Exhibit 4 Pixar Financials ($ millions)

1,994 1,995 1,996 1,997 1,998 1,999 2,000 2,001 2,002

Revenues
Software 3.3 3.1 3.3 4.5 3.8 5.7 9.1 6.9 8.1
Animation Services 2.3 2.5 3.9 1.6 0.6 0.9 0.8 0.0 0.0
Film 0 0 18.8 26.9 9.8 114.4 162.3 63.4 193.6
Patent Licensing 0 6.5 9.1 1.7 0.1 0.0 0.0 0.0 0.0
Total Revenues 5.6 12.1 35.2 34.7 14.3 121.0 172.3 70.2 201.7
Costs
Software 1.2 0.5 0.1 0.1 0.7 0.7 0.6 0.5 0.5
Animation Services 2 1.9 3 1 0.1 0.5 0.4 0.0 0.0
Film 0 0 1.6 1.5 0.0 30.5 36.0 11.8 41.0
Total Costs 3.1 2.4 4.7 2.5 0.9 31.7 37.0 12.3 41.5
Operating Expenses
Research and Development
2.3 4.1 3.2 4.7 3.9 6.3 5.6 6.3 8.5
Sales and Marketing 2.2 1.6 1.5 1.5 1.3 1.5 1.6 2.0 1.3
eneral and Administrative 0.8 3 4.2 5.1 7.0 7.0 7.7 8.1 9.7
Expense Reimbursement 0 0 0 -2.2 0.0 0.0 0.0 0.0 0.0
otal Operating Expenses 5.3 8.7 8.9 9.1 12.1 14.8 14.9 16.4 19.5
m Continuing Operations -2.8 1 20.3 23.1 1.3 74.5 120.4 41.5 140.7
Other Income, Net 0.5 0.7 8 8.8 8.8 7.5 13.0 14.4 10.3
Income Taxes 0 -0.1 -2 -9.9 -2.6 -32.9 -55.4 -19.9 -61.1
m Continuing Operations -2.4 1.6 26.3 22 7.5 49.1 78.0 36.0 89.9
Net Income -2.4 1.6 25.3 22.2 7.8 49.2 78.4 36.2 89.9
 709-462 -16-

2,003 2,004
Growth Rate Historical %
12.1 12.6 Revenues (2000-2005) 9.68%
0.0 0.0
250.4 260.8
0.0 0.0
262.5 273.5

0.0 0.0
0.0 0.0
38.0 29.9
38.1 29.9

15.3 17.4
2.4 2.5
12.8 15.0
0.0 0.0
30.5 34.9
193.3 208.7
10.5 12.4
-79.7 -79.4
124.8 141.7
124.8 141.7
 Pixar and Disney Break Dow
Pixar and Disney Break Down using estimates of Incredibles ($ million)
Worldwide Box Office
Domestic B 250 Worldwide B
Internation 300 Domestic B
Total Theat 550 Internation
Theatrical 263 Total Theat
Marketing a 105 Theatrical
Disney Dist 37 14.00% 241 Marketing a
Net Revenu 121 Disney Dist
Production 24 Net Revenu
Profit to P 97 Production
Pixar Reve 61 Profit to Pa
Pixar Total 49 Pixar Reve
As % of Tot 40% Pixar Total
Disney Tota 85.41 As % of To
As% of Tot 70% Disney Tota
As% of Tot
World Wide Home Entertainment
Home Video Sales World Wide Home
Sales 551 Home Video Sales
Less Costs 109 Sales
Gross Profi 442 Less Costs
Marketing a 106 Gross Profi
Disney Dist 77 Marketing a
Net Revenu 259 Disney Dist
Production 52 Net Revenu
Partners I 207 Production
Pixar Reve 129 Partners I
Pixar Home 103 Pixar Reve
Disney Hom 181 Pixar Home
Disney Hom
Worldwide PPV and Pay TV Sales
Sales 33 Worldwide PPV an
Disney Dist 5 Sales
Net Revenu 28 Disney Dist
Production 5 Net Revenu
Partners I 23 Production
Pixar Reve 14 Partners I
Pixar Inco 12 Pixar Reve
Disney Inc 16 Pixar Inco
Disney Inc
World Wide Free TV Sales
Sales 29 World Wide Fre
Disney Dist 4 Sales
Net Revenu 25 Disney Dist
Production 5 Net Revenu
Partner In 20 Production
Pixar Reve 12 Partner In
Pixar Inco 10 Pixar Reve
Disney Inc 14 Pixar Inco
Disney Inc
Worldwide Merchandising Royalties
Revenue 55 Worldwide Merchan
Disney Dist 7 Revenue
Net Revenu 48 Disney Dist
Production 10 Net Revenu
Partner In 38 Production
Pixar Reve 24 Partner In
Pixar Inco 19 Pixar Reve
Disney Inc 26 Pixar Inco
Disney Inc

Total
Pixar Reve 241 Tota
Pixar Tota 193 Pixar Rev
As a % of t 37% Pixar Tota
Disney Tot 322 As a % of
As a % of t 63% Disney To
As a % of
Pixar and Disney Break Down using estimates of Incredibles ($ million)

Co-production Pixar
Worldwide Box Office
250 250
300 300
550 550
263 263
105 105
33 12.50% 21 8%
125 137
24 24
101 113
63 137
51 112.96
40% 82.48%
83.4375 21
67% 15.36%

World Wide Home Entertainment

Home Video Sales
551 551
109 109
442 442
106 106
69 44.08
267 291.92
52 52
215 239.92
134 291.92
108 239.92
176 44.08

Worldwide PPV and Pay TV Sales

33 33
4 2.64
29 30.36
5 5
24 25.36
14 30.36
12 25.36
16 2.64

World Wide Free TV Sales

29 29
 4 2.32
25 26.68
5 5
20 21.68
13 26.68
10 21.68
14 2.32

Worldwide Merchandising Royalties

55 55
7 4.4
48 50.6
10 10
38 40.6
24 50.6
19 40.6
26 4.4

Total
247 537
199 349
39% 82.40%
316 74
61% 17.60%
 Drawing from exhibit 4 and exhibit 11
Assumptions made for the case

From exhibit 4, we know that the current growth rate =

3 scenarios

Discount Rate
Growth Rate (terminal)
No. of movies (per year )

Exhibit 4 Pixar Financials ($ millions)

Revenues
Software
Animation Services
Film
Patent Licensing
Total Revenues
Costs
Software
Animation Services
Film
Total Costs
Operating Expenses
Research and Development
Sales and Marketing
General and Administrative
Operating Expense Reimbursement
Total Operating Expenses
Income from Continuing Operations
Other Income, Net
Income Taxes
Net Income from Continuing Operations
Net Income

12%
11%
10%
bit 4 and exhibit 11
de for the case

10%

Worst Case (Case1) Average (Case 2) Best Case (Case 3)

12% 11% 10%
5% 5.50% 6%
1 1.25 1.5

1,994 1,995 1,996 1,997 1,998 1,999 2,000 2,001

3.3 3.1 3.3 4.5 3.8 5.7 9.1 6.9

2.3 2.5 3.9 1.6 0.6 0.9 0.8 0.0
0 0 18.8 26.9 9.8 114.4 162.3 63.4
0 6.5 9.1 1.7 0.1 0.0 0.0 0.0
5.6 12.1 35.2 34.7 14.3 121.0 172.3 70.2

1.2 0.5 0.1 0.1 0.7 0.7 0.6 0.5

2 1.9 3 1 0.1 0.5 0.4 0.0
0 0 1.6 1.5 0.0 30.5 36.0 11.8
3.1 2.4 4.7 2.5 0.9 31.7 37.0 12.3

2.3 4.1 3.2 4.7 3.9 6.3 5.6 6.3

2.2 1.6 1.5 1.5 1.3 1.5 1.6 2.0
0.8 3 4.2 5.1 7.0 7.0 7.7 8.1
0 0 0 -2.2 0.0 0.0 0.0 0.0
5.3 8.7 8.9 9.1 12.1 14.8 14.9 16.4
-2.8 1 20.3 23.1 1.3 74.5 120.4 41.5
0.5 0.7 8 8.8 8.8 7.5 13.0 14.4
0 -0.1 -2 -9.9 -2.6 -32.9 -55.4 -19.9
-2.4 1.6 26.3 22 7.5 49.1 78.0 36.0
-2.4 1.6 25.3 22.2 7.8 49.2 78.4 36.2

1 2 3
155.9 171.5 188.6
139 137 134
124 109 96
111 87 68
 709-462 -16-

2,002 2,003 2,004 2005E 2006E 2007E Terminal YeTerminal YeTerminal YePerpetual

8.1 12.1 12.6

0.0 0.0 0.0
193.6 250.4 260.8
0.0 0.0 0.0
201.7 262.5 273.5 300.85 330.935 364.0285 382.2299 480.0626 578.8053 5460.428

0.5 0.0 0.0

0.0 0.0 0.0
41.0 38.0 29.9
41.5 38.1 29.9

8.5 15.3 17.4

1.3 2.4 2.5
9.7 12.8 15.0
0.0 0.0 0.0
19.5 30.5 34.9
140.7 193.3 208.7 229.57 252.527 277.7797 291.6687 366.322 441.6697 4166.696
10.3 10.5 12.4
-61.1 -79.7 -79.4
89.9 124.8 141.7 155.87 171.457 188.6027 198.0328 248.7198 299.8783 2829.041
89.9 124.8 141.7

NPV Calculations

Case 1 Case 2 Case 3

PV 4,577 6,989 11,308
Deal Value 7500 7500 7500
NPV -2,923 -511 3,808
Perpetual Perpetual Revue (Best case)

8728.411 14470.13

6660.4 11041.74

4522.178 7496.957