39 slides from Pursuit Attractions And Hospitality's investor presentation, Aug 24, 2015
Slide 1: Investor Presentation August 2015
INVESTOR PRESENTATION ay AUGUST 2015
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMEN ‘As provided by the safe harbor provision under the Private Securities Litigation Reform Act of 1995, Viad cautions readers that, in addition to historical information contained herein, this press release includes certain information, assumptions and discussions that may con
Slide 3: Introduction to Viad
INTRODUCTION TO VI. Viad is a SmallCap 600 company with two business groups and a clear strategy for growth and shareholder value 2014 REVENUE $1.18 11% ADJUSTED SEGMENT EBITDA? $91.3M 40% TRAVEL & RECREATION EM&E BT&R 1 Areconciliation of this non-GAAP measure to segment operating income can be fou
Slide 4: Focused on Shareholder Value
FOCUSED ON SHAREHOLDER VALUE LONG HISTORY OF STRATEGIC DIVESTITURES* Over the last 30 years, Viad has spun-off or sold more than 20 lines of business, including: shares repurchased for $14.9M through 6/30/15) 1987 1992 1993 1996 1997 |i999 1999 lz004 Greyhound The FINOVA Motorcoach |The Dial Premier
Slide 5: Strong Earnings Growth and Cash Generation
VIA STRONG EARNINGS GROWTH AI CASH GENERATION 5 Viad’s strong earnings growth and cash generation allow for reinvestment in the business and return of capital to shareholders Income Before Other Items Per Share* 1.75 2010 - 2014 Cash Generated > $ 211M from Operations Reinvestment > $288M 0.09 Sc —
Slide 6: Marketing & Events Group (GES)
MARKETING & EVENTS GROUP (GES) ian Global Experience Specialists a
Slide 7: Growth Strategy
GROWTH STRATEGY Establish GES as the Preferred Global, Full-Service Provider for Live Events Addition of adjacent services creates a unique, integrated offering to deepen client relationships, expand client base and increase share of total event spend Customer consolidation and continued global expa
Slide 8: Global Reach with Significant Opportunity for Growth
BAL REACH WITH SIGNIFICANT OPPORTUNITY FOR GROWTH. 8 GES holds a leading position delivering its Core Services to the Exhibitions segment of the market and is expanding into other Live Events segments and New Services ESTABLISHED POSITION? IN KEY GLOBAL 9 | Us UK Leveraging global capabilities and C
Slide 9: GES Has Blue Chip Clients Across All Four Live Event Segments
LIVE EVENTS: GES HAS BLUE CHIP CLIENTS ACROSS ALL FOUR SEGIMET Industry leaders already select GES in every Live Event segment | ee | eee ome D@LL “Disney Micresoft unepsat \F WConieence | | MARY KAY || SONY GES 2014 REVENUE MIX Via
Slide 10: Full-Service Provider: Increasing Competitiveness and Differentiation
FULL-SERVICE PROVIDER: INCREASING COMPETITIVENESS AND DIFFERENTH GES has made significant progress creating the most comprehensive suite of services for the live events industry Completed 4 strategic acquisitions during Sept-Nov 2014 KEY SERVICES REQUIRED BY CLIENTS Core Services: Contracting Servic
Slide 11: GES Acquisitions Are Driving Results and Delivering Value
GES ACQUISITIONS ARE DRIVING RESULTS AND DELIVERING VALUE Acquisitions bring attractive margins and revenue synergies i f $113M Price of $113 18% AveRAGE IRR? ADJUSTED Aggregate purchase » $16.5M - $17.5M EBITDA? in 2015 (estimate) ATTRACTIVE MARGINS LARGE CROSS SELL OPPORTUNITY 9% of GES contractin
Slide 12: GES Is Driving Profitable Growth
GES IS DRIVING PROFITABLE GROWTH 12 By positioning GES as the preferred global, full-service provider for live events, we are driving growth in higher-margin service lines, increasing our share within the live events market and differentiating GES to enhance customer loyalty Revenue ADJUSTED EBITDA!
Slide 13: Travel & Recreation Group (T&R)
TRAVEL & RECREATION GROUP (T&R) Brewster Travel Canada Glacier Park, Inc. Alaska Denali Travel eh BN
Slide 14: Driving Growth in High Value Areas
DRIVING GROWTH IN HIGH VALUE AREAS 14 T&R strategically invests in hospitality and attractions, which have highest margins and strong return on investment 14.5% CAGR Asset Management Initiatives REFRESH assets to optimize market position and maximize returns Revenue ($M) 121 13% cacr Attractions BUI
Slide 15: Powerful New Experiences Driving Powerful Returns
15 : POWERFUL NEW EXPERIENCES DRIVING POWERFUL The Glacier Skywalk secured significant return on investment, surpassing attendance expectations, and receiving international awards and media coverage ~$20M ~300k $4.5. Meera 201 INVESTMENT VISITORS >90% irv in first year Glacier Skywalk Extensive Jasp
Slide 16: Attractions Drive Growth in Markets with Perennial Demand
ATTRACTIONS DRIVE GROWTH IN MARKETS WITH PERENN| T&R’s attractions have strong financial performance and create cross-selling opportunities. In addition to surpassing forecasts, the new Glacier Skywalk has helped lift visits to the Glacier Adventure on the Columbia Ice Field All comparisons are 2014
Slide 17: Buy: Proven Track Record of Returns on Acquisitions
BUY: PROVEN TRACK RECORD OF RETURNS ON ACQUISITIO! 5 ACQUISITIONS FoR $81M > ape EBITDA in 2014 Yo AVERAGE IRR’ January September July 2011 2011 2014 Glacier National Park Denali National Park Glacier National Park Grouse Mountain Lodge Alaska Denali Travel West Glacier Properties Year-round hotel i
Slide 18: Hospitality: Revenue Growth Outpaces Room Count
HOSPITALITY: REVENUE G! H OUTPACES ROOM C We have successfully pursued scale and enhanced performance in our hospitality operations # of Hotel Rooms? 2014 vs. 2010+ 133% 175% GLACIER INCREASE IN INCREASE IN PARK ROOM COUNT REVENUE + Reflects continuing operations. Including discontinued operations,
Slide 19: Continued Opportunity to Scale Business
CONTINUED OPPORTUNITY TO SCALE BUSINESS 19 There is opportunity to increase market share, to further scale and leverage capabilities BANFF / JASPER MARKET. Town of Banff Jasper Lake Louise Icefields Parkway TOTAL GLACIER NATIONAL PARK MARKET Whitefish Glacier NP Glacier NP East Gateway Communities W
Slide 20: Summary
SUMMARY
Slide 21: Viad Opportunity Summary
VIAD OPPORTUNITY SUMMARY Viad is in a strong position to enhance shareholder value STRENGTH TWO SOLID BUSINESS GROUPS | Strong, proven | foundation + Leading and defensible market positions + Recurring revenue streams + Strong and improving results with strong balance sheet a) WELL-DEFINED GROWTH ST
Slide 22: Active Acquisition Pipeline
ACTIVE ACQUISITION PIPELINE 22 Viad has a disciplined and proactive acquisition program focused on proprietary deal-sourcing in support of our business unit strategies to drive shareholder value FIT + Products and services that are essential _scale and scope but consider new to Live Events while als
Slide 23: Appendix
APPENDIX
Slide 24: Viad Summary Income Statement Data
VIAD SUMMARY INCOME STATEMENT DATA 6/30/2014 6/30/2015 !mitions (except per shore amounts), 2010 201120122013 2014 YoY Revenue: Marketing & Events Group $ 7565 $ 8406 $ 9020 $ 8449 $ 945 $ SOLA $ 5435 Travel & Recreation Group 70.0 87.2 1046 108.4 1205, 376 37.9 $8265 $ 78 $ 10066 $ 9533 $ 10650 _$
Slide 25: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This document includes the presentation of “income Before Other Items”, “Adjusted Segment Operating Income” and “Adjusted ‘Segment EBITDA”, which are supplemental to results presented under accounting principles generally accepted in the United States of America (“GAAP”)
Slide 26: Non-GAAP Financial Measures, Continued
NON-GAAP FINANCIAL MEASURES, CONTINUED 26 INCOME BEFORE OTHER ITEMS. Income BEFORE OTHER TEMS INCOME BEFORE OTHER TEMS PER SHARE tons scepter store onoun) zoro 20120122013 2014 zo 201120122013 2018 Income om Continuing Operations AtributbletoViad —«$«(LB)$ TH $ | -33-$ 194 $ 408 (009) $ 036 $ 017 $
Slide 27: Non-GAAP Financial Measures, Continued
NON-GAAP FINANCIAL MEASURES, CONTINUED INCOME BEFORE OTHER ITEMS INCOME BEFORE OTHER INCOME BEFORE OTHER res TEMS PER SHARE 6/30/2014 6/30/2015 6/30/2014 6/30/2015 tions xcept sareomounts) vo yro vio vio Income from Continuing Operations Attributable to Viad S173 $ 24 $085 $102 Other items (after-ta
Slide 28: Non-GAAP Financial Measures, Continued
NON-GAAP FINANCIAL MEASURES, CONTINUED [EBITDA FROM ACQUISITIONS and THE GLACIER SKYWALK ‘Year Ended December 31,2014 [MARKETING & EVENTS GROUP TRAVEL & RECREATION GROUP tons Acquisitions’ Allother——Total_—eguistons* SESE other Tout MAO TOTAL Segment OperatingIncome(toss) “$ 18 § shy $79 5 39 3 toa
Slide 29: Marketing & Events Group Key Metrics
MARKETING & EVENTS GROUP KEY METRICS US BASE SAME-SHOW GROWTH?! 2014 GEOGRAPHIC REVENUE MIX 11.2% 2010 201120122013. 2014 6/30/14 6/30/15 yro__yrD mUS EMEA mCanada SHOW ROTATION? Millions $50-$60 $15 $16 $(26) $(48) $(70) 2011 2012 2013 2014 2015 2016 6/30/34 6/30/35 (est) (est) YD YID RECURRING & D
Slide 30: Significant Opportunity for Growth
SIGNIFICANT OPPORTUNITY FOR GROWTH 30 GES holds a leading position delivering its Core Services to the Exhibitions segment of the market and is expanding into other Live Events segments and New Services. LIVE EVENTS SEGMENTS SERVICES OFFERED Audio-Visual 4% 1% Registration GES 2014 7, 6% GES 2015 3%
Slide 31: Strategic Acquisitions: Technology, Synergy, Cross-Sell and Data
STRATEGIC ACQUISITIONS: TECHNOLOGY, SYNERGY, CROSS-SELL AND: The strategic fit of GES acquisitions brings immediate and long-term value Best-in-Class Position Cross-Sell Across Assets Assets form Basis for Data Platform + Travel Planners, also acquired by Viad, was merged into onPeak. ap ONPEAK N200
Slide 32: onPeak/Travel Planners — Acquired October 7, 2014
ONPEAK/TRAVEL PLANNERS — ACQUIRED OCTOBER 7, 2014 FO! [ MARKET ] [ COMPANY OVERVIEW ] U.S, EVENT YEARS IN BUSINESS: 25+ Each (onPeak & Travel Planners) ACCOMMODATIONS ~$100M as ADDRESSABLE MARKET: KEY FACILITIES: Chicago, IL; New York, NY Atlanta, GA BUSINESS & SERVICES OVERVIEW i KEY HIGHLIGHT ] *
Slide 33: onPeak/Travel Planners Integration Overview
ONPEAK/TRAVEL PLANNERS INTEGRATION OVERVIEW 33 [ MERGER OVERVIEW ] Unique opportunity to acquire the The Majori fF 1 two largest event accommodations The Major puceeed firms and consolidate onto the industry's leading platform Next largest serves 7% [ REVENUE OPPORTUNITIES ] [ GROWTH OPPORTUNITIES ]
Slide 34: Blitz — Acquired September 16, 2014 for £15M
LITZ — ACQUIRED SEPTEMBER 16, 2014 FOR £15M ($24.4) { MARKET ] [ COMPANY OVERVIEW ] . > YEARS IN BUSINESS: 25+ EN $250M KEY FACILITIES: Manchester, UK London, UK [ BUSINESS & SERVICES OVERVIEW ] [ KEY HIGHLIGHT ) © Company Description: Blitz Communications is an AV staging and creative services prov
Slide 35: N200 — Acquired November 24, 2014 for €9.7M
N200 — ACQUIRED NOVEMBER 24, 2014 FOR €9.7M ($12.1M) 35 [ MARKET ] [ COMPANY OVERVIEW ] UK/EUROPE m7 Ey YEARS IN BUSINESS: 20+ MARKET SIZE: KEYFACILITIES: Watford, UK Haarlem, The Netherlands [ BUSINESS & SERVICES OVERVIEW I KEY HIGHLIGHTS ) © Company Description: N200 is a technology-based provider
Slide 36: Travel & Recreation Group (T&R) Key Metrics
RAVEL & RECREATION GROUP (T&R) KEY METRICS 36 HOSPITALITY METRICS! mmERevPAR ~=-Occupancy $99 H 4 sss H : r) | i a 2011-2012, 20132014 6/30/14 6/30/15 ‘ ID yD 2014 GEOGRAPHIC REVENUE MIX m Brewster (Canada) —, Glacier Park _m Alaska Denali Travel (Montana) (Alaska) ATTRACTIONS METRICS! mm Passengers
Slide 37: T&R: Driving Growth in Markets with Perennial Demand
T&R: DRIVING GROWTH IN MARKETS WITH PERENNIAL DEMAN 37 T&R operates in and around iconic destinations: Banff & Jasper National Parks, Glacier National Park, Denali National Park — targeting 8.5+ million annual visitors Park Visitation (000) T&R consistently drives sm meaningful growth in markets wit
Slide 38: T&R Refresh: Improving Experience and Financial Returns
&R REFRESH: IMPROVING EXPERIENCE AND FINANCIAL RETU! T&R has proven success leveraging upgrades to existing assets to increase revenue at both attractions and hotels [ BANFF GONDOLA LOWER TERMINAL ] [ GROUSE MOUNTAIN LODGE ] $1.3M $0.8M incrementar $3.3M bas UPGRADE RETAIL REVENUE! UPGRADE 3 8% REVP
Slide 39: T&R Package Tours & Transportation
R PACKAGE TOURS & TRANSPORTATION T&R offers packaged tours and transportation services that drive visitation and revenue to its higher-margin hotels and attractions [ PACKAGED TOURS. ] [ TRANSPORTATION ] Includes in-bound packages Over 100,000 consumer +) throughout Canada and EES contact points > "