Walt Disney Company (the) · NYSE:DIS
Walt Disney Company (the) — Proxy Contest (February 2024)
22 slides from Walt Disney Company (the)'s proxy contest presentation, Feb 26, 2024
Slide 1: The Future of Technology at The Walt Disney Company
ISNEY COMPANY THE FUTURE OF TECHNOLOGY AT THE WALT DISNEY COMPANY Excerpt of Blackwells’ investor presentation that will be released in the coming days. This excerpt and the full presentation, when available, can be found at https://thefutureofdisney.com/ BLACKWELLS CAPITAL ON: JOIN US IN REIMAGINEE
Slide 2: The views expressed in this presentation (the “Presentation”) represent the opinions of Blackwells Capital
The views expressed in this presentation (the “Presentation”) represent the opinions of Blackwells Capital LLC and/or certain of its affiliates (“Blackwells”) and the investment funds it manages that hold shares in The Walt Disney Company (the “Company”, “Disney” or “DIS”) . The Presentation is for
Slide 3: Disney's Technological Efforts Have Fallen Short
DISNEY’S TECHNOLOGICAL EFFORTS HAVE FALLEN SHORT Disney faces the following significant technological issues: Severe technological fragmentation between Disney’s segments and sub - segments ▪ Presently there is limited cohesion in the technological offices within Disney’s segments ▪ Resulting in unt
Slide 4: Eliminating technological fragmentation is a necessary first step
Eliminating technological fragmentation is a necessary first step Disney’s CTOs are buried under a corporate bureaucracy Multiple CTO positions must be rationalized DISNEY’S TECHNOLOGY DEPARTMENTS ARE FRAGMENTED Robert Iger CEO James Pitaro Chairman ESPN, The Walt Disney Company Alan Bergman Co - Ch
Slide 5: Disney's Technology Departments Are Fragmented (Cont'd)
DISNEY’S TECHNOLOGY DEPARTMENTS ARE FRAGMENTED (Cont’d) Disney’s peers are focused on fragmentation. Why isn’t Disney? CEO CTO (within C - Suite) Single Operating Segment • Film/TV Content • Apps for Consumers Apps for Producers • Games CEO “A company shouldn’t get addicted to being shiny, because s
Slide 6: Disney Innovates Far Less Than Peers
1% - 2% 7% - 8% 8% - 9% (2) 14% - 15% (1) DISNEY INNOVATES FAR LESS THAN PEERS Disney’s disclosures on R&D initiatives are anemic. Perhaps this is because they know they are falling short Disney meaningfully underspends on research and development in comparison to its peers Disney will never be valu
Slide 7: The Time Is Now
THE TIME IS NOW • The technology landscape is accelerating at an exponential rate and the opportunity is for Disney to be technology native, instead of bolting on technology services across fragmented platforms • AI is a transformative technology in the same way the Internet was in the 1990’s • Disn
Slide 8: Legacy Technology Infrastructure Must Be Rebuilt
… For Disney to regain status and to achieve dominance, its next CEO must have their roots in technology Source: CEOWORLD Magazine - World’s Most Influential and Innovative Companies, 2024. LEGACY TECHNOLOGY INFRASTRUCTURE MUST BE REBUILT 3 Disney’s lack of investment and lack of focus have left us
Slide 9: Disney Needs a Technology Native Stack
Technology reorganization that emphasizes a native stack provides for personalization of consumer experience Next - Gen Platforms Infrastructure New Technology Streaming | Apps | Media | Parks Spatial Computing Artificial Intelligence (AI) Augmented Reality (AR) Virtual Reality (VR) Examples: • AR a
Slide 10: Mediocrity in Spatial Computing & Artificial Intelligence
MEDIOCRITY IN SPATIAL COMPUTING & ARTIFICAL INTELLIGENCE Disney’s peers have been innovating in AI and spatial computing far quicker than Disney and are leading the sectors Spatial computing, has far more relevance to Disney than it does to either Apple or Meta Disney understands the risks of medioc
Slide 11: Disney's Initiatives Should Be Far More Impressive
Its Photopass Lenses and AR filters are the same technology that has been prevalent in apps such as Snapchat for years DISNEY PHOTOPASS LENSES AR - ENABLED SHORT FILMS DISNEY’S INITIATIVES SHOULD BE FAR MORE IMPRESSIVE 4 Source: Company materials. 11 STRICTLY CONFIDENTIAL & TRADE SECRET
Slide 12: Disney's Initiatives Should Be Far More Impressive (Cont'd)
DISNEY’S INITIATIVES SHOULD BE FAR MORE IMPRESSIVE (Cont’d) HOLOTILE DISNEY+ ON APPLE VISION PRO Disney’s cutting - edge AI and spatial computing initiatives are stale at best, and follow a reactionary trend Disney should be dominating in these fields and yet it seems they are being dominated 4 Sour
Slide 13: Case Study: Disney's Artificial Intelligence Flywheel
• Disney must produce an artificial intelligence strategy, and share elements of that strategy with its shareholders • Disney must leverage its customer experience data to guide creative endeavors, physical and virtual experiences, and content strategies • Once Disney’s technology mindset is properl
Slide 14: Case Study: Disney as an AI Leader (Cont'd)
CASE STUDY: DISNEY AS AN AI LEADER ( Cont’d ) 14 STRICTLY CONFIDENTIAL & TRADE SECRET • Real - Time Crowd Management : Implement AI algorithms to analyze foot traffic patterns within the park in real - time - Disney can dynamically adjust the flow of guests, redistributing crowds to alleviate conges
Slide 15: Case Study: Spatial Computing - Introducing the Holo Kingdom
Introducing the Holo Kingdom! 15 STRICTLY CONFIDENTIAL & TRADE SECRET • Disney has the unique opportunity to become a technological innovator in holographic environments • A four - wall holographic environment maybe just the beginning of Disney’s next - gen interactive offerings. Disney’s current Ho
Slide 16: Disney Won't Be Valued as a Tech Company Until It Thinks Like One
Disney should make changes at the organizational level to support a technology - native transformation • Corporate CTO : Technology office that spans across all Disney assets and business segments • NOT just for Entertainment and Sports as currently structured • NOT just IT and tech support • An inn
Slide 17: Disney Board lacks meaningful entrepreneurship experience
Although Disney prides itself on innovation, it lacks meaningful entrepreneurship experience on the Board The Board today has an abundance of former large company CEOs and executives from industries such as automobile manufacturing, pharmaceuticals, banking, and corporate infrastructure technology,
Slide 18: Disney Must Double Down on Innovation
DISNEY MUST DOUBLE DOWN ON INNOVATION Fortune 500 Rank Product Rank Process Rank Culture Rank Name Rank 8 2 29 30 Alphabet 1 136 16 16 9 Salesforce 2 14 3 52 57 Microsoft 3 91 6 35 37 Oracle 4 49 4 55 49 IBM 5 3 1 47 122 Apple 6 31 7 54 52 Dell Technologies 7 - 28 23 14 Munchkin 8 23 8 39 65 Verizon
Slide 19: Leah Solivan Knows About Technology & Innovation
LEAH SOLIVAN KNOWS ABOUT TECHNOLOGY & INNOVATION Executive Experience ▪ Managing Director at Fuel Capital L.P., a venture capital firm investing in consumer, software as a service (SaaS) and infrastructure companies, where she manages three high performing funds, with over seven unicorn companies ac
Slide 20: Potential share price increase from AI
$107.74 $156.84 $246.96 Current Share Price Low End: 46% Increase from AI High End: 129% Increase from AI $2.1 $1.8 $1.1 $0.9 $0.4 $2.8 $3.0 $1.8 $1.8 $1.9 AAPL MSFT GOOGL AMZN NVDA Jan - 23 Current Source: Capital IQ, Accel Euroscape Note (1) Inferred based on the AAPL, MSFT, GOOG, AMZN, NVDA share
Slide 21: The Future of Technology Starts Today
THE FUTURE OF TECHNOLOGY STARTS TODAY Disney’s potential in the AI and spatial computing spaces cannot be understated. Blackwells’ five step plan to ensure tech dominance is as follow: Elect Blackwells’ nominee Leah Solivan to the Board to increase technology and entrepreneurship experience and expe
Slide 22: Exhibit: Blackwells Capital press release
22 STRICTLY CONFIDENTIAL & TRADE SECRET Exhibit 2 Blackwells Capital Releases its Vision for the Future of Technology at Disney Excerpt from its Upcoming Investor Presentation Available at www.TheFutureOfDisney.com Blackwells’ CIO Releases Video Discussing Key Aspects of its Campaign Available At ww