Chargeable FASTPASS to be launched at Disneyland Paris.


Androland are reporting that Disneyland Paris will be launching two new chargeable FASTPASS tickets,  FASTPASS PREMIUM and FASTPASS ONE on 10 May 2017.

A FASTPASS PREMIUM ticket will cost €90.00 and gives unlimited access to all the rides with FastPass access for an entire day, and a FASTPASS ONE ticket will give you FastPass access to one ride for €15.00

Standard FASTPASS tickets will remain free of charge and will be available from the rides equipped with FASTPASS ticket machines.

Disneyland Paris experimented with chargeable VIP FASTPASS tickets a few years ago. They  cost around €60.00 but were withdrawn from sale due to poor sales and after stolen tickets started to appear on eBay.

Full details are below:


FASTPASS PREMIUM
Unlimited and privileged access to Fastpass queues
Price : 90 Euros

Points of sale : All Disney Hotels and entrance of the parks

Validity : The day of purchase for one person

Use : From 10:30 AM to the attractions equipped with the Fastpass technology

Does not constitute a ticket to the Parks.

Non-exchangeable and non-refundable.

Can not be resold or resumed.

Disneyland Paris assumes no liability for loss or theft of your FASTPASS®

List of attractions equipped with FASTPASS® queues :

Big Thunder Mountain
Buzz Lightyear Laser Blast
Peter Pan’s Flight
Ratatouille
Rock’n Roller Coaster
Indiana Jones
Star Wars Hyperspace Mountain
Star Tours
The Twilight Zone Tower Of Terror
Flying Carpets Over Agrabah



FASTPASS ONE
Single access to the FASTPASS® queue of a single attraction

Price : 15 Euros

Validity : The day of purchase for 1 attraction 1 time only, for one person

Use : from 10:30 am (Except on certain dates depending on the opening time of the Parks) to the attractions equipped with the FASTPASS® technology

Points of sale : The shop closest to the desired FASTPASS® attraction (list below).

Disneyland Park :

Star Traders
Light Speed ​​Photography
Constellations
Temple Traders Shop
Thunder Mesa Mercantile Building
Sir Mickey’s Building

Walt Disney Studios :

The Disney Animation Gallery
Outdoor Kart  or Rock Around Shop
Chez Marianne
Tower Hotel Gift.

Does not constitute a ticket to the Parks.

Non-exchangeable and non-refundable.

Can not be resold or resumed.

Disneyland Paris assumes no liability for loss or theft of your FASTPASS®

List of attractions equipped with FASTPASS® queues:

Big Thunder Mountain
Buzz Lightyear Laser Blast
Peter Pan’s Flight
Ratatouille
Rock’n Roller Coaster
Indian Jonez
Star Wars Hyperspace Mountain
Star Tours
The Twilight Zone Tower Of Terror
Flying Carpets Over Agrabah

 

Source: Androland

 

TWDC increases their ownership of Disneyland Paris to 86.03%

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Euro Disney ‘Cash Tender Offer’ watch Day 4

Still no official press release from Euro Disney S.C.A. or the L’Autorité des Marchés Financiers (AMF) regarding the opening of the Cash Tender Offer.

But in documents published on the AMF website this week  it appears that the Offer has launched, as the EDL Holding Company LLC has been busy buying Euro Disney shares on the Euronext Paris at €2.00 a share.

So far this week The Walt Disney Company  has purchased 498,677 shares in Euro Disney S.C.A. via their subsidiary the EDL Holding Company LLC.

This takes TWDC’s  ownership of Disneyland Paris to around 86.03% with a total of 673,945,923 shares in Euro Disney S.C.A.

Here is a breakdown of what the EDL Holding Company have purchased this week:

It is now expected that L’Autorité des Marchés Financiers and Euro Disney S.C.A. will make an announcement on Tuesday 2 May 2017.


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Many thanks to @MrSliverMatch on twitter for bringing this to our attention.

Electroland premiares at Disneyland Paris on 8 July 2017

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Disneyland Paris will be hosting the very first edition of an electronic music concert featuring the Electroland concept, on 8 July 2017 which will allow 10,000 fans to experience an immersive experience with world-famous DJs, in a festive and friendly atmosphere, and cherry on the cake, will be access to the park’s attractions.

The DJ and American superstar producer Steve Aoki and the Australian duo NERVO are the headlining acts of this concert event. They will be joined by French DJ Michael Calfan and Richard Orlinski .

Taking possession of the park for an exclusive evening  between 7:00 pm to 12:00 am, Electroland will transform The Walt Disney Studios Park in Disneyland® Paris into a temple of electronic dance music.  This very first edition of Electroland promises to be magical.

Spectators will not only be able to attend an exceptional outdoor show, but also access the attractions of the park at night!  With a giant LED screen, projections at one of the park’s top attractions – The Twilight Zone Tower of Terror , the presence of exceptional guests and several memorable surprises – all in the magical and enchanting setting of the Disney world , Electroland will offer a breathtaking show.

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 Steve Aoki , the superstar of the electronic dance-music nominated at the Grammy Awards, is famous for the enthusiasm he unleashes at each of his concerts. As a solo artist, he is the author of the studio album “Neon Future I”, which has long remained at the top of dance / electronic album sales and contains the single “Delirious (Boneless)”, With Chris Lake and Tujamo featuring Kid Ink.

But the film “I’ll Sleep When I’m Dead” reveals a lesser-known facet of the artist: that of an autodidact, both entrepreneur and artist, who owes his success only to himself.  As the founder of the visionary label Dim Mak and producer, remixer and DJ among the most influential on the current scene, Aoki is an emblematic figure of the most trendy urban culture.

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NERVO is a duo composed of two Australian DJ sisters and songwriters, who have become famous after writing and producing hits for such renowned artists as Kylie Minogue, Ke $ ha, Pussycat Dolls, Afrojack, Steve Aoki and Miley Cyrus. To name just a few).  With more than 200 concerts a year under their belt, not to mention the premiere performances at the world’s biggest festivals, shows at the most famous clubs, from the Omnia of Las Vegas to the Ushuaia of Ibiza , NERVO is one of the most popular electronic music bands of the moment.

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Michael Calfan is a French artist who brings a new lease of life to the electronic music scene.  He says he wants to have fun and not take life too seriously, but his music is full of sensitivity, depth and emotion: “I find inspiration in all forms of art, everything that Emotion.  I may be an idealist, but I want to give people sensations, create memories and nostalgia”.  A task to which he excels in tubes like Treasured Soul, Nobody Does It Better and Thorns. Caracoling at the top of the charts, these titles have accumulated tens of millions of views, making Michael one of the most prominent DJs of the current electro scene.

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Richard Orlinski is the best-selling contemporary French artist in the world. His sculptures, articulated around the concept “Born wild”, are the fruit of a deep reflection on the animal instinct and human nature.  Curious about nature and eager to express his sensitivity through other artistic disciplines, he discovered a passion for music. 

In 2016, he released his first single “Heartbeat”, recorded with the famous Dutch singer Eva Simons, who will remain number one of sales in France for three consecutive weeks.  He is currently working on other titles in collaboration with other major names in international music.  

On the occasion of the 25th anniversary of Disneyland® Paris, Richard Orlinski created an exclusive Mickey Mouse sculpture, currently available in limited edition!

Orlinski_MM

Electroland is a musical event specially designed for the generation born with the Disneyland® Park 25 years ago, to which it will give the opportunity to see the park like never before.

Tickets are on sale from €68 and are available from:
electroland-disneylandparis.com

A first look at the new ride vehicles for Star Wars Hyperspace Mountain

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Disneyland Paris showed off the new ride trains for Space Mountain in a press release issued today.   The new trains are very reminiscent of the artwork originally used in the first incarnation of Space Mountain when it launched in 1995 as Space Mountain: De la Terre à la Lune / From the Earth to the Moon.

This gives us some hope that the Star Wars Hyperspace Mountain theme will just be temporary overlay and that some day roller-coaster fans will see a return of the classic Jules Verne theme to the ride.

 

D-10 before the first blast-off !

Star Wars Hyperspace Mountain will provide Disneyland Park guests with a brand new mission in the Star Wars™ galaxy, where they can join the famous Rebel Alliance and experience the thrills of an epic battle, totally immersed in the universe of the Star Wars™ films.

From May 7, guests will take their places in brand new vehicles, with a new built-in sound system that will enhance the experience even further. Here they are, awaiting their first passengers…

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The wait continues for an official announcement from the AMF.


Nothing officially received from Euro Disney or the L’Autorité des Marchés Financiers (AMF) so far today regarding the proposed Cash Tender Offer by The Walt Disney Company for Disneyland Paris but in an article published in Le Figaro this morning they seemed to believe that the Offer submited by TWDC for Euro Disney S.C.A. has been approved by the AMF.

 Meanwhile The Cash Tender Offer which was scheduled to start today has been postponed and the Shareholders Club have been informing enquiring shareholders that they will be contacted by e-mail soon to advise if and when the Offer will open.

If the Cash Tender Offer is  approved by the AMF Disneyland Paris shareholders will have the option to sell their shares at a cash price of €2.00 a share to TWDC.

If the Tender Offer is successful and TWDC owns at least 95% of Euro Disney at the end of the Offer they will then proceed to apply for a mandatory buy-out and delisting of Euro Disney from Euronext Paris stock exchange.

An English translation via Google Translate of the article published in Le Figro can be found here.


UPDATE

It appears that Le Figaro possibly jumped the starting gun as the original article published yesterday has now been removed from their website. 

There has still been no official communication from the AMF or Euro Disney regarding the authorisation of the Cash Tender Offer.

No announcement today from the AMF regarding the Tender Offer by TWDC for Euro Disney S.C.A.

No announcement has been made today (25 April 2017) from L’Autorité des marchés financiers (AMF) regarding the proposed Tender Offer by The Walt Disney Company for Euro Disney S.C.A. 

It was expected that the AMF were to  publish their clearance decision today regarding the Tender Offer TWDC has proposed for the takeover of Euro Disney S.C.A.

The Offer if approved by the AMF would see Disneyland Paris shareholders offered a cash price of €2 a share by TWDC and a recapitalisation of €1.5 billion to allow Euro Disney to continue its investments in Disneyland Paris, to repay most its debt and increase the Groups liquidity.

If the Tender Offer is successfully approved by the AMF, the intention of The Walt Disney Company  is to then proceed with a mandatory buy-out and delisting of Euro Disney shares from Euronext Paris, if at the end of the Tender Offer, TWDC owns at least 95% of Euro Disney’s shares.

Euro Disney makes a net loss of €166 million in the first six months of 2017

Logo_Euro_Disney_SCA

Euro Disney S.C.A.  published their six month end results today.   In the first six months until 31 March 2017 Disneyland Paris made a net loss of €166 million.  Resort revenues increased 2% to €613 million and operational costs decreased 1% to €756 million.  Due to the lateness of the Easter vacation period in 2017, the Easter holiday  figures are not included in this semesters figures

Theme park attendance increased upon 5% on last year, but revenues have only increased 1% to €345 million due to 3% decrease in average spending per guest.  The decrease in average spending per guest was explained by lower spending on admission tickets and merchandise.

The increase in attendance was due to more guests visiting from the United Kingdom and France, with  fewer guests visiting from Belgium.

Disney Hotels and Disney Village revenues increased 4% to €249 million mainly due to a 3%  increase in hotel occupancy due to visitors from the United Kingdom, and was partially offset by fewer guests staying at the hotels from France and from corporate business groups.

Real estate development  revenues increased by €6 million to €10 million due to higher land sales.  Marketing and sales expenses remained relatively flat compared to the prior-year period.

During the six months ended March 31, 2017, Euro Disney drew an additional €60 million under the €350 million Revolving Credit Facility. As of March 31, 2017, the Group has borrowed €190 million from the Revolving Credit Facility available from TWDC.  €160 million remains undrawn.

A summary of the results are below and the full report can be download in PDF format here.


EURO DISNEY S.C.A.
Announcement for
Six Months Ended March 31, 2017

• Resort revenues were €613 million, an increase of 2% compared to the same prior-year period due to higher volumes as the prior-year period was impacted by a four-day closure of the parks following the November 2015 events in Paris

• Costs and expenses decreased 1% to €756 million mainly due to a €38 million reduction in depreciation, partially offset by continued investment and costs associated with higher resort volumes

• Net loss at €166 million, decreased by €18 million compared to the prior-year period

• On March 25, 2017, Disneyland® Paris officially launched its 25th Anniversary celebration

•  In March 2017, the Supervisory Board issued its unanimous support for the cash tender offer announced by The Walt Disney Company (“TWDC”), which remains subject to Autorité des marchés financiers (“AMF”) approval. In its filing with the AMF, TWDC confirmed its support of a recapitalization of the Group of up to €1.5 billion.

(Marne-la-Vallée, April 20, 2017) Euro Disney S.C.A. (the “Company”), parent company of Euro Disney Associés S.C.A., operator of Disneyland® Paris, today reported results of the consolidated group (the “Group”) for the six months ended March 31, 2017.

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key_stats

Commenting on the results, Catherine Powell, Présidente of Euro Disney S.A.S., said:

“This semester, we recorded higher revenues with increased resort volumes; however the environment remains uncertain. Recently, The Walt Disney Company reaffirmed its commitment to Disneyland® Paris and to France announcing its intention to support a recapitalization of the Group of up to €1.5 billion. Along with the Board, we welcome this positive proposal that will enable us to continue our on-going investments and pursue our strategy to further strengthen and improve the resort.

Disneyland® Park looks more beautiful than ever as we celebrate our 25th Anniversary, including six fully renovated attractions and enhanced iconic park features. We look forward to sharing new products and entertainment experiences with our guests, Cast Members and partners during the festivities.”

SEASONALITY

The Group’s business is subject to the effects of seasonality and the last six months of the fiscal year, which include the summer months, usually include higher revenues. Consequently, the operating results for the six months ended March 31, 2017 are not necessarily indicative of results to be expected for the last six months of the fiscal year.

In addition, results for the six months ended March 31, 2017 have been unfavorably impacted by a shift in the Easter vacation period to the last six months of the fiscal year.

rev_segment

Resort operating segment revenues increased 2% to €613 million compared to €600 million in the prior-year period.

Theme parks revenues increased 1% to €345 million due to a 5% increase in attendance as the prior-year period was impacted by the November 2015 events in Paris, which included a four-day closure of the parks. This increase was partially offset by a 3% decrease in average spending per guest. The increase in attendance was mainly due to more guests visiting from the United Kingdom and France, partially offset by fewer guests visiting from Belgium. The decrease in average spending per guest was due to lower spending on admissions and merchandise.

Hotels and Disney Village® revenues increased 4% to €249 million mainly due to a 3 percentage point increase in hotel occupancy. This increase resulted from more guests visiting from the United Kingdom, partially offset by fewer guests staying at the hotels from France and business groups.

Real estate development operating segment revenues increased by €6 million to €10 million due to higher land sale activity. Given the nature of the Group’s real estate development activity, the number and size of transactions vary from one period to the next.

costs

Direct operating costs decreased 2% compared to the prior-year period due to lower depreciation in the currentyear period. The lower depreciation is the result of the lower carrying value of the Group’s long-lived assets due to the €565 million impairment charge recorded as of September 30, 2016. This decrease was partially offset by continued enhancements to the guest experience, which includes new shows and hotel refurbishments, as well as costs associated with higher resort and real estate activities. In addition, the Group incurred increased labor costs due to an amendment of its employee retirement plan and incremental security costs.

Marketing and sales expenses remained relatively flat compared to the prior-year period.

General and administrative expenses increased 7% mainly due to higher labor costs, including the amendment of the employee retirement plan.

charges

Net financial charges remained flat at €19 million compared to the prior-year period.

NET LOSS

For the six months ended March 31, 2017, the net loss of the Group decreased to €166 million from €184 million in the prior-year period.

CASH FLOWS

Cash and cash equivalents as of March 31, 2017 were €66 million, down €47 million compared with September 30, 2016. Cash used in the Group’s activities for the six months ended March 31, 2017 totaled €47 million compared to €147 million used in the prior-year period. This variance resulted from:

cash_flow

Cash generated by operating activities for the six months ended March 31, 2017 totaled €23 million compared to €55 million used in the prior-year period. This variance resulted from a waiver of royalties and management fees payment in the current-year period, compared with €47 million of royalties and management fees paid in the prior-year period, as well as lower working capital requirements.

In November 2016, The Walt Disney Company (“TWDC”) agreed to waive two years of royalties and management fees, commencing with the payment for the fourth quarter of fiscal year 2016, to provide the Group liquidity above its remaining undrawn revolving credit facility granted by TWDC (the “Revolving Credit Facility”).

Cash used in investing activities for the six months ended March 31, 2017 totaled €129 million compared to €89 million used in the prior-year period. This variance was due to investments to enhance the guest experience in preparation for Disneyland® Paris’ 25th Anniversary celebration as well as cash provided to the Les Villages Nature de Val d’Europe S.A.S joint venture.

Cash generated by financing activities totaled €59 million for the six months ended March 31, 2017 compared to €3 million used in the prior-year period. During the six months ended March 31, 2017, the Group drew an additional €60 million under the €350 million Revolving Credit Facility. As of March 31, 2017, the Group still has a €160 million undrawn Revolving Credit Facility available from TWDC.

UPDATE ON RECENT AND UPCOMING EVENTS

Evolution of TWDC’s ownership, proposed cash tender offer and recapitalization plan

In February 2017, TWDC through its subsidiary EDL Holding Company LLC, acquired 90% of Kingdom 5-KR-11, Ltd shares in the Company at a price of €2.00 per share, increasing its interest in the Company to 85.7%. The consideration was paid in shares of TWDC common stock.

In connection with this transaction, TWDC announced its intention to launch a tender offer (through its subsidiaries EDL Holding Company LLC, Euro Disney Investments S.A.S. and EDL Corporation S.A.S.) for all of the Company’s shares not already owned by TWDC subsidiaries, other than treasury shares, at a price of €2.00 per share (the “Tender Offer”) to be paid in cash. In addition, TWDC announced its intention to proceed with a mandatory buy-out and delisting of the Company’s shares from Euronext Paris, if at the close of the Tender Offer, it owns at least 95% of the Company shares.

Further TWDC committed to support a recapitalization of the Group of up to €1.5 billion subsequent to the completion of the Tender Offer. Proceeds from the recapitalization would be used to enable the Group to continue its investments in Disneyland® Paris, repay most or all its indebtedness and increase its liquidity.

On March 30, 2017, TWDC and the Company filed, respectively, the draft Tender Offer document and the draft response document (including the independent expert report) with the French Autorité des marchés financiers (“AMF”). The documents remain subject to AMF review and approval. Once approved, the AMF will publish a clearance decision relating to the Tender Offer on its website and such decision will entail approval (visa) by the AMF of the Tender Offer document and the response document.

For more information, please refer to the draft Tender Offer document and the draft response document which are available on the Company’s and the AMF’s websites, as well as the related press releases.

Launch of Disneyland® Paris 25th Anniversary Celebration

On March 25, 2017, Disneyland Paris launched its 25th Anniversary celebration, which features enhanced attractions including Star Wars Hyperspace Mountain: Rebel Mission and Star Tours: The Adventures Continue. The festivities also include two new daytime shows and a new parade. In the evening, guests can enjoy a new nighttime spectacular, including state-of-the-art technology, sound, lights, projections, fountains and new pyrotechnic effects.

Economic and social impact of Disneyland® Paris over the last 25 years

A new study on the socio-economic impact of Disneyland Paris was issued in February 2017 by the interministerial Delegation for the Euro Disney project in France. The study covers the 25-year period since opening in 1992. The study confirms Disneyland Paris as Europe’s number one tourist destination and as the fifth largest hotel complex in France. Some notable mentions for the last 25 years contained in the report are as follows:

•  320 million guests visited Disneyland Paris over the last 25 years

•  56% of guests come from other countries, primarily in Europe, and 44% come from France

• €68 billion of value added to the French economy has been generated by Disneyland Paris

•  56,000 direct, indirect and induced jobs have been created by Disneyland Paris activity

•  500 different job roles at Disneyland Paris, 100 nationalities, 20 languages spoken highlight Disneyland Paris as a major employer in France and Europe

For more information, please refer to the Company’s website:

Next scheduled release:
Availability of the 2017 Interim Report in May 2017

[ END ]

CIAM rejects TWDC offer of €2 a share.

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The CIAM investment fund said on Tuesday (18 APril 2017) that the price offered by The Walt Disney Company to Euro Disney S.C.A. shareholders of €2.00 per share, is unfair to minority shareholders.

The French asset fund manager, which holds approximately 1.4% of Disneyland Paris shares, adds in a statement that the minimum acceptable price is €2.50 per share.

The Walt Disney Company announced in February its intention to take full control of Euro Disney  after increasing its stake in Disneyland Paris by acquiring most of the shares of Kingdom Holding, the holding company of the Saudi prince Al Walid bin Talal.

TWDC plans to recapitalize Euro Disney up to a maximum of €1.5 billion to reduce the parks debt and improve its financial situation.  Disney is proposing two euros per share for minority shareholders, representing a 67% premium on the closing price of Euro Disney shares on 9 February, the day before the announcement of the offer.

The Autorité des Marchés Financiers (AMF) is expected to announce their decision on whether they will allow The Walt Disney Company to takeover Euro Disney on  the 25 April 2017.

If The Walt Disney Company takeover Offer is approved by the AMF, the offer is scheduled to open to shareholders on 26 April and will run until 23 May 2017.

If The Walt Disney Company obtains at least 95% of the share capital and voting rights of Euro Disney, TWDC intends to withdraw Euro Disney from the stock exchange and proceed with a mandatory takeover of the company on 8 June 2017.

 

Could Apple be considering a potential takeover of Disney?

According analysis from RBC Capital Markets, Apple Inc could potentially pull off a $200 billion plus takeover of The Walt Disney Company.

The takeover would create a company worth $1 trillion with “almost limitless opportunities in content and technology.”

“Recently, investors have increased their expectations that Apple could seriously consider acquiring Disney,” RBC Capital Markets analysts Steven Cahall and Leo Kulp wrote in a note to clients on Thursday.

 The Apple merger and aquisistion rumor mill  started last autumn, when Tim Cook,  Chief Executive Officer of Apple told analysts that Apple was “open to acquisitions of any size.”

Apple executives met with Time Warner senior management in late 2015 in a discussion that raised the possibility of a merger — before AT&T moved in on its $85 billion bid for Time Warner.

The Apple-Disney aquisistion roumors comes as analysts in the last few months have debated the possibility that Disney would make a move to buy Netflix — a highly leveraged transaction that some view as needlessly risky.

Would Apple shareholders support such a move? Assuming a 40% premium for The Walt Disney Company, the deal would carry a hefty $237 billion price tag.

If Apple investors balk, TWDC could consider spinning off assets like ESPN and the troubled Theme Park division to make the deal more palatable.

“We like Disney’s fundamentals. Assuming Apple sees the same thing and has the cash, investor anticipation of a prospective transaction only adds conviction to the momentum we see in Disney’s shares,” Cahall and Kulp wrote.

Shares in Apple closed at $141.05 on Friday, and The Walt Disney Company ended the week at $113.20.

Answers to the Shareholders’ Written Questions from the March 2017 AGM

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Euro Disney S.C.A. received ten written questions from two shareholders for this years Annual General Meeting.

The following are the questions received from M. Michel Bayard (individual shareholder): 

Question  1: M.  Michel  Bayard  would  like  to  understand  why  revenues  decreased  while  costs and expenses increased in Fiscal Year 2016? 

Fiscal  Year  2016  was  particularly  difficult  for  the  tourism  industry  in Île -de-France.  It  was  marked  by  an  accumulation  of  external  factors  that  had  a  negative  impact  which  include:  security concerns following the events in Paris, Brussels and Nice, as well as strikes in France  and  exceptionally  poor  weather conditions,  including flooding in Paris.  In addition, the Euro  Disney Group (the “Group”)  closed the parks for four  days to  respect the  national period of mourning.

Over  the  same  period,  costs  increased  driven  by  the  Group’s  continued  focus  on  its  long- term  strategy of investing in  the  guest  experience  and  entertainment.  These planned  cost  increases  were  necessary  in  executing  our  strategy  and  included  renovations  of  our  parks and hotels, and preparations for the 25th Anniversary.

In addition, following the events in Paris, Nice and Brussels,  the Group incurred  additional  costs related to  incremental security  measures,  as the safety of visitors and employees  is a  top priority at Disneyland Paris.

The  Group  remains  attentive  to  the  evolution  of  its  costs  and  will  continue  to  pursue  a  prudent approach in operating the business and executing its long-term strategy.

Question  2: M.  Michel  Bayard  expressed  being  perplexed  about  the  impairment  charge  recorded this year and he would like to know why the impairment was not anticipated in  the previous years? 

In   accordance   with  the   accounting   rules,   an   impairment   test   is   only   required  to   be  performed if there is an  indicator of impairment.  Due to the decline in revenue of the Group  in fiscal year 2016  resulting from the challenging economic environment in Europe (and in  particular  the  overall  tourism  industry  in  Paris)  it  was  determined  that  an  indicator  of  impairment existed.  Accordingly, the Group was required to perform an impairment test on  the Group’s asset in the current year.

Question 3: M. Michel Bayard would like to know how the Group intends to limit the risk  that its investments will not have a positive impact on its revenues .  

The  Group’s  strategy  is  a  long-term  strategy.  This  strategy  aims  to  enhance  the  guest  experience, and therefore,  increase guest satisfaction as well as average spending. If guests  are  satisfied  they  return  to  the  Park,  recommend  the  Park  to  family  and  friends,  and  consume more in the Disneyland Paris parks, hotels and boutiques.

Guest satisfaction  related to our recent investments (i.e., renovated hotels and Park assets)  is increasing.  The rehabilitation of the Newport Bay Club Hotel is a perfect example: since its  reopening,  guest  satisfaction  has  increased  by  30  points  and  we  have  seen  a  double-digit  increase in rates.

The Group monitors  its investments closely, including the ongoing assessment of the impact  from prior investments (i.e., financial, guest satisfaction, operational).

Question  4: M.  Michel Bayard  estimates/believes  that  the reference document  does  not  sufficiently detail the impairment charge. 

The  depreciation  of  our  long-term  assets  is  detailed  in  section  B.3  “Consolidated  financial  statements”,  note  3  “Property,  plant  and  equipment,  investment  property  and  intangible  assets”, section 3.3 “Impairment charge” (see page 83).

In this section, the Group provides robust disclosure on the  assumptions used in calculating  the value in use of the assets in determining the impairment charge.

Question 5: M. Michel Bayard asked for more information on royalties: 1) Is the 10% rate comparable with market rates? 2) Is it normal that a parent company with the amount of revenues as The Walt Disney Company charges its subsidiary for certain costs?

On average royalties represent 5% of total revenue, which is a lower level than some market practices.

These royalties are paid as compensation for the use of the intellectual property rights of TWDC. This intellectual property constitutes the “terroir” of Disneyland Paris that makes it unique and creates the Disney magic.

Royalties to be paid  by the Group for the  use of these  rights are equal to:

•    10% of gross  revenues  (net of taxes) from  rides, admissions and  related fees  (such as   parking, tour guides and similar service fees) at all Theme  Parks and attractions;

 •    5%  of gross  revenues  (net  of taxes) from  merchandise, food  and  beverage sales  in  or             adjacent  to  any  Theme  Park  or  other  attraction,  or  in  any  other  facility  (with  the             exception        of   the     Disneyland®         Hotel),   whose         overall      design      concept       is   based             predominantly on a  Disney theme;

  •    10%   of   all   fees   paid   by   participants   (net   of   taxes)   (see   section   A.4.2.   “Other   Significant Operating Agreements” for more details); and

•    5%  of gross  revenues  (net  of taxes) from the  exploitation  of  hotel  rooms  and  related     revenues  at  certain  Disney-themed  accommodations.  None  of  the  Group’s  currently   existing  Hotels  at the  Resort  are  considered  Disney-themed  as  defined  in the  License  Agreement, except the  Disneyland  Hotel which is specifically excluded.

In  November  2016, The Walt  Disney  Company  agreed to waive the  payment  of two years  of  royalties  and  management  fees,  commencing  with  payment  for  the  fourth  quarter  of  Fiscal  Year 2016.

Following  are  the  questions  received  from  Charity  &  Investment  Merger  Arbitrage  Fund  (“CIMA”)   

Question 6: “How do you justify the significant increase in the  cost and  expense items of  the  consolidated  income statement for the fiscal year 2016?   In particular the distribution  of variable compensation while the company recorded a significant loss.” 

Costs and expenses were up 5% compared to the prior year. This increase reflects  the long- term strategy  of the Group  of investing in the guest experience, including the renovation of  theme parks and hotels  (notably in preparation of the 25th Anniversary), higher salaries,  and other operating expenses (such as technology initiatives and mobile applications). The Group  also  increased  its  security  costs  following  the  events  in  Paris,  Nice  and  Brussels.  These  increases were partially offset by lower costs associated with declining attendance.

The  wage  policies  implemented  by  the  Group  are  market-consistent  and  comparable  to  practices implemented by companies of similar size and / or operating in the same industry.

Question 7: “How do you justify the 40% increase in expenses over the years 2006 to 2016  while over the same period the revenues increased only by  17.5%?” 

From 2006 to 2016 our costs  have grown at a compounded annual rate of approximately 3%.   Over the same  period, the compounded annual growth  rate of inflation was  1.2%.

During  this  time,  the  Group’s  strategy  focused  on  investing  in  the  guest  experience  to  generate  long-term  revenue  growth.  This  strategy  is  proving  successful.  Disney’s  Newport  Bay Club and other renovations in the parks are good examples. The Group is also investing  in entertainment and shows that drive guest satisfaction, including the launch of the show  The Forest of Enchantment: A Disney Musical Adventure and Mickey and the Magician.

Additionally during this period, the Group invested in areas that are  less visible to our guests.   Examples  include  investments  in  the  Cast  Members  who  deliver  the  service  to  our  guests  and create the Magic, as well as  invests  in technology  that  makes  online tools and mobile  applications available to guests before and during their stay.

Regarding revenue performance, it is important to note that from 2006 to 2016, the Group  experienced economic crises, terrorist attacks, and political instability, all of which negatively  impacted  revenue  growth  during  the  period.    Had  the  Group  not  pursued  the  strategy  of  investing  to  improve  the  guest  experience,  the  impact  of  these  unfavorable  events  would  have likely been much more detrimental.

Question  8: “How  exactly  do  you  justify  the  2  massive  depreciation  charges  announced  respectively for €565 million for the assets of Euro Disney Associés S.C.A. and €953 million  for the shares of Euro Disney Associés S.C.A. held by Euro Disney S.C.A. ?” 

As  disclosed  in  our  2016  Reference  Document,  “as  a  result  of  the  adverse  economic  conditions  of  the  tourism  industry  in  Paris,  which  contributed  to  the  deterioration  of  the  operating results of the Group for Fiscal Year 2016, the Group performed an impairment test  of all its long-lived assets and determined its assets were impaired. Accordingly, the Group  recorded a  charge  of  €565  million  in  the  year.”   This impairment charge  was  calculated  in  accordance with International Financial Reporting Standards (“IFRS”).

Separately, the Company prepared stand-alone statutory financial statements under French  accounting principles (being different than IFRS principles) with the Company’s primary asset  being its investment in the equity of its subsidiary  Euro Disney Associés S.C.A. (“EDA”). The  Company   performed   an   impairment   test   of   its   investment   in   EDA   and   recorded   an impairment charge of €953 million.

These asset depreciation charges have no impact on the liquidity position of the Group  and  the Company or on their cash flows.

More  information  on  these  asset  impairment  charges  are  included  in  the  2016  Reference  Document  of  the  Group,  notably  notes  2.2.5.5.  “Impairment  of  long-lived  assets”  and  3.3.  “Impairment charge” of the consolidated financial statements and notes 2.3. “Investments in  subsidiaries” and 3.1. “EDA” of the statutory financial statements of the Company.

Fiscal years 2014 and 2016 included  impairments charges which impacted overall accounting  losses in those years.

For  Fiscal  Year  2016,  the  Company  recorded  a  net  loss  of  953  million  euros  due  to  an  impairment  of  its  investment   in  the  equity  of   its  main  subsidiary,  EDA,  the  operating  company of  Disneyland® Paris.   In Fiscal Year 2014, the Company recorded a  net loss of 472  million  euros,  of which 471 million euros  related to an impairment charge of its investment  in the equity of  EDA.

Excluding the 2014 and 2016  impairments, the average statutory loss of Euro Disney S.C.A.  from 2014 to 2016 was €3 million.

Question 10: “How do you justify the impairment of the assets at the level of Euro Disney  Associés  S.C.A. and EDL Hôtels  S.C.A., while the first quarter shows an upward trend (up  3% in revenues) and you assume on page 83 of the reference document for 2016 that  ‘the  group  will  benefit  from  its  25th  anniversary  celebration,  the  economic  recover y  of  the  tourism industry in Paris and its long-term strategy of investing in the guest experience’?” 

As  detailed  on  page  83  of  the  2016 Reference Document,  the  calculation  of  value  in  use  takes into account  a  “revenue growth assumption higher than the historical average as the  calculation  assumes  the  Group  will  benefit  from  its  25th  anniversary  celebration,  the  economic recovery of the tourism industry in Paris and its long-term strategy of investing in  the guest experience.”

Finally, while performance in the first quarter was  positive, it was in comparison to the first  quarter  of  fiscal  year  2016,  which  was  significantly  impacted  by  the  events  in  Paris,  the  closure of our parks for four days, and the subsequent decline in bookings.

Source: Euro Disney S.C.A.