Euro Disney S.C.A. Reports 2011 First Half Results

By Euro Disney S.c.a., PRNE
Monday, May 9, 2011

EURO DISNEY S.C.A. Fiscal Year 2011

MARNE-LA- VALLEE, France, May 10, 2011 - Reports First Half Results Six Months Ended March 31, 2011

- Total Revenues increased 8% to EUR 559 million, due to higher
Resort volumes and average spending per room

- EBITDA increased EUR 18 million to EUR 25 million

- Net loss narrowed by EUR 15 million to EUR 99 million

- Repayment of EUR 46 million of debt during the First Half

Euro Disney S.C.A. (the "Company"), parent company of Euro Disney
Associes S.C.A. ("EDA"), operator of Disneyland(R) Paris, reported today the
results of its consolidated group (the "Group") for the first six months of
fiscal year 2011 which ended March 31, 2011 (the "First Half").

    Key Financial Highlights                 First Half
    (EUR in millions, unaudited)            2011       2010
    Revenues                               559.1      519.3
    Costs and expenses                    (620.2)    (593.6)
    Operating margin                       (61.1)     (74.3)
    Plus: Depreciation and amortization     86.3       81.8
    EBITDA 1                                25.2        7.5
    EBITDA as a percentage of revenues       4.5%       1.4%
    Net loss                               (99.5)    (114.5)
    Attributable to equity holders of
    the parent                             (82.9)     (95.2)
    Attributable to minority interests     (16.6)     (19.3)
    Cash flow generated by operating
    activities                               6.4       28.1
    Cash flow used in investing
    activities                             (37.6)     (39.9)
    Free cash flow used 1                  (31.2)     (11.8)
    Cash and cash equivalents, end of
    period                                 323.7      283.5

    Key Operating Statistics [1]

    Theme parks attendance (in millions)     6.9        6.5
    Average spending per guest (in EUR)    43.32      43.51
    Hotel occupancy rate                    83.4%      79.6%
    Average spending per room (in EUR)    200.64     189.67

Commenting on the results, Philippe Gas, Chief Executive
Officer of Euro Disney S.A.S, said:

"As we head into our important second semester, we are
encouraged to end the first semester with our fourth consecutive quarter of
growth in Resort revenues. We increased our attendance by 5% while
essentially maintaining guest spending in the parks, and also improved both
hotel occupancy and guest spending per room.

We are encouraging our guests to book further in advance of
their vacation by providing them with early-booker discounts and they are
responding favorably. This has given us greater business visibility and
allows us to better manage demand.

We continue to focus on delivering a high quality, unique
Disney experience for our guests. We recently launched the Disney Magical
Moments Festival, our new annual celebration. I would also like to recognise
our Cast Members who are dedicated to bringing the Disney magic to life for
our guests."

Seasonality

The Group's business is subject to the effects of seasonality
and the annual results are significantly dependent on the second half of the
year, which traditionally includes the high season at Disneyland(R) Paris.
Results have been unfavorably impacted due to a shift in the Easter vacation
period for some of our key markets to the second semester. Consequently, the
operating results for the First Half are not necessarily indicative of
results to be expected for the full fiscal year.

Revenues by Operating Segment

                                    First Half         Variance
    (EUR in millions, unaudited)  2011     2010  Amount        %
    Theme parks                  300.4    287.3    13.1      4.6%
    Hotels and Disney(R) Village 228.2    205.3    22.9     11.2%
    Other                         19.1     24.7    (5.6)   (22.7)%
    Resort operating segment     547.7    517.3    30.4      5.9%
    Real estate development
    operating segment             11.4      2.0     9.4     >100%
    Total revenues               559.1    519.3    39.8      7.7%

Resort operating segment revenues increased by 6% to EUR 547.7
million
from EUR 517.3 million in the prior-year period.

Theme parks revenues increased by 5% to EUR 300.4 million from EUR
287.3 million
in the prior-year period due to a 5% increase in attendance to
6.9 million. This increase in attendance resulted from more guests visiting
from France and Belgium, partially offset by a decline in visits from the
Netherlands
. Average spending per guest remained stable compared to the
prior-year period.

Hotels and Disney(R) Village revenues increased by 11% to EUR
228.2 million
from EUR 205.3 million in the prior-year period, mainly due to
a 6% increase in average spending per room to EUR 200.64, combined with a 3.8
percentage points increase in hotel occupancy to 83.4%. The increase in
average spending per room was due to higher spending on food and beverage and
an increase in daily room rates. The increase in hotel occupancy resulted
from 40,000 more room nights sold compared to the prior-year period, due to
more guests visiting from France, and higher business group activity.

Other revenues, which primarily include participant
sponsorships, transportation and other travel services sold to guests,
decreased by EUR 5.6 million to EUR 19.1 million compared to EUR 24.7 million
in the prior-year period. This decrease was primarily due to lower
sponsorship revenues and a legal settlement gain in the prior-year period.

Real estate development operating segment revenues increased EUR
9.4 million to EUR 11.4 million
, compared to EUR 2.0 million in the
prior-year period. This increase is due to a greater number of transactions
compared to the prior-year period.

Costs and Expenses

                                First Half        Variance
    (EUR in millions,
    unaudited)                 2011     2010  Amount       %
    Direct operating costs
    (1)                       500.6    478.5    22.1      4.6%
    Marketing and sales
    expenses                   68.1     63.9     4.2      6.6%
    General and
    administrative expenses    51.5     51.2     0.3      0.6%
    Costs and expenses        620.2    593.6    26.6      4.5%

(1) Direct operating costs primarily include wages and
benefits for employees in operational roles, depreciation and amortization
related to operations, cost of sales, royalties and management fees. For the
First Half and the corresponding prior-year period, royalties and management
fees were EUR 31.2 million and EUR 30.1 million, respectively.

Direct operating costs increased EUR 22.1 million compared to
the prior-year period, mainly due to volume-related resort and real estate
development costs, labor rate inflation and costs related to new content.

Marketing and sales expenses increased EUR 4.2 million compared
to the prior-year period, primarily due to higher advertising rates, a change
in the timing of marketing and sales initiatives and labor rate inflation.

Net Financial Charges

                              First Half         Variance
    (EUR in millions,
    unaudited)               2011      2010   Amount       %
    Financial income          2.2       1.6      0.6     37.5%
    Financial expense       (40.8)    (41.7)     0.9     (2.2)%
    Net financial charges   (38.6)    (40.1)     1.5     (3.7)%

Financial income increased EUR 0.6 million due to higher average
cash and cash equivalents and higher short term interest rates compared to
the prior-year period.

Financial expense decreased EUR 0.9 million due to lower average
borrowings compared to the prior-year period.

Net Loss

For the First Half, the net loss of the Group amounted to EUR
99.5 million
compared to EUR 114.5 million for the prior-year period. Net
loss attributable to equity holders of the parent amounted to EUR 82.9
million
and net loss attributable to minority interests amounted to EUR 16.6
million
. The decrease of the Group's net loss is due to the increased
revenues and the improved operating margin compared to the prior-year period.

Cash flows

Cash and cash equivalents as of March 31, 2011 were EUR 323.7
million
, down EUR 76.6 million compared with September 30, 2010, and up EUR
40.2 million
compared with March 31, 2010. These variances resulted from:

                                                     First Half      Variance
    (EUR in millions, unaudited)                   2011       2010
    Cash flow generated by operating activities     6.4       28.1    (21.7)
    Cash flow used in investing activities        (37.6)     (39.9)     2.3
    Free cash flow used                           (31.2)     (11.8)   (19.4)
    Cash flow used in financing activities        (45.4)     (45.0)    (0.4)
    Change in cash and cash equivalents           (76.6)     (56.8)   (19.8)

    Cash and cash equivalents, beginning of
    period                                        400.3      340.3     60.0
    Cash and cash equivalents, end of period      323.7      283.5     40.2

Free cash flow used for the First Half was EUR 31.2 million
compared to EUR 11.8 million used in the prior-year period.

Cash flow generated by operating activities for the First Half
totaled EUR 6.4 million compared to EUR 28.1 million generated in the
prior-year period. This decrease resulted from increased working capital
requirements, partly offset by the improved operating performance during the
First Half. Last year, changes in working capital benefitted from the
unconditional deferral into long-term debt of EUR 25.0 million of royalties
and management fees, while no such benefit occurred this year.

Cash flow used in investing activities for the First Half
totaled EUR 37.6 million compared to EUR 39.9 million used in the prior-year
period.

Cash flow used in financing activities corresponds principally
to the repayment of the debt and totaled EUR 45.4 million for the First Half
compared to EUR 45.0 million used in the prior-year period.

The Group has covenants under its debt agreements which limit
its investments and financing activities.

The Group also has defined annual performance objectives. In
fiscal year 2010, the Group did not meet its performance objectives and had
to defer EUR 45.2 million of royalties and management fees due to The Walt
Disney Company ("TWDC") and interest due to the Caisse des depots et
consignations into long-term subordinated debt.

As a result of utilizing these deferrals available to the
Group with respect to fiscal year 2010, the Group's recurring annual
investment budget[2] for fiscal year 2011 and thereafter is permitted up to
3% of the prior fiscal year's adjusted consolidated revenues2. On March 31,
2011
, the Group obtained lenders' agreement to increase the recurring annual
investment budget from EUR 37 million to EUR 81 million for fiscal year 2011,
and up to 5% of the prior fiscal year's adjusted consolidated revenues[3] for
fiscal year 2012.

For fiscal year 2011, if compliance with these financial
performance covenants cannot be achieved, the Group will have to
appropriately reduce operating costs, curtail a portion of planned capital
expenditures and/or seek assistance from TWDC or other parties as permitted
under the debt agreements. Although no assurances can be given, management
believes the Group has adequate cash and liquidity for the foreseeable future
based on existing cash positions, liquidity from the EUR 100.0 million line
of credit available from TWDC, and the provisions for the conditional
deferral of certain royalties and management fees and interest.

Update on recent and upcoming events

Disney Magical Moments Festival

The Disney Magical Moments Festival was launched in April. It
celebrates bringing the Disney magic to life for families and friends. Guests
will have even more opportunities this year to share magical Disney moments
with their favorite Disney characters.

Scheduled Debt Repayments

The Group plans to repay EUR 77.5 million of its borrowings in
the last six months of fiscal year 2011, consistent with the scheduled
maturities.

First Half Results Webcast: May 10, 2011 at 11:00 CET

To connect to the webcast:

corporate.disneylandparis.com/investor-relations/publications

Additional Financial Information can be found on the Internet
at corporate.disneylandparis.com

Code ISIN: FR0010540740

Code Reuters: EDL.PA

Code Bloomberg: EDL FP

The Group operates Disneyland(R) Paris which includes:
Disneyland(R) Park, Walt Disney Studios(R) Park, seven themed hotels with
approximately 5,800 rooms (excluding approximately 2,400 additional
third-party rooms located on the site), two convention centers, Disney(R)
Village, a dining, shopping and entertainment centre, and a 27-hole golf
course. The Group's operating activities also include the development of the
2,230-hectare site, half of which is yet to be developed. Euro Disney
S.C.A.'s shares are listed and traded on Euronext Paris.

Attachments: Exhibit 1 - Consolidated Statement of Income

Exhibit 2 - Consolidated Segment Statement of Income

Exhibit 3 - Consolidated Statement of Financial Position

Exhibit 4 - Consolidated Statement of Cash Flows

Exhibit 5 - Consolidated Statement of Changes in Equity

Exhibit 6 - Statement of Changes in Borrowings

Exhibit 7 - Definitions

EXHIBIT 1

                             EURO DISNEY S.C.A.
                             Fiscal Year 2011

                              First Half Results
                         Six Months Ended March 31, 2011

                        CONSOLIDATED STATEMENT OF INCOME

                                          First Half           Variance
    (EUR in millions, unaudited)         2011       2010    Amount        %

    Revenues                            559.1      519.3     39.8       7.7%
    Costs and expenses                 (620.2)    (593.6)   (26.6)      4.5%
    Operating margin                    (61.1)     (74.3)    13.2     (17.8)%
    Net financial charges               (38.6)     (40.1)     1.5      (3.7)%
    Gain / (loss) from equity
    investments                           0.2       (0.1)     0.3       n/m
    Loss before taxes                   (99.5)    (114.5)    15.0     (13.1)%
    Income taxes                            -          -       -        n/a
    Net loss                            (99.5)    (114.5)    15.0     (13.1)%
    Net loss attributable to:
    Equity holders of the parent        (82.9)     (95.2)    12.3     (12.9)%
    Minority interests                  (16.6)     (19.3)     2.7     (14.0)%

    n/m: not meaningful

    n/a: not applicable

    EXHIBIT 2

                               EURO DISNEY S.C.A.
                                Fiscal Year 2011

                               First Half Results
                         Six Months Ended March 31, 2011

                    CONSOLIDATED SEGMENT STATEMENT OF INCOME

    Resort operating segment

                                          First Half           Variance
    (EUR in millions, unaudited)         2011       2010    Amount     %

    Revenues                            547.7      517.3    30.4      5.9%
    Costs and expenses                 (614.0)    (591.8)  (22.2)     3.8%
    Operating margin                    (66.3)     (74.5)    8.2    (11.0)%
    Net financial charges               (38.4)     (40.0)    1.6     (4.0)%
    Gain from equity investments          0.2          -     0.2      n/a
    Loss before taxes                  (104.5)    (114.5)   10.0     (8.7)%
    Income taxes                            -          -       -      n/a
    Net loss                           (104.5)    (114.5)   10.0     (8.7)%

    n/a: not applicable.

    Real estate development operating segment

                                        First Half        Variance
    (EUR in millions, unaudited)        2011     2010   Amount       %

    Revenues                           11.4      2.0     9.4      >100%
    Costs and expenses                 (6.2)    (1.8)   (4.4)     >100%
    Operating margin                    5.2      0.2     5.0      >100%
    Net financial charges              (0.2)    (0.1)   (0.1)      n/m
    Loss from equity investments          -     (0.1)    0.1       n/m
    Income before taxes                 5.0        -     5.0       n/a
    Income taxes                          -        -       -       n/a
    Net profit                          5.0        -     5.0       n/a

    n/m: not meaningful.

    n/a: not applicable.

    EXHIBIT 3

                               EURO DISNEY S.C.A.
                                Fiscal Year 2011

                              First Half Results
                         Six Months Ended March 31, 2011

                  CONSOLIDATED STATEMENT OF FINANCIAL POSITION

    (EUR in millions)                      March 31, 2011  September 30, 2010
                                             (unaudited)
    Non-current assets
    Property, plant and equipment, net           1,911.9         1,974.4
    Investment property                             14.8            14.8
    Intangible assets                               43.5            48.1
    Restricted cash                                 77.7            74.6
    Other                                           12.8            12.6
                                                 2,060.7         2,124.5
    Current assets
    Inventories                                     35.8            29.2
    Trade and other receivables                    113.2           116.3
    Cash and cash equivalents                      323.7           400.3
    Other                                           16.6            15.5
                                                   489.3           561.3
    Total assets                                 2,550.0         2,685.8

    Shareholders' equity
    Share capital                                   39.0            39.0
    Share premium                                1,627.3         1,627.3
    Accumulated deficit                         (1,601.3)       (1,518.4)
    Other                                           (4.5)           (6.6)
    Total shareholders' equity                      60.5           141.3

    Minority interests                              77.9            94.0
    Total equity                                   138.4           235.3
    Non-current liabilities
    Borrowings                                   1,758.0         1,811.7
    Deferred income                                 10.2            10.6
    Provisions                                      17.8            17.7
    Other                                           70.4            72.4
                                                 1,856.4         1,912.4
    Current liabilities
    Trade and other payables                       285.9           317.9
    Borrowings                                     141.2           123.4
    Deferred income                                125.5            93.2
    Other                                            2.6             3.6
                                                   555.2           538.1
    Total liabilities                            2,411.6         2,450.5
    Total equity and liabilities                 2,550.0         2,685.8

    EXHIBIT 4

                               EURO DISNEY S.C.A.
                                Fiscal Year 2011

                              First Half Results
                         Six Months Ended March 31, 2011

                      CONSOLIDATED STATEMENT OF Cash FlowS

                                                                First Half
    (EUR in millions, unaudited)                              2011      2010

    Net loss                                                 (99.5)   (114.5)
    Items not requiring cash outlays or with no impact on
    working capital:
    - Depreciation and amortization                           86.3      81.8
    - Increase in valuation and reserve allowances             2.1       0.2
    - Other                                                    1.5       2.8

    Net change in working capital account balances:
    - Change in receivables, deferred income and other
    assets                                                    31.1      45.0
    - Change in inventories                                   (7.1)      4.5
    - Change in payables and other liabilities                (8.0)      8.3
    Cash flow generated by operating activities                6.4      28.1

    Capital expenditures for tangible and intangible assets  (36.8)    (39.6)
    Increase in equity investments                            (0.8)     (0.3)
    Cash flow used in investing activities                   (37.6)    (39.9)

    Net sales / (purchases) of treasury shares                 0.2      (0.2)
    Repayments of borrowings                                 (45.6)    (44.8)
    Cash flow used in financing activities                   (45.4)    (45.0)

    Change in cash and cash equivalents                      (76.6)    (56.8)
    Cash and cash equivalents, beginning of period           400.3     340.3
    Cash and cash equivalents, end of period                 323.7     283.5

                       SUPPLEMENTAL CASH FLOW INFORMATION

                                                               First Half
    (EUR in millions, unaudited)                                2011     2010
    Supplemental cash flow information:
    Interest paid                                               23.3     24.9

    Non-cash financing and investing transactions:
    Deferral into borrowings of accrued interest under TWDC
    and CDC subordinated loans                                   9.2      9.1
    Deferral into borrowings of royalties and management
    fees
                                                     -        -

    EXHIBIT 5

                               EURO DISNEY S.C.A.
                                Fiscal Year 2011

                              First Half Results
                         Six Months Ended March 31, 2011

                   CONSOLIDATED STATEMENT OF CHANGES IN Equity

                                         Net loss
                                           for
                            September   the First                  March 31,
    (EUR in millions)        30, 2010     Half         Other            2011
                                       (unaudited)  (unaudited)  (unaudited)
    Shareholders' equity
    Share capital                39.0          -            -         39.0
    Share premium             1,627.3          -            -      1,627.3
    Accumulated deficit      (1,518.4)     (82.9)           -     (1,601.3)
    Other                        (6.6)         -          2.1         (4.5)
    Total shareholders'
    equity                      141.3      (82.9)         2.1         60.5

    Minority interests           94.0      (16.6)         0.5         77.9

    Total equity                235.3      (99.5)         2.6        138.4

    EXHIBIT 6

                       STATEMENT OF CHANGES IN BORROWINGS

                                                First Half 2011 (unaudited)
                                 September                          Transfers
    (EUR in millions)             30, 2010  Increase     Decrease        (4)

    CDC senior loans                 237.0         -            -       (1.1)
    CDC subordinated loans           798.1       7.1 (1)        -       (1.0)
    Credit Facility - Phase IA        34.7       0.3 (2)        -      (31.5)
    Credit Facility - Phase IB        49.5       0.2 (2)        -      (10.1)
    Partner Advances - Phase IA      272.8         -            -      (10.8)
    Partner Advances - Phase IB       85.9         -            -       (8.9)
    TWDC loans                       333.7       2.1 (3)        -          -
    Non-current borrowings         1,811.7       9.7            -      (63.4)
    CDC senior loans                   1.9         -         (1.0)       1.1
    CDC subordinated loans             2.1         -         (0.9)       1.0
    Credit Facility - Phase IA        63.1         -        (31.5)      31.5
    Credit Facility - Phase IB        20.2         -        (10.1)      10.1
    Partner Advances - Phase IA       32.1         -            -       10.8
    Partner Advances - Phase IB        4.0         -         (2.1)       8.9
    Current borrowings               123.4         -        (45.6)      63.4
    Total borrowings               1,935.1       9.7        (45.6)         -

    (table continues) 

    (EUR in millions)               March 31, 2011
                                     (unaudited)
    CDC senior loans                       235.9
    CDC subordinated loans                 804.2
    Credit Facility - Phase IA               3.5
    Credit Facility - Phase IB              39.6
    Partner Advances - Phase IA            262.0
    Partner Advances - Phase IB             77.0
    TWDC loans                             335.8
    Non-current borrowings               1,758.0
    CDC senior loans                         2.0
    CDC subordinated loans                   2.2
    Credit Facility - Phase IA              63.1
    Credit Facility - Phase IB              20.2
    Partner Advances - Phase IA             42.9
    Partner Advances - Phase IB             10.8
    Current borrowings                     141.2
    Total borrowings                     1,899.2

(1) Increases are related to the contractual deferral of
interest on certain CDC subordinated loans, including EUR 5.1 million of
interest incurred in the First Half that was conditionally deferred based on
the Group's 2010 performance.

(2) Effective interest rate adjustments. As part of the 2005
financial restructuring, these loans were significantly modified. In
accordance with IAS 39, the carrying value of this debt was replaced by the
fair value after modification. The effective interest rate adjustment has
been calculated reflecting an estimated market interest rate at the time of
the modification that was higher than the nominal rate.

(3) Increases are related to the contractual deferral of
interest on TWDC loans.

(4) Transfers from non-current borrowings to current
borrowings are based on the scheduled debt repayments over the next twelve
months.

EXHIBIT 7

EURO DISNEY S.C.A. Fiscal Year 2011

First Half Results Six Months Ended March 31, 2011

DEFINITIONS

EBITDA corresponds to earnings before interest, taxes,
depreciation and amortization. EBITDA is not a measure of financial
performance defined under IFRS, and should not be viewed as a substitute for
operating margin, net profit / (loss) or operating cash flows in evaluating
the Group's financial results. However, management believes that EBITDA is a
useful tool for evaluating the Group's performance.

Free cash flow is cash generated by operating activities less
cash used in investing activities. Free cash flow is not a measure of
financial performance defined under IFRS, and should not be viewed as a
substitute for operating margin, net profit / (loss) or operating cash flows
in evaluating the Group's financial results. However, management believes
that Free cash flow is a useful tool for evaluating the Group's performance.

Theme parks attendance corresponds to the attendance recorded
on a "first click" basis, meaning that a person visiting both parks in a
single day is counted as only one visitor.

Average spending per guest is the average daily admission
price and spending on food, beverage and merchandise and other services sold
in the theme parks, excluding value added tax.

Hotel occupancy rate is the average daily rooms occupied as a
percentage of total room inventory (total room inventory is approximately
5,800 rooms).

Average spending per room is the average daily room price and
spending on food, beverage and merchandise and other services sold in hotels,
excluding value added tax.

———————————

[1] Please refer to Exhibit 7 for the definition of EBITDA, Free
cash flow and key operating statistics.

[2] Including both capital investments and fixed asset
rehabilitations, which are either treated as an expense or capitalized as
fixed assets under IFRS.

[3] Adjusted consolidated revenues correspond to consolidated
revenues under IFRS, excluding participant sponsorships and after removing
the effect of certain differences between IFRS and French accounting
principles.

Press Contact, Laurent Manologlou, Tel: +331 64 74 59 50, Fax: +331 64 74 59 69,
e-mail: laurent.manologlou at disney.com; Investor Relations, Olivier Lambert,
Tel: +331 64 74 58 55, Fax: +331 64 74 56 36, e-mail: olivier.lambert at disney.com;
Corporate Communication, Jeff Archambault, Tel: +331 64 74 59 50, Fax: +331 64 74 59 69,
e-mail: jeff.archambault at disney.com

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