Emerald Holding, Inc. · NYSE:EEX
Emerald — Investor Presentation (October 2020)
27 slides from Emerald's investor presentation, Oct 1, 2020
Slide 1: Emerald Holding, Inc. September 2020
Emerald Holding, Inc. September 2020 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 12 months to optimize operations and build organ
Slide 4: Investment Highlights
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 Turnaround Momentum & New Data-Driven Strategic Initiatives 1 2 3 4 5 6
Slide 5: Significant Opportunity In Large, Fragmented Market
Steady Attendee Growth Strong Pre-COVID Growth Trajectory The US Is The Largest Trade Show Market Significant Opportunity In Large, Fragmented Market Sources: AMR International (Globex 2020 Update) The Company is the largest US-based player – the largest B2B trade show market in the world, by far Co
Slide 6: Diversified Portfolio of Market-Leading Brands
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 revenues
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
Experienced Management Team 5 Brian Field Interim President & CEO Joined the Company in June 2019 as Chief Operating Officer Has over 20 years of experience across both B2B and B2C industries, including 8 years at UBM Americas as COO and previously as Managing Director of UBM Medica Earlier in his c
Slide 10: Attracting Experienced Talent – Recent Additions
Attracting Experienced Talent – Recent Additions 5 Mitch Gendel General Counsel & Corporate Secretary 30+ years of legal experience in supporting marketing companies Previous experience: MDC Partners, Interpublic Group of Companies Lori Silva EVP, Retail 30+ years of events and media experience Prev
Slide 11: Turnaround Momentum & New Data-Driven Strategic Initiatives
Turnaround Momentum & New Data-Driven Strategic Initiatives 6
Slide 12: Response to COVID-19
In response to COVID-19, immediate efforts around Cash preservation and cost mitigation Customer and operational triage with the surge of event cancellations and postponements Event cancellation insurance claim filings expected to restore majority of budgeted amount of gross profit in 2020 and 2021
Slide 13: Resetting the Table
The transition is well underway New management team 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 Initiatives in place expected to return Emera
Slide 14: Strategy Reset
Strategy Reset Focus on Customer Satisfaction Diversify Revenue Streams Operate Efficiently and Cost Effectively Pursue Attractive Acquisitions 1 2 3 4 Financial Goals: Sustainable organic revenue growth, at or above industry levels Solid and consistent growth in Adjusted EBITDA at attractive profit
Slide 15: Growth Strategy #1: Focus on Customer Satisfaction
Strategy Reset Growth Strategy #1: Focus on Customer Satisfaction Implement “Event Plans” that standardize marketing and sales plan Track key customer and financial metrics to ensure improved performance Enhance post-event research and analysis Refine and consolidate customer data to improve quality
Slide 16: Growth Strategy #2: Diversify Revenue Streams
Strategy Reset 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 and spin-off hosted buyer even
Slide 17: Growth Strategy #3: Operate Efficiently & Cost Effectively
Strategy Reset Growth Strategy #3: Operate Efficiently & Cost Effectively Improve financial rigor Standardize procedures and share best practices across portfolio Critically assess the impact/ROI of all spending and investments Centralize activities to drive efficiencies and scalability Build out pr
Slide 18: Growth Strategy #4: Pursue Attractive Acquisitions
Strategy Reset Growth Strategy #4: Pursue Attractive Acquisitions Focus on acquisitions that meaningfully strengthen our existing brands, or where Emerald adds incremental value that should enhance the acquisition target’s rate of growth Opportunistically acquire trade shows in financial distress Pu
Slide 19: Summary of 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 20: Update on Event Cancellation Policy and Coverage
Update on Emerald’s Event Cancellation Policy and Coverage Active Claims Processing Ongoing; Initial Confirmation of Coverage 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. Th
Slide 21: Insurance Illustrative Calculation
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 conferenc
Slide 22: Second Quarter 2020 Financial Results
Second Quarter 2020 Financial Results
Slide 23: Second Quarter 2020 Highlights and Current Liquidity Position
Second quarter and YTD results negatively impacted by cancellations due to the COVID-19 pandemic Continue to focus on improving operational efficiencies across the company through the first half of 2020 Successfully reduced Emerald’s annual fixed cost run rate by over $15 million Issued preferred st
Slide 24: Appendix
‘ Appendix @ EMERALD
Slide 25: Adjusted Net Income
Adjusted Net Income Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in millions) (share data in thousands, except per share data) (unaudited) Net income (loss) $ 9.9 $ 11.4 $ (560.2 ) $ 37.9 Add (deduct): Stock-based compensation 1.1 2.6 2.7 4.2 Deferred revenue ad
Slide 26: Adjusted EBITDA
Adjusted EBITDA Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 (dollars in millions) (unaudited) Net income (loss) $ 9.9 $ 11.4 $ (560.2 ) $ 37.9 Add (deduct): Interest expense 5.6 7.8 12.3 15.8 Provision for (benefit from) income taxes 3.2 5.2 (51.6 ) 13.9 Goodwill impairme
Slide 27: Adjusted Diluted Earnings
Adjusted Diluted Earnings Three Months Six Months Ended June 30, Ended June 30, 2020 2019 2020 2019 (dollars in millions) (share data in thousands, except per share data) (unaudited) Net income (loss) and Comprehensive income (loss) attributable to Emerald Holding, Inc. $ 9.9 $ 11.4 $ (560.2 ) $ 37.
Emerald Holding — Investor Presentation (October 2020) on 6ix