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Wells Fargo 2009 Consumer

Growth Conference

Jeff Jones
Chief Financial Officer

October 27, 2009

Non-GAAP Financial Measures

ƒ The Company uses the terms “Reported EBITDA” and “Net Debt” when
reporting financial results in accordance with Securities and Exchange
Commission rules regarding the use of non-GAAP financial measures. The
Company defines Reported EBITDA as segment net revenue less segment
operating expense plus or minus segment equity investment income or loss
and for the Real Estate segment plus gain on sale of real property. The
Company defines Net Debt as long-term debt plus long-term debt due within
one year less cash and cash equivalents.

ƒ A reconciliation of non-GAAP measures referred to in this presentation is

provided in the tables at the conclusion of this presentation and at

Caution on Forward Looking Statements
ƒ Except for any historical information contained herein, the matters discussed in this presentation contain certain
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These
statements relate to analyses and other information, which are based on forecasts of future results and estimates
of amounts not yet determinable. These statements also relate to our future prospects, developments and
business strategies.
ƒ These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe,"
"could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will" and similar terms and phrases,
including references to assumptions. Although we believe that our plans, intentions and expectations reflected in
or suggested by such forward-looking statements are reasonable, we cannot assure you that such plans, intentions
or expectations will be achieved. Important factors that could cause actual results to differ materially from our
forward-looking statements include, but are not limited to: prolonged downturn in general economic conditions,
including continued adverse affects on the overall travel and leisure related industries; unfavorable weather
conditions or natural disasters; competition in our mountain and lodging businesses; our ability to grow our resort
and real estate operations; our ability to successfully complete real estate development projects and achieve the
anticipated financial benefits from such projects; further adverse changes in real estate markets; continued
volatility in credit markets; our ability to obtain financing on terms acceptable to us to finance our real estate
development, capital expenditures and growth strategy; our reliance on government permits or approvals for our
use of Federal land or to make operational improvements; adverse consequences of current or future legal claims;
our ability to hire and retain a sufficient seasonal workforce; willingness of our guests to travel due to terrorism,
the uncertainty of military conflicts or outbreaks of contagious diseases, and the cost and availability of travel
options; negative publicity or unauthorized use of our trademarks which diminishes the value of our brands; our
ability to integrate and successfully operate future acquisitions; and implications arising from new Financial
Accounting Standards Board (“FASB”)/governmental legislation, rulings or interpretations. All forward-looking
statements attributable to us or any persons acting on our behalf are expressly qualified in their entirety by these
cautionary statements. All forward-looking statements attributable to us or any persons acting on our behalf are
expressly qualified in their entirety by these cautionary statements. All guidance and forward-looking statements
in this presentation are made as of the date hereof and we do not undertake any obligation to update any forecast
or forward-looking statements, except as may be required by law. Investors are also directed to other risks
discussed in documents filed by the Company with the Securities and Exchange Commission.
ƒ If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual
results may vary materially from those expected, estimated or projected. Given these uncertainties, users of the
information included in this presentation, including investors and prospective investors, are cautioned not to place
undue reliance on such forward-looking statements. 3
About Vail Resorts

Three Integrated and Interdependent Segments
ƒ Five world-class mountain resorts: Vail, Breckenridge, Keystone, Heavenly and
Beaver Creek
ƒ 5 of the top 10 most visited resorts in the U.S. including the #1 and #2 most
ƒ Ancillary businesses including ski school, dining (90+ restaurants), retail/rental
(150+ locations), commercial leasing and private clubs

ƒ RockResorts: 8 hotels (4 owned, 4 managed) with several more under
ƒ 13 non-RockResorts hotels including those in Grand Teton Lodge Company, a
summer destination resort
ƒ Approximately 3,900 owned and managed hotel/condominium rooms
ƒ Colorado Mountain Express, a resort ground transportation business
ƒ 6 golf courses in Colorado and Jackson Hole, Wyoming

Real Estate
ƒ Vertical real estate development at the base of our mountain resorts
ƒ Real estate held for sale as of 7/31/09 of $311.5 million

Keys to Our Business Model

ƒ Major player in the travel and leisure sector

ƒ Market share and quality leader
ƒ New equipment, terrain and excitement
fuels growth across demographic lines
ƒ No new significant supply allows best
positioned resorts to capture vast majority
of future growth
ƒ Season pass products offer revenue stability
ƒ Significant capital investments ensure
premier positioning and further
differentiates guest experience
ƒ Business model well positioned for
recovering economy
ƒ Strong balance sheet position
Opportunities in FY2010

ƒ FY10 guidance assumes Resort revenue

and EBITDA growth over prior year
ƒ Momentum of 09/10 season pass sales
ƒ Growth in destination visitation in more
stable environment
ƒ Promotions, packages and new ski school
and dining initiatives designed to
recapture guest spend
ƒ Favorable full year impact of cost savings
ƒ Expansion of RockResort portfolio of

FY2010 Guidance
FY2010 Guidance Range FY2009
(in thousands) Low End High End Actual

Mountain Reported EBITDA $ 170,000 $ 180,000 $ 164,389
Lodging Reported EBITDA 5,000 11,000 6,759
Resort Reported EBITDA 178,000 188,000 171,148
Real Estate Reported EBITDA (8,000) - 44,080
Total Reported EBITDA 170,000 188,000 215,228
Depreciation and amortization (111,000) (111,000) (107,213)
Loss on disposal of fixed assets, net (1,100) (1,100) (1,064)
Investment income 800 850 1,793
Interest expense, net (17,000) (17,000) (27,548)
Minority interest in income of consolidated subsidiaries, net na na (1,602)
Income before provision for income taxes 41,700 59,750 79,594
Provision for income taxes (16,050) (23,000) (30,644)
Net income $ 25,650 $ 36,750 $ 48,950

Net income attributable to the non-controlling interests $ (650) $ (1,750)

Net income attributable to Vail Resorts, Inc. $ 25,000 $ 35,000

(1) Mountain Reported EBITDA includes approximately $5 million of stock-based compensation in FY10 guidance, $4.8 million in FY09 actual.
(2) Lodging Reported EBITDA includes approximately $2 million of stock-based compensation in FY10 guidance, $1.8 million in FY09 actual.
(3) Resort represents the sum of Mountain and Lodging. The Company provides Reported EBITDA ranges for the Mountain and Lodging segments,
as well as for the two combined. Readers are cautioned to recognize that the low end of the expected ranges provided for the Lodging and Mountain
segments, while possible, do not sum to the low end of the Resort Reported EBITDA range provided because we do not necessarily expect or assume
that we will actually hit the low end of both ranges, as the actual Resort Reported EBITDA will depend on the actual mix of the Lodging and Mountain
components. Similarly, the high end of the ranges for the Lodging and Mountain segments do not sum to the high end of the Resort Reported
EBITDA range.
(4) Real Estate Reported EBITDA includes approximately $4 million of stock-based compensation in FY guidance, $4.1 million in FY09 actual. 8
Growth Strategy - Opportunities

Organic Strategic
ƒ Lift ticket revenue ƒ RockResorts
 Season pass sales (net of cannibalization)
 “Paid” skier visits ƒ Mountain resorts
ƒ Ancillary Mountain business ƒ Complementary businesses
 New products / offerings
ƒ Outdoors / travel

ƒ Hospitality ƒ Real estate

 FIT / group business
ƒ ROI from recent capital investments
 Resort discretionary
 Resort depreciable assets from Real Estate
ƒ Expansion of business lines

FY2009 Financial Results and Ski Season Metrics

Fiscal Year 2009 Financial Highlights
ƒ Delivered solid results given the unprecedented economic
ƒ Key Mountain segment metrics remained relatively
consistent over the course of the 2008/2009 ski season
ƒ Lower destination visitation and guest spend
ƒ Strength of the season pass program partially mitigated
economic impacts
09/10 season pass sales carrying momentum into FY10
ƒ Lodging segment experienced a much closer-in booking
RevPAR down to prior year, but outperformed industry comp set
ƒ Cost savings measures
Insulated bottom line from impact of the downturn in travel & leisure
Still had improved company-wide guest satisfaction scores
ƒ Successful real estate project closings
ƒ Solid balance sheet 11
Economic Environment During 08/09 Ski Season
Dow Jones Industrial Average

11,000 9.5%
8.9% 53.1
Rate 49.3
8,000 6.8% Dow

Aug-10 Sep-28 Nov-16 Jan-4 Feb-22 Apr-12 May-31 Jul 20 Sept 7
2008 2009
Dec. 07 – Mar. 08 Ranges:
CCI: 65.9 – 90.6
Dow: 11,740 – 13,727
Source: Dow Jones & Company, U.S. Bureau of Labor Statistics and The Conference Board
Visitation Metrics
(Visits in 000's) FY2009 FY2008 % Var

Vail 1,622 1,570 3.3 %

Breckenridge 1,528 1,630 (6.3)%
Keystone 981 1,129 (13.1)%
Beaver Creek 931 918 1.4 %
Total Colorado 5,062 5,247 (3.5)%
Heavenly 802 948 (15.4)%
Total 5,864 6,195 (5.3)%

Total Effective Ticket Price $ 47.16 $ 48.74 (3.2)%

Effective Ticket Price excluding season passes $ 63.44 $ 61.67 2.9 %
Effective Pass Price $ 430.21 $ 397.23 8.3 %

ƒ Visitation decline mitigated by growth in visits from

season passholders up 17%
ƒ Mix shift of destination to in-state guest visits
57%/43% destination to in-state in the 08/09 ski season vs. 63%/37%
in 07/08
Destination visitation in the aggregate down approximately 15%
Strong Skier Visits Relative to Industry in Mountain States Region

0.0 %








Vail Resorts' Colorado Utah Resorts Colorado Ski Country Aspen Ski Company
Resorts Member Resorts
(Non-Vail Resorts)

Season Pass Mix of Lift Revenue
ƒ Season passes continue to be a larger percentage of total lift ticket
revenue with pass revenue up y-o-y 21.7% in 08/09
Number of season passes sold up 12.2%
• Epic Season Pass has grown this mix significantly (nearly 60,000 Epic Season Passes sold in first
year of this new pass)
Effective season pass price up 8.3%
Season pass average usage up - 10.6 times in 08/09 vs. 9.7 times in 07/08
Lower visitation excluding season pass holders has also contributed to the mix
shift in FY09
Total Lift Revenue Total Lift Revenue Total Lift Revenue

Pass Revenue
Pass Revenue $94m
26% Pass Revenue
Paid Ticket Revenue Paid Ticket
Paid Ticket Revenue Revenue
76% 74% 66%

FY05 FY08 FY09

Season passes have grown from 24% of total lift revenue in FY05 to a 34% of
total lift revenue in FY09
Effective Pass Price has grown at a 7% CAGR from FY05 to FY09 15
Advance 2009/2010 Season Pass Sales
ƒ Up approximately 15% in sales dollars and approximately 14% in
units through September 20, 2009 vs. prior year
Prior year selling period represented approximately 55% of the total
passes sold for the 2008/2009 season
Strong momentum on a key indicator for FY10
• 09/10 season pass sales will be recorded as revenue over the 2009/2010 ski
season, in FY10
Offers value relative to individual day ticket pricing
Pace of the increase to prior year reflects that more people
Pass Revenue

have committed earlier in the selling period as compared to the

prior year
• Strength of our marketing efforts and customer database expansion
• Sales of the Epic Season Pass continuing to outpace our other pass products

Ancillary Mountain Segment Revenue

ƒ Ski school, dining and retail/rental

experienced greater percentage declines
than our lift ticket revenue variance
Lower destination visitation
Lower average guest spend during their stay
ƒ Launching new initiatives for the 09/10 ski
Pass Revenue
25% season to our ancillary offerings, including
ski school and dining
Can be complementary to existing business
Create value proposition alternatives
Recapture lost revenue from these high
margin areas while meeting the new demands
and needs of our guests

New Ski School Initiatives

ƒ Identify new strategies to deliver on value

ƒ Supplement traditional product set to address
guests’ experiential gaps
ƒ New ski school offerings
The Adventure Sessions – expert guided tours to
Pass Revenue
explore the best pockets of the mountain, line
cutting privileges, camaraderie of skiing with
other folks at similar ability levels ($119-$129)
Small Class Size program – tailored for children
and caps group to 4 students on a reservation
only basis
Private lesson 5-pack discounted package
Summit County unlimited lesson passes

New Dining Initiatives

ƒ Focus on developing new and creative dining

initiatives to recapture and drive revenue
Increase number of transactions
Increase average amount of each transaction

ƒ Provide value and quality

Pass Revenue
ƒ New dining options
Epic Burger – higher quality signature burgers
Lunch for less - $9.95 daily value meal
Prepaid Mountain Meal Card providing up to
20% discount with advance purchase
Fine dine value programs

Lodging Segment Snapshot

ƒ Lodging segment continued to experience a

much closer-in booking window in FY09
Bookings within two weeks of the actual stay
increased by 35% for the 2008/2009 ski season
compared to the prior year ski season (over
75% for Christmas/New Year’s)
Lodging experienced a deterioration in metrics
Pass Revenue
25% with lower ADR, RevPAR and occupancy driven
by the lower destination visitation at our
mountain resorts.
ƒ FY09 RevPAR for our owned hotels down
10.9%, on a same store basis
Outperformed industry:
• Industry Luxury down approximately 21%
• Industry Upper Upscale down approximately 15%

Cost Savings Measures
ƒ Announced two rounds of cost savings initiatives
during FY09, while not detracting from guest
Round 1
• Suspension of 401K match
• Targeted staff reductions
• Consolidating purchasing activities
• Reducing outside third party fees and other operating
Pass Revenue
Round 2 - targeted at reducing labor costs
• Company-wide wage reduction plan
– Effective in April 2009
– Salaries reduced from 2.5% for seasonal employees to
10% for executives
– CEO took zero pay for one year from April 2009
– All affected full-time, year-round employees received
stock grants
• Elimination of selected positions and the conversion of
certain employees from year-round to seasonal
ƒ Full year impact of savings in FY10
ƒ Company-wide overall guest satisfaction scores
improved over the prior year 21
FY09 Real Estate Accomplishments

ƒ FY09 Real Estate net revenue of

$186 million
• Lodge at Vail Chalets: final 8 units closed (13
units closed in total in FY08 and FY09)
Pass Revenue
• Crystal Peak Lodge: 42 of 45 units closed
25% • Arrabelle: final 2 units closed (66 units closed
in total)
Vail Mountain Club and Arrabelle Club:
closed on 400 final deposits
representing in excess of $71 million in
cash proceeds

Real Estate Projects Under Construction

ƒ Two projects under construction

 One Ski Hill Place – expected
completion spring/summer 2010
 Ritz-Carlton Residences, Vail –
expected completion fall 2010
• Announced price reduction in April

Pass Revenue
ƒ Spent to date as of July 31, 2009:
approximately $245 million
ƒ Remaining development costs
expected to be spent as of July 31,
2009: approximately $190 million to
$210 million
 To be funded with cash on hand, cash
generated from operations and
revolver, as necessary
ƒ Total expected cost per square foot of
One Ski Hill Place $962 and Ritz-
Carlton Residences, Vail of $1,148 23

As of Debt Fiscal Current

(Dollars in 000's) 7/31/2009 Year Maturity Rate

Cash and Cash Equivalents (excl. restricted) $ 69,298

Credit Facility Revolver - 2012 LIBOR + 75bps
SSV Facility - 2011 LIBOR + 87.5bps
6.75% Senior Subordinated Notes 390,000 2014 6.75%
Industrial Development Bonds 42,700 2011-2020 6.95% - 7.375%
Employee Housing Bonds 52,575 2027-2039 LIBOR + 0% to 0.05%
Other 6,685 2010-2029 3.5% - 6.0%
Total Debt $ 491,960
% of total capitalization 39.1%

Total Stockholders' Equity $ 765,295

% of total capitalization 60.9%

Total Capitalization $ 1,257,255

Net Debt $ 422,662

Net Debt to Total Reported EBITDA (LTM) 1.96x

Significant Available Liquidity
ƒ Solid capital structure and balance sheet position, which
offers greater flexibility during these times of economic
ƒ Net debt to LTM Total Reported EBITDA of less than 2x
at July 31, 2009
ƒ No revolver borrowings currently under the Company’s
$400 million Senior Credit Facility, which matures in
2012 ($95 million of Letters of Credit outstanding)
ƒ Virtually no principal maturities due on any of our debt
through 2014
ƒ Strong free cash flow generation from Resort business
ƒ Well positioned to weather the current economic
environment, while completing existing real estate
project development 25
Capital Investments

ƒ Significant capital investments made in

our resorts over the past several years
Over the past three calendar years of 2006
through 2008, the Company has expended close
to $300 million in resort capital expenditures,
excluding the resort assets that have come from
our real estate activities
Dramatically improved the resort base areas and
on-mountain experience
Assets in very good condition offering competitive


ƒ Strong balance sheet

Virtually no principal maturities due on any of our debt through 2014
Net debt to LTM Total Reported EBITDA of less than 2x at July 31, 2009

ƒ Five world-class mountain assets with high barrier to entry

that generate significant free cash flow
ƒ Strong season pass program with sales locked-in before the
commencement of the major part of the ski season
ƒ Growing hospitality business both at the base of our mountain
resorts and in other iconic locations through RockResorts
ƒ Best positioned to weather the short-term economic impacts,
while looking to capitalize on long-term opportunities

Reconciliation of Non-GAAP
Financial Measures

Reconciliation of Non-GAAP Financial Measures
(In thousands)
Twelve Months Ended
July 31,
2009 2008

Mountain Reported EBITDA $ 164,389 $ 220,561

Lodging Reported EBITDA 6,759 10,225
Resort Reported EBITDA 171,148 230,786
Real Estate Reported EBITDA 44,080 45,937
Total Reported EBITDA 215,228 276,723

Loss on disposal of fixed assets, net (1,064) (1,534)

Depreciation and amortization (107,213) (93,794)
Investment income 1,793 8,285
Interest expense, net (27,548) (30,667)
Contract dispute credit, net - 11,920
Minority interest in income of consolidated
subsidiaries, net (1,602) (4,920)
Income before provision for income taxes 79,594 166,013
Provision for income taxes (30,644) (63,086)
Net income $ 48,950 $ 102,927

(In thousands)
As of July 31,

Long-term debt $ 491,608

Long-term debt due within one year 352
Total debt 491,960
Less: cash and cash equivalents 69,298
Net debt $ 422,662

Net debt to Total Reported EBITDA 1.96x

Vail Resorts’ Websites
Corporate: Vail Mountain:
Consumer: Beaver Creek Resort:
RockResorts: Breckenridge Ski Resort:
Real Estate: Keystone Resort:
Epic Season Pass: Heavenly Mountain Resort: