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Third Quarter (October-December 2025) Performance

• The single third quarter posted record-high revenue, operating profit, and operating cash flow, driven by Fantasy Springs and Christmas special events that delivered a record-high per-guest revenue.
• Cumulative third quarter results achieved year-over-year revenue and profit growth, driven by higher per-guest spending and growth in the hotel segment. Both revenue and operating profit came in above the company's prior performance forecast, driven by higher-than-expected per-guest spending and lower general expenses, while attendance was roughly in line with forecast.

Theme Park Segment Cost and Revenue Drivers

• Per-guest revenue hit an all-time high across all revenue categories: attraction and show revenue grew due to increased Disney Premier Access usage and a higher mix of higher-priced tickets under the variable pricing system; merchandise revenue grew due to higher sales of Duffy & Friends 20th anniversary and special event merchandise; food and beverage revenue grew due to the reopening of stores that were closed in the prior year period.
• Overall cost of goods sold (COGS) for merchandise and food and beverage decreased year-over-year: food and beverage COGS rose due to higher manufacturing costs from the reopened central kitchen, but merchandise COGS fell due to lower raw material cost ratios from a shift in sales mix, resulting in a net overall decrease.
• Labor costs increased due to wage revisions and headcount growth; general expenses increased due to higher Fantasy Springs maintenance costs and system-related costs from IT equipment replacement; depreciation increased due to the full-year operation of Fantasy Springs.

Upcoming Operational Initiatives

• Starting January 14, 2026, the company launched new offerings including Minnie's Funderland (part of the Disney Palpalooza event) and Dance the Globe!, a new entertainment offering at Tokyo DisneySea, which have received positive guest feedback.
• For fiscal 2026 (starting April 2026), the company will run a full-year Tokyo DisneySea 25th anniversary event, featuring a range of entertainment programs and special content to boost guest experience value.
• The company will conduct guest room renovation work at select Disney hotels, including a 10-year major renovation at Tokyo DisneySea Hotel MiraCosta, to maintain high experience value and upgrade park infrastructure for the future.
• The Tomorrowland area at Tokyo Disneyland will be fully renovated in spring 2027: a new Wreck-It Ralph themed attraction will open, alongside the reopening of Space Mountain and a full refresh of the surrounding area, delivering an entirely new guest experience.
• The company is making steady progress on initiatives to expand guest options: it is exploring ticket pricing strategy changes, expanding the Disney Premier Access service (including expanding the number of eligible attractions and evaluating appropriate pricing), and will launch a new pre-arrival purchase service in 2027 to let guests plan their park visits more effectively.

• For the full 2026 March fiscal year, management maintained the prior full-year performance guidance, despite the cumulative third quarter operating profit coming in above forecast. This decision reflects consideration of potential timing shifts for expenses and remaining weather risk for the final quarter of the fiscal year.
• The 2026 fiscal year budget (starting April 2026) is currently under review and will be developed with full consideration of the expected operating environment for Tokyo Disney Resort. Management expects the upward cost trend to continue due to persistent inflation and ongoing human capital investments, but will work to limit the magnitude of cost increases through active cost control.
• Management will continue to implement planned initiatives, maintain cost control efforts, and work to drive further performance improvement in the remaining portion of the 2026 March fiscal year.

1. Theme Park Segment: Revenue increased 16.9 billion yen to 427.9 billion yen. Operating profit increased 0.3 billion yen to 109.9 billion yen. Attendance was roughly flat year-over-year; the prior year period had pre-closure demand for Space Mountain, while the current period saw strong performance from Fantasy Springs and special events. Revenue contribution percentage (based on total cumulative third quarter segment revenue of 530.1 billion yen): ~80.7%.
2. Hotel Segment: Revenue increased 7.8 billion yen to 89.5 billion yen. Operating profit increased 6.2 billion yen to 29.8 billion yen. Room occupancy fell 1.4 percentage points to 94.0% due to lower bookings via Tokyo Disney Resort Vacation Packages, while average room rate increased 5,727 yen to 69,839 yen, driven by the full-year operation and higher room rates at Tokyo DisneySea Fantasy Springs Hotel. Revenue contribution percentage: ~16.9%.
3. Other Business Segment: Revenue increased 0.2 billion yen to 12.7 billion yen. Operating profit decreased 0.1 billion yen to 1.1 billion yen, with growth from the Ikspiari business offsetting lower profit elsewhere. Revenue contribution percentage: ~2.4%.

• Weather risk remains for the final quarter of the 2026 March fiscal year, which was cited as a factor for maintaining existing full-year guidance despite better-than-expected third quarter results.
• Ongoing rising prices and continued human capital investments are expected to keep upward pressure on costs in the 2026 fiscal year, which may pressure profitability if cost control efforts are not effective.

No question and answer section was included in the provided transcript.