Euro Disney Presentation

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By: zhungxi (12 month(s) ago)

i really appreciate it... can you send it to my email address?

Presentation Transcript

Welcome: 

Welcome Jim Hunt, Executive Vice President and CFO, Walt Disney Parks and Resorts Andy Wu, VP of Finance and Business Planning

Slide3: 

Spain or France Analyzing the Facts

Key Assumptions: 

Key Assumptions Hotel occupancy rate: 100% Average Income

Capital Budgeting: 

Capital Budgeting WACC = 9% Cost of debt = 10% Cost of equity = 16.5%

Capital Budgeting: 

Capital Budgeting NPV Initial Investment = $470 million IRR = 48% Beta = 1.5

Business Risk: 

Business Risk NOPAT ROIC Standard Deviation

Business Risk: 

Business Risk Demand Variability

Business Risk: 

Business Risk Sales Price Variability Input Cost Variability Spanish Government

Slide13: 

Ability to adjust output in response to input New Products Cultural Differences Foreign Risk Exposure

SWOT Analysis: 

SWOT Analysis Strengths Weather Government Aid Price of Land

SWOT Analysis: 

SWOT Analysis Weaknesses Revenues Currency

SWOT Analysis: 

SWOT Analysis Threats Terrorism Opportunities Government Stability Economy Olympics

Slide17: 

Support Government Community Competing Attractions Higher ROIC Recommendations

Slide18: 

Questions and/or Comments

Slide19: 

France

Key Factors: 

Key Factors Initial Investment Magic Kingdom vs. MGM Number Of Visitors

Number of Visitors: 

Number of Visitors What If: 100% 75% 50%

Number of Visitors: 

Ticket Sales In Park Sales Hotel Operations Number of Visitors

Capital Budgeting : 

Capital Budgeting WACC: 7.75% Cost of Debt: 9% Cost of Equity: 14.8% Beta Risk: 1.7

Capital Budgeting: 

Capital Budgeting NPV Walt Disney France: $2.2 billion Spain: $1.4 billion Euro Disney

Slide28: 

IRR – Walt Disney France 51% Spain 48% Capital Budgeting

Business Risk: 

Business Risk NOPAT ROIC Standard Deviation

Business Risk: 

Business Risk Foreign Risk Exposure Demand Variability Develop New Products

Slide32: 

Strengths Tourist attraction Name Recognition Familiarity France Analysis

Slide35: 

Weaknesses Different culture Design duplication France Analysis

France Analysis: 

France Analysis Threats Uncertainty Opposition

France Analysis: 

France Analysis Opportunities New market Diversity

Recommendations: 

Recommendations Quantitative NPV IRR Qualitative SWOT Analysis

Slide39: 

Questions and/or Comments

Slide42: 

Conclusion What’s more important? NPV and IRR NOPAT and ROIC Further consideration