D E F G H C EXHIBIT: DISNEY CORP. BY SEGMENT J K L M 4 S FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 2014-2018 CAGR 6 Revenues Media Networks 24,500 23,510 23,689 23,264 21,152 3.7% FY 2022E Revenues 28,423 R 9 . Cable Networks 17,063 16,527 16,632 16,581 15,110 3.1% 19,279 Broadcasting 7,437 6,983 7,057 6,683 6,042 5.3% 9,143 Parks and Resorts 20,296 18,415 16,974 16,162 15,099 7.7% 27,307 Studio Entertainment 9,987 8,379 9,441 7,366 7,278 8.2% 13,688 2 Consumer Products 4,651 4,833 5,528 5,673 5,284 -3.1% 4,101 Total 59,434 55,137 55,632 52,465 48,813 5.5% 73,518 EBIT 2014-2018 CAGR EBIT Media Networks 6,494 6,558 7,158 7,793 7,321 -3.0% 5,408 Cable Networks 5,126 5,353 5,965 6,787 6,467 -5.6% 3,324 Broadcasting 1,368 1,205 1,193 1,006 854 12.5% 2,084 Parks and Resorts 4,469 3,774 3,298 3,031 2,663 13.8% 7,214 Studio Entertainment 2,980 2,355 2,703 1,973 1,549 17.8% 5,234 Consumer Products 1,632 1,744 1,965 1,884 1,472 2.6% 1,734 Reconciliation (738) (558) (766) (1,457) (1,636) -18.0% (333) Total 14,837 13,873 14,358 13,224 11,369 6.9% 19,258 EBIT Percentage Mbr Expansion Rate EBIT Percent Media Networks 43.8% 47.3% 49.9% 58.9% 64.4% -5.2% 28.1% Cable Networks 34.5% 38.6% 41.5% 51.3% 56.9% -5.6% 17.3% Broadcasting 9.2% 8.7% 8.3% 7.6% 7.5% 0.4% 10.8% Parks and Resorts 30.1% 27.2% 23.0% 22.9% 23.4% 1.7% 37.5% Studio Entertainment 20.1% 17.0% 18.8% 14.9% 13.6% 16% 27.2% Consumer Products 11.0% 12.6% 13.7% 14.2% 12.9% -0.5% 9.0% Reconciliation -5.0% -4.0% -5.3% -110% -14.4% 2.4% -1.7% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% EBIT Margin Expansion Rate EBIT Margin Media Networks 26.5% 27.9% 30.2% 33.5% 34.6% -2.0% Cable Networks 30.0% 32.4% 35.9% 40.9% 42.8% -3.2% 17.2% Broadcasting 18.4% 17.3% 16.9% 15.1% 14.1% 1.1% 22.8% Parks and Resorts 22.0% 20.5% 19.4% 18.8% 17.6% 1.1% 26.4% Studio Entertainment 29.8% 28.1% 28.6% 26.8% 21.3% 21% 38.2% Consumer Products 35.1% 36.1% 35.5% 33.2% 27.9% 18% 42.3% Reconciliation Total na 25.0% na 25.2% na 25.8% na 25.2% na na na 23.3% 0.4% 26.2% Large corporations like Disney that allocate their EBIT across business segments nearly always have a reconciliation figure. The Reconciliation account includes corporate expenses that are not directly attributable to a single business unit. Examples include executive management (e.g., CEO), centralized functions like Treasury, Investor Relations and Public Relations. Which segment enjoyed the greatest Revenues growth (4 year CAGR)]? Media Networks Which segment enjoyed the slowest Revenues growth or greatest decline (4 year CAGR)? Consumer Products Which segment enjoyed the greatest margin expansion? Consumer Products Which segment enjoyed the highest margins in 2018? Consumer Products You need to make a forecast for 2022. Let's assume that trends from 2014 to 2018 continue. Revenues will grow in the four years from 2018 to 2022 at the CAGR they grew at form 2014 to 2018. EBIT margins will grow in the four years from 2018 to 2022 at the same average annual rate as they did from 2014 to 2018. First fill in the forecasted values for 2022 Parks and Resorts (the theme parks) have grown from 23% of EBIT in 2014 to 30% in 2018. If this trend continues, what percent of EBIT will Parks and Resorts be in 2022. Do you think this growth is sustainable +