|
Across our company, you can expect similar innovations in entertainment.
The Studios will be releasing films like Pirates of the Caribbean,
The Alamo and The Haunted Mansion. Walt Disney Animation
is creating some of its best productions ever, from such theatrical
releases as Disney/Pixar’s Finding Nemo and Bears
to the inventive TV fare of Kim Possible and Teacher’s
Pet. ABC has a number of great new shows for the midseason and
fall of 2003. ESPN will be expanding on the kind of original entertainment
it launched with 2002’s highly successful A Season on the
Brink. Our parks will continue to be “plussed” by
wonderful new attractions, such as Twilight Zone Tower of Terror,
coming to Disney’s California Adventure in 2004 and, of course,
Mission: SPACE, plus the addition of an entirely new theme
park, Hong Kong Disneyland, for which we’re breaking ground
in January. Disney Consumer Products is creating a tremendous line
of inventive toys that would be great for anybody’s children
or grandchildren.
All of these plans, strategies, and trends combine to make me as
bullish about the company’s prospects as I’ve been since
arriving at Disney. I came to the company at a time when the market
did not fully appreciate the potential of this company. I believe
that we are once again at a point where there is a disconnect between
Disney’s underlying strength and potential and the market’s
perception of its strength and potential. Indeed, today Disney has
far greater reach and depth as a media and entertainment company
than at any time in its extraordinary existence.
To help make sure that The Walt Disney Company continues to serve
the best interests of its shareholders, we are instituting new rules
for board governance, which will reduce the number of board members
and enhance the independence of the board. This should further enhance
accountability and encourage the flow of fresh ideas at the highest
levels of our company. The steps we took along these lines in 2002
earned praise from a number of business analysts, including BusinessWeek.
We intend to maintain a leadership position in this all-important
area.
I am pleased to institute these board governance reforms because,
after all, I am a Disney shareholder too. By far, my largest personal
holdings are in Disney stock, and I added a considerable amount
to these holdings during the past year. I did so quite simply because
I believe in this company. And, as a fellow shareholder, my interests
are quite literally your interests in seeing Disney achieve sustainable
long-term growth reflected in a steady appreciation of the company’s
share price.
Toward this end, of great importance to us as shareholders is the
fact that Disney has a healthy and very transparent balance sheet.
As the integrity of our products has always earned the faith and
trust of consumers, so too should the integrity of our business
practices earn the faith and trust of investors. Combine this with
an increasingly lean and cost-conscious culture, a management team
that boasts both strength and depth, and brands that give us a clear,
sustainable competitive edge. The result is a company in a class
of its own that is poised to renew the kind of historical growth
that has also been in a class of its own.
Overseeing this great company is a team of executives that is second
to none in the entertainment industry. Most of these talented colleagues
are not known to you, so we are using this year’s annual report
as a way to highlight some of them. As you will see, along with
the discussions of each business unit are pictured the most senior
executives who drive the decisions of The Walt Disney Company. Even
when Walt Disney was in charge, this company was never about a single
person. Rather, it was about a team of individuals with complementary
talents. I’m afraid we can’t include the names and photos
of all 112,000 people who make up the full Disney team, so instead
we thought you’d appreciate getting to know a portion of the
managers who are responsible and accountable for the performance
of your company.
The team that guides this company is hopeful that the recent worldwide
down cycle is nearing its end and that soon our financial results
will no longer be adversely affected by conditions outside of our
control. As for the trends within our control, they are moving in
the right direction. With this in mind, let me say that it has been
a privilege once again to serve this extraordinary enterprise and
I look forward to writing you next year with a report that I strongly
expect will highlight the return to the steady and profitable growth
for which Disney has long been known.
Sincerely,
Michael D. Eisner
Chairman and CEO
December 16, 2002
|
