9DEC201416063963 Fiscal Year 2014 Annual Financial Report And Shareholder Letter 14JAN201515462037 Dear Shareholders, From the first day in this job I’ve understood what an honor and responsibility it is to be Disney’s CEO; but over the last nine years I’ve come to truly appreciate what an unbelievable privilege it is to lead this phenomenal company. It’s always been my belief that, once the people who work here believed in their own greatness, there was virtually nothing we couldn’t accomplish. And they have proven me right time and time again. Given our track record of achievement and the incredibly dynamic times we live in, I can honestly say I’ve never been more optimistic or enthusiastic about what lies ahead for The Walt Disney Company. We just delivered the best results in the history of this legendary company, marking our fourth fiscal year of record performance in a row, and our stock price has recently been trading higher than ever, which speaks to our sustained success as well as our optimism and belief in Disney’s potential to keep growing and creating value over the long term. Our Studio delivered some of the biggest movies of 2014, and surpassed $4 billion in global box office for the second year in a row. Our Parks and Resorts continued to push the boundaries of creativity and innovation to take the guest experience to a whole new level of excellence, achieving record worldwide attendance and delivering double-digit earnings growth. ESPN further strengthened its claim to the number one sports brand with long-term rights deals for the best in sports and the launch of a new SEC network into 70 million homes. ABC emerged stronger than ever with its most successful season in recent memory, driven in part by great shows from our own ABC Studios, and ABC News once again outperformed the competition and set the standard of excellence for broadcast journalism. Disney Consumer Products leveraged 11 branded franchises driving more than a billion dollars each in retail sales to generate double-digit earnings growth, and the popularity of Disney Infinity and new mobile games led our Interactive business to profitability. Disney was also widely recognized as one of the world’s most admired and respected companies, an achievement I’m especially proud of because it reflects more than just our strong performance. It speaks to our integrity and unwavering commitment to act ethically and operate responsibly wherever we do business. For us, doing good is essential to doing well. We know that being a good global citizen is what you expect from our brand and, just as importantly, it’s something we expect from ourselves. We’ve reached this level of sustained success by focusing on three strategic priorities that unlock the limitless potential of this remarkable company: unparalleled creativity, innovative technology, and global expansion. Since embracing this strategy nine years ago, Disney has delivered some of the world’s most extraordinary entertainment experiences as well as significant growth and a total shareholder return of 317%. The acquisitions of Pixar, Marvel, and Lucasfilm gave us more than an unprecedented portfolio of fantastic branded content. They also brought some incredibly innovative storytellers to Disney, who’ve served as catalysts to expand our creativity in new directions. Our international teams have done a great job expanding our presence in new markets, staying true to our brand values while ensuring our content is accessible and relevant to consumers around the world. Our historic investment in Shanghai is the largest example of this in action; our resort and The Walt Disney Company in China are both authentically Disney, yet distinctly Chinese. In the last several years, technology has become a true game changer, elevating our creativity and expanding our ability to connect with consumers in every corner of the world. One of the reasons I’ve always loved the media and entertainment business is because it is constantly evolving, influencing the world as it redefines itself with each new advance in technology. It’s what first drew me to ABC, and what keeps me even more engaged and enthusiastic 40 years later. In fact, there has been more transformational change in the last five years than in the first 35 years of my career combined. We’re successfully navigating this rapid evolution because we decided early on to embrace technology and the disruptive change it brings as an opportunity for growth rather than a threat. As a result, we’re driving change on a number of fronts, adopting and developing technology that inspires creativity and empowers storytellers to dream bigger. They, in turn, challenge our technologists to push beyond what’s possible today and unleash even more creative potential, allowing us to create a future unlimited by anything other than our own imagination. I can’t think of a single one of our businesses that isn’t being fundamentally influenced or transformed by new technology – from tools giving artists the ability to individually animate thousands of unique snow crystals in Frozen, to MagicBands that change how millions of our guests experience Disney World, to digital platforms that allow us all to take movies, TV shows, and even news and live sports coverage with us wherever we go. The result of all this new technology is a brand new golden age for content. And with our unparalleled pipeline of global franchises and branded content from Disney, Pixar, Marvel, Star Wars, ABC and ESPN, I’m confident The Walt Disney Company is uniquely well positioned for continued growth in this dynamic era. Our Studio is a perfect example. In Fiscal 2014 we released four of the year’s biggest movies: Marvel’s Captain America: The Winter Soldier and Guardians of the Galaxy, Disney’s Maleficent, and Disney Animation’s Frozen, which achieved almost $1.3 billion in global box office, making it the highest grossing animated movie ever released. We’re already off to a strong start in Fiscal 2015, with Big Hero 6 and Into the Woods. In March we’ll bring one of Disney’s most beloved characters to life in a new way for a new generation with our first-ever live-action Cinderella, and you can also look forward to seeing George Clooney in Tomorrowland this May. I can’t wait for you to see Pixar’s Inside Out. It opens in June and it’s one of the most brilliant and original movies Pixar has ever made – which is truly saying something, given the studio’s legendary achievements. We’re also very excited about the Thanksgiving release of The Good Dinosaur, another original movie from the phenomenal storytellers at Pixar, as well as Finding Dory, the long-awaited sequel to Finding Nemo, and Disney Animation’s Zootopia in 2016. And we’re absolutely thrilled that John Lasseter is returning to the director’s chair to create a fourth Toy Story movie, bringing back some of his favorite characters in a brand new big screen adventure. Since joining Disney, Marvel’s brand of storytelling has an unbroken record of success – the five movies we’ve distributed so far have averaged almost a billion each at the global box office, and we’ll bring you another 11 incredible stories over the next four years. Fans expect Marvel movies to be spectacular entertainment experiences and, having seen some of the upcoming releases, I’m certain they won’t be disappointed. This May, Marvel’s Avengers will be back in Avengers: Age of Ultron, and we’ll follow that with the debut of Ant-Man in July. Captain America returns in 2016, followed by the introduction of Doctor Strange; and like Marvel fans everywhere, we’re looking forward to Thor: Ragnarok in 2017, along with the second Guardians of the Galaxy and the debut of Black Panther. The excitement continues in 2018, with Captain Marvel, Inhumans, and Avengers: Infinity War (Part I), and we’ll finish the Infinity War story with Part II in 2019. We are well aware that for many Star Wars fans the first 11 months of 2015 will be little more than a countdown to the December 18th release of Star Wars: The Force Awakens. It’s really impossible to capture the full magnitude of the global excitement around this movie. As you know, we released a very brief “teaser” trailer at Thanksgiving – which was quickly downloaded more than 110 million times. The more than 40 million tribute videos that fans posted in response in just a matter of days reflect an emotional connection to this franchise that transcends geography and generations. As one of the few people allowed to visit the set during filming….and one of the fewer who’s seen most of the footage… I can assure the millions of Star Wars fans who have spent the last decade hoping for a new movie this one will be worth the wait. And it’s only the beginning of a new era of exceptional Star Wars storytelling; next year we’ll release our first standalone movie based on these characters, followed by Star Wars: Episode VIII in 2017, and we’ll finish this trilogy with Episode IX in 2019. In 2014, ESPN celebrated its 35th anniversary and, with an extraordinary portfolio of long-term rights, we’re confident it will continue to be the worldwide leader in sports for many years to come. From the NFL, NBA, and Major League Baseball to the SEC, ACC, Pac-12, Big 12, Wimbledon, and U.S. Open Tennis -- if it’s important to sports fans, it’s on ESPN.