Six Flags Entertainment Corp. - Investor Relations Solutions

Six Flags Entertainment Corp.

Investor Meeting November 4, 2010

Disclaimer Presentation is subject j to safe harbor laws •

Presentation includes forward looking statements about events and financial results

•

Actual events or results may be materially different

•

Risks are described in the company’s p y filings g with the SEC

•

Statements are made subject to “safe harbor” provisions of Private Securities Reform Act of 1995

•

See full disclaimer at end of presentation

•

Non-GAAP financial measures are reconciled to GAAP measures at the end of this presentation

November 2010

2

Agenda • Introductions I t d ti

N Nancy K Krejsa j

• Company Overview & Investment Considerations

Jim Reid-Anderson

• Six Flags and the Industry

Al Weber

• Park Overview – East

John Odum

• Park Overview – West

Tom Iven

• In-Park Sales

John Bement

• Monetizing our Brand

David McKillips

• Attracting Guests

Brett Petit

• Financial O Overview er ie

John D Duffey ffe

• Summary

Jim Reid-Anderson

• Q & A Session

November 2010

3


N Nancy K Krejsa j


Jim Reid-Anderson


Al Weber


John Odum


Tom Iven

• In-Park Sales

John Bement


David McKillips


Brett Petit


John D Duffey ffe

• Summary

Jim Reid-Anderson

• Q & A Session

November 2010

4

Six Flags A global leader in regional theme parks • $1.0 $1 0 billi billion revenue • 19 strategically located parks in North America • 1,900 1 900 full-time f ll i / 29,000 29 000 seasonall employees l • > 800 rides / 120 coasters • 24 million guests annually

November 2010

5

Investment Thesis Six Flags • Favorable industry characteristics – Stable in a weak economy – High barriers to entry

• Excellent E ll t fundamentals f d t l – Expansive array of entertainment – Strong brand recognition – High levels of guest satisfaction

• Strong financial performance – Attendance, revenue and EBITDA growth – Cost rationalization underway – Increasing margins and Free Cash Flow

• Healthy balance sheet with further opportunity – Focus on de-leveraging and minimizing cost of debt – $1.3 billion NOL carry forwards November 2010

6

Stable Industry Historically overlooked, misunderstood & undervalued • Well-positioned W ll iti d in i the th leisure l i industry i d t • Stable in normal economy – Resilient in a weak one • Compelling value relative to other forms of entertainment • 94% of guests leaving park intend to return in this or next season(1)

1

2010 Guest Satisfaction Survey; Delta Marketing research firm

November 2010

7

High Barriers to Entry Protection from domestic competitive theme park openings • Limited Li it d direct di t theme th park k competition titi – Limited supply of real estate – High initial capital investment – Long development cycle – Zoning restrictions

• Significant g investment to construct a new regional g theme park – $300MM+(1) – Minimum of two years to construct

• Replacement cost of Six Flags portfolio ~$5 – 6BN • All key markets already served

1 Comparable

November 2010

to one of our major Six Flags branded theme parks

8

19 Strategically Located Parks Nine of the top 10 DMA’s – Economic and weather diversity

Six Flags Great Escape Lodge & Indoor Waterpark The Great Escape & Splashwater Kingdom

Six Flags Great America

Six Flags Discovery Kingdom

L R La Ronde d (Montreal)

Six Flags New E N England l d

Six Flags Great Adventure

Six Flags St Louis St. L i

Six Flags Hurricane Harbor

Six Flags America Six Flags Magic Mountain Six Flags Hurricane Harbor

Six Flags Wild Safari Six Flags Over Texas Six Flags Fiesta Texas

Six Flags Hurricane Harbor Six Flags Mexico (Mexico City)

November 2010

Six Flags Over Georgia Six Flags g White Water Atlanta

9

Guest‐Focused Products Over 800 rides and 120 roller coasters 20% off th the ttop 100 coasters t (1)

Ongoing O i annuall iinvestment t t off $80-$90MM $80 $90MM Over $1.75BN invested since 1998

Top Rides in North America Ride

Park

Rank(1)

Steel Bizarro

Six Flags g New England g

#2

Nitro


#3

Goliath Mind Bender

Six Flags Over Georgia Six Flags Over Georgia

#5 #14

X2

Six Flags Magic Mountain

#15

Raging Bull

Six Flags Great America

#16

Kingda Ka


#27

Goliath


#29

Goliath

La Ronde

#30

Superman Ride of Steel Shock Wave

Six Flags America Six Flags Over Texas

#32 #37

Tatsu


#40

Titan

Six Flags Over Texas

#42

Wooden El Toro


Comet

The Great Escape

#17

Evil Knievel

Six Flags St. Louis

#23

Terminator Salvation


#27

The Boss

Six Flags St. Louis

#31

Viper Georgia Cyclone

Six Flags Great America Six Flags Over Georgia

#34 #47

1 Rankings

#2

based on Amusement Today’s 2010 Golden Ticket Awards

November 2010

10

Broad Range of Entertainment Thrills and entertainment for everyone Kids & Family Rides

Family y Fun & Games

Concerts & Shows

Thrill Rides

Animals

Events

November 2010

11

The Six Flags Brand Leveraging our strong brand to partner with other great brands • Si Six Fl Flags’’ guests t are an attractive tt ti audience di to t both b th local l l and d national ti l advertisers – High quality demographic – Captive audience – Up to 10 hours per visit

• Relationships with many “blue “blue-chip” chip” company names • Significant network reach – 9 of top 10 DMA DMA’s s – 24MM in average annual attendance – 150 mile guest radius – 5% of revenue from sponsorship & licensing November 2010

12

Record Guest Satisfaction Continued focus on improving guest satisfaction Overall Guest Satisfaction

8.4

2006

Cleanliness

8.6

8.6

8.7

8.7

8.8

2007

2008

2009

2010

2006

Value Perception

9.2

9.0

9.0

9.0

2007

2008

2009

2010

9.2

9.2

9.2

9.3

2007

2008

2009

2010

Safety 8.8

8.3

8.3

8.4

8.4

2007

2008

2009

2010

8.0

2006

2006

Source: 2010 Guest Satisfaction Survey; Delta Marketing research firm

November 2010

Average rating on 10-point scale

13

Strong Profit and Cash EPS Strengthening Modified EBITDA margin

Adjusted EBITDA & Margin ($MM’s)(1)

Adjusted EBITDA - CAPEX ($MM’s)(1)

Pro Forma Cash EPS(1)

$350 ~$7.00

~ $265 $266

$180 $3.69 $99

$197

2009

Q310 LTM

Aspirational Goal

2009

Q310 LTM

Aspirational Goal

Q310 LTM

Aspirational Goal

Modified EBITDA Margin: 24.5%

1

30.6%

Excludes SFKK as discontinued operation and assumes cash interest for the debt balances as of 9/30/10

November 2010

14

Solid Capital Structure Opportunity to improve Improvement in Net Debt ($MM ($MM’s) s)

Potential Opportunity

• Improve credit ratings

$2,242

Current Ratings $763

12/31/09

Moody’s M d ’ S&P

B2 B

9/30/10

• Assess borrowing costs

Healthy y Leverage g Ratio(1)(2)

Current Interest Rates 6.6x 3.9x

4.5x

49 4.9x

First Lien Second Lien

6.00% 9 25% 9.25%

• Potential opportunity to delever B2 / B

Ba3 / B+

Ba3 / BB-

B1 / B

1

Total leverage ratio is total debt/Adjusted EBITDA (total debt includes HWP debt of $32.2MM); based on LTM as of 9/30/10; excludes SFKK as discontinued operation 2 Competitor data from most recent Rating Agency reports, websites, public filings and news reports November 2010

15

Recent Events Positive momentum building June 21

August 16

–Began trading on NYSE

–Strong Q2 announced

2010 April

May

June

July

Aug

Sept

Oct

Nov

N November b 3 –Strong Q3 announced

August 5 –$25MM debt prepayment

–Received $41MM $ ffrom Dick Clark Productions

April 30 –Emerged from Chapter 11 –$1.7 billion debt/obligations eliminated –$75 $ million reduction in cash interest –Retained $1.3 billion in NOL carry forwards November 2010

September 24

August 13 –Jim Reid-Anderson named Chairman, President and CEO 16

Experienced Leadership Deep industry and technical expertise

Jim Reid-Anderson CEO (New)

John Duffey CFO (New)

Brett Petit SVP Marketing (27)

John Odum

SVP Park Operations - East (36)

Al Weber

Lance Balk

COO (43)

General Counsel (New)

Tom Iven

David McKillips

SVP Park Operations - West (34)

SVP Corporate Alliances (10)

Walt Hawrylak

SVP Administration and Corporate Secretary (36)

Nancy Krejsa

SVP Investor Relations and Corporate Communications (New)

John Bement SVP In-Park Sales (43)

(Number of years in the theme park industry)

November 2010

17

A Focused Strategy DELIVERING EXCELLENCE Enhance Guest Experiences

Develop Guest‐ Focused Products & Programs g

Improve Operational Efficiencies

Deliver Financial Excellence

Build a High‐Performance Team Culture

- Turnover

Example Metrics: - Attendance and revenue growth th

- Market penetration i

- EBITDA margin - Cash flow

- Modified / Adj t d EBITDA Adjusted EBITDA

- Guest satisfaction

- Capital efficiency

- ROIC

- EPS / Cash EPS

- Seasonal rehire rate

- Stock price

F Focused on Theme Parks; Built on Safety, Quality and Innovation d Th P k B ilt S f t Q lit dI ti November 2010

18

Key Priorities • Enhance Six Flags’ Flags position in the leisure industry • Focus on theme parks • Delight our guests • Leverage our brand • Improve revenue growth, efficiency and cash flow • Improve capital structure

Deliver Shareholder Value November 2010

19


N Nancy K Krejsa j


Jim Reid-Anderson


Al Weber


John Odum


Tom Iven

• In-Park Sales

John Bement


David McKillips


Brett Petit


John D Duffey ffe

• Summary

Jim Reid-Anderson

• Q & A Session

November 2010

20

The Leisure Industry A strong and growing industry • Leisure time is a high priority for consumers • $640 billion of consumer spending on leisure(1) • Increasing demand to escape, have fun and socialize – Shift from products to “experiences” – Seeking gq quality y “family y time” that is fun and memorable – Desire to “challenge” one’s physical/mental limits

1

Source: U.S. Department of Labor – Bureau of Labor Statistics 10/5/10 release only includes entertainment and food away from home categories

November 2010

21

Guest Decision Factors Regional parks are a more convenient value-oriented choice

• Spending level • Distance to travel

Regional Theme Parks

• Prior experience • Relative value • Planning timeline

Destination Theme Parks

• Duration of visit • Park attractions

November 2010

22

Competitive Landscape Six Flags is uniquely positioned

•

Destination / regional and domestic

•

24 million visitors

•

10 Theme, water & animal parks

•

Unique yet fragmented brand

Six Flags

•

Destination and international

• Regional and North America

•

119 million visitors

•

11 Theme, water and animal parks(1)

•

“Gold standard”

• 24 million visitors • 19 Theme, water & animal parks • National brand with strong individual theme park brands

•

Regional and domestic

•

Destination and international

•

21 million visitors

•

24 million visitors

•

17 Theme & water parks

•

4 Theme parks

•

Collection of individual amusement park brands

•

Movie focused thrill

1

Includes all operating branded locations

November 2010

23

Six Flags Positioning Effectively capitalizing on two key demographics • Brand superiority and awareness

Distance Traveled(1)

• Market position 83%

– True T regional i l lleader d

17%

• High quality guest experience – Product excellence – Superb, safe experience

150 miles il

Age Breakout(1)

– History of product and program innovations

• Very appealing to fastest growing demographic pools

50%

50%

Families w/Kids Teens & Adults 1

2010 ATS Survey

November 2010

24

Focused on Theme Parks Constant focus on quality delivery • Innovative I ti and d organic i growth th

• Closely Cl l manage expenses

• Strategically manage discounting to increase admission yield

• Capital spending that works harder

2009 Revenue Contribution(1)

Capital Spending

5% 25% 41% 60%

54% 15%

In Park Sales In-Park Ticket Sales Sponsorship & Licensing 1

Marketable M k bl C Capital i l In-Park Asset Maintenance

Full-year 2009; excluding SFKK as discontinued operation

November 2010

25

Safety is the most important thing we do Guests rate “ride safety“ as our strongest attribute • Safely deliver >140 million rides annually • Every single employee is committed to safety • Theme parks are safer than playing golf or sitting in a lawn chair(1)

1

Source: International Association of Amusement Parks

November 2010

26

Well‐Maintained Parks Significant ongoing maintenance program • P Parks k and d rides id are in i excellent ll t condition • Heavily influences our brand image • 50% of full-time employees support park maintenance • Investing ~25% of CAPEX and ~20% of park o pa operating ope at g expenses e pe ses in maintenance and park services

November 2010

27

Park Cleanliness We strive to be among the cleanest parks in the world • Guests recognize our efforts

Cleanliness(1) 8.8

2006

1

9.0

9.0

9.0

2007

2008

2009

9.2

2010


November 2010

28

Guest Experiences Excellent guest experiences ec closely ose y monitor o to guest satisfaction sat s act o • We • Providing friendly, clean, fast, safe service is our “mantra” Value Perception(1)

Employee Service Rating(1)

8.3

8.3

8.4

8.4

2007

2008

2009

2010

8.6

8.7

8.7

8.7

2006

2007

2008

2009

89 8.9

8.0

2006

2010

Overall Guest Satisfaction(1) 8.4

1


November 2010

2006

8.6

8.6

8.7

8.7

2007

2008

2009

2010

Average rating out of 10-point scale

29

Coming in 2011… Best, most innovative new product introduction in years

November 2010

30


N Nancy K Krejsa j


Jim Reid-Anderson


Al Weber


John Odum


Tom Iven

• In-Park Sales

John Bement


David McKillips


Brett Petit


John D Duffey ffe

• Summary

Jim Reid-Anderson

• Q & A Session

November 2010

31

Six Flags Great Adventure New York New York

Three parks – One destination • America’s largest regional theme park complex featuring three parks in one destination • 13 coasters featuring Kingda Ka – the tallest, tallest fastest coaster in the world • Over 60 rides and attractions • 350 acre wildlife preserve – Largest drive thru Safari outside of Africa drive-thru • 45-acre elaborately-themed water park

November 2010

32

Six Flags Great Adventure Coming in 2011 Coming in 2011…

Green Lantern Roller Coaster • Stand-up coaster with 5 inversions • Capitalize on licensed intellectual property – Green Lantern movie ((June 2011)) • Opening Memorial Day weekend

November 2010

33

Six Flags Great America Chicago

More experiences for one price than anywhere else • 12 roller coasters including Superman: Ultimate Flight and Raging Bull • Over 90 rides and attractions • Home to Six Flags’ largest Hurricane H b water Harbor t park k • 24 Entertainment venues, shows and events

November 2010

34

Six Flags Great America Coming in 2011 Coming in 2011…

Riptide Bay Expansion • 30% increase of Hurricane Harbor • Opening Memorial Day weekend

November 2010

35

Six Flags Over Georgia Atlanta

The Southeast’s destination for excitement • Largest regional theme park in the Southeast • 10 thrilling roller coasters • Interactive children’s areas with over a d dozen rides id geared d specifically ifi ll ffor families and kids • 22 Entertainment venues, shows and events

November 2010

36

Six Flags Over Georgia Coming in 2011 Coming in 2011…

Dare Devil Dive Coaster • Capture thrill-sector market opportunity • Gerstlauer Euro Fighter Coaster • Opening O i M Memorial i lD Day weekend k d

November 2010

37

Six Flags New England Hartford

New England's destination for family fun • Bizzaro – #2 rated steel coaster in North America(1) • 3 kids areas including Looney Tunes Movie Town and Mr. Six's Splash Island • Hurricane Harbor – New England’s largest water park • Over 70 rides and attractions

1 Rankings

November 2010

based on Amusement Today’s 2010 Golden Ticket Awards

38

Six Flags New England Coming in 2011 Coming in 2011…

Gauntlet Coaster • 6 cars themed to police, cabs and villains • Opening April 2011

November 2010

39

Six Flags America Washington D C Washington, D.C.

Delivering thrills to all ages • 49 rides including 7 world world-class class coasters, including Superman: Ride of Steel – one of the tallest coasters on the East Coast • Sensational family areas, areas including Looney Tunes Movie Town, with 8 pintsized rides, special shows, and character greetings • Hurricane Harbor water p park,, featuring g one of the world’s largest Wave Pools

November 2010

40

The Great Escape Lake George NY Lake George, NY

A rich history of family fun in the heart of the Adirondacks • Home of The Comet – rated one of the top rated wooden coasters by Coaster Enthusiasts • Full outdoor water park with 10 white – water attractions • One of America’s first theme parks, opened in 1954 as Storytown USA

November 2010

41

Six Flags Great Escape Lodge Lake George NY Lake George, NY

Located adjacent to The Great Escape • 38 38,000 000 square foot indoor water park with nine white-water attractions • 200 Adirondack themed suites • Relaxing full-service day spa • Three on-site restaurants including the allAmerican Johnny Rockets with a full sports bar

November 2010

42

La Ronde Montreal

An island retreat in the St. Lawrence river • Quebec's largest amusement park • 10 Roller coasters including EdnörL’attaque that suspends riders over Lac des Dauphins • Site Sit off the th 1967 world ld exposition iti • Over 40 rides and attractions • 39 Entertainment venues, shows and events

November 2010

43

La Ronde The largest fireworks festival in the world • Home of the Montréal International Fireworks Competition, the ‘Olympics’ of the pyrotechnical world! • ~6,000 fireworks set off each show • Over 3 million fireworks enthusiasts in attendance annually • In 2011, eight countries will attend the 27th competition

November 2010

44


N Nancy K Krejsa j


Jim Reid-Anderson


Al Weber


John Odum


Tom Iven

• In-Park Sales

John Bement


David McKillips


Brett Petit


John D Duffey ffe

• Summary

Jim Reid-Anderson

• Q & A Session

November 2010

45

Six Flags Over Texas Arlington

The worlds first regional theme park • Celebrating the 50th anniversary of our first park • The largest theme park in the Southwest United States • 13 coasters t ffeaturing t i th the new Texas T Giant, The Runaway Mine Train and Titan • 40 entertainment venues, shows and events

November 2010

46

Six Flags Over Texas Coming in 2011 Coming in 2011…

The New Texas Giant • Reinvent and rebuild of the iconic 20 year old wooden coaster • Features the steepest drop on a wooden coaster at 79o • The most bank turns greater than 90o on a wooden coaster

November 2010

47

Six Flags St. Louis St Louis St. Louis

Mid-America’s favorite family destination • Featuring some of the Midwest’s greatest roller coasters including Batman the Ride and the giant wooden coaster, The BOSS • Hurricane Harbor water park offers plenty of water slides and other activities for all ages • Over 100 rides and attractions • 36 entertainment venues, venues shows and events

November 2010

48

Six Flags St. Louis Coming in 2011 Coming in 2011…

Sky Screamer • Funtime Star Tower swing ride standing at 236-ft tall • Opening Memorial Day weekend

November 2010

49

Six Flags Fiesta Texas San Antonio San Antonio

Come for the rides, stay for the shows • 7 coasters featuring Goliath, Goliath a 105 foot 50 mph coaster • Golden Ticket Award Winner for “best theme park shows in the country” for 10 consecutive years • White Water Bay offers water slides and activities for all ages • Over 50 rides and attractions • 15 entertainment venues, shows and events

November 2010

50

Six Flags Fiesta Texas Coming in 2011 Coming in 2011…

Lone Star Spectacular • All new, state-of-the-art laser and fireworks show • Remarketing of a Texas tradition • End-of-day high-tech laser extravaganza • Launches in May

November 2010

51

Six Flags Mexico Mexico City Mexico City

Latin America’s premier theme park • Latin America’s largest ride assortment featuring Superman El Ultimo Escape, a 200 foot tall hyper-coaster • Chinese Theater hosts concerts and Hollywood movie premiers • Over 48 rides and attractions • 14 Entertainment venues, shows and events

November 2010

52

Six Flags Mexico Coming in 2011 Coming in 2011…

• New Terminator laser attraction • Expanded concert line-up • Enhanced show package

November 2010

53

Six Flags Discovery Kingdom San Francisco San Francisco America’s premier destination for family fun, thrill and unique animal interactions • America’s only combination wildlife wildlife, oceanarium and theme park • Animal shows starring dolphins, a killer whale and sea lions, plus elephant and tiger demonstration shows • Interactive animal attractions such as swim with dolphin program and touch/feed opportunities • Over 40 theme park rides including 7 coasters

November 2010

54

Six Flags Discovery Kingdom Coming in 2011 Coming in 2011…

Sky Screamer • First thrill ride since 2002 • Swing ride standing at 150-ft tall will create new icon for the park skyline • Opening Memorial Day weekend

November 2010

55

Six Flags Magic Mountain Los Angeles Los Angeles

Coaster capital of the World! • Home to 18 roller coasters … more than any other theme park on the Planet! • Home of X2, the world’s first 5th dimension coaster •H Home off Tatsu, T t th world’s the ld’ ttallest, ll t ffastest t t and longest flying coaster • Year-round park offering seasonal shows and events for the whole family

November 2010

56

Six Flags Magic Mountain Coming in 2011 Coming in 2011…

Superman Reverse Launch Coaster • Ride backward in new high-tech trains • Opening Spring Break Green Lantern High Thrill Coaster • Cars rotate head-over-heals head over heals – First of its kind in North America • Opening Memorial weekend Little Flash Family Coaster • Opening early May

November 2010

57


N Nancy K Krejsa j


Jim Reid-Anderson


Al Weber


John Odum


Tom Iven

• In-Park Sales

John Bement


David McKillips


Brett Petit


John D Duffey ffe

• Summary

Jim Reid-Anderson

• Q & A Session

November 2010

58

In‐Park Sales In-Park offerings are a key part of the overall Six Flags experience 2009 Revenue Contribution(1)

• Leverage best in class brands using quality y products p relevant q

5% 41%

• Offer world class service

In-Park Sales Ticket Sales Sponsorship & Licensing

54%

– Speed – Cleanliness Per Capita Spending

• Execute operational efficiency • Drive profitability

$16.39

$14.26

2005 1

Full-year 2009; excluding SFKK as discontinued operation

November 2010

Q3 10 LTM

59

In‐Park Sales Highly profitable businesses within the business • Over O 2,000 2 000 llocations ti and d 10,000 10 000 employees l

In-Park Sales

• Main business drivers ~15%

– Beverages g & meals – Proprietary branded merchandise

~50% ~35%

– Skill g games – Flash Passes Food

– Locker rentals

Games, Rentals, Arcades & Attractions, Parking

– Parking

Merchandise

November 2010

60

In‐Park Sales Immersing our guests – Focused on continued growth • Invest I t to t expand d currentt offerings ff i and d profit fit margin i • Proactive management via real-time business metrics – Establish national p pricing g with regional g adjustments j – Incent guest spending through bundled packages and multi-purchases

• Foster park plans and execution that promote field ownership • Leverage national marketing to provide volume and organic growth

November 2010

61


N Nancy K Krejsa j


Jim Reid-Anderson


Al Weber


John Odum


Tom Iven

• In-Park Sales

John Bement


David McKillips


Brett Petit


John D Duffey ffe

• Summary

Jim Reid-Anderson

• Q & A Session

November 2010

62

Corporate Alliances

November 2010

63

Valuable Advertising Platform Monetize brand strength, market position and guest loyalty • Sponsorship S hi & Media M di Sales S l – Nation’s largest and most sophisticated regional and national theme park media network – Serves 9 of the top 10 DMA’s with strong delivery in top 50 markets – Doubled revenue since 2005 – high margin business – Serving local, regional and national advertisers

• Competitive Advantage

Comparative Attendance (MM’s)(1)

– Greater attendance and dwell time versus lucrative professional sports leagues

24.0 21.5 21.2

– Family demographic, reaching gate-keepers, teens and kids • 60% of 2011 business known – Many multi-year contracts November 2010

17.3 6.9 1. Source: Bias Sports research, league websites and Nielsen 2008-2009 Season: NFL, NBA, NHL 2007 Season: NASCAR

64

Unique Offering Offering sight, sound, motion, experiential and brand value • Monetize M ti the th Six Si Flags Fl brand b d – Inbound: Captive audience with massive reach – Outbound: Strong brand appeal for consumer and retail channels

• Multi-Faceted Sales Approach In-Park Media

November 2010

Special Events

Promotions

Branded Product

65

Select Partners Attracting blue chip sponsors and advertisers

November 2010

66

Well‐Positioned for Future Growth Digital out-of-home expected to keep growing at 15% per year(1) • Digital out-of-home (“DOOH”) makes up 34% of overall out-of-home(1) • DOOH spending has tripled since 2002(1) • Six Flags TV will introduce content blocks attracting long-form advertisers • Lucrative L crati e categories still open – Automotive, Insurance, Travel, Retail, Electronics, Healthcare • $11MM invested in in in-park park DOOH over last 4 years – Adding 5MM impressions with televisions on new rides in 2011

1

Source: PQ media – Digital Insights

November 2010

67


N Nancy K Krejsa j


Jim Reid-Anderson


Al Weber


John Odum


Tom Iven

• In-Park Sales

John Bement


David McKillips


Brett Petit


John D Duffey ffe

• Summary

Jim Reid-Anderson

• Q & A Session

November 2010

68

Marketing Strategy Marketing mix • Leverage park “news” to drive trial & urgency

Product

– Family – kids areas, water park’s, broad thrills – Teens – coasters,, big g thrills,, concerts

Pricing

Promotion

November 2010

• Discount driven industry; Six Flags is deeper than most • Improve admission per cap by managing pricing

• Consumer advertising • Public promotions, group sales and publicity

69

Pricing Strategy Multi-year pricing strategy • Improve I admission d i i per caps • Continue to drive ticket purchase online in advance of visit g migration g between tickets • Raise the floor across all price levels to manage • Fence discounts for seasonality and to create urgency • Drive frequency & loyalty with season passes and added value – Protect and grow season pass sales to maximize revenue per guest

• Reduce non-selling complimentary tickets

November 2010

70

Promotions Media Making our media buys more effective and efficient

• Manage the media mix of TV with radio, cable and digital • Alternative ad lengths and scheduling • Dedicated, targeted campaigns – New product – Moms and teens – Season pass – Seasonal events

• Leverage grassroots channels

November 2010

71

Promotion Messaging New campaign focuses on local park experience • New N creative ti campaign i – Capitalize on each parks specific market strengths – Reclaim our thrill positioning – Broaden appeal for families and recapture teens – Increase the value perception of parks

National

November 2010

Local

72


N Nancy K Krejsa j


Jim Reid-Anderson


Al Weber


John Odum


Tom Iven

• In-Park Sales

John Bement


David McKillips


Brett Petit


John D Duffey ffe

• Summary

Jim Reid-Anderson

• Q & A Session

November 2010

73

Financial Overview Creating shareholder value • Increase per capita spending – “Fenced” discounts – Moderate price increases – Focus on execution of In-Park Sales

• Reduce operating costs • Drive significant cash flow • Reduce cost of debt


74

Financial Performance Strong Q3 performance Comparison vs. Prior Year ($MM’s, ex. Per Cap)(1)(2) Q3 10

Q3 10 YTD B/(W)

Q3 10 LTM

B/(W)

B/(W)

Attendance

2010 11.7

2009 ‐

2010 21.2

2009 0.5

LTM 23.8

FY 2009 FY 2009 0.5

Per Cap

$ 40.16

$ 1.81

$ 39.66

$ 1.09

$ 39.61

$ 0.98

Revenue

$ 476

$ 26

$ 854

$ 56

$ 955

$ 56

COGS

36

1

70

(2)

77

(2)

Operating Costs (3) Depreciation & Amortization

184

6

482

15

589

15

44

(8)

120

(15)

157

(15)

Stock Based Compensation

5

(5)

6

(4)

7

(4)

Operating Income

$ 206

$ 21

$ 176

$ 51

$ 126

$ 51

Modified EBITDA

$ 256

$ 34

$ 305

$ 73

$ 292

$ 73

53.9%

4.4%

35.7%

6.6%

30.6%

6.2%

$ $ 239

$ $ 31

$ $ 273

$ $ 69

$ $ 266

$ $ 69

Modified EBITDA Margin Adjusted EBITDA Adjusted EBITDA 1

Excludes SFKK as discontinued operation the exception of Adjusted EBITDA, 2009 does not include the results for the Six Flags Great Escape Lodge and Indoor Waterpark, which was consolidated beginning in 2010 due to new accounting rules and has not been consolidated in the prior-year results 3 Excludes depreciation, amortization, stock based compensation, loss on disposal of assets and other income (expense) 2 With

November 2010

75

Expense Reductions Continued focus on reducing costs • Reduced headcount – Corporate – Park back office functions

• Optimize seasonal labor • More focused and cost effective marketing • Reduce non-labor operating expenses Cash Operating Expense ($MM’s) $613 $604 $589

2008

November 2010

2009

Q310 LTM 76

Adjusted EBITDA Strong swing to profitability Adjusted EBITDA ($MM’s)(1)(2)

$266 $239 $197

$95

$(7) $(60) 2009 Modified EBITDA Margin:

1 2

24 24.5% 5%

Q409 (12 (12.7)% 7)%

Q110 (107 (107.3)% 3)%

Q210 34 34.4% 4%

Q310 53 53.9% 9%

Q310 LTM 30 6% 30.6%

Excludes SFKK as discontinued operation LTM as of September 30, 2010

November 2010

77

Debt / Interest Expense Restructuring provides significant upside to interest cost

Debt ($MM’s)

Interest Expense ($MM’s) $174

$2 407 $2,407

December 2009

1Assuming

$1,043

$1,018

June 2010

September 2010

$71

2009

(1)

Annual Proforma

9/30/10 debt level and interest rates

November 2010

78

Debt Structure Opportunity Current debt is high cost – Potential opportunity to reduce interest expense Current Debt ($MM’s)

First Lien Term Second Lien Term Other

Amount

Rate

745 250 33

6.00% 9.25%

Libor ((2% Floor)) + 400bps p Libor (2% Floor) + 725bps

Potential opportunity pricing g=$ $8MM annual interest savings g • If all term debt was at First Lien p • Every further 25 bps reduction in pricing = $2.5MM in annual interest savings

November 2010

79

Cash Earnings GAAP earnings only partially reflect company’s value D Depreciation i ti & Amortization A ti ti • D&A increased due to fresh start accounting $ million

D&A CAPEX Positive cash effect

170 – 180 80 – 90 80 – 100

C hT Cash Tax Savings S i • $1.3 BN of net operating loss carry forwards remain • Income tax payments ~$10-15 million for several years

Cash Flow

1

Fully diluted shares outstanding as of 9/30/10 of 27,516,000 November 2010

$MM s (ex. $MM’s (ex CEPS) Adjusted EBITDA CAPEX Taxes Interest (Pro Forma) Cash Flow

LTM 266 86 8 71 101

Aspirational 350 80 – 90 10 – 15 55 – 65 180 – 205

Cash EPS (1)

3.69

6.50 – 7.50 80

Leverage Ratio Opportunity to receive credit for performance

Healthy Leverage Ratio(1)(2)

6.6x 3.9x

Six Flags

Corporate Ratings:

B2 / B

4.5x

4.9x

Cedar Fair

Busch Gardens

Ba3 / B+

Universal Orlando

Ba3 / BB-

B1 / B

1

Total leverage ratio for Six Flags is total debt/Adjusted EBITDA (total debt includes HWP debt of $32.2MM); based on LTM as of 9/30/10; excludes SFKK as discontinued operation 2 Competitor data from most recent Rating Agency reports, websites, public filings and news reports November 2010

81

Liquidity Significant liquidity to sustain seasonal operations

Liquidity ($MM’s)

$523

Ti Time Warner W Facility F ilit (1) Undrawn Revolver(2)

$390

$150

$150

$118

$118 $255

Unrestricted Cash

$122 6/30/10

1 2

9/30/10

Multi-draw back stop facility for potential partnership puts Net of $2.0MM in outstanding letters of credit

November 2010

82

Partnership Parks Six Flags manages two parks owned in a partnership Six Flags O Over Texas T

• Ownership – Six Flags – Limited Partners

Six Flags O Over Georgia G i

53% 47%

30% 70%

$ 19MM $ 18MM

$ 7MM $ 18MM

3%

3%

• 2010 Minimum distributions – Six Flags – Limited Partners

• Six Flags management fee(1)

• Limited partners have the ability to put up to 5% of their units per year plus any prior year input units Historical Partnership Park Put Amounts ($MM’s)(2) $80

$66

$40 $7

$3

$2

$1

$6

1999

2000

2001

2002

2003

$ $-

$ $-

$2

$6

$2

2004

2005

2006

2007

2008

$6

$2009

2010

1

Based on gross revenue, payable only after payment of minimum distribution 2 Gross “put” amount, general partner has right to buy up to 50% of units put November 2010

83

Additional Valuable Assets Non-core assets provide significant potential value

dick clark productions

International Licensing

Excess land

• ~39% ownership

• Strong international brand recognition

• Six Flags has in excess of 1,000 acres of potentially developable land across the portfolio p

• Intellectual property: o Golden Globes o American Music Awards o Academy of Country Music Awards o So You Think You Can Dance

• Zero capital investment model – “franchise” franchise like approach

• Noteworthy locations: o New Jersey ~700 acres o Washington DC ~300 acres o St. Louis ~240 acres

• $41MM $ 1 dividend Q3 ’10

November 2010

84

“Project 350” An aspirational but achievable Adjusted EBITDA goal Adjusted EBITDA ($MM’s)(1) $400

$350

Key Drivers: • Attendance growth

$300

• Effective yield management

$266

• Cost efficiencies $200

$197

– – – –

$100 2009

1

Q310 LTM

Corporate overhead Labor Procurement Non-labor operating expenses

Aspirational Goal

Excludes SFKK as discontinued operation

November 2010

85


N Nancy K Krejsa j


Jim Reid-Anderson


Al Weber


John Odum


Tom Iven

• In-Park Sales

John Bement


David McKillips


Brett Petit


John D Duffey ffe

• Summary

Jim Reid-Anderson

• Q & A Session

November 2010

86

Summary A focus on the basics! • Enhance Six Flags’ position in the leisure industry • Focus on theme parks • Delight our guests • Leverage our brand • Improve revenue growth, efficiency and cash flow • Improve p capital p structure


87


N Nancy K Krejsa j


Jim Reid-Anderson


Al Weber


John Odum


Tom Iven

• In-Park Sales

John Bement


David McKillips


Brett Petit


John D Duffey ffe

• Summary

Jim Reid-Anderson

• Q & A Session

November 2010

88

Six Flags Entertainment Corp.

Reconciliation of Non‐GAAP Measures ($MM) Net Income (Loss) (Income) Loss from Discontinued Operations Income Tax Expense Reorganization Items Restructure Costs Other Expense Net Loss on Debt Extinguishment Equity in (Income) Loss of Partnerships Interest Expense (net) Loss on Disposal of Assets Amortization Depreciation Stock-based Compensation Impact off Fresh Start S Valuation Adjustments Modified EBITDA Third Party Interest in EBITDA of Certain Parks Adjusted EBITDA

Full Year 2009

Q3 2010

YTDQ3 2010

LTM Q3 2010

(194) 34 3 102 17 (3) 105 11 1 141 3 -

152 (0) 8 4 15 0 1 1 20 5 5 39 5 1

730 (9) 69 (762) 31 1 1 0 109 7 8 112 6 3

614 23 67 (746) 31 (0) 1 (1) 124 13 8 148 7 3

220 (23)

256 (18)

305 (32)

292 (27)

197

239

273

266

Adjusted EBITDA Capital Expenditures (net of property insurance recoveries) Cash Interest (proforma for debt as of 9/30/10) Cash Taxes

266 (86) (71) (8)

Free Cash Flow

101

Shares Outstanding at 9/30/10 (weighted average shares outstanding, basic and diluted) C h EPS Cash

November 2010

27.516 $

3 69 3.69

90

Disclaimer Note About Forward-Looking Information • The information contained in this presentation, other than purely historical information, consists of "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. • We caution you therefore f that you should not rely on any off these forward-looking f statements as statements off historical fact f or as guarantees or assurances off future f performance. f These risks and uncertainties include, but are not limited to: (i) the potential adverse impact of the Chapter 11 filing on our operations, management and employees, (ii) customer response to the Chapter 11 filing, (iii) the adequacy of cash flows from operations, available cash and available amounts under our credit facilities to meet our future liquidity needs, (iv) our ability to improve operating results by implementing strategic cost reductions, and organizational and personnel changes without adversely affecting our business, and (v) our operations and results of operations. Additional important factors that could cause actual results to differ materially from our expectations include the following: (i) factors impacting attendance, such as local conditions, contagious diseases, events, disturbances and terrorist activities; (ii) accidents occurring at our parks; (iii) adverse weather conditions; (iv) general economic conditions; (v) competition with other theme parks and other entertainment alternatives; (vi) changes in consumer spending patterns; and (vii) pending, threatened or future legal proceedings. • Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the caption “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 and our Annual Report on Form 10-K for the year ended December 31, 31 2009, 2009 which are available on our website at www www.sixflags.com. sixflags com • Any forward-looking statement made by us in this presentation, or on our behalf by our directors, officers or employees related to the information contained herein, speaks only as of the date of this presentation. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. Non-GAAP Financial Measures • The non-GAAP financial measures defined herein are used throughout this presentation and a reconciliation to GAAP has been included in the appendix of this presentation • Adjusted EBITDA, a non-GAAP measure, is defined as our consolidated income (loss) from continuing operations: (i) excluding the cumulative effect of changes in accounting principles, fresh start accounting valuation adjustments, discontinued operations, income tax expense or benefit, reorganization items, restructure costs, other income or expense, gain or loss on early extinguishment of debt, equity in operations of partnerships, interest expense (net), amortization, depreciation, stock-based compensation, gain or loss on disposal of assets, interests of third parties in the Adjusted EBITDA of properties that are less than wholly owned by Six Flags (consisting of Six Flags Over Georgia Georgia, Six Flags Over Texas Texas, Six Flags White Water Atlanta and Six Flags Great Escape Lodge & Indoor Waterpark (the “Lodge”)), and (ii) plus our share of the Adjusted EBITDA of dick clark productions, inc. We believe that Adjusted EBITDA provides useful information to investors regarding Six Flags’ operating performance and our capacity to incur and service debt and fund capital expenditures. We believe that Adjusted EBITDA is useful to investors, equity analysts and rating agencies as a measure of our performance. We use Adjusted EBITDA in its internal evaluation of operating effectiveness and decisions regarding the allocation of resources. In addition, Adjusted EBITDA is approximately equal to "Parent Consolidated Adjusted EBITDA" as defined in our secured credit facilities, except that Parent Consolidated Adjusted EBITDA excludes Adjusted EBITDA from equity investees that is not distributed to us in cash on a net basis and has limitations on the amounts of certain expenses that are excluded from the calculation. Adjusted EBITDA is not defined by GAAP and should not be considered in isolation or as an alternative to net income (loss), income (loss) from continuing operations, net cash provided by (used in) operating, investing and financing activities or other financial data prepared in accordance with GAAP or as an indicator of our operating performance. Adjusted EBITDA as defined herein may differ from similarly titled measures presented by other companies. • Modified EBITDA, a non-GAAP measure, is defined as Adjusted EBITDA plus the interests of third parties in the Adjusted EBITDA of the properties that are less than wholly owned (consisting of Six Flags Over Georgia, Six Flags White Water Atlanta, Six Flags Over Texas, the Lodge plus our interest in the Adjusted EBITDA of dick clark productions, inc.). We believe that Modified EBITDA is useful in the same manner as Adjusted EBITDA, with the distinction of representing a measure that can be more readily compared to other companies that do not have interests of third parties in any of their properties or equity investments. Modified EBITDA is not defined by GAAP and should not be considered in isolation or as an alternative to net income (loss), income (loss) from continuing operations, net cash provided by (used in) operating, investing and financing activities or other financial data prepared in accordance with GAAP or as an indicator of our operating performance. Modified EBITDA as defined herein may differ from similarly titled measures presented by other companies. • Free Cash Flow, a non-GAAP measure, is defined as Adjusted EBITDA less (i) cash paid for interest expense net of interest income receipts, (ii) capital expenditures net of property insurance recoveries and (iii) cash taxes. We have excluded from the definition of Free Cash Flow the $70.3 million in post-petition interest paid to the holders of the Six Flags Operations notes that were extinguished in April 2010 and the deferred financing costs related to the Company's new debt of $41.8 million incurred in the second and third quarters of 2010, due to the unusual nature of these items. We believe that Free Cash Flow is useful to investors, equity analysts and rating agencies as a performance measure. We use Free Cash Flow in its internal evaluation of operating effectiveness and decisions regarding the allocation of ), income (loss) ( ) from continuing g operations, p , net cash p provided by y ((used in)) resources. Free Cash Flow is not defined byy GAAP and should not be considered in isolation or as an alternative to net income ((loss), operating, investing and financing activities or other financial data prepared in accordance with GAAP or as an indicator of the Company's operating performance. Free Cash Flow as defined herein may differ from similarly titled measures presented by other companies. • Cash Operating Expenses are operating expenses excluding cost of sales, depreciation, amortization, stock-based compensation, and gain/loss on disposal of assets Market and Industry Data • This presentation includes market, industry and competitor data, forecasts and valuations that have been obtained from independent consultant reports, publicly available information, various industry publications and other published industry sources. Although we believe these sources are reliable, we have not independently verified the information and cannot make any representation as to the accuracy or completeness of such information.

91