Disney Business Overview Brazil Fiscal Year 2009 2 nd Quarter Rodrigo Saturnino February, 2009 Business Overview Brazil FY092 Agenda Market Overview FY08 Financial Overview and Released Titles Results Upcoming Releases - Local Estimate and Marketing Plan Competitive Release Schedule Business Overview Brazil FY093 Social and Economic situation in Brazil for 2009 A complex panorama is expected specially on several economic factors 1Source IBGE Brazilian Institute of Geography and Statistics. 2Source Gazeta Mercantil 3Source FGV Getulio Vargas Foundation 4Source Suma Economica 5Source O Globo 6Ministery of Education Social Literacy 1 : Improvement in the last decade on literacy rate: 1997 85.3% 2007 90.0% Wealth distribution 1 : Improvement in the last decade on wealth distribution. Families living with less than minimum salary: 1997 31.6% 2007 23.5%. Bolsa Famlia (roughly translated Family Grant) is currently the largest conditional cash transfer program in the world. As a result of better wealth distribution and this anti- poverty scheme a new medium class is emerging and mass consumption has been increasing for poor people specially in Northeastern of the country. Education: Vacancies for free courses in federal universities have increased in last years: 2003 113 k 2009 227 k. 6 Economics Inflation: 4 6.1% in 2008 IPCA. 5.5% estimated for 2009 IPCA. Unemployment: 2008 average - 7.9% 2009 projected 8.5% 2 Consumer Trust Index on the economy is 10.1% below last year. 3 Projected economic growth for 2009: by 4% 4 Income and Consumption Distribution: Brazil GINI Index: 1991 0.64 , 5 This number is 0.12 above of the worldwide average. The effect of the global economic may affect the results in FY09. Business Overview Brazil FY094 Source: SEDCMRJ Admissions increased very little in 2008 specially due to the lower performance of Brazilian Films CY (in 000s) Business Overview Brazil FY095 Digital Screens per Exhibitor 30 Digital 3D Screens At least 5 more screens to open before Monster vs Aliens. Business Overview Brazil FY096 Digital Scenario Exhibitor do not think about Digital screens; only 3D DIGITAL SCREENS. General opinion is that 3D is the difference that can bring more audience to theatres. That kind of thinking will probably delay the development of a Digital change in Brazil. 95% of the Digital screens today also have 35mm equipment still installed. 3 screens from Cinemakrk are only Digital (with 3D) but exhibitor is counting on the strong 3D content in There is no request, so far, for digital non-3D releases. Business Overview Brazil FY097 Digital Screens / 3D Glasses Cinemark is 100% Real D. Exhibitors working with Dolby and X-Pand started charging extra fee for the 3D glasses but they did agree to give BOLT our full share of the ticket price (ticket+glasses). Business Overview Brazil FY098 LIVE ACTION: 120 movies released in last 6 years with very good LATAM performance Business Overview Brazil FY099 ANIMATION: 46 animations released in the last 6 years Business Overview Brazil FY0910 Agenda Market Overview FY08 Financial Overview and Released Titles Results Upcoming Releases - Local Estimate and Marketing Plan Competitive Release Schedule Business Overview Brazil FY0911 Fiscal Year 2009 Fcst vs. Budget Net Contribution Before OH Revenue MUSD 1 17% 1Dollars at FY09 Budget exchange rate 1,93 Reais NoteFiscal year term: October-September 16% 26% -27% Additional revenue because of Saw 5 (not on Budget), High School Musical and Local titles. Less Net Cont because of bad performances of Bolt, non FY09 titles and increase of FX rate impacting on Basics costs (One million US$ higher). Business Overview Brazil FY0912 Budget Enchanted Game Plan Herbie Fully Loaded NoteCurrency figures in KUSD;Note 2Dollars at FY09 Budget rate 1.93 Reais Actuals High School Musical 3 Business Overview Brazil FY0913 High School Musical 3 Surpassed all expectations. Excellent word to mouth and great performance of sing along copies kept the film active by Christmas. Business Overview Brazil FY0914 Budget Wall - E Chicken Little Meet the Robinsons NoteCurrency figures in KUSD;Note 2Dollars at FY09 Budget rate 1.93 Reais BOLT Forecast BOLT * 183 prints and 25 digital copies Business Overview Brazil FY0915 Budget NoteCurrency figures in KUSD;Note 2Dollars at FY09 Budget rate 1.93 Reais BEDTIME STORIES Enchanted Game Plan Fcst The Pacifier BEDTIME STORIES Business Overview Brazil FY0916 Agenda Market Overview FY08 Financial Overview and Released Titles Results Upcoming Releases - Local Estimate / Budgets Competitive Release Schedule Business Overview Brazil FY0917 Budget Underdog Game Plan NoteCurrency figures in KUSD;Note 2Dollars at FY09 Budget rate 1.93 Reais Beverly Hills Chihuahua IMD Beverly Hills Chihuahua * Increase in BBK Basics & Recharges estimates plus FX rates Business Overview Brazil FY0918 Budget * NoteCurrency figures in KUSD;Note 2Dollars at FY09 Budget rate 1.93 Reais G-Force Enchanted Alvin and the Chipmunks G-Force * Adjusted in Print costs Business Overview Brazil FY0919 Budget * Wall - E Ratatouille Cars Incredibles NoteCurrency figures in KUSD;Note 2Dollars at FY09 Budget rate 1.93 Reais UP * Adjusted in Print costs Business Overview Brazil FY0920 Budget * NoteCurrency figures in KUSD;Note 2Dollars at FY09 Budget rate 1.93 Reais Doubt There Will Be Blood Doubt * Adjusted in Print costs Business Overview Brazil FY0921 IMD NoteCurrency figures in KUSD;Note 2Dollars at FY09 Budget rate 1.93 Reais Hannah Montana Movie Best of Both Worlds Hannah Montana Movie Business Overview Brazil FY0922 NoteCurrency figures in KUSD;Note 2Dollars at FY09 Budget rate 1.93 Reais Earth March of Penguins Earth Release date : 22/4/09 Adm: 200,000 GBO: 933,000 Copies: 40 Release date : 13-Jan-2006 Adm: GBO: 1,081,000 Copies: 51 Business Overview Brazil FY0923 Full Year Forecast vs. Budget Fiscal Year 2009, MUSD at Budget rate 1,93 - Backup - Business Overview Brazil FY0924 Local Production Upcoming Releases Business Overview Brazil FY0925 Directed by Srgio Machado Based on a Jorge Amado novell Produced by Walter Salles Production starts shooting in March 2009 in Bahia. TDB 2010 Business Overview Brazil FY0926 Produced by Total Entertainment Currently in pre-production Starts shooting in Rio de Janeiro during the 1st semester of 2009 Tentative Date October 2009 Business Overview Brazil FY0927 Directed by Joo Daniel Tikhomiroff Shooting is now finished. First Cut in March/09. Release Date: Oct/30/2009 BESOURO is a legend from Capoeira the Brazilian version of martial arts. Fight coreography by Mr. Ku ( Kill Bill and Crouching Tiger Hidden Dragon ) Business Overview Brazil FY0928 Directed by Guel Arraes Based on a Dias Gomes novell Produced by Natasha Filmes Shooting now in Macei. Tentative Release Date: 01 Jan 2010 Business Overview Brazil FY0929 Directed by Michel Tikhomiroff Devolopment Stage TBD 2010 Business Overview Brazil FY0930 Documentary about the amazing journey of Brazilian friends that became worldwide legends of the skateboard. First cut to be delivered in March Tentative Release Date: End of 09 or Beginning of 10.