1. The Walt Disney Company It all started with a mouse…

2. Try to imagine a world without Walt Disney……. A world without his magic, whimsy, and optimism…Walt Disney transformed the entertainment industry into what we know today. He was a pioneer in the world of animation, education and broadcasting….he was in the business of making dreams come true

3. Disney Mission Disney's overriding objective is to create shareholder value by continuing to be the world's premier entertainment company from a creative, strategic, and financial standpoint. " We are not trying to entertain the critics. I'll take my chances with the public." Walt Disney

4. Disney/Pixar Deal Disney secured animation division with the $7.4 B acquisition of Pixar Each Pixar share yields 2.3 Disney shares Steven Jobs becomes largest Disney shareholder and new board member Will pass to family Pro for Pixar – recent b.o. slide, cash out Pro for Disney – price could increase if Ratatouille a big hit!

5. Pixar Track Record Budget Toy Story$30M A Bug’s Life$45M Toy Story 2$90M Monsters, Inc.$115M Finding Nemo$93M The Incredibles $92M Cars$120M Ratatouille$150M Wall*E$180M Up$175M Toy Story 3$200M Cars 2$200M Box Office Revenue (US)(WW) $192M$358M $163M$358M $246M$486M $256M$529M $340M$865M $261M$624M $244M$455M $206M$616M $224M$553M $293M$727M $414M$1.06B $191M$549M

6. Pixar Track Record FilmBudgetUS b.o. WW b.o. Brave$185M$237.2M$531M Monsters U$200M$268M$738M

7. Marvel Acquisition $4 billion 29% greater than market value Plan to continue to create value through comics and films Value greater as a unified company

8. Lucasfilm Acquisition $4 billion + Cash $2.21 billion and 37.1M shares of Disney Acquire film rights, Industrial Light and Magic, Lucas Sound, THX and the other consolidated companies

9. Timeline December 5, 1901 Walter Elias Disney is born in Chicago, Illinois As early as age seven he is selling sketches to neighbors for extra money After returning home from service with the Red Cross during WWI, he began a career in commercial art and started experimenting with animation.

10. Timeline Walt began producing the Alice Comedies but his company Laugh-O- Grams soon went belly- up So before he hit 21 – he headed to California and Hollywood He and his brother, Roy O. Disney started with $750 and set up shop in their uncle’s garage

11. Timeline 1928 – Mickey Mouse makes his debut in Steamboat Willie First synchronized sound cartoon 1932 – Walt wins his first Academy Award with Flowers and Trees Redoes film after completing 50% to be in color

12. Timeline 1937 – Snow White and the Seven Dwarfs is the first full-length animated musical feature Produced for $1,488,423 during the height of the Depression Considered a cinema classic and treasure

13. Snow White and the Seven Dwarfs – Why shift to full length pictures? Afforded the opportunity to tell a story for longer than 7 minutes Economic Necessity Silly Symphonies and Mickey Mouse were main attractions but earned fee $ instead of b.o.

14. Premiere Classic. Music, animation and story considered masterfully done. Some concern over the strength of some scenes for children (witch) Released by RKO Pictures December 21, 1937 Critics universally raved about the new cinema

15. Success? By the outbreak of WWII Snow White had grossed $8M world wide In some parts of the US given an ‘A’ certificate as unsuitable for small children Not lifted til the mid 1950s Profits driven into new facilities $10,000 down payment on 51 acres in Burbank for a new studio (total sale price $100k); Studio cost $3.8M Special Academy Award given by Shirley Temple Second feature Pinocchio (1940) did not return $ as quickly – why??

16. Timeline Over the next five years Pinocchio, Dumbo, Bambi, and Fantasia are released Personal tragedy strikes Walt in 1938 when his mother is accidentally killed in the new home Walt bought for his parents. A faulty furnace is to blame and Walt never forgives himself.

17. Timeline 1940 - Construction is completed on the Burbank studios and Disney now employs over 1,000 artists 1945 – The Three Caballeros combines live action with animation – a technique Walt reuses with Mary Poppins and Song of the South

18. Corporate Direction Studio moves from shorts to full length animated films …. What is next? Scope of Business - Entertainment

19. Timeline - Disneyland "We did it (Disneyland), in the knowledge that most of the people I talked to thought it would be a financial disaster - closed and forgotten within the first year."

20. Disneyland – The Deal Disney and ABC work together for the construction and opening of Disneyland ABC advances Disney $500K and guarantees all WED bank loans. ABC gets 35% ownership, 100% of concessions profits for 10 years and an 8 year commitment from Disney for use of its inventory of films to be shown in a one hour TV show.

21. DisneyLand Facts and direction Disneyland (the park) costs $17 million and includes 461 acres As of 2010 almost 600M have visited Disneyland; 15M+ last year Cars Land opens 2012 - $1.1B expansion

22. Diversification of DisneyLand Developed into a resort in the 1990’s California Adventure – February 8, 2001 6.28M visitors … theme issues have required reworking by the imagineers

23. A Deal’s a Deal! Disney Enters TV 1954 – began television production and programming One of the first to present full-color programming and held the patent for technicolor for two years Favorites – Mickey Mouse Club, Wonderful World of Disney

24. Setting Disney Sites Globally The vision of the Walt Disney Company was to develop a set of theme parks initially in the U.S. and then abroad Initial growth began with the focus on Central Florida Only 2% of Disneyland’s visitors were coming from East of the Mississippi

25. EPCOT – Experimental Prototype Community of Tomorrow 1965 – Walt began planning for the problems of urban development Personally directed the design of EPCOT Highlights creativity in American living

26. Timeline Disney World Walt directed the purchase of 47 square miles of land in central Florida. He envisioned that this land would be for Disney world Entertainment that would include amusement parks, hotels, resorts and EPCOT

27. Timeline – DisneyWorld October 1, 1971 Disney World Opens Magic Kingdom Contemporary Hotel Polynesian Hotel October 1, 1982 EPCOT opens May 1, 1989 Disney-MGM Studios Theme Park opens April 22, 1998 Animal Kingdom is opened

28. Timeline Today Disney World is now composed of the Orlando parks and resorts Magic Kingdom Animal Kingdom Epcot, Disney-MGM 3 water parks Downtown/ Westside Disney 33 hotels/vacation resorts Disney’s Wide World of Sports

29. Disney Visitors in 2010 Magic Kingdom – 16.97M Epcot – 10.83M Disney Hollywood Studios – 9.6M Animal Kingdom – 9.87M 2011 – 121.4 total WD parks

30. Disney Land Visitors Disneyland CA – 15.98m California Adventure – 6.29m Disneyland Paris – 10.5m Tokyo Disneyland – 14.45m Honk Kong Disneyland – 5.2m

31. Future Developments Golden Oaks 2011 World Of Animation Resort 2012 – recently opened Avatar Land 2017

32. Disney Parks WorldWide Tokyo Disney – Licensed by the Oriental Land Company and not owned by Disney Opened in 1983 Largest attendance of any theme park worldwide 494 acres, six miles from Tokyo Tokyo DisneySea added in 2001 Costs ran above $4 billion Similar in concept to Universal’s Islands of Adventure

33. Disney Parks WorldWide Disneyland Paris (originally EuroDisney) Grossly over budget ($2 billion) Poor management Employee and attendance problems 1995 began turnaround Space Mountain added New Name July 1995 came into the black Ultimately added Walt Disney Studios park (3/2002) and Disney Village

34. Disney Parks Expand Disney’s California Adventure added in 2001 in Anaheim Original idea was a “WestCot” Widely criticized for lack of kid rides, Disney icons Hong Kong Disney Opened in 9/2005, 311 acres Jointly owned with the Hong Kong government Smallest of Disney parks Attendance figures are lagging Moving forward with Shanghai park

35. Disney Facts Disney ranks 64 th on the Fortune 500 list Ranks above Coca-Cola, Dow Chemical, American Express, 3M World’s largest Media and Entertainment Conglomerate

36. Disney Products

37. Walt Disney Company Chairman of the Board and CEO Robert Iger Former CEO, Michael Eisner retires and resigns from BOD 9/05 Revenues 2011 $40,893 (million) in revenue $38.1 (billion) in 2010 (down 7% from 2010) EPS $2.53 vs. $2.03 in 2010 (+24% from 2010) Acquired Marvel and moving ahead with Shanghai Disney

38. Disney Holdings 5 vacation resorts 39 hotels 11 theme parks 6 record labels 11 cable television networks 2 water parks 8 motion picture studios Walt retained ownership of the trains and monorails at Disneyland via the RETLAW Company (Walter backwards) and was paid $.64 per person on ride until absorbed by Walt Disney Company in 1980s. 82% occupancy in 2011

39. Noteworthy Events Post Eisner Roy Disney dies in December 2009 Theme Park attendance rose Stock immediately rose by 2% by March 2005, after Eisner’s announcement Loss of attention to detail and quality, appearance of focus on profits and margins New ride Soarin’ simply a rehash of Soarin over California (California Adventure Rides) and Tower of Terror (Disney MGM ride), Nemo ride problematic Traditional animation to return in 2009 after reacquiring John Lassiter via Pixar buy

40. Walt Disney Company The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations in four business segments: Media Networks Studio Entertainment which produces live-action and animated motion pictures, television animation programs, musical recordings and live stage plays.; Consumer Products, which licenses the Company's characters and other intellectual property for use in connection with merchandise and publications and publishes books and magazines; Theme Parks and Resorts

41. Media Networks ABC TV Network 233 primary affiliates 99.9% market coverage 10 broadcast TV stations ABC Radio 8900 program affiliates on 4500 stations 130 million domestic listeners 27 radio station Radio Disney, ESPN radio

42. Media Networks Cable and International Broadcast Principally involved in production of programming Distributes to other cable broadcasters under Buena Vista TV, Disney TV and Touchstone TV Disney Cable Broadcasting Disney Channel Jetix Toon Disney SoapNet 80% ESPN 42% A&E/Lifetime 39.6% of E!

43. Studio Entertainment Produces and acquires live action motion pictures Touchstone Miramax and subsidiary Dimension Walt Disney Pictures Walt Disney Feature Animation DisneyToons Hollywood Pictures Buena Vista Home video Walt Disney Studios tops $1B at b.o. for 9 th time in 11 years and also tops $1B internationally BVHE – Finding Nemo becomes highest selling DVD ever! Released 7 of top 10 straight to DVDs BVI - $ tops 12.1B

44. Studio Entertainment Under the Walt Disney TV Produces, distributes animated TV and features Recorded Entertainment Walt Disney Records, Buena Vista Records, Hollywood Records and Lyric Street Original recordings, Soundtracks and read- alongs (edutainment) A Cinderella Story soundtrack strong Live Stage Production Broadway's Lion King and Beauty and the Beast

45. Film Divisions Walt Disney Pictures G rated family films generally Wall-e, Bolt Beverly Hills Chihuahua Touchstone Picture Dan in Real Life, Swing Vote Hollywood Pictures Miramax Pictures Studio Entertainment Operating Income only $618M, down 11%

46. Parks and Resorts Walt Disney Resort Animal Kingdom Magic Kingdom EPCOT MGM Studios Hotels and villas Conference centers Water parks Golf and Tennis Putt Income increased 18% last year

47. Parks and Resorts Walt Disney Imagineering Designs and updates all parks and resorts Oversees construction at these venues Disney Regional Entertainment ESPN Zone - dining and entertainment Disney Cruise Lines Disney Vacation Club

48. Parks and Resorts Royalties earned from Tokyo Disneyland (owned by Oriental Land Co.) Disney Sea Magic Kingdom in Paris (51%) Disneyland Hong Kong (47%) Disneyland and California Adventure Operating Income $1,123M

49. Consumer Products Products produced include: Electronics Hardware Publishing Buena Vista Games Baby Einstein Muppets License Disney Stores Disney Direct Marketing

50. Values that Make the Disney Brand Stand Out Innovation Quality Community Storytelling Optimism Decency

51. Disney Techniques The competition is anyone the customer compare you with LL Bean FedEx MTV

52. Disney Techniques Pay fantastic detail to detail Disney considers the entire 45,000 employees to be apart of the custodial crew at DisneyWorld Cinderella’s castle mural One sister has green cheeks (green with envy) and one with red cheeks (red with rage)

53. Disney Techniques Everyone Walks the Talk It is all about the way you do your job Disney is about magic and fun Every customer contact should be an opportunity to create value We don’t have employees – We have cast members

54. Disney Techniques Everyone walks the talk! The importance of sights unseen Clinton wears his Ironman watch Handstitched clothing from the period Although the customer may not see these details, the cast members do! Business cards Each cast member has original title and “customer relations associate”

55. Disney Techniques Customers are best heard through many ears Customer surveys Employees – Pixie Dust Super Greeters Incorporate characters in the software

56. Disney Techniques Reward, Recognize and Celebrate Guest Service Fanatic Card Delivered by managers in daily activities Spirit of Disney Award Another cast member nominates you and you could receive a silver name tag Letter Postings Focus on the Positive!!