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Disney Board Of Directors Sends Letter To Shareholders Highlighting Clear Progress Made And Promises Kept As It Executes Strategic Transformation

The Walt Disney Company (NYSE:DIS) Board of Directors today sent a letter to shareholders detailing the progress it has made and continues to make on its strategic priorities, delivering on the promises it made just over one year ago.

The Board has been laser-focused on a strategy that will drive shareholder value. The Company has restored its cash dividend and subsequently increased the dividend payment declared for July 2024 by 50%. Disney is also targeting $3 billion in share buybacks for FY24. As shared in its first quarter earnings, the Company has also made great strides in reigning in costs and is on track to meet or exceed its cost cutting target of $7.5 billion by the end of FY24. Disney also reaffirmed it is on track to deliver $8 billion in free cash flow¹, and to reach profitability in its combined DTC streaming businesses² in Q4 FY24. Disney’s creative engines continue to be recognized with numerous nominations across the TV and film industry.

Disney’s Board of Directors believes all of its 12 nominees are uniquely qualified to continue this important progress and create long-term shareholder value. The Board urges shareholders to protect their investment and the future of the Company by voting the WHITE proxy card FOR only Disney’s 12 nominees NOW and not the Trian Group or Blackwells nominees. The 2024 Annual Meeting of Shareholders will be held on April 3, 2024.

The Disney Board of Directors does not endorse the Trian Group nominees, Nelson Peltz and Jay Rasulo, or the Blackwells nominees, Craig Hatkoff, Jessica Schell and Leah Solivan, and believes that they are unqualified to serve on Disney’s Board and preserve value creation for shareholders in this increasingly complex global landscape.

The Company’s proxy statement and other important information related to the Annual Meeting can be found at VoteDisney.com.

[1] Free cash flow is a non-GAAP financial measure. The most comparable GAAP measure is cash provided by operations. See how we define and calculate this measure and why Disney is not providing a forward-looking quantitative reconciliation to the most comparable GAAP measure at the end of the attached shareholder letter.

[2] DTC streaming businesses operating income is a non-GAAP financial measure. The most comparable GAAP measures are segment operating income for the entertainment segment and the sports segment. See how we define and calculate this measure and why Disney is not providing a forward-looking quantitative reconciliation to the most comparable GAAP measures at the end of the attached shareholder letter.


Comments

3 responses to “Disney Board Of Directors Sends Letter To Shareholders Highlighting Clear Progress Made And Promises Kept As It Executes Strategic Transformation”

  1. LARRY CROSS Avatar
    LARRY CROSS

    Mr. Daps,

    First, let me thank you for following, documenting and publishing proper news about the Disneyland Companies and Knotts Berry Farm. As I’m sure you know, there are other publications that try to provide information on the theme parks by using false tag lines and narrative just to peak your interest but then let you down with mostly inaccurate news. So again, Thank you!

    Myself and my family are huge Disney fans. Being Annual Pass now Magic Key holders for years we truly enjoy the parks even if don’t go on any of the rides (of course we love those too!). I have been visiting the parks for almost 60 years. We have seen mostly wonderful improvements, changes, expansion and future development happen and love most everything that has been done. Like any business, there have been changes made due to social, political or racial pressure but you know, Disney is the master of turning lemons into lemonade.

    One of the things that was changed that we were so sad about was when Disney’s “Vacationland” was removed to make way for the first new Mickey and Friends parking structure but agreed that parking needed drastic improvements. A few daily news reports back from Daps Magic talked about new expansion plans that are currently in the planning and public input phases. Although you have provided as much information as you can get, there was one thing that I thing in todays world needs to be at least considered, a new RV resort as part of the master planning!

    Speaking for myself, I travel with my family including the family pets. Although the Disney and Good Neighbor hotels provide an enormous amount of wonderful options, many families that are traveling don’t have many options when traveling with pets. We used to stay at the Anaheim RV Resort but that was closed to make way for housing. We have stayed at the Anaheim Harbor RV park but its too small and cannot accommodate large RV’s. There are other parks but aren’t very convenient due to there location. So, if you have any sources to pass this on too or can let me know how to add this comment to the things being considered in planning process, that would be great!

    Keep up the wonderful, responsible reporting on Disney/Knotts news and thank you in advance for reading this!

    Respectfully,
    L.C.

    1. Greetings!

      Wow, thank you so much for your kind words! They are greatly appreciated. I also found myself smiling as you brought up the old Vacationland Campground. My family used to stay there when I was a kid and I have many happy memories there! I also love the realization and thoughts about an RV Resort. I will see if there is anyone I can pass this along to as it is definitely a good thought!

      Thank you again for your kind words. It is greatly appreciated!

      peace,

      Mr. Daps

    2. Hi There,

      I just wanted to follow up with you on this. I reached out to some contacts at Disney with this. They were very thankful for the suggestion and said at this point in the process there is still plenty of room to accept suggestions! I don’t know what it will lead to in the long wrong but I thought you would like to know that your suggestion is now in the mix at Disney and sounds like it will be considered!

      – Mr. Daps

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