© Disney 2013 Workers’ Compensation at The Walt Disney Company National Council of Self- Insurers May 20, 2013

© Disney 2013 The Walt Disney Company Media Networks 2012 Revenue: $19.4B USD Theme Parks and Resorts 2012 Revenue: $12.9B USD Consumer Products 2012 Revenue: $3.3B USD Studio Entertainment 2012 Revenue: $5.8B USD Interactive Media 2012 Revenue: $845M USD

© Disney 2013 Strategic Direction and Alignment Profit Center Management Corporate Risk Management Corporate Insurance Studio/Corp Safety ABC Risk and Environmental WDW Risk Management Disneyland Risk Management ABC Sports ABC Owned and Operated Stations ESPN World wide Broadcasting International Development ABC Broadcast Operations Disney Regional Entertainment

© Disney 2013 Primary Workers’ Compensation Concerns Theme Parks & Resorts – Over 95,000 Cast Members Media Networks – News, sporting events and broadcasting support Consumer Products – Retail stores and distribution centers Studio Entertainment – Motion picture and television production

© Disney 2013 Self-insured WC Claims

© Disney 2013 Claims Organization Theme Parks: Self-insured in California Self-insured in Florida Self-administered by local Disney team All Other BU’s: High-deductible 3 rd party insurance Primary in Disney captive Administered by TPA

© Disney 2013 Claims Organization Formed January ‘03 for: Workers’ Compensation General Liability Auto Liability Other coverages TPA is overseen by corporate RM staff

© Disney 2013 Claims Organization Four tiers of “insurance”: Guaranteed cost for smaller business units Three levels of retro plans for larger businesses Evaluated within 1 st year and adjusted Motivates safety and loss reduction Degree of self-insurance tied to capacity of the business unit to bear the risk

© Disney 2013 Key Claims Practices Across all claims administrators: Early contact and communication Return to work Delivery of medical care Financial responsibility Integration with safety and loss control

© Disney 2013 Return-to-work The best result for both the injured worker and employer Requires a clear understanding and documentation of job requirements “Recovery at Work” philosophy with restriction management Communication and dialogue are essential

© Disney 2013 Delivering Medical Care On-site medical and occupational clinics Medical provider networks Effective case management Controlling pharmacy costs Physical therapy and athletic trainers

© Disney 2013 Financial Responsibility Develop and apply a clear reserving philosophy Estimate the probable future costs for benefits that may be due Maintain consistency Engage the actuarial consultants Drive costs to the profit center

© Disney 2013 Integration with Safety Loss prevention, loss control and risk management must work together to achieve success Safety, Industrial Health and Fire and Property Protection Professionals Risk Management and Insurance Claims Management and Service Teams Safety and claims teams exchange information about losses and possible prevention Effective claims management reduces insurance costs and improves the program Effective safety programs attract more competitive insurers and lower premiums

© Disney 2013 Workers’ Compensation Team You can design and create, and build the most wonderful place in the world. But it takes people to make the dream a reality. Walt Disney

© Disney 2013 The End