58 slides from Pursuit Attractions And Hospitality's investor presentation, Sep 22, 2021
Slide 1: Investor Presentation September 2021
Exhibit 99.1 INVESTOR PRESENTATION SEPTEMBER 2021Exhibit 99.1 INVESTOR PRESENTATION SEPTEMBER 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains a number of forward-• travel industry disruptions;• our exposure to labor cost increases and work looking statements. Words, and variations of words, stoppages related to unionized employees; • our ability to successfully integrate and achieve su
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This document includes the presentation of “Adjusted Segment EBITDA”, which is Adjusted Segment EBITDA is defined by management as net income attributable to supplemental to results presented under accounting principles generally accepted in the Viad before income (loss)
Slide 4: Summary / Appendix
5 10 20 SUMMARY 33 APPENDIX 355 10 20 SUMMARY 33 APPENDIX 35
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS ▪ High-quality businesses with leading market positions in experiential leisure travel and experiential B2B events ▪ Track-record of creating significant shareholder value through strategic execution ▪ Strong liquidity position and financial flexibility to endure pandemic and r
Slide 6: The Premiere Experiential Services Company
THE PREMIERE EXPERIENTIAL SERVICES COMPANY Vertically-integrated attractions and hospitality company in iconic A global, full-service live events company offering a destinations with a collection of world-class attractions, distinctive comprehensive range of services for exhibitions/conferences, bra
Slide 7: Long-Term Goals Focused on Maximizing Shareholder Value
LONG-TERM FOCUSED ON MAXIMIZING GOALS SHAREHOLDER VALUE Smart allocation of capital Continue to drive growth Drive increased profitability through Refresh, Build, Buy and strong cash flow through Continually evaluate and take advantage of more flexible cost structure options to maximize economic dis
Slide 8: Viad's Track Record of Creating Shareholder Value
VIAD’S TRACK RECORD OF 165.7% CREATING SHAREHOLDER VALUE TSR 2015-2019 CASH FROM OPERATIONS $472 70% CASH CONVERSION MILLION S&P SmallCap600 57.4% (1) IN GROWTH INVESTMENTS SINCE 2015 $367 15% MINIMUM IRR HURDLE MILLION Russell 2000 48.4% (1) 2019 EBITDA FROM GROWTH INVESTMENTS $45.5 14% EBITDA CAGR
Slide 9: Our Recovery Is Underway
OUR RECOVERY IS UNDERWAY WELL-POSITIONED TO EMERGE STRONGER ▪ Leisure travel and in-person events are beginning to recover as vaccination rates increase, pandemic-related restrictions lessen, and people feel more comfortable traveling and gathering ▪ We are positioned to win the recovery and emerge
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Slide 11: Pursuit Is a Global Attractions & Hospitality Company
PURSUIT IS A GLOBAL ATTRACTIONS & HOSPITALITY COMPANY ATTRACTIONS LODGING F&B, RETAIL & TRANSPORTATION 8 World-Class Attractions 25 owned and operated welcomed 2.4M visitors in 2019 properties with over 380,000 36 Food & Beverage room nights sold in 2019 and 32 Retail Businesses 3 new attractions on
Slide 12: Inspiring, Unforgettable Experiences: Attractions
INSPIRING, UNFORGETTABLE EXPERIENCES OUR 12 ATTRACTIONS WILL WELCOME OVER 5 MILLION VISITORS ANNUALLY L A K E K E N A I M A L I G N E F L Y O V E R C O L U M B I A B A N F F G O L D E N F L Y O V E R F L Y O V E R F L Y O V E R G L A C I E R S K Y M I N N E W A N K A F J O R D S L A K E G O N D O L
Slide 13: Inspiring, Unforgettable Experiences: Lodging Properties
INSPIRING, UNFORGETTABLE EXPERIENCES OUR 25 LODGING PROPERTIES FILL OVER 380,000 ROOM NIGHTS ANNUALLY BANFF | JASPER GLACIER | WATERTON DENALI | KENAI FJORDS Elk + Avenue Hotel 164 rooms Glacier Park Lodge* 162 rooms Windsong Lodge* 216 rooms Sawridge Inn and Conference Centre 152 rooms Grouse Mount
Slide 14: Pursuit Operates in Iconic Global Locations
PURSUIT OPERATES IN ICONIC GLOBAL LOCATIONS VANCOUVER BANFF NATIONAL PARK GLACIER NATIONAL PARK DENALI NATIONAL PARK LAS VEGAS REYKJAVIK ~ 1 1 M V I S I TO R S JASPER NATIONAL PARK WATERTON LAKES KENAI FJORDS NATIONAL ~ 4 0 M V I S I TO R S ~ 2 M V I S I TO R S NATIONAL PARK PARK ~ 6 . 5 M V I S I T
Slide 15: Two Scalable Platforms to Deliver Growth
TWO SCALABLE PLATFORMS TO DELIVER GROWTH I CO N I C LO C AT I O N S F LYO V E R A collection of world-class attractions, A collection of flight ride experiences in vibrant distinctive lodges and engaging tours in cities that showcase awe-inspiring sights in a renowned global travel locations way tha
Slide 16: Pursuit Has a Proven Growth Strategy
PURSUIT HAS A COMPELLING AND PROVEN GROWTH STRATEGY B A N F F G O N D O L A To optimize guest experience, market I N V E S T M E N T : $ 2 2 M R E F R E S H position and maximize returns E B I T D A : $ 1 1 M G L A C I E R S K Y W A L K To create new guest experiences and revenue I N V E S T M E N T
Slide 17: Pursuit Has Delivered Profitable Growth
PURSUIT HAS DELIVERED PROFITABLE GROWTH Pursuit has Doubled Revenue 4-YEAR and Adjusted EBITDA in 48 months COMPOUNDED 223 REVENUE ($M) ANNUAL GROWTH 185 174 RATES 153 REVENUE 112 19% 81 EBITDA ($M) 69 66 50 Adjusted 36 EBITDA 23% 2015 2016 2017 2018 2019 >30% EBITDA MARGIN 17PURSUIT HAS DELIVERED P
Slide 18: The Recovery Is Underway at Pursuit
THE RECOVERY IS UNDERWAY AT PURSUIT SEQUENTIAL PERIOD REVENUE IMPROVEMENTS EXPECTED TO CONTINUE WITH STRONG AND IMPROVING BOOKINGS 1 Same-Store Revenue vs. Comparable Period in 2019 is Improving % of 2019 ▪ Alaska and Glacier Park Collections are tracking 84% 81% in-line or ahead of 2019 driven by t
Slide 19: Why We Will Be Successful
WHY WE WILL BE SUCCESSFUL We believe that collecting memories is far more important than collecting things. Since the beginning of time, human beings share a passion for exploration and the search for remarkable experiences. That hasn’t changed. Our MISSION is to connect guests and staff to iconic p
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Slide 21: A Global Live Events Company
A GLOBAL LIVE EVENTS COMPANY EXHIBITIONS/CONFERENCES BRAND EXPERIENCES VENUE SERVICES In-house AV, lighting, electrical, 3,600 exhibitions, #1 and #2 2,900 unique rigging and power service market share in the UK, live and virtual experiences - provider for 35+ leading US, respectively. partnering wi
Slide 22: Revenue Mix and Geographic Markets Served
REVENUE MIX AND GEOGRAPHIC MARKETS SERVED 2019 REVENUE MIX Exhibitions/Conferences Brand Experiences Venue Services 6% 30% 64% North America EMEA 20% 80% Countries GES Serves GES facilities 22REVENUE MIX AND GEOGRAPHIC MARKETS SERVED 2019 REVENUE MIX Exhibitions/Conferences Brand Experiences Venue S
Slide 23: Exhibitions and Conferences
EXHIBITIONS AND CONFERENCES The Exhibition and Conference market was over $34B in 2019 with low-single digit growth from 2016 2019 Global Tradeshow Market Global Tradeshow Market Growth 2016-2019 $34.4B 4.3% annually 46% Total Addressable Market for GES US ~$2.5B THE US EXHIBITION AND CONFERENCE MAR
Slide 24: Exhibitions and Conferences
EXHIBITIONS AND CONFERENCES GES is a global leader in the $2.5 billion addressable market within Exhibition and Conference industry 2019 GES Exhibition/Conference Revenue 2019 GES Market Share of Largest Tradeshows $0.7B 75% EMEA 25% 84% North America UK Largest 20 US largest 250 Exhibitions Exhibit
Slide 25: Brand Experiences
BRAND EXPERIENCES Experiential Marketing is a large, fast-growing segment of the corporate marketer’s budget 2019 Global Digital & Alternative 2019 Experiential Marketing Categories Marketing ($,000) (%) $340B Experiential B2B Events $38B Marketing – 35% Live Consumer Events $39B Consumer Event Spon
Slide 26: Brand Experiences
BRAND EXPERIENCES A strategic partner to leading brands around the world to manage and elevate their global experiential marketing activities Corporate Meetings & Events Digital Experiences Brand Activations Product Launches Strategic Exhibition Corporate Customer Centers Consumer Pop-up Events Spor
Slide 27: Venue Services
VENUE SERVICES A strategic partner providing in-house services to leading hotel and convention centers for the last 35 years For the past 14 years we have Audio Visual Services Electrical or Power Services Rigging Services been partners with ON Site. It's good to know you have a trusted partner with
Slide 28: GES' Financial Profile Has Been Profitable and Stable
GES’ FINANCIAL PROFILE HAS BEEN PROFITABLE AND STABLE 2015-2019 1 GES’ 5-Year Cumulative Free Cash Flow 260 in $millions 215 $374M 164 Adj. Segment EBITDA 101 ~70% 39 Conversion to FCF $260M 2015 2016 2017 2018 2019 1 CUMULATIVE FCF STRONG CASH CONVERSION with low capex requirements 1 Free Cash Flow
Slide 29: Pandemic Offered Opportunity to Accelerate Transformation
PANDEMIC OFFERED OPPORTUNITY TO ACCELERATE TRANSFORMATION - CREATING A STRONGER GES Quick and thoughtful response with a vision for the future Impact of CV19 on GES Revenue ($,000) of live events Organized business units to align more closely $1,080 to customer needs Eliminated $10M in fixed costs a
Slide 30: Significant Cost Reductions Will Drive Improved Profitability
SIGNIFICANT COST REDUCTIONS DURING PANDEMIC WILL DRIVE IMPROVED PROFITABILITY GOING FORWARD TA RG E T F I N A N C I A L S SG&A Reductions ($M) FY 2019 Revenue $1.1B FLOW EBITDA THROUGH MARGIN EBITDA 7% >20% 8%+ ~60% ON INCREMENTAL SG&A SG&A REDUCTION REVENUE 29% 156 64% 61 61 ~$10M LOWER BREAKEVEN P
Slide 31: Convention Centers Have Re-Opened and Large-Scale Events Re-Started
THE CONVENTION CENTERS HAVE RE-OPENED AND LARGE-SCALE EVENTS HAVE RE-STARTED REVENUE IS IMPROVING CONTINUING TO NAVIGATE VS. COMPARABLE PERIOD IN 2019 COVID ENVIRONMENT % of 2019 102% ▪ Delta variant has caused some shows and exhibitors to cancel ▪ Shows taking place are smaller in size than 42% 39%
Slide 32: Why We Will Be Successful
WHY WE WILL BE SUCCESSFUL We believe that virtual events cannot replace the rich connections created through in-person interactions. From transacting business to building brand loyalty, live events provide a powerful and cost-effective means to drive business growth. That hasn’t changed. Our MISSION
Slide 33: Investment Opportunity Summary
Investment Opportunity SummaryInvestment Opportunity Summary
Slide 34: Clear Path to Accelerate Growth and Enhance Shareholder Returns
CLEAR PATH TO ACCELERATE GROWTH AND SIGNIFICANTLY ENHANCE SHAREHOLDER RETURNS Proven Success Executing Experienced Management Growth Strategy and Team Focused on Driving Strong Returns Shareholder Value 53% 47% Strong Liquidity Position Capitalizing on Pandemic and Financial Flexibility to Disruptio
Slide 35: Appendix
AppendixAppendix
Slide 36: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ADJUSTED SEGMENT EBITDA and SEGMENT OPERATING INCOME GES PURSUIT VIAD TOTAL Millions 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Net Income Attributable to Viad $ 26.6 $ 42.3 $ 57.7 $ 49.2 $ 22.0 $ (374.1) Net Income Att
Slide 37: Management's COVID-19 Response
MANAGEMENT’S COVID-19 RESPONSE AGGRESSIVE COST REDUCTIONS TO PRESERVE CASH 1 • Implemented furloughs, layoffs, mandatory unpaid time off, and salary reductions for all employees across the company • Eliminated discretionary spending, reduced maintenance capital expenditures to essential levels, and
Slide 38: Our Experienced Executive Management Team
OUR EXPERIENCED EXECUTIVE MANAGEMENT TEAM STEVE MOSTER - PRESIDENT & CHIEF EXECUTIVE OFFICER ELLEN INGERSOLL - CHIEF FINANCIAL OFFICER • Has served as President and CEO of Viad since 2014 • Has served as CFO of Viad since July 2002 and as President of GES from 2010• During her tenure, the Company su
Slide 39: Our Experienced Executive Management Team
OUR EXPERIENCED EXECUTIVE MANAGEMENT TEAM DEREK LINDE - GENERAL COUNSEL AND SECRETARY LESLIE STRIEDEL - CHIEF ACCOUNTING OFFICER • Has served as General Counsel and Secretary of Viad • Has served as Chief Accounting Officer of Viad Corp since April 2018 since 2014 • Previously served as Deputy Gener
Slide 40: Environmental Sustainability
22,009 MEAL ITEMS ENVIRONMENTAL SUSTAINABILITY SERVED to the community through our Easy Eats Meal Program We want to ensure that the most iconic destinations in the world remain spectacular and special for generations to come. 29,376 KG OF ORGANIC SUSTAINABLY- CAPITAL WASTE SOURCED EDUCATION WASTE D
Slide 41: Environmental Sustainability
ENVIRONMENTAL SUSTAINABILITY As a testament to our commitment Events are created and produced with sustainability measures in mind every step to sustainability, of the way, with the goal of minimizing the event’s impact on the environment. GES is the first global full-service events WASTE COMMUNITY
Slide 42: Social Responsibility
SOCIAL RESPONSIBILITY Our success is built on a foundation of integrity, ethical behavior, corporate and We believe that social responsibility, and compliance, which are reinforced every day in our maintaining a culture of businesses through our Always Honest Compliance and Ethics Program. high ethi
Slide 43: Safety Promise
SAFETY PROMISE Pursuit's Safety Promise is our commitment to the safety and well-being of our guests and staff. Through this program, we will ensure that everyone feels safe when visiting our experiences and that these places can continue to make a positive impact. SAFE CLEAN INFORMED PEACE OF MIND
Slide 44: Geographic Overview
GEOGRAPHIC OVERVIEW SKY LAGOON (ICELAND) ALASKA COLLECTION (ALASKA) 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_ 1400867_1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 14
Slide 45: Pursuit's Locations Have Strong Perennial Demand
PURSUIT’S LOCATIONS HAVE STRONG PERENNIAL DEMAND 9/11 7,000,000 Recession Recession SARS 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Banff & Jasper National Parks Glacier & Waterton
Slide 46: New Experiences Will Accelerate Growth
NEW EXPERIENCES WILL ACCELERATE GROWTH 2021 2022 2 0 2 3 & B e yo n d MAY 2021 2022 (EST) 2023 FULL YEAR Sky Lagoon opened 78 Connaught Drive Hotel 78 Connaught Drive Hotel Reykjavik, Iceland Jasper, AB, Canada 2024 (EST) JUNE 2021 2022 FULL YEAR FlyOver Canada Toronto opens Golden Skybridge opened
Slide 47: We're Just Getting Started
WE’RE JUST GETTING STARTED Our entrepreneurial hospitality-oriented culture, combined with two scalable growth platforms, provides significant growth opportunities WE’RE JUST GETTING STARTED Our entrepreneurial hospitality-oriented culture, combined with two scalable growth platforms, provides signi
Slide 48: Success Stories: Banff Gondola Refresh
SUCCESS STORIES: REFRESH, BUILD, BUY. BANFF GONDOLA REFRESH INVESTMENT $22M SKY BISTRO 82 Attraction Net #1 Promoter Score Restaurant in Banff on TripAdvisor 1 ~$11M EBITDA INCREASE SINCE REFRESH 48 1 2019 as compared to trailing twelve months prior to renovationSUCCESS STORIES: REFRESH, BUILD, BUY.
Slide 49: Success Stories: Mount Royal Hotel Refresh
SUCCESS STORIES: REFRESH, BUILD, BUY. MOUNT ROYAL HOTEL REFRESH INVESTMENT $36M 60% IMPROVED NET PROMOTOR SCORE #2 HOTEL REVPAR INCREASE 77 points IN BANFF from $98 in 2016 to from -7 to 70 $157 in 2019 in 2 years 49
Slide 50: In Development: FlyOver Build Projects
IN DEVELOPMENT: REFRESH, BUY. BUILD, FLYOVER BUILD PROJECTS REYKJAVIK 3 Opened Aug 2019 New attractions in world class tourism cities LAS VEGAS Opened Sept 2021 #2 TORONTO TripAdvisor Ranking for FlyOver Iceland Expected opening in 2024 50IN DEVELOPMENT: REFRESH, BUY. BUILD, FLYOVER BUILD PROJECTS R
Slide 51: In Development: Sky Lagoon
IN DEVELOPMENT: REFRESH, BUY. BUILD, SKY LAGOON DEVELOPMENT Opened INVESTMENT May 2021 $13M IDEAL LOCATION OPERATING Closest geothermal PARTNER lagoon to Reykjavik in this venture 51IN DEVELOPMENT: REFRESH, BUY. BUILD, SKY LAGOON DEVELOPMENT Opened INVESTMENT May 2021 $13M IDEAL LOCATION OPERATING C
Slide 52: Success Stories: Alaska Collection
SUCCESS STORIES: REFRESH, BUILD, BUY. ALASKA COLLECTION ACQUISITION INVESTMENT $60M Sightseeing Boat Tours Lodging Properties 7 Experiences in Iconic Locations F&B and Retail 52SUCCESS STORIES: REFRESH, BUILD, BUY. ALASKA COLLECTION ACQUISITION INVESTMENT $60M Sightseeing Boat Tours Lodging Properti
Slide 53: Success Stories: Mountain Park Lodges
SUCCESS STORIES: REFRESH, BUILD, BUY. MOUNTAIN PARK LODGES ACQUISITION INVESTMENT $76M Ownership 60% Interest Market Share Hotel Properties of the Jasper 31% 7 in Jasper National Park Area Bed Base Close proximity to 3 Pursuit attractions 53SUCCESS STORIES: REFRESH, BUILD, BUY. MOUNTAIN PARK LODGES
Slide 54: Key Metrics: Pursuit
KEY METRICS 2019 LINE OF BUSINESS REVENUE MIX Hospitality Attractions Travel Planning Transportation 2% 7% 42% 49% 1 1 HOSPITALITY METRICS ATTRACTION METRICS RevPAR Occupancy Revenue / Visitor Visitors $46 $138 $128 $43 $125 $117 $39 $104 $31 $31 1.7M 1.6M 1.6M 1.5M 69.2% 70.2% 69.7% 69.3% 1.3M 65.6
Slide 55: Seasonality
SEASONALITY Pursuit experiences peak activity during the summer months. During 2019, 85% of Pursuit’s revenue was earned in the second and third quarters. Pursuit Revenue by Quarter ($M) 135.0 112.1 107.0 97.4 67.1 55.4 48.4 48.8 44.7 40.5 30.5 21.7 15.2 14.3 13.5 10.7 9.7 10.3 9.2 7.9 7.5 7.2 5.2 5
Slide 56: Key Metrics: GES
KEY METRICS 2019 REVENUE MIX Exhibitions/Conferences Corporate Events Other 2% 16% 82% 2 1 SHOW ROTATION US BASE SAME-SHOW GROWTH 8.0% Millions $52 4.8% 4.1% 2.8% 1.3% $(8) $(15) $(35) 2015 2016 2017 2018 2019 % U.S. $(71) Organic 45% 39% 35% 34% 30% 2015 2016 2017 2018 2019 Rev. 1 Year-over-year re
Slide 57: GES Seasonality and Show Rotation
IMTS & AS IMTS, MINEXPO, & AS AIR SHOW (AS) AIR SHOW (AS) AIR SHOW (AS) CONEXPO-CON/AGG CONEXPO-CON/AGG SEASONALITY GES’ exhibition and event activity can vary significantly from quarter to quarter and year to year depending on the frequency and timing of shows. Some shows are not held annually and
Slide 58: Exhibition Industry Has Proven Resilient Through Prior Downturns
EXHIBITION INDUSTRY HAS PROVEN RESILIENT THROUGH PRIOR DOWNTURNS US Exhibition Industry Metrics Indexed to 2000 9/11 Recession Recession SARS 1.15 1.10 1.05 1.00 0.95 0.90 0.85 0.80 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net Square Footage Exhi