2014 Investor Day November 19, 2014
Forward-Looking Statements This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, growth and expansion opportunities, including internationally, future financial prospects, Liberty Interactive’s stock repurchase program and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of new products or services, the ability of TripAdvisor to monetize its website traffic, competitive issues, regulatory matters, continued access to capital on terms acceptable to Liberty TripAdvisor, TripAdvisor’s ability to capitalize on acquisition opportunities and changes in law. These forward-looking statements speak only as of the date of this presentation, and Liberty TripAdvisor expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward- looking statement contained herein to reflect any change in Liberty TripAdvisor’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Liberty TripAdvisor, including the most recent 10-Q and Registration Statement on Form S-1, for additional information about Liberty TripAdvisor and about the risks and uncertainties related to Liberty TripAdvisor’s business which may affect the statements made in this presentation. During today’s presentation we will discuss certain non -GAAP financial measures, including adjusted EBITDA. Please refer to the Appendix: TripAdvisor at the end of the TripAdvisor presentation for definitions and applicable GAAP reconciliations. The Appendix will be available on our website www.libertytripadvisorholdings.com throughout this meeting. 143
“Don’t just visit TripAdvisor, visit Liberty TripAdvisor ” Greg Maffei – President & CEO
Liberty TripAdvisor Holdings Summary LTRPA Updates LTRPA Stock Performance (Since Inception) • Spin-off from Liberty Ventures completed 2% $100 NAV % Discount August 27 th Price per share 0% $80 • BuySeasons online costume and party supply business -2% $60 included as part of spin -4% $40 • Tax-free spin-off -6% $20 • Increases shareholder value -8% $0 • Allows for possibility of future combination with TripAdvisor • Currently trading near parity with NAV (1) TRIP px LTRPA px LTRPA NAV Discount % • Raised $400m of margin loans and distributed TRIP Stock Performance Since Dec. 2012 (3) $348m attributable to Liberty Ventures • $100 Proceeds to be used by LIC for share repurchases $80 within 12 months (2) $60 $40 $20 $0 (1) Based on 73.7m diluted LTRP shares, 31.0m shares of TRIP held by LTRP, $25m valuation for BuySeasons and $354 million of corporate net debt as of 9/30/14. (2) In conjunction with this distribution, a $350 million repurchase authorization was approved for Liberty Interactive to acquire QVCA or LVNTA. However, because the $348 million of distributed cash is attributed to Liberty Ventures, QVC Group will reimburse Liberty Ventures to the extent any of these funds are used to acquire QVCA. (3) 12/11/12 transaction whereby LIC acquired voting control of TripAdvisor. 145
TripAdvisor, Inc. Highlights TripAdvisor Highlights TripAdvisor Revenue • World’s most popular travel website $1,171 • 315m monthly unique users $945 • Massive, committed audience $763 $637 • $485 User-generated content is moat with network effects • Truly global • Available in 28 languages 2010 2011 2012 2013 LTM 9/30/14 • 75% of traffic international Click-Based Advertising Display-Based Advertising Subscription and Other • Metasearch transition successfully completed TripAdvisor Adj. EBITDA (1) • Instant booking expands value for travelers and $422 suppliers $378 $351 $322 • Recently completed Viator acquisition provides $262 significant presence in tours and attractions reservation business • Lafourchette acquisition establishes meaningful 2010 2011 2012 2013 LTM 9/30/14 foothold in restaurant segment (1) For applicable definition and reconciliation, see Appendix. 146
Liberty Investment Thesis • Travel is enormous market that lends itself well to eCommerce • High quality, low cost content, hard to replicate globally • Build deeper relationships with leisure traveler and suppliers • Better monetize traffic outside of hotel shoppers ( e.g., restaurants, attractions) • International growth and scale • Attractive business model • High FCF generation • Limited capital requirements 147
November 19, 2014 148
Safe Harbor Statement Forward-Looking Statements. Our presentation today, including the slides contained herein, contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts or guarantees of future performance and are based on management's assumptions and expectations, which are inherently subject to difficult to predict uncertainties, risks and changes in circumstances. The use of words such as "intends,” “expects,” “may,” “believes,” “should,” “seeks,” “intends,” “plans,” “potential,” “will,” “projects,” “estimates,” “anticipates” or similar expressions generally identify for ward-looking statements. However, these words are not the exclusive means of identifying such statements, and any statements that refer to expectations, beliefs, plans, predictions, projections, forecasts, objectives, assumptions, models, illustrations, profiles or other characterizations of future events or circumstances are forward-looking statements, including without limitation statements relating to future revenues, expenses, margins, performance, profitability, cash flows, net income/(loss), earnings per share, growth rates and other measures of results of operations (such as, among others, EBITDA or adjusted EBITDA) and future growth prospects for TripAdvisor’s business. Actual results and the timing and outcome of events may differ materially from those expressed or implied in the forward- looking statements for a variety of reasons, including, among others, those discussed in the “Risk Factors” section of o ur Annual Report on Form 10-K, as amended. Except as required by law, we undertake no obligation to update any forward-looking or other statements in this presentation, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on forward-looking statements. Non-GAAP Measures. This presentation also includes discussion of both GAAP and non-GAAP financial measures, such as EBITDA, adjusted EBITDA, non-GAAP net income, non-GAAP EPS and free cash flow. Important information regarding TripAdvisor’s definition and use of these measures, as well as reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure are included in the press release reporting our third quarter 2014 financial results, which is available on the Investor Relations section of our website: www.tripadvisor.com. These non-GAAP measures are intended to supplement, not substitute for, GAAP comparable measures. Investors are urged to consider carefully the comparable GAAP measures and reconciliations. Industry/Market Data . Industry and market data used in this presentation have been obtained from industry publications and sources as well as from research reports prepared for other purposes. We have not independently verified the data obtained from these sources and cannot assure you of the data’s accuracy or completeness . 149
Our mission Help travelers around the world plan and have the perfect trip 150
We are the world's most popular travel website # 1 # 1 # 1 315M 1.5M+ 200M Monthly unique users 1 Accommodations 2 Reviews & opinions 28 45 75+% 2.4M 480K Different Points of International Restaurants Attractions languages sale traffic (1) Google Analytics, worldwide data, September 2014 (2) Includes 650k+ vacation rental listings 151
TripAdvisor helps travelers navigate the travel journey Research Price On the Book & Plan Compare Trip 152
Research and planning 153
People who use TripAdvisor love TripAdvisor “ Thank you TripAdvisor. “Thank you TripAdvisor!! “ See, this is why I love How else would we have You saved my stay in Paris! !” TripAdvisor. There's about found this place ?” a zero chance I would have Review by kauailover11 Review by GregRI found or tried this restaurant without reading reviews of it first .” Review by Andrew_Jameson 154
200 million reviews and opinions by travelers for travelers 115 Contributions/minute 155
Just for You provides personalized recommendations 156
TripAdvisor is everywhere travelers go 157
Price compare 158
Metasearch helps travelers compare prices and save 159
Book 160
Instant Booking 161
On the trip 162
On the trip: Attractions • 480,000 attractions • Global coverage • Global leader in bookable tours and attractions • 20,000 attractions • 1,500 destinations 163
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