Real Estate Overview 2008 Investor Meeting

Real Estate Overview 2008 Investor Meeting Rob Katz Chief Executive Officer Vail Resorts Jeff Jones Chief Financial Officer Vail Resorts Keith Fernandez President VRDC April 2, 2008 1

Caution on Forward Looking Statements 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. 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: economic downturns; terrorist acts upon the United States; threat of or actual war; unfavorable weather conditions; our ability to obtain financing on terms acceptable to us to finance our real estate investments, capital expenditures and growth strategy; our ability to continue to grow our resort and real estate operations; competition in our mountain and lodging businesses; our ability to hire and retain a sufficient seasonal workforce; our ability to successfully initiate and/or complete real estate development projects and achieve the anticipated financial benefits from such projects; implications arising from new Financial Accounting Standards Board ( FASB )/governmental legislation, rulings or interpretations; our reliance on government permits or approvals for our use of federal land or to make operational improvements; our ability to integrate and successfully operate future acquisitions; and adverse consequences of current or future legal claims. 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. 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. 2

Disclaimer The artistic renderings included herein are for illustrative purposes only, and do not necessarily represent the ultimate development depicted. All proposed development projects are contingent upon receipt of all necessary regulatory approvals, among other things. Vail Resorts or its subsidiaries are not bound to construct the projects or amenities as set forth herein. No reliance should be placed on the information contained herein with respect to expected development activity of Vail Resorts or its subsidiaries. 3

Competitive Advantage Select number of luxury and ultra-luxury projects Significant barriers to entry for other developers Limited supply of developable land Location, location, location Projects at the base of our world-class mountain resorts Ability to create ski-in/ski-out locations Value Creation for Mountain & Lodging Segments Enhanced mountain amenities New lodging assets Development of Private Membership Clubs Significant development pipeline Our substantial land holdings have relatively low basis Over 90% of land held for more than 10 years Ability to utilize resort land for development Leverage Mountain & Lodging customer database Attractive guest demographics/high income customer base Ability to package resort amenities with real estate product Experienced leadership 4

Projects Under Development Most Recent Guidance (in millions) # of Units Units Under % Under Contract Contract Avg Price/SF Gross Revenue (in millions) Projected Closings Units Closed The Arrabelle at Vail Square 67 67 100% $1,150 $225.7 Jan-Jul 08 22 Real Estate Income [1] $30 - $40 Net Investment in Resort Depreciable Assets $50 - $70 Vail s Front Door 13 13 100% $2,488 $159.6 Jul-Dec 08 N/A Real Estate Income [1] $65 - $75 Net Investment in Resort Depreciable Assets $25 - $40 The Ritz-Carlton Residences, Vail [2] Whole Ownership 71 47 66% $1,655 [3] $159.4 [3] Fall 2010 N/A Fractional 45 45 100% $1,200 $110.7 Fall 2010 N/A Real Estate Income [1] $80 - $90 Crystal Peak Lodge and Peak 7 Fractional Land 45 45 100% $963 [4] $56.6 [4] Fall 2008 [5] N/A Real Estate Income [1] $8 - $13 [1] Real Estate Income is presented before provision for income taxes and before allocated corporate or Vail Resorts Development Company overhead. [2] The unit mix for The Ritz-Carlton Residences, Vail includes 71 whole ownership units plus 45 units sold in bulk to Ritz-Carlton Development Company (which will be marketed and sold by Ritz-Carlton Development Company as fractional ownership Ritz-Carlton Club units) [3] Based on units under contract. [4] Crystal Peak Lodge only. [5] The sale of the fractional land closed in Fiscal 2007. 5

Resort Improvements Arrabelle The Arrabelle at Vail Square, a RockResort luxury hotel with 36 hotel rooms plus up to an additional 50 lock-off units Hotel amenities include a RockResort Spa, over 5,200 SF of meeting space, fitness center, pool and Centre V restaurant 33,000 SF of retail space 100% leased Tenants include Patagonia, Burton, Quicksilver and Vail Sports (all operated by SSV) plus upscale boutiques, Chophouse & Blue Moose restaurants 20,000 SF of new skier services and mountain operations space, including a state-of-the-art children s ski school facility The Arrabelle Club Streetscape improvements enhance the guest experience in Lionshead Vail s Front Door New skier lodge at the base of the Vista Bahn chairlift Ticket windows, ski school, rental shop, café, ski storage Vail Mountain Club New RockResort Spa for The Lodge at Vail plus the creation of two spa suites (5 keys ) Remodeled kitchen for Cucina Rustica restaurant in The Lodge at Vail All-new skier plaza at the Vista Bahn, including re-grading for easier skier access Breckenridge Peak 7 Addition of a new skier cafeteria Relocation and upgrades to the Peak 7 chairlift including incremental snowmaking 6

Private Membership Clubs Non-Equity Memberships 30-year Membership Deposit Increases resort loyalty Typical amenities include a mix of the following: Slope-side parking Private locker room Ski storage and valet Planned on-mountain dining Fitness/spa facilities Social gathering space Ability to transfer membership with real property Significant source of cash Initiation fees collected up front Do not pay taxes on initiation fees due to membership deposit structure Revenues recognized pro-rata over 30 years Membership Deposit is returned (w/o interest) after 30 years Must leave deposit in club to continue membership Deposit refunded on resignation only when replacement member joins Upside on increased initiation fees comes to Company Dues structured to cover club operating costs 7 Vail Mountain Club 400 Memberships Currently Available 200 Full Memberships (includes valet parking) currently priced at $275,000 $100,000 non-refundable deposit due at signing; remainder due at club opening 200 Social Memberships (no parking privileges) currently priced at $150,000 $50,000 non-refundable deposit due at signing; remainder due at club opening Current sales status Full Social Total Number of Members 182 199 381 $ Value (in millions) $46.7 $21.8 $68.5 Members @ 3/10/08 161 171 332 New Sales 21 28 49 Total Current Members 182 199 381

Financial Cycle Pre-Development Planning/Entitlement 1-5+ years Planning costs incurred are reflected as RE CapEx and held on Balance Sheet as Real Estate Held for Sale and Investment ( REHFS ) Generally includes transfer of land basis from resort use out of PP&E into REHFS Infrequently can include land acquisition costs directly to REHFS Pre-Sales Launch of sales effort prior to construction of project Non-binding reservation until HUD approvals are obtained Upon HUD approval, reservations are converted to binding contracts; new sales go straight to contract Collection of Deposit Total deposit collected is at least 15% of purchase price for all current vertical development projects Minimum of 5% collected at reservation Minimum of 10% due with executed contract Remainder collected at start of construction Deposit is non-refundable upon execution of binding contract (unless unit is not delivered) Recorded as Deposit Liability on balance sheet Cash can be used to fund construction 8

Financial Cycle Commencement of Construction Execution of Guaranteed Maximum Price ( GMP ) construction contract with General Contractor ( GC ) Costs incurred are reflected as RE CapEx and held on Balance Sheet as REHFS If project includes Resort Amenities, direct costs incurred to construct those assets are reflected as Resort CapEx and included in PP&E on the Balance Sheet Purchaser Upgrades Paid up front; non-refundable Project Close-out Residential Unit closings Revenue from sale is recorded (total revenue including deposit and cash at closing) REHFS transferred to Cost of Sales Remainder of purchase price due is collected Selling costs (commissions) & closing costs are recorded as expense Resort Amenities Common construction costs allocable to Resort Amenities are transferred from REHFS to PP&E on the Balance Sheet Depreciation commences 9

Financial Statement Impact Project Example Gross Revenue: Land Basis: Pre-Construction Planning, Design & Entitlements: Construction Costs: Real Estate Reported EBITDA: $10.0 million $0.5 million $1.0 million $6.0 million $2.5 million Income Statement Balance Sheet Statement of Cash Flows $ (500) [1] Acquisition of land parcel No Impact REHFS Investment in Real Estate (1,000) Pre-Construction Planning, Design & Entitlements No Impact REHFS Investment in Real Estate 1,500 Pre-Sales 15% Deposit No Impact Deferred Deposits Deferred Deposits (3,000) Year 1 Construction Costs [2] No Impact REHFS Investment in Real Estate (3,000) Year 2 Construction Costs [2] No Impact REHFS Investment in Real Estate Project Close-Out at Closing of Units in Year 2 $ 10,000 Revenue 85% Cash; 15% Deferred Deposits (7,500) Operating Expense 100% from REHFS $ 2,500 [3] Reported EBITDA [1] Typically this land has previously been acquired and is transferred from PP&E. [2] Includes capitalized interest and capitalized labor. [3] Excludes overhead and marketing costs which are expensed as incurred. $5.5 million positive cash flow in Year 2: $2.5mm Reported EBITDA + $7.5mm adjustment for Non-Cash COS - $3.0mm Investment in Real Estate (above) - $1.5mm Deferred Deposits 10

Land Component of REHFS ($ in thousands) Acres Basis Current Appraised Value Entitlement Status/Current Zoning The Arrabelle at Vail Square [1] 6.2 $ 6,600 $36,750 Fully entitled Vail's Front Door [2] 7.2 8,911 [6] 24,000 Fully entitled The Ritz-Carlton Residences, Vail [3] 2.4 6,055 30,500 Fully entitled Crystal Peak Lodge [4] 0.8 1,744 8,651 Fully entitled Total land under development 16.6 $23,310 $99,901 Ever Vail [5] 2.7 $13,771 [7] 1.4 million total developable SF; 485,000 SF residential; 157,000 SF hotel; 205,000 commercial Breckenridge Peak 8 22.7 11,578 Up to 350,000 SF residential (280 units); 62,000 SF guest services/commercial One River Run - Keystone 4.2 5,257 River Run Grand Lodge - Keystone 3.0 5,104 One River Run & Grand Lodge combined: 364 residential units (up to 500,000 saleable SF) and 30,000 SF commercial Keystone Mountain House 48.4 6,426 588 residential units (up to 823,000 saleable SF); 48,000 SF commercial; 89,000 SF resort support Keystone Miscellaneous 42.8 13,920 170 residential units (up to 238,000 saleable SF); 243 employee housing units; 2,000 SF commercial JHGT Single-Family Lots 3.0 1,562 4 single-family lots Other Miscellaneous 586 Total developable land $58,204 Total REHFS land basis $81,514 [1] Appraisal dated April 2005. [2] Appraisal dated February 2006. [3] Appraisal dated December 2007. [4] Appraisal dated December 2006. [5] Excludes land currently used as Vail Mountain maintenance facility and shop yard [6] Includes fair value basis of land swap executed in 2006 with USFS [7] Includes land acquired in last 4 years. Note: Does not include any land currently used in operations (i.e. surface parking lots) 11

Pro Forma Development Updated frequently throughout design process Real Estate Reported EBITDA Value of Resort Amenities Cash return in excess of land value Contractor/Vendor Selection Financial Strength Resources Experience Programming Affiliates Meetings Market Studies Focus Groups ROI Analysis Architect Selection BMI Building Modeling Construction Documents 3rd-Party Peer Review Constructability Schedule Cost Full & Complete set of Construction Documents ( CD s ) Development Process GMP Contract Locks in most costs up front/reduces risk Pricing Leverage SSF brokerage expertise 50% owned joint venture; largest brokerage in Eagle County Market Data Pricing Studies Market Activity Pre-Sale Requirements Achieved prior to breaking ground Set for each project in consultation with the Board Seller contingency in Purchase & Sale contract Significant up-front deposit (15%) Non-refundable unless we don t build project Contract Forms Use of Disciplined Legal Documents Specifically tailored American Institute of Architects ( AIA ) contract documents Substantially Strengthened GMP GC Contract Document Internal Review Monthly PM Meetings Timberline integrated job cost system 12

Vail Village VAIL S FRONT DOOR EVER VAIL RITZ-CARLTON RESIDENCES ARRABELLE 13

14 LionsHead

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16 Vail s Front Door

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18 Vail s Front Door

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22 Breckenridge

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25 Peak 7

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Project Pipeline The Breckenridge Peaks Ever Vail River Run (Keystone) Arrowhead Skier Parking Lot Breckenridge Skier Parking Lot Beaver Creek Skier Parking Lots Red House Site (Avon) Heavenly Stagecoach Base Area Keystone Mountain House Base Area 28

29 The Breckenridge Peaks One Ski Hill Place Pre-sale hurdle has been met; construction expected to commence shortly 88 whole-ownership condos Launched sales December 2007 67 units released for sale 50% of units under contract (44 units) at an average of $1,233/SF 102,000 saleable residential SF Steps from 4 lifts and the BreckConnect gondola Significant Resort Amenities Aquatics center with 2 swimming pools & a hot tub Conference Center with business center Owner s ski lounge with private locker and shower facility Fitness facility with steam room, sauna & sports massage center 2 movie lounges and a game room Après-ski bar, café 17,000 SF skier restaurant 2-lane Bowling Alley Peak 8 Total Build-out Fully entitled Master Plan 5 6 buildings 325,000-350,000 SF Saleable Residential Approximately 48,000 SF of skier services and 14,000 SF of commercial space Proposed amenities include: Restaurants, spa, conference facilities, aquatics area, fitness/sauna & steam area, offices, retail and rental shops, ski school, ticket offices

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31 Peak 8

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Current Development Plan Ever Vail 1.8 million total square feet 601,000 total saleable square feet 300 Whole Ownership Condos totaling 542,000 square feet 33 Fractional Ownership Condos totaling 59,000 square feet 158,000 SF branded hotel development with 193 keys 217,000 SF commercial development Office-Retail, Food and Beverage 104,000 SF Mountain Operations Shop Yard facilities 49,000 SF onsite employee housing Base of new High-Speed Gondola centrally located within the development Structured skier parking 33

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37 Keystone

River Run Village EXISTING GONDOLA 38

39 River Run Village

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