EURO DISNEY S.C.A. Euro Disney Shareholders Approve Restructuring Plan - Hear Update of New Investment and Marketing Plans (Marne-la-Vallée, December 17, 2004) Shareholders of Euro Disney S.C.A.,
operator of Disneyland Resort Paris, authorized today the completion of the
Company's restructuring and the launch of an offering for at least Euro250 million
of shares. This offering will be launched with the preferential subscription
rights of the shareholders maintained.
2004 Achievements "Fiscal 2004 witnessed the successful execution of a Memorandum of Agreement
for a financial restructuring that when completely effective, is intended to
provide capital for liquidity, particularly to deal with periods of business
volatility, capital to maintain and rehabilitate our existing asset base, and
capital to invest in exciting new attractions to stimulate future growth," said
Jeffrey R. Speed, Chief Financial Officer of Euro Disney S.A.S.
He further noted that the restructuring provides: "a permanent cash improvement
of Euro500 million, of which Euro400 million is coming from The Walt Disney Company."
He also described additional sources of liquidity and financing involving:
"nominal cash of almost Euro 1.2 billion, of which approximately Euro 600 million is
coming from Disney. Equally important, is that more than half of the
conditional and unconditional deferrals would be deferred on a long-term basis,
beyond the year 2016." Mr. Speed also reviewed the fiscal year 2004 financial results, noting that
during the last quarter of the period (July, August and September), all of the
key revenue drivers of the Resort increased over the comparable prior year
period.
Long Term Growth André Lacroix, Chairman and Chief Executive Officer of Euro Disney S.A.S.,
discussed the Group's progress during 2004 related to the launch of its
innovative marketing and product development programs as well as the
development of a strong international management team.
He reported: "Our priority is to grow the revenues and build the EBITDA of your
company every year, while keeping in mind that more time will be necessary
before the Company is profitable again. In order to do that, we need to improve
attendance figures in the first-timer category, those Europeans who know our
product, are interested in visiting, but haven't come yet. We know from our
high satisfaction rates that once they came, they will come back, thanks to the
high quality of the entertainment we offer." He specified that, "Guest
satisfaction has improved this year, with over 80% of guests rating their
experience as "completely" or "very" satisfied." For the near-term, Disneyland Resort Paris will be making investment and
marketing decisions designed to drive first-time visitation, given that a large
part of its core market remains untapped. "This is where our growth potential
lies", stated Mr. Lacroix. He concluded, "In less than 15 years of operations,
we have created a new family vacation experience in Europe and today we are the
number one vacation destination in Europe. Guests vacation at Disneyland Resort
Paris just like they would at the ocean or the mountains. We have created a
young and growing market with an enormous potential." Mr. Lacroix indicated that the Company plans on announcing in greater detail
its investment program in the new year, although he provided the audience a
look into the future of Space Mountain, which will be reprogrammed for "Mission
2" this spring.
After the vote, Mr. Lacroix added: "We thank our shareholders and all of our
stakeholders for their strong support during this period, as we approach the
final step in the Company's financial restructuring. Soon, we hope to be
focused on the start of our investment program along with the advancement of
our operating strategy." During the meeting, Mr. Antoine Jeancourt-Galignani, Chairman of the
Supervisory Board of Euro Disney, S.C.A., announced the expiry of the term of
office of Sir David Paradine Frost as member of the Board, after six years of
dedicated service and strong support. Sir David Frost did not wish to see his
mandate renewed due to his increasingly demanding business schedule in London
and New York. Replacing Sir David Frost is Mr. Martin Robinson, Executive
Chairman of Center Parcs UK Plc. Mr. Robinson brings to the Board the expertise
derived from a distinguished career in brand management, marketing and
operational leadership.
The Company has until March 31, 2005 to complete its capital increase. Absent
that, the Company, The Walt Disney Company and the Euro Disney Group's other
lenders would have thirty days after March 31 to negotiate a new waiver of debt
covenants and reach a new agreement on a financial restructuring. Absent such a
waiver and agreement, the Company would then be unable to meet all of its debt
obligations.
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 Sandra Picard-Ramé Tel: +331 64 74 59 50 Tel: +331 64 74 56 28 Fax: +331 64 74 59 69 Fax: +331 64 74 56 36 e-mail: pieter.boterman@disney.com e-mail: sandra.picard.rame@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.
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.
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