, and we are steadily moving forward with discussions towards our next leap forward.

Our mission is to provide a place where guests can truly enjoy themselves. For children, we want to provide a world where they can go on adventures, let their imaginations run wild and dream big. And for adults, we want to offer a world where they can forget their daily worries and fully immerse themselves in an extraordinary experience, not only at Tokyo Disney Resort, but also in our Cruise business. We will continue to deliver experiences that far exceed our guests' expectations. Please look forward to the future of our group. That concludes my remarks. Thank you very much.

Hello, everyone. This is Shimoda. Thank you very much for taking time out of your busy schedules to attend our company financial presentation today. We sincerely appreciate your time.

First, I will explain the financial results summary. Please turn to Page 4 of the materials in front of you. Trends in net sales, operating profit and operating cash flow for the third quarter are as shown with this quarter achieving record highs. We leverage special events such as Christmas, along with Fantasy Springs to achieve high net sales per guest.

Please turn to Page 5. The results for the first 9 months are as shown: Compared to the same period of the previous fiscal year, net sales and profits increased due to factors such as higher net sales per guest and growth in the hotel business segment.

Please turn to Page 6. I will explain the results by segment and the factors contributing to the increase or decrease. Net sales for the Theme Park segment increased by JPY 16.9 billion to JPY 427.9 billion. Attendance was nearly the same as the same period of the previous fiscal year. Although the same period of fiscal year 3/'25 benefited from pre-closure demand for Space Mountain, et cetera, this period saw strong performances of Fantasy Springs and special events. As a reference, I will explain the trend in attendance compared to the same period of the previous fiscal year.

For the 3-month period of this quarter, the attendance numbers were largely similar. By month, October was approximately 4% lower, November was approximately 1% higher and December was approximately 3% higher. Net sales per guest reached record highs across all revenue categories. Attractions and shows revenue rose, driven by increases in Disney Premier Access and sales of higher-priced tickets due to variable pricing.

Merchandise revenue grew due to increases of products related to Duffy and Friends 20th anniversary and special events. Food and Beverages revenue increased due to the reopening of restaurants closed during the same period of the previous fiscal year.

Please refer to Page 7. Operating profit for the Theme Parks segment increased by JPY 0.3 billion to JPY 109.9 billion. Regarding the Merchandise and Food/Beverages cost ratio, the Food/Beverages cost ratio increased due to factors such as higher manufacturing expense ratios associated with the reopening of the central kitchen. However, the merchandise cost ratio decreased primarily due to improved material yield resulting from changes in the sales mix. Overall, the cost ratio decreased.

Personnel expenses increased due to factors such as a rise in compensation and an increase in the headcount. Miscellaneous costs increased due to higher maintenance costs at Fantasy Springs and increased IT-related expenses resulting from the replacement of IT equipment. Depreciation and amortization expenses increased due to the full year operation of Fantasy Springs and other factors.

Please refer to Page 8. The Hotel business segment saw net sales increase by JPY 7.8 billion to JPY 89.5 billion, driven by factors including higher room rates and the full year operation of Tokyo DisneySea Fantasy Springs Hotel. For the first 9 months, the occupancy rate at Disney Hotels decreased by 1.4 percentage points to 94% due to a decline in reservations made through vacation packages. The average charge per room increased by JPY 5,727 to JPY 69,839. Operating profit increased by JPY 6.2 billion to JPY 29.8 billion, driven by factors including higher net sales.

Please turn to Page 9. The other business segment saw net sales increase by JPY 0.2 billion to JPY 12.7 billion, driven primarily by the Ikspiari business, while operating profit decreased by JPY 0.1 billion to JPY 1.1 billion.

Please refer to Page 10. Both net sales and operating profit exceeded our earnings forecast due to factors such as higher-than-expected net sales per guest and lower-than-expected miscellaneous costs. Although attendance was negatively impacted by the absence of a surge in demand for Space Mountain, et cetera, ahead of their closure seen during the same period of the previous fiscal year, it remained largely comparable to our projection, thanks to the strong performance of Fantasy Springs and special events.

As a reference, we will explain the trend in attendance figures compared to the earnings forecast. For the 3-month period of this quarter, attendance was largely comparable. Month by month, October was about 1% lower. November was about 2% lower and December was about 2% higher. Net sales per guest exceeded the forecast overall, driven by higher-than-expected merchandise revenue from strong demand for regular products and higher-than-expected food and beverages revenue, supported by an increase in the proportion of high-priced restaurants used. Operating profit surpassed our forecast, driven by lower-than-expected miscellaneous costs and higher-than-expected net sales.

Please turn to Page 11. Next, I will explain the outlook for fiscal year ending March 2026. Please turn to Page 12. Although operating profit for the first 9 months exceeded our projection, we are maintaining our earnings forecast for fiscal year 3/'26 at this time, considering factors such as timing differences in cost recognition and weather risks. Minnie's Funderland at Disney Pal-Palooza and the new entertainment show Dance the Globe at Tokyo DisneySea began on January 14 and have been well received by guests.

Through the steady implementation of initiatives and ongoing cost control, we will continue striving to improve our business performance.

Please see Page 13. Next, I will explain the future outlook. Please turn to Page 14. While the fiscal year 2026 budget is currently under review, we intend to formulate it with full consideration of the operational environment at Tokyo Disney Resort for the next fiscal year. Therefore, we will share factors currently visible that could impact performance.

First is the Tokyo DisneySea 25th anniversary event, which will be held year-round starting in April 2026. We will offer entertainment programs and special content to enhance the guest experience. Additionally, we will carry out renovation work on guest rooms at some Disney hotels. For example, Tokyo DisneySea Hotel MiraCosta will undergo its first major renovation in 10 years. With the goal of maintaining a high level of experience value going forward, we will continue to improve the environment for the future.

Furthermore, while we anticipate a continued cost increase trend due to rising prices and ongoing investments in human capital, we will strive to limit the increase through enhanced cost control.

Please turn to Page 15. The new attraction set in the world of Wreck-It Ralph is now scheduled to open in spring 2027. In the same year, with the opening of the new Space Mountain attraction and the complete redesign of the surrounding area, the entire Tomorrowland area at Tokyo Disneyland will offer a whole new experience. Please stay tuned.

Please turn to Page 16. We have consistently explored various options to meet diverse needs. While we cannot share details at this time, we're exploring various directions, including ticket pricing strategies and enhancements to the Disney Premier Access service, and we are steadily making progress. Regarding our pricing philosophy, continuously enhancing experience value is paramount. The value we provide is a unique experience and lifelong memories. And based on our guest price sensitivity surveys, we believe there is room to raise prices. Our commitment to reflecting value in pricing remains unchanged. We will continue to actively pursue this approach. We will aim for flexible pricing over the medium to long term, refining our methods and timing.

Regarding Disney Premier Access, while considering expanding eligible facilities and determining appropriate pricing, we plan to implement a service that allows purchases prior to a park visit in 2027. Guests will be able to enjoy our parks in a more planned manner. We kindly ask for your patience until its introduction. Moving forward, we will continue to build on our attractive parks, prioritizing various initiatives, expanding guest options to create parks that cater to diverse guest needs. That concludes my remarks. Thank you.

Hello, everyone. This is Shimoda. Thank you very much for taking time out of your busy schedules to attend our company financial presentation today. We sincerely appreciate your time. First, I will explain the financial results summary. Please turn to Page 4 of the materials in front of you. I will now explain the financial results summary for the second quarter of the fiscal year ending March 2026. In the first half of the fiscal year, driven by strong performance at Fantasy Springs and special events, consolidated net sales, operating profit and operating cash flow all exceeded both the previous year's figures and our performance forecasts.

Consolidated net sales and operating cash flow reached record highs, and we recognize that we have achieved strong results even under challenging conditions such as severe heat. We will explain the situation compared to the previous year and compared to the earnings forecast, along with the factors contributing to the increase or decrease.

Please refer to Page 5. First, I will explain the year-on-year comparison for the first half year results. As shown here, net sales and operating profit increased year-on-year due to factors such as an increase in net sales per guest and higher hotel revenue.

Please take a look at Page 6. I will explain the results by segment and the factors contributing to the increase or decrease. Net sales for the Theme Park segment increased by JPY 12.9 billion to JPY 251.7 billion. Attendance figures were on a par with the same period of the previous fiscal year. This was due to the strong performance of Fantasy Springs and special events in the first half of the current fiscal year, which offset a decrease due to the absence of a surge in demand for Space Mountain ahead of its closure seen in the same period of the previous fiscal year.

As a reference, I will explain the trend in attendance compared to the same period last year. Over the 3-month period, it was approximately 1% higher. Month by month, July was approximately 9% lower, August was approximately 15% higher. September was approximately 2% lower.

Please refer to Page 7. Following last year's severe heat, we have made extensive preparations this season to stimulate summer demand. Our strategy focused on narrowing our target guests, introducing content and initiatives that resonate with them and establishing guest-friendly systems while promoting the park's appeal. This led to the launch of the special event Summer Cool-off at Tokyo Disney Resort. As a result, particularly during the summer vacation period, summer cool-off at Tokyo Disney Resort helped motivate guests to visit the parks.

Given the high level of interest among the target demographics in experiencing the events, we believe it effectively generated buzz and demand, boosting overall attendance. In addition, the number of guests to the park was raised as a result of the release of more nighttime ticket options and the number of slots available for sale while promoting the rich park experience in the evenings and beyond.

Please refer to Page 8. We are actively implementing various measures to enhance comfort. As you can see, we have installed tops, get soaked zones and cooling blowers. In the next fiscal year and beyond, we will continue to enhance the value of the summer theme park experiences and actively promote effective measures to attract guests in order to create special park experiences that can only be experienced in summer.

Please refer to Page 9. Net sales per guest reached a record high as each revenue category increased. Attractions and shows revenue increased due to higher revenue from Disney Premier Access and a rise in the sales of higher-priced tickets due to variable pricing. Merchandise revenue increased due to factors such as a rise in sales of products related to Goffy & Friends' 20th anniversary, which offset the decrease due to the settling of initial demand for products related to Fantasy Springs.

Food and Beverages revenue increased due to the full fiscal year operation of restaurants within Fantasy Springs and the reopening of restaurants that were closed during the same period last year.

Please see Page 10. Operating profit of the Theme Parks segment decreased by JPY 0.2 billion to JPY 49.7 billion. The merchandise and food beverages cost ratio decreased overall. Although the food and beverages cost ratio increased due to a rise in the manufacturing expense ratio, the merchandise cost ratio decreased because the sales price adjustments implemented in the same period of the previous fiscal year were not carried out in the current year.

Personnel expenses increased due to factors such as a rise in compensation and an increase in headcount. Miscellaneous costs increased due to factors such as higher IT-related expenses from replacing IT equipment and increased maintenance costs from investment transfer costs. Depreciation and amortization expenses increased due to the full fiscal year operation of Fantasy Springs and other factors.

Please see Page 11. The Hotel Business segment saw net sales increase by JPY 5.8 billion to JPY 56.1 billion, driven by higher accommodation revenue from Tokyo Disney Fantasy Springs Hotel and increased room rates. For the first half of the fiscal year, the occupancy rate at Disney Hotels decreased by 1 percentage point to 92.3% due to a decline in reservations made through vacation packages, while the average charge per room increased by JPY 5,350 to JPY 66,806. Operating profit increased by JPY 5.1 billion to JPY 17.5 billion, driven by factors, including higher net sales.

Please see Page 12. The net sales of the Other Business segment were JPY 8.2 billion, driven by growth in the expiry business and other factors. Operating profit increased by JPY 0.1 billion to JPY 0.6 billion due to higher net sales and reduced miscellaneous costs.

Please refer to Page 13. Next, I will compare the first half year results with our forecast. The comparison with the earnings forecast is as shown. Net sales were largely as projected. Operating profit exceeded the forecast due to factors such as lower-than-expected miscellaneous costs. I will explain the results by segment and the factors contributing to the changes.

Please turn to Page 14. Net sales for the Theme Park segment exceeded projections by JPY 0.9 billion. Attendance remained largely as projected, mainly due to the strong performance of Fantasy Springs and special events in the first half of the current year, despite the negative impact of the absence of a surge in demand for Space Mountain ahead of its closure seen in fiscal year 3/'25.

As a reference, I will explain the trend in attendance compared to our forecast. Over the 3-month second quarter period, attendance was approximately 2% below our forecast. By month, July was about 11% below. August was about 10% above, September was about 4% below. Overall net sales per guest slightly exceeded our forecast, driven by higher-than-expected merchandise revenue from a strong demand for regular products and higher-than-expected food and beverages revenue on the back of increased demand for special event-related menu items and other items.

Please see Page 15. Operating profit for the Theme Parks segment exceeded that of the forecast by JPY 5.1 billion, mainly due to lower-than-expected miscellaneous costs and a lower-than-expected merchandise and food beverages cost ratio. The merchandise and food beverages ratio was lower than expected as a result of decrease in obsolescence write-downs and the decline in the merchandise cost ratio due to a change in the merchandise sales mix.

Miscellaneous costs were lower than expected, primarily due to a deferral of sales promotion costs and a decrease in IT-related expenses resulting from changes in plans. Personnel expenses and depreciation and amortization expenses were almost as projected.

Please refer to Page 16. In the Hotel business segment, net sales were almost in line with our forecast. Operating profit was JPY 0.6 billion higher, mainly due to lower miscellaneous costs. In the Other Business segment, net sales and operating profit were respectively, JPY 0.5 billion higher than projected. That concludes my remarks. Thank you.

Hello, everyone. This is Takahashi. I will now explain the outlook for the fiscal year ending March 2026. Please turn to Page 18 of the materials in front of you. Although profits exceeded our forecast in the first half of the year, we have decided to leave the forecast for the fiscal year ending March 31, 2026, unchanged at this time because the third quarter onward is the volume zone for theme park attendance. And one of the factors for the increase in profits in the first half was the timing of miscellaneous costs.

We have stretched targets for the second half of the year, and we will continue to introduce various measures through the third quarter when high demand is expected as well as through the fourth quarter. From January 14 to March 2, we will roll out Disney Pal-Palooza Minnie's Funderland, which was very well received in 2024 with a new nighttime immersive program added.

In addition, we will introduce new entertainment at Tokyo DisneySea and develop ticket types that meet various guest needs. While steadily implementing the measures we are preparing, we will strive to achieve the goals we set at the beginning of the fiscal year.

Please see Page 19. Next, I will explain the organizational restructuring. Please turn to Page 20. As announced recently, we have decided to implement a major reorganization effective November 1. We have been advancing the 2035 long-term management strategy announced in April 2025. By changing to a more agile and specialized organizational structure, we will strengthen and enhance the efficiency of each function.

For example, the organization is currently divided by business operation, such as the operations division, which oversees attractions and park operations, the Food division and the merchandise division. Going forward, we will integrate these functions and reorganize them into the Food and Merchandise Development division and the Operation division. We expect that this will strengthen collaboration even more than before and enable us to provide new experience value to our guests.

We also believe that consolidating highly similar functions will lead to greater efficiency in the future. We are also making various other revisions, including the reorganization of the corporate strategy planning division and the establishment of the new corporate communication department, and we are determined to accelerate the pace of our efforts to realize the 2035 long-term management strategy. I would like to ask all of you for your continued support and encouragement for our group. That concludes my remarks. Thank you.