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“ I think what I want Disneyland to be most of all,
is a happy place - a place where adults and children
can experience together some of the wonders of life,
of adventure and feel better because of it.”Walt Disney
2 0 0 3 A N N U A L R E V I E W
EURO DISNEY S.C.A.
Welcome
2004 Action Plan 26/39
1 Magic Every Day 28/31
2 Innovation 32/35
3 Marketing 36/39
Sustainable Development 40/49
Interview with the Chairman 4/9
The Management Team 10/11
Corporate Governance 12/13
The Supervisory Board 14/15
Key Figures 16/17
Stock Information and Shareholders’ Club 18/19
Highlights of 2003 20/25
T A B L E O F C O N T E N T S 2 / 3
In addition, I put all of our in-house resources to work inorder to analyse and thoroughly understand our Europeanmarket, our guests, our competition and of course ourcommercial partners. The overall guiding principle behindthe first phase was to start with an open mind in order todevelop initiatives that satisfy the real expectations of themarket. Listening to all stakeholders before implementationhas always been my method.
HOW WOULD YOU SUM UP THE PAST YEAR?
A L : In a difficult context, 2003 has confirmed the strongfundamentals of Disneyland® Resort Paris.
Disneyland Resort Paris is the undisputed leader in theEuropean market for theme parks, far ahead of all its competitors, as well as a leading short-break destination in Europe. This leading position is due to thestrength of our resort concept: 60% of our guests visitboth parks during their stay and enjoy more than 50 attractions. The average length of our guest’s stay hasincreased, thanks to the Walt Disney Studios® Park, diversified offers in our hotels, at Disney Village and Vald’Europe.
Our guest satisfaction rate (those guests who are “completely or very satisfied”), which was already veryhigh, increased to 77% this year for the resort.
Moreover, 90% of our guests intend to recommendDisneyland Resort Paris after their visits and 67% havethe firm intention to come back.
DESPITE THE FUNDAMENTALS, WHY WERE THE RESULTS
FOR 2003 SO CHALLENGING?
A L : We have to look at 2003 in two distinct periods:
• A good first half-year, with revenues up by 8 %, thanksto increased park attendance and hotel occupancy, and anincrease in spending per guest,
YOU HAVE BEEN APPOINTED, CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF
EURO DISNEY S.A. ON JULY 1, 2003. WHAT WERE YOUR FIRST PRIORITIES,WHEN YOU ARRIVED?
A L : My first priority was to listen and engage all employees within the company indeveloping a growth strategy based on an organisational principle that I have used formany years: the inverted pyramid. This is a simple management principle that consistsof listening to and empowering those who are closest to our guests. This is why we created the summer camps, which were held in September with the participation of4,000 cast members. More than 4,000 ideas were put forward and are now being analysed or implemented. The success of the summer camps shows the mobilisation ofour internal forces and our employees’ dedication to the company’s success.
• A downturn in the travel and tourism sector as a whole in thesecond half-year, with year over year revenues dropping by 7 % in the third quarter and by 11 % in the fourth quarter, dueto a reduction of park attendance and hotel occupancy, despitea continued increase in spending per guest.
WHAT FACTORS INFLUENCED THE DIFFICULTIES IN THE
TRAVEL AND TOURISM INDUSTRY?
A L : In 2003, the entire industry had to cope with an exceptional combination of negative factors: the war in Iraq, terrorist threats all over the world, the SARS epidemic, vehement social protests in France and a paralysing heat wave during the summer.
Moreover, the economic climate was unfavourable in allof our main European markets including France.
I N T E R V I E W W I T H T H E C H A I R M A N 4 / 5
André Lacroix
Chairman and Chief Executive Officer, Euro Disney S.A.
KEY DATES :
July 1, 2003Named Chairman andChief Executive Officer ofEuro Disney S.A.
1996-2003 Burger King Last position, from 2001- 2003:President of Burger KingInternational
1988-1996Pepsi Cola InternationalLast position from 1993-1996:General Manager, Holland,Austria, Belgium and Switzerland
1985-1988Colgate Palmolive / France &Germany
1983-1985 Ernst & Young / West Africa
interview“We must capitalise on our uniqueness: the Disney Magic.”
I N T E R V I E W W I T H T H E C H A I R M A N 6 / 7
WHAT IS THE STATUS OF THE FINANCIAL
RESTRUCTURING?
A L : The negotiation of a new financial structure designedto provide adequate capital is a complex task. We areworking with all of our partners to finalise negotiations.
CAN YOU TELL US MORE ABOUT THIS FIRST STEP?
A L : On November 3, 2003, the Company obtainedwaivers from its lenders, effective through March 31,2004, with respect to certain financial covenants andother obligations, including a reduction in certain securitydeposit requirements.
The purpose of this agreement is to give management, thelenders and The Walt Disney Company (TWDC) time tofind resolution regarding the Company’s financialsituation. The Company has prepared its financial reportsfor fiscal year 2003 assuming the success of these negotia-tions. Absent such a timely resolution, the waivers wouldexpire and management believes the Company would thenbe unable to meet all of its debt obligations.
“Disneyland® Resort Paris should
benefit from the solid and steady growth
of the Theme Parks market in Europe.”
84% NON VISITORS
16% VISITORS
75% NON VISITORS
25% VISITORS
OPPORTUNITY FOR GROWTH LINKED
TO CUMULATIVE PENETRATION RATES
Total European Population*
* Includes France, UK, Germany, Benelux, Italy and Spain** Core target: families with children (3 to 15) + young adults (20 to 35)+ kids core target + income qualifier.Source: Advancy Consulting, LabLB May 2001DLRP: Disneyland Resort Paris
DLRP European Core Target**
HIGH GUEST SATISFACTION
Intention to recommend
Source: Consumer Knowledge, FY’02 and FY’03 Guest Satisfaction Barometer
Intention to revisit
90% DEFINITELY YES
9% PROBABLY YES
1% NO
67% DEFINITELY YES
27% PROBABLY YES
6% NO
HOW DO YOU ENVISION THE THEME PARKS MARKET’SFUTURE IN EUROPE?
A L : I am convinced that Disneyland® Resort Paris shouldbenefit from the solid and steady growth of the theme parks market in Europe. This is still a young and underdevelopedmarket compared to the level of development of the themeparks market in the United States. Fifteen years ago, therewere very few theme parks in Europe. We developed thismarket and consumers have become increasingly receptive.A recent study from PricewaterhouseCoopers (dated May2003) forecasted an annual revenue growth of 4.1% forthe theme parks market over the next four years.
There are very strong growth opportunities in Europe. In a European population of 329 million, representing our coremarket, Disneyland Resort Paris is the leader with a cumu-lative penetration of only 16%. Therefore, our real growthopportunity is to persuade those Europeans who have nevercome to Disneyland Resort Paris to make their first trip.
We know, furthermore, that once they have visited ourresort, consumers come back several times due to our veryhigh satisfaction rates.
WHAT ABOUT THE CHANGES IN THE TOURISM TRENDS?
A L : Recent developments in the travel and tourism industry also offer a bright outlook for Disneyland ResortParis.
We are the leader in the theme parks market and thereforewe are in an excellent position to take advantage of thegrowth prospects in this market.
The short-break market in Europe is growing steadily. The growth of the low-cost airlines as well as the developmentof new infrastructure, such as the opening of the Thalystrain connection with Germany in December 2003 and thereduction in travel time brought by Eurostar, not to mentionthe construction of the “TGV EST” high-speed rail lineshould boost the number of medium-range travellers.
André Lacroix
Chairman and Chief Executive Officer,Euro Disney S.A.
“In 2004, we plan to execute
our relaunch stategy and implement
our financial restructuring.”Then, we have to motivate consumers with a strong andfresh European advertising approach.
Finally, a decentralised sales strategy will be implemented.We have decided to mobilise our entire European sales network behind the implementation of a new sales strategy.We will be giving our European offices greater autonomyand responsibility and in return, we will be asking them tocome up with better programmes to address the specificrequirements expressed by their own customers.
WHAT ARE THE KEY FACTORS IN ACHIEVING
LONG-TERM SUCCESS?
A L : We have substantial growth opportunities and wehave four strategic assets that can be leveraged: the Disneybrand, a unique tourist destination in the heart of Europe,our know how that brings legends and fantasy to life andour Cast Members who are dedicated to deliver a magicalexperience to every guest everyday.
WHAT IS “NEED MAG?C” ABOUT?
A L : Disneyland® Resort Paris is launching an innovativeEuropean communication campaign. Fresh, direct andhumorous, “Need Mag?c” is flexible enough to touch thehearts of nations across Europe. The “Need Mag?c” conceptcomes from a desire to interact in a new way with potentialguests who might be considering a visit to the resort; encouragingthem to perceive the brand differently and explaining thatDisneyland Resort Paris is the only magical destination inEurope.
An entirely new style web site has been specially developedfor the launch: needmagic.com. The site immerses guestsinto the “Need Mag?c” concept, giving them a wide varietyof ways to share and experience the magic online. The heartof the site offers a once in a lifetime opportunity for thevisitors to star in their very own Disney movie scene andexperience the life of a movie star: Disney’s Magicall.
With the “Need Mag?c” campaign, we invite Europeansto take a trip to Disneyland Resort Paris and when theyarrive, they will enjoy a truly magical experience duringtheir stay.
HOW STRONG ARE DISNEYLAND® RESORT PARIS
FUNDAMENTALS?
A L : Disneyland® Resort Paris has very strong fundamentalsand substantial growth opportunities.
Disneyland Resort Paris is the leading tourist destination inEurope with over 140 million visits since it opened in 1992.In just over ten years, Disneyland Resort Paris has become atourist destination that has no European rival with transportinfrastructure connecting it to all of Europe’s capital cities.We are one of the leading employers in the Ile de FranceRegion, with 12,200 employees of 103 different nationalities.We operate the largest hotel group in the Paris market, a unique convention centre hosting 1,200 events a year and ahighly profitable real estate development programme. We have developed partnerships with the finest corporationsin the leisure and real estate industries: Pierre & Vacances,Marriott, Holiday Inn and the Taittinger Group.
WHAT IS YOUR STRATEGY FOR
THE IMMEDIATE FUTURE?
A L : One of our key priorities is the new sales and marketingstrategy.
We know that, thanks to our high rates of satisfaction, ourguests return regularly after their first visit. The primaryobjective of our new marketing strategy is thus to winover more “First Timers”, that is the Europeans who havenever visited Disneyland Resort Paris.
First, we must capitalise on our uniqueness and our competitive advantage, the Disney Magic. We must alsoinnovate to steadily enhance our product offering.
I N T E R V I E W W I T H T H E C H A I R M A N 8 / 9
YANN CAILLERE,President and Chief Operating Officer, has been with Euro Disneysince 1995 and was appointed to his current position in July 2003.Formerly Senior Vice President of Operations of Euro Disney, he is credited with successfully reorganising and streamliningoperations for all the parks, hotels and Disney® Village. He wasalso instrumental in the opening of Walt Disney Studios® Park.Prior to joining Euro Disney, Yann was the General Manager ofthe Hotel Sofitel in Paris.
JEFFREY R. SPEED,Senior Vice President and Chief Financial Officer, was appointed to this position in July 2003. Prior to joining Euro Disney, he spent10 years with The Walt Disney Company, most recently serving asVice President Corporate Finance and Assistant Treasurer. In this role,he had worldwide responsibility for corporate finance, capital marketsactivities, structured and project finance, syndication of credit facilities,and banking and rating agency relationships. Prior to joining TheWalt Disney Company, he spent 9 years with Price Waterhouse.
PHILIPPE MARIE,Vice President Communications and External Relations, joinedthe Company in January 2001 and served as Director of ExternalRelations until July 2003. Prior to joining Euro Disney, he spent 5 years with JC Decaux, where he was Director of Legal andMunicipal Relations.
ANDRÉ LACROIX,Chairman and Chief Executive Officer, was appointed to this position in July 2003. Prior to joining Euro Disney, he spent 7 years with Burger King, where he was President of Burger KingInternational, responsible for development, profitability andmanagement of the brand outside North America. He positionedBurger King as the fastest growing brand in the internationalquick service market. Prior to his Burger King experience, heworked for Pepsi Cola, Colgate Palmolive and Ernst & Young.
PHILIPPE GAS,Vice President Human Resources, previously worked at EuroDisney from 1991 to 1997. He is serving as Vice President HumanResources on an interim basis. Since June 2000, Philippe has served as Regional Vice President for Asia Pacific HumanResources for The Walt Disney Company. Prior to this position,he was Director of International Human Resources in Burbank,California.
PASCAL QUINT,Vice President and General Counsel, joined Euro Disney in 1996.He was previously General Counsel of Sanofi Pharma. Previously,he served in several positions in the legal departments of majorcompanies, including Euro Disney SCA from 1991 to 1994.
DOMINIQUE COCQUET,Senior Vice President Development and External Affairs,joined Euro Disney in 1989 as Manager of Real Estate Finance. He was promoted in 1992 to the rank of Vice President in chargeof Development and External Relations, and supervised the doubling of the capacity of Disney Village, the creation of Walt Disney Studios Park, the opening of 2,200 additional hotel rooms, and the development of the Val d’Europe community.
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T H E M A N A G E M E N T T E A M 1 0 / 1 1
The Management Team
Through September 30, 2003, the Company had granted a total of 7,726,863 options, net of cancellations and exercises,(to acquire one share of common stock each) to certain managers and employees at a market exercise price whichrepresented the average closing market price over the preceding 20 trading days. The options are valid for 10 years fromtheir issuance date and become exercisable over 5 years in equal instalments beginning one year from the date of grant. Upontermination of employment, any unvested options are cancelled. However, options that are exercisable as of the date oftermination, may be exercised within a specified period of time or else they are cancelled.
In March 1999, the Company’s shareholders approved the implementation of a second employee stock option plan, withsubstantially the same terms as the 1994 Plan, authorising the issuance of stock options for acquisition of up to 2.5 % ofthe Company’s outstanding common stock. The options granted under that plan are valid for 8 years from their issuancedate. Through September 30, 2003, the Company had granted a total of 21,582,800 options, net of cancellations andexercises, under this plan.
In May 2003, the Company’s shareholders approved the implementation of a third employee stock option plan, withsubstantially the same terms as the two previous ones, authorising the issuance of stock options for acquisitions of up to2.5% of the Company’s outstanding common stock. The options granted under that plan will be valid for a maximum of 8 years from their issuance date. Through September 30, 2003, the Company had not granted any options under this plan.
A SUMMARY OF THE COMPANY’S STOCK OPTION ACTIVITY FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2003 IS AS FOLLOWS:
THE FOLLOWING TABLE SUMMARISES INFORMATION ABOUT STOCK OPTIONS AT SEPTEMBER 30, 2003:
Options Outstanding Options Exercisable
RANGE OF NUMBER OF SHARES WEIGHTED-AVERAGE WEIGHTED-AVERAGE NUMBER OF SHARES WEIGHTED-AVERAGEEXERCISE PRICE (IN THOUSANDS) REMAINING EXERCISE PRICE (IN THOUSANDS) EXERCISE PRICE(IN EUROS) CONTRACTUAL LIFE (IN EUROS) (IN EUROS)
(IN YEARS)
0.77 – 1.00 13,219 6 0.80 6,496 0.80
1.01 – 2.00 15,460 5 1.16 8,504 1.21
2.01 – 2.50 631 2 2.32 631 2.32
29,310 5 1.02 15,631 1.09
OrganisationEuro Disney S.C.A. is a Société en Commandite par Actions. Under French law, this structure introduces a clear distinctionbetween the Gérant, which is responsible for operating the Company, and the Supervisory Board, which oversees the management of the Company.
The GérantThe Gérant of the Group is Euro Disney S.A., a French corporation, which is an indirect 99%-owned subsidiaryof The Walt Disney Company.
The Supervisory Board of Euro Disney S.C.A. The role of the Supervisory Board is to monitor the general affairs and the management of the Company in the bestinterests of the shareholders and to oversee the quality of the information communicated to them. The Supervisory BoardMembers’ Charter dictates fundamental obligations to which the members of the Board must conform. Several obligationsin this charter go beyond the demands of the law and the Company’s by-laws, requiring for example, each board member to own at least 1,000 Euro Disney S.C.A. shares. Four Supervisory Board meetings were held in fiscal year 2003.
A Financial Accounts Committee, composed of three members of the Supervisory Board, was created in 1997 to reviewaccounting and reporting issues as well as the internal and external audit processes. The members of the Financial AccountsCommittee are Mr Antoine Jeancourt-Galignani, Dr Jens Odewald and Mrs Laurence Parisot. Four meetings of the FinancialAccounts Committee were held in fiscal year 2003.
A Nomination Committee, composed of two members of the Supervisory Board, was created in 2002. Its role will be to propose candidates as members of the Board. The members of the Nomination Committee are Mr Philippe Labro andMr Thomas O. Staggs. No meeting of the Nomination Committee was held in fiscal year 2003.
Management Compensation and Corporate Positions and Directorships Held Compensation of the Statutory Management (Gérant), Euro Disney S.A.:
Euro Disney S.A. is responsible for the management of four companies within the Group: Euro Disney S.C.A., EDL HôtelsS.C.A., ED Resort S.C.A. and ED Resort Services S.C.A. Management fees due to Euro Disney S.A. by the Group were € 2.5 million for fiscal year 2003.
Compensation of the members of the Executive Committee of the Euro Disney Group:
The composition and number of members on the Executive Committee of the Group varied during the fiscal year 2003.Aggregate compensation due to the members during the period of their tenure totalled € 4.4 million. As of September 30,2003, these same officers held together a total of 3.0 million Euro Disney S.C.A. stock options.
Stock OptionsIn 1994, the Company's shareholders approved the implementation of an employee stock option plan (the “1994 Plan”)authorising the issuance of stock options for acquisition of up to 2.5% of the Company's outstanding common stock.
C O R P O R A T E G O V E R N A N C E 1 2 / 1 3
Number of Options (in thousands) Weighted-average Exercise Price (in euros)
BALANCE AT SEPTEMBER 30, 2001 25,325 0.98
OPTIONS GRANTED 9,893 1.10
OPTIONS EXERCISED (142) 0.81
OPTIONS CANCELLED (1,729) 0.96
BALANCE AT SEPTEMBER 30, 2002 33,347 1.02
OPTIONS GRANTED - -
OPTIONS EXERCISED - -
OPTIONS CANCELLED (4,037) 0.96
BALANCE AT SEPTEMBER 30, 2003 29,310 1.02
Corporate Governance
ANTOINE JEANCOURT-GALIGNANI President of the Supervisory Board, was elected to the Supervisory Board in 1989.
He was appointed as Chairman in September 1995. He is currently President of theBoard of Directors of Gecina. The term of office of Mr Jeancourt-Galignani expires atthe close of the Annual General Meeting which will deliberate upon the annualfinancial statements of the fiscal year ending September 30, 2004.
SIR DAVID PARADINE FROSTwas elected as a member of the Supervisory Board in 1999.
He is currently President of David Paradine, Ltd. and co-founder of London WeekendTelevision. The term of office of Sir David Paradine Frost expires at the close of theAnnual General Meeting which will deliberate upon the annual financial statements ofthe fiscal year ending September 30, 2004.
PHILIPPE LABRO was elected as a member of the Supervisory Board in 1996.
He was Vice-President and General Manager of RTL France Radio. He is currently ProjectDirector, Design and Operations of PhLCommunication SARL. The term of office of Mr Philippe Labro expires at the close of the Annual General Meeting which will deliberateupon the annual financial statements of the fiscal year ending September 30, 2004.
JAMES A. RASULO was elected as a member of the Supervisory Board in 2003.
He is currently President for Disney Parks and Resorts worldwide as well as the DisneyCruise Line, professional sports teams and “Imagineers”. The term of office of Mr JamesA. Rasulo expires at the close of the Annual General Meeting which will deliberate uponthe annual financial statements of the fiscal year ending September 30, 2005.
DR JENS ODEWALD was elected as a member of the Supervisory Board in 1989.
He is currently Chairman and Managing Director of Odewald and Compagnie GmbH.The term of office of Dr Jens Odewald expires at the close of the Annual GeneralMeeting which will deliberate upon the annual financial statements of the fiscal year ending September 30, 2005.
LAURENCE PARISOT was elected as a member of the Supervisory Board in 2000.
She is currently Chairman and Chief Executive Officer of IFOP. The term ofoffice of Mrs Laurence Parisot expires at the close of the Annual General Meetingwhich will deliberate upon the annual financial statements of the fiscal year endingSeptember 30, 2005.
THOMAS O. STAGGS was elected as a member of the Supervisory Board in 2002.
He is currently Senior Executive Vice-President and Chief Financial Officer of The WaltDisney Company. The term of office of Mr Thomas O. Staggs expires at the close of the Annual General Meeting which will deliberate upon the annual financial statements of the fiscal year ending September 30, 2004.
T H E S U P E R V I S O R Y B O A R D 1 4 / 1 5
The Supervisory Board
The aggregate compensation of the Supervisory Board (excluding The Walt Disney Company employees who do not receiveadditional compensation for their Supervisory Board functions) during fiscal year 2003 was € 160,071. A complete list ofother positions and directorships that each member of the Supervisory Board held in French or foreign companies as well asthe compensation paid by the Company to each individually during the fiscal year 2003 are detailed in the Consolidated EuroDisney S.C.A. Group Management Report.
Our Supervisory Board Members are:
“2003 was a very challengingyear for the European travel and tourism industry.”
Revenues for the year decreased 2.1% to total € 1,053.1 million. The reduced revenues reflect a prolonged downturn in theEuropean travel and tourism industry, strikes and work stoppages throughout France during the year, combined with challenginggeneral economic conditions in key European markets, partially offset by the impact of a full year of Walt Disney Studios® Park.
Excluding the impact of the Company’s fiscal year 2003 change in accounting principles for major fixed asset renovations(the “Accounting Change”), operating margin (earnings before lease and financial charges and exceptional items) for theyear declined 18.6% to € 143.0 million and the net loss increased from € 33.1 million to € 45.4 million.
On an as-reported basis, operating margin decreased 24.6% to € 132.4 million from € 175.7 million in the prior year. Afterlease and net financial charges and exceptional items, the Group’s net loss totalled € 56.0 million. The increased loss reflectsdisappointing revenues, higher direct operating costs due to the full year operations of Walt Disney Studios Park, and higheradvertising costs during the first semester, partially offset by lower royalties and management fees following the waiver of thepayment of these fees by The Walt Disney Company (Netherlands) B.V. and Euro Disney S.A. for the last three quarters of fiscal year 2003.
In millions of euros 2003 2002 2001
REVENUES 1,053.1 1,076.0 1,005.2
INCOME BEFORE DEPRECIATION, LEASE AND FINANCIAL CHARGES 198.0 239.8 239.2
INCOME BEFORE LEASE AND FINANCIAL CHARGES 132.4 175.7 185.2
LEASE AND FINANCIAL CHARGES (200.3) (170.8) (147.5)
INCOME/(LOSS) BEFORE EXCEPTIONAL ITEMS (67.9) 4.9 37.7
NET INCOME/(LOSS) (56.0) (33.1) 30.5
CASH FLOWS FROM OPERATING ACTIVITIES 88.1 48.7 143.6
CONSOLIDATED BORROWINGS* 2,207.3 2,219.8 2,569.1
EQUITY & QUASI EQUITY 1,237.2 1,397.6 1,430.7
CAPITAL INVESTMENTS** 24.8 277.5 243.9
INCLUDING FOR WALT DISNEY STUDIOS® PARK 2.4 228.6 191.2
*including debt of the unconsolidated Financing Companies and excluding the quasi equity bonds redeemable in shares (ORAs)**including deferred charges
BREAKDOWN OF REVENUES BY ACTIVITIES IN 2003
BREAKDOWN OF VISITORS BY TRANSPORTATION
THEME PARKS ATTENDANCE(in millions of guests, includes Disneyland Park and,
from March 16, 2002, Walt Disney Studios Park)
THEME PARKS AVERAGE SPENDING PER GUEST(in € excluding VAT)
HOTEL OCCUPANCY(in %)
AVERAGE SPENDING PER ROOM(in € excluding VAT)
2001 2002 2003
12.2
13.1
12.4
2001 2002 2003
38.9
40.1
40.7
2001 2002 2003
86.0
88.2
85.1
2001 2002 2003
168.6
175.1
183.5
K E Y F I G U R E S 1 6 / 1 7
2003 Financial Overview55.2 % CAR
14.2 % PLANE
13.3 % COACH
12.8 % TRAIN
4.5 % RAILWAY
48% THEME PARKS
40% HOTELS AND DISNEY® VILLAGE
10% OTHERS
2% REAL ESTATE
GEOGRAPHICAL BREAKDOWN OF PARKS VISITORS IN 2003
39% FRANCE
22% UNITED KINGDOM
6% GERMANY
7% BELGIUM / LUXEMBURG
9% NETHERLANDS
9% ITALY / SPAIN
8% OTHERS
S T O C K I N F O R M A T I O N A N D S H A R E H O L D E R S ’ C L U B 1 8 / 1 9
MARKET CAPITALISATION
Fiscal Year 2003 2002 2001
Number of shares (in millions) 1,056 1,056 1,056
Market Capitalisation 634 433 876at September 30
Share Price- High (in €) 0.71 1.19 1.09- Low (in €) 0.35 0.41 0.54
Price as of end Fiscal year 2003 September 2003 average daily volume
Share
Paris € 0.60 1,680,005
London £ 0.36 4,224
Brussels € 0.60 29,423
Warrant
Paris € 0.01* 94,408*
STOCK EXCHANGE ACTIVITY
SHAREHOLDING STRUCTURE
IDENTIFICATION SHEET OF EURO DISNEY S.C.A. SHARE
Nominal 0.76 euro per share
Number of shares 1,055,937,724 as of 09/30/03
Markets Paris (SRD), London, Brussels
Main codes Reuters EDL.PA
Bloomberg EDL FP
ISIN FR0000125874
IDENTIFICATION SHEET OF EURO DISNEY S.C.A. WARRANT
Number of warrants 290 million issued in July 11,1994
Parity 3 warrants = 1.069 new shares as of 09/30/03
Exercise period From December 31, 1995 to July 11, 2004
Market Paris
Main codes Reuters RF51472.PA
Bloomberg EURD 7/11/04
ISIN FR514721 *via its wholly-owned subsidiary, EDL Holding Company**via 5-KR-135 Ltd, a company whose shares are held by trustsfor the benefit of Prince Alwaleed and his family
*Warrant price and average daily volume as of June 2002 -Due to lack of trading, warrant quotation has been effectivelysuspended.
Since 1995, the Euro Disney S.C.A. Shareholders’ Club has offered a host of special services reserved for members, who benefit from significant reductions on admissions passports forDisneyland® Park and Walt Disney Studios® Park. There are also discounts at all hotels and a priority booking service (+33 1 60 30 60 72) for the Disney hotels. Shareholders benefit fromspecial rates on green fees at Disneyland® Resort Paris Golf and on tickets to the Buffalo BillWild West Show.
Since 2001, Euro Disney S.C.A. offers even more services for Shareholders’ Club Members. As VIPs, they are entitled to start theirday at the Parks at the Salon Mickey, where a complimentary Continental Breakfast awaits them in a charming Victorian setting.A Cast Member is on hand to welcome members and help them to take full advantage of their day in the Parks. Reduced ratescontinue at shops and table-service restaurants in the Parks – many of which now appear in the exclusive French Bottin Gourmand.
Club Members can ring a special telephone line (+ 33 1 64 74 56 30) that provides information on all aspects of Euro DisneyS.C.A. and the Shareholders’ Club. A bi-annual newsletter provides more in-depth information on the Company, as well asthe latest Disneyland Resort Paris and Shareholders’ Club news. In 2002, Shareholders’ Club Members received their first EuroDisney S.C.A. Individual Shareholder Guide that gives information on Euro Disney shares and their rights as shareholders.
Club Members can also find the most recent Company news and the share price evolution on the internet sitewww.eurodisney.com. The site also features an on-line boutique reserved exclusively for the Shareholders’ Club Members,offering a regularly updated selection of Disneyland Resort Paris products at discounted prices.
Finally, Shareholders’ Club Members can participate in special events, including Hortitours horticultural tours and GuidedTours that reveal all the secrets of both the Disneyland and the Walt Disney Studios Parks.
When he joined the Company in July 2003, André Lacroix was aware of the importance of Shareholders and decided to further extend the advantages that are offered to Club Members. Starting on February 1, 2004, a free hot line will be implemented (00 800 64 74 56 30*), and as of March 31, 2004, Club Members will be entitled to buy a one year car park passport at a reduced rate. Furthermore, the restaurants which provide discounts to Shareholders’ Club cardholders nowinclude restaurants with table service and the Buffet at Disney Village.
If you are an existing shareholder of the Company, come and join the 4,500 current members of the Shareholders’ Club eitherby calling +33 1 64 74 56 30 (or 00 800 64 74 56 30 as of February 1, 2004) or by connecting at “www.eurodisney.com.” Club Membership is simply magic!
Stock InformationEuro Disney S.C.A. shares have been traded on the London, Paris and Brussels stock exchanges since November 6, 1989. As part of the financial restructuring of June 8, 1994, Euro Disney S.C.A. offered shareholders 170 million warrants, one warrant per share. The Company also issued bonds with share warrants attached (OBSA), the subscription for which was reserved for the lenders. The 290 million warrants were freely negotiable and quoted separately from the shares on the Parisstock exchange, offering holders the right to subscribe, at a cost of € 6.1 for 1.069 new shares for three warrants held. Thesewarrants have a term of 10 years and may be exercised until July 11, 2004.
In December 1999, the Company issued approximately 288 million new shares through an equity rights offering. This offeringgenerated net proceeds of € 219.5 million, which was used primarily to finance a part of the design and construction costs ofthe Walt Disney Studios® Park.
“A range of privileges for
Shareholders’ Club Members.”
For further information about having your Euro Disney S.C.A. stocks registered, please contact : • FRANCE : Banque Crédit Agricole Indosuez, Crédit AgricoleInvestor Services Corporate Trust, Service aux Emetteurs, 75288 Paris Cedex 06, 33 (0) 1 41 89 43 24 • BELGIUM : KBC Bank avenue du Port 2,1080 Bruxelles• UNITED KINGDOM : Computershare Services, PO Box 82, The Pavilions, Bridgewater Road, Bristol, B S99 7NH.
* Available for calls from France, the United Kingdom, Germany, Belgium, the Netherlands, Italy and Spain.
39.1% THE WALT DISNEY COMPANY*
44.6% MINORITY SHAREHOLDERS
16.3% PRINCE ALWALEED**
SBF 120
EURO DISNEY
EVOLUTION OF THE SHARE PRICE(base 100 as of October 2002)
AVERAGE DAILY TRADING VOLUME (in millions)
160
140
120
100
80
60
40
20
0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP2002 2002 2002 2003 2003 2003 2003 2003 2003 2003 2003 2003
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP2002 2002 2002 2003 2003 2003 2003 2003 2003 2003 2003 2003
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Highlights of 2003
2003 was an important year at Disneyland® ResortParis. We developed a comprehensive eventscalendar covering important seasonal festivitiesand celebrations, each one featuring a differentstyle of entertainment.
The opening of new restaurants and hotels alsoprovided guests with an incentive to visit the Resortmore frequently and to extend their stay. Once again,Disneyland® Resort Paris has proved to be a trulyunique Resort destination!
Walt Disney Studios® Park
Disneyland® Park
Disney® Village
New Hotels
Disneyland® Park
The Jungle Book 2 Carnival
From February 1 to March 9, 2003, Disneyland® Park presented a brand new Carnival Season, timed to coincide with the releaseof the film The Jungle Book 2. The season offered three different themes, delighting Guests with the music and colour of thecarnivals that take place in the dream destinations of New Orleans, Africa and South America. Together with the Disney characters and the heroes of The Jungle Book, Guests in Disneyland Park danced and sang to Afro, Latino and Dixie rhythms. Towards the end of the season, on March 1, Disneyland Park celebrated carnivals from around the world by organising a special evening, during which four of the five themed “Lands” of the Park and selected attractions were open.
Disney’s Fantillusion: Magic in the Twilight
From July 2003, Disneyland Park Guests have been able to enjoy the unforgettable experience of Disney’s Fantillusion. This new, unique nightime show brings Disney characters, tales and legends to life using the most advanced sound and visual effects.Appearing as a shimmering shower of light as it crosses Disneyland Park, Disney’sFantillusion makes exceptional use of fibre optics, stroboscopic effects, light emittingdiodes, “black” light and colour programming. This fantastic moment was created usingthe artistic and technological expertise developed during the production of numerousnight shows for Disney Theme Parks worldwide.
Manchester United Soccer Schools kicks off at Disneyland® Resort Paris
Euro Disney S.C.A. is teaming up with Manchester United SoccerSchools to create the first permanent Soccer School at Disneyland®
Resort Paris. Manchester United Soccer Schools, scheduled to openin Summer 2004, will give soccer-mad youngsters the chance tomake a dream come true!
Designed for boys and girls aged seven to fourteen, the aim of the Soccer Schoolis to improve understanding of the game, teach them to play the “Manchester UnitedWay”, and inspire them to play better and more frequently - all of this in a uniquelocation where sport, education and magic go hand in hand!
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Walt Disney Studios® Park
Celebrating the Year of the Sheep
For the first time, Walt Disney Studios® Park paid tribute to the Chinese New Year. On twouniquely themed evenings, January 30 and 31, 2003, the Park re-opened at night to celebratethe arrival of the Year of the Sheep. Guests enjoyed various ancient Chinese customs, likecalligraphy, origami and engraving on rice. There were also demonstrations of Chinesemartial arts, and, in make-up workshops, children’s faces were painted in pure Chinese operastyle. Guests could choose for a typical Chinese meal, and this unique festival celebrating theadvent of the New Year ended with an exciting parade featuring dragons, and a spectacularfireworks display.
CinéMagique, Best Attraction of 2003
CinéMagique, at the new Walt Disney Studios Park at Disneyland® Resort Paris, is an outstanding and unique example of storytelling at its best. Combining live
performance with film and special effects, CinéMagique features a movie-goer whois drawn right into the on-screen action; he stumbles through one classic cinemamoment after another, including slapstick comedy, gangster, western, musical,adventure, horror, science fiction and romance.In Los Angeles, California in October, at the 10th Annual Thea Awards Gala,recognising achievement, talent and personal excellence in the Themed
Entertainment Industry, CinéMagique received the award for best attractionin 2003.
Selected Hotels
Offering a total capacity of 1,080 rooms, these three hotels, ranging in category from 2 to 4-star, enable guests to have easyaccess to the Theme Parks and to discover the charm of Ile-de-France architecture.
MyTravel’s Explorers Hotel: Prepare for Adventure!
Home to Sir Archibald de Bacle, the "legendary explorer", this 3-star hotel is a visual and fun-filled treat, packed with treasures and surprises from around the world. Five separate themed restaurants serve the guests of this hotel, which has 380 rooms.
Kyriad Hotel: Relax in Traditional Style…
Built in the traditional architectural style of the local Brie region, this comfortable2-star hotel has a panoramic view over the surrounding woodlands and is just a fewsteps from a picturesque lake. With its 300 rooms, the Kyriad Hotel at Disneyland®
Resort Paris is to become the flagship hotel of the renowned Kyriad chain, offe-ring guests a unique taste of tradition.
Holiday Inn: Join the Circus!
The guests of this 4-star Holiday Inn, built in the style of great French countrymanor houses, can meet both clowns and jugglers during their stay. With nearly 400rooms, including 23 Kid Suites, this hotel welcomes guests with its cheerful décorand friendly atmosphere, while offering the service for which Holiday Inn Hotelsare renowned.
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Adjacent to the Disney® Theme Parks are Disney® Village and Disney’s seven resort hotels(Disneyland® Hotel, Disney’s Hotel New York®, Disney’s Newport Bay Club®, Disney’sSequoia Lodge®, Disney’s Hotel Cheyenne®, Disney’s Hotel Santa Fe® and Disney’s DavyCrockett Ranch®). These hotels give guests the chance to continue their Disney experience by staying overnight in the heart of the magic. Spring 2003 marked theinauguration of three new Disneyland Resort Paris “Selected Hotels”, located in thenew Val de France hotel district of Disneyland Resort Paris.
Disney® Village
King Ludwig’s Castle
In June 2003, King Ludwig’s Castle, a new restaurant serving authentic Bavarianspecialties in fairy-tale surroundings, opened in the heart of Disney® Village.The decoration and atmosphere of the restaurant are inspired by NeuschwansteinCastle, built and designed by King Ludwig II of Bavaria in the 19th century, whichalso inspired Walt Disney when he created Sleeping Beauty Castle for Disneylandin the 1950s. The two-level restaurant offers a seating capacity of 296, an outdoor terrace and a new shop. King Ludwig’s Castle is operated by
Groupe Flo, under franchise from Prince Luitpold of Bavaria, a direct descendant of King Ludwig II.
Disney® Village and Themed Hotels: Live the Magic 24 Hours a Day
InnovationMagic Every Day Marketing
2004 Action Plan
In 2003, the new management team developed and introduced a new action plandesigned to revitalise the Disneyland® Resort Paris brand, both internally andexternally.The primary objective of a new marketing strategy, which refocuses the Company’s positioning on its core, is to win over “First Timers” (those Europeans who have nevervisited Disneyland® Resort Paris) and to develop a “Disneyland® Resort Paris reflex”in the hearts and minds of all potential guests.There are three components in the implementation of this action plan: leverageof the competitive advantage of the unique Disney Magic; innovation in productoffering, and a new European marketing campaign, called “Need Mag?c”.
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Magic Every Day
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lain
Ern
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Cast Members "Need Mag?c" campaign launching night
Walt Disney, the man behind the magic, wanted to create a world of make-believe where children and grown-ups could discover something rare and wonderful together. Disneyland® Resort Paris is that magical kingdom, where dreams come true.
The stories told at Disneyland Resort Paris offer the full range of emotions, from thrills and adventure, to tenderness, fascination and discovery. Every detail is lovingly created and protected by the “Imagineers”, our pioneering designers and technicians, who have over 50 years experience in 3-D story telling.
More than a thousand performers provide fourteen hours of sparkling shows and parades every day. Their spectacular costumes, of every shape and colour, are designed, created and maintained by a teamof nearly three hundred highly skilled Cast Members. Each costume is unique and every parade amasterpiece, winding its way daily through the Parks in joyful procession.
Guests can also find quiet spots in peaceful and beautiful surroundings. Our horticulture department has 120 gardeners, who work while children sleep to makeDisneyland® Resort Paris one of the biggest and most beautiful gardens of Europe.
When it comes to mealtime, the choice is infinite. Disneyland ResortParis offers more than 70 places to eat, with food ranging from a quickbite on the go to a lavish spread, a veritable fairytale feast. Our highlyskilled chefs work behind the scenes to produce a wide variety of dishes, and inpeak periods can provide as many as 150,000 meals per day.
Guests and Cast Members, of all ages and from all backgrounds, come to DisneylandResort Paris from both near and far. But, in our magical world, language is secondary: justa look is enough to understand and be understood. When a child arrives at the entrance ofthe Walt Disney Studios® Park, he knows he’s a star and the guest of honour in one of thelargest film sets in Europe. The welcome is just as warm at Disneyland® Park , where oldfriends are waiting to say ‘Hello’: Mickey and Minnie, Goofy, Pluto, Chip and Dale,Peter Pan and Tinker Bell, Donald Duck, Pinocchio and Geppetto…
Walt Disney said, “You can dream, create, design and build the most wonderful placein the world, but it requires people to make the dream become a reality.” The people waiting to make your dream a reality are our 12,200 Cast Members.
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Summer Camp
During the 2003 Summer Camp programme, all Cast Members were giventhe chance to contribute to the future strategy of the Company by participating in round table discussions, posting ideas on our Intranet andin idea boxes. More than 4,000 proposals were submitted.
Bringing Magic to Children in Need
Community relations and volunteer work, especially among seriously ill and underprivilegedchildren, are two of the most important legacies left by Walt Disney. This legacy is a longstanding tradition at Euro Disney S.C.A., which began these sponsorship programmes priorto the opening of Disneyland® Park in 1992. The commitment of the Company to childrenin need is demonstrated by three major initiatives: hospital visits by Disney characters,fulfilling the dreams of seriously ill children through the Children’s Wishes programme,and the charitable activities carried out as part of the volunteers’ programme.
In 2002, Disney characters made hospital visits to 2,400 children, not only in Paris andother regions in France, but in one hundred European hospitals. The Children’s Wishesprogramme allowed nearly 700 seriously ill children to spend time at Disneyland ResortParis with their families (since the opening of Disneyland Park, this programme has enabled 60,000 children to visit the Resort). Through 60 activities organised by EuroDisney S.C.A., more than 800 volunteer Cast Members offered their time, talents and heartsto assist children in need. As in previous years, Euro Disney S.C.A. supported a large number of charity associations, including the Secours Catholique and the French RedCross, through its collection and donation programmes.
The Cast with the Magic Touch
Euro Disney S.C.A. employs more than
12,200 Euro Disney S.C.A. Cast Members, including10,850 permanent staff (average figures for Fiscal Year 2003)
103 nationalities
19 languages spoken
60 % of the Cast Members have worked for the Companyfor three years or more, and the average age of permanentCast Members is 33.
Disneyland® Resort Paris offers Cast Members the opportunityto perform a wide range of jobs as entertainers, attraction operators, hotel staff, cooks, acrobats, gardeners, landscapers,firemen, cleaning crews, show technicians, sales staff, and specialists in marketing, finance, legal and information technology. All together, more than 500 professions are represented at Disneyland Resort Paris.
Our Cast Members come from all horizons and it is this blendof world cultures that makes almost anything possible atDisneyland Resort Paris. Cast Members have been highly involved in the re-launch of the Disneyland Resort Paris brandand have contributed to the development of several initiatives.
They are enthusiastic about the Disney experience and areready to deliver the Disney Magic.
As an example, Cast Members were invited to participatein the recording of a song to support UNICEF, and in the“Need Mag?c” group photo. It was as if 12,200 CastMembers opened their arms in invitation to all our potentialEuropean consumers.
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At Disneyland® Resort Paris, our products, prices and services are constantly being updated and enhanced so that our Guests can discover even more magic.
The Hopper TicketNew features have been added to our pricing policy in order tokeep up with changing consumer expectations. It was known thatguests who spent several days at the resort moved freely between both Parks; this possibility was not, however, available toguests who only visited for one day. Now, with the Hopper Ticket,
visitors are free to go from one Park to the other and to choose their dream itinerary.Guests can freely visit two Theme Parks in the same day for € 49 (adult ticket) and € 39 (childticket).
Annual PassportsThe Annual Passport is a true magic wand that opens the doors tothe Disneyland® Park and that of the Walt Disney Studios® Park,all year long(1). With its new communication campaign
« Need Mag?c », Disneyland Resort Paris offers a whole new range of Annual Passports. Smart Buy, the Annual Proximity(2) Passport, reserved exclusively for the residents of the Ile-de-France region and the Aisne, Marne and Oise departments, is offered for the price of€ 89 per adult or child(3) alike. It gives access to the 2 Disney Parks 325 days a year.The Annual Fantasy Passport, offered for the price of € 119 per adult or child(3) alike,allows guests to access the 2 Disney Parks all year long except for 20 days, common to theDisneyland® Park and the Walt Disney Studios® Park. Among other advantages, parking(4)
at the Disney Parks and Disney® Village(5) is included. The Annual Dream Passport, offered for the price of € 159 per adult or child(3) alike, is dedicated to all Disney fans. It offers unlimited access to the Disneyland Park and the WaltDisney Studios Park 365 days a year. It offers a wide range of privileges such as special events,special discounts and free services for the day.
Kids Go FreeFrom January 4 to April 1, 2004, children under 11 have freeentrance to both Parks. Each paid adult ticket enables a child to realise his or her dream of a fantastic stay, free-of-charge.
Innovation
Mad Hatler’s Tea cups in Fantasyland®
Animagique in Animation Courtyard®
Space Mountain in Discoveryland®
(1) Except on restriction days according to
the Annual Passport.
(2) Reserved to the resident of French
departments : 75,77, 78, 91, 92, 93, 94, 95,
02, 51 and 60.
(3) Children from 3 years old.
(4) Motor vehicle for the day only.
(5) Until August 31 2004.
In addition to visiting the Theme Parks, Guests were drawn into the spirit ofthe holiday season by the decorated Christmas trees, crackling fires and tra-ditional entertainment in the seven Disneyland® Resort Paris themed hotels.At Disney® Village, Guests could visit a Scandinavian Christmas Market andenjoy Christmas celebrations.As a special free Christmas gift to celebrate the start of the “Need Mag?c”campaign, Disneyland Resort Paris invited 15,000 guests for a magicalChristmas celebration on December 17, 2003.
2004, the year of The Lion KingA number of product innovations are planned in 2004 to celebrate one of the greatest Disney films, The Lion King. FromFebruary 7 to March 7, 2004, Disneyland® Park will feature The Lion King Carnival, a festival that celebrates life andfeatures Simba, the Lion King. At the foot of Sleeping Beauty Castle, a giant replica of Pride Rock will be constructed.Surrounding Pride Rock will be giraffes, hippopotami, elephants and other African animals. Birds will fly overhead like kiteson a windy day. Pride Rock will be centre stage for a dedication ceremony reminiscent of the classic scene from the film:The Circle of Life Celebration. More animals will join the gathering before Rafiki arrives to commence the ceremony. Throughout the day, Pride Rock will play host to live bands entertaining Guests with African rhythms! Every night, Simba’s“FiROARworks” will light the sky over Sleeping Beauty Castle with the colors of the season to celebrate the ancestors ofThe Lion King. A sound and light show with symphonic music, a cappella singing and storytelling will be included in theCarnival finale. Then on June 26, 2004, Disneyland Park will launch an extraordinary new show, The Legend of The LionKing; yet another magical moment where the legend of a great African kingdom will come to life through magic rhythmsand an explosion of special effects!
A New-look Halloween FestivalThe Halloween season took on a whole new look at Disneyland® ResortParis this year. During the month of October 2003, Disneyland® Parkoffered a wide range of Halloween entertainment geared to the wholefamily. Main Street, U.S.A. was turned into “Spooky Street”, inhabited bystrange pumpkin men and covered with blotches of orange paint. ThePrincess Parade was taken over by Disney Villains, who made the most oftheir chance to parade through the Park. Special face-painting workshopswere set up inside a giant pumpkin at the foot of Sleeping Beauty Castle,where children up to 12 years of age could come and be made up ‘indisguise’. Halloween Land – normally Frontierland - was covered with
pumpkins and frequented by scarecrows, witches and other scary characters. Guests were also invited to board theMummy Cruise Line, a paddle streamer that transported them to another world. Two special fancy dress evenings wereheld to celebrate Halloween, on October 25 and 31.
A Magical Christmas SeasonChristmas is always a high point and, this year, the Company put even more magic into Christmas with a programme inclu-ding a new parade and new events. Towering over Town Square at the entrance of Disneyland Park, a 25-metre tall Christmastree was lit with 7,000 fairy lights and decorated with over a kilometre of garlands. Mickey’s Winter Wonderland offered aheart-warming musical celebrating the spirit and pleasures of winter. Walt Disney Studios® Park was especially decorated forthe season, and presented a host of favourite Disney stars in Christmas costume. “Streetmosphere” performers invited Gueststo star with them in their latest Christmas-themed film.
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A Brand New Campaign to Reach Every European
The third component of our 2004 Action Plan consists of a powerful marketing campaign that targets both new and formercustomers. The marketing strategy of Disneyland® Resort Paris tries to touch every European. It adds a sprinkle of pixie dustin their daily lives, and inspires them to dream a Disney adventure.
It starts by asking a simple question, “Need Mag?c”. It is a question that meets everyone need! Fresh, direct and humorous,“Need Mag?c” is flexible enough to touch the hearts of nations across Europe.
The “Need Mag?c” concept comes from a desire to interact in a new way with potential guests who might be considering avisit to the resort; encouraging them to perceive the brand differently and explain that Disneyland® Resort Paris has the magicwe all aspire to. In the context of an increasingly complex and stressing daily life, where problems and obstacles pop up alltoo often, the first tourist destination in Europe invites everyone to slip away to a particularly wide array of emotions thatrespond to all the different needs of magic.
The advertising campaign creates a dialogue with the public, an interactive relation by entering the daily life with humour.The three television ads, adopt a new tone for Disneyland Resort Paris, based on the freshness and modernity of the message.Each of these ads presents an offer, whether it is the « Kids Free » season or the new Hopper ticket.
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Marketing
“Need Mag?c” TV campaign
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“Need Mag?c” TV campaign “Need Mag?c” TV campaign
A Forceful Media PlanThis marketing strategy, in keeping in the spirit of Disney magic, is sensitive to cultural differences across Europe.
The campaign has a forceful media plan, especially on television, in all of Disney’s six main European markets: France, UnitedKingdom, Netherlands, Belgium, Germany and Spain.
The press-advertising component of the campaign establishes an unexpected new look for Disneyland® Resort Paris. It shows shared moments of happiness and real emotions. The Disney experience is shown from a new angle, but continues to tell never-ending Disney stories.
An entirely new style web site has been especially developed for the launch under needmagic.com. The site immerses guests intothe “Need Mag?c” concept, giving them a wide variety of ways to share and experience the magic online. The heart of the siteoffers a once in a lifetime opportunity for the guests to star in their very own Disney movie scene and experience the life of a moviestar: Disney’s Magicall.
SustainableDevelopment
Care for the EnvironmentHuman Resources Third Development Phase
In the following pages, the Company’s human resources and environmental policiesare explained, and examples are given of new initiatives in the area of sustainable development. A complete summary of actions taken by Euro Disney S.C.A. in this areais provided in the Management Report on Euro Disney S.C.A. for fiscal year 2003 prepared for the Company’s Annual General Meeting.
S U S T A I N A B L E D E V E L O P M E N T 4 0 / 4 1
SustainableDevelopment
Human Resources
H U M A N R E S O U R C E S 4 2 / 4 3
45% WOMEN
55% MEN
757 (7%)FIXED-TERMCONTRACTS
120 (1%)TEMPORARYCONTRACTS
10,476 (92%)PERMANENTCONTRACTS
EQUITY IN THE WORKPLACE (PERMANENT CONTRACTS BREAKDOWN)
EMPLOYEE BREAKDOWN BY CATEGORYOF CONTRACTS (AS OF SEPTEMBER 30, 2003)
As the largest employer in the Ile-de-France region, Euro Disney S.C.A. hasdirectly or indirectly generated more than 43,000 jobs. At end-September 2003,the Company employed more than 11,300 employees. During the year, on average, the Company employed 12,200 persons. 80% of the employees workingon the site live in the area.
For employees working under permanent working contracts, working hourswere split as follows: • Full-time (35 hours): 93.1%• Contracts for less than 16 hours: 4.6%• Contracts for 16 - 28 hours: 1.8%• Contracts for more than 28 hours and less than 35: 0.5%
Since 1997, Disneyland® Resort Paris has implemented a global and integratedhuman resources strategy, articulated in a Charter for Quality - Health, Safety,and Working Conditions - Environment.
Euro Disney S.C.A. has a long-standing commitment to employee training. In 2003, a new Management Programme was introduced at Disney University, providing newly-hired management with a global vision of the strategy and the organisation. The Hôte d’Accueil Touristique programme, initially designed to enableemployees to acquire different professional competency certificates recognised bythe French Ministry of Employment, was extended to a second step of leisure jobspath, called Hôte d’Accueil Touristique Spécialisé, developing Cast Members inall the operational activities of the Company. In the language laboratory open tothe entire staff, an e-learning programme was set up to facilitate the acquisitionof language skills.
Eighteen meetings of the Workers’ Council and 189 meetings of the StaffRepresentatives were held during fiscal year 2003. Major agreements signedduring the year included collective agreements on night work and Company-levelagreements concerning the refunding of medical expenses.
The Company maintains a work and training programme for its disabledemployees, who numbered more than 250 this year.
Scene of the ten-year celebration Parade Data extracted from a complete report provided in the Management Report on Euro Disney S.C.A. for fiscal year 2003.
Euro Disney S.C.A.’s care for the environment is illustrated by the diversityand abundance of vegetal species in the Resort, as well as by the Company’shigh standards of cleanliness.
Since the initial development of Disneyland® Park, a concerted effort has been made to bring more vegetation to the site. Telephone and electricity cables are laidunderground. The Resort’s horticulture department promotes the uses of only environmentally-friendly products, and in particular those which protect pollen-producing plants. Use of chemical products at the Resort is also carefully controlled by a special committee, which promotes the utilisation ofenvironmentally-friendly products.
A utilities energy management programme was started at Disneyland® ResortParis in 1997, with the objective of controlling and reducing the consumption of water, electricity and natural gas. Over a six-year period, considerable progress has been achieved.
The quality of water at the Resort is tested and controlled regularly. Using itsown internal laboratory, Euro Disney S.C.A. processed more than 8,000 watertests in 2003, with the objective of monitoring and improving water quality inswimming pools, ornamental lakes and waste water.
Specific measures have been taken to limit air and noise pollution. Heat requirements for the functioning of the two parks and for the Disney hotelsare generated or met by natural gas boilers. A soundproof wall was erectedaround the fireworks launching area in 1996.
The Company has always encouraged the use of public transport (buses, subway, trains) and of vehicles that operate on less-polluting fuel. Bike pathswere created for the use by Cast Members backstage and the Company’s carpooling programme started in 1996.
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Constant Care for the Environment
WATER AND ENERGY CONSUMPTION 2001 2002* 2003
WATER (KM3/YEAR) 2,027 2,181 2,066
ELECTRICITY (MWH/YEAR) 168,235 192,958 190,397
GAS (MWH/YEAR) 88,000 109,467 106,375
*the increase in energy consumption in 2002 is related to the opening of Walt Disney Studios® Park.
Data extracted from a complete report provided in the Management Report on Euro Disney S.C.A. for fiscal year 2003.
Jogging around the Lake Promenade
Disney Lake
Disneyland® 27-hole golf facility
Guests in front of a bungalow of the Disney’s Davy Crockett Ranch®
T H I R D D E V E L O P M E N T P H A S E 4 6 / 4 7
A New Step in SustainableDevelopment In July 2003, Euro Disney S.C.A. and Epamarne / Epafrance signed the detailed development programme for the third phaseof Val d’Europe. The third phase will perpetuate the quest for excellence, controlled planning, quality and continuity which hasuntil now successfully ensured a total synergy between tourist and urban poles. Three major axes are covered in the third phase.The first axis is based on the continuation of the impetus given to urban development, and specifically to projects that will increase Val d’Europe’s capacity to welcome new individual and corporate residents, both in the town centre and inthe Val d’Europe communities. The second axis focuses on the continuation of tourist development, and particularly on theexpansion of Disney® Village, as well as the reinforcement of the business tourism sector. The third axis consists of overallinnovation in our tourism infrastructure, and a part of this initiative is the “Val d’Europe Nature Villages” study as well as additional transportation infrastructure projects.
Third Development Phase of Val d’Europe
The third Val d’Europe development phase is expected to create 8,500direct jobs and generate from 810 million to 1.2 billion euros of private investment, as well as 100 million euros of public infrastructures investment.
The consistent support from public authorities and their representatives, as well as a fruitful collaboration with private sector partners has enabled Marne-la-Vallée to reaffirm its goal of being the developmentengine for the eastern Paris region. Thanks to this unique public/privatepartnership, and with over 20,000 jobs and 20,000 residents in the town,Val d’Europe is today one of eastern Paris’ major economic hubs.
Urban DevelopmentThanks to the third development phase of Val d’Europe, 1,700 new homesfrom apartments to single family units, both for sale and rent, will be created for residents before 2010, complemented by parks and livelypublic areas with restaurants and businesses. In particular, a new neighbourhood, the Quartier du Lac, will be developed and will include350 new homes, offices and tourist residences as well as the Hôtel de
Ville of Serris. Further development of the currently-existing Quartier duGolf, the Quartier de Val de France and the Quartier du Parc are alsoplanned.
The third development phase should increase Val d’Europe’s capacity interms of corporate real estate, thanks to the creation of 100,000 squaremetres of offices in the town centre and in the Arlington Business Park Paris-Val d’Europe, along the A4 motorway. These innovations will enable Val d’Europe to welcome a number of new corporate residents andthereby create jobs and ensure economic diversification.
The programme includes plans for the extension of the Marne-la-ValléeUniversity, the opening of a new high school, a media library and thenew Marne-la-Vallée Hospital (585 beds).
Disneyland® Park
Walt Disney Studios® Park
Disney’s Hotels
International MALL
Disneyland® Resort Paris Golf Course
Arlington Business Park Paris Vald’Europe
Davy Crockett Ranch®
Val de France
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Place d’Ariane
Third Development Phase Map
Marne-la-Vallée University
Marriott Vacation Club International Opens itsFirst Vacation Ownership Resort
In June 2003, Marriott Vacation Club International announced the opening ofits first vacation ownership resort in France, “Marriott’s Village-d’Ile-de-Franceat Disneyland® Resort Paris”. Situated on Disneyland Resort Paris championshipGolf course, the new resort offers convenient access to the adjacent Disney Parksand Disney® Village. Creating the atmosphere of a quaint French country village,the resort will be built in six distinct phases of town homes, each inspired by the rural residences of a different French impressionist painter.
The property’s first 44 town homes are modelled after Monet’s celebrated country home and gardens in Giverny. The resortrepresents a new extension of the accommodation offerings of Disneyland Resort Paris, designed in particular to meet the needs of those guests who desire to stay for one week or more. Upon completion, Marriott’s Village d’Ile-de-France at Disneyland Resort Paris will contain 190 two-bedroom / two-bath town homes, each providing sufficient living area tocomfortably accommodate six guests.
Also in Spring 2003, the Pierre & Vacances Group opened the Résidence Paris-Val d’Europe in the town centre, a complexof 290 apartments that are available for rental by guests.
Nature VillagesFinally, the third development phase of Val d’Europe would bring innovation intourism via the development, in a joint venture with Pierre & Vacances, of “naturevillages”, or resorts focusing on relaxation, the environment, sport and leisure.The nature village concept, currently under feasibility study, would be developed on a 560-hectare site south of the A4 motorway, and would constitute a tourist offering complementary of that to Disneyland Resort Paris. Thedifferent fully equipped villages would celebrate relaxation and conviviality, withWater, the Earth, Sport and Forest as founding themes. Specific attention wouldbe paid to the active protection and enhancement of the nature village sites.Development would be limited to approximately 10% of the total surface area,and the remaining 90% of greenery would be preserved.
Tourist DevelopmentThe third development phase of Val d’Europe provides for the expansion of Disney® Village, which was initially built inorder to enable Disneyland® Resort Paris guests and Cast Members to mix and meet with residents of the Seine-et-Marnearea. Thanks to the expansion programme, a number of new restaurants and shops will be opened, as well as an IMAX 3Dtheatre with a larger-than-life screen within the successful Gaumont cinema multiplex. A new Vinci car park, with space for1,400 vehicles, is also being built and is expected to open in December 2004.
Business tourism will be further enhanced by the development of a 30,000 square metre Exposition Centre (under study).The development programme provides for the opening of two new hotels and a vacation ownership resort, which shouldextend the capacity of Val d’Europe to receive guests and tourists by 2,000 additional rooms.
New Radisson SAS Hotel at Disneyland® Resort ParisIn September 2003, Euro Disney S.C.A., Rezidor SAS Hospitality and Orionsigned a joint agreement concerning the construction of a new Radisson SASHotel at Disneyland Resort Paris. The hotel will be strategically located on thecelebrated 27-hole Golf Disneyland®, adjacent to the Disney Theme Parks andconvention centres. The 4-star, 250-room hotel, which will be a “DisneylandResort Paris Associated Hotel”, is expected to open in summer 2005
New Mövenpick “Dream Castle” Hotel in Val de FranceMövenpick Hotels & Resorts announced that it will open a 4-star themed hotelin Val de France, the new hotel district of Disneyland Resort Paris, in June 2004.Inspired by middle-ages castles and their mysteries, The Mövenpick “DreamCastle” Hotel will offer 400 rooms, two restaurants and an outdoor terrace restaurant with high-quality Mövenpick cuisine. The hotel will target a predominantly German-speaking clientele and will bring the total accommodationcapacity of Disneyland Resort Paris to close to 8,000 hotel rooms and tourismresidences, with 1,500 hotel rooms in the hotel district of Val de France.
T H I R D D E V E L O P M E N T P H A S E 4 8 / 4 9
Third Development Phase of Val d’Europe
T H A N K S 4 4 / 4 5
Thanks to all our Partners
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