EX-99.1 2 d414958dex991.htm INVESTOR PRESENTATION

Investor Presentation September 2012 Exhibit 99.1

2 Forward Looking Statements As provided by the safe harbor provision under the Private Securities Litigation Reform Act of 1995, Viad cautions readers that, in addition to historical information contained herein, this presentation includes certain information, assumptions and discussions that may constitute forward-looking statements. These forward-looking statements are not historical facts, but reflect 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, legal expenses, tax rates and other tax matters, foreign exchange rates, and the realization of restructuring cost savings. 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. Among other things, natural disasters, gains and losses of customers, consumer demand patterns, labor relations, purchasing decisions related to customer demand for exhibition and event services, existing and new competition, industry alliances, consolidation and growth patterns within the industries in which Viad competes, acquisitions, capital allocations, adverse developments in liabilities associated with discontinued operations and any deterioration in the economy, may individually or in combination impact future results. In addition to factors mentioned elsewhere, economic, competitive, governmental, technological, capital marketplace and other factors, including terrorist activities or war, a pandemic health crisis and international conditions, could affect the forward-looking statements in this press release. Additional information concerning business and other risk factors that could cause actual results to materially differ from those in the forward-looking statements can be found in Viad’s annual and quarterly reports filed with the Securities and Exchange Commission. Information about Viad Corp obtained from sources other than the company may be out-of-date or incorrect. Please rely only on company press releases, SEC filings and other information provided by the company, keeping in mind that forward-looking statements speak only as of the date made. Viad undertakes no obligation to update any forward-looking statements, including prior forward-looking statements, to reflect events or circumstances arising after the date as of which the forward-looking statements were made.

3 Viad Overview Viad Corp (NYSE: VVI) operates 2 business units: Travel & Recreation Group, comprised of Brewster, Glacier Park, and Alaska Denali Travel. Marketing & Events Group, comprised of Global Experience Specialists (GES) and affiliates.

4 Company Highlights Rapidly growing Travel & Recreation business providing high-end leisure travel experiences in and around North American national parks Global leader in producing some of the largest and most prestigious tradeshows and exhibitions Balance sheet strength $78.0 million in cash (6/30/12) 0.6% debt-to-capital (6/30/12) $0.10 per share quarterly dividend (150% increase) Recently increased from $0.04 per share quarterly Recurring revenue streams 90+% show retention rate Leading and defensible market positions

Travel & Recreation Group 5

6 Viad’s Travel & Recreation Group, comprised of Brewster, Glacier Park, Inc. and Alaska Denali Travel, offers experiential leisure travel services and rich front- country experiences to national park visitors. Travel & Recreation (T&R) Hospitality Recreational Attractions Package Tours Ground Transportation Services Services Strengths Strengths Exclusive and unique services One-of-a-kind attractions Largest concessionaire in Montana’s Glacier National Park (GNP) One of three in-holdings in Denali National Park and Preserve (Alaska) Strong cash flows and ROIC Strong operating margins Attractions offer the highest margins Hospitality margins are also strong Package Tours and Transportation margins are lower, but these businesses help drive volume to Viad’s Attractions and Hotels 2011 Revenue Mix Hospitality Attractions Transportation Packaged Tours 36% 33% 14% 17%

7 Travel & Recreation: Hospitality The Travel & Recreation Group provides lodging accommodations in and around Glacier National Park, Denali National Park and Preserve, Banff National Park and Jasper National Park. Owned Hotels Banff International Hotel Banff National Park, AB Glacier Park Lodge East Glacier, MT Grouse Mountain Lodge Whitefish, MT Mount Royal Hotel Banff National Park, AB St. Mary Lodge & Resort St. Mary, MT Prince of Wales Hotel Denali Cabins Denali National Park, AK Denali Backcountry Lodge Denali National Park, AK Glacier View Inn Jasper National Park, AB Glacier Park Concession Contract Many Glacier Hotel Glacier National Park, MT Lake McDonald Lodge Glacier National Park, MT Swift Current Motor Inn Glacier National Park, MT Rising Sun Motor Inn Glacier National Park, MT Village Inn Motel Glacier National Park, MT Total Room Count Waterton Lakes Nat’l Park, AB May – Sept 86 46 115 924 510 1,434 Location Operating Season Rooms Year-round May – Sept Year-round May – Sept Year-round May – Sept May – Sept April – Oct May – Sept May – Sept May – Sept May – Sept May – Sept 214 100 88 72 36 32 42 135 145 161 162

Travel & Recreation: GNP Concession Contract Glacier Park, Inc. (GPI) has been the chosen concessionaire in Glacier National Park since 1980. Concession contract covers all services provided by GPI within Glacier National Park 510 out of 1,017 total rooms in the Glacier National Park area are operated under the concession contract Concession contract was set to expire on 12/31/05 but has been extended on a year- to-year basis through 12/31/12; likely to be extended again through 12/31/13 (bid process is still pending) Two-day site visit for prospective bidders took place Sept 19 – 20, 2012 Possible terms for a new contract would be for 10, 15, or 20 years Viad is well-positioned for contract bid process 8

9 Travel & Recreation: Hospitality Metrics ** **Excludes 2012 Banff Int’l acquisition (162 rooms) and rooms under renovation in 2011 at Many Glacier Hotel (111 rooms). * RevPAR defined as revenues from room sales divided by the number of rooms available. Amount shown represents simple average of all T&R hospitality properties. Hospitality revenue growth is being fueled by acquisitions of new properties and improved RevPAR $28.2 $31.0 $37.4 $0 $5 $10 $15 $20 $25 $30 $35 $40 2009 2010 2011 Hospitality Revenues $124 $131 $131 924 924 1,161 700 800 900 1000 1100 1200 $100 $110 $120 $130 $140 $150 $160 $170 $180 $190 $200 2009 2010 2011 RevPAR Room Count Room Count vs. RevPAR*

10 Travel & Recreation: Attractions The Travel & Recreation Group offers unique attractions that enhance the guest experience, including: The Banff Gondola, which offers visitors an unobstructed view of the Canadian Rockies and overlooks the town of Banff, Alberta (~475,000 passengers in 2011) Tours of the Athabasca Glacier on the Columbia Icefield aboard Ice Explorers (~315,000 passengers in 2011) Boat cruises on Lake Minnewanka in Banff (~33,000 passengers in 2011) Interpretive tours in Glacier National Park on authentic 1930s red touring buses (~48,000 passengers in 2011) Coming soon: Glacier Discovery Walk

11 Travel & Recreation: Attractions Metrics Attractions Revenues # of Passengers vs. Rev per Passenger* * Rev per Passenger defined as total attractions revenue divided by number of passengers. Amount shown represents simple average of all T&R attractions. Attractions revenue growth driven by price and volume increases

12 Travel & Recreation: Transportation and Package Tours The Travel & Recreation Group provides ground transportation services to group tours and individual travelers, including: Charter motorcoach services Sightseeing Airport shuttle and other scheduled services The Travel & Recreation Group offers in-bound package tours throughout Canada and in Alaska Drives traffic to our hotels, attractions and transportation services Incorporates other tourism products/activities, including rail, skiing, sightseeing

13 Travel & Recreation: Transportation and Package Tours Transportation and Package Tours revenues are also on the rise $9.8 $12.7 $17.4 $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 2009 2010 2011 Package Tours Revenues $15.8 $14.8 $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 2009 2010 2011 $12.1 Transportation Revenues * * Includes higher revenues from transportation business related to the 2010 Winter Olympic and Paralympic Games.

14 Travel & Recreation: Acquisition Criteria • “Buy right” – location, asset, price, ROIC, and terms • Significant opportunity to add value to acquired assets • Leverage economies of scale – e.g., leveraging our major suppliers, such as our service supplier, to lower the cost of purchases, leveraging G&A • Leverage economies of scope – e.g., cross-sell overnight guests into high margin recreational attractions; cross-sell visitors at one attraction to add on another attraction; utilize our extensive sales and marketing network to drive higher occupancy & RevPAR at acquired hotels • Improve lodging amenities leading to enhanced visitor experience • Apply Viad’s T&R professional facilities management to increase efficiency / asset productivity

Marketing & Events Group

16 Marketing & Events Group: Overview The Marketing & Events Group is a leading global exhibition and tradeshow producer offering best-in-class event production, cutting-edge creative and design, and service delivery. Exhibitions & Events Official Services Contractor Exhibitor Appointed Contractor Other Marketing Services Branded Entertainment (owned touring exhibitions, works for hire) Retail (holiday installations, kiosks, retail merchandizing units) Clients include: Show organizers Corporate brand marketers Movie studios Retail shopping centers Services Services Strengths Strengths A leading market position Global reach Leading positions in US, Canada, UK and UAE Global relationships Long-term contracts and strong backlog of business Typical contract length is 3 – 5 years Revenue backlog of $1 Billion+ Good customer and industry diversity Largest single show provides less than 5% of M&E annual revenue Shows span a broad range of industries, reducing exposure to any one industry

17 Marketing & Events: Business Mix Revenues: U.S. vs. Int’l * Operating Margins: U.S. vs. Int’l * Excludes intercompany eliminations. ** EAC stands for Exhibitor Appointed Contractor. $0 $200 $400 $600 $800 $1,000 2009 2010 2011 U.S. Int'l. -6% -4% -2% 0% 2% 4% 6% 2009 2010 2011 $568.4 $571.0 $631.4 $172.6 $197.8 $218.6 -3.9% -2.7% -1.0% 5.3% 5.1% 5.2% U.S. Int'l. 73% 24% 2% 1% Exhibitions - Official Services Contracting Exhibitions - EAC** and Other Branded Entertainment Retail 2011 US Revenues by Major LOB 32% 68% 2011 Int’l Revenues by Region Canada EMEA

Marketing & Events (U.S.): Exhibitions & Events Installing & Dismantling Logistics/Transportation Exhibit Rental Furnishings & Carpet Graphics Lighting Storage Refurbishing ROI Analysis Show Planning & Production Look & Feel Design Layout & Floor Plan Designs Furnishings & Carpet Signage Show Traffic Analysis *Note: Exclusive services vary by show Material Handling (Drayage) Electrical Distribution Cleaning Plumbing Overhead Rigging Booth Rigging Exhibit Construction Exhibit Program Development & Design Brand Planning Integrated Marketing Campaigns At-Event Activities 18 Show Organizer: ~20% of M&E U.S. revenue Exhibitor Exclusive:* ~33% of M&E U.S. revenue Exhibitor Discretionary: ~20% of M&E U.S. revenue Program Exhibitors: ~25% of M&E U.S. revenue GES competes with other vendors to provide non- exclusive services to Exhibitors Official Services Contract with Show Organizer gives GES the exclusive right to provide services to Show Organizer and Exhibitors

Marketing & Events (U.S.): Industry Size/Growth Viad’s Marketing & Events Group derives the majority of its revenues from the $11.9* Billion Exhibition and Events Industry. Graph Data Source: Center for Exhibition Industry Research (CEIR), CEIR Index. 19 * Data Source: 2010 IBIS Report Post-recession growth rates are stronger than in recent history 2.1% 1.5% 2.6% 1.9% 11.5% 1.2% 3.4% 2.4% 1.7% 1.6% 2.8% 10.4% 0.7% 2.5% 0.6% 1.5% 2.8% 3.8% 7.1% 3.2% 3.2% 14% 12% 10% 8% 6% 4% 2% 0% 2% 4% 6% 2005 2006 2007 2008 2009 2010 2011 Net Sq. Ft. Exhibitors Attendees - - - - - - - - - - - - - - - - Year-over- Year Change in Industry Metrics

20 Marketing & Events (U.S.): Show Revenues 8.3% growth in Base Same- Show revenues 6/30/12 YTD GES services ~5 to ~15 non-annual shows >$250k in rev. each year Major non-annual shows include: Every 2 Years: • IMTS – Q310, Q312 • IWF – Q310, Q312 • PROMAT – Q109, Q111, Q113 Every 3 Years: • CONEXPO-CON/AGG – Q111, Every 4 Years: • MINExpo – Q312 Strong base of recurring revenues, with long-term contracts and high renewal rate Q114 Shows That Occur in the Same Quarter, Same City Each Year (Base Same-Shows) Shows That DO NOT Occur in the Same Quarter, Same City Each Year (all the other shows) $107 $36 $44 $29 $94 $40 $43 $36 $100 $46 $49 $38 $112 $49 $160 $140 $120 $100 $80 $60 $40 $20 $0 $49 $54 $34 $48 $38 $54 $58 $41 $82 $57 $40 $50 $49 $66 $160 $140 $120 $100 $80 $60 $40 $20 $0 Same Qtr - Dif City Same Yr - Dif Qtr Non-Annual & Other

21 Marketing & Events (U.S.): Revenue Growth $22.5 $26.9 $20.9 $0 $10 $20 $30 $40 2009 2010 2011 Shows That Occur in the Same Year, Different Quarter Each Year $216.0 $212.1 $232.3 $0 $50 $100 $150 $200 $250 $300 2009 2010 2011 Shows That Occur in the Same Quarter, Same City Each Year (Base Same- Shows) $94.5 $90.3 $94.9 $0 $30 $60 $90 $120 2009 2010 2011 Shows That Occur in the Same Quarter, Different City Each Year $67.1 $74.8 $112.3 $0 $25 $50 $75 $100 $125 2009 2010 2011 Non- Annual Shows & Other

22 Marketing & Events (U.S.): Margin Improvement Key Initiatives Focus on labor management to improve variable costs Drive down fixed expenses through consolidation of service delivery network Tight control over discretionary SG&A Increase show floor penetration Expect incremental margins of 20%+ on revenues beyond current revenue run rate. Variable Labor Other Variable Costs Semi Variable Costs Fixed Costs Cost Structure (2011) -

23 Marketing & Events (U.S.): Labor Management Key Initiatives • Labor productivity gains at show site • Rigorous & strategic planning • Introduction of new tools to support planning, measurement and benchmarking • Mutually favorable union agreements • Wage / benefits rates • Work rules 37.4% 36.9% 36.8% 30.0% 32.0% 34.0% 36.0% 38.0% 40.0% 2009 2010 2011 Variable Labor as a % of Revenues (Base Same-Shows)

24 Marketing & Events (U.S.): Reduction in Overhead Key Initiatives Optimize U.S. Service Delivery Network • Reduce invested capital and operating expenses through rationalization of facilities, inventory and equipment • Achievements to date: • ~30% reduction in facilities square footage since 2008 • ~$6 million facility cost reduction 2012 vs. 2008 • Analysis is ongoing Tight control over discretionary SG&A 0.0 0.5 1.0 2.0 2.5 3.0 3.5 4.0 2008 2012 U.S. Service Delivery Network Sq. Ft. 1.5 3.6 2.5

25 Marketing & Events Group: Profit Improvement Total M&E Revenues Total M&E Operating Margins Targeting 5% operating margins for Total M&E in 2014, driven by initiatives to improve U.S. profitability $730.5 $756.5 $840.6 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2009 2010 2011 -1.8% -0.7% 0.6% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 2009 2010 2011

Financials 26

27 Selected Annual Financials Revenues Operating Income Income Before Other Items Per Share* Adjusted EBITDA* *A reconciliation of this non-GAAP measure can be found in the Appendix. $805.8 $844.8 $942.4 $0 $200 $400 $600 $800 $1,000 $1,200 2009 2010 2011 $4.2 $14.8 $25.4 $0 $5 $10 $15 $20 $25 $30 $35 2009 2010 2011 ($0.11) $0.19 $0.55 ($0.30) ($0.20) ($0.10) $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 2009 2010 2011 $12.8 $32.3 $43.3 $0 $10 $20 $30 $40 $50 $60 2009 2010 2011

28 Selected Quarterly Financials Revenues Operating Income Income Before Other Items Per Share* Adjusted EBITDA* *A reconciliation of this non-GAAP measure can be found in the Appendix $218.3 $215.1 $187.0 $290.1 $238.7 $216.2 $197.4 $268.8 $246.5 $0 $50 $100 $150 $200 $250 $300 $350 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 $12.5 $14.5 $0.8 $23.1 $14.8 $9.7 ($4.3) $8.9 $16.0 -$10 -$5 $0 $5 $10 $15 $20 $25 $30 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 $7.7 $9.9 ($3.1) $17.3 $9.9 $5.4 ($7.2) $5.5 $10.5 - - $0 $5 $10 $15 $20 $25 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 $0.17 $0.23 ($0.20) $0.49 $0.26 $0.06 ($0.27) $0.12 $0.29 ($0.40) ($0.30) ($0.20) ($0.10) $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 $5 $10

29 Selected Balance Sheet Highlights As of June 30, 2012: Cash: $78.0 million Shares Outstanding: 20.3 million Debt: $2.6 million Debt to Capital: 0.6% Free Cash Flow* CapEx *A reconciliation of this non-GAAP measure can be found in the appendix ($30.9) $23.0 $10.0 ($40) ($30) ($20) ($10) $0 $10 $20 $30 2009 2010 2011 $21.3 $17.0 $21.5 $0 $5 $10 $15 $20 $25 2009 2010 2011

30 Disciplined Capital Deployment Selective investments to support organic growth Strategic acquisitions after careful due diligence Strategic fit in or adjacent to Viad’s core businesses Good cultural fit Economic return criteria met Quarterly Dividend $0.10 per share effective October 2012 (150% increase over prior quarterly dividend of $0.04 per share) Share Repurchases 250,760 shares were repurchased in 2011 356,300 shares were repurchased in 2010 2.8 million shares were repurchased between 2006- 2008 53,621 shares remaining under announced authorization as of June 30, 2012 Viad’s strong balance sheet enables the company to employ a disciplined capital deployment strategy. Debt-to-Capital Net Cash: $103.6M $136.8M $97.1M 3.2% 2.3% 0.8% 0.0% 1.0% 2.0% 3.0% 4.0% 2009 2010 2011

Appendix 31

32 Reconciliation of Income Before Other Items Per Share (1) (1) This non-GAAP measure should be considered in addition to, but not as a substitute for, a similar measure presented in accordance with GAAP. 2009 2010 2011 Income (Loss) Before Other Items per Share: Income (loss) from continuing operations attributable to Viad $(5.28) $0.01 $0.43 Impairment charges, net of tax 4.92 0.01 -- Restructuring charges, net of tax 0.43 0.13 0.12 Resolution of tax matters (0.18) 0.04 -- Income (loss) before other items $(0.11) $0.19 $0.55 Weighted average outstanding and potentially dilutive common shares (thousands) 19,960 20,277 20,055

33 Reconciliation of Income Before Other Items Per Share (1) (1) This non-GAAP measure should be considered in addition to, but not as a substitute for, a similar measure presented in accordance with GAAP. Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Income (Loss) Before Other Items per Share: Income (loss) from continuing operations attributable to Viad $0.15 $0.23 $(0.24) $0.48 $0.22 $0.06 $(0.35) $0.05 $0.27 Impairment charges, net of tax -- -- 0.01 -- -- -- -- -- -- Restructuring charges, net of tax 0.02 0.01 0.05 0.01 0.04 -- 0.08 0.07 0.02 Resolution of tax matters -- (0.01) (0.02) -- -- -- -- -- -- Income (loss) before other items $0.17 $0.23 $(0.20) $0.49 $0.26 $0.06 $(0.27) $0.12 $0.29 Weighted average outstanding and potentially dilutive common shares (thousands) 20,375 20,309 19,709 20,080 20,121 20,033 19,569 19,917 19,961

34 Reconciliation of Adjusted EBITDA (1) (1) This non-GAAP measure should be considered in addition to, but not as a substitute for, a similar measure presented in accordance with GAAP. Adjusted EBITDA ($ Millions) 2009 2010 2011 Net income (loss) attributable to Viad $(104.7) $0.4 $9.2 Income from discontinued operations (0.7) (0.3) (0.5) Impairment charges 116.9 0.3 -- Interest expense 1.7 1.8 1.5 Income taxes (28.6) 1.7 3.9 Depreciation and amortization 28.3 28.3 29.1 Adjusted EBITDA $12.8 $32.3 $43.3 Note: Calculated amounts presented above are calculated using dollars in thousands.

35 Reconciliation of Adjusted EBITDA (1) (1) This non-GAAP measure should be considered in addition to, but not as a substitute for, a similar measure presented in accordance with GAAP. Adjusted EBITDA ($ Millions) Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Net income (loss) attributable to Viad $3.0 $4.8 $(4.4) $9.8 $4.5 $1.2 $(6.3) $1.0 $6.1 Income from discontinued operations -- -- (0.3) -- -- -- (0.5) -- (0.6) Impairment charges -- -- 0.3 -- -- -- -- -- -- Interest expense 0.5 0.5 0.4 0.4 0.4 0.4 0.3 0.4 0.3 Income taxes 1.8 1.9 (2.2) 5.9 2.6 0.5 (5.1) 0.5 2.3 Depreciation and amortization 7.2 7.3 6.9 7.0 7.3 7.6 7.2 7.0 8.0 Adjusted EBITDA $12.5 $14.5 $0.8 $23.1 $14.8 $9.7 $(4.3) $8.9 $16.0 Note: Calculated amounts presented above are calculated using dollars in thousands.

36 Reconciliation of Free Cash Flow (1) (1) This non-GAAP measure should be considered in addition to, but not as a substitute for, a similar measure presented in accordance with GAAP. Free Cash Flow ($ Millions) 2009 2010 2011 Net cash provided by (used in) operating activities $(6.2) $43.3 $34.7 Less: Capital expenditures (21.3) (17.0) (21.5) Dividends paid (3.3) (3.3) (3.2) Free cash flow (outflow) $(30.9) $23.0 $10.0 Note: Calculated amounts presented above are calculated using dollars in thousands.