Vail Resorts, Inc. · NYSE:MTN
Vail Resorts — Investor Day (March 2024)
115 slides from Vail Resorts's investor day presentation, Mar 20, 2024
Slide 1: Investors' Conference March 20-21, 2024
INVESTORS’ CONFERENCE MARCH 20-21, 2024
Slide 2: Caution on Forward Looking Statements
CAUTION ON FORWARD LOOKING STATEMENTS Certain statements discussed in this presentation, other than statements of historical information, are forward-looking statements within the meaning of the federal securities laws, including the statements regarding our expected fiscal 2024 financial and operat
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES We use the terms Resort Reported EBITDA, Total Reported EBITDA, Resort EBITDA margin, Free Cash Flow, and Free Cash Flow Yield Per Share (“FCF Yield Per Share”), which are not financial measures under accounting principles generally accepted in the United States of Americ
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Global industry leader with a differentiated business model Industry Leader • Leading global mountain resort operator in Niche • 40 owned & operated resorts across North America and Australia Global Market • Expanding European footprint, with 1 resort owned & operated and 1 pen
Slide 5: The first phase of growth took years to create
THE FIRST PHASE OF GROWTH TOOK YEARS TO CREATE… Since then, have been building the foundation for the next phase of long term value creation In 2008, Vail Resorts had a vision First Phase of Growth COVID- to create a network, through Impacted strategic acquisitions and Epic Resort Reported EBITDA Pa
Slide 6: Since FY21, investing in foundation to enable future growth
SINCE FY21, INVESTING IN FOUNDATION TO ENABLE FUTURE GROWTH Took deliberate actions across Pass, guest experience, talent, technology and acquisitions • Reset pass price to create more stability • Accelerated capital investment in lifts and guest experience with Epic Lift Upgrade • Invested in wages
Slide 7: The Next Phase of Growth
THE NEXT PHASE OF GROWTH Focused on 5 Strategies for Long Term Sustainable Growth 1. Grow the Subscription Model 2. Unlock Ancillary 3. Transform Resource Efficiency 4. Differentiate the Guest Experience 5. Expand the Resort Network
Slide 8: Industry Fundamentals
INDUSTRY FUNDAMENTALS Attractive supply and demand trends within the ski industry Mountain resorts are irreplaceable • No new mountain resorts of scale in over 40 years • Lack of new supply is unique within Travel & Leisure Industry Passionate guest base • Loyal, committed, high frequency local gues
Slide 9: Vail Resorts Business Model
VAIL RESORTS BUSINESS MODEL Created a differentiated business model that drives loyalty and stability World-Class Resorts Loyalty & Owned & Operated Lifetime Value Integrated Network Shareholder Returns Technology and & Reinvestment in Data Experience Strong Free Cash Revenue, Talent, Flow Generatio
Slide 10: World-Class Resorts
World-Class Resorts WORLD-CLASS RESORTS Our network of owned and operated resorts are the most popular and well known North American Leading Regional Resorts in North America Brand Resort Industry Skier • Heavenly, Northstar, and Kirkwood in Lake Tahoe Awareness 2 Visits 1 • Leading Northeast Region
Slide 11: Owned & Operated Integrated Network
Owned & Operated Integrated Network OWNED & OPERATED INTEGRATED NETWORK The integration of the network is a differentiator and critical for future growth *Pending closure of acquisition
Slide 12: Technology
Technology & Data TECHNOLOGY The foundation of the network integration is our Enterprise Technology Ecosystem Enterprise Technology Ecosystem Custom, Proprietary Sales and Fulfillment System Integrated Marketing and Commerce Platform Enterprise Infrastructure Enterprise Guest Experience Platform Ent
Slide 13: Data
Technology & Data DATA An owned & operated integrated network enables data-driven revenue, talent, and efficiency Extensive data across all resorts about behavior, experience, and operations lines of business Predictive modeling Product and pricing decisions based on price elasticity data Over 25 mi
Slide 14: Revenue, Talent, and Efficiency
Revenue, Talent, and Efficiency REVENUE, TALENT, AND EFFICIENCY Creates unique differentiation Economies of scale generates greater returns on investment across network Ownership of all guest and business data to understand, predict, and influence behavior Cohesive product and pricing strategy, base
Slide 15: Advance Commitment
Advance Commitment ADVANCE COMMITMENT The trade-off between value and a non-refundable commitment in advance Subscription Model Business Model Benefit Financial stability – mitigate weather or Non-refundable purchase 1 macroeconomic uncertainty Decision before season starts Loyalty – high return rat
Slide 16: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation STRONG FREE CASH FLOW GENERATION Differentiated business model drives high flow-through on modest volume growth Volume growth from subscription model increasing loyalty Attractive supply dynamics and consistent investment in experience drives price growth above infla
Slide 17: Shareholder Returns & Reinvestment in Experience
Shareholder Returns & Reinvestment in SHAREHOLDER RETURNS & REINVESTMENT Experience Consistent and disciplined capital allocation strategy Reinvest in the guest experience – Frontline talent, technology, and on-mountain Pursue strategic network expansion opportunities Invest in the future of the spo
Slide 18: Loyalty and Lifetime Value
Loyalty & Lifetime Value LOYALTY AND LIFETIME VALUE Differentiated business model drives loyalty and lifetime value World-class resorts connected in an owned and operated network, drives Advance Commitment Data on guests enables ability to grow revenue that translates to free cash flow that supports
Slide 19: Q2 FY24 demonstrated the strength of this model
AND Q2 FY24 CLEARLY DEMONSTRATED THE STRENGTH OF THIS MODEL EBITDA growth and guest spend strong despite significant weather challenges 2Q24 Results vs. Prior Year 1 Unfavorable conditions across all of our North American resorts in first half of season 8% Despite conditions, Q2 Resort Reported EBIT
Slide 20: The Next Phase of Growth
THE NEXT PHASE OF GROWTH Focused on 5 Strategies for Long Term Sustainable Growth 1. Grow the Subscription Model 2. Unlock Ancillary 3. Transform Resource Efficiency 4. Differentiate the Guest Experience 5. Expand the Resort Network
Slide 21: Grow the Subscription Model
GROW THE SUBSCRIPTION MODEL
Slide 22: Success in Growing Season Pass Revenue
SUCCESS IN GROWING SEASON PASS REVENUE Pass Revenue growth of +17% CAGR since 2008 Season Pass Revenue 1 $USD in millions +17% CAGR $121M 2 $944M $863M $795M $654M $482M $465M $412M $350M $264M $177M $217M $120M $135M $147M $78M $94M $101M FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Slide 23: 75% of our visits are pre-committed in advance
75% OF OUR VISITS ARE PRE-COMMITTED IN ADVANCE Lift Ticket Pass Skier Visit Mix 1 IMPACTED BY COVID-19 29% 27% 25% 31% 45% 42% 40% 52% 51% 51% 49% 49% 48% 47% 54% 55% 65% 71% 73% 75% 69% 55% 58% 60% 48% 49% 49% 51% 51% 52% 53% 46% 45% 35% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 F
Slide 24: And 65% of lift revenue
. . . AND 65% OF LIFT REVENUE Lift Ticket Pass Lift Revenue Mix 1 IMPACTED BY COVID-19 39% 39% 39% 35% 53% 53% 49% 60% 62% 60% 60% 60% 57% 66% 65% 65% 74% 61% 61% 61% 65% 47% 47% 51% 40% 38% 40% 40% 40% 43% 34% 35% 35% 26% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 2 FY21 3 FY2
Slide 25: Advance Commitment Creates Lifetime Value
ADVANCE COMMITMENT CREATES LIFETIME VALUE Guest behavior changes when they transition from Lift Ticket to Pass Pass Holders have ~2x Pass Holders ski ~3x Pass Holders have ~50% greater higher return rate more days on average guest satisfaction on average Return Rates 1 Frequency 2 Net Promoter Score
Slide 26: Strategic Pricing Shifts Guests into Advance Commitment
STRATEGIC PRICING SHIFTS GUESTS INTO ADVANCE COMMITMENT Pricing is a lever to drive advance commitment and value creation Refundable Non-Refundable Pricing strategy to drive behavior Window Lift Tickets • Drive advance purchase Mid-Advance • Maximize frequency Lift Tickets • Optimize peak and off-pe
Slide 27: Have consistently increased prices above inflation
HAVE CONSISTENTLY INCREASED PRICES ABOVE INFLATION Pass pricing has outpaced inflation, outside of FY22 strategic price reset • Epic Pass prices have historically Epic Pass Launch Price 1 $USD increased +5% per year, outpacing inflation since FY11 +8% -20% +5% CAGR CAGR 982 • Made strategic decision
Slide 28: FY22 Price Reset Drove Significant Impact
FY22 PRICE RESET DROVE SIGNIFICANT IMPACT Since FY20, Vail Resorts has nearly doubled pre-committed guests Transformational Growth in Pass Holders • Used a data-driven strategy to Unit Growth 1 identify the optimal pricing to move majority of lift revenue to Pass +95% business • Grounded in lifetime
Slide 29: Leverage new subscription tiers: Epic Day Pass
ALSO LEVERAGE NEW SUBSCRIPTION TIERS TO DRIVE GROWTH Case Study: Epic Day Pass Attract New Guests – Over 65% of FY19- FY24 Epic Day Passes were sold to guests that were new to Pass 1 +54% CAGR Upsell to More Access – Of the Epic Day Pass guests who renewed, ~40% upgraded to more days of access or an
Slide 30: Future Growth of Advance Commitment
FUTURE GROWTH OF ADVANCE COMMITMENT Pass growth is driven by loyalty and acquisition of new Pass Holders Loyalty New Large Pass Holder base of 2.4M+ Attract Lapsed guests, who have skied at one of our resorts in the past, but did not Increasing loyalty among Unlimited and in the most recent season F
Slide 31: Loyalty
LOYALTY As Advance Commitment has grown, loyalty has also grown Since FY20 grew Unlimited Pass Holders Grew Frequency Pass Holders more almost 75% and at same time Grew Loyalty 1 than 4x and Grew Loyalty 1 Renewal Rate: Unlimited Pass Holders 2 Renewal Rate: Epic Day Pass Holders 2 +6 pts + 6 pts FY
Slide 32: Significant Growth in New Pass Holders
SIGNIFICANT GROWTH IN NEW PASS HOLDERS Attracting new guests to our network and into Epic has been a strength • Continue to attract new guests Annual New Pass Holders 1 Incremental Number of New Pass Holders who have never visited our resorts +80% • Significant growth from return of Lapsed guests to
Slide 33: New Pass Holders from Lift Ticket Guests
NEW PASS HOLDERS FROM LIFT TICKET GUESTS Opportunity to achieve 75%+ of Lift Revenue from Pass • Lift Tickets are the most common entry point for FY24P Lift Revenue 1,2,3,4 new guests coming into our resort network • Then the opportunity exists to transition those 19% Advance Lift Tickets guests to
Slide 34: New guests who have never been to our resorts
NEW GUESTS WHO HAVE NEVER BEEN TO OUR RESORTS Large remaining opportunity both domestically and abroad • ~70M skier visits annually 1; have grown share in Vail Resorts Pass products but large addressable opportunity remains • Some of the largest markets of our Destination guests are in North America
Slide 35: Significant Runway for Growth in North America
SIGNIFICANT RUNWAY FOR GROWTH IN NORTH AMERICA Focused on how to meet the needs of Local and Destination guests Behavior Opportunity • For example, approximately 40M 1 • Ski more days on average Local U.S. visits annually • Majority purchase Unlimited Pass • Invest in loyalty in Rockies, Tahoe, Loca
Slide 36: Destination markets drive growth and remain an opportunity
DESTINATION MARKETS HAVE DRIVEN GROWTH AND ARE STILL AN OPPORTUNITY GIVEN NUMBER OF INDUSTRY SKIER VISITS Ten Destination Markets 1 • Have made significant progress on converting Destination guests to Pass, and still meaningful room to grow • Vail Resorts Pass Holders in these markets have more than
Slide 37: East region has driven growth and is still an opportunity
EAST REGION HAS DRIVEN GROWTH AND IS STILL AN OPPORTUNITY Strong progress since last year, but still over indexes on Lift Tickets East Region: Skier Visit Mix 1 • Significant progress has been made to Lift Ticket Pass transition East region to Pass since acquisition of Peak Resorts • But East still
Slide 38: Vision to achieve 75%+ of lift revenue in advance commitment
VISION IS TO ACHIEVE 75%+ OF LIFT REVENUE IN ADVANCE COMMITMENT • World-class resorts Lift Revenue Mix 2 • Strong brand awareness and differentiation for Lift Ticket Pass Epic Pass • Investment in the guest experience 35% <25% • Innovation 74% • Breadth and depth of subscription tiers – by resort ac
Slide 39: Unlock Ancillary Growth
UNLOCK ANCILLARY GROWTH
Slide 40: Positioned for Ancillary Growth
POSITIONED FOR ANCILLARY GROWTH Vail Resorts has developed the foundation to unlock ancillary capture and guest spend Breadth and depth of data enables targeted strategy to grow ancillary spending • 2.4 million guests pre-committed in advance of season • Over 25 million marketable guests in Vail Res
Slide 41: Gear Opportunity
GEAR OPPORTUNITY Traditional model of gear ownership and rental has not innovated in decades Every skier and rider needs gear to participate in the sport • There are approximately 13 million skiers & riders who participate in the sport in North America each year 1 • On average, guests ski and snowbo
Slide 42: Gear Opportunity: owners and renters dissatisfied
GEAR OPPORTUNITY Traditional model leaves owners and renters dissatisfied Skier and Snowboarder Dissatisfactions with Gear Options 1 Time Spent in Rental Store Cost to purchase 75% Owners Finding Boots that Fit Transporting gear 64% Cost of Renting New technology makes equipment obsolete 59% Pick up
Slide 43: Uniquely positioned to innovate gear market
VAIL RESORTS IS UNIQUELY POSITIONED TO INNOVATE GEAR MARKET Strong foundation of infrastructure, data, and loyal guests Strong foundation of infrastructure • Over 200 retail, rental and tuning locations 1 • 6 distribution centers • Rental delivery business • Gear valet services • Breadth and depth o
Slide 44: The Ultimate Gear Membership
THE ULTIMATE GEAR MEMBERSHIP. The gear you want. When you want it. Where you want it.
Slide 45: My Epic Gear is a subscription model
MY EPIC GEAR IS A SUBSCRIPTION MODEL Rental and Ownership model has not experienced innovation decades Guest Segment Reason to Join • Try most popular and latest ski and snowboard models Gear Owners • No traveling with gear • Lower than cost of ownership • No standing in line at rental store • Gear
Slide 46: The Gear You Want
THE GEAR YOU WANT Choose premium gear from the most popular and latest models for one day or everyday 60+ most popular ski and snowboard 2024 and 2025 models from 13 leading brands • Salomon QST, Stockli Stormrider, Burton Hometown Hero, Jones Mountain, K2 Mindbender, and Blizzard Black Pearl Sample
Slide 47: When and Where You Want It
WHEN AND WHERE YOU WANT IT Free in-resort delivery or slopeside pick-up and drop-off every day In-Resort Delivery Slopeside Pick-Up and Drop-Off
Slide 48: At Your Fingertips
AT YOUR FINGERTIPS From when and where to gear selection, boot fit, and delivery details
Slide 49: Lower Cost
LOWER COST Compelling value with lower cost than average cost of owning or renting gear Annual Membership: $50/person Comparative Price Points Illustrative Example – 4 days of Adult gear use Daily gear usage fee -35% $415 • Adult: $55 / day $360 • Child: $45 / day $270 Total cost of membership less
Slide 50: FY24 Pilot Initial Learnings
FY24 PILOT INITIAL LEARNINGS Business insights for launch in FY25 Logistics Design and Enablement • Inventory precise tracking of gear status and location • Delivery time slot management • Predictive maintenance • Gear movement for efficiency between resorts Guest and Gear Journey • Integration of g
Slide 51: FY24 Pilot Initial Learnings: guest insights
FY24 PILOT INITIAL LEARNINGS Guest insights for launch in FY25: strong initial satisfaction from both renters and owners Comparison: My Epic Gear vs. Owning or Renting Rent Own How would you rate your My Epic How would you rate your My Epic Gear membership compared to Gear membership compared to you
Slide 52: Capital Investment
CAPITAL INVESTMENT CY24 capital investments enable fulfillment of new premium gear and guest experience CY24 investments planned to support new business growth and scalability • Logistics and technology infrastructure to deliver transformational improvement to the gear fulfillment experience include
Slide 53: FY25 Launch
FY25 LAUNCH The gear you want. When you want it. Where you want it. Vail Whistler Blackcomb Northstar Beaver Creek Park City Mountain Stowe Breckenridge Crested Butte Okemo Keystone Heavenly Mount Snow New! Kids Gear Season Membership: $50/person Daily usage $55 adults and $45 for kids Year One Memb
Slide 54: My Epic Gear is the future of ski and ride gear
MY EPIC GEAR IS THE FUTURE OF SKI AND RIDE GEAR Transformational model that increases guest loyalty and lifetime value New addressable market that is an attractive value proposition for both Owners and Renters Incremental opportunity with strategic advantage to differentiate the guest experience Hig
Slide 55: Transform Resource Efficiency
TRANSFORM RESOURCE EFFICIENCY
Slide 56: Margin Expansion
MARGIN EXPANSION Scalable operating leverage, cost management, and resource efficiency drive margin growth Margins have expanded over time • Operating leverage of the business Resort EBITDA Margin COVID- Impacted 33.1% • Scalable centralization and cost management 31.4% 30.7% 31.1% 32.6% 28.7% 28.5%
Slide 57: Three key priorities for resource efficiency
FOCUSED ON THREE KEY PRIORITIES FOR RESOURCE EFFICIENCY We are at a unique time to transform resource efficiency Workforce Management Guest Self-Service Automation Optimize talent Enable self-service Improve efficiency, allocation and that improves the safety, and cost staffing levels based guest ex
Slide 58: Workforce Management
WORKFORCE MANAGEMENT Optimize resort staffing to elevate guest service, employee experience, and labor efficiency Implementing technology and best practices to capture significant efficiency • Labor Productivity: Systematic approach to staffing based on guest demand and business needs • Employee Eng
Slide 59: Workforce Management Implementation
WORKFORCE MANAGEMENT IMPLEMENTATION Introduced workforce management technology across all North American resorts in FY24 Completed two year pilot at Whistler Blackcomb and Park City in FY23 Implemented technology across all 37 North American resorts in FY24 FY24 focus on scheduling for key departmen
Slide 60: Workforce Management Initial Learnings
WORKFORCE MANAGEMENT INITIAL LEARNINGS Solution enables improved experience and significant efficiency Demand alignment functionality ensures scheduling is aligned to volume expectations and minimizes overtime utilization Schedule optimization provides managers with optimal labor plan based on busin
Slide 61: Workforce Management Future Opportunity
WORKFORCE MANAGEMENT FUTURE OPPORTUNITY Multi-year opportunity to optimize talent allocation and staffing levels Optimal Labor Allocation • Flex to demand and reduce overtime hours • More efficient hiring and training • Versatile workforce with skills to span multiple areas • Implement best practice
Slide 62: Guest Self-Service
GUEST SELF-SERVICE Enable self-service that improves guest experience and increases efficiency My Epic App Mobile Pass & Direct to Lift My Epic Mobile Lift Tickets Benefit Tickets Assistant Indispensable Scan hands free at the lift, Pass holders skiing Guest service Epic Digital platform no ticket l
Slide 63: Automation
AUTOMATION Ability to enhance the guest and employee experience through automation Automation that scales across integrated network, including: • Food & Beverage technologies: piloting mobile ordering, flexible point of sales, and guest self check-out • Marketing automation platform • Corporate supp
Slide 64: Differentiate the Guest Experience
DIFFERENTIATE THE GUEST EXPERIENCE
Slide 65: Committed to reinvest in the experience
COMMITTED TO REINVEST IN THE EXPERIENCE Our investments focus on frontline talent, technology, and on-mountain capital Frontline Talent Technology On-Mountain
Slide 66: Frontline Talent
Frontline Talent VAILRESORTS Conrsnoes | 2024
Slide 67: Frontline talent is the core of our mission
FRONTLINE TALENT IS THE CORE OF OUR MISSION Our priority is to make Frontline Talent a Strategic Advantage Our company Mission is to create an Experience of a Lifetime Vail Resorts Employee Mix 1 As a service company, our Frontline Talent is core to this Mission Frontline Talent represents 88% of ou
Slide 68: Invested in Frontline Talent
INVESTED IN FRONTLINE TALENT Investments in wages, benefits, leadership and career development In 2022, invested in an average wage increase of nearly 30% across hourly team members in North America • $20 per hour minimum wage for all employees at all 37 North American Resorts • $21 per hour minimum
Slide 69: New data-driven hiring
ADDITIONALLY, LAUNCHED NEW DATA-DRIVEN HIRING Gathered hiring and performance data to enable hiring Top Frontline Talent New Talent Collect Data and Hired Top Talent Assessment Process Correlate Data
Slide 70: Results of investment and new hiring approach are strong
RESULTS OF INVESTMENT AND NEW HIRING APPROACH ARE STRONG Achieved full staffing with Top Talent, record high Return Rate and Employee Engagement Frontline Talent Highest Return Rate 1 Frontline Talent Highest Engagement Scores 2 +7 pts +11 pts FY23 FY24 Dec 2021 Jan 2022 Mar 2022 Jan 2023 Feb 2023 D
Slide 71: Frontline talent as a strategic advantage
OUR PRIORITY IS TO MAKE FRONTLINE TALENT A STRATEGIC ADVANTAGE Better, more loyal, more engaged talent drive guest experience and resource efficiency Hire Top Frontline Talent Invest in Frontline Talent Differentiated Guest Leadership and Career Experience Development Fostering High Employee Resourc
Slide 72: Technology
Technology VAILRESORTS Conrsnoes | 2024
Slide 73: Vision to create loyalty through Epic digital platform
VISION TO CREATE LOYALTY THROUGH EPIC DIGITAL PLATFORM An indispensable, one-stop hub for the Guest Experience Mobile Pass My Epic Assistant My Epic Gear Conditions & Grooming Personal Stats Lift Line Wait Times Interactive Trail Maps
Slide 74: Launched industry leading Mobile Pass this winter
LAUNCHED INDUSTRY LEADING MOBILE PASS THIS WINTER Hands-free lift access on mobile device using Bluetooth Low Energy technology FY24 launched at all U.S. resorts with improved guest experience • No waiting in Ticket Lines • Buy online, activate on phone • Scan hands free with Bluetooth low energy te
Slide 75: Advanced AI has accelerated dramatically
ADVANCED AI HAS ACCELERATED DRAMATICALLY Opportunity to significantly strengthen our 2018 EMMA technology concept Generative AI Which runs are groomed? Tool There are lots of great groomed trails today, like Sawbuck and Ripsaw. Find a full list of groomed trails here. Have fun! What’s the closest re
Slide 76: New for FY25
NEW FOR FY25 Guest service at your fingertips, anytime, anywhere – powered by Advanced AI and experts
Slide 77: On-Mountain
VAILRESORTS Conrsnoes | 2024
Slide 78: Whistler Blackcomb
WHISTLER BLACKCOMB Increased on-mountain capacity at central part of resort 1 Jersey Cream (CY24) 1 Replacing 4-person lift with a high-speed 6-person lift $169M invested since acquisition of resort in 2017 1 Select key projects: • Blackcomb and Creekside Gondolas • 5 other new and upgraded lifts •
Slide 79: Park City Mountain
PARK CITY MOUNTAIN Improved access for Canyons Village developments and enhanced snowmaking Subject to approvals 1 2 Sunrise Gondola (CY25) Snowmaking Upgrades (CY24) Replacing fixed-grip Automated snowmaking to 2-person lift with new enhance the early season guest 10-person gondola in experience pa
Slide 80: Hunter
HUNTER Lift upgrades and snowmaking enhancements to increase capacity and improve experience Subject to approvals 1 3 Broadway Lift (CY24) E-Lift (CY24) 3 1 Replacing fixed-grip 4-person lift 2 Replacing fixed grip with a high-speed 6-person lift 2-person lift with relocated fixed grip 4-person lift
Slide 81: Additional On-Mountain Investments
ADDITIONAL ON-MOUNTAIN INVESTMENTS Subject to approvals CY24 Capital Projects Overview and Impact to Guest Experience • Adding 10-lane tubing experience and renovating existing Alpine Afton Alps Building to create 200-seat restaurant • Improving snowmaking capacity and revamping Milez and Natschen A
Slide 82: Expand the Resort Network
EXPAND THE RESORT NETWORK
Slide 83: Acquisition Track Record
ACQUISITION TRACK RECORD Disciplined build-out of guest-centered resort network Foundation FY12 FY16 FY20 FY24 5 7 12 37 42 RESORTS RESORTS RESORTS RESORTS RESORTS 1 • 4 Colorado • Expanded Tahoe • Added Park City • Added Whistler • Expanded Into Europe Resorts Regional • Established Urban Blackcomb
Slide 84: Key Acquisition Criteria
KEY ACQUISITION CRITERIA Highly disciplined approach to select strategic network additions Target high impact destination resorts and regional ski areas that enhance network for guests Resort targets must meet specific criteria to drive value creation • Location and accessibility • Brand • Network c
Slide 85: Network Expansion Priorities
NETWORK EXPANSION PRIORITIES Meaningful opportunity for continued global network expansion to enhance value for guests NORTH EUROPE ASIA AMERICA • Largest ski market • Third largest ski market • Second largest ski market • Compelling sport participation • Draws international • High-end destination s
Slide 86: Building Connected Global Network
BUILDING CONNECTED GLOBAL NETWORK 1, 2 China ~17 Million Skier Visits Japan ~30 Million Central Europe Skier Visits ~195 Million North America Skier Visits ~70 Million Skier Visits Australia ~2 Million Skier Visits South America ~5 Million Skier Visits 1. Skier visits based on 5-year average. Centra
Slide 87: Europe Opportunity
EUROPE OPPORTUNITY Largest ski market with compelling sport participation and mix of international skiers Compelling market with largest size, sport participation and mix of international skiers in the world • ~1,000 ski resorts in Europe, including some of the best ski resorts in the world, with ~1
Slide 88: Executing on European Opportunity
EXECUTING ON EUROPEAN OPPORTUNITY Making significant progress in building destination resort network in largest ski market Established strong European resort partnerships over the past decade • Built foundational relationships and learned from partners Existing partnerships complemented by additions
Slide 89: Andermatt-Sedrun Opportunity
ANDERMATT-SEDRUN OPPORTUNITY Renowned Swiss destination resort uniquely positioned for transformational growth Unique high-end destination experience with favorable operating model and transformational growth opportunity • Centrally located less than 90 minutes from Zurich, Lucerne, and Lugano • Rel
Slide 90: Crans-Montana Opportunity
CRANS-MONTANA OPPORTUNITY Iconic Swiss destination ski resort with unique heritage and growth potential Easily accessible from major population centers • ~2.5 hours from Geneva and Andermatt-Sedrun, and less than 4 hours from Milan and Zurich Attractive operating model and resort dynamics • Relative
Slide 91: Asia Opportunity
ASIA OPPORTUNITY Strategic existing network connections to Japan; compelling growth in Asia Japan is third largest ski market in world with strong network connections • Large draw from Australia skiers where Vail Resorts has 3 owned and operated resorts • Close proximity to rapidly growing Asia skie
Slide 92: North America Opportunity
NORTH AMERICA OPPORTUNITY Increase network strength and expand skier reach in targeted geographies Second largest ski market in the world with high-end destination skiers and vertically integrated resorts Targeting select high impact destination resorts and regional ski areas that enhance the networ
Slide 93: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION
Slide 94: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Disciplined approach to cash flow generation and value creation Generate strong free cash flow to: • Reinvest in the business • Maintain flexible capital structure for growth and network expansion • Return excess capital to shareholders • Committed to quarterly dividend
Slide 95: Strong Free Cash Flow Generation
STRONG FREE CASH FLOW GENERATION Differentiated model drives high flow through on modest volume growth Revenue growth from growing guest base and pricing Free Cash Flow Growth 1,2,3,4 for experience and limited supply ($ in Millions) IMPACTED Business model has significant operating leverage BY COVI
Slide 96: Disciplined Capital Reinvestment
DISCIPLINED CAPITAL REINVESTMENT Consistent reinvestment to elevate guest experience and maintain competitive advantage Core Capital Investment 1,2 Core capital plan grows annually with ($ in Millions) inflation excluding acquisitions +3% $189-$194 Consistently reinvesting in business, with $180-$18
Slide 97: Return of Capital to Shareholders
RETURN OF CAPITAL TO SHAREHOLDERS Committed to returning excess capital to shareholders Dividend as primary form for returning capital Capital Returned to Shareholders1 ($ in Millions) • Leading annual dividend yield in Travel & 814 Leisure industry Impacted by COVID-19 • Consistently increased divi
Slide 98: Positioned for Long-Term Growth
POSITIONED FOR LONG-TERM GROWTH Business model generates growth and stability Strong organic free cash flow enabled by fundamentals of the business • Revenue growth: (1) modest visitation growth with greater advance commitment (2) strategic pricing and product offerings (3) capture of ancillary spen
Slide 99: Environmental and Social Responsibility
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY
Slide 100: Environmental and Social Responsibility
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY Committed to investing in long-term growth and sustainability of the ski industry Sustainability Community Inclusive Employee Support Access Foundation Zero net operating Partner to help local Increase talent Promote health and footprint by 2030 communities th
Slide 101: The EpicPromise Journey
THE EPICPROMISE JOURNEY 2015 > 1% for the Forest partnership with The Nature Conservancy 2023 » 100% renewable electricity across North begins P American resorts » Youth Access. Program hosted 11.3K = 2010-11 ei 2006-07 2017 2021 underrepresented » Environmental Team » Tamarack Lodge » Commitment yo
Slide 102: Sustainability
SUSTAINABILITY Zero net operating footprint by 2030 Announced in 2017, Commitment to Zero is our bold goal to reach a zero net operating footprint by 2030, including zero net emissions, zero waste to landfill, and zero net operating impact on forests and habitat 100% 15% 6.1M RENEWABLE ENERGY EFFICI
Slide 103: Community Support
COMMUNITY SUPPORT Partnering to help local communities thrive Promote health and sustainability of our resort communities • Funded $9.5M in total community support grants in FY23 • Raised $1.9M in community funding through our guest donation program • Directed $1.3M towards progress on the top issue
Slide 104: Inclusive Access
INCLUSIVE ACCESS Investing in the future of the sport Increasing diversity of our talent to expand the diversity of the sport • Industry-leading gender diversity • Increased BIPOC representation at all career levels • Launched employee resource and affinity groups The future of the sport is inclusio
Slide 105: Employee Foundation
EMPLOYEE FOUNDATION A passion for employee well-being EpicPromise Employee Foundation supports team members and dependents through grants and scholarships • $1.1M in grants and scholarships provided in FY23 • 180 academic scholarships and 242 hardship relief grants $690K $103K $338K AWARDED FOR 242
Slide 106: Employee Epic Wellness
EMPLOYEE EPIC WELLNESS Programs that support our employees through mind, body, and wallet "Through proactive and practical means, Vail Resorts has driven mental health to be cared for in the same manner as physical wellbeing. Destigmatizing, normalizing and expanding available resources empowers our
Slide 107: Slide 107
Slide 108: Investment Highlights
INVESTMENT HIGHLIGHTS Global industry leader with a differentiated business model, positioned for long-term growth Industry Leader in Niche Global Market Significant Growth • Leading global mountain resort operator with 42 owned & Opportunities operated resorts across North America, Australia, and E
Slide 109: Appendix
APPENDIX
Slide 110: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Presented below is a reconciliation of net income attributable to Vail Resorts, Inc. (calculated in accordance with U.S. GAAP) to Total Reported EBITDA for the years ended July 31, 2023, 2022, 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012, 2
Slide 111: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Presented below is a reconciliation of net income attributable to Vail Resorts, inc. (calculated in accordance with U.S. GAAP) to Total Reported EBITDA for fiscal 2024 guidance’. (In thousands) (Unaudited) Fiscal 2024 Guidance for the Year Ending July 31
Slide 112: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Presented below is a reconciliation of net income attributable to Vail Resorts, Inc. (calculated in accordance with U.S. GAAP) to Total Reported EBITDA for the three months ended January 31, 2024 and 2023. (in thousands) (Unaudited) Three Months Ended Ja
Slide 113: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Presented below is a reconciliation of Resort Reported EBITDA less Capital Expenditures less Cash Interest Expense ("Free Cash Flow") for fiscal 2024 guidance midpoint and actual results for the years ended July 31, 2023, 2022, 2021, 2020, 2019, 2018, 20
Slide 114: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Presented below is a reconciliation of Free Cash Flow to Free Cash Flow Yield per Share for fiscal 2024 guidance midpoint and actual results for the years ended July 31, 2023, 2022, 2021, 2020, 2019, 2018, 2017, 2016, 2015, and 2014. (In thousands, excep
Slide 115: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Presented below is a reconciliation of Resort EBITDA Margins for fiscal 2024 guidance midpoint and actual results for the years ended July 31, 2023, 2022, 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012, and 2011. (In thousands) (Unaudited) (I