Transaction Effects

EffectsEuro Disney S.A. The SCA Conseil de

SurveillanceThe associe commandite

ED S.N.C.,

Risk Benefit Risk Benefit Risk Benefit Risk Benefit Risk Benefit

The reduction of WDC’s equity from 100%-49%The repayment to Disney of (French francs) FRF2.8billion in project costIncrease in leverage; FRF12.3 billion in debts and lease obligationsOne of the largest IPO of common stock of a company that had no revenues or earningsThe creation of a bewildering ownership and governance structure for the projectThe generation of a cascade of French Government subsidies, investments, and tax breaks

Master Agreement

Risk Benefit

Project Owner 1. Specified project schedule for Phase IA2. To guarantee a minimum amount of

suburban rail system traffic3. To guarantee a minimum level of tax revenue

4. Cheap land purchase, FRF 140,000 per hectare5. Access to public transportation: 2 railroad stations, car park and

a bus station, TGV train6. Secondary roads: FRF200 million from government7. Low interest rate load, FRF4.8 billion, 7.85%8. Low VAT, 5.5%9. Short depreciation period, 10 years10.

French Government

1. Opportunity cost of the land usage if the project failed2. Risk of Initial investment on public transportations if project

failed