DEAR FELLOW SHAREHOLDERS

During 2018, we continued to make important progress against our stated growth strategy, while driving solid financial performance. Our ongoing investments to enhance, strengthen, and scale our offerings, are driving strong results. We have grown our adjusted segment EBITDA* at a compound annual growth rate of 17% over the past three years, and our adjusted segment EBITDA* margin has improved by 290 basis points. This growth, combined with disciplined capital allocation, has enabled us to deliver a total shareholder return that places us near the 80th percentile of the Russell 2000 Index constituents for the three years ended December 31, 2018.

OUR 2018 PERFORMANCE

We delivered solid financial performance in 2018. Net income attributable to Viad was $49.2 million on revenue of $1.3 billion. We generated cash flow from operations of $90.6 million, reinvested $88 million back into the business, and returned $25.3 million to shareholders through dividends and share repurchases. We also continued to maintain a healthy balance sheet, with a debt to capital ratio of 34.0% at December 31, 2018. As compared to 2017, our consolidated full-year revenue decreased $10.8 million, or 0.8 percent, and adjusted segment EBITDA* decreased by $7.9 million. These declines were primarily driven by expected negative show rotation revenue at GES, partially offset by organic growth at Pursuit.

GES finished the year with strong fourth-quarter revenue growth, after experiencing some revenue visibility challenges with shorter-term projects that came in lower than expected in the third quarter. Pursuit delivered 7.6% organic revenue growth, despite the impact of heavy smoke from forest fires that hampered visitation during the peak season. I am proud of our team for their great efforts to overcome challenges and stay focused on our key opportunities.

GES HIGHLIGHTS

During 2018, GES continued to pursue growth in strategic areas that deliver higher profit margins while maintaining focus on operational efficiencies. GES’ award-winning services are some of the most comprehensive in the industry and allow our clients to gain a greater return and enhance the visitor experience at their events. Our strategy to differentiate GES as the preferred global, full-service provider for live events is enhancing GES’ overall competitiveness, enabling us to deepen our relationships with existing clients, and facilitating our growth in higher-margin areas of the live events market.

We are leveraging the investments we have made in audiovisual production services and event technologies, along with our international network of operations, to service our clients around the world and help increase GES’ market share in the large and higher-margin corporate event space. With audio-visual services comprising about one-half of the total spend at a corporate event, having this offering in-house has strengthened our value proposition with current and prospective clients.

During 2018, we realized significant growth in corporate events, and we continue to leverage our existing capabilities and make smart investments to drive growth at an accelerated pace. To better leverage our audio-visual offering across the U.S., we established a West Coast presence in 2018 by securing a contract to be the in-house, audio-visual provider at the San Diego Convention Center. Additionally, in early 2019 we opened a new facility in Phoenix to more efficiently service shows in Western markets.

With an enhanced set of offerings and our global reach, our teams are delivering unique and seamless experiences for some of the world’s leading show organizers and corporate brands. We expect to build upon our momentum in the corporate event space while continuing to drive operational efficiencies across GES during 2019.

PURSUIT HIGHLIGHTS

Pursuit delivered strong financial performance during 2018, while also undertaking numerous growth projects that will come online in 2019.

In Pursuit’s Banff Jasper Collection, we completed the reconstruction of our Mount Royal Hotel in downtown Banff. Since reopening in July 2018, the upgraded hotel has received excellent guest feedback and has realized significantly higher RevPAR compared to the pre-renovation period. In addition, we commenced several additional refresh projects in the Jasper market during 2018 that we expect to complete in 2019. One such project is the renovation and repositioning of our Glacier View Inn to provide a premium all-inclusive hospitality experience that includes exclusive activities at our nearby Glacier Adventure and Glacier Skywalk attractions. Near our Maligne Lake boat tour attraction, we are upgrading our food and beverage and retail offerings at both Maligne Canyon, which we acquired in early 2018, and Maligne Lake to capitalize on their idyllic locations and scenery.

In the Alaska Collection, we acquired a parcel of land adjacent to our Seward Windsong Lodge and began the construction of 36 additional rooms on that parcel. Opening in 2019, this project will increase our bed base near our popular Kenai Fjords boat tour attraction, enabling a strong cross-sell of both experiences. In the Glacier Collection, we continued development of the West Glacier RV Park & Cabins, which is scheduled to open in July 2019. This RV park is ideally situated at the west entrance to Glacier National Park, and adjacent to our existing amenities in West Glacier, which include various dining and retail outlets.

Finally, in the FlyOver Collection, we continued development of our new FlyOver Iceland attraction in Reykjavik, which we expect to open in July 2019, and we recently announced the planned development of FlyOver Las Vegas. These virtual flight experiences will showcase some of the most spectacular scenery from across Iceland and the American Southwest. Additionally, at FlyOver Canada in Vancouver, we began significant improvements to the exterior structure to provide a better sense of arrival for our guests, along with the addition of new dining and retail space.

These investments, in conjunction with our revenue management efforts, enable us to deliver an unforgettable and inspiring guest experience, while also capturing a higher spend per guest across all of Pursuit’s revenue categories — ticket sales, rooms, food and beverage, and retail.

CLOSING

Overall, 2018 was a year of significant accomplishments across our business. There are many positive changes we are driving, and we are excited about our prospects for 2019. Pursuit’s growth will be amplified by the various investments we are making to expand and enhance our collection of experiences. At GES, we continue to align our resources against key growth areas while also focusing on margin improvement actions. Additionally, we have a solid pipeline of acquisition and new growth opportunities that we are actively pursuing for both Pursuit and GES. I am confident in our strategy and excited about the many opportunities that lie ahead for our company.

I want to thank the entire Viad team and our Board of Directors for their contributions to our success and their dedication to driving long-term shareholder value. I also want to thank you, my fellow shareholders, for your investment in our company and confidence in our strategy.