Chairman’s message

Mar

ch 2

010

Don’t forget... …your pension website!

Visit www.disneypensions.co.uk to learn more about your pension.

Although the past year continued to be a challenging environment for businesses to operate in, investment markets generally rebounded strongly from low points earlier in the year. You can see on page 2 that the Plan’s funds have achieved very strong investment returns over the last year. During 2009 you will have seen updates on changes that the Trustees made to the managers used for the Plan’s Active International Equity Fund and the Money Market Fund. Rest assured that the Trustees, along with their adviser, continue to monitor the Plan’s investments and will make changes if and when they are appropriate.

In this edition of pensions TALK, you will find the usual updates on the Plan’s membership and fund performance. We have also included some important information about changes to the minimum retirement age (page 2) and further details on the recent legislation restricting tax relief on pension contributions for high earners.

Most of us want a comfortable retirement, so it is important to save and to have a good understanding of how your pension account is performing. With 2010 well underway, it is a good time to review your retirement goals and make sure you are on track to meet them. To help you with this, we have included an overview of the things you should think about on page 3.

I hope that this issue of pensions TALK is informative, and that you continue to find our online tools helpful. If you have any suggestions or feedback regarding pensions TALK, Ray O’Sullivan from Human Resources would be happy to hear from you.

Stuart Warrener Chairman of the TrusteesThe Walt Disney Retirement Savings Plan

Inside… • Investment performance

• Membership

• Pension news

• Know your pension target

• Funds and figures

• Trustees & adviser

Any questions?If you would like more information about your pension account or need to update your details, please contact our administrator, Capita Hartshead.

Helpline: 01227 773914

Website: www.disneypensions.co.uk

Email: disney@capita.co.uk

Write to: Capita Hartshead Radio House Thanet Way Whitstable CT5 3QP

Should you have a query which Capita Hartshead is unable to help you with, please contact Ray O’Sullivan in the Human Resources Department on 0208 222 1650 or by emailing Ray.OSullivan@disney.com

TALKtelling you about The Walt Disney Retirement Savings Plan (the Plan)

Pension news Changes to the minimum retirement age......if you joined the Plan before 6 April 2006

You will retain your entitlement to retire early from age 50 if you wish.

...if you joined the Plan from 6 April 2006

Currently, it is possible to take an early retirement pension from the Plan from age 50. However, from 6 April 2010 changes in the law mean that this is increasing to age 55, unless you have to retire due to ill health.

So what does this mean for you? Well, if:

• you were born before 6 April 1955 – you will not be affected by the changes.

• you were born between 6 April 1955 and 5 April 1960 – if you do not retire before 6 April 2010, the earliest you can retire will be age 55.

• you were born on or after 6 April 1960 – the earliest youcan retire will be age 55.

A note for high earnersIf you have total income above £130,000 (or have had in the tax years 2007/08 or 2008/09) you need to be aware of the changes to your entitlement to tax relief on pension contributions.

Legislation introduced earlier this year and changes announced by the government on 9 December 2009 mean you may have additional tax charges if you change the normal pattern of your pension contributions. You can find out more in “HM Revenue & Customs’ Guidance for Individuals Pensions: Limiting Tax Relief for High Income Individuals”, available at www.hmrc.gov.uk/budget2009/pensions-individuals-1550.pdf or go to www.hmrc.gov.uk/pbr2009/pbrn18.pdf for a summary.

Investment performanceThe table below shows the performance of the Plan’s investment funds to 31 December 2009.

Past performance for periods to 31 December 2009

Fund name1 year

(%)3 years

(% a year)5 years

(% a year)

Active UK Equity Fund 40.3 5.3 11.7

Benchmark 30.1 -1.4 6.5

Active International Equity Fund 19.8 5.9 N/A

Benchmark 15.7 0.6 N/A

UK Equity Index Tracker Fund 30.4 -1.2 6.6

Benchmark 30.1 -1.4 6.4

Overseas Equity Index Tracker Fund 16.0 1.8 6.6

Benchmark 15.5 1.4 6.2

Global Equity Index Tracker Fund 21.9 0.6 6.6

Benchmark 21.4 0.5 6.5

Active Property Fund 3.8 -9.1 0.8

Benchmark 2.2 -8.3 1.3

Pre-Retirement Fund (Inflation-linked pension) 5.5 6.0 6.0

Benchmark 5.6 5.8 5.9

Pre-Retirement Fund (Level pension) 4.3 4.0 4.7

Benchmark 3.7 2.8 3.8

Money Market Fund* N/A N/A N/A

Benchmark N/A N/A N/A

2 Disney pensions Talk

As we have reported in the Funds Factsheets since June 2009, the Trustees have applied more meaningful names to the Plan’s funds, to make it clearer what types of assets they are invested in, such as bonds, equities or cash.

These new names should help make your future investment choices simpler.

You can find more information about the funds and the underlying investment managers in the quarterly Funds Factsheet at www.disneypensions.co.uk > Scheme booklet > Investments > Investment options > Quarterly Funds Factsheet

And for more detailed information about each of the underlying funds go to www.pru.co.uk/disney

* Note: Money Market Fund was implemented from April 2009 and there is no historical performance data for this fund.

31 December

200931 December

2008

1,162

1,3531,274

986

500

0

1000

1500

2000

2500

3000

active (contributing) members

deferred members

MembershipThe chart below shows changes in the Plan’s membership:

Note: The performance figures above are for the current underlying fund.

1. Set your ‘pension target’

One of the most important things to begin with, is to set your pension target. This is how much you think you’ll need in retirement. Your pension target depends on your personal circumstances, so it may help you to make a list of likely, planned, and ongoing expenses for when you retire. To help, use the Disney Retirement Budget Planner available from www.disneypensions.co.uk > Planning or by contacting our administrator Capita Hartshead (details on front page) for a hard copy. Your annual benefit statement outlines how your pension account is building up and will be a useful guide to providing you with a realistic target. The Retirement Budget Planner lists regular outgoings – like mortgage and household bills – and helps you estimate how much your outgoings will be in retirement.

2. Use the Disney Pension Planner

The Pension Planner asks you to enter some basic information to calculate the amount of pension you could receive at retirement. You just need to compare this to your pension target to see if you are on track.

The Pension Planner uses assumptions to calculate your pension. If you want to know more about these, they are listed underneath your results. Log in and check your pension target at: www.disneypensions.co.uk > Planning > Pension Planner

Tip: if you log in to the site you will receive more accurate results from the Pension Planner.

Forgotten your log-in details? If you have forgotten your log-in details contact Capita on 01227 773914.

3. Stay on track

To ensure that you reach your pension target, you could start making contributions in addition to your minimum employee contribution. The Plan offers you a tax-efficient way to save for your retirement. Contributions are deducted from your salary before you pay income tax. This means that, up to certain limits, you receive tax relief at your highest rate. So, for every £100 you pay into your pension account, only £80 comes out of your take-home salary, or £60 if you are a higher-rate tax payer (based on 2009/10 tax rates). You can change the level of your additional contributions once a year at 1 July when making your Disney Lifestyle benefit changes.

4. Make your investments work harder

Another important way to help you build up your pension account is to make sure that your contributions are being invested in line with your attitude to risk. The investments you make now will provide for your future, so don’t leave it to chance. Make active investment decisions and review them regularly – at least once a year. For example, if you’re approaching retirement, you may want to think about switching your funds from equities into more low-risk assets such as bonds and cash. Our online Investment Guide provides information to help you understand more about the different risks you face. To view the Investment Guide go to: www.disneypensions.co.uk > Scheme booklet > Investments > Investment Options > Investment Guide

Disney Retirement Budget Planner

Disney pensions Talk 3

Know your pension targetSaving for your pension should be one of the longest running financial commitments you make, and one that lasts throughout your working life – which could be more than 40 years! During this time your personal circumstances will change and it’s important to understand your pension savings, so that you have a good idea of what they can provide for you in retirement. Below, we’ve set out some key points to help:

Independent financial advisersThe Trustees, by law, are unable to offer financial advice. If you would like financial guidance you may want to contact an independent financial adviser (IFA). To get details of IFAs in your area, go to www.unbiased.co.uk

Balance at 23 March 2009. * Balance at 14 August 2009. Note: The underlying fund for the Active International Equity option was changed from Newton International Growth Fund to the MFS Global Equity Fund during the year. The assets from Newton were taken out on 23 March 2009 and switched to the BGI Aquila World ex-UK Equity Index Fund while the Trustees found an appropriate alternative fund. The assets were invested in MFS Global Equity Fund on 14 August 2009.

** Balance at 22 April 2009. Note: The underlying fund for Money Market Fund was changed from the M&G Cash Fund to the BGI Ascent Sterling Government Liquidity Fund during the year with the switch occurring on 22 April.# Includes investment return on funds from Active International Equity Fund between 23 March 2009 and 14 August 2009.

All figures have been rounded to the nearest pound.

New fund name Underlying fund(s)

Value at 31 December

2008 £

Net investments& switches

£

Investment return

£

Value at 31 December

2009£

Active UK Equity Fund M&G Specialist UK Equity Fund 4,862,353 1,156,118 2,172,928 8,191,399

Active International Equity Fund

Newton International Growth Fund

6,702,551 305,866 -400,612 6,607,805^

MFS Global Equity Fund 8,030,252* 735,078 1,717,185 10,482,515

UK Equity Index Tracker Fund

BGI Aquila UK Equity Index Fund

846,080 152,326 270,497 1,268,903

Overseas Equity Index Tracker Fund

BGI Aquila World ex-UK Equity Index Fund

693,797 -697,406 960,153# 956,544

Global Equity Index Tracker Fund

BGI 40/60 Global Equity Fund 21,032,484 3,855,325 5,428,647 30,316,456

Active Property Fund M&G Property Fund 1,093,650 88,268 46,500 1,228,418

Pre-Retirement (Inflation-linked pension) Fund

BGI Aquila Over 5 Years Index Linked Gilt Fund

470,366 142,154 42,188 654,708

Pre-Retirement (Level pension) Fund

M&G Pre-Retirement Fund 5,822,323 652,370 267,335 6,742,028

Money Market Fund M&G Cash Fund 926,489 74,301 -5,126 995,664**

BGI Ascent Sterling Government Liquidity Fund

1,006,905** 267,903 2,172 1,276,980

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Funds and figuresOver the year the total value of invested funds in the Plan has increased from £42.5 million at 31 December 2008 to £61.1 million at 31 December 2009 as a result of new entrants to the Plan, contributions from existing members and investment returns.

Feedback – Your views are important to us, so if you have any comments or suggestions on the pension information you receive, please let Ray O’Sullivan know in the Human Resources Department on 0208 222 1650 or at Ray.OSullivan@disney.com

4 Disney pensions Talk

Trustees & adviser Your TrusteesStuart Warrener (Chairman)Nigel Cook Tony Chambers Cormac Keaney Peter Wiley

Investment ManagerPrudential M&G121 Kings Road Reading RG1 3ES

Pensions ConsultantsWatson Wyatt,a Towers Watson company21 Tothill Street Westminster London SW1H 9LL

Auditors Nexia Smith and WilliamsonPortwall PlacePortwall LaneBristolBS1 6NA

Trustee changesOver the past Plan year there have been some changes to your Trustees. Geoff Ellis has recently left the Company and has stood down from his role as Chairman. The Trustees would like to thank Geoff for his valuable contribution as a Trustee for 10 years and as Chairman for the last five years. The Trustees would also like to thank Cindy Rose, who resigned as a Trustee this year, for her commitment and input. Stuart Warrener has been appointed as Chairman of the Trustees and the Company has appointed Cormac Keaney as a Trustee. In last year’s issue of pensions TALK we advised that there was a vacant Member-Nominated Trustee (MNT) position which the Trustees decided to leave open for the time being. In accordance with the Trustees’ procedure for nomination and selection of MNTs, the Trustees asked for nominations earlier in the year to fill the position.

As a result, Tony Chambers was selected to become a Plan MNT.

The Trustees would like to welcome Stuart, Cormac and Tony to their new positions and look forward to working with them on the Plan.