Emerald Holding, Inc. · NYSE:EEX
Emerald — Investor Presentation (March 2021)
26 slides from Emerald's investor presentation, Mar 18, 2021
Slide 1: Emerald Holding, Inc. March 2021
Emerald Holding, Inc. March 2021 Exhibit 99.1
Slide 2: Forward-Looking Statements
Notes Forward-Looking Statements This document contains certain forward-looking statements regarding Emerald Holding, Inc. (the “Company”), including, without limitation, the Company’s ability to recover proceeds under its current event cancellation insurance policy and the timing and amount of any
Slide 3: Emerald at a Glance
Carve out from Nielsen by Onex Corp (“Onex”) in June 2013 19 acquisitions over 2014-2020 period, totaling ~$679 million in capital deployed IPO in April 2017; Onex ownership currently ~85% on as converted basis New management team brought in over last 18 months to optimize operations and build organ
Slide 4: Investment Highlights
4 Investment Highlights Significant Opportunity In Large, Fragmented Market Diversified Portfolio of Market-Leading Brands Powerful Event-Level Economics Significant Inorganic Growth Opportunities Experienced Management Team New Data and Technology-Driven Strategic Initiatives – The Emerald Discover
Slide 5: Significant Opportunity In Large, Fragmented Market
Steady Attendee Growth Strong Pre-COVID Growth Trajectory The US Is The Largest Trade Show Market 5 Significant Opportunity In Large, Fragmented Market Sources: AMR International (Globex 2020 Update) The Company is the largest US based player in the largest B2B trade show market in the world, by far
Slide 6: Diversified Portfolio of Market-Leading Brands
6 Well-balanced and diversified Largest five brands (9 events) represented <40% of 2019 revenues 91% of 2019 revenues from Live Events Trade show franchises typically hold market-leading positions within their respective industry verticals Other Marketing Services (OMS) contributed 9% of 2019 revenu
Slide 7: Powerful Event-Level Economics
Attractive recurring revenue stream with ~80% of customers returning each year (pre Covid-19 impact) Favorable cash collection cycle: Exhibitors largely pay in full in advance of each trade show, whereas the bulk of expenses are paid close to or after the show Attractive cost structure with 30% of e
Slide 8: Significant Inorganic Growth Opportunities
A large universe of independent trade shows still exists globally; the Top 15 independent shows in the US alone represent a >$250mm revenue opportunity Top 250 Events: 63.1mm total net square footage 3.2mm total attendees 187,336 total exhibiting companies Tangential revenue opportunities abundant i
Slide 9: Experienced Management Team
9 Experienced Management Team 5 Hervé Sedky President & CEO Joined the Company in January 2021 Has over 30 years of experience across the B2B and B2C industries, including, most recently, 6 years as President of Reed Exhibitions Americas Previously, served as SVP and GM of American Express Business
Slide 10: New Data and Technology-Driven Strategic Initiatives – The Emerald Discovery Engine
New Data and Technology-Driven Strategic Initiatives – The Emerald Discovery Engine 6
Slide 11: Rethink, Reframe, & Reconnect
11 Rethink Reframe Reconnect Rethink, Reframe, & Reconnect How to Bring People Together The new workforce and work styles require a new approach
Slide 12: The Emerald Discovery Engine
The Emerald “Discovery Engine” Support customers from the time they engage with our content to the time they walk our event floors and beyond Attendees seek Inspiration Exhibitors seek leads Discovery Engine Deeply Immersive Shared Experiences Live, Online and Hybrid way to Meet | Learn | Transact Y
Slide 13: Two Simple Goals
Two Simple Goals Emerald's growth strategy is embodied in two main goals Launch Discovery Engine Maximize Value of Operations and Expand Offerings Intent & Demographic Recommendations Fit-for-Purpose Digitization Expand Brand Offering The impossibly easy way to Meet, Learn, Transact 1 2 Inside focus
Slide 14: The Emerald Discovery Engine Stack
14 The Emerald Discovery Engine Stack Proprietary solutions paired with technology partnerships uniquely positions Emerald Transaction and Subscription Engine User Experience SmartTech 3D Virtual Showrooms Immersive Engagement Sentiment and Context Core Services Commerce Augmented Talks Augmented Ex
Slide 15: Insurance Update
“ Insurance Update @ EMERALD
Slide 16: Summary of Emerald's Event Cancellation Policy and Coverage
Summary of Emerald’s Event Cancellation Policy and Coverage Insurance Policy Coverage: As previously disclosed in recent SEC filings, Emerald maintains event cancellation insurance to protect against losses due to the unavoidable cancellation, postponement, relocation and enforced reduced attendance
Slide 17: Update on Emerald's Event Cancellation Policy and Coverage
Update on Emerald’s Event Cancellation Policy and Coverage Active Claims Processing Ongoing; Substantial Payments to Date by Insurers Claims Submissions: Emerald continues to process claims for each event cancelled or impacted to date by circumstances related to the COVID-19 pandemic in 2020 and 202
Slide 18: Pending Litigation Under Insurance Policies
Pending Litigation Under Insurance Policies On February 22, 2021, Emerald filed a lawsuit in Federal District Court in California against its insurers under the Company’s 2020 and 2021 event cancellation insurance policies. As of March 18, 2021, the insurers have not yet Answered the complaint. Emer
Slide 19: Insurance Illustrative Calculation
19 Insurance Illustrative Calculation Calculation of Insurance Coverage; Illustrative Calculation: Emerald’s policy provides coverage for the budgeted amount of gross revenues (less avoided costs but including certain costs relating to the taking of remedial action), for individual events and confer
Slide 20: Fourth Quarter and FY 2020 Financial Results
Fourth Quarter and FY 2020 Financial Results
Slide 21: Fourth Quarter 2020 Highlights and Current Liquidity Position
Fourth quarter and Full Year 2020 results negatively impacted by cancellations due to the COVID-19 pandemic Continue to focus on improving operational efficiencies across the company Completed the acquisition of PlumRiver, LLC for initial consideration of $30.0 million in cash and $4.4 million in st
Slide 22: Full Year 2020 Highlights
Full Year 2020 results negatively impacted by cancellations due to the COVID-19 pandemic Cancelled events contributed prior year revenue of $230.6 million and Adjusted EBITDA of $141.8 million The impact of event cancellations was partially offset by the recognition of $107.0 million in Other Income
Slide 23: Appendix
‘ Appendix @ EMERALD
Slide 24: Adjusted Net Income
Adjusted Net Income 24 UNAUDITED RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED NET INCOME (1) Represents non-cash goodwill impairment charges described in Note 1 to Schedule 2 above. (2) Represents non-cash intangible asset impairment charges described in Note 2 to Schedule 2 above. (3) Represents
Slide 25: Adjusted EBITDA
Adjusted EBITDA 25 UNAUDITED RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA (1) For the three months ended December 31, 2020 and 2019, represents non-cash charges of $39.4 million and $59.8 million, respectively, for goodwill in connection with the Company’s annual October 31 testing of good
Slide 26: Adjusted Diluted Earnings
Adjusted Diluted Earnings 26