Walt Disney Company (the) · NYSE:DIS
Walt Disney Company (the) — Q1 2023 Earnings Presentation
30 slides from Walt Disney Company (the)'s earnings presentation, Feb 8, 2023
Slide 1: Q1'23 Earnings Presentation
re Q1'23 EARNINGS PRESENTATIO FEBRUARY 8, ‘*¥ a
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our business or financial prospects, trends or outlook; business plans; demand pip
Slide 3: Additional Information
Additional Information Additional Information and Where to Find it Disney has filed with the SEC a definitive proxy statement on Schedule 144, containing a form of WHITE proxy card, with respect to its solicitation of proxies for Disney's 2023 Annual Meeting of Shareholders. This communication is no
Slide 4: The Board and Management Are Executing Our Strategic Plan
THE BOARD AND MANAGEMENT ARE EXECUTING OUR STRATEGIC PLAN TO CREATE SUSTAINABLE SHAREHOLDER VALUE First Fiscal Quarter Ended December 31, 2022 3
Slide 5: The Walt Disney Company
The Wat Dienep Company e 100 years of unparalleled storytelling and innovation e@ Creative excellence is, and always will be, central to who we are C ) Cherished intellectual property and beloved characters for all ages @ Unmatched longevity of our core franchises @ Unique ability to distribute and
Slide 6: Proactively Executing on Key Strategic Priorities
Proactively Executing on Key Strategic Priorities “_ i : $ e . ? e~ Reorganizing leadership structure Implementing cost reductions and Working towards achieving both to put more decision-making back streamlining organizational structure sustained growth and profitability in the hands of creative tea
Slide 7: Strategic Reorganization Designed to Optimize Future Growth, Profitability and Value Creation
Strategic Reorganization Designed to Optimize Future Growth, Profitability and Value Creation * Reorganizing Disney to be driven by creativity, rooted in accountability and coordination and committed to efficiency * Three core business units headed by experienced leaders who will have operational co
Slide 8: Targeting $5.5 Billion of Cost Savings
Targeting $5.5 Billion of Cost Savings The reorganization will result in a more cost-effective, coordinated and streamlined company and we are committed to running our businesses more efficiently to enhance profitability $5.5 * We expect to reduce annualized non-content-related expenses (SG&A and ot
Slide 9: Architecting a Durable Streaming Model
Architecting a Durable Streaming Model to Achieve Both Sustained Growth and Profitability Operating Efficiencies Drive Returns on Content Grow Global Subscribers Streamline Operations Focus on our core franchises, aggressively curate general entertainment, and evaluate / rationalize spend Drive effi
Slide 10: We've Built a Strong Parks Business Model
We've Built a Strong Parks Business Model that Paves the Way for an Exciting Future Focused on Delivering a Better Guest Experience Continue to Bring our Stories and Characters to Life in New Ways + Using reservation system to manage attendance during peak holiday weeks, to nearly 20% below pre-pand
Slide 11: Focusing on and Significantly Investing in our Core Franchises
Focusing on and Significantly Investing in our Core Franchises We are reducing costs by focusing on our broad portfolio of quality franchises and a more curated selection of general entertainment, and then maximizing this content across our multiple platforms from linear and theatrical distribution
Slide 12: Optimistic About Our Ability to Declare a Dividend by End of 2023
Optimistic About Our Ability to Declare a Dividend by the End of Calendar Year 2023 * Disney has maintained a disciplined and balanced approach to capital allocation Total Shareholder Return” Bob Iger as CEO (09/30/05 to 02/25/20) * The dividend was an important component of Disney’s Total Sharehold
Slide 13: CEO Succession is a Top Board Priority
CEO Succession is a Top Board Priority Succession Planning Committee Members © Mark Parker named Chairman of the Board in January 2023 to be effective following the Annual Meeting Leading voice on Disney Board regarding important subjects including ‘ engaging and managing creative talent, businesses
Slide 14: Business Results
BUSINESS RESULTS
Slide 15: Q1 Results for Fiscal 2023
Q]1 Results for Fiscal 2023 (In Billions, Except Per Share Amounts) $23.5 $3.3 $1.06 peu ey) - $0.99 $0.70 0.63 mn | Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Revenues Income from Continuing Total Segment Diluted EPS from Diluted EPS Operations Before Operating Income continuing op
Slide 16: Recent Business Highlights
Recent Business Highlights aa Won a total of nine Golden Globes, more than any a other entertainment company Avatar: The Way of Water has become the fourth 4 iq biggest film of all time globally with close to $2.2 + ¥ Dp =e U ili i (1) Billien/ canned ak te bowathice taldate * Including for Abbott E
Slide 17: Q1 Media & Entertainment Distribution Results
Q1 Media & Entertainment Distrioution Results Revenues $1.7 $73 Linear Networks Direct-to-Consumer CSLO Elimination of Intrasegment Revenues!) ($0.2) ($0.3) Q1'22 Q1'23 Operating Income (Loss) $1.5 $1.3 Linear Networks Direct-to-Consumer ($0.1) ($0.6) CSLO ($1.4) Qu'22 Qu'23 {In Billions) Linear Net
Slide 18: DTC Quarterly Operating Income (Loss)
DTC Quarterly Operating Income (Loss) (In Billions) Q1'22 Q2'22 Q3'22 04'22 Q1'23 DTC OI (Loss) ($1.1) ($1.5) DTC Revenues and Expense Breakdown $5.8 $5.3 $4.7 $4.9 ll Revenues i Programming & Production Costs SG&A & Other ml Other Operating Expense ml Depreciation & Amortization Note: All quarters
Slide 19: Q1 Disney+ Subscribers & ARPU
Q]1 Disney+ Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USD) .e. “ Q1’23 vs. “Denep+ Core Subscribers TEA oFP 102.9 104.3 420.3 +14 84.0 Qu'22 Q4'22 Q1'23 “Penep+ hotstar Subscribers 61.3 11.6 3.8 73) 57.5 + (3.8) Q1'22 Q4'22 Q1'23 Total
Slide 20: Q1 Hulu and ESPN+ Subscribers & ARPU
Q1 Hulu and ESPN+ Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USD) h I . Qu’23 vs. UIU subscribers 7 Gon Hulu Total Hulu”) 45.3 47.2 48.0 42.7 +0.8 * Both subscribers and ARPU grew vs. the prior quarter. LiveTV + SVOD 40.2 +0.1 * Hulu SV
Slide 21: Q1 Parks, Experiences & Products Results
Q]1 Parks, Experiences & Products Results (In Billions) Revenues Domestic Parks & Experiences $8.7 +$1.5 /+21% * Significant revenue and operating income growth vs. prior year was $7.2 achieved despite purposefully reducing capacity during select peak Consumer Products holiday periods by ~20% vs. pr
Slide 22: Appendix
APPENDIX First Fiscal Quarter Ended December 31, 2022 22
Slide 23: Recent Changes Announced at Domestic Parks
Recent Changes Announced at Domestic Parks RESORT Disneyland. <P yfenep World. * Offering nearly two months-worth of dates for our lowest-priced « We’ve announced that we will soon be adding more flexibility one-day, one-park ticket in 2023 for Walt Disney World Annual Passholders to be able to visi
Slide 24: Upcoming Theatrical Releases
Upcoming Theatrical Releases (Reflects publicly announced planned releases as of February 8, 2023) SS Te Feb 17, 2023 Ant-Man and the Wasp: Quantumania Marvel Apr 21, 2023 Chevalier Searchlight May 5, 2023 Guardians of the Galaxy Vol. 3 Marvel May 26, 2023 The Little Mermaid Disney Jun 2, 2023 The B
Slide 25: Key Upcoming Disney+ and Hulu Releases
Key Upcoming Disney+ and Hulu Releases (Reflects publicly announced planned domestic releases as of February 8, 2023; list is not exhaustive) a cc March 1 The Mandalorian (Season 3) Star Wars Disney Scripted Series March 17 Bono & The Edge: A Sort of Homecoming with Dave Letterman Disney Disney Unsc
Slide 26: Upcoming Theme Park Openings & Events
Upcoming Theme Park Openings & Events (Reflects publicly announced planned openings and events as of February 8, 2023; list is not exhaustive) Feb 24, 2023 “Magic Happens” Parade Disneyland Resort March 2023 Mickey’s Toontown Transformation Disneyland Resort Apr 3, 2023 “Happily Ever After” Nighttim
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: Total Segment Operating Income
Total Segment Operating Income (In millions) The following are reconciliations of income from continuing operations before income taxes to total segment operating income: Quarter Ended December 31, January 1, 2022 2022 Change Income from continuing operations before income taxes $1,773 $1,688 5% Add
Slide 29: Diluted EPS Excluding Certain Items
Diluted EPS Excluding Certain Items (In millions except EPS) The following table reconciles reported diluted EPS from continuing operations to diluted EPS excluding certain items: Pre-Tax Tax Benefit/ After-Tax Change vs. Income/ Loss Expense” Income/ Loss” Diluted EPS ° prior year period Quarter En
Slide 30: 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
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