EURO DISNEY S.C.A. * Euro Disney achieves record first quarter revenues
* Announces content of exciting new attractions program to fuel growth
* Confirms intention of second major investor in equity offering
------------------------------------------------------------------------ This press release is not an offer to sell or a solicitation to buy any
securities in the rights offering and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such offer, solicitation or
sale is unlawful. The rights offering will be made only by means of an offering
document complying with the applicable securities laws of the jurisdiction or
jurisdictions in which such rights offering shall be made. The securities
offered in the rights offering have not been and will not be registered under
the United States Securities Act of 1933 and may not be offered or sold in the
United States or in any other jurisdiction absent registration, an applicable
exemption from registration requirements or qualification under the applicable
securities laws of such jurisdiction.
------------------------------------------------------------------------ (Marne-la-Vallée, January 11, 2005) Euro Disney S.C.A., operator of Disneyland
Resort Paris, reported today record first quarter revenues, the primary content
of its Euro 240 million investment program and the intention of HRH Prince
Alwaleed Bin Talal Bin Abdul-Aziz Al-Saud (Prince Alwaleed) to invest in the
upcoming equity rights offering.
Record Revenues for the Three Months Ended December 31, 2004 Disneyland Resort Paris total revenues, including its Real Estate Segment,
increased 3% for the three months ended December 31, 2004 to a record Euro 268.9
million compared to the prior-year record of Euro 262.2 million on a pro-forma
basis.
(Unaudited) Variation
Three Months Ended December
31,
Pro-Forma1
(Euro in millions) 2005 2004 Amount %
Segment Revenues
Theme Parks 137.0 131.2 5.8 4 %
Hotels and Disney Village 96.5 102.7 (6.2) (6) %
Other 26.2 24.5 1.7 7 %
Resort Segment 259.7 258.4 1.3 1 %
Real Estate Segment 9.2 3.8 5.4 142 %
Total Revenues 268.9 262.2 6.7 3 % __________________ 1 Effective from the beginning of fiscal year 2004, the Company adopted
mandatory new accounting rules with respect to the consolidation of financing
companies that are not legally controlled by the Company. As a result, prior
year revenues have been presented on a pro-forma basis as if this change had
been in effect during the prior year. In addition, certain amounts recorded in
revenues in the prior year have been reclassified as a reduction in cost of
sales to conform to the current year presentation. As-reported revenues for the
quarter ended December 31, 2003 amounted to Euro 264.1 million.
Resort Segment revenues for the quarter ending December 31, 2004 increased 1%
to Euro 259.7 million compared to the prior year pro-forma revenues of Euro 258.4
million. These results occurred despite a change in the timing of both the
Christmas and New Year holidays, as well as a shift in school vacation periods
in several key markets from December to January.
Theme park revenues increased 4% over the prior year to Euro 137.0 million for the
three months ended December 31, 2004 reflecting higher average spending per
guest.
Hotels and Disney Village revenues decreased 6% for the quarter to Euro 96.5
million, as a result of lower average hotel occupancy rates and reduced average
daily guest spending per room, reflecting lower food and beverage spending due
to a difficult comparison with prior year convention activities.
The reduction in guest spending per room and the higher average spending per
guest in the theme parks also reflect a change in the allocation of total
vacation package pricing between the Company's hotel rooms and theme park
admissions.
Revenues generated by the Real Estate Segment were Euro 9.2 million, an increase
versus the prior year of Euro 5.4 million, reflecting the timing of land sales.
Content of Program for New Attractions in Disneyland Park and Walt Disney
Studios Park The Company also announced the primary content of its Euro 240 million plan for
new investments over the next several years. This plan, which remains subject
to completion of a capital increase through an upcoming rights offering, is
based on the Company's growth strategy of increasing market penetration of
first time visitors - those Europeans who know the Resort, are interested in
visiting, but haven't done so yet. Such strategy is designed to leverage the
Resort's outstanding guest satisfaction and repeat visitor ratings.
In fiscal 2006, the Company will bring Buzz Lightyear's Laser Blast to
Disneyland Park. In this interactive ride-through attraction, guests journey to
infinity and beyond to help Buzz Lightyear defend the universe against the evil
Emperor Zurg. The opening of the attraction will add to our series of exciting
new offers at Disneyland Park. In 2004, the Company opened The Legend of The
Lion King show, which has been an immense success. In the coming months, the
Park will re-launch one of its most popular attractions as a completely new
experience, Space Mountain: Mission 2.
The toons take over when the Company opens Toon Studios at Walt Disney Studios
Park in fiscal 2007. In this new land, designed to further increase the Park's
appeal to families and young children, guests will experience the magical world
of Disney animated films from an insider's point of view. In this "working
studio," the cast and crew are your favorite "toons," and the unique
attractions are designed to bring their films to life around you.
In fiscal 2008, the Company has scheduled the opening of Tower of Terror at
Walt Disney Studios Park. In this classic Disney adventure, an elevator ride in
a mysterious Hollywood hotel becomes a thrilling, white-knuckle journey into a
mysterious new dimension.
The attached appendix provides more information on the planned new attractions.
Investment Intention of Prince Alwaleed The Company is pleased to announce that it was recently informed by Prince
Alwaleed's advisor, PJ Shoucair, that the Prince, who is currently the second
largest shareholder of the Company,2 intends to subscribe for up to Euro25 million
in additional shares in the upcoming capital increase in order to retain at
least a 10% ownership interest in the Company, after taking into account the
completion of the capital increase.
The Company previously announced that The Walt Disney Company has undertaken to
subscribe to at least Euro 100 million of the equity rights offering.
2 Prince Alwaleed's ownership is indirect through Kingdom 5-KR-135 "Kingdom," a
trust for the benefit of Prince Alwaleed and his family.
****************************************** As previously reported, the Company and its affiliated group (the "Group") is
in the process of a financial restructuring, which requires the completion of a
capital increase of at least Euro 250 million (before deduction of underwriting
commissions and other costs) by March 31, 2005. Pursuant to this objective, the
Company has filed a Reference Document with the Autorité des marchés
financiers, which contains detailed information regarding the Group and its
operations.
****************************************** André Lacroix, Chairman and Chief Executive Officer of Euro Disney S.A.S.,
said: "We are pleased with our continued growth in revenue, especially in our theme
parks, which have enjoyed five consecutive quarters of revenue growth. As the
Company pursues its growth strategy fueled by the investment program in new
attractions and seasons, we aim to further increase our family entertainment
offering and attendance, thereby growing revenues throughout the resort.
In less than 15 years, we have created a new way of vacationing and have become
the number one tourist destination in Europe. Our Resort is a unique form of
entertainment the whole family can enjoy. We view this unique resort experience
as a relatively new market in Europe that has significant long-term growth
potential.
Based on a marketing and sales strategy adapted to European consumers -
especially to those who have not visited us yet - and an unparalleled
multi-year program leveraging both the creativity, as well as the enormous
brand strength of Disney, Disneyland Resort Paris is ideally positioned to take
advantage of this travel and leisure market." Euro Disney S.C.A. and its subsidiaries operate the Disneyland Resort Paris
which includes: Disneyland Park, Walt Disney Studios Park, seven themed hotels
with approximately 5,800 rooms (excluding 2,033 additional third-party rooms
located on the site), two convention centres, Disney Village (a dining,
shopping and entertainment centre) and a 27-hole golf facility. The Group's
operating activities also include the management and development of the
2,000-hectare site, which currently includes approximately 1,000 hectares of
undeveloped land. Euro Disney S.C.A.'s shares trade in Paris (SRD), London and
Brussels.
Corporate Communication Investor Relations Pieter Boterman Fiona Lord Duarte Tel: +331 64 74 59 50 Tel: +331 64 74 53 64 Fax: +331 64 74 59 69 Fax: +331 64 74 56 36 e-mail: pieter.boterman@disney.com e-mail: fiona.lord.duarte@disney.com Code ISIN: FR0000125874 Code Reuters: EDL.PA Sicovam: 12 587 Code Bloomberg: EDL FP Management believes certain statements in this press release may constitute
"forward-looking statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. These statements are made on the basis of
management's views and assumptions regarding future events and business
performance as of the time the statements are made. Actual results may differ
materially from those expressed or implied. Such differences may result from
actions taken by the Company, as well as from developments beyond the Company's
control, including changes in political or economic conditions. Other factors
that may affect results are identified in the Company's documents filed with
the U.S. Securities and Exchange Commission.
Stabilisation/ FSA APPENDIX January 11, 2005 Buzz Lightyear's Laser Blast* in Disneyland Park 2006 should see the unveiling of a new attraction based on the characters and
magic of the Walt Disney Pictures presentation of the Pixar Animation Studios
film Toy Story 2. At the other end of the galaxy, the evil Emperor Zurg is
masterminding the construction of an invading army of battery-powered robotic
villains. His plan hinges vitally on the theft of the entire galaxy's stock of
batteries. Foiling this plan and pulling the plug on the power puppets is a job
for space ranger Buzz Lightyear. Participants will board two-seater ride
vehicles, each of which will be fitted with dual laser pistols and direction
controls, making it possible for guests to spin their space ships around a full
360°. To defend the universe our guests will then go blasting at the various
targets placed throughout the different scenes their vehicles enter. Each
successful hit will not only accumulate points on vehicle dashboards, but also
generate special effects through the use of sound, light and movement. Set to
become something of a standard in Disney Theme Park entertainment, the
popularity of the series of Buzz Lightyear attractions appears to lie in the
development of a storyline concerning an unforgettable character, the ownership
of an experience which guests create themselves and the desire to become a top
scorer.
Toon Studios* at Walt Disney Studios Park A new land in Walt Disney Studios Park will soon offer guests insight into the
backstage activity of their favourite Disney characters. This land will be none
other than the place where the toons toil - the setting where they make their
films - and this theme makes our expansion unique in Disney Theme Park history. This new Land will be a continuation of the Theme Park's current celebration of
the animated world, and will thus find itself located alongside Animation
Courtyard, between Flying Carpets Over Agrabah and Art of Disney Animation. Not
only will guests meet their toon heroes here, but they will also explore their
professional universe and participate in some of the most unforgettable scenes
from their box office successes.
A further part of the development also calls for the expansion of the oasis
area around Flying Carpets Over Agrabah and the integration of a number of
photo, merchandise and food locations in this Animation Backlot.
Tower of Terror* at Walt Disney Studios Park It all happened that stormy night. A freakish lightning bolt struck a luxurious
Hollywood hotel, changing things forever and causing its last residents to
vanish. 2008 development plans for Walt Disney Studios Park include a European
version of an attraction whose popularity has soared since its introduction at
Walt Disney World Resort in 1994, and more recently at Disneyland Resort in
2004. One thing already clear in the project is that the attraction will be a
Walt Disney Studios Park landmark. Its monumental architecture, central
position on Production Courtyard and multi-story structure will all make it
unmissable - to say nothing of the attraction experience itself.
Visitors will begin their journey by strolling through the timeworn, yet
atmospheric lobby and library. These same guests will then be elevated high
into the body of the hotel aboard service lifts, and straight into a strange
world. The fate of the vanished former residents will then unfold before their
very eyes, just as their own destiny becomes frighteningly obvious. As their
lift door opens, they return to reality, finding themselves and their lift
plunging to the bottom of a lift shaft. The breath-taking descent will happen
quicker than gravity itself and the rebound back to the top will give those who
closed their eyes a second chance to watch what happens.
* Implementation of the future attractions is subject to completion of the Euro
Disney SCA equity rights offering on or before 31 March 2005. Attraction names
and details are subject to change NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA 2 END
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