Walt Disney Company (the) · NYSE:DIS
Walt Disney Company (the) — Proxy Contest (February 2024)
29 slides from Walt Disney Company (the)'s proxy contest presentation, Feb 8, 2024
Slide 1: Shareholder Materials
Shareholder Materials
Slide 2: The Walt Disney Company Q1'24 Earnings Presentation
The Walt Disney Company Q1' 24 EARNINGS PRESENTATION
Slide 3: 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 4: Disney's New Era of Building is Well Under Way
Disney's New Era of Building is Well Under Way • ESPN's domestic sports business continues to grow year over year JI/a+ ,; Future of W ~ +,., ESPN • We have plans to form a JV with Fox and Warner Brothers Discovery to launch a streaming sports service(ll • The official launch of a stand-alone ESPN s
Slide 5: Confident in the Value of Sports and the Power of ESPN
Confident in the Value of Sports and the Power of ESPN, the # 1 Sports Media Brand For Every Generation ESPN increased its overall audience in calendar year 2023 across platforms • Linear ratings increased for the third consecutive year, finishing up +2% in P2+ and up +3% in P18-49 • ESPN+ finished
Slide 6: Continuing to Build ESPN into the Preeminent Digital Sports Brand
Continuing to Build ESPN into the Preeminent Digital Sports Brand, Allowing us to Reach Fans in Compelling New Ways New Planned JV with Fox and Warner Brothers Discovery(1) • JV to build an innovative new platform to house a compelling streaming sports service • Scheduled to launch in the fall of 20
Slide 7: Focused on Building Streaming into a Profitable Growth Business
Focused on Building Streaming into a Profitable Growth Business We expect ongoing subscriber growth over the longer term to be driven by: The continued global strength of our content slate Advancing our paid sharing efforts Technology advances that are intended to improve our content promotion and d
Slide 8: Our Best-in-Class Storytelling Continues to Achieve Critical Success
Our Best-in-Class Storytelling Continues to Achieve Critical Success + + Earned 20 Academy Award nominations, more than any other company Nominations span the company's content brands and platforms including 20th Century Studios, Lucasfilm Ltd., Marvel Studios, Pixar Animation Studios, Searchlight P
Slide 9: Robust Slate of New Theatrical Releases
We Have a Robust Slate of New Theatrical Releases as We Continue Revitalizing Our Creativity 2024 2025 2026+Kingdom of the Planet of the Apes Inside Out 2 DEADPOOL ALIEN ROMULUS MOANA 2 MUFASA CAPTAIN AMERICA BAAVE NEW WORD Frozen 3 First Toy Story movie since 2019 Fantastic Four New Star Wars movie
Slide 10: Experiences Business Brings IP to Life Across Our Theme Parks
Our Industry Leading Experiences Business Continues to Bring Our World-Renowned IP to Life Across Our Theme Parks Expansions Transformations Journey of Water, Inspired by Moana October 16, 2023 Disneglan~. World of Frozen Zootopia Disneyland Hotel Pixar Place Hotel November 20, 2023 December 20, 202
Slide 11: New Opportunities for Consumers to Engage with Our Characters and Franchises
We're Creating New Opportunities for Consumers to Engage with Our Characters and Franchises Disney is a Leading Games Licensor Working with Best-in-Class Developers and Publishers • Disney's games business continues to deliver strong results since it shifted to a licensing business model in 2016 • T
Slide 12: Increasing July Dividend by 50% and Targeting $3 Billion Share Repurchases
Increasing our July Dividend Payment by 50% and Targeting $3 Billion of Share Repurchases in Fiscal 2024 We see ample opportunity to increase shareholder returns as our earnings and free cash flow continue to grow On a total company basis, we are still on pace to meet or exceed our $7.5 billion annu
Slide 13: Business Results
BUSINESS RESULTS First Fiscal Quarter Ended December 30, 2023 I 11
Slide 14: Q1 Results for Fiscal 2024
Q 1 Results for Fiscal 2024 {In Billions, Except Per Share Amounts) Q1'23 Q1'24 Revenues $23.5 $23.5 $1.22 $3.9 $1.04 $3.0 $2.9 $0.70 $1.8 $0.99 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Income Before Total Segment Diluted EPS Diluted EPS Income Taxes Operating lncomel1) Excluding Certain ltem
Slide 15: Q1 Entertainment Results
Q 1 Entertainment Results Revenues Linear Networks $5.5 $4.8 Direct-to-Consumer CSLO $2.8 $2.7 $1.6 Q1'23 Q1'24 Operating Income (Loss) Linear Networks $1.3 $1.2 Direct-to-Consumer CSLO __($0.0) ($0.1)($0.2) ($1.0) Q1'23 Q1'24 {In Billions} Linear Networks • Operating income decreased vs. the prior
Slide 16: Entertainment DTC Quarterly Results
Entertainment OTC Quarterly Results {In Billions) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Operating Loss ($1.0) Revenue $4.8 $5.0 $5.0 $5.0 $5.5 • Q1'24 Entertainment OTC operating loss improved by about $850 million vs. the prior year and by nearly $300 million vs. Q4'23 • Revenue increased sequentially by o
Slide 17: Disney+ Core Subscribers & ARPU
Q 1 Disney+ Core Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USO) ~sNEf+Domestic(1) Subscribers 46.5 46.6 46.1 Q1'23 Q4'23 Q1'24 ~sNEf+ lnternational{3) Subscribers 66.1 65.2 Q1'23 Q4'23 Q1'24 Disney+ Domestic ARPU(1l $5.95 $7.50 $8.15 D
Slide 18: Hulu Subscribers & ARPU
Q 1 Hulu Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USO) Q1'24 vs. hulu Subscribers Q1'23 Q4'23 Total Hulu LiveTV + SVOD SVODOnly SVOD Only ARPU Live TV+SVOD ARPU 48.0 48.5 49.7 +1.7 +0.1 +1.2 +0.0 43.5 43.9 45.1 +1.6 +1.2 Q1'23 Q4'23 Q
Slide 19: Q1 Sports Results
Q 1 Sports Results {In Billions} ESPN Domestic Revenues • Operating income increased vs. the prior year driven largely by a ESPN Domestic $4.0 $4.1 decrease in programming and production costs from the timing of ESPN International College Football Playoff games Star • Domestic affiliate revenue in Q
Slide 20: Q1 Experiences Results
Q 1 Experiences Results {In Billions) Revenues Domestic Parks & Experiences Domestic Parks & $6.1 Experiences lnt'I Parks & Experiences Consumer Products Q1'23 Operating Income • Operating income increased vs. the prior year driven by Shanghai Disney Domestic Parks & $2.1 $2.1 Resort and Hong Kong D
Slide 21: Appendix
APPENDIX First Fiscal Quarter Ended December 30, 2023 I 19
Slide 22: Select Upcoming Theatrical Releases
Select Upcoming Theatrical Releases (Reflects publicly announced planned releases as of February 7, 2024: list is not exhaustive: subject to change) Date Title April 5, 2024 The First Omen 20th Century May 10, 2024 Kingdom of the Planet ofthe Apes 20th Century May 31, 2024 Young Woman and the Sea Di
Slide 23: Select Upcoming Disney+ and Hulu Releases
Select Upcoming Disney+ and Hulu Releases (Reflects publicly announced planned domestic releases as of February 7, 2024; list is not exhaustive; subject to change} Date Title Platform Type Early 2024 X-Men '97 Marvel Disney+ Scripted Series February 7 The Marvels Marvel Disney+ Feature Film February
Slide 24: Fiscal 2024 Selected Sports Timing Comparisons
Fiscal 2024 -Selected Sports Timing Comparisons (As of February 7, 2024; items are not exhaustive; subject to change) Ql Q2 Q3 Q4 ICC T20 in FY24 No Big 10 renewal in FY24 New SEC deal begins (held rights in Q1'23) vs. in Q1'23 Net shift of 1 College Football Playoff game, including 2 semi-final gam
Slide 25: Upcoming Parks and Experiences Openings & Events
Upcoming Parks and Experiences Openings & Events (Reflects publicly announced planned openings and events as of February 7, 2024; list is not exhaustive) Date Attraction / Event Location June 6, 2024 Fantasy Springs Tokyo Disney Resort June 2024 Disney Lookout Cay at Lighthouse Point Disney Cruise L
Slide 26: 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 countrie
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes diluted EPS excluding certain items and total segment operating income, both of which are important financial measures for the Company, but are not financial measures defined by GAAP. These measures should be reviewed in conjunction with the mos
Slide 28: Reconciliation of Diluted EPS Excluding Certain Items for Q1
Reconciliation of Diluted EPS Excluding Certain Items for Q 1 {In Millions except EPS) The following table reconciles reported diluted EPS to diluted EPS excluding certain items for the first quarter: ($ in millions except EPS) Pre-Tax Income/ Loss (1) Tax Benefit/ Expense After-Tax (2) Income/ Loss
Slide 29: Reconciliation of Total Segment Operating Income for Q1
Reconciliation of Total Segment Operating Income for Q 1 {In Millions) The following table reconciles income before income taxes to total segment operating income($ in millions): Quarter Ended Dec. 30, 2023 Dec.31,2022 Change Income before income taxes $2,871 $1,773 62% Add (subtract): Corporate and