Slide 1: Investor Presentation December 2011
INVESTOR December 2011 Exhibit 99.1 PRESENTATION
Slide 2: Safe Harbor
2 Safe Harbor Forward-Looking Statements. This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on management’s expectat
Slide 3: Basis of Presentation
3 Basis of Presentation The operating results for Expedia, Inc. within this presentation exclude segment results for the TripAdvisor Media Group (“TripAdvisor”) unless otherwise noted. Expedia allocates certain expenses, such as stock-based compensation and amortization of intangible assets, to its
Slide 4: Transaction Summary
4 0.6 Billion 324 Million TTM 1 3Q 2011 REVENUES 3.4 Billion TTM 3Q 2011ADJUSTED EBITDA 2,3 683 Million Transaction Summary IS SPINNING OFF the Portfolio of Travel Media and Content Sites within the TripAdvisor ® Media Group $ $ TTM = Trailing Twelve Months See Appendix A for Non-GAAP to GAAP Reconc
Slide 5: Investment Highlights
5 Global Leader in ~$1 Trillion Market with Strong Offline-to-Online Trends Significant Growth Opportunities Across Geographies Rapid Expansion in Highly Fragmented Hotel Industry Technology Platform Investment and Innovation Driving Higher Conversion Success in New Distribution Channels, e.g. Mobil
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Slide 9: Trusted Brands
Trusted Brands Sites in 39 Countries A Leader in Global Corporate Travel Established Brands with Global Reach 76 Sites in 67 Countries A Leading Hotel Specialist Globally 26 Sites in 26 Countries #1 Online Travel Agency 10,000 Affiliates in 33 Countries “Expedia Inside” Private Label Solutions Trust
Slide 10: Business Mix Transformation Positions Us for Growth
8 Revenue 5 Years Ago Revenue Today Business Mix Transformation Positions Us for Growth Note: 5 Years Ago = 2005 Revenues; Today = TTM ending September 30, 2011 Revenues
Slide 11: Expedia Well-Positioned to Capture Significant Global Growth Opportunity
9 Expedia Well-Positioned to Capture Significant Global Growth Opportunity Sources: PhoCusWright estimates and Expedia data Note: EXPE share of travel market defined by TTM gross bookings as of September 30, 2011. APAC data includes gross bookings from AirAsia joint venture
Slide 12: Asia – Investing for Growth
10 Key Assets Asia – Investing for Growth Key Assets 14 Sites in 13 Asian Countries — 5 Launched Since 2009 Powers Important Asian Brands, e.g. JALAN: One of Asia’s Leading Travel Sites 64% Ownership in #2 Chinese Online Travel Agency Partnership with Asia’s Leading Low Cost Carrier + Includes Gross
Slide 13: TripAdvisor
‘tripadvisor $20,000 176,000 F 2 145.000 | ial 88.000
Slide 14: Egencia
EGENCIA ee eo
Slide 15: Technology Investment Positions Us for Growth
13 Technology Investment Positions Us for Growth Hotels.com Gross Bookings growth does not include Venere
Slide 16: Venere
| VBORO®D SS ®
Slide 17: Opening Up Significant Opportunity in Mobile Travel
15 Opening Up Significant Opportunity in Travel of Mobile Bookings Completed within of Travel / Stay in App Development in App Success in Deals … Expedia Leads the Way The World Is Changing … Unique Supply Deal and Value Proposition to Customers: Just for Mobile Opening Up Significant Opportunity in
Slide 18: Expedia's Significant Competitive Moats
16 SCALE and BREADTH Global Scale Across Multiple Travel Brands and Product Offerings DIVERSE DEMAND Multiple Sources Leisure Corporate Call Centers Traditional Travel Agency Online SUPPLY Global Travel Supply Footprint and Deeper Supplier Relationships TECHNOLOGY PLATFORM Investment in Technology t
Slide 19: Experienced Leadership Team with Deep Industry Knowledge
17 Dara Khosrowshahi 6 Years at Expedia Mark Okerstrom 5 Years at Expedia Barry Diller 16 Years at IAC/Expedia Experienced Leadership Team with Deep Industry Knowledge Dara Khosrowshahi Chief Executive Officer and President Mark Okerstrom Chief Financial Officer Barry Diller Senior Executive
Slide 20: Financials
18 FINANCIALS
Slide 21: Key Financial Highlights
19 Large User Base With Multiple Growth Vectors High Quality Diversified Revenue Streams Consistent, Robust Cash Flow Generation and Strong EPS Growth Strong Balance Sheet Allows Ample Value-Add Opportunities Large User Base With Multiple Growth Vectors Key Financial Highlights High Quality Diversif
Slide 22: Gal il l
$26.0B , $26.48 Gal il l ae 208 som S77, $683M g - $623M — $620M i la 0 oe ee i ll = eee eee + Gil = 2 ea 2S 2 ROH if i
Slide 23: High Quality, Diversified Revenue Weighted Towards Growth
21 High Quality, Diversified Revenue Weighted Towards Growth Other Leisure includes Classic Vacations, Expedia Local Expert and CruiseShipCenters Hotels.com includes Venere
Slide 24: The Three Stages of Expedia Growth
22 The Three Stages of Expedia Growth STAGE 1 2010 STAGE 2 2011-2012 STAGE 3 2013 Revenue Growth Modest: 6.1% Growth ¹ Accelerating Continuing Line Item Trajectory (% of Revenues) Cost of Revenue 22.5% Flat as % of Revenue Declining as % of Revenue Selling and Marketing 40.3% Increasing as % of Reve
Slide 25: Understanding Expedia's Seasonality
23 Understanding Expedia’s Seasonality QUARTERLY REVENUE AND ADJUSTED EBITDA CONTRIBUTION Quarterly Adjusted EBITDA % of Total Annual Adjusted EBITDA Quarterly Revenue % of Total Annual Revenue 2009 Quarterly Adj. EBITDA Margin: Quarter as % of Total Year 1Q 18% 2Q 26% 3Q 28% 4Q 23% 1Q 15% 2Q 23% 3Q
Slide 26: Annual Free Cash Flow Between $300M and $600M
24 Annual Free Cash Flow Between $300M and $600M $ Millions 2008 2009 2010 TTM 3Q11 Capex $142 $78 $136 $195 Capex (% of Revenue) 5.2% 2.8% 4.5% 5.7% Share Repurchases $ – $ – $489 $306 Dividend Payment – – Acquisitions & Other Investments ¹ Cash Interest Paid ³ Consistent, Robust Cash Flow Availabl
Slide 27: Expedia Pro Forma Capitalization
25 Expedia Pro Forma Capitalization $ Millions AS OF 9/30/2011 PF 9/30/2011 Cash, Cash Equivalents & Short Term Investments 1 $2,006 $1,842 Revolving Credit Facility 2 – – 5.950% Notes Due 2020 3 7.456% Notes Due 2018 8.500% Notes Due 2016 – Total Debt $1,645 $1,249 Net Debt $(361) $(593) TTM Adjust
Slide 28: Summary
26 Global Leader in ~$1 Trillion Market with Strong Offline-to-Online Trends Significant Growth Opportunities Across Geographies Rapid Expansion in Highly Fragmented Hotel Industry Technology Platform Investment and Innovation Driving Higher Conversion Success in New Distribution Channels, e.g. Mobi
Slide 29: Appendices
27 APPENDICES
Slide 30: Adjusted EBITDA Reconciliation
28 $ Millions 2007 2008 2009 2010 TTM ENDING 9/30/2011 Trip Adv. Expe. Inc. ² Total Trip Adv. Expe. Inc. ² Total Trip Adv. Expe. Inc. ² Total Trip Adv. Expe. Inc. ² Total Trip Adv. Expe. Inc. ² Total Adjusted EBITDA $623 $619 $659 $677 $324 $683 $1,007 Depreciation OIBA ¹ $104 $565 $669 $150 $548 $6
Slide 31: Adjusted Net Income Reconciliation
29 $ Thousands 2007 2008 2009 2010 TTM ENDING 9/30/2011 Net Income / (Loss) from Continuing Operations $241,968 $(2,340,174) $214,406 $302,251 $323,575 Stock-Based Compensation 59,948 55,731 55,756 52,507 50,728 Amortization of Intangibles 68,367 58,275 23,875 22,514 23,148 Restructuring Charges - -
Slide 32: Appendix C: Non-GAAP Expense Items
30 $ Thousands 2010 TTM ENDING 9/30/11 Cost of Revenue $685 $752 Stock-Based Compensation (2) (3) Cost of Revenue ex. Stock-Based Compensation $683 $749 Selling and Marketing $1,235 $1,444 Stock-Based Compensation (14) (14) Selling and Marketing ex. Stock-Based Compensation $1,221 $1,430 Technology