Walt Disney Company (the) · NYSE:DIS

Walt Disney Company (the) — The Walt Disney Company — Investor Presentation (November 2017)

20 slides from Walt Disney Company (the)'s investor presentation, Nov 20, 2017

1. Slide 1: Walt Disney

   Walt Disney 20 November 2017 Copyright © PSG

2. Slide 2: Contents

   Contents 1. Nature of business 2. Recommendation 3. Financial review 4. Divisional review 5. Company guidance 6. Portfolio Guidance 2 Copyright © PSG

3. Slide 3: 01 Nature of business

   01 Nature of business 3 Copyright © PSG

4. Slide 4: Nature of business

   Nature of business Walt Disney Company is an entertainment company that conducts operations in media networks, studio entertainment, theme parks and resorts, consumer products, and interactive media 4 Copyright © PSG

5. Slide 5: 02 Recommendation

   02 Recommendation 5 Copyright © PSG

6. Slide 6: Overweight guidance- recommend exposure of up to 5.03%

   Overweight guidance- recommend exposure of up to 5.03% • Holds value on an absolute basis • Fairly valued on relative basis • Premium to large cap media competitors. 6 Copyright © PSG

7. Slide 7: Overweight guidance- recommend exposure of up to 5.03%

   Overweight guidance- recommend exposure of up to 5.03% • Determining a sustainable growth rate is complicated • Sustainability of cable network operations with cord cutting • TV advertising softness • OTT technologies and the evolving bandwidth efficiency of network providers -decouples the service

8. Slide 8: 03 Financial review

   03 Financial review 8 Copyright © PSG

9. Slide 9: Financial review

   Financial review • Revenue ↓ 1% to $55.2bn • Adjusted EBITDA flat at $16.5bn • Adjusted operating profit ↓ 2% • Adjusted operating margin 25.2% (2016: 25.4%) • PBT ↓ 3% • Higher net finance expense • PAT ↑3% • Lower effective tax rate • Headline earnings ↓ 4% • Higher losses at Hulu and BAMTech • Di

10. Slide 10: 04 Divisions

    04 Divisions 10 Copyright © PSG

11. Slide 11: Media Networks

    Media Networks Quarter Ended Year ended 30 Sep 17 30 Sep 16 Change 30 Sep 17 30 Sep 16 Change Revenue $5.5bn $5.7bn -3% $23.5bn $23.7bn -1% • Cable Networks $4.0bn $4.0bn - $16.5bn $16.6bn -1% • Broadcasting $1.5bn $1.7bn -11% $7.0bn $7.1bn -1% Operating income $1.5bn $1.7bn -12% $6.9bn $7.8bn -11%

12. Slide 12: Parks and Resorts

    Parks and Resorts Quarter Ended Year ended Operating Revenue 30 Sep 17 30 Sep 16 Change 30 Sep 17 30 Sep 16 Change Profit 9% 15% 12% Revenue $4.7bn $4.4bn 6% $18.4bn $17bn 8% 16% 43% 47% Operating income $746m $699m 7% $3.8bn $3.3bn 14% Margin 16.0% 15.9% 20.5% 19.4% 25% 33% 12 Copyright © PSG

13. Slide 13: Studio Entertainment

    Studio Entertainment Quarter Ended Year ended Operating Revenue 30 Sep 17 30 Sep 16 Change 30 Sep 17 30 Sep 16 Change Profit 9% 15% 12% Revenue $1.4bn $1.8bn -21% $8.4bn $9.4bn -11% 16% 43% 47% Operating income $218m $381m -43% $2.4bn $2.7bn -13% Margin 15.2% 21.0% 29.4% 32.7% 25% 33% 13 Copyright ©

14. Slide 14: Consumer products & Interactive media

    Consumer products & Interactive media Quarter Ended Year ended Operating Revenue 30 Sep 17 30 Sep 16 Change 30 Sep 17 30 Sep 16 Change Profit 9% 15% 12% Revenue $1.2bn $1.8bn -21% $4.8bn $5.5bn -13% 16% 43% 47% Operating income $218m $381m -43% $1.7bn $2.0bn -11% Margin 30.7% 32.9% 36.1% 35.5% 25% 3

15. Slide 15: Company guidance

    06 Company guidance 15 Copyright © PSG

16. Slide 16: Company guidance

    Company guidance • FY18 impacted by • Consolidation of Bamtech - $130m • Losses at Hulu - >$100m • Capex increase by > $1bn • Three new cruise completed in 2021/23 • Two Toy story lands • Two Star Wars lands • DTC offering • ESPN-branded sports service, ESPN+ • Disney branded DTC service • Repurchas

17. Slide 17: 07 Portfolio guidance

    07 Portfolio guidance 17 Copyright © PSG

18. Slide 18: Portfolio Guidance

    Portfolio Guidance • We the feel the share offers value at current levels • Strong balance sheet • Solid cash generation • Recommend a portfolio exposure of up to 5.03% 18 Copyright © PSG

19. Slide 19: Disclaimer

    Disclaimer The information and content made available through this webinar is provided by PSG as general information about the companies and their products and/or services. PSG does not guarantee the suitability or value of any information or particular investment source. Any information in this web

20. Slide 20: FAIS Affiliates of the PSG Konsult Group are authorised financial services providers.

    FAIS Affiliates of the PSG Konsult Group are authorised financial services providers. Copyright © PSG

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