#1The WALT DISNEY Company Q4'23 EARNINGS PRESENTATION NOVEMBER 8, 2023 ©Disney In#2Forward-Looking Statements Certain statements and information in this presentation may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding earnings expectations and expected drivers; future cost reductions and source; plans or expectations for direct-to-consumer profitability, advertising and revenue growth, subscriber levels, pricing, product acceptance, expansion, enhancements, changes to subscription offerings, churn, engagement and margins; business plans or opportunities, including nature, timing and distribution channel for our products and services; financial or performance estimates or expectations (including operating income, operating results, programming and production costs and cash content spend, capital expenditures, profitability and any guidance); future performance and growth; plans, expectations, strategies, strategic priorities and opportunities and drivers of growth and profitability; estimates of the financial impact of certain items, accounting treatment, events or circumstances; future free cash flows and funding sources; value of our intellectual property content offerings, businesses and assets, including franchises and brands; and other statements that are not historical in nature. Any information that is not historical in nature included in this presentation is subject to change. These statements are made on the basis of management's views and assumptions regarding future events and business performance as of the time the statements are made. Management does not undertake any obligation to update these statements. Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the Company, including restructuring or strategic initiatives (including capital investments, asset acquisitions or dispositions, new or expanded business lines or cessation of certain operations), our execution of our business plans (including the content we create and IP we invest in, our pricing decisions, our cost structure and our management and other personnel decisions), our ability to quickly execute on cost rationalization while preserving revenue, the discovery of additional information or other business decisions, as well as from developments beyond the Company's control, including: ● . ● ● ● ● ● ● ● ● ● Such developments may further affect entertainment, travel and leisure businesses generally and may, among other things, affect (or further affect, as applicable): our operations, business plans or profitability, including direct-to-consumer profitability; demand for our products and services; ● . . the occurrence of subsequent events; further deterioration in domestic and global economic conditions or a failure of conditions to improve as anticipated; deterioration in or pressures from competitive conditions, including competition to create or acquire content, competition for talent and competition for advertising revenue; consumer preferences and acceptance of our content, offerings, pricing model and price increases, and corresponding subscriber additions and churn, and the market for advertising sales on our DTC services and linear networks; health concerns and their impact on our businesses and productions; international, political or military developments; regulatory and legal developments; technological developments; ● labor markets and activities, including work stoppages; adverse weather conditions or natural disasters; and availability of content. the performance of the Company's content; our ability to create or obtain desirable content at or under the value we assign the content; the advertising market for programming; income tax expense; and performance of some or all Company businesses either directly or through their impact on those who distribute our products. Additional factors are set forth in the Company's Annual Report on Form 10-K for the year ended October 1, 2022, including under the captions "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Business," quarterly reports on Form 10-Q, including under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and subsequent filings with the Securities and Exchange Commission. The terms "Company," "Disney," "we," and "our" are used above and in this presentation to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted. ⒸDisney Fourth Fiscal Quarter Ended September 30, 2023#3Streaming Profitability Key Building Opportunities We have made considerable progress on these opportunities and will continue to move forward with a sense of purpose and urgency. • Focused on achieving significant and sustained profitability Continuing to improve our DTC offerings with high quality content, new advertising tools and a more unified experience for subscribers ⒸDisney Capturing opportunities in pricing, marketing, programming, and advertising ||||| Future of ESPN • Confident in the value of sports and the power of ESPN, the world's leading sports brand • Building ESPN into the preeminent digital sports platform, allowing us to reach fans in compelling new ways and fully integrating key features into our primary ESPN offering Studio Creativity • Committed to telling great stories, leaning into our core brands and franchises ● Reducing overall output to enable us to concentrate on fewer projects and improve quality Continuing our effort around the creation of fresh and compelling original IP Parks and Experiences Growth Strategically investing in our Experiences business to turbocharge growth Confident in the potential of these investments given our wealth of IP, innovative technology, buildable land, unmatched creativity, and historically strong returns on invested capital Fourth Fiscal Quarter Ended September 30, 2023 2#4● On Track to Achieve $7.5 Billion of Cost Savings by the end of Fiscal 2024 By the end of fiscal 2024, we expect to reduce annualized SG&A and other operating costs as well as our entertainment cash content spend (excluding sports) by approximately $7.5 billion, nearly $2 billion ahead of our original $5.5 billion target. • We have increased our annualized efficiency target for total company SG&A and other operating expenses to $3 billion (vs. $2.5 billion previously). • Our annualized entertainment cash content spend reduction target is now $4.5 billion (vs. $3 billion previously). Due to the timing of amortization, it will take a few years for the bulk of these savings to be reflected in the P&L. Savings on Cash Content Spend (excluding sports) SG&A and Other Operating Cost Savings Note: Cost savings are not adjusted for inflation, exclude any strike-related impacts and do not reflect the cost incurred to achieve such cost savings ⒸDisney $5.5 ~$3.0 ~$2.5 Initial Target $7.5 ~$4.5 ~$3.0 On Track to Achieve % Increase vs. Initial Target Total Annualized Cost Savings (In Billions) +36% +50% +20% Fourth Fiscal Quarter Ended September 30, 2023 3#5Spend on Produced and Licensed Content Fiscal 2023 spend on produced and licensed content, including sports rights, was $27 billion, nearly $3 billion below the prior year as we significantly reduced our spend on entertainment content. ● Fiscal 2024 enterprise-wide content spend is expected to decrease by $2 billion vs. fiscal 2023, to approximately $25 billion, as a result of our continued work to be more efficient in our content spend, in addition to impacts from the strikes and the timing of sports payments. $29.9 ⒸDisney $17.6 FY19 $20.2 FY20 $25.3 Investing in Our Businesses (Full Year Values in Billions) FY21 FY22 $27.2 FY23 ~$25 FY24 Projection Capital Expenditures • Fiscal 2023 capital expenditures totaled $5 billion, roughly comparable to the prior year. Fiscal 2024 capital expenditures are projected to total $6 billion, an increase of approximately $1 billion vs. fiscal 2023, driven by higher spend at Experiences. • Capital expenditures at Experiences in fiscal 2024 will look more comparable to fiscal year 2019 and includes spend at our Cruise business ahead of the launch of three new ships in fiscal 2025 and 2026. All Other Experiences $4.9 $4.1 FY19 $4.0 $3.6 $2.3 FY21 $2.9 FY20 $4.9 $5.0 $3.4 $3.0 FY22 FY23 ~$6 FY24 Projection Fourth Fiscal Quarter Ended September 30, 2023#6$10.9 Expect Continued Improvement in Cash Generation (Full Year Values in Billions) $13.1 $12.3 We expect a significant year over year increase in free cash flow(1) in fiscal 2024, approaching levels we last achieved pre-pandemic. $14.3 $6.0 $7.6 $5.6 $6.0 $9.9 FY19 (2) FY20 FY15 FY16 FY17 FY18 Cash Provided by Continuing Operations FY21 FY22 FY23 $6.6 $8.4 $8.7 FY15 FY16 FY17 $9.8 $1.1 $3.6 FY18 FY19 (2) FY20 Free Cash Flow(¹) $2.0 $1.1 $4.9 FY21 FY22 FY23 (1) Free cash flow is a non-GAAP financial measure. The most comparable GAAP measure is cash provided by continuing operations. See the discussion on pages 20 and 25 for how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. (2) Fiscal 2019 included the payment of approximately $7.6 billion of tax obligations that arose from the spin-off of Fox Corporation in connection with the TFCF acquisition. ⒸDisney Fourth Fiscal Quarter Ended September 30, 2023 5#7ⒸDisney BUSINESS RESULTS Fourth Fiscal Quarter Ended September 30, 2023#8$20.2 Q4'22 $21.2 Q4'23 Revenues $0.4 Q4'22 Q4 Results for Fiscal 2023 (In Billions, Except Per Share Amounts) $1.0 Q4'23 Income from Continuing Operations Before Income Taxes $1.6 Q4'22 $3.0 Q4'23 Total Segment Operating Income (¹) $0.09 Q4'22 $0.14 Q4'23 Diluted EPS from continuing operations $0.30 Q4'22 $0.82 Q4'23 Diluted EPS excluding certain items(¹) (1) Diluted EPS excluding certain items and total segment operating income are non-GAAP financial measures. The most comparable GAAP measures are diluted EPS from continuing operations and income from continuing operations before income taxes, respectively. See the discussion on pages 20-23 for how we define and calculate these measures and a reconciliation thereof to the most directly comparable GAAP measures. ⒸDisney Fourth Fiscal Quarter Ended September 30, 2023 7#9$82.7 FY22 $88.9 FY23 Revenues $5.3 FY22 Full Year Results for Fiscal 2023 (In Billions, Except Per Share Amounts) $4.8 FY23 Income from Continuing Operations Before Income Taxes $12.1 FY22 $12.9 FY23 Total Segment Operating Income (¹) $1.75 FY22 $1.29 FY23 Diluted EPS from continuing operations $3.53 FY22 $3.76 FY23 Diluted EPS excluding certain items(¹) (1) Diluted EPS excluding certain items and total segment operating income are non-GAAP financial measures. The most comparable GAAP measures are diluted EPS from continuing operations and income from continuing operations before income taxes, respectively. See the discussion on pages 20-23 for how we define and calculate these measures and a reconciliation thereof to the most directly comparable GAAP measures. ⒸDisney Fourth Fiscal Quarter Ended September 30, 2023#10Recent Business Highlights Elemental has earned nearly $500 million at the global box office (¹) and had a strong start on Disney+, with 26.4 million views in its first five days of streaming ESPN platforms are on pace for their most-watched college football season since 2019 among P18-49 viewers, and this season has featured 2 of the ESPN's top 10 regular season college football games of all time(³) ABC's World News Tonight ranked as America's #1 evening newscast for the seventh straight year(4) Opened The Villas at Disneyland Hotel, a new Disney Vacation Club Resort, on September 28 Began our international rollout of Disney+ with Ads, launching in Canada and Europe (2) on November 1 ESPN had its most-watched NBA opening night in 11 years and its second-most watched opening night ever (1) As of November 8, 2023 (2) Disney+ with Ads is now available in the following European countries: United Kingdom, France, Germany, Switzerland, Italy, Spain, Norway, Sweden and Denmark (3) Live CFB games through Week 10 on E1/E2/EU/ABC, P18-49 viewers; all time ranks are based on P2+ viewers for E1 (4) Per Nielsen, Total Viewers, based on Live+7 ⒸDisney Disney Cruise Line's inaugural sailing in Australia and New Zealand began on October 25 aboard the Disney Wonder Fourth Fiscal Quarter Ended September 30, 2023#11Linear Networks Direct-to-Consumer CSLO Linear Networks Direct-to-Consumer CSLO ⒸDisney $2.9 $4.5 $0.8 Q4'22 Revenues $1.9 ($1.4) Q4'22 Q4 Entertainment Results (In Billions) ($0.0) $2.6 $5.0 Operating Income (Loss) $0.8 Q4'23 $1.9 ($0.4) ($0.1) Q4'23 Linear Networks Operating income was flat to the prior year, reflecting lower advertising and affiliate revenues, which were generally offset by a decrease in marketing and programming and production costs. • Advertising revenue declines were driven by our domestic business, primarily at ABC and our owned TV stations. Direct-to-Consumer Revenues increased by 12% and operating loss improved by nearly $1 billion vs. the prior year driven by: Higher subscription revenue from increases in retail pricing and subscriber growth at both Disney+ Core and Hulu Lower marketing, technology and distribution costs • Partially offset by an increase in programming and production costs ● ● Content Sales / Licensing and Other (CSLO) Operating loss increased by ~$140 million vs. the prior year due to lower theatrical results, partially offset by higher home entertainment results. Fourth Fiscal Quarter Ended September 30, 2023 10#12Q4 Disney+ Core Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USD) DISNEY+ Domestic(¹) Subscribers Disney+ Domestic (¹) Disney+ International (2) 46.4 Q4'22 56.5 Q4'22 46.0 DISNEY+ International (²) Subscribers $6.10 $5.83 Q3'23 59.7 Q3'23 $7.31 $6.01 46.5 Note: See DTC Product Descriptions and Key Definitions on page 19 (1) U.S. and Canada (2) Excluding Disney+ Hotstar ©Disney Q4'23 66.1 Q4'23 $7.50 $6.10 Q4'23 vs. Q4'22 Q3'23 +0.1 +0.5 +9.6 +$1.40 +$0.27 +6.4 +$0.19 +$0.09 Disney+ Domestic(¹) Subscribers increased by 0.5 million vs. the prior quarter. ● ● ARPU increased by $0.19 vs. the prior quarter due to higher advertising revenue. Disney+ International (²) Subscribers grew by 6.4 million vs. the prior quarter. ARPU increased by $0.09 vs. the prior quarter due to an increase in average retail pricing, partially offset by a higher mix of subscribers to promotional offerings. ● Fourth Fiscal Quarter Ended September 30, 2023 11#13ESPN Domestic ESPN International Star ESPN Domestic ESPN International Star $3.4 ⒸODisney $0.4 $0.9 Q4'22 Revenues ($0.0) Q4'22 $0.1 $3.5 $0.0 $0.4 Operating Income (Loss) (¹) $1.0 Q4'23 Q4 Sports Results (In Billions) ($0.0) Q4'23 $0.1 $0.0 ESPN Domestic • Results increased primarily due to lower programming and production costs, growth in subscription revenue at ESPN+ due to both pricing and subscriber growth, and lower marketing costs, partially offset by lower affiliate revenue. ● (1) Sports operating income also includes Equity in the Income of Investees of $15 million in Q4'22 and $16 million in Q4'23 ● The decrease in programming and production costs reflect the absence of the Big 10. • Lower affiliate revenue was due to fewer subscribers and the Charter blackout, partially offset by higher contractual rates. Advertising revenue increased by 1% vs. the prior year, despite the absence of the Big 10, the Charter blackout and a highly competitive marketplace. Fourth Fiscal Quarter Ended September 30, 2023 12#14Q4'22 ($1.5) Q1'23 ($1.1) Combined DTC Streaming Businesses Quarterly Operating Losses (1) (In Billions) Q2'23 ($0.7) Q3'23 ($0.5) Q4'23 ($0.4) Q4 combined DTC streaming businesses operating losses have improved by $1.1 billion vs. the prior year driven by revenue growth and cost reductions. Sequentially, operating losses for the combined DTC streaming businesses improved by $125 million (1) DTC streaming businesses operating loss is not a financial measure defined by GAAP. The most comparable GAAP measures are segment operating income for the Entertainment segment and Sports segment. See the discussion on pages 20 and 24 for how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measures. ⒸDisney Fourth Fiscal Quarter Ended September 30, 2023 13#15Domestic Parks & Experiences Int'l Parks & Experiences Consumer Products Domestic Parks & Experiences Int'l Parks & Experiences Consumer Products ⒸDisney $5.0 $0.7 $1.1 $1.2 Q4'22 Revenues $0.1 Q4'22 $5.4 $0.5 Q4 Experiences Results (In Billions) Operating Income $0.8 $1.7 Q4'23 $0.4 Q4'23 $1.1 $0.5 Domestic Parks & Experiences Operating income increased vs. the prior year as Disney Cruise Line, Disney Vacation Club and Disneyland Resort delivered strong year over year growth. ● • Walt Disney World operating results decreased driven by accelerated depreciation from the closure of Star Wars: Galactic Starcruiser, along with inflationary impacts and the continued comparison to the 50th anniversary celebration in the prior year. International Parks & Experiences Our international operations continued their strong performance trend in the quarter, with significant growth across all sites vs. the prior year. An increase in operating results at Shanghai Disney Resort was due to higher guest spending and volumes. • Higher operating income at Hong Kong Disneyland Resort was due to increased guest spending and higher volumes, partially offset by higher costs from new guest offerings and inflation. Fourth Fiscal Quarter Ended September 30, 2023 14#16ⒸDisney APPENDIX Fourth Fiscal Quarter Ended September 30, 2023 15#17Disney+(¹) Basic (With Ads) Premium (No Ads) Hulu (SVOD Only)(¹) Basic (With Ads) Premium (No Ads) ESPN+(¹) With Ads UFC PPV (per event) UFC PPV + Annual Recent DTC Services Pricing Changes (U.S. price changes as announced on August 9, 2023) Monthly Bundle Offerings New Duo Premium (No Ads): Disney+, Hulu(²) Duo Basic (With Ads): Disney+, Hulu Trio Basic (With Ads): Disney+, Hulu, ESPN+(¹) Premium: Disney+ (No Ads), Hulu (No Ads), ESPN+ (With Ads)(¹) Legacy (3): Disney+ (No Ads), Hulu (With Ads), ESPN+ (With Ads) Hulu + Live TV(1) Basic (With Ads): Disney+, Hulu, ESPN+ Premium: Disney+ (No Ads), Hulu (No Ads), ESPN+ (With Ads) Legacy(³): Disney+ (No Ads), Hulu (With Ads), ESPN+ (With Ads) (1) Effective as of October 12, 2023 (2) Available beginning September 6, 2023 (3) Available only to existing subscribers ⒸDisney New Price $7.99 $13.99 $7.99 $17.99 $10.99 $79.99 N/A $19.99 $9.99 $14.99 $24.99 $18.99 $76.99 $89.99 $81.99 Old Price $7.99 $10.99 $7.99 $14.99 $9.99 $79.99 N/A N/A $9.99 $12.99 $19.99 $14.99 $69.99 $82.99 $74.99 % Increase 27% 20% 10% 15% 25% 27% 10% 8% 9% New Price N/A $139.99 $79.99 N/A $109.99 N/A $134.98 Annual Old Price N/A $109.99 $79.99 N/A $99.99 N/A $124.98 % Increase 27% 10% 8% Fourth Fiscal Quarter Ended September 30, 2023 16#18Fiscal 2024 - Selected Sports Timing Comparisons (As of November 8, 2023; items are not exhaustive; subject to change) Q1 No Big 10 renewal in FY24 (held rights in Q1 of FY23) ⒸDisney Net shift of 1 College Football Playoff game, including 2 semi-final games, from Q1 of FY23 to Q2 of FY24 ICC Cricket World Cup in FY24 vs. ICC T20 in FY23 Q2 No BCCI renewal in FY24 (vs. matches in Q1 and Q2 of FY23) Q3 ICC T20 in FY24 (DTC only) vs. in Q1 of FY23 Q4 New SEC deal begins No Pac-12 rights (held rights in Q4 of FY23) Fourth Fiscal Quarter Ended September 30, 2023 17#19Upcoming Parks and Experiences Openings & Events (Reflects publicly announced planned openings and events as of November 8, 2023; list is not exhaustive; subject to change) Attraction / Event November 10, 2023 November 20, 2023 December 5, 2023 December 20, 2023 December 2023 January 25, 2024 January 30, 2024 June 6, 2024 June 2024 2024 2024 Date Late 2024 Adventureland Treehouse World of Frozen Luminous: The Symphony of Us Zootopia World Celebration at EPCOT The Disneyland Hotel Royal Transformation Pixar Place Hotel Fantasy Springs Disney Lookout Cay at Lighthouse Point Tiana's Bayou Adventure Disney Vacation Club Cabins at Fort Wilderness Resort Disney Vacation Club at Polynesian Resort Disney Treasure (Maiden Voyage) Disney Adventure Third Wish-class ship December 21, 2024 Fiscal Year 2025 Fiscal Year 2026 Note: Dates provided are based on calendar year unless otherwise specified ⒸDisney Location Disneyland Resort Hong Kong Disneyland Resort Walt Disney World Resort Shanghai Disney Resort Walt Disney World Resort Disneyland Paris Disneyland Resort Tokyo Disney Resort Disney Cruise Line Disneyland Resort & Walt Disney World Walt Disney World Resort Walt Disney World Resort Disney Cruise Line Disney Cruise Line Disney Cruise Line Fourth Fiscal Quarter Ended September 30, 2023 18#20DTC Product Descriptions and Key Definitions Product offerings In the U.S., Disney+, ESPN+ and Hulu SVOD Only are each offered as a standalone service or together as part of various multi-product offerings. Hulu Live TV + SVOD includes Disney+ and ESPN+. Disney+ is available in more than 150 countries and territories outside the U.S. and Canada. In India and certain other Southeast Asian countries, the service is branded Disney+ Hotstar. In certain Latin American countries, we offer Disney+ as well as Star+, a general entertainment SVOD service, which is available on a standalone basis or together with Disney+ (Combo+). Depending on the market, our services can be purchased on our websites or through third-party platforms/apps or are available via wholesale arrangements. Paid subscribers Paid subscribers reflect subscribers for which we recognized subscription revenue. Subscribers cease to be a paid subscriber as of their effective cancellation date or as a result of a failed payment method. Subscribers to multi-product offerings in the U.S. are counted as a paid subscriber for each service included in the multi-product offering and subscribers to Hulu Live TV + SVOD are counted as one paid subscriber for each of the Hulu Live TV + SVOD, Disney+ and ESPN+ services. In Latin America, if a subscriber has either the standalone Disney+ or Star+ service or subscribes to Combo+, the subscriber is counted as one Disney+ paid subscriber. Subscribers include those who receive a service through wholesale arrangements including those for which the service is distributed to each subscriber of an existing content distribution tier. When we aggregate the total number of paid subscribers across our DTC streaming services, we refer to them as paid subscriptions. International Disney+ (excluding Disney+ Hotstar) International Disney+ (excluding Disney+ Hotstar) includes the Disney+ service outside the U.S. and Canada and the Star+ service in Latin America. Average Monthly Revenue Per Paid Subscriber (ARPU) Hulu and ESPN+ average monthly revenue per paid subscriber is calculated based on the average of the monthly average paid subscribers for each month in the period. The monthly average paid subscribers is calculated as the sum of the beginning of the month and end of the month paid subscriber count, divided by two. Disney+ average monthly revenue per paid subscriber is calculated using a daily average of paid subscribers for the period. Revenue includes subscription fees, advertising (excluding revenue earned from selling advertising spots to other Company businesses) and premium and feature add-on revenue but excludes Premier Access and Pay-Per-View revenue. The average revenue per paid subscriber is net of discounts on offerings that carry more than one service. Revenue is allocated to each service based on the relative retail or wholesale price of each service on a standalone basis. Hulu Live TV + SVOD revenue is allocated to the SVOD services based on the wholesale price of the Hulu SVOD Only, Disney+ and ESPN+ multi-product offering. In general, wholesale arrangements have a lower average monthly revenue per paid subscriber than subscribers that we acquire directly or through third-party platforms. ⒸDisney Fourth Fiscal Quarter Ended September 30, 2023 19#21Non-GAAP Financial Measures This presentation includes total segment operating income, diluted EPS excluding certain items, DTC streaming businesses operating losses, and free cash flow, all of which are important financial measures for the Company, but are not financial measures defined by GAAP. These measures should be reviewed in conjunction with the most comparable GAAP financial measures and are not presented as alternative measures of income from continuing operations before income taxes, diluted EPS, Entertainment and Sports segment operating income (loss), or cash provided by continuing operations as determined in accordance with GAAP. Total segment operating income, diluted EPS excluding certain items, DTC streaming businesses operating income (loss), and free cash flow as we have calculated them may not be comparable to similarly titled measures reported by other companies. Total segment operating income The Company evaluates the performance of its operating segments based on segment operating income, and management uses total segment operating income as a measure of the performance of operating businesses separate from non-operating factors. The Company believes that information about total segment operating income assists investors by allowing them to evaluate changes in the operating results of the Company's portfolio of businesses separate from non-operational factors that affect net income, thus providing separate insight into both operations and other factors that affect reported results. Diluted EPS excluding certain items The Company uses diluted EPS excluding (1) certain items affecting comparability of results from period to period and (2) amortization of TFCF and Hulu intangible assets, including purchase accounting step- up adjustments for released content, to facilitate the evaluation of the performance of the Company's operations exclusive of these items, and these adjustments reflect how senior management is evaluating segment performance. The Company believes that providing diluted EPS exclusive of certain items impacting comparability is useful to investors, particularly where the impact of the excluded items is significant in relation to reported earnings and because the measure allows for comparability between periods of the operating ormance of the Company's business and allows investors to evaluate the impact of these items separately. The Company further believes that providing diluted EPS exclusive of amortization of TFCF and Hulu intangible assets associated with the acquisition in 2019 is useful to investors because the TFCF and Hulu acquisition was considerably larger than the Company's historic acquisitions with a significantly greater acquisition accounting impact. DTC Streaming Businesses The Company uses combined DTC streaming businesses operating income (loss) to evaluate the performance of its portfolio of combined streaming businesses and track progress against the Company's goal of reaching profitability in Q4 of fiscal 2024 at its combined streaming businesses. Free Cash Flow The Company uses free cash flow (cash provided by continuing operations less investments in parks, resorts and other property), among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than capital expenditures. Management believes that information about free cash flow provides investors with an important perspective on the cash available to service debt obligations, make strategic acquisitions and investments and pay dividends or repurchase shares. ⒸDisney Fourth Fiscal Quarter Ended September 30, 2023 20#22Reconciliation of Total Segment Operating Income for Q4 & FY23 The following table reconciles income from continuing operations before income taxes to total segment operating income (in millions): Income from continuing operations before income taxes Add (subtract): Content license early termination Corporate and unallocated shared expenses Restructuring and impairment charges and A+E gain Other (income) expense, net Interest expense, net Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs Total segment operating income ⒸDisney Quarter Ended Sept. 30, 2023 $1,007 293 965 282 (In Millions) 429 $2,976 Oct. 1, 2022 $376 334 (63) 371 579 $1,597 Change >100% nm 12% nm (100 %) 24% 26% 86% Year Ended Sept. 30, 2023 $4,769 1,147 3,836 (96) 1,209 1,998 $12,863 Oct. 1, 2022 $5,285 1,023 1,159 237 667 1,397 2,353 $12,121 Change (10 %) 100 % 1% >(100 %) nm 13% 15 % 6% Fourth Fiscal Quarter Ended September 30, 2023 21#23Reconciliation of Diluted EPS Excluding Certain Items for Q4 (In Millions except EPS) The following table reconciles reported diluted EPS from continuing operations to diluted EPS excluding certain items for the fourth quarter: Pre-Tax Income/ Loss Tax Benefit/ Expense After-Tax Income/Loss Change vs. prior year period Quarter Ended September 30, 2023 As reported Exclude: (4) Restructuring and impairment charges Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs (5) Excluding certain items Quarter Ended October 1, 2022 As reported Exclude: Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs (6) (5) Other income, net Excluding certain items $1,007 965 429 $2,401 $376 579 (63) $892 ($313) (57) (100) ($470) ($122) (136) 15 ($243) (2) $694 908 329 $1,931 $254 443 (48) $649 Diluted EPS (3) $0.14 0.50 0.18 $0.82 $0.09 0.24 (0.03) $0.30 56% >100% (1) Tax benefit/expense is determined using the tax rate applicable to the individual item. (2) Before noncontrolling interest share. (3) Net of noncontrolling interest share, where applicable. Total may not equal the sum of the column due to rounding. (4) Charges for the current quarter were related to impairments on goodwill ($721 million) and an equity investment ($141 million), content impairments ($137 million) due to the termination of an agreement with A+E and severance costs ($22 million), net of the A+E gain ($56 million) (5) For the current quarter, intangible asset amortization was $361 million, step-up amortization was $65 million and amortization of intangible assets related to TFCF equity investees was $3 million. For the prior-year quarter, intangible asset amortization was $415 million, step-up amortization was $161 million and amortization of intangible assets related to TFCF equity investees was $3 million. (6) In the prior-year quarter, other income, net was due to a DraftKings gain ($63 million). ⒸDisney Fourth Fiscal Quarter Ended September 30, 2023 22#24Reconciliation of Diluted EPS Excluding Certain Items for FY23 (In Millions except EPS) The following table reconciles reported diluted EPS from continuing operations to diluted EPS excluding certain items for the year: Pre-Tax Income/ Loss Tax Benefit/ (1) Expense After-Tax Income/Loss" (in millions except EPS) Year Ended September 30, 2023 As reported Exclude: Restructuring and impairment charges Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs (5) (6) Other income, net Excluding certain items Year Ended October 1, 2022 As reported Exclude: Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs (5) Contract license early termination (6) Other income, net Restructuring and impairment charges Excluding certain items (4) $4,769 3,836 1,998 (96) $10,507 $5,285 2,353 1,023 667 237 $9,565 ($1,379) (717) (465) 13 ($2,548) ($1,732) (549) (238) (156) (55) ($2,730) (2) $3,390 3,119 1,533 (83) $7,959 $3,553 1,804 785 511 182 $6,835 Diluted EPS (3) $1.29 1.69 0.82 (0.05) $3.76 $1.75 0.97 0.43 0.28 0.10 $3.53 Change vs. prior year (26%) 7% (1) Tax benefit/expense is determined using the tax rate applicable to the individual item. (2) Before noncontrolling interest share. (3) Net of noncontrolling interest share, where applicable. Total may not equal the sum of the column due to rounding. (4) Charges for the current year included content impairments ($2,577 million), severance ($357 million), impairments of goodwill ($721 million) and an investment ($141 million), and costs related to exiting our businesses in Russia ($69 million), net of the A+E gain ($56 million). Charges for the prior year were due to impairments of an intangible and other assets related to exiting our businesses in Russia. (5) For the current year, intangible asset amortization was $1,547 million, step-up amortization was $439 million and amortization of intangible assets related to TFCF equity investees was $12 million. For the prior year, intangible asset amortization was $1,707 million, step-up amortization was $634 million and amortization of intangible assets related to TFCF equity investees was $12 million. (6) For the current year, other income, net was due to a DraftKings loss ($169 million) and a gain on the sale of a business ($28 million), partially offset by a charge related to a legal ruling ($101 million). For the prior year, other expense, net was due to a DraftKings loss ($663 million). ⒸDisney Fourth Fiscal Quarter Ended September 30, 2023 23#25Reconciliation of DTC Streaming Businesses Operating Losses for Q4 & FY23 (In Millions) The following tables reconcile the Entertainment and Sports segment operating income (loss) to the DTC streaming businesses operating loss: Linear Networks DTC streaming businesses (Direct-to-Consumer and ESPN+ businesses) Content Sales/Licensing and Other Total Linear Networks DTC streaming businesses (Direct-to-Consumer and ESPN+ businesses) Content Sales/Licensing and Other Total ⒸDisney Entertainment $805 (420) (149) $236 Sept. 30, 2023 Sports (2,496) (179) $1,444 $948 33 $981 Entertainment Sports $4,119 September 30, 2023 $2,581 (116) $2,465 Quarter Ended DTC Streaming Services $(387) Year Ended DTC Streaming Services Entertainment $(2,612) $806 (1,406) (8) ($608) Entertainment $5,198 (3,424) 352 $2,126 October 1, 2022 Sports $929 (66) $863 October 1, 2022 Sports $3,299 (589) $2,710 DTC Streaming Services $(1,472) DTC Streaming Services $(4,013) Fourth Fiscal Quarter Ended September 30, 2023 24#26The following table reconciles the Company's consolidated cash provided by continuing operations to free cash flow: Reconciliation of Free Cash Flow (In Millions) Cash provided by operations - continuing operations Investments in parks, resorts and other property Free cash flow ⒸDisney Oct. 3, 2015 Oct. 1, 2016 Sept. 30, Sept. 29, 2017 2018 (4,265) (4,773) (3,623) Year Ended 10,909 13,136 12,343 14,295 5,984 Sept. 28, 2019 6,644 8,363 8,720 9,830 (4,465) (4,876) 1,108 Oct. 3, 2020 7,616 Oct. 2, 2021 5,566 Oct. 1, 2022 3,594 1,988 6,002 (4,022) (3,578) (4,943) Sept. 30, 2023 9,866 (4,969) 1,059 4,897 Fourth Fiscal Quarter Ended September 30, 2023 25