Premier Exhibitions Inc · OTC:PRXIQ
Premier Exhibitions — Investor Day (January 2010)
54 slides from Premier Exhibitions's investor day presentation, Jan 20, 2010
Slide 1: Welcome to Premier Exhibitions Investor & Shareholders Day
Premier Exhibitions, Inc. Investor & shareholders Day Las Vegas, Nevada January 20, 2010 P Welcome to
Slide 2: Forward Looking Statements
2 of 51 Forward Looking Statements As usual, we will make statements during the presentation which are forward looking. Our 10Ks, 10Qs and other SEC documents outline the risks associated with these statements and we encourage you to review them. We also incorporate non-GAAP financial measures in th
Slide 3: Contents
contents Overview Financial Analyses Revenue Architecture Exhibition Offering Branding Initiatives Marketing Initiatives Digital Strategy New Content Question & Answer Session
Slide 4: Overview
Overview
Slide 5: Premier's Unique Opportunity
5 of 51 Overview Premier's Unique Opportunity Regain financial footing Increase shareholder value Reestablish position as market leader Key Attributes Unique assets Talented / passionate staff Reputation as innovator Key marketplace relationships Overview
Slide 6: Progress Towards Restructuring
6 of 51 Overview Progress Towards Restructuring Operational Stabilization Revenue Architecture Infrastructural Rationalization Repairing Relationships Assessing Existing Property Pipeline Addressed/Resolved Legacy Issues Capitalization Strategic Relationship Considerations Overview
Slide 7: Critical Assessment of Properties/Processes
7 of 51 Overview Critical Assessment of Properties/Processes Product Presentation Market Facing Activities Brand Extensions New Content Development Overview
Slide 8: Evaluation Conclusions
8 of 51 overview Evaluation Conclusions Underinvestment in core business Early success drivers no longer available Historical approach and processes ineffective Solutions/opportunities abound for improvement Strategic and Operational Initiatives Priorities Detailed action plans Functional coordinati
Slide 9: Financial Analysis
Financial Analysis
Slide 10: BODIES: Monthly Average Attendance Per Show
10 of 51 BODIES: Monthly Average Attendance Per Show Promoter Permanent Self Ops Museum 10 2 10 2 12 3 7 10 10 3 2 1 Number of Shows Financial Analysis YTD
Slide 11: Titanic: Monthly Average Attendance Per Show
11 of 51 Titanic: Monthly Average Attendance Per Show Museum Permanent Promoter Self-op 9 1 3 1 9 1 3 1 5 1 5 Number of Shows Financial Analysis YTD
Slide 12: Marketing spend versus Average Ticket Price
12 of 51 Marketing spend verses Average Ticket Price (ATP) '08 '09 '10 YTD '08 '09 '10 YTD '08 '09 Promoters Permanent Self-ops $8.73 $11.23 $6.49 $4.47 ATP Financial Analysis
Slide 13: Marketing spend versus Average Ticket Price
13 of 51 Marketing spend verses Average Ticket Price (ATP) '08 '09 YTD '08 '09 '10 YTD '08 '09 '08 '09 '10 YTD Promoters Museums Self-ops Las Vegas $11.87 $6.13 $8.02 $7.77 $5.57 ATP Financial Analysis
Slide 14: Daily attendance BODIES
14 of 51 Daily attendance Bodies (inset Black = Seattle) Break-even Cumulative attendance from day 1 for all BODIES shows from FY 09 to currently open Financial Analysis
Slide 15: Exhibition Revenue Trend
15 of 51 Exhibition Revenue Trend Admissions Current period Licenses Future period Licenses Financial Analysis
Slide 16: How we measure progress
16 of 51 How we measure progress Attendance per venue operating days Efficient operation - utilization Controlling costs - now focused on G&A Cash from Operations Financial Analysis
Slide 17: Attendance per day
17 of 51 Attendance per day Total tickets torn Divided by the number of days open 1,314 1,164 1,106 843 951 704 589 757 735 808 602 Average daily attendance per show Financial Analysis
Slide 18: Optimal days for one show
18 of 51 Optimal days for one show Productivity of the shows we have If we are configured to run 21 shows simultaneously What is the optimal amount of operating days? Typical show is in one place for six months During one year, two shows, but down time Tearing down/loading out/maintenance In transit
Slide 19: Calculating Utilization
19 of 51 Calculating Utilization Number of days open/operating Divided by maximum theoretical days to operate Requires knowing current capacity Financial Analysis Shows on tour simultaneously
Slide 20: Fluctuating Gross Profit Margins
20 of 51 Fluctuating Gross Profit Margins Financial Analysis
Slide 21: Revenue Architecture
Revenue Architecture
Slide 22: Revenue Architecture
22 of 51 Revenue Architecture Historical Approach Reactionary Operating Procedure Minimal Assessment of Markets and Venues Strained Third-Party Promoter Relationships Looking Forward or New Process Functional Group Coordination Critical Assessment of Markets and Venues Enhanced Lead Time Revenue Arc
Slide 23: Revenue Architecture: Looking Forward (cont'd)
23 of 51 Revenue Architecture Looking Forward or New Process (cont'd) Outreach To Key Constituencies Assessment of Third-Party Resources Comprehensive Financial Assessment Progress To Date Majority of Shows Booked Successful Engagement of Potential Opponents Improved Third-Party Relationships More E
Slide 24: Exhibition Offering
Exhibition Offering
Slide 25: Exhibition Offering: Current Presentation
25 of 51 Exhibition Offering Current Presentation Effective Historically Based upon object-based museum-style design Lack of evolution to match consumers' expectations Saturation of Distribution Channels Titanic, Science Museums BODIES, fierce competition Recognized need to reinvigorate the Exhibiti
Slide 26: BODIES Critical Review and Assessment
26 of 51 Exhibition Offering BODIES Critical Review and Assessment Design and Guest Experience Core Business Units Key Findings Opportunities Exhibition Offering
Slide 27: Creative Development Design + Guest Experience
27 of 51 Creative Development Design + Guest Experience Exhibition Offering
Slide 28: Core Business Units
28 of 51 CORE BUSINESS UNITS Insight: Guest experience Med, Ed + beyond: Professional + social groups Events + PR+ Promo: Tell a story Partnerships: Big + small Forward thinking: More good stuff Exhibition Offering
Slide 29: Key Findings
29 of 51 KEY FINDINGS Design Messaging Exhibition Offering
Slide 30: Business Opportunities
30 of 51 BUSINESS OPPORTUNITIES Consumer Engagement Buzz Ambassadors Affiliations PR Profitability Exhibition Offering
Slide 31: Re-design Efforts
31 of 51 Re-design Efforts Initial re-design efforts Seattle Dallas Exhibition Offering
Slide 32: Titanic Property Re-launch
32 of 51 Titanic Property Re-launch Current design The current design of Titanic uses artifacts and room recreations to tell her chronological story. Launched in Greenwich England in 1993 Currently 7 Titanic Exhibitions Over 22 million visitor's world wide Over 19 countries Over 75 cities Over 12 ma
Slide 33: Titanic Property Re-launch: Product Review
33 of 51 Titanic Property Re-launch Product Review Implemented by new management Consisted of internal and external experts Historical, subject, entertainment perspective Redesign Team Premier's team along with museum, design, architecture, and movie professionals Goals Critical Evaluation Apply Mar
Slide 34: Titanic Re-launch Advisory Board
34 of 51 Titanic Re-launch Advisory Board 15 members from leading museums and entertainment companies Goals Review current state of exhibition Gain Broader Perspective Develop New Initiatives Conclusions Brand vision Design Mission Exhibition Offering
Slide 35: Titanic Litigation
35 of 51 Titanic Litigation We have recovered approximately 5000 artifacts from the Titanic wreck site What are possible outcomes of our motion for salvage award? We own the 1987 Artifacts The federal court in Norfolk, Virginia has control over the over the post-1987 artifacts. Exhibition Offering
Slide 36: Titanic Litigation: What happened in October?
36 of 51 Titanic Litigation What happened in October? Why we were in front of the court? What's next for the court? We do not know when the Court will rule Exhibition Offering
Slide 37: Branding Initiatives
Branding initiatives
Slide 38: Poor Marketing Has Limited Premier's Growth
38 of 51 Poor Marketing Has Limited Premier's Growth Historical Approach Leaned on sensationalism Announcement marketing Quick to market The problem: continued approach far too long Costly generic campaigns Little to no time to create excitement Limited outreach programs No consumer knowledge Brandi
Slide 39: Building a Strong Marketing Machine
39 of 51 Building a Strong Marketing Machine Initiatives Identify and profile current visitors Build a database of visitors and potential visitors Identify non-visitor profiles Brand strategy development for Premier and all brand properties Leverage digital marketing Design a better approach to mark
Slide 40: Process towards growth
40 of 51 Process towards growth Good consumer data Good marketing planning Good market data Tracking success Learn and optimize Branding Initiatives
Slide 41: Marketing Initiatives
Pecticr e is Marketing Initiatives
Slide 42: New Marketing Approach
42 of 51 New Marketing Approach Lowering Acquisition Costs Media Sponsorships: Capitalizing on "soft" media opportunities "Phasing" campaigns: Pre-opening Opening Transitional Campaign Final Weeks Marketing Initiatives
Slide 43: Las Vegas Marketing Example
43 of 51 Las Vegas Marketing Example Changed creative Changed the media mix Invest in more solid advertising vehicles (outdoor) Increased online expenditure 0% to 15% - capturing tourists before they came to Vegas Marketing Initiatives
Slide 44: Digital Strategy
Digital Strategy
Slide 45: Digital Strategy
45 of 51 Digital Strategy What is a digital strategy? How does it provide value to organizations? Digital Strategy Awareness Consideration Attendance Loyalty Advocacy Consumer Purchasing Funnel Deeper levels of engagement
Slide 46: Digital Strategy: Situation analysis
46 of 51 Digital Strategy Situation analysis Current state of digital at Premier Target audiences Awareness focus Titanic: A global brand Revenue streams Visitor experience Digital Strategy
Slide 47: Digital Strategy: Opportunity for Premier
47 of 51 Digital Strategy Opportunity for Premier Exploit the digital channel to achieve critical business objectives Strategy Leverage the digital channel to transform Premier Develop visitor relationships Increase revenue Create community Measure and optimize Digital Strategy
Slide 48: New Content
New Content
Slide 49: New Content
49 of 51 New Content Historical Approach Intuitive Selection Limited Identification and Development Process No Research Conducted Minimal Financial Assessment Looking Forward Research Concept Viability Financial Model Assessment Resource Identification and Activation Clear Development and roll-out t
Slide 50: Q & A Session
Q & A Session
Slide 51: Financial Appendix
Financial Appendix
Slide 52: Non-GAAP Measure
52 of 51 Non-GAAP Measure This presentation contains certain financial measures that are not prepared in accordance with GAAP (generally accepted accounting principles in the U.S.). Such financial measures are referred to herein as "non-GAAP" and are presented here in accordance with Regulation G as
Slide 53: Eleven Quarter Financial Analysis (Page 1 of 2)
Eleven Quarter Financial Analysis (Page 1 of 2) 53 of 51
Slide 54: Eleven Quarter Financial Analysis (Page 2 of 2)
Eleven Quarter Financial Analysis (page 2 of 2) 54 of 51