Dorsey Lawrence

Newsletter Volume ONE

Looking to the Future

DREAMWORKS ANIMATION SKG, INC.
20 Year Anniversary

Welcome to Dreamworks Animation SKG

Inc. headquartered in Glendale, California. We
were incorporated with the Secretary of State
of the State of Delaware on July 13, 2004 and
we have been a publicly traded company for 10
years now on NYSE as (DWA). Here we pride
ourselves on maintaining a leading edge in the
Animated Film Industry. Our company culture
at its core is the desire to tell great stories and
inspire people to believe and pursue their
dreams.

The company operates through four segments:

Feature Films, Television, Consumer Products,
and Other Markets. We have released 29
feature films, with fifteen of the films among
the 50 highest-grossing animated films, TV
programming exclusive to Netflix and
Nickelodeon, and we have alliances with
McDonalds, Hewlett-Packard, and Intel.

Dorsey Lawrence

Newsletter Volume ONE

Looking to the Future

DREAMWORKS ANIMATION SKG, INC.
20 Year Anniversary
Our Campus
Inspired by the Mediterranean our six acre facility is
covered in lush green landscaping, flowing waterscapes
and warm colors all to inspire or relax our employees
Glendale, California

and 460,000-sqft of office space.

Our Campus
This modern 200,000-sqft campus is the home of
PDI/DreamWorks. The open spaces and windows
overlook San Francisco Bay and the surrounding
mountains. The unique amenities include an on-site
clinic, nutritionist, cafe and outdoor spaces with gas
Redwood City, California

heaters.

Our People
DreamWorks employs over 2,000 artists,
technologists, production and corporate staff.
"DreamWorks Animation employees have a home that
complements the outstanding quality of their work,
CEO Jeffrey Katzenberg

Our Perks
We provide a stress-free work environment that
balances work and play with activities like Yoga and
Chess. Employees can also visit the doctor or
nutritionist on-site.

Dorsey Lawrence
Dorsey Lawrence
Newsletter Volume ONE
Newsletter Volume ONE

Newsletter Volume ONE

Dorsey Lawrence
Dorsey Lawrence
Newsletter Volume ONE

Looking to the Future

DREAMWORKS ANIMATION SKG, INC.

20 Year Anniversary
Our Commissary
Employees enjoy free freshly prepared gourmet
entrees for breakfast and lunch every day or snacks
from 26 stations located throughout the campus and
we even have mid-day ice cream break.

Our Classes
Classes include painting, drawing, cinematography,
storytelling, sculpture. These programs are to teach
employees new skills or hone existing ones.

Our Events
Throughout the year special events are held which
include festivals, costume contests, poker
tournaments, special food trucks and movie launch
theme days.

Our Community
We have a diversified list of groups to join from film
clubs, sports teams or volunteer groups. We also
support many local, national and international
organizations.

Dorsey Lawrence

Newsletter Volume ONE

Looking to the Future

DREAMWORKS ANIMATION SKG, INC.
20 Year Anniversary

Time to Celebrate New Adventures:

We are partnering with Merlin Entertainment to

bring a new interactive visitor attraction

Shreks Far Far Away Adventure

The attraction, will open in the summer of 2015

The 20,000-sq ft. London attraction will be sited

at County Hall on the south bank of the River
Thames with the London Eye nearby. Visitors
can meet Shrek and his friends, along with
characters from Madagascar, Kung Fu
Panda and How to Train Your Dragon.

Merlin Entertainments PLC is a British operator

of visitor attractions. It is the largest such
company in Europe, and second largest globally
after Walt Disney. It will be the first time that
Merlin Entertainments has worked with a
Hollywood studio to create a scalable branded
entertainment experience based on a globally
recognized entertainment franchise.

29 movies
12 Golden Globe nominations
15 Academy Award nominations
3 Academy Award wins

Dorsey Lawrence

Newsletter Volume ONE

DREAMWORKS
ANIMATION SKG. INC.
(818) 695-5000
Campanile Building
1000 Flower Street
Glendale, California 91201

www.dreamworksanimation.com

LOOKING TO THE FUTURE

DREAMWORKS ANIMATION SKG, INC.
20 YEAR ANNIVERSARY
Dorsey Lawrence

Newsletter Volume TWO

Trade Securities
Class A Common Stock
Class B Common Stock
Class C Common Stock
Preferred Stock

Gaylord Hotels

DIVIDEND POLICY

e currently intend to
retain all our earnings to finance the
growth and development of our
business. We do not anticipate
paying any dividends on our
common stock in the foreseeable
future. Any future change in our
dividend policy will be made at the
discretion of our board of directors
and will depend on contractual
restrictions contained in our credit
facility or other agreements, our
results of operations, earnings,
capital requirements and other
factors considered relevant by our
board of directors. (SKG.)

We are partnered with Gaylord Hotels for

a live interactive experience.
These experiences include:

character breakfast
Christmas events
summer poolside activities
birthday parties
festive parades
and merchandise

Dorsey Lawrence

Newsletter Volume TWO

LOOKING TO THE FUTURE

DREAMWORKS ANIMATION SKG, INC.
20 YEAR ANNIVERSARY

28

Dollar Amount

November 11th
Merger Talks began with Hasbro.
Hasbro is the industrys secondlargest toy company with a
market cap of $7.1 billion. Hasbro
currently partners with Disney,
Marvel, Lucasfilm and Rovio.
Hasbros own brands include
Transformers, G.I. Joe, Candy
Land, Monopoly and Care Bears.

27
26
25
24
23
22
21

Mon

Tues

Wed

Thurs

Fri

21.78

21.85

24.65

25.37

21.7

High 22.18

22.49

27

26.5

22.75

Low

November 13th
DWA stock prices soar to $27.00

November 11, 2014 November15, 2014

November 15th
Merger Talks end with Hasbro.
Hasbro concluded negotiations
possibly due to a 6 percent
declined in their stocks. This
decline wiped out over $300
million of their market
capitalization. DWA stocks closed
at $22.31

Percent of Change

and closing at $25.52.

12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%

Mon

Tues

Wed

Thurs

Fri

Series1 1.84% 2.93% 9.53% 4.45% 4.84%

LOOKING TO THE FUTURE

Dorsey Lawrence

DREAMWORKS ANIMATION SKG, INC.

20 YEAR ANNIVERSARY

Newsletter Volume TWO

Category

Name

Release Dates

Vendor

PARTNERED
FILM
TV
FILM
SHORT
SPECIAL
SHORT
SHORT
PARTNERED
PARTNERED
FILM
PARTNERED
PARTNERED
PARTNERED
PARTNERED
PARTNERED
PARTNERED
TV
PARTNERED
PARTNERED
PARTNERED
PARTNERED
FILM
PARTNERED
SPECIAL
PARTNERED
PARTNERED
FILM
PARTNERED
TV
PARTNERED
PARTNERED
FILM
PARTNERED
TV
PARTNERED
PARTNERED
FILM
SHORT
PARTNERED
FILM
PARTNERED
SHORT
SHORT
TV
FILM
TV

Marriott Gaylord
Kung Fu Panda 2
Kung Fu Panda:LoA
Puss in Boots
Book of Dragons
Dragons: Gift of Night Fury
Kung Fu Panda:SotM
Puss in Boots: The 3 Diablos
INDYCAR & Indy MotorSpwy
Wal-Mart
Madagascar 3:EMW
Toys-R-Us
Dole
Tripe Five
Twentieth Century Fox
Cartoon Network
Shanghai Media Group
DreamWorks Dragons
MediaNaviCo LLC
JumpStart
Imax
PikPok
Rise of the Guardians
Royal Caribbean Intl.
Madly Madagascar
REGIONS Group
Netflix
The Croods
AAA
Monsters vs. Aliens
Sands CotaiCentral
SUPER RTL.
Turbo
Hasbro
Turbo FAST
Fuhu Inc.
Merlin Entertainment
Mr. Peabody & Sherman
Almost Home
YouTube
How to Train Your Dragon 2
Forest City Malls
Rocky and Bullwinkle
Dawn of the Dragon Racers
VeggieTales in the House
Penguins of Madagascar
All Hail King Julien

04/2011
05/2011
09/2011
10/2011
11/2011
11/2011
12/2011
02/2012
03/2012
04/2012
06/2012
06/2012
06/2012
07/2012
08/2012
08/2012
08/2012
08/2012
10/2012
10/2012
11/2012
11/2012
11/2012
12/2012
01/2013
02/2013
02/2013
03/2013
03/2013
03/2013
04/2013
06/2013
07/2013
08/2013
12/2013
01/2014
02/2014
03/2014
03/2014
06/2014
06/2014
07/2014
10/2014
11/2014
11/2014
11/2014
12/2014

Gaylord
Paramount
Nickelodeon
Paramount
Paramount
Paramount
Paramount
Paramount
INDY
Wal-Mart
Paramount
Toys-R-Us
Dole
Triple Five
Fox
Car Net
SMG
Nickelodeon
M-GO
JumpStart
Imax
PikPok
Paramount
R Caribbean
Fox
Regions
Netflix
Fox
AAA
Nickelodeon
Sands
SUPER RTL.
Fox
Hasbro
Netflix
Fuhu
Merlin Ent.
Fox
Fox
YouTube
Fox
Forest City
Fox
Fox
Netflix
Fox
Netflix

Addition
Information
Experience
Distribution
Programming
Distribution
Distribution
Dragon Set
Dragon Set
KFP2
Collaboration
Distribution
Incld in PIB
Distribution
Promotional
Indoor TPark
Distribution
Programming
Oriental DWA
Programming
Streaming
Learning
Experience
APPs
Netflix 2015
Experience
Distribution
TPark in Russia
300hrs. of PG
Valentines
Announcement
Programming
Interaction
Programming
Distribution
Franchise Deal
Programming
Tablet
Shrek Park
Distribution
Distribution
DreamworksTV
Incld in MP&S
Experience
Distribution
Incld in MP&S
Incld in HTTYD 2
Distribution
Programming

Dorsey Lawrence

LOOKING TO THE FUTURE

DREAMWORKS ANIMATION SKG, INC.

Newsletter Volume TWO

20 YEAR ANNIVERSARY

As with any of our competitors in the

Film Industry stocks rise or fall. The
reasoning is complex and numerous and
events can impact stock prices directly
or indirectly. It also makes it hard as a
hit or a miss film can have a major
impact on the company.
With the Launch of our own TV
production unit, Oriental Dreamworks,
Awesomeness TV, Classic Media,
changing distributors to FOX, large
partner base and building a consumer
product business we now feel we have
enough characters to move aggressively
forward into other markets.

12/2011 12/2012

Upcoming Feature films

The Penguins of Madagascar March
27th, 2015
Trolls (working title) June 5th, 2015
B.O.O: Bureau of Otherworldly
Operations November 6th, 2015
Mumbai Musical (working title)
December 19th, 2015
Kung Fu Panda 3 March 16th, 2016
How to Train Your Dragon 3 June
18th, 2016

12/2012 12/2013

12/2013 12/2014

Dorsey Lawrence

LOOKING TO THE FUTURE

DREAMWORKS ANIMATION SKG, INC.

Newsletter Volume TWO

20 YEAR ANNIVERSARY

2014

(0.35)

2013

0.65

2012

(0.43)

2011

1.02

Shareholders
Equity
(in billions)

EPS Diluted
(TTM)
USD

2014

1.386

2013

1.405

2012

1.346

2011

1.357

In the last four years

DreamWorks Animation

2014

154.68

stock has been on a roller-

2013

19.98

coaster ride. The reason for

2012

19.84

the stocks doing this is

2011

9.77

PE Ratio
%

because of the five-six

month period between the
two films that we release
each year. Overall we
believe here at

EBT Margin
%

DreamWorks Animation in

2014

(6.84)

2013

10.60

2012

(7.15)

2011

17.45

the financial world right

now, we are doing well.

2014

6.64

The company is ready to

2013

4.01

push forward into other

2012

2.70

markets to close the gap.

2011

6.64

ROE
%

Dorsey Lawrence

LOOKING TO THE FUTURE

Newsletter Volume TWO

DREAMWORKS ANIMATION SKG, INC.

20 YEAR ANNIVERSARY

Key Points of 2014

(charts in millions)

Dreamworks
Animation carries no
Bonds
Dreamworks
Animation has a market
share of 5.7%
Interest Coverage
(TTM) of 6.09%
We hold 45.45% of
Oriental Dreamworks
We hold a 50.00%
equity interest in a joint
venture operated
through Bullwinkle
Studios, LLC

Treasury stock
2011

(720)

2012

(731)

2013

(768)

2014

(772)
(775)

(755)

(735)

(715)

(695)

Dorsey Lawrence

Newsletter Volume TWO

LOOKING TO THE FUTURE

DREAMWORKS ANIMATION SKG, INC.
20 YEAR ANNIVERSARY

http://finance.yahoo.
com/q?s=DWA
http://www.nasdaq
.com/markets/ipos/
filing.ashx?filingid
=2999460
http://variety.com/2014/film/ne
ws/dreamworks-animation-inmerger-talks-with-hasbro1201355161/
http://www.hollywoodrepo
rter.com/news/dreamworks
-animation-hasbro-endmerger-749215

http://collider.com/how-to-train-your-dragon-3release-date/

DREAMWORKS
ANIMATION SKG. INC.
(818) 695-5000
Campanile Building
1000 Flower Street
Glendale, California 91201

Dorsey Lawrence

Newsletter Volume Three

LOOKING TO THE FUTURE

DREAMWORKS ANIMATION SKG, INC.
20 YEAR ANNIVERSARY

Our Financial Future

Third Quarter Revenue and Earnings are Up
17%. Dreamworks Animation total revenue of
$180.9 million and net income of $11.9 million.
Quarterly Revenue and Earnings of 2013 are
$154.5 million and net income of $10.1 million.
How to Train Your Dragon 2, has reached over
$615 million at the worldwide box office to
become the highest-grossing animated film of
the year." commented Jeffrey Katzenberg

Australian Centre for the Moving Image

The largest exhibit in ACMI's history
DreamWorks Animation: The Exhibition
The studio's first ever international exhibition
Workshops, panels and late night entertainment
offered unique insight into the creativity behind
20 years of beloved DreamWorks animated
films. An exciting journey filled with artworks,
interviews and interactive displays

LOOKING TO THE FUTURE

DREAMWORKS ANIMATION SKG, INC.

20 YEAR ANNIVERSARY
We carry no Asset impairments, restructuring
charges Discontinued Operations or
Extraordinary Items
(charts are in thousands)

Net Income
2014
2013
2012
2011

26,263

(38,000) (18,000) 2,000

39,385

61,734
43,239

22,000 42,000 62,000 82,000

NI goes up and down due to sales of films. With only

two movies a year it a gamble. With other market
revenues in place NI should start a cuntinous up trend

2014

2013

2012

2011
Cash used in Plant, Property and Equipment
during the years are expansions of our
facilities

Retained Earnings
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

2014
2013
2012
2011
980,000 1,000,000 1,020,000 1,040,000 1,060,000 1,080,000
The RE go up and down due to increasing the capital
holdings through expanding into other markets

Services
provided in
exchange
Licenses
granted in
exchange

2014 2013 2012 2011

Acquisition
purchase price

Non-Cash used for contrabutions of licenses

and trademarks to companies like Oriental
Dreamworks for equity

Dorsey Lawrence

Newsletter Volume THREE

LOOKING TO THE FUTURE

DREAMWORKS ANIMATION SKG, INC.
20 YEAR ANNIVERSARY
Total assets
Total Non-Current Assets
Other long-term assets
Deferred income taxes
Intangible assets
Goodwill
Equity and other investments
Net property, plant and equipment
Accumulated Depreciation
Gross property, plant & equipment
Total Current Assets
Other current assets
Prepaid expenses
Inventories
Receivables
Cash and cash equivalent
(150)

350
2011

850

2012

2013

1,350

1,850

2,350

2014

(charts in thousands)
Total non-current liabilities

Over the years we have been

working diligently to bring
entertainment to the world and
make DWA a household name.

Long-term debt
Other current liabilities
Accrued liabilities
Accounts payable
(150)
2011

50
2012

250

450

2013

650

850

1,050

2014 3Q

Dreamworks Animation with

assets being more than double
liabilities we are improving the
bottom line in good standing to
push ahead with growing
profits.

Total liabilities and equity

Total stockholders' equity
Accumulated other comp income
Treasury stock
Retained earnings
Additional paid-in capital
Common stock
(1,000) (500)
2011

2012

2013

500 1,000 1,500 2,000 2,500

2014 3Q

Dorsey Lawrence

Newsletter Volume THREE

LOOKING TO THE FUTURE

DREAMWORKS ANIMATION SKG, INC.
20 YEAR ANNIVERSARY

Net cash provided by Operations

(184)

2728 34

Other non-cash items

(86)
(60) 279

Other working capital

23

Income taxes payable

(4)

143

33 55

segment although it

(23)

2014

Inventory

(455) (450) (440) (470)

2013

Accounts receivable

(26) (29) (26) (24)

2012

Stock based compensation

2011

Deferred income taxes

continues to focus on
diversification and growth
12 19

(18) (15) 20

Investment/asset impairment

Amortization of debt discount

1-

Depreciation & amortization

6215
6

Net income

(36)(29) 56
-50%

17

in the variety of business

28

lines in which it now

45

operates.
569

392
87

0%

50%

2013
2012
2011

(charts in millions)

100%

Net cash used for Investing (48) (234)

2014

primarily by its feature film

Prepaid expenses (2)(3) (9)

-100%

The Company is driven

249

(85) (121)

Other investing activities

Purchases of intangibles

6
(12)

(51)

Purchases of investments (5)(3) (19)

Acquisitions, net
Investments in PP&E

(23)
(32)(15)
-

(62)

-100%

(39) (39)

-50%

Net cash provided by Financing

0%

Other financing activities

(4) (1)

2013

Common stock repurchased

(32) (10) (38) (13)

2011

50%

(32) 199

2014

2012

Debt repayment (35)

(233)

Debt issued
-100%

(158)
(43)

96

151

(10)
215

-50%

100%

0%

368
50%

200 100%

Dorsey Lawrence

LOOKING
TO THE FUTURE

Newsletter Volume THREE

Few Hollywood studios can match the

success rate of DreamWorks Animation in
creating hit movies. With 29 feature films
released and an average gross of $411
million per movie DreamWorks Animation
is one of the top box office champions
when it comes to CGI features. Here at
DreamWorks we have also diversified our
revenue streams with expansions, licensing
deals and consumer products.

DREAMWORKS ANIMATION
SKG, INC.
20 YEAR ANNIVERSARY

(chart in millions)

Dreamworks

Walt Disney

Operations

Investing

Financing

Net cash provided by Financing

Other financing activities

Stock Options

Common stock repurchased

Dividends

Debt repayment

Debt issued

Net cash used for Investing

Sales Investments and Acquistions

Total Investments and Acquistions

Net cash provided by Operations

Net Income

10,500
8,500
6,500
4,500
2,500
500
(1,500)
(3,500)
(5,500)
(7,500)

Dorsey Lawrence

Newsletter Volume THREE

LOOKING TO THE FUTURE

DREAMWORKS ANIMATION SKG, INC.
20 YEAR ANNIVERSARY

http://financials.morningstar.com/incomestatement/is.html?t=DWA&region=usa
&culture=en-US
http://thewaltdisneycompany.com/sites/default/files/reports/q4-fy14-earnings.pdf
http://www.forbes.com/sites/davidkudla/2013/07/10/dreamworks-diversification-is-aplus-for-investors/
http://ir.dreamworksanimation.com/investor-relations/press-releases/press-releasedetails/2014/DreamWorks-Animation-Reports-Third-Quarter-2014-FinancialResults/default.aspx

DREAMWORKS
ANIMATION
SKG. INC.
(818) 695-5000
Campanile Building
1000 Flower Street
Glendale, California 91201