News FromINVESTOR RELATIONS WINTER 2012 Fiscal Q4 and Full Year 2012 Earnings Results pg 2 - Company News Disney to Acquire Lucasfilm Ltd. pg 3 - Company News Disney’s Agreement with Netflix pg 4 - Studio Fantasyland Opens pg 8 - Parks and Resorts C OMPany News Disney Reports Fiscal Q4 and Full Year Earnings Results On November 8, The Walt Disney Company reported earnings PARKS AND RESORTS: Parks and Resorts revenue for the year for its fiscal year and fourth quarter ended September 29, 2012. increased 10% to $12.9 billion and segment operating income Diluted earnings per share (EPS) for the year increased 24% to increased 22% to $1.9 billion. For the quarter, revenues increased $3.13 from $2.52 in the prior year. For the quarter, diluted EPS 9% to $3.4 billion and segment operating income increased 18% was $0.68 compared to $0.58 in the prior-year quarter. Excluding to $497 million. certain items affecting comparability, EPS for the year increased 21% to $3.07 from $2.54 in the prior year and EPS for the quarter STUDIO ENTERTAINMENT: Studio Entertainment revenues for increased 15% to $0.68 from $0.59 in the prior-year quarter. the year decreased 8% to $5.8 billion and segment operating income increased 17% to $722 million. For the quarter, revenues “Fiscal 2012 was a great year creatively, financially and decreased 4% to $1.4 billion and segment operating income strategically, resulting in record revenue, net income, and earnings decreased 32% to $80 million. per share,” said Disney Chairman and CEO Robert A. Iger. “The addition of Lucasfilm will further fuel Disney’s creative engine CONSUMER PRODUCTS: Consumer Products revenues for across our company to create additional value for our shareholders the year increased 7% to $3.3 billion and segment operating and we’re confident the Company is well positioned to continue income increased 15% to $937 million. For the quarter, revenues our strong performance and growth.” increased 8% to $883 million and segment operating income increased 29% to $267 million. MEDIA NETWORKS: Media Networks revenues for the year increased 4% to $19.4 billion and segment operating income INTERACTIVE: Interactive revenues for the year decreased 14% to increased 8% to $6.6 billion. For the quarter, revenues increased $845 million and segment operating results improved $92 million 2% to $4.9 billion and segment operating income increased 7% to to a loss of $216 million. For the quarter, revenues decreased 14% $1.6 billion. to $191 million and segment operating results improved $18 million to a loss of $76 million. For more information, including a reconciliation of non-GAAP measures to their GAAP equivalents, visit www.disney.com/investors. Disney Board Declares Dividend and Announces Annual Meeting of Shareholders The Walt Disney Company board recently declared an annual The Company also announced that it has scheduled its annual cash dividend of $0.75 per share, up 25%, or $0.15 per share, shareholders’ meeting for Wednesday, March 6, 2013, in from the previous year. The dividend is payable on December Phoenix, Arizona. 28, 2012 to shareholders of record at the close of business on December 10, 2012. The December payment represents the 57th consecutive dividend payment to shareholders. The Walt Disney Company - Investor Relations WINTER 2012 I 2 Disney to Acquire Lucasfilm Ltd. Continuing its strategy of delivering exceptional creative content to audiences around the world, The Walt Disney Company has agreed to acquire Lucasfilm Ltd. in a stock and cash transaction. Lucasfilm is 100 percent owned by Lucasfilm Chairman and Founder, George Lucas. Under the terms of the agreement and based on the closing price of Disney stock on October 26, 2012, the transaction value is $4.05 billion, with Disney paying approximately half of the consideration in cash and issuing approximately 40 million shares at closing. The final consideration will be subject to customary post-closing balance sheet adjustments. Under the deal, Disney will acquire ownership of Lucasfilm, a leader in entertainment, innovation and technology, including its massively popular Star Wars franchise and its operating businesses in live-action film production, consumer products, animation, visual effects, and audio post production. Disney will also acquire the substantial portfolio of world and creates extensive opportunities for Disney to deliver the cutting-edge entertainment technologies that have kept audiences content across its diverse portfolio of businesses including movies, enthralled for many years. Lucasfilm, headquartered in San television, consumer products, games and theme parks. Star Wars Francisco, operates under the names Lucasfilm Ltd., LucasArts, feature films have earned a total of $4.4 billion in global box office Industrial Light & Magic, and Skywalker Sound, and the present to date, and continued global demand has made Star Wars one intent is for Lucasfilm employees to remain in their current locations. of the world’s top product brands, and Lucasfilm a leading product licensor in the United States in 2011. The franchise provides a Kathleen Kennedy, current Co-Chairman of Lucasfilm, will become sustainable source of high quality, branded content with global President of Lucasfilm, reporting to Walt Disney Studios Chairman appeal and is well suited for new business models including digital Alan Horn. Additionally she will serve as the brand manager for platforms, putting the acquisition in strong alignment with Disney’s Star Wars, working directly with Disney’s global lines of business strategic priorities for continued long-term growth. to build, further integrate, and maximize the value of this global franchise. Ms. Kennedy will serve as executive producer on new The Lucasfilm acquisition follows Disney’s very successful Star Wars feature films, with George Lucas serving as creative acquisitions of Pixar and Marvel, which demonstrated the consultant. Star Wars Episode 7 is targeted for release in 2015, company’s unique ability to fully develop and expand the with more feature films expected to continue the Star Wars saga financial potential of high-quality creative content with compelling and grow the franchise well into the future. characters and storytelling through the application of innovative technology and multiplatform distribution on a truly global basis The acquisition combines two highly compatible family to create maximum value. Adding Lucasfilm to Disney’s portfolio entertainment brands, and strengthens the long-standing beneficial of world-class brands significantly enhances the company’s ability relationship between them that already includes successful to serve consumers with a broad variety of the world’s highest- integration of Star Wars content into Disney theme parks in quality content and to create additional long-term value for our Anaheim, Orlando, Paris and Tokyo. shareholders. Driven by a tremendously talented creative team, Lucasfilm’s The Boards of Directors of Disney and Lucasfilm have approved legendary Star Wars franchise has flourished for more than 35 the transaction, which is subject to clearance under the Hart-Scott- years, and offers a virtually limitless universe of characters and Rodino Antitrust Improvements Act, certain non-United States merger stories to drive continued feature film releases and franchise growth control regulations, and other customary closing conditions. The over the long term. Star Wars resonates with consumers around the agreement has been approved by the sole shareholder of Lucasfilm. The Walt Disney Company - Investor Relations WINTER 2012 I 3 STUDIO ENTERTAINMENT Netflix and Disney Announce Multi-Year Premium Pay TV Window Agreement Netflix Inc. and The Walt Disney Company recently announced multiple platforms, including television, tablets, computers and a new multi-year licensing agreement that will make Netflix the mobile phones. Also included in the agreement are high-profile exclusive U.S. subscription television service for first-run live-action Disney direct-to-video new releases, which will be made available on and animated feature films from The Walt Disney Studios. Netflix starting in 2013. Beginning with its 2016 theatrically released feature films, new Separately, Disney and Netflix have reached an agreement on a Disney, Walt Disney Animation Studios, Pixar Animation Studios, multi-year catalog deal that today brings to U.S. Netflix members Marvel Studios and Disneynature titles will be made available for such beloved Disney movies such as Dumbo, Pocahontas and Alice Netflix members to watch instantly in the pay TV window on in Wonderland. Financial terms of the agreement were not disclosed. Wreck It Ralph Opens Big Walt Disney Animation Studios’ Wreck-It Ralph opened in theaters nationwide on Friday, November 2, taking in $49 million to become the highest-grossing Disney Animation opening ever. Wreck-It Ralph dropped just 33% in its second weekend for a domestic take of $33 million, bringing its total to $93.6 million in its first 10 days of release. Globally the film has earned over $200 million to date. Disney’s The Lion King Celebrates 15 Years on Broadway Disney’s landmark musical event, The Lion King, celebrated 15 grossing and fifth longest-running show in Broadway history, the years on Broadway, November 13, at the Minskoff Theatre. show is routinely the No. 1 Broadway show in a given week, a feat previously unimaginable for a show at this stage in its life. As As it enters its 16th year, The Lion King is in a position it celebrates 15 years, the show, far from slowing, has actually unprecedented in the history of Broadway. Already the highest- strengthened recently. To take but one representative bit of data, 25,000 more tickets were sold in its 15th year than in the 14th and 50,000 more tickets were sold than in the 10th. Among the most successful titles in entertainment history, its worldwide footprint is more remarkable still. With a cumulative gross in excess of $5 billion, the title has already earned more than the biggest hit films in movie history: more than the Lord of the Rings trilogy combined and more than Avatar and Titanic, the No.