EURO DISNEY S.C.A.
Reports Annual Results for Fiscal Year 2004
Financial restructuring advances to memorandum of agreement providing resources
for liquidity and future asset growth
2004 revenues stable despite challenging external environment
Positive EBITDA; operating cash flows
Net loss increased; resumption of royalties and management fees; exceptional
items
(Marne-la-Vallée, November 9, 2004), Euro Disney S.C.A., the operating company
of Disneyland Resort Paris, reported today its consolidated financial results
for the fiscal year ended September 30, 2004.
Revenues increased slightly to total Euro 1,048.0 million in fiscal year 2004, as
increased spending by theme park visitors and hotel guests was mostly offset by
lower hotel occupancy rates, as well as an anticipated decline in real estate
development revenues. Year-over-year attendance remained flat at 12.4 million.
The Group incurred an operating loss of Euro 23.9 million in fiscal year 2004,
which was Euro 56.0 million below the Euro 32.1 million of pro-forma operating income
recorded in the prior year (the pro-forma presentation reflects a change in
accounting method that significantly affected the scope of consolidation in
fiscal year 2004, as discussed below). The increased loss reflected a below
inflation increase in certain operating costs and expenses and the resumption
of accruals for royalties at full rates and management fees, following the
waiver by The Walt Disney Company ("TWDC") of royalties and management fees in
the last three quarters of fiscal year 2003. The increase in costs and
expenses also reflected higher marketing and sales spending partially offset by
reduced general and administrative expenses. Net loss increased from Euro 58.3
million (on a pro-forma basis) in fiscal year 2003 to Euro 145.2 million in fiscal
year 2004, as a result of the lower operating margin as well as significant
exceptional items.The Group generated Euro 124.6 million of operating cash flow in fiscal year 2004
despite the net loss, as a significant portion of the Group's operating
expenses consist of non-cash depreciation and amortisation charges. In
addition, the Group's working capital requirements decreased as accrued
royalties and management fees for fiscal year 2004 are not payable until fiscal
year 2005 and accrued interest was deferred on the CDC loans for Walt Disney
Studios. Under the terms of the Memorandum of Agreement with TWDC and the
Company's lenders relating to the Group's financial restructuring (the "MOA"),
fiscal year 2004 royalties and management fees will be paid when the
restructuring is implemented.
Change in Accounting Principle Effective October 1, 2003 (the first day of fiscal year 2004), the Group
adopted new accounting rules mandated by Article 133 of the Financial Security
Law (Loi de Sécurité Financière) with respect to the consolidation of special
purpose financing companies that are not legally controlled by the Group.
Under these new rules, the financing companies, from which the Group leases a
substantial portion of its operating assets (the "Financing Companies"), have
been included in the Group's consolidated financial statements. In the past,
lease payments to the Financing Companies were expensed as incurred, along with
disclosure by the Group of the leasing arrangements, contractual commitments
for lease rentals, and the related debt obligations of the Financing
Companies. As a result of the new consolidation rules, these operating assets
are now consolidated, resulting in increased assets and borrowings. The
Group's receivables from the Financing Companies have been eliminated in
consolidation. In addition, shareholders' equity has been reduced, reflecting
primarily depreciation charges (incurred prior to the implementation of the
change in accounting principle), that exceeded the lease payments expensed for
the same periods. The accounting change also affects the classification and
amount of costs on the income statement, with increased operating expenses,
depreciation and interest expense, and reduced lease rental expense
(consequently, the income statement line item formerly entitled "lease and net
financial charges" has been renamed "net financial charges"). The accounting
change does not affect the legal structure, financial position or cash flows of
the members of the consolidated group. See Exhibit 5 for detail of the impact
of the accounting change on the Group's borrowings. Operating Statistics The following table provides information regarding the key operating indicators
of the Group.
Fiscal Year Variation
2004 2003 Amount Percent
Theme Park guests (in millions) (1) 12.4 12.4 - -
Theme Park spending per guest (2) (in Euro) 42.7 40.7 2.0 5 %
Hotel occupancy rate (3) 80.5% 85.1% (4.6) ppt
Hotel total spending per room (4) (in Euro) 186.6 183.5 3.1 2 %
(1) Theme Park attendance is recorded on a "first click"
basis, meaning that a person visiting both parks in a single day is counted as
only one visitor.
(2) Average daily admission price and spending on food,
beverage and merchandise and other services sold in the Theme Parks, excluding
VAT.
(3) Average daily rooms sold as a percentage of total room
inventory (total room inventory is approximately 5,800 rooms).
(4) Average daily room price and spending on food, beverage and merchandise and
other services sold in hotels, excluding VAT.
Revenues Revenues of the Group were generated from the following sources: Fiscal Year
2004/
Fiscal Year 2003 Pro-Forma 2003
Fiscal Pro- Accounting As- Variance
Year
(Euro in millions) 2004 Forma Change Reported Amount %
Theme Parks 531.3 508.5 - 508.5 22.8 5 %
Hotels and Disney 405.2 416.7 - 416.7 (11.5) (3) %
Village
Other 99.7 98.0 (0.7) 98.7 1.7 2 %
Resort Segment 1036.2 1023.2 (0.7) 1023.9 13.0 1 %
Real Estate Segment 11.8 23.6 - 23.6 (11.8) (50) %
Total Revenues 1048.0 1046.8 (0.7) 1047.5 1.2 -
Theme park revenues increased 5 % to Euro 531.3 million from Euro 508.5 million in
the prior year as a result of higher per guest spending, coupled with stable
attendance. The higher spending levels reflected three principal factors: an
increase in average park admissions prices, the introduction of the "Park
Hopper" ticket (which permits guests to visit both theme parks for a single
price that is
Euro 9 higher than the single park price) and the elimination of low season
reduced admission pricing. Merchandise and food and beverage revenues in the
theme parks also increased primarily as a result of higher spending per guest.
Hotel and Disney Village revenues decreased 3 % to Euro 405.2 million from Euro 416.7
million in the prior year, reflecting the decrease in hotel occupancy due to
increased competition from new on-site capacity at the hotels owned and
operated by third parties. These hotels are part of the Group's overall
development plan for the Disneyland Paris Resort, designed to increase overall
hotel capacity to accommodate more visitors of the theme parks without
requiring the Group itself to utilise capital to construct additional hotels.
However, due to the soft demand environment, these new hotels had an adverse
effect on occupancy at the Group's hotels, especially during off-peak periods.
The impact on revenues of the decline in occupancy was partially offset by a 2
% increase in average daily guest spending per room.
Other Revenues (which primarily include participant sponsorships,
transportation and other travel services sold to guests) increased over the
pro-forma prior year by Euro 1.7 million to Euro 99.7 million, reflecting higher
transportation and other travel services sold to guests, partially offset by
slightly lower participant sponsorship revenues.
Real Estate Development revenues decreased from the prior year, reflecting a
planned reduction in development projects. Real Estate Development revenues in
fiscal year 2004 included primarily commercial and residential land sale
transactions. In addition, revenues included ground lease income and fees for
services provided to third-party developers that have signed contracts to
either purchase or lease land on the Resort site for development. Given the
successful completion of most of the additional hotel capacity projects in
fiscal year 2003, the decrease reflected this planned reduction in development
activity.
Costs and Expenses Costs and expenses of the Group were composed of: Fiscal Year
2004/
Fiscal Year 2003 Pro-Forma
2003
Fiscal Pro- Accounting As- Variance
Year
(Euro in millions) 2004 Forma Change Reported Amount %
Direct operating costs 664.8 655.2 (15.7) 639.5 9.6 2 %
(1)
Marketing and sales 112.6 105.2 - 105.2 7.4 7 %
expenses
General and 90.0 96.7 - 96.7 (6.7) (7) %
administrative expenses
Depreciation and 146.8 149.5 (83.9) 65.6 (2.7) (2) %
amortisation
Sub-total 1014.2 1006.6 (99.6) 907.0 7.6 1 %
Royalties and management 57.7 8.1 - 8.1 49.6 612 %
fees
Total Costs and Expenses 1071.9 1014.7 (99.6) 915.1 57.2 6 %
Includes operating wages and employee benefits, cost of sales for merchandise
and food and beverage, transportation services and real estate land sales and
other costs such as utilities, maintenance, renovation expenses, insurance and
operating taxes.
Costs and expenses for fiscal year 2004, before the impact of resumption of
royalties and management fees, increased by 1 %, below the reported French
inflation rate of
1.48 % . Direct operating costs increased Euro 9.6 million from the pro-forma
prior year primarily reflecting the impact of higher labour costs. Marketing
and sales expenses during fiscal year 2004 increased Euro 7.4 million, reflecting
increased advertising during the second half of the fiscal year, associated
largely with the promotion of the popular new show, The Legend of the Lion
King. General and administrative expenses incurred during fiscal year 2004
decreased Euro 6.7 million, reflecting decreased labour expenses.
Royalties and management fees totalled Euro 57.7 million, Euro 49.6 million higher
than the previous year, reflecting the October 1, 2003 (first day of fiscal
year 2004) resumption of royalties at full rates and management fees subsequent
to the waiver by TWDC of these fees for the last three quarters of fiscal year
2003. In fiscal year 2004, royalties totalled Euro 47.2 million after
reinstatement to full contractual rates (fiscal year 1999 through 2003 rates
were reduced to half of their original levels as a result of the 1994 financial
restructuring). The fiscal year 2004 charge reflects the accrual of the
royalties and management fees for the year, although payment is not due until
2005.
Operating Margin and EBITDA The following table sets forth the Group's operating margin by segment and
EBITDA: Fiscal Year
2004/
Fiscal Year 2003 Pro-Forma 2003
Fiscal Pro- Accounting As- Variance
Year
(Euro in millions) 2004 Forma Change Reported Amount %
Resort Segment (25.6) 21.8 (100.3) 122.1 (47.4) (217)%
Real Estate Segment 1.7 10.3 - 10.3 (8.6) (84)%
Operating Margin (1) (23.9) 32.1 (100.3) 132.4 (56.0) (175)%
Depreciation and 146.8 149.5 83.9 65.6 (2.7) (2)%
amortisation
EBITDA (2) 122.9 181.6 (16.4) 198.0 (58.7) (32)%
As a Percentage of 12 % 17 % - 19 % - (5)ppt
Revenues
Operating Margin represents Income (Loss) before net financial charges and
exceptional items as presented in the Consolidated Income Statement.
EBITDA represents Operating Margin before depreciation and amortisation.
Because of the substantial increase in depreciation and amortisation charges
resulting from the consolidation of the special purpose financing companies
pursuant to the change in accounting principle described above, management has
determined that EBITDA is a key metric to evaluate the performance of the
Group's business. While management believes that EBITDA is a useful tool for
evaluating performance, it is not a measure of financial performance defined
under French generally accepted accounting principles, and should not be viewed
as a substitute for operating margin, net income or operating cash flow in
evaluating the Group's financial results.
EBITDA declined during fiscal year 2004 as a result of the lower operating
margin in both the Resort and Real Estate operating segments. The Resort
Segment recorded an operating loss of Euro 25.6 million, reflecting a decrease of
Euro 47.4 million from the pro-forma prior year performance, primarily reflecting
increased royalties and management fees of Euro 49.6 million. Real Estate
Segment operating margin decreased Euro 8.6 million to Euro 1.7 million from Euro 10.3
million in the prior year, reflecting a planned reduction in development
activities. Net Financial Charges Net financial charges were composed of: Fiscal Year
2004/
Fiscal Year 2003 Pro-forma 2003
Fiscal Pro- Accounting As- Variance
Year
(Euro in millions) 2004 Forma Changes Reported Amount %
Lease rental - - 193.8 (193.8) - -
expense
Financial income 2.8 3.8 (45.1) 48.9 (1.0) (26)%
Financial expense (108.5) (115.0) (59.6) (55.4) 6.5 6%
Net Financial (105.7) (111.2) 89.1 (200.3) 5.5 (5)%
Charges
Lease rental expense represents payments under financial lease arrangements
with the consolidated Financing Companies and approximates the related debt
service payments and operating expenses of such Financing Companies. Upon
consolidation of the Financing Companies (which occurred as of the beginning of
fiscal year 2004, as described above), this expense is eliminated. Financial income, before the consolidation of the Financing Companies, was
principally composed of interest income earned on long-term loans provided to
the Financing Companies and interest income on cash and short-term investments,
as well as net impact arising from foreign currency transactions. Since the
consolidation of the Financing Companies, the interest income earned on the
long-term loans to the Financing Companies is eliminated. Financial expense is
principally composed of interest charges on the long-term borrowings of the
Group and the net impact of interest rate hedging transactions.
Net financial charges decreased Euro 5.5 million to Euro 105.7 million in fiscal year
2004. This decrease was primarily attributable to the impact of lower variable
interest rates and related hedging costs, partially offset by the resumption of
full interest charges following the end of the interest waiver provisions of
the 1994 financial restructuring as of September 30, 2003.
Exceptional Income (Loss), net The fiscal year 2004 exceptional loss of Euro 22.3 million primarily includes Euro
12.6 million of fees and expenses incurred in connection with the financial
restructuring negotiations and a Euro 9.2 million loss related to the write-off of
equipment within Visionarium, an attraction in Disneyland Park, which has been
closed so that the building can house a new attraction expected to open in
fiscal year 2006.
Exceptional income totalled Euro 11.9 million in fiscal year 2003. The Group sold
three apartment developments used to provide housing to employees within close
proximity to the site. The transaction generated Euro 34.1 million in net sale
proceeds and a gain of Euro 11.0 million. The Group continues to operate the
apartment developments under leases with the buyers, with the rental expense
constituting part of the Group's operating expenses. Cash Flows As of September 30, 2004, cash and short-term investments totalled Euro 131.4
million (including
Euro 49.1 million of cash and short-term investments held by the Financing
Companies that were consolidated as of the beginning of fiscal year 2004).
Cash and cash equivalents increased by
Euro 36.7 million from the pro-forma prior year to Euro 131.3 million as of September
30, 2004. Specifically, this increase in cash and cash equivalents resulted
from: Cash Flows from Operating Activities Euro 124.6 million Cash Flows used in Investing Activities Euro (28.8) million Cash Flows used in Financing Activities Euro (59.1) million Cash flows from operating activities remained stable compared to the pro-forma
prior year, reflecting the impact of lower net income, which was offset by
favourable changes in working capital items.
Cash flows used in investing activities totalled Euro 28.8 million reflecting
capital investment expenditures. Capital investment expenditures related
primarily to developing and staging the new Legend of The Lion King stage show,
which is presented several times daily on the Videopolis stage in Disneyland
Park, improvements to the Halloween and Christmas festivals and various other
improvements to the existing asset base.
Cash flows used in financing activities totalled Euro 59.1 million reflecting debt
repayments of
Euro 66.2 million, payments totalling Euro 15.4 million to increase the debt security
deposit and fund financial restructuring costs, partially offset by Euro 22.5
million of additional drawings under the Group's Euro 167.7 million line of credit
facility with TWDC, thereby bringing the outstanding balance of the credit line
as of September 30, 2004 to Euro 125.0 million.
Financial Restructuring On September 30, 2004, the Company, its lenders and TWDC signed the MOA, which
provides for a comprehensive restructuring of the Group's financial obligations
(the "Restructuring"). The Restructuring is subject to definitive
documentation, and will become fully effective upon the completion of the share
capital increase described below. If the share capital increase is not
completed by March 31, 2005, the parties will have 30 days to negotiate an
alternative arrangement. Otherwise most of the provisions of the MOA will
become null and void, and the Company would then, absent a waiver or new
agreement, be unable to pay certain of its debt obligations. Once implemented the Restructuring will: provide the Group with new cash resources, with a new Euro150.0 million credit
line from TWDC and a share capital increase, through an equity rights offering,
with gross proceeds of at least Euro 250.0 million (before deducting underwriting
commissions and other costs); convert the Group's existing credit line with TWDC (under which Euro 110 million
will be outstanding when the Restructuring is implemented) into subordinated
long-term debt; eliminate certain of the Group's cash payment obligations in respect of its
borrowings, and defer certain of the Group's other cash payment obligations in
respect of its borrowings and royalty and management fee obligations, partially
on an unconditional basis and partially on a conditional basis (based on the
Group's EBITDA, adjusted for certain items); increase the interest rate on approximately Euro 450 million of the Group's debt
by approximately 2 percentage points per annum; eliminate Euro 292.1 million of payments (plus Euro 16 million of interest) to Euro
Disney Associés SCA ("EDA"), a TWDC affiliate, to exercise the Company's option
to maintain its rights to the Disneyland Park and certain of its key
attractions (which are currently leased from EDA), by instead acquiring 82% of
the share capital of EDA in exchange for the contribution of substantially all
of the Company's assets and liabilities to EDA (TWDC will indirectly hold the
remaining 18% of EDA) ; andallow the Group to implement a Euro240.0 million investment plan and to expend
more each year on maintaining and improving the existing asset base.
The cash flow impact of the Restructuring is briefly summarised in Exhibit 6.
By reaching agreement on the Restructuring, the Group has the opportunity to
pursue a strategy designed to attract new theme park visitors and hotel guests,
and to increase repeat visitation by enhancing guest satisfaction and value
perception. The Company will be convening a combined extraordinary and ordinary
general meeting on December 17, 2004 to approve, among other resolutions, the
contribution agreement and subsequent modifications to the Company's by -laws,
the increase in shareholders equity via an equity rights offering, as well as
the audited consolidated and statutory accounts.
André Lacroix, Chairman and Chief Executive Officer of Euro Disney S.A.S.,
said: "The Company's annual results reflect a flat attendance and revenue performance
in another difficult year for the European travel and tourism industry,
combined with an increase in the cost base mainly due to the resumption of
royalties and management fees, as well as additional costs associated with the
financial restructuring. The Company has made significant progress for 2004.
Euro Disney developed a long-term growth strategy designed to leverage the
potential of first-time visitors based on an innovative European marketing and
sales strategy. The implementation of this strategy helped the Company
generate revenue and attendance growth in the highly important fourth quarter,
thanks to the launch of The Legend of the Lion King Show.
Euro Disney has reached the important and necessary milestones to the
completion of a successful financial restructuring. This restructuring will be
finalized upon completion of the equity rights offering and, once implemented,
will provide both financial flexibility to the Company, as well as capital to
invest in growth with the development of new attractions.
Euro Disney has assembled a strong, experienced and international management
team to implement our new growth strategy.
We remain committed to the future of Disneyland Resort Paris, the number one
tourist destination in Europe." 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 Next Scheduled Release: First Quarter Earnings in January 2005 Additional Financial Information can be found on the internet at
www.eurodisney.com Code ISIN: FR0000125874 Code Reuters: EDL.PA Sicovam: 12 587 Code Bloomberg: EDL FP 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. 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 the United States, France or any other jurisdiction. 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 to
be 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.
EXHIBIT 1 EURO DISNEY S.C.A. Group Fiscal Year 2004 Results Announcement CONDENSED CONSOLIDATED STATEMENTS OF INCOME Fiscal Year
2004/
Fiscal Year 2003 Pro-Forma 2003
Fiscal Pro- Accounting As- Variance
Year
(Euro in millions) 2004 Forma Change Reported Amount %
Revenues 1048.0 1 046.8 (0.7) 1047.5 1.2 -
Costs and Expenses (1071.9) (1014.7) (99.6) (915.1) (57.2) (6)%
Income (Loss) (23.9) 32.1 (100.3) 132.4 (56.0) (175)
before Financial %
Charges
Net Financial (105.7) (111.2) 89.1 (200.3) 5.5 5%
Charges
Loss before (129.6) (79.1) (11.2) (67.9) (50.5) (64)%
Exceptional Items
Exceptional loss, (22.3) 12.0 0.1 11.9 (34.3) (286)
net %
Minority interests 6.7 8.8 8.8 - (2.1) (24)%
Net Loss (145.2) (58.3) (2.3) (56.0) (86.9) (149)
%
REVENUES BY SEGMENT AND BY QUARTER Fiscal year 2004 Fiscal Year 2003 (FY 2004 vs Pro-forma FY 2003)
Pro-forma
Resort Real Total Resort Real Total Resort Real Total
Estate Estate Estate
First 258.4 3.8 262.2 256.9 3.6 260.5 1.5 1% 0.2 6% 1.7 1%
quarter
Second 207.9 0.9 208.8 207.1 1.7 208.8 0.8 - (0.8) (47) - -
quarter %
Third 263.0 2.1 265.1 268.2 6.8 275.0 (5.2) (2) (4.7) (69) (9.9) (4)
quarter % % %
Fourth 306.9 5.0 311.9 291.0 11.5 302.5 15.9 5% (6.5) (57) 9.4 3%
quarter %
Totals 1036.2 11.8 1048.0 1023.2 23.6 1046.8 13.0 1% (11.8) (50) 1.2
%
EXHIBIT 2 EURO DISNEY S.C.A. Group Fiscal Year 2004 Results Announcement CONDENSED Consolidated Balance Sheets September 2004
/Pro-Forma
September 2003 2003
September Pro- Accounting As-
(Euro in millions) 2004 Forma Changes Reported Amount
Tangible and 2,396.3 2,519.9 1,534.3 985.6 (123.6)
Intangible assets
Financial Assets 115.3 104.5 (1,227.7) 1,332.2 10.8
Cash and Short-term 131.4 94.7 48.6 46.1 36.7
Investments
Other Assets 174.0 171.7 7.1 164.6 2.3
Deferred Charges 59.6 63.6 8.5 55.1 (4.0)
Total Assets 2,876.6 2,954.4 370.8 2,583.6 (77.8)
Share Capital and 1,246.4 1,093.9 - 1,093.9 152.5
Share Premium
Accumulated (1,306.3) (1,161.1) (1,151.6) (9.5) (145.2)
Deficit
Shareholders' Equity (59.9) (67.2) (1,151.6) 1,084.4 7.3
(Deficit)
Minority Interests 339.6 (41.3) (41.3) - 380.9
Quasi-Equity - 152.8 - 152.8 (152.8)
Provisions for Risks 98.2 120.1 - 120.1 (21.9)
and Charges
Borrowings 2,052.8 2,448.4 1,580.9 867.5 (395.6)
Current Liabilities 445.9 341.6 (17.2) 358.8 104.3
and Deferred
Revenues
Total Shareholders' 2,876.6 2,954.4 370.8 2,583.6 (77.8)
Equity and
Liabilities
EXHIBIT 3 EURO DISNEY S.C.A. Group Fiscal Year 2004 Results Announcement Condensed Cash Flow STATEMENTS Fiscal Fiscal Year 2003 Variation (2004 vs.
Pro Forma 2003)
Year Pro- Accounting As-
(Euro in millions) 2004 Forma Changes Reported Amount %
Cash Flows from 124.6 124.7 36.6 88.1 (0.1) -
Operating Activities
Proceeds from the - 45.4 - 45.4 (45.4) (100)%
sale of fixed assets
Capital expenditures (28.6) (72.7) 0.2 (72.9) 44.1 61 %
for tangible and
intangible assets
Other (0.2) (1.3) - (1.3) 1.1 85 %
Cash Flows used in (28.8) (28.6) 0.2 (28.8) (0.2) -
Investing Activities
Proceeds from new 22.5 40.0 - 40.0 (17.5) (44)%
borrowings
Repayments of (66.2) (51.6) (36.6) (15.0) (14.6) (28)%
borrowings
(Increase) / (10.5) (59.6) - (59.6) 49.1 82 %
Decrease in debt
security deposit
Restructuring costs (4.9) - - - (4.9) (100)%
Cash Flows from (59.1) (71.2) (36.6) (34.6) 12.1 17%
(used in) Financing
Activities
Change in cash and 36.7 24.9 0.2 24.7 11.8 47 %
cash equivalents
Cash and cash 94.6 69.7 48.4 21.3 24.9 36 %
equivalents,
beginning of period
Cash and Cash 131.3 94.6 48.6 46.0 36.7 39 %
Equivalents, end of
period (1)
September 2003 Variation (2004
vs. Pro Forma
2003)
September Pro- Accounting As-
2004 Forma Change Reported Amount %
Reconciliation to
Balance Sheet:
Cash 10.6 11.2 - 11.2 (0.6) (5)%
Short-term 120.8 83.5 48.6 34.9 37.3 45%
investments
Bank overdrafts (0.1) (0.1) - (0.1) - -
(recorded in
accounts payable
and accruals)
Cash and Cash 131.3 94.6 48.6 46.0 36.7 39%
Equivalents, end of
period (1)
(1) Includes Euro 49.1 million and Euro 48.6 million of cash and short-term
investments of the consolidated Financing Companies as of September 30, 2004
and 2003, respectively
EXHIBIT 4 EURO DISNEY S.C.A. Group Fiscal Year 2004 Results Announcement Reconciliation of Shareholders' Equity Share Accumulated
Capital
(Euro in millions) Premium Deficit Totals
Balances at September 30, 2003, As-Reported 1,093.9 (9.5) 1,084.4
Cumulative effect of change in accounting - (1,151.6) (1,151.6)
principle
Conversion of ORAs and warrants 152.5 - 152.5
Net Loss Fiscal Year - (145.2) (145.2)
Balances at September 30, 2004 1,246.4 (1,306.3) (59.9)
EXHIBIT 5 The Group's BORROWINGS The consolidation of the special purpose financing companies substantially
increased the amount of borrowings recorded on the Group's consolidated balance
sheet as of September 30, 2004. The following table shows the impact of the
accounting change on the Group's borrowings.
As-Reported Consolidate
September Financing Fiscal Year 2004 September
(Euro in millions) 2003 Companies Increase Decrease 2004
CDC Senior Loans 40.6 86.9 - - 127.5
CDC Subordinated 509.4 274.4 - - 783.8
Loans
Credit Facility - 114.1 263.7 - (37.7) 340.1
Phase IA
Credit Facility - 24.3 139.2 - (13.0) 150.5
Phase IB
Partner Advances - - 304.9 - - 304.9
Phase IA
Partner Advances - - 96.9 - - 96.9
Phase IB
TWDC Loans - 276.4 - (259.1) (1) 17.3
TWDC Line of 102.5 - 22.5 - 125.0
Credit
Other loans 15.5 - - (15.5) -
Sub-Total 806.4 1 442.4 22.5 (325.3) 1 946.0
Accrued Interest 61.1 138.5 93.7 (186.5) (1) 106.8
Total Borrowings 867.5 1580.9 116.2 (511.8) 2052.8
(1) Decreases represent the fiscal year 2004 conversion into equity capital
of certain loans owned by EDA to TWDC, including
Euro 125 million of accrued interest. EXHIBIT 6 EURO DISNEY S.C.A. Group Fiscal Year 2004 Results Announcement SUMMARY OF CASH FLOW IMPACT of Restructuring
(Euro in millions) Share Capital Increase (1) 250
Net Cash Savings:
EDA payments 292
Debt service waivers 30
Increased interest rates (63)
259
New Capital and Net Cash Savings 509
New Line of Credit 150
(available until 2010 at which time it will decrease to Euro 100 )
Unconditional Deferrals(2) 600
(realised primarily over 6 years from fiscal year 2005 to 2010)
Maximum Conditional Deferrals (2) 406
(realised over 11 years from fiscal year 2005 to 2015)
Other Liquidity Provisions 1,156
Excludes underwriting commissions and other equity issuance costs, estimated at
Euro 20 million.
Includes deferrals of debt service payments and royalties and management fees.
The following table shows the deferrals of debt service, royalty and management
fee obligations that will take place through fiscal year 2009, separately
identifying conditional and unconditional deferrals: Fiscal Cumm Thereafter Fiscal Cumm
Year Year
5-Year
(Euro in 2005 2006 2007 2008 2009 Total Deferrals Repayments
millions)
Unconditional 241 102 120 74 35 572 28 (600)
Deferrals
Max - 20 20 45 45 130 276 (406)
Conditional
Deferrals
Max Potential 241 122 140 119 80 702 304 (1,006)
Deferrals
The figures in the tables above are cash savings and deferrals to be realised
over a period of 11 fiscal years, and represent the sum of each year's savings
or deferrals, without discounting. Deferred amounts will remain obligations of
the Group but will be paid at dates that are later than their currently
scheduled dates. Deferrals of interest, royalties and management fees will
accrue as expenses in the Group's consolidated income statement. The figures
in the table exclude the impact of increased interest expense and financial
income that will be paid or received as a result of the deferral of principal
payments, royalties and management fees. A more detailed table will be
provided in the report that will be published in connection with the upcoming
shareholders' meeting.
Source : INSEE : Rate for all categories except tobacco (Sept 03 - Sept 04).
END
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