Six Flags Entertainment Corporation · NYSE:FUN
Six Flags Entertainment — Merger or Acquisition (November 2023)
19 slides from Six Flags Entertainment's merger presentation, November 2023
Slide 1: Investor Presentation
Investor Presentation
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) Forward Looking Statements This presentation contains certain “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All stat
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) Important Information about the Transaction and Where to Find It In connection with the proposed transaction, Cedar Fair and Six Flags will cause HoldCo to file with the SEC a registration statement on Form S-4 that will include a proxy statement of Six Flags and a prospectus of Hol
Slide 4: Creating a Well-Diversified Leading Amusement Park Operator
Creating a Well-Diversified Leading Amusement Park Operator Enhanced Footprint and ▪ Bringing together two iconic businesses to create an expanded portfolio of 42 parks and 9 resort properties across North America Increased Diversification ▪ Complementary geographic footprints enhance diversificatio
Slide 5: Transaction Overview
Transaction Overview Combined Company ▪ Combined company to be named Six Flags, and trade as FUN on NYSE Overview ▪ Headquartered in Charlotte, North Carolina Former Former ▪ Cedar Fair unitholders receive HoldCo C Corp shares at 1.000x exchange ratio ▪ Six Flags shareholders receive HoldCo C Corp s
Slide 6: Transaction Overview (Continued)
Transaction Overview (Continued) ▪ Transaction expected to be accretive to adjusted EPS for both Six Flags Former Former shareholders and Cedar Fair unitholders within 12 months of transaction close Financial Impact ▪ $120mm of identified cost savings realized within 2 years of transaction close ▪ $
Slide 7: Enhancing the Guest Experience
Enhancing the Guest Experience More diversified guest experience across various live entertainment formats including amusement parks, water parks, resorts, safaris and campgrounds Partnerships with leading entertainment businesses and a portfolio of beloved IP such as Looney Tunes, DC Comics and PEA
Slide 8: Expanded IP Portfolio to Develop Engaging New Attractions and In-Park Offerings
Expanded IP Portfolio to Develop Engaging New Attractions and In-Park Offerings 8
Slide 9: 42 Parks to Maximize the Guest Experience
42 Parks to Maximize the Guest Experience Q3 2023 LTM Financial Metrics Parks 15 27 42 Attendance 26 million 22 million 48 million Revenue $1.8 billion $1.4 billion $3.4 billion2 (Incl. Uplift) Adjusted EBITDA1 $527 million $462 million $1.2 billion2 (Incl. Synergies) Adjusted | Modified 36 %2 29 %
Slide 10: Combined Portfolio Delivers Well-rounded Guest Experience Across Various Entertainment and Travel Formats
Combined Portfolio Delivers Well-rounded Guest Experience Across Various Entertainment and Travel Formats Amusement Parks 11 16 27 Water Parks 4 11 15 Hotels / Resort Properties 7 2 9 Campgrounds 5 2 7 Safaris / Animal Experiences - 2 2 Sports Facilities 2 - 2 Marinas 3 - 3 10
Slide 11: Complementary Portfolio Delivers Greater Value to Customer Through Expanded Season Pass and Operational Efficiencies
Complementary Portfolio Delivers Greater Value to Customer Through Expanded Season Pass and Operational Efficiencies Select Benefits of Combined Footprint Midwest ✓ Enhances guest experience ✓ Parks: 10 by increasing access to a wider variety of iconic parks ✓ Aggregate and other formats of live Att
Slide 12: Compelling Financial Benefits to Combination
Compelling Financial Benefits to Combination Combined Q3’23 LTM Adj. EBITDA of $1.2 billion, including synergies1 Highly realizable cost saving plus additional revenue uplift opportunities resulting in $200 million estimated annual run rate synergies1 Diversification of park portfolio across regions
Slide 13: Diversified Geographic Footprint Mitigates Weather-Related and Seasonal Earnings Volatility
Diversified Geographic Footprint Mitigates Weather-Related and Seasonal Earnings Volatility and Increases Visibility Northeast Midwest Northeast 13% 14% 17% Midwest 29% South South Midwest 16% 39% 42% Northeast 22% South 27% West West West 29% 25% 27% No single geography expected to contribute great
Slide 14: Identified and Highly Achievable Cost Savings of $120mm Within 2 Years of Transaction Close
Identified and Highly Achievable Cost Savings of $120mm Within 2 Years of Transaction Close Sources of $120mm Identified Cost Savings % of Cost Savings Realized ~ 100 % Procurement, Advertising & IT / Technology ~20% ~ 65 % Corporate Costs ~55% Operating Efficiencies ~25% Within 1 Year Within 2 Year
Slide 15: Unlock $80mm of Incremental EBITDA from Revenue Uplift
Combined Footprint, IP Portfolio and Management Knowhow Will Deliver Improved Guest Experience and Unlock $80mm of Incremental EBITDA from Revenue Uplift Enhanced Season Optimized Flash Pass / Improved Food & Expanded IP Portfolio Pass Program Fast Lane Program Merchandise Offerings ~$40M EBITDA ben
Slide 16: Enhanced Cash Flow and Optimized Balance Sheet
Enhanced Cash Flow and Optimized Balance Sheet Run-rate cost savings and incremental growth opportunities drive meaningful deleveraging Incremental free cash flow generation enables investments that enhance the guest experience and create shareholder value Net Leverage over Time1 Free Cash Flow
Slide 17: Path to Completion
Path to Completion Merger expected to close in the first half of 2024, following receipt of Six Flags shareholder approval, regulatory approvals, and satisfaction of other customary closing conditions. Q4 2023 Complete Pre-Merger Integration Refinance Six 1H 2024 Commitments Preparation Flags Term L
Slide 18: Creating a Well-Diversified Leading Amusement Park Operator
Creating a Well-Diversified Leading Amusement Park Operator Enhanced Footprint and ▪ Bringing together two iconic businesses to create an expanded portfolio of 42 parks and 9 resort properties across North America Increased Diversification ▪ Complementary geographic footprints enhance diversificatio
Slide 19: Cedar Fair.
i RY Cedar Fair.
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