2014 Investor Day November 19, 2014 Forward-Looking Statements - - PowerPoint PPT Presentation

2014 Investor Day

November 19, 2014

143

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

• pportunities 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.

“Don’t just visit TripAdvisor, visit Liberty TripAdvisor” Greg Maffei – President & CEO

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Liberty TripAdvisor Holdings Summary

LTRPA Stock Performance (Since Inception) TRIP Stock Performance Since Dec. 2012(3) LTRPA Updates

• Spin-off from Liberty Ventures completed

August 27th

• BuySeasons online costume and party supply business

included as part of spin

• Tax-free spin-off
• Increases shareholder value
• Allows for possibility of future combination with TripAdvisor
• Currently trading near parity with NAV(1)
• Raised $400m of margin loans and distributed

$348m attributable to Liberty Ventures

• Proceeds to be used by LIC for share repurchases

within 12 months(2)

(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.

$0 $20 $40 $60 $80 $100

• 8%
• 6%
• 4%
• 2%

0% 2% $0 $20 $40 $60 $80 $100

NAV % Discount

Price per share

TRIP px LTRPA px LTRPA NAV Discount %

146

$262 $322 $351 $378 $422 2010 2011 2012 2013 LTM 9/30/14 $485 $637 $763 $945 $1,171 2010 2011 2012 2013 LTM 9/30/14

Click-Based Advertising Display-Based Advertising Subscription and Other

TripAdvisor, Inc. Highlights

• World’s most popular travel website
• 315m monthly unique users
• Massive, committed audience
• User-generated content is moat with network effects
• Truly global
• Available in 28 languages
• 75% of traffic international
• Metasearch transition successfully completed
• Instant booking expands value for travelers and

suppliers

• Recently completed Viator acquisition provides

significant presence in tours and attractions reservation business

• Lafourchette acquisition establishes meaningful

foothold in restaurant segment TripAdvisor Revenue TripAdvisor Adj. EBITDA(1) TripAdvisor Highlights

(1) For applicable definition and reconciliation, see Appendix.

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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

148

November 19, 2014

149

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 forward-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

• ther 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 our Annual Report on Form 10-K, as amended. Except as required by law, we undertake no obligation to update any forward-looking or

• ther 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.

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Help travelers around the world plan and have the perfect trip

Our mission

151

315M

Monthly unique users1

#1

We are the world's most popular travel website

45

Points of sale

28

Different languages

75+%

International traffic

2.4M

Restaurants

1.5M+

Accommodations2

#1

200M

Reviews & opinions

#1

480K

Attractions

152

TripAdvisor helps travelers navigate the travel journey

Research & Plan Price Compare Book On the Trip

153

Research and planning

154

People who use TripAdvisor love TripAdvisor

“Thank you TripAdvisor!! You saved my stay in Paris!!”

Review by kauailover11

“See, this is why I love

• TripAdvisor. There's about

a zero chance I would have found or tried this restaurant without reading reviews of it first.”

Review by Andrew_Jameson

“Thank you TripAdvisor. How else would we have found this place?”

Review by GregRI

155

200 million reviews and opinions by travelers for travelers

115

Contributions/minute

156

Just for You provides personalized recommendations

157

TripAdvisor is everywhere travelers go

158

Price compare

159

Metasearch helps travelers compare prices and save

160

Book

161

Instant Booking

162

On the trip

163

On the trip: Attractions

• 480,000 attractions
• Global coverage
• Global leader in

bookable tours and attractions

• 20,000 attractions
• 1,500 destinations

164

On the trip: Restaurants

• 2.4 million restaurants
• Global coverage
• A leader in online

restaurant reservations

• 13,000 restaurants in

France, Spain, Switzerland, and Belgium

165

Every user, every device, every geography

50%

• f all

TripAdvisor traffic is on mobile

150M+

app downloads

“I just finished a three week road trip and TripAdvisor was more than helpful; it made the trip!”

– OCMarcia on Apple App Store

166

One business, three revenue streams

Display

+315M unique monthly visitors across 45 localized points of sale

Cost per click

Highly qualified hotel shopper leads through metasearch auction and bookings driven by Instant booking

Subscription/ transaction

Business Listings, Vacation Rentals, restaurants & attractions

167

$105 $149 $169 $181 $138 $184 $197 $213 $169 $230 $247 $255 $213 $281 $323 $354 0% 10% 20% 30% 40% 50% Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Revenue Revenue Growth

Total revenue

$M

168

Revenue by product

$354 $105 $149 $169 $181 $138 $184 $197 $213 $169 $230 $247 $255 $213 $281 $323

70%

12% 14% 12% 17% 12% 14% 11% 12% 11% 13% 12% 15% 11% 11% 10%

7% 7% 8% 11% 9% 10% 10% 14% 11% 13% 14% 17% 15% 16% 20%

76% 81% 79% 81% 72% 79% 77% 79% 73% 78% 74% 74% 68% 74% 73%

Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Click-Based Display-Based Sub & Other

17%

$M

7%

169

Adjusted EBITDA

Note: Adjusted EBITDA is a Non-GAAP financial measure. For a reconciliation of Adjusted EBITDA to net income please see slide 27. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP

$M $46 $82 $92 $93 $55 $84 $97 $106 $64 $109 $113 $104 $52 $122 $129 $119 0% 10% 20% 30% 40% 50% 60% Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 EBITDA EBITDA Margin

170

TripAdvisor helps users throughout travel planning and trip taking

Research & Plan Price Compare Book On the Trip

171

The TripAdvisor version of every trip is better

172

The TripAdvisor version of every trip is better

173

Thank you

Appendix

193

Reconciling Schedule

TripAdvisor, Inc. Adjusted EBITDA Reconciliation

LTM 2010 2011 2012 2013 9/30/2014 Adjusted EBITDA 262 $ 322 $ 351 $ 378 $ 422 $ Less: Depreciation 13 18 20 30 42 Less: Amortization of intangible assets 15 7 6 6 13 Less: Stock-based compensation 8 17 29 48 59 Less: Spin-off costs 7

• Operating income (GAAP)

226 $ 273 $ 296 $ 295 $ 308 $

194

Net Income & Cash Flow

1 TripAdvisor defines "non-GAAP net income" as net income before expenses related to stock-based compensation and amortization of intangible assets and non-recurring expenses, net of related tax effects. 2 TripAdvisor defines "non-GAAP net income per diluted share" as non-GAAP net income divided by non-GAAP weighted average diluted shares outstanding, which included dilution from options per the treasury stock method and include all weighted average shares relating to RSUs in shares outstanding for Non-GAAP net income per diluted share. 3 TripAdvisor defines “free cash flow” as net cash provided by operating activities less capital expenditures, which are purchases of property and equipment, including capitalization of internal-use software development costs.

$M, except earnings per share

Q3-14 Q2-14 Q3-13 Q3-14 Q3-13 GAAP Net income $54 $68 $56 $190 $185 Non-GAAP net income 1 $71 $81 $65 $232 $214 GAAP EPS 0.37 0.47 0.38 1.30 1.27 Non-GAAP EPS 2 0.48 0.55 0.45 1.58 1.47 Operating cash flow $58 $158 $145 $326 $278 Free Cash Flow 3 $45 $136 $129 $271 $239 Cash, cash equivalents & marketable securities $614 $721 $596 $614 $596

Three Months Ended Nine Months Ended

195

Non-GAAP Reconciliations

• 1

• GAAP Operating Income

• (3)

• (1)

• (7)

• (1)
• GAAP Net income attributable to TripAdvisor, Inc.

• 1

• Income tax effect of non-GAAP adjustments (3)

• 799

• 19%

• 24%

• 3%
• 4%
• 1%
• 1%

• 16%

• 25%