Emerald Holding, Inc. · NYSE:EEX
Emerald — Emerald Expositions Events — Q3 2019 Earnings Presentation
30 slides from Emerald's earnings presentation, Nov 5, 2019
Slide 1: Q3 Earnings Call November 5, 2019
Q3 EARNINGS CALL NOVEMBER 5, 2019 Exhibit 99.3
Slide 2: Legal Disclaimers
Legal Disclaimers Special Note Regarding Forward-Looking Statements This presentation (the “Presentation”) contains statements that express Emerald Expositions Events, Inc.’s (the “Company,” “Emerald,” “we,” “us” or “our”) opinions, expectations, beliefs, plans, objectives, assumptions or projection
Slide 3: Speakers
Speakers Sally Shankland President & Chief Executive Officer CEO of Emerald Expositions since June 2019 President of McGraw-Hill Higher Education from 2015 to 2017 27 year career with UBM; most recently CEO of UBM Americas from 2012 to 2015 30+ years’ experience growing events and marketing services
Slide 4: Strategy Update
Strategy Update Q3 Earnings Call - November 5, 2019
Slide 5: State of the Business (June 2019)
Strengths: Robust and attractive business model and good industry fundamentals Strong and diversified portfolio of brands with market leading positions Dedicated and passionate employees with close ties to their industries Opportunities to supplement organic growth with tuck-in M&A State of the Busi
Slide 6: The transition is well underway
The transition is well underway New management team Redefined Vision and Mission Strategy reset, driven by data and technology, focused on: Improved customer satisfaction and engagement Diversification of revenue streams and increased innovation Greater discipline and accountability Employees are en
Slide 7: New Management Team
New Management Team Brian Field COO (from 6/1) 20+ years of events and media experience Previous experience: UBM, Turner Broadcasting, Omnicom, VOY, StarMedia Lori Silva EVP, Retail (from 9/1) 30+ years of events and media experience Previous experience: Informa/UBM, Blenheim Jessica Blue EVP, Conne
Slide 8: Redefined Vision & Mission
Redefined Vision & Mission Vision To fuel our customers’ success, increasing prosperity for the businesses, people and markets we serve Mission To be a year-round partner to our customers – both buyers and sellers – nurturing them with valuable events and critical information and insights that make
Slide 9: Strategy Reset
Focus on Customer Satisfaction Strategy Reset Financial Goals: Sustainable organic revenue growth, at or above industry levels Solid and consistent growth in Adjusted EBITDA at attractive profit margins Diversify Revenue Streams Operate Efficiently and Cost Effectively Pursue Attractive Tuck-in Acqu
Slide 10: Growth Strategy #1: Focus on Customer Satisfaction
Growth Strategy #1: Focus on Customer Satisfaction Link senior management and staff compensation to Customer Satisfaction improvements Implement “Event Plans” that standardize marketing and sales plans Track key customer and financial metrics to ensure improved performance Enhance post-event researc
Slide 11: Focal Point: Event Plans
Focal Point: Event Plans Drives “outside in” approach and thinking that starts with the market sector and customer segment Provides management dashboard of “flags” for follow-up when any specific metric is sub-benchmark Creates rigor and transparency, from strategy down to tactical delivery Aligns t
Slide 12: Focal Point: Value-Based Pricing
Focal Point: Value-Based Pricing (“VBP”) Pricing methodology beyond flat-rate increases to align with perceived customer value Based on detailed data analysis of historical prices, customer behaviors and NPS scores Initial phase occurring across six shows (Outdoor Retailer, ASD, NY NOW, CEDIA Expo,
Slide 13: Focal Point: Enhanced Post-Show Research
Focal Point: Enhanced Post-Show Research Ensures key customer sentiment questions are uniformly asked Provides continuity in edition-to-edition survey design and access to customer data Establishes more robust sentiment scoring overall, with integration of NPS, satisfaction, loyalty and importance m
Slide 14: Focal Point: Data Enrichment
Focal Point: Data Enrichment Emerald currently uses basic demographic and firmographic information in its marketing practices, such as: name, title, company information and size, and company revenues While helpful for broad segmentation, this is limited to what customers explicitly tell us and can c
Slide 15: Growth Strategy #2: Diversify Revenue Streams
Growth Strategy #2: Diversify Revenue Streams Increase sponsorship and advertising revenues Apply best practices and develop new products and packages Increase conference revenues Improve quality, marketing effectiveness and operating efficiency Increase hosted buyer revenues Continue to launch new
Slide 16: Focal Point: Integrated Customer Solutions
Focal Point: Integrated Customer Solutions Blending sponsorship programs with digital and print solutions to reach desired customer targets Means of extending beyond “event days” to year-round opportunities for our customers (and us) Focused on standardization and scale vs one-off bespoke efforts to
Slide 17: Growth Strategy #3: Operate Efficiently & Cost Effectively
Growth Strategy #3: Operate Efficiently & Cost Effectively Improve financial rigor Introduce zero-based budgeting for 2020 Budget Critically assess the impact/ROI of all spending and investments Centralize activities to drive efficiencies Review and renegotiate all major cost items Standardize proce
Slide 18: Growth Strategy #4: Pursue Attractive Tuck-in Acquisitions
Growth Strategy #4: Pursue Attractive Tuck-in Acquisitions Confidential - Emerald Expositions Focus on acquisitions that either: meaningfully strengthen one or more of our existing brands, or where we bring considerable incremental value that will enhance the acquisition’s rate of growth Develop rig
Slide 19: Case Study: G3 Communications
Case Study: G3 Communications Announced 11/4/19 Leading owner of conferences, online media, research and custom marketing services for the retail industry and the B2B marketing industry G3 is ideally situated to continue to provide essential information to an audience of both retailers and B2B marke
Slide 20: Financial Objectives
Financial Objectives Confidential - Emerald Expositions Return to sustainable organic revenue growth, at or above industry levels Our target is mid single-digit percentage organic revenue growth by 2021 Deliver solid and consistent growth in Adjusted EBITDA over time Operate at strong profit margins
Slide 21: Timeline
Timeline Assemble top quality senior team Deploy new event research tool Launch Event Plans Analyze and develop value-based pricing models Start to develop new revenue opportunities, including launches, new categories, sponsorships etc. Begin to integrate customer and attendee information to facilit
Slide 22: Addressing the Four Key Constituencies needed for Success
Addressing the Four Key Constituencies needed for Success Communities Shareholders Customers Employees
Slide 23: Q3 2019 Performance
QO3 2019 Performance Q3 Earnings Call - November 5, 2019
Slide 24: Key Q3 Shows
Key Q3 Shows ASD Market Week franchise stabilized July show revenue flat: good growth in Value & Variety and Gift & Toy categories offsetting a decline in the Sourcing section driven by U.S./China trade tensions Booth revenue for March 2020 show pacing positively NY NOW Summer low double-digit perce
Slide 25: Q3 Results
EMERALD® EXPOSITIONS Q3 Results $ million, except EPS Revenues Reported Scheduling adjustments: Events moved from QB to Q2 (net) Events moved from Q4 to Q3 (net) Scheduling adjustments (net) Discontinued events Anticipated revenues: Surf Expo/15S Orlando 2018 Acquisitions - Incremental Organic Reven
Slide 26: Q3 Cash Flows & Debt
EMERALD® EXPOSITIONS Q3 Cash Flows & Debt Q3 Earnings Call - November 5, 2019 Change $M 2019 2018 s Free Cash How 10.7 13.6 29) Dividends 6.4) 6.3) (0.1) Acquisition of businesses 2 Q78) 278 Borrowing on revolving credit facility 10 E 10 Repayment of principal on term loan (1.4) (4) (0.0) ‘Debt rela
Slide 27: 2019 Full Year Guidance Ranges
2019 Full Year Guidance Ranges Cancellation of Surf Expo and ISS Orlando due to Hurricane Dorian reduced anticipated third quarter revenues by approximately $7 million. As a result, management expects Total revenue to fall modestly below the low end of the guidance range
Slide 28: Concluding Remarks
Concluding Remarks Q3 Earnings Call - November 5, 2019
Slide 29: The Table is Reset
Despite recent disappointing financial performance, this business has significant potential over the medium to long term Portfolio is diversified and we have leading market positions Key is to deliver more value to our customers and to increase their satisfaction and ROI We will achieve this by appl
Slide 30: Q&A
&A Q3 Earnings Call - November 5, 2019
Emerald Expositions Events — Q3 2019 Earnings Presentation on 6ix