IN INVES VESTOR PRES ESEN ENTAT ATIO ION March 2018 ch 2018 - PowerPoint PPT Presentation

IN INVES VESTOR PRES ESEN ENTAT ATIO ION March 2018 ch 2018 1 1

FORWARD-LOOKING STATEMENTS This presentation contains a number of forward-looking statements. Words, and variations of words, such as “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “estimate,” “anticipate,” “deliver,” “seek,” “aim,” “potential,” “target,” “outlook,” and similar expressions are intended to identify our forward-looking statements. These forward-looking statements are not historical facts, but reflect our current estimates, projections, expectations, or trends concerning future growth, operating cash flows, availability of short-term borrowings, consumer demand, new or renewal business, investment policies, productivity improvements, ongoing cost reduction efforts, efficiency, competitiveness, strategic actions, acquisitions, the timing of new and damaged hospitality and attractions openings, the sufficiency of our legal reserves, projections of revenue, show rotation, same-show growth, adjusted segment EBITDA, attraction start-up costs, the realization of deferred tax assets, contributions to pension and postretirement benefit plans, legal expenses, tax rates and other tax matters, and foreign exchange rates. Actual results could differ materially from those discussed in the forward-looking statements. Viad’s businesses can be affected by a host of risks and uncertainties, many of which are beyond our control. For important factors that could cause actual results to differ materially from those described in our forward looking statements, please see our most recent annual report on Form 10-K file with the SEC. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this presentation except as required by applicable law or regulation. 2 2

NON-GAAP FINANCIAL MEASURES This document includes the presentation of “Income Before Other Items” , “Segment Operating Income” , and “Adjusted Segment EBITDA” , which are supplemental to results presented under accounting principles generally accepted in the United States of America (“GAAP”) and may not be comparable to similarly titled measures presented by other companies. These non-GAAP measures are utilized by management to facilitate period-to-period comparisons and analysis of Viad’s operating performance and should be considered in addition to, but not as substitutes for, other similar measures reported in accordance with GAAP. The use of these non- GAAP financial measures is limited, compared to the GAAP measure of net income attributable to Viad, because they do not consider a variety of items affecting Viad’s consolidated financial performance as explained below. Because these non-GAAP measures do not consider all items affecting Viad’s consolidated financial performance, a user of Viad’s financial information should consider net income attributable to Viad as an important measure of financial performance because it provides a more complete measure of the Company’s performance. Income Before Other Items is defined by management as net income attributable to Viad, before income/loss from discontinued operations, restructuring charges/recoveries, impairment charges/recoveries, acquisition transaction-related costs, integration costs, other non-recurring expenses and tax matters. Segment Operating Income is defined by management as net income attributable to Viad before income (loss) from discontinued operations, corporate activities, interest expense and interest income, income taxes, restructuring charges, impairment losses and recoveries, and the reduction for income attributable to non-controlling interest. Segment operating income is utilized by management to measure the profit and performance of Viad’s operating segments to facilitate period-to-period comparisons. Income Before Other Items and Segment Operating Income are considered useful operating metrics, in addition to net income attributable to Viad, as potential variations arising from non-operational expenses/income are eliminated, thus resulting in additional measures considered to be indicative of Viad’s performance. Adjusted Segment EBITDA is defined by management as segment operating income (defined above) before acquisition integration costs and non-cash depreciation and amortization. Adjusted Segment EBITDA is considered a useful operating metric, in addition to net income attributable to Viad, as potential variations arising from non-recurring integration costs, non-cash amortization and depreciation, and non-operational expenses/income are eliminated, thus resulting in an additional measure considered to be indicative of Viad’s segment performance. Management believes that the presentation of Adjusted Segment EBITDA provides useful information to investors regarding Viad’s results of operations for trending, analyzing and benchmarking the performance and value of Viad’s business. Management also believes that the presentation of Adjusted Segment EBITDA for acquisitions and the Glacier Skywalk enables investors to assess how effectively management is investing capital into major corporate development projects, both from a valuation and return perspective. 3 3

NON-GAAP FINANCIAL MEASURES, CONTINUED INCOME BEFORE OTHER ITEMS INCOME BEFORE OTHER ITEMS INCOME BEFORE OTHER ITEMS PER SHARE 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Millions (except per share amounts) Net Income Attributable to Viad 21.6 52.4 26.6 42.3 57.7 $ 1.06 $ 2.59 $ 1.32 $ 2.09 $ 2.83 (Income) Loss from Discontinued Operations Attributable to Viad (2.1) (11.6) 0.4 0.7 0.3 (0.10) (0.57) 0.02 0.03 0.01 Income from Continuing Operations Attributable to Viad 19.4 40.8 27.0 43.0 58.0 0.96 2.02 1.34 2.12 2.84 Other Items: Restructuring Charges, pre-tax 3.8 1.6 3.0 5.2 1.0 0.19 0.08 0.15 0.26 0.05 Impairment Charges (Recoveries), pres-tax 2.8 0.9 0.1 0.2 (29.1) 0.14 0.04 - 0.01 (1.43) Acquisition-Related and Other Non-Recurring Expenses, pre-tax 1 - 7.6 3.0 2.3 1.3 - 0.38 0.15 0.12 0.06 Tax (Benefit) Expense on Above Items (2.3) (3.8) (2.2) (2.5) 7.4 (0.12) (0.18) (0.11) (0.13) 0.37 Charge Related to Tax Reform - - - - 16.1 - 0.79 Favorable Tax Matters (0.4) (12.0) (1.6) - (1.2) (0.02) (0.59) (0.07) - (0.06) Net Loss Attributable to FlyOver Iceland Noncontrolling Interest - - - - (0.0) - - Income Before Other Items $ 23.3 $ 35.2 $ 29.3 $ 48.2 $ 53.5 $ 1.15 $ 1.75 $ 1.46 $ 2.38 $ 2.62 1 Includes the following items (pre-tax) Acquisition Integration Costs - $ 0.8 $ 0.9 $ 1.1 $ 0.3 Included in segment operating income (loss) Acquisition Transaction-Related Costs - Pursuit - - - 0.5 0.2 Included in segment operating income (loss) Acquisition Transaction-Related Costs - Corporate - 4.1 1.4 0.6 0.6 Included in corporate activities Shareholder Nomination and Settlement Agreement Costs - - 0.7 - - Included in corporate activities CEO Transition Costs - 2.7 - - - Included in corporate activities FlyOver Iceland Start-Up Costs - - - - 0.1 Included in segment operating income (loss) Fire-related business interuption expense - - - 0.1 - Included in segment operating income (loss) Acquisition-Related and Other Non-Recurring Expenses $ - $ 7.6 $ 3.0 $ 2.3 $ 1.3 Note: Certain amounts above may not foot due to rounding. 4 4

NON-GAAP FINANCIAL MEASURES, CONTINUED ADJUSTED SEGMENT EBITDA and SEGMENT OPERATING INCOME GES PURSUIT VIAD TOTAL 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Millions Net Income Attributable to Viad $ 21.6 $ 52.4 $ 26.6 $ 42.3 $ 57.7 Net Income Attributable to Noncontrolling Interest 0.1 3.2 0.4 0.5 0.5 Loss (Income) from Discontinued Operations (2.4) (14.4) 0.4 0.7 0.3 Income Tax Expense 8.3 0.1 10.5 21.3 45.9 Net Interest Expense 3.0 0.9 0.1 4.7 8.0 Impairment Charges (Recoveries) 3.8 1.6 3.0 0.2 (29.1) Restructuring Charges 0.7 1.7 3.9 5.2 1.0 Corporate Activities & Eliminations 6.8 14.3 9.7 11.1 12.8 Segment Operating Income $ 20.1 $ 31.7 $ 26.8 $ 50.2 $ 50.0 $ 21.8 $ 28.1 $ 27.8 $ 35.7 $ 47.1 $ 41.9 $ 59.9 $ 54.6 $ 85.9 $ 97.1 Segment Depreciation 19.6 20.0 20.2 21.3 26.4 6.9 7.9 7.7 12.1 16.1 26.5 27.9 27.9 33.4 42.5 Segment Amortization 0.8 2.4 6.9 8.3 10.8 0.4 0.4 0.3 0.9 1.6 1.3 2.7 7.2 9.2 12.4 FlyOver Iceland Start-up Costs - - - - - - - - - 0.1 - - - - 0.1 Fire-related Business Interruption Matters - - - - - - - - 0.1 - - - - 0.1 - Acquisition Integration & Transaction Costs - 0.8 0.9 0.6 0.2 - - - 1.1 0.4 - 0.8 0.9 1.6 0.5 Adjusted Segment EBITDA $ 40.6 $ 54.9 $ 54.8 $ 80.4 $ 87.4 $ 29.1 $ 36.4 $ 35.8 $ 49.8 $ 65.2 $ 69.7 $ 91.3 $ 90.6 $ 130.2 $ 152.6 Revenue $ 844.9 $ 944.5 $ 976.9 $ 1,054.7 $ 1,133.1 $ 108.4 $ 120.5 $ 112.2 $ 153.4 $ 173.9 $ 953.3 $ 1,065.0 $ 1,089.0 $ 1,205.0 $ 1,307.0 Adjusted Segment EBITDA Margin 4.8% 5.8% 5.6% 7.6% 7.7% 26.9% 30.2% 31.9% 32.5% 37.5% 7.3% 8.6% 8.3% 10.8% 11.7% Note: Certain amounts above may not foot due to rounding. 5 5