FROM THE PRESIDENT AND CEO

The 2019 Annual Report showcases the accomplishments of Venues over the past year at the properties we operate in Louisville: the Kentucky Exposition Center and the Kentucky International Convention Center. In addition to operating two facilities, we produce three signature events that celebrate the agricultural progress of the state.

My experience has been humbling for all the right reasons. A little more than a year ago, I joined the Kentucky Venues team as the President & CEO. My interactions with fellow team members, state and local leaders have given me an opportunity to understand what determines the success of our organization — the ability to listen and to serve. To reach our goal of being an example of how state government can operate effectively and efficiently, our team has dedicated more time to understand the expectations of our clients and guests. We’ve responded with notable infrastructure, amenity and service improvements thanks to the support of the Kentucky General Assembly and partners across the state. In 2019, our clients, events and facilities all reached outstanding levels of achievement that we believe are worth recognition in our Annual Report.

We look forward to seeing you at the next event!

Regards,

David S. Beck, President and CEO

KENTUCKY STATE FAIR BOARD MEMBERS

Andy Beshear Dr. Nancy Cox Joseph T. Goggin EX-OFFICIO Governor Dean and Director Danville Commonwealth of College of Agriculture, Holly M. Johnson Kentucky Food and Environment Michael J. Grisanti Secretary of Finance and Frankfort University of Kentucky Louisville Administration Cabinet Lexington Frankfort Dr. Mark E. Lynn Philip McCoun Chairman Edward Bennett Shelbyville Gloria Bolin Louisville Shelbyville 4-H President Tandy C. Patrick Bloomfield Mike E. Berry Ryan Bivens Louisville Secretary of Tourism, Hodgenville Haley Nelson Arts & Heritage Cabinet Michael Poynter FFA President Louisville Marshall Coyle Stanford Frankfort Owingsville Ryan Quarles H. David Wallace Commissioner of Sharon Furches Verona Department of Murray Agriculture David Williams Georgetown Danville LEADERSHIP UPDATES

Bobby Bell Shawn Hensler Hired as Director of Expositions for the Kentucky Promoted to Executive Director of Public Safety and Exposition Center in September, Bobby oversees the Security for Kentucky Venues in November, Shawn production and success of our produced events and has 23 years of experience in law enforcement and brings 26 years of experience to the team. he serves both of our facilities in safety and security measures. Blake Henry Hired as General Manager for the Kentucky Amanda Cloyd International Convention Center in June, Blake oversees Hired as Director of Human Resources for Kentucky day-to-day operations with more than 20 years of Venues in July, Amanda brings more than 20 years of experience leading major convention, sporting and experience from notable agencies like the Kentucky entertainment facilities. State Police and Kentucky Department of Agriculture.

HOSTED EVENTS

CONNECT MARKETPLACE USITT CONFERENCE ICUEE 3,785 attendees & STAGE EXPO 19,000 attendees $4.5M est. economic impact 6,000 attendees $14.6M est. economic impact $3.5M est. economic impact

DANNY WIMMER NATIONAL STREET ROD NATIONAL VETERANS PRESENTS ASSOCIATION WHEELCHAIR GAMES 289,000 attendees 30,000 attendees 2,500 attendees $15.8M est. economic impact $15.6M est. economic impact $2.8M est. economic impact PRODUCED EVENTS FACILITY UPDATES

300 THOUSAND attendees

National Farm Machinery Show (NFMS) Spanning 1.2 million square feet, NFMS is the largest To maintain Kentucky Venues’ world-class facilities, indoor farm show in the country. Each year the latest both KEC and KICC undertook many improvement innovations in the agricultural industry debut at NFMS. projects. During KICC’s 2016-2018 renovation, The Championship Tractor Pull, held in conjunction with the facility’s interior and half of the exterior was NFMS, brought 60K tractor pull fans to Freedom Hall. completely transformed. After reopening, roof work was completed on the eastern portion of the building. In 2019, work continued on the roof of the facility. KICC debuted a state-of-the-art conference theatre featuring a 220” video wall with cutting-edge video 589.2 and audio technology. THOUSAND Demolition was completed on old attendees and the Department of Transportation building. This project opened up new event and parking space, allowing KEC to pursue new sources of revenue. Additional renovations include energy-efficient LED (KSF) lighting, updated meeting rooms and renovated For the second consecutive year, attendees from bathrooms throughout the facility. all 120 Kentucky counties came together for food, entertainment, music and competition. With both record-breaking concerts and increased revenue, KSF continues to be where Kentucky comes together each SUSTAINABILITY PROGRESS year to celebrate the best of the Bluegrass State. As Kentucky Venues looks to the future, updates and projects are planned to use the Commonwealth’s resources wisely. Both facilities made significant strides towards increased energy efficiencies in the past year. 30 KICC (Built LEED Silver) THOUSAND • 32% reduction in total water usage entries • 23.64% savings in energy cost • 26% use of recycled building materials • Projected yearly volumes for storage and collection of recyclables: North American International Livestock Cardboard – 175,000 lbs Exposition (NAILE) Compost – 8,000 lbs The world’s largest all-breed, purebred livestock Pallets – 1,000 lbs. event, NAILE, attracted top-tier competitors from ten divisions to compete on the iconic green shavings. KEC The North American Championship Rodeo, held in • 20% - 35% LED lighting increase in efficiency conjunction with NAILE, saw the highest attendance in • 2.2 million kWh saved each year the last 11 years with near sellout crowds. • 17K gallons of water saved each year SIGNIFICANT ACHIEVEMENTS

Louder than Life International Construction Utility Equipment Located at KEC’s Highlands Festival Grounds, Exposition (ICUEE) Louder than Life was crowned the largest rock North America’s largest utility and construction trade festival in the United States with 128,000 fans. show, ICUEE, shattered attendance records at KEC.

National Street Rod Association (NSRA) Public Safety and Security The NSRA celebrated its 50th anniversary, 25 of Kentucky Venues developed an independent police which have been at KEC. The show saw an increase in force with sworn officers to ensure the safety and attendance and a record-breaking number of entries. protection of guests at both facilities.

Demolition Lauren Daigle Concert Cardinal Stadium and the Department of Kentucky State Fair Texas Roadhouse Concert Series Transportation building were demolished, adding set a daily attendance record with 11,000 fairgoers one million square feet of usable outdoor space. present to see Lauren Daigle perform.

FACILITIES SNAPSHOT

176 266.5 112 95.1 EVENTS MILLION $ EVENTS MILLION $ est. economic impact est. economic impact FINANCIAL REPORT

OVERVIEW CAPITAL PROJECTS FISCAL YEAR 2018-2019* Capital projects are long-term investments, including major maintenance or rehabilitation projects for existing facilities. OPERATING REVENUES Charges for services $44,327,380 Lease Income $2,398,731 KADF Funded Projects: Other Operating Income ** $4,852,181 Cardinal Stadium Demolition $3,500,000 DOT Demolition $1,000,000 Total Operating Revenues $51,578,292 Freedom Hall Make Up Ring $1,200,000 Freedom Hall Sound System $150,000 Renovate Freedom Hall Suites $150,000 OPERATING EXPENSES General & Administrative $4,267,039 Renovate North Wing Mezzanine Meeting Rooms $350,000 Operating $37,931,000 Direct Cost of Events $8,899,043 Study of KEC – Entry Gate $300,000 Interest Expense $937,560 Livestock Gates and Pins $200,000 Replacement of KEC Doors $150,000 Total Operating Expenses $52,034,642 Net Income From Operations *** ($456,350) Total $7,000,000

Capital Expenditures: NET INCOME RESULTS KICC Renovation Completion $207,000,000 Net Income (Before Audit Adjustments)*** ($456,350) Transfer from Commonwealth’s Facility Improvements: Capital Projects $6,709,723 KEC Roof Repairs $2,150,000 Transfer from Commonwealth KADF Fund $2,423,260 Freedom Hall Transfer from Commonwealth Sewer Line Replacement $2,140,000 KICC Renovation $2,928,268 South Wing B & C Less: Depreciation, Loss on Asset Disposals, Meeting Rooms $1,250,000 Pension Liability Adjustments ($22,550,453)

Total $5,540,000 Net Income ($10,945,552)

*** Source of data is the Kentucky State Fair Board audit report through fiscal year ending June 30, 2019.

*** Other Operating Income includes $4.1 million trasnferred from Commonwealth General Fund.

*** Net Income (Loss) from Operations before audit adjustments for depreciation, loss of asset disposals and pension laibility.

For more info about our shows, events 937 Phillips Lane • Louisville, KY 40209 and facilities, visit kyvenues.com. 1-502-367-5000