Walt Disney Company (the) · NYSE:DIS
Walt Disney Company (the) — Q4 2023 Earnings Presentation
26 slides from Walt Disney Company (the)'s earnings presentation, Nov 8, 2023
Slide 1: Q4'23 Earnings Presentation
The ar Dionep Company Q4'23 EARNINGS PRESENTATION NOVEMBER 8, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements and information in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding earnings expectations and expected drivers; future cost reductions
Slide 3: Key Building Opportunities
— F = Streaming Profitability * Focused on achieving significant and sustained profitability * Continuing to improve our DTC offerings with high quality content, new advertising tools and a more unified experience for subscribers * Capturing opportunities in pricing, marketing, programming, and adve
Slide 4: On Track to Achieve $7.5 Billion of Cost Savings
On Track to Achieve $7.5 Billion of Cost Savings by the end of Fiscal 2024 * By the end of fiscal 2024, we expect to reduce annualized SG&A and other operating costs as well as our entertainment cash content spend (excluding sports) by approximately $7.5 billion, nearly $2 billion ahead of our origi
Slide 5: Investing in Our Businesses
Investing in Our Businesses (Full Year Values in Billions) Spend on Produced and Licensed Content Capital Expenditures * Fiscal 2023 spend on produced and licensed content, including sports + Fiscal 2023 capital expenditures totaled $5 billion, roughly comparable to rights, was $27 billion, nearly $
Slide 6: Expect Continued Improvement in Cash Generation
Expect Continued Improvement in Cash Generation (Full Year Values in Billions) We expect a significant year over year increase in free cash flow in fiscal 2024, approaching levels we last achieved pre-pandemic. $14.3 $13.1 $12.3 $10.9 $9.9 $9.8 gaq 587 $7.6 $6.6 $6.0 $5.6 $6.0 $4.9 $3.6 $2.0 Sy $1.1
Slide 7: Business Results
BUSINESS RESULTS ©Disney Fourth Fiscal Quarter Ended September 30, 2023
Slide 8: Q4 Results for Fiscal 2023
Q4 Results for Fiscal 2023 (In Billions, Except Per Share Amounts) $0.82 21.2 3.0 $20.2 g 8 $1.6 $1.0 $0.30 $0.14 $0.4 $0.09 a4'22 04'23 Q4'22 04'23 04'22 04'23 a4'22 04'23 Q4'22 04'23 Revenues Income from Continuing Total Segment Diluted EPS from Diluted EPS Operations Before Operating Income") con
Slide 9: Full Year Results for Fiscal 2023
Full Year Results for Fiscal 2023 (In Billions, Except Per Share Amounts) $3.76 $88.9 $12.1 gue $3.53 $82.7 $1.75 5.3 7 i $1.29 FY22 FY22 FY22 FY23 FY22 FY22 FY23 Revenues Income from Continuing Total Segment Diluted EPS from Diluted EPS Operations Before Operating Income") continuing operations exc
Slide 10: Recent Business Highlights
Recent Business Highlights Elemental has earned nearly $500 million at the global box office!) and had a strong start on Disney+, ) with 26.4 million views in its first five days of streaming ESPN platforms are on pace for their most-watched college football season since 2019 among P18-49 viewers, a
Slide 11: Q4 Entertainment Results
Q4 Entertainment Results {In Billions) Revenues Linear Networks Linear Networks $5.0 * Operating income was flat to the prior year, reflecting lower advertising and affiliate $4.5 - revenues, which were generally offset by a decrease in marketing and programming Direct-to-Consumer CSLO and productio
Slide 12: Q4 Disney+ Core Subscribers & ARPU
@4 Disney+ Core Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USD) ~\ Q4’23 vs. “Penept Domestic!) Subscribers Q422 —qa'23 Disney+ Domestic!) 46.4 46.0 46.5 +0.1 40.5 * Subscribers increased by 0.5 million vs. the prior quarter. ° ARPU inc
Slide 13: Q4 Sports Results
Q4 Sports Results {In Billions) Revenues ESPN Domestic ESPN Domestic $3.4 $3.5 * Results increased primarily due to lower programming and production costs, growth in subscription revenue at ESPN+ due to both pricing and subscriber ESPN International growth, and lower marketing costs, partially offse
Slide 14: Combined DTC Streaming Businesses
Combined DTC Streaming Businesses Quarterly Operating Losses") (In Billions) Q4'22 qQt'23 Q2'23 Q3'23 Q4'23 * Q4 combined DTC streaming businesses operating losses have improved by $1.1 billion vs. the prior year driven by revenue growth and cost reductions. * Sequentially, operating losses for the
Slide 15: Q4 Experiences Results
Q4 Experiences Results (In Billions) Revenues Domestic Parks & Experiences Domestic Parks & $5.4 * Operating income increased vs. the prior year as Disney Cruise Line, EEMELese $5.0 Disney Vacation Club and Disneyland Resort delivered strong year Int’l Parks & over year growth. Experiences * Walt Di
Slide 16: Appendix
APPENDIX Fourth Fiscal Quarter Ended September 30, 2023 | 15
Slide 17: Recent DTC Services Pricing Changes
Recent DTC Services Pricing Changes (U.S. price changes as announced on August 9, 2023) Monthly Annual % % New Price Old Price Increase New Price Old Price Increase Disney+@) Basic (With Ads) $7.99 §7.99 N/A N/A Premium (No Ads) $13.99 §10.99 27% §139.99 $109.99 27%, Hulu (SVOD Only)(4) Basic (With
Slide 18: Fiscal 2024 — Selected Sports Timing Comparisons
Fiscal 2024 — Selected Sports Timing Comparisons (As of November 8, 2023; items are not exhaustive; subject to change) Qi Q2 Q3 a4 No Big 10 renewal in FY24 ICC T20 in FY24 (DTC only) : (held rights in Q1 of FY23) vs. in Q1 of FY23 New SEC deal begins Net shift of 1 College Football Playoff game, in
Slide 19: Upcoming Parks and Experiences Openings & Events
Upcoming Parks and Experiences Openings & Events (Reflects publicly announced planned openings and events as of November 8, 2023; list is not exhaustive; subject to change) November 10, 2023 November 20, 2023 Adventureland Treehouse World of Frozen Disneyland Resort Hong Kong Disneyland Resort Decem
Slide 20: DTC Product Descriptions and Key Definitions
DTC Product Descriptions and Key Definitions Product offerings In the U.S., Disney+, ESPN+ and Hulu SVOD Only are each offered as a standalone service or together as part of various multi-product offerings. Hulu Live TV + SVOD includes Disney+ and ESPN+. Disney+ is available in more than 150 countri
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes total segment operating income, diluted EPS excluding certain items, DTC streaming businesses operating losses, and free cash flow, all of which are important financial measures for the Company, but are not financial measures defined by GAAP. Th
Slide 22: Reconciliation of Total Segment Operating Income for Q4 & FY23
Reconciliation of Total Segment Operating Income for Q4 & FY23 (In Millions) The following table reconciles income from continuing operations before income taxes to total segment operating income (in millions): Quarter Ended Year Ended Sept. 30, 2023 Oct. 1, 2022 Change Sept. 30, 2023 Oct. 1, 2022 C
Slide 23: Reconciliation of Diluted EPS Excluding Certain Items for Q4
Reconciliation of Diluted EPS Excluding Certain Items for Q4 (In Millions except EPS) The following table reconciles reported diluted EPS from continuing operations to diluted EPS excluding certain items for the fourth quarter: Pre-Tax Tax Benefit/ After-Tax 2 Diluted eps) Change vs. prior Income/ L
Slide 24: Reconciliation of Diluted EPS Excluding Certain Items for FY23
Reconciliation of Diluted EPS Excluding Certain Items for FY23 (In Millions except EPS) The following table reconciles reported diluted EPS from continuing operations to diluted EPS excluding certain items for the year: Pre-Tax Tax Benefit/ After-Tax Change vs. prior (in millions except EPS) incorne
Slide 25: Reconciliation of DTC Streaming Businesses Operating Losses
Reconciliation of DTC Streaming Businesses Operating Losses for Q4 & FY23 (In Millions) The following tables reconcile the Entertainment and Sports segment operating income (loss) to the DTC streaming businesses operating loss: Quarter Ended Sept. 30, 2023 October 1, 2022 DTC Streaming DTC Streaming
Slide 26: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow (In Millions) The following table reconciles the Company’s consolidated cash provided by continuing operations to free cash flow: Year Ended Oct. 3, Oct.1, Sept.30, Sept.29, Sept.28, Oct. 3, Oct. 2, Oct.1, Sept. 30, 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cash p
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