DXB Entertainments PJSCInvestor PresentationAugust | 2017
DisclaimerPRESENTATION AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR INTO ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL.
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The information set out in this presentation may be subject to updating, revision, verification and amendment and such information may change materially. Neither the Company, any of its parent or subsidiary undertakings, the subsidiary undertakings of such parent undertakings, nor any of such person’s respective directors, officers, employees, agents, affiliates or advisers is under an obligation to update or keep current the information contained in this presentation to which it relates or to provide the recipient of with access to any additional information that may arise in connection with it and any opinions expressed in this presentation are subject to change without notice. None of the Company or any of its parent or subsidiary undertakings, or the subsidiary undertakings of such parent undertakings, and any of such person’s respective directors, officers, employees, agents, affiliates or advisers shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this presentation, or otherwise arising in connection with this presentation.
This presentation is an advertisement for the purposes of the United Kingdom Prospectus Rules and the information contained herein are not an offer of securities for sale in the United States nor any other jurisdiction. This presentation does not constitute or form part of, and should not be construed as, any offer, invitation, solicitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever.
This presentation is for information purposes and convenient reference. It is not definitive advice, nor should it be relied upon as such. This presentation does not purport to contain all of the information that may be required to evaluate any potential transaction and should not be relied on in connection with any such potential transaction. Any projection, estimate, forecast or other ‘forward-looking’ statement in this presentation only illustrates hypothetical performance under specified assumptions of events or conditions, and is not a reliable indicator of future performance.
To the extent available, the industry and market data contained in this presentation may have come from official or third party sources. Such third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source, the Company has not independently verified the data contained therein. In addition, certain of the industry and market data contained in this presentation come from the Company's own internal research and estimates based on the knowledge and experience of the Company's management in the market in which the Company operates. While the Company generally believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the industry or market data contained in this presentation. You agree to be bound by the foregoing limitations and conditions and, in particular, will be deemed to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice.
LEGO ®, the LEGO logo and LEGOLAND ® are trademarks of the LEGO Group. ©2017 The LEGO Group. LEGOLAND IS A PART OF MERLIN ENTERTAINMENTS plc.
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Company Overview
About DXB Entertainments PJSC
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DXB Entertainments PJSC is a Dubai headquartered Leisure and Entertainment Companylisted on the Dubai Financial Market under the trading symbol DXBE.
DXBE is the owner of Dubai Parks and Resorts, the regions largest integrated theme parkdestination, with Five Theme Parks*, Two Hotels*, and One retail and dining facility allspread over 30.6 million sq.ft of land, with an estimated AED 13.2 billion in developmentcosts.
DXBE also manages 6 Dubai-based mid-way attractions in addition to a chain of cinemas,all owned by Meraas.
8.0bAED 8 billion equity
DXB Entertainments has raised AED 6.3 billion in equity through an IPO in 2014, and an additional AED 1.7 billion through a rights issue in 2016.
5.2bAED 5.2 billion financingDXB Entertainments has raised AED 4.2 billion through a financing facility for Phase I for DPR, and an additional AED 1 billion for Phase II.
6.2bAED 6.2 billion market capDXB Entertainments PJSC is listed on the Dubai Financial Market and has a market cap of AED 6.2 billion as at 31 July 2017.
* Phase II expansion, Six Flags Dubai opening in 2019 and LEGOLAND Hotel after 2018. LEGO, the LEGO ® logo and LEGOLAND ® are trademarks of the LEGO Group. ©2015 The LEGO Group. LEGOLAND IS A PART OF MERLIN ENTERTAINMENTS plc.
DXB Entertainments Since Inception
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2 0 1 2 2 0 1 4
Dubai Parks and Resorts project announced
Dubai Financial Market listing
The official inauguration of Dubai Parks and Resorts in December 2016 concluded a five-year journey and marked the end of construction of Phase I
2 0 1 5 2 0 1 6 THE FUTURE
LEGOLAND® Hotel Dubai to openadjacent toLEGOLAND® Dubai.
Planned to open in late 2019, Six Flags Dubai will be the fifth theme park at the Dubai Parks and Resorts destination, and will includeover 20 ridesand attractions for all ages across six themed zones.
Agreed major partnerships with globally recognised brands, including Lionsgate
Launched ‘Helmi’ scholarship programme,offering Emiratistraining in Orlando, USA
Broke ground on Six Flags Dubai
DPR’s first ride –The DragonCoaster installed at LEGOLAND®
Dubai
Company moves into operational phase asLEGOLAND® Dubai and Riverland™ Dubai opened 31 October
DXBEntertainments name change completed
Officialinauguration of DPR on 18thDecember
Rights issue forSix Flags Dubai
successfully completed
AED 2.6bSuccessful
completion of AED 2.6 billion
IPO
2 0 1 7
Ground work commenced on site
Lapita Hotel and LEGOLAND Water Park open to the public on 2 January
DreamWorks zone in MOTIONGATE unveiled to the public
CUMULATIVEProject Spend AED 2.6B AED 5.8B AED 10.5B PLANNED
Project Spend AED 2.7B
AED 4.2b
AED1.7b
Secured AED 4.2 billion syndicated
finance facility
Secured AED 993 million in
financing facility for Six Flags
AED 0.9bAgreement
with Meraas to manage
select L&E assets
The largest leisure and entertainment company in the region
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Theme ParksFamily
EntertainmentCenters
Retail and Hospitality
Coming Soon
* Phase II expansion, Six Flags Dubai opening in 2019 and LEGOLAND Hotel after 2018. LEGO, the LEGO ® logo and LEGOLAND ® are trademarks ofthe LEGO Group. ©2015 The LEGO Group. LEGOLAND IS A PART OF MERLIN ENTERTAINMENTS plc.
Shareholding structure
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A Dubai-based holding companyestablished in 2007, with operations andassets in the UAE and overseas
Has access to a huge land bank in primelocations throughout Dubai
Has launched several projects in thetourism, retail, hospitality, leisure andentertainment sectors
Is focused on introducing new and uniqueproducts to the market
Is committed to the success of DXBEntertainments
Sources: Meraas, Company information, Other public sources. Shareholder structure as at 31 July 2017.Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures
Meraas 52%Qatar Holding 11%Kuwait Investment Authority 5%Institutional 22%Retail 10%
Shareholder compositionAs at 31 July 2017
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Business Units
Dubai International Airport
Dubai World Central –Al Maktoum International Airport
63km
20km16
km
Theme Parks
DXB Entertainments owns five theme parks at Dubai Parks and Resorts
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27 rides and attractionsLargest Hollywood movie inspired themed park in the region, targeting all age groups and nationalities. IP partners include DreamWorks, Colombia Pictures, The Smurfs and Lionsgate.
Operated: Parques Reunidos Servicios Centrales
16 rides and attractionsThe world’s first Bollywood movie themed park, focused on action, dance, romance and flavoursbased on some of the biggest Bollywood blockbusters.
Operated: Parques Reunidos Servicios Centrales
40 rides and attractionsWhere LEGO® bricks come to life, the ultimate theme park for families with children aged 2-12, with over 15,000 LEGO® models made from 60 million LEGO® bricks.
Operated: Merlin Entertainments plc
20 slides and attractionsThe region’s only water park designed for families with children aged 2-12, with over 20 LEGO themed water slides and attractions.
Operated: Merlin Entertainments plc
20 rides and attractionsThe regions first Six Flags themed park which will offer high thrill entertainment for all ages groups when it opens in 2019.
Operated: Six Flags management agreement
Location: To be confirmed
Family Entertainment Centers
DXB Entertainments’ Family Entertainment Centers unit manages select Meraas owned leisure and entertainment offerings across the city of Dubai.
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Dubai International Airport
Location: City Walk
Indoor video gaming zone which includes virtual reality shooting, virtual reality racing, time-warped arcade and network games
Location: City Walk
Bio-dome housing a giant indoor ecosystem and 3,000 plants and animals
Location: The Beach
Outdoor water recreational venue offering various activities for toddlers and kids
Location: City Walk / The Beach
Indoor interactive games and play area for kids between the age of 2 to 10 years old
Gaming experience beyond virtual reality combining physical set with real-time interactive effects
Dubai International Airport
Dubai World Central –Al Maktoum International Airport
Retail and Hospitality
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Dubai International Airport
Dubai World Central –Al Maktoum International Airport
63km
20km16
km
HOSPITALITY
Over 750 rooms across two hotelsLapita™ Hotel operated by the Marriott Group with over 500 rooms. The LEGOLAND® Hotel is a 60:40 JV with Merlin Entertainments, currently under development
Location: Dubai Parks and Resorts
CINEMAS
3 CinemasOwned by Meraas, ROXY cinemas is a chain of cinemas with over 25 screens across three locations in Dubai
Location: City Walk / The Beach / Box Park
RETAIL & DINING
234,000 sq feet of GLAWith over 50 units leased out to third party tenants, Riverland™ Dubai is a themed retail and dining destination.
Location: Dubai Parks and Resorts
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Outlook and Strategy
Strategy
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01 Restructure DXB Entertainments• Restructure and decentralise responsibility towards the operational functions• Integrate the management of key Meraas leisure and entertainment offerings
02 Drive footfall and visitation by targeting the resident and GCC market• Redefine core resident market to include GCC and MENA• Simplify resident market pricing and create competitive annual pass offer
03 Activate B2B and core international markets• Simplify tourist/trade pricing structure• Activation of key source markets
04 Formulate a consistent brand message, identify core target market for each park and ensuremessaging is appropriately tailored for each experience• Promote destination in source markets through tour operators and trade partners• Promote individual brands and IPs in core / proximity markets• Focus on “showing experiences” as opposed to “telling”, immersive experiential marketing will be key
Become the regions leading operator of leisure and entertainment with a portfolio of over 15 offerings across Dubai
01 - Restructure DXB Entertainments
Align organization structure with strategic corporate goalsAlignment of management and
organizational structure with P&L
responsibility
Drive efficiencies and leveragesynergiesSimilar assets to be clustered together
to create operating, revenue and cost
efficiencies
Utilise best-in-class management capabilitiesLeverage management and
operational capabilities of operators and
operational teams in new decentralized
structure
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Owner of DPRLeverage the ownership of DPR, utilizing its IP rights, and create cross promotional sales, marketing packages and synergies
Manage Meraas L&E assetsUndertake the management of key Meraas L&E assets with the possibility of adding future flagship pipeline assets
Structure DXBE for success
Position DXBE as the leading regional operator of leisure and entertainment assets
02- Drive footfall from resident market
01Drive footfall and visitation by targeting the resident market
Resident market will be the key driver of admissions and visitation in Q42017 and FY2018 generating ~65% of all visits
02Develop and implement strategy for targeting the GCC and the wider MENA region, define GCC as a core residential marketFocus on driving repeat visitation from the Saudi market as well as activating the Saudi tour and travel market
03Simplify and maintain consistent pricing to create clear consumer messaging and avoid confusion
DXBE will introduce a simplified pricing mechanism focused on driving the residential market, encouraging multiple visitations and driving footfall. Discounting to be kept to a minimum, only limited tactical promotions to be conducted
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* MOTIONGATE Dubai preview price is AED 250, valid until early Q2 2017. Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Sources: Company information, company websites, Dubai Parks and Resorts 2014 Feasibility Study , CBRE, TEA / AECOM reports
02- Ticket prices to be revised
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Theme park ticket pricing to be simplified and focused on driving repeat visitation from the resident market
IMG World of Adventure 66 245Ferrari World 75 275Wild Wadi 75 275Yas Waterworld 68 250Aquaventure 70 260Ski Dubai 91 335At the Top – Burj Khalifa 55 - 136 200 - 500
Magic Kingdom 115 422Disneyland Tokyo 65 238Disneyland Anaheim 110 404Epcot 107 392Disneyland Paris 80 291
Universal Studios Singapore 76 199
LEGOLAND Malaysia 34 128
Park / attraction Adult ticket price ($) Adult ticket price (AED)
MOTIONGATETM Dubai 80 295*Bollywood ParksTM Dubai 65 240LEGOLAND® Dubai 80 295LEGOLAND® Water Park 65 240
Regional
Current pricing structure (under revision)
International
Total visitors Jan-May 2017
7.26mUp 10.16% YOY
Jan-May 2017 2016 % changeIndia 944 776 23%Saudi Arabia 670 721 -7%UK 574 550 4%China 366 232 58%Oman 364 528 -31%Pakistan 278 247 12%USA 277 261 6%Iran 257 198 30%Germany 248 241 3%Russia 221 110 101%Total 4,199 3,864 10.16%
03-Tourism growth trends
17Source: Department of Tourism and Commerce Marketing (DTCM)
7% – Russia, CIS, EE (Eastern Europe)
21% – Western Europe11% – North Asia and
South-East Asia
18% – South Asia19% – GCC
12% – MENA
4% –Africa
2% –Australasia
6% –Americas
Source of visitors by region (% in Jan-May 2017)
Visitors from top 10 source marketsJan-May 2017 (’000 visitors)
03- Activate core markets through B2B channels
In H12017 only 15% of visits were driven through tour and travel operators. Currently almost 70% of visitation is from the resident population.
Trade in process of activation in key source markets with the full impact expected towards the second half of 2018.
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RussiaRep Office9 Tour operators
Germany/SwissRep Office8 Tour operators
IndiaRep Office9 Tour operators
ChinaRep Office9 Tour operators2 OTAs
United KingdomRep Office2 ticket brokers10 tour operators
Source market representation
UAE82 DMCsAfrica
8 tour operators
04 - Create consistent brand message
Promote individual destinations to specific core target markets tailoring the messaging accordingly
Focus on brand building to increase consumer awareness and recognition
Focus on “showing experiences” as opposed to “telling”, immersive using experiential marketing
Social media, radio, outdoor, point-of-sale, cinema and in-store will be the key media, supplemented by television where affordable and where reach can be justified
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Formulate a consistent brand message, identify core target market for each park and ensure messaging is appropriately tailored for each experience
2017 expectations
Alignment of organizational and management structure to leverage core strengths and realisesynergies
Goal to identify further savings through organizational synergies
Management of Meraas leisure assets will create shareholder value and increase sales touch points
New family entertainment center division will realise cross-promotion, sales and marketing synergies across all key vertical assets
Sales and Marketing focused on Q4 2017 with key drivers from resident and GCC visitors
Formulate a consistent brand message, identify core target market for each park and ensure messaging is appropriately tailored for each experience
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Q2 2017 Performance
Total RevenueAED 119.6 million
Key Q2 2017 performance highlights
22Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 30 June 2017 figures are unaudited.
Theme Park RevenueAED 86.5 million
Visits414,454
Revenue per cap AED 209(theme parks)
Total assetsAED 12.5 billion
Drawn downAED 4.2 billionof AED 4.2b Phase 1 facility
1 April 2017 – 30 June 2017
YTD total revenue
AED 279m
YTD total visits
1,000,817
Q2 Revenue per capita
AED 209Theme parks
Q2 GLA leased
84%Q2 Average occupancy
27%
Revenue breakdown (1 April – 30 June 2017)
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Totalrevenue
AED 119.6m
Theme parkRetail HospitalityOthers
72%7%
10%
11%
Theme parkrevenue
AED 86.5m
AdmissionsIn-park spend Others
63%
32%5%
Retail revenue
AED 8m
LeasingNon-leasing
51%
49%
Q2 Visits
414,454Q2 Average daily rate
AED 590
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 3O June 2017 figures are unaudited. The Group currently determines and presents financial information as a single operating segment based on the information that is provided internally to corporate management for decision making.
Hospitality revenue
AED 11.4m
AccommodationOthers
64%
36%
YTD average hotel occupancy
24%
Visits breakdown
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Key visitation factors:
Holy month of Ramadan: 26 May – 24 JuneAED 95 all parks between 8pm-12am during Ramadan.
Summer pricing offer:AED 195 per park inclusive of all you can eat offerAED 265 two parks inclusive of all you can eat offer
Total Visits
414,454Visits breakdown (bycategory)
Walk-in 38%Online & call center 31%Tour operator 14%Others 17%
April-June 2017
Note: Others include Schools, Corporates, Annual passes, VIPs and Complimentary passes
Revenue
AED279m
Summary financial results
25Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 30 June 2017 figures are unaudited.
Q1 2017 Q2 2017 YTD 2017AED millions
Revenue 160 120 279Cost of sales (13) (20) (34)Gross profit 147 99 246
General, administrative and operating expenses (334) (284) (618)Marketing and selling expenses (41) (38) (78)Interest (expense) / income (43) (52) (95)Other expenses (21) (11) (32)Loss for the period (292) (286) (578)Other comprehensive lossCash flow hedge – gain / (loss) on fair value 4 (22) (18)Total comprehensive loss for the period (287) (308) (596)
Operating EBITDA
AED(247)m
Operating EBITDA (adjusted)
AED(186)mExcluding AED 61 million in pre-operating expenses
General, administrative and operating expenses
Salaries and other employee benefits 32%
Depreciation 38%Utility 9%Supplies, communication and IT 6%Repairs and maintenance 4%Rent 4%Others 7%
For the six month period ended 30 June 2017
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Contact UsInvestor Relations Contacts
Marwa GoudaHead of Investor Relations
Abdulrahman Al-SuwaidiInvestor Relations Officer
www.dxbentertainments.com/investor-relations
DXB Entertainments PJSC
Sheikh Zayed Road, opposite the Palm Jebel Ali, Exit 5, Saih Shuaib
Tel: +971 4 8200 820Fax: +971 4 8200 819
www.dxbentertainments.com
DXB Entertainments IR App
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Our new Investor Relations App is available for download on the iTunes App store and the Google Play store!
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Appendix IManagement and Board
Senior management
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Mohamed AlmullaChief Executive Officer
• Appointed CEO of DXB Entertainments in June 2017. • Brings extensive experience from a wide range of media and entertainment business segments, including radio
& TV broadcasting, printing & publishing, digital media, out of home advertising, event management, parks & attractions.
• Previously CEO at the Arab Media Group where he oversaw all operational aspects of the group’s three major business units: Arabian Radio Network, Done Events and Global Village.
• Held several leadership positions within the TECOM Group, including Executive Director of Dubai Media City.
John IrelandChief Financial Officer
• Appointed CFO of DXB Entertainments in June 2017. • Experience across a wide range of media, including broadcast, digital, out-of-home, print, event management
and recorded music.• Previously CFO at the Arab Media Group (AMG). In his role, he oversees the financial, strategic and legal
aspects of the group’s operations, including the Arabian Radio Network, Global Village and Done Events.• John joined AMG from 21st Century Fox, where he held a number of senior finance positions across the
Group’s operations in Europe, Asia and the Middle East, including regional experience as CFO of Rotana Media Group.
• He has a BA in business and management from the University of Exeter, UK and is a qualified chartered accountant, having previously worked for Deloitte in the telecommunications, media and technology sector.
Ahmad HussainGM of Theme Parks
• Joined DXB Entertainments in August 2017. • A seasoned professional within the regional theme park industry with extensive experience in operations,
facilities management and engineering.• Previously held positions at Global Village, the regions premier cultural and family entertainment destination,
as COO and CEO, where he was responsible for the successful operations and expansion of the business.• Ahmad is a board member at the International Association of Amusement Parks and Attractions (IAAPA).• Previously held positions at Emirates Integrated Telecommunications Company (du), the Facilities
Management Department of the Engineer’s Office of HH Mohammed Bin Rashid Al Maktoum, ADNOC and as a marine engineer with BP, North Sea.
• Ahmad graduated with a BA in Mechanical Engineering from Northumbria University, UK and earned his MSc in Engineering Management from Sunderland University, UK.
Ahmed AlRayyesGM of Retail and Hospitality
• Ahmed AlRayyes joined DXB Entertainments in July 2017. • He is a seasoned professional with a long track-record of successfully implementing Commercial Partnerships,
Contacts Management, Supply Chain and Strategic Planning in the entertainment, telecom, broadcasting and media sectors.
• Prior to joining DXB Entertainments, AlRayyes was COO at Global Village, the regions premier cultural and family entertainment destination, where he played an essential role in growing the business.
• Previously, AlRayyes headed the Commercial Sourcing & Procurement department at du - Emirates Integrated Telecommunications Company.
• Earlier Ahmed worked in the engineering and broadcasting division for Dubai Media Incorporated, the official media organization of the Government of Dubai.
• Ahmed AlRayyes holds a BA in Electrical & Computer Engineering.
Hani SoubraVP of Marketing
• Joined DXB Entertainments in August 2017. • Has over 24 years of communication and media experience with expertise in brand positioning, consumer
marketing and digital and creative media.• Previously spent 13 years at BCC World most recently as the Regional Director MENA & Pakistan. His role
included positioning the different BBC functions, product and content creation, developing corporate partnerships as well as creative and digital media.
• A published author and a University Lecturer on media at the Middlesex University, Dubai Campus.• Hani earned his MBA from the University of Strahtclyde and his BA in Economics from the American University
of Beirut.
Marwa Gouda, CAIA, CIROHead of Investor Relations
• Over 15 years experience in investor relations and financial marketing. She previously held the position of Head of Investor Relations at I2BF Global Ventures, a boutique investment management firm.
• In 2003 she joined Man Group in Switzerland and during her six year tenure held different positions in investment marketing and client services in London, Zurich and Dubai. Her last position was as Marketing and Client Service Manager at Man Environmental Capital Opportunities, Man’s private equity environmental finance arm.
• She is a Certified Alternative Investment Analyst and holds a BA in Political Science and a BA in Economics from the American University in Cairo
Senior management
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Name Nationality Independent Audit Committee
Nomination and Remuneration
CommitteeAbdulla Al Habbai UAERaed Kajoor Al Nuaimi UAEAbdul Wahab Al-Halabi UAE
Edris Alrafi UAECristian Viorel Gheorghe RomanianFahad Kazim UAE
Dennis C. Gilbert USA (Chairman)Steven D. Shaiken USA (Chairman)
Board of Directors and board committees
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UAE National
Other Nationalities
Non-Executive
Executive
Independent
Board of Directors by nationality
Board of Directors by type
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- 5- 1- 3
Abdulla Al HabbaiChairman, Non-executive Director
• Group Chairman of Meraas Holding and Chairman of Dubai Holdings.• Mr. Al Habbai is also Chief Executive Officer of the Engineering Office since 2005 and the Chairman of Dubai Hills, Dubai Valiant
Healthcare and Deputy Chairman of Rove Hospitality.• Serves on the Boards of Dubai Real Estate Corporation and Museum of the Future amongst others.• Holds a Master’s Degree in Cadastral & Land Information Management from the University of East London
Abdul Wahab Al-HalabiNon-executive Director
• Abdul Wahab Al-Halabi is the Group Chief Investment Officer of Equitativa, a diversified financial services group specialising in thedevelopment of REITs in emerging markets.
• He was previously the Group Chief Investment Officer of Meraas Holding group. Mr. Al-Halabi has more than 18 years’ experience in thereal estate sector, with expertise in financial restructuring, crisis and debt management, credit enhancements and joint ventures.
• Previously held positions include partner at KPMG, Chief Executive Officer of Dubai Properties Group• Holds a bachelor’s degree in Economics from the London School of Economics and an Executive MBA from Ecole Nationale des Ponts et
Chaussées
Raed Kajoor Al NuaimiNon-executive Director
• Raed Kajoor Al Nuaimi is the former Chief Executive Officer of DXB Entertainments PJSC• Previously, he was the Chief Leisure and Entertainment Officer at Meraas Holding• Has held senior management roles over a 15-year period with companies such as Tatweer, Dubailand and Dubai Properties Group• Holds a bachelor’s degree in Business Administration from Ashford University, UK, and is a member of the Chartered Institute of
Personnel and Development
Edris AlrafiNon-executive Director
• Mr Alrafi is the CEO of Dubai Holdings and CCO at Meraas Holding. He brings more than 13 years of experience in investment banking,finance and private equity.
• Prior to Meraas, he served as Head of Middle East Business at the private equity firm Developing Markets Capital (DMC) Partners• Mr Alrafi also served as Head of UAE client coverage at Goldman Sachs for the UAE. Prior to Goldman Sachs, he served as General
Manager at First Gulf Bank in the Securities Division and worked closely with the CEO and Managing Director of the Bank.• He is currently Vice Chairman at Noor Bank and Nshma Properties and the Chief Executive Officer at Dubai Holding. He holds a finance
degree from the Higher College of Technology in the UAE.
Cristian Viorel Gheorghe Non-executive Director
• Mr Gheorghe is the former Chief Financial and Investment Officer at Meraas LLC. Bringing with him over 18 years of banking experienceworking globally across several industries.
• Prior to joining Meraas, Cristian served as Investment Strategist at Citi Private Bank in Geneva where he led the buy side advisory to ahigh profile, multibillion-dollar franchise relationship of the bank in Saudi Arabia. He is a board member at Yvolve LLC, MD Health andWellness LLC and Marsa Al Seef LLC and others.
• Along with a CFA designation, Cristian holds an MBA degree from Rotman School of Management, University of Toronto and aBachelor’s degree in Economics from the Academy of Economic Studies in Bucharest.
Fahad KazimIndependent Non-executive Director
• He is an Independent Advisor to the to the Group Chairman at Meraas• Previously the Chief Commercial Officer at Meraas Holding where he was responsible for the business development and asset
management functions including its retail interests together with its recently launched Food & Beverage division• Has previously worked at PwC in the audit and transaction services divisions• Serves on several boards, the Oversight Board at Emirates REIT and Arthrogen BV.• Holds a bachelor’s degree in Accounting from Concordia University, Canada, and is a qualified Certified Public Accountant
Denis C. GilbertIndependent Non-executive Director
• More than 45 years of experience in the theme park and attraction business• Has held various senior management positions at Sea World of Ohio, Resorts World Sentosa (Singapore), Stone Mountain Park (Atlanta),
Ocean Embassy and three Anheuser Busch Adventure Parks• Chairman of the Board and majority stockholder for Gilberts of Atlanta, a restaurant company operating as a ‘‘Wendy’s’’ franchisee
Steven D. ShaikenIndependent Non-executive Director
• Provides consulting services to major companies in the travel and leisure industry including Disney, Universal, Aramark etc.• More than 40 years of experience in the destination branded entertainment arena• Previously, Executive Managing Director at Adventure World (Warsaw)• Has previously worked with industry majors such as the Royal Caribbean International, Seaworld Parks & Entertainment, Disney Cruise
Lines, Starwood and Hilton hotel chains, among others
Board of directors continued
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Appendix IISummary Financials for the period ended 30 June 2017
Summary financials
34Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 30 June 2017 figures are unaudited.
30 Jun 17 31 Dec 16
Unaudited(AED m)
Audited(AED m)
ASSETS
Property and equipment 9,451 9,465
Investment properties 623 634
Investment in a Joint Venture 18 -
Inventories 50 42
Due from a related parties 25 21
Trade and other receivable 155 90
Derivative financial instruments 19 37
Other financial assets 618 990
Cash and bank balances 1,502 1,535
Total assets 12,461 12,814
EQUITY AND LIABILITIES
EQUITY
Share capital 8,000 8,000
Cash flow hedge reserve 19 37
Accumulated losses (1,217) (639)
Total equity 6,802 7,398
LIABILITIES
Bank facilities 4,003 3,204
Trade and other payables 1,656 2,212
Total liabilities 5,659 5,416
Total equity and liabilities 12,461 12,814
As at 30 June 2017
Six months period ended 30 June
AED million 2017 2016
Unaudited Unaudited
Revenue 279 -
Cost of Sales (34) -
Gross profit 245 -
General,administration and operating expenses (618) (89)
Marketing and selling expenses (78) (22)
Interest (expense) / income (95) 31
Other expenses (32) -
Loss for the period (578) (80)
Cash flow hedge – loss on fair value (18) (55)
Total comprehensive loss for the period (596) (135)
Condensed consolidated statement of profit or loss and other comprehensive incomeFor the six month period ended 30 June 2017
Condensed consolidated statement of financial position
AED million Period ended 30 June2017 2016
Unaudited Unaudited Cash flows from operating activitiesLoss for the period (578) (80)Adjustments for:Depreciation of property and equipment and investment properties 236 4 Interest (income) / expense 82 (36)Amortization of borrowing cost 13 5 Provision for employees’ end of service indemnity 2 2
Operating cash flows before changes in working capital (245) (105)Increase in trade and other receivables (57) (57)Increase in inventories (8) -(Decrease) / Increase in trade and other payables (554) 199 Increase in due from related parties (3) (13)Cash (used in) / generated by operations (867) 24 Employees' end-of-service indemnity paid (2) -Net cash (used in) / generated by operating activities (869) 24 Cash flows from investing activitiesDecrease / (increase) in other financial assets and short term deposits 371 (532)Additions to property and equipment (209) (2,086)Additions to investment properties - (104)Interest received 20 36 Investment in joint venture (18) -Net cash generated by / (used in) investing activities 164 (2,686)Cash flows from financing activitiesProceeds from additional shares issued - 1,678 Share issue costs - (9) Proceeds from bank facilities 795 1,232 Payments for finance cost (108) (74)Payments for finance lease (15) -Increase in restricted cash - (14)Net cash generated by financing activities 672 2,813 Net (decrease) / increase in cash and cash equivalents (33) 151 Cash and cash equivalents at the beginning of the period 1,344 364 Cash and cash equivalents at the end of the period 1,311 515
Condensed consolidated statement of cash flows
35Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 30 June 2017 figures are unaudited.
For the six month period ended 30 June 2017
36
Appendix IIIDPR Phase I and Phase II projections based on 2014 IPO
prospectus and 2016 Rights Issue documents
Projections DPR Phase I and Phase II
Projections
The projections covered in this section are based on the 2014 IPO prospectus and the 2016 Rights Issue documents and have not been revised since.
Management has indicated that revised guidance will be given post Q3 2017 results and that it is seeking a 20% operational cost reduction in 2017 compared to the original projections.
37
Pro
ject
fun
din
g (
AE
Dm
)P
hase
I
Phase IEquity Funding Debt Financing
6,322
4,21410,536
Pro
ject
fun
din
g (
AE
Dm
)P
hase
II
Phase IIEquity Funding
Debt Financing
1,678
9932,671
Debt facility secured from Abu Dhabi Commercial Bank, Dubai Islamic Bank and Sharjah Islamic Bank.
Projected theme park visits and market penetration
38
14.1 15.5 16.8 18.0 19.2 21.0 23.1 27.3
31.7 30.1 2.3 2.2 2.4 2.6 2.8 3.0 3.3
3.9 4.5
4.3
7.0 7.2 7.5 7.8 8.1 8.4
8.7 8.9
9.2 9.4
2013 2014 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F
UAE Resident Population Income and Drive Qualified
UAE International Tourists (VFR)
UAE International Tourists (Hotel Guests)
23.4 25.026.6
28.4 30.132.5
35.240.2
45.4 43.8
0.8 0.9 1.0 2.2 2.3 3.2 4.3 4.5 4.71.5
6.16.6
7.8
11.212.8
2013 2014 2015F 2016F 2017F 2018F 2019F 2020F 2021F
Other UAE theme park visits DPR theme park visits
Source: Dubai Parks and Resorts 2014 Feasibility Study. Other UAE theme parks is based on announced and existing theme parks and assuming a steady annual growth rate in visitation numbers.Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figuresNotes: 1 - Market penetration is calculated as total theme park visits / addressable market. The addressable market for the UAE is adjusted for certain factors such as income, location etc. as per the Dubai Parks and Resorts 2014 Feasibility Study .2 - 2016F DPR visits only include visits from expected commencement of operations as per analysis in the Dubai Parks and Resorts 2014 Feasibility Study . DPR theme park visits includes Six Flags Dubai starting 2019.
• Total UAE theme park addressable market consists of
– Hotel tourists– UAE residents– Visiting friends and relatives (“VFR”)
• UAE theme park demand estimated based on penetration rates of comparable markets
• Large variation in penetration rates based on maturity of theme park offering
• Dubai Parks and Resorts will serve the majority of the pent up theme park demand (number of visits does not include visits to the Bollywood Parks’ Rajmahal theatre and to the LEGOLAND® Water Park)
• DPR offering appeals to multiple customer segments
• World class IPs and differentiated offering
Total market penetration potential 37% 44%
Actual penetration (assumed in business plan)
38%
90% 42% 37% 24% 18%
Orlando Denmark Japan Hong Kong Singapore
0.8 0.9 1.0
3.7
8.4
9.8
12.1
15.7
7.68.1
9.1
11.212.6
14.2
16.9
19.8
Theme Park Visits Potential
Penetration rate
No of parks 7 2 5 2 1
17.4
10.1
E
28%
UAE theme park addressable market (millions of potential visitors)
Theme park visits and market penetration1
(2013-2022F visits in millions)
E
Financial projections summary – DPR Phase I
39
1546 1740 1957
492550
616
2017F 2018F 2019F
Tickets In-park spend
2038 2289 2573
220251
278
5462
63
135153
172
2017F 2018F 2019FTheme parks Lapita Hotel Riverland Dubai Other
6.7 7.2 7.9 9.1 10.3
2017F 2018F 2019F 2020F 2021F
Revenue by entity (AED million)
Theme park revenue is 83.4%
Total visits per year (million)
2,4472,755
3,086
76% of theme park revenue generated from tickets
Theme park revenue by category (million)
2,0382,289
2,573
2017 2018 2019 CAGR
Visits 6.7 7.2 7.9 11.3%
Growth 7.5% 9.7%
Revenue 2,447 2,755 3,086 12.3%
Growth 12.6% 12.0%
EBITDA 605 726 845
Margin 24.7% 26.3% 27.4%
Net Income (36) 108 249
Source: Dubai Parks and Resorts 2014 Feasibility Study. Note: All the above charts capture full-year performance commencing 2017F. In-park spend includes park sponsorship revenue.Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Financial performance (AED million)
Revenue per capitaAED 304 AED 318 AED 324
Financial projections summary – DPR Phase II
40
145
696814 818
42
197229 230
2019F 2020F 2021F 2022F
Tickets In-park spend
0.6
2.93.3 3.2
2019F 2020F 2021F 2022F
Construction cost1,457
Infrastructure cost473
Land cost390
Financing, corporate and others cost286
Business development and issue expenses 1
65
1 Business Development budget to be utilized for master-planning of future phases, hospitality offering expansion, development of strategic partnerships / JV, evaluation of new concepts / ideas, etc.In-park spend includes park sponsorship revenue. Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Revenue per capitaAED 312 AED 308 AED 316 AED 327
Total visits per year for Six Flags Dubai (million) Six Flags Dubai revenue by category (million)
Uses of funds (AED 2,671 million)
2020F 2021F 2022F CAGR
Visits 2.9 3.3 3.2 5.1%Growth 13.4% -2.6%
Revenue 893 1,043 1,048 8.3%Growth 16.8% 0.5%
EBITDA 296 371 365Margin 33.2% 35.6% 34.8%
Net Income 134 209 204
Financial performance (AED million)
187
8931,043 1,048
78% of theme park revenue generated from tickets
Summary projected financials – DPR Phase I
41
Sources: Company information, Dubai Parks and Resorts 2014 Feasibility Study.Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figuresNotes: 1- Income statement and cash flow statement shown above are for the periods indicated. Balance sheet relates to the financial position at the end of the corresponding periods. 2- The financial year ending for the Company is December.
2015F 2016F 2017F 2018F 2019FIncome statementRevenue - 563 2,447 2,755 3,086 Gross profit - 188 868 1,014 1,160 EBITDA (360) (402) 605 726 845 Operating profit before taxes and interest (360) (495) 234 351 465 Net income (326) (559) (36) 108 249
Balance sheetAssetsTotal non-current assets 4,921 9,223 8,881 8,584 8,300 Total current assets 4,138 575 719 728 865
o/w Cash 3,786 487 622 620 742 Total assets 9,059 9,798 9,600 9,312 9,165
LiabilitiesTotal current liabilities 687 466 91 104 119 Total non-current liabilities 2,496 4,016 4,229 3,819 3,408
o/w Loans 2,496 4,013 4,215 3,793 3,372 Total liabilities 3,183 4,482 4,320 3,923 3,527 Total equity 5,875 5,316 5,280 5,389 5,638 Total equity and liabilities 9,059 9,798 9,600 9,312 9,165
Cash flow statementCash flow from operating activities (152) (424) 221 726 843 Cash flow from investing activities (2,793) (4,169) (18) (65) (83)Cash flow from financing activities 2,199 1,294 (73) (671) (645)
Forecasts as of the offering memorandum issued in November 2014AED million
42
Appendix IVAbout Dubai Parks and Resorts
DXB Entertainments owns Dubai Parks and Resorts, a premier year-round integrated theme park destination, which opened to the public in 2016
World class partners and brands including LEGOLAND® Parks, DreamWorks Animation LLC, Colombia Pictures, Lionsgate, Six Flags and popular Bollywood movies
About Dubai Parks and Resorts
43
Phase 2
Phase 2
* Phase II expansion, Six Flags Dubai opening in 2019 and LEGOLAND Hotel after 2018. LEGO, the LEGO ® logo and LEGOLAND ® are trademarks of the LEGO Group. ©2015 The LEGO Group. LEGOLAND IS A PART OF MERLIN ENTERTAINMENTS plc.
43
DPR location
44
• 20 km from Al Maktoum International Airport
• 63 km for Dubai International Airport
• 68 km from Abu Dhabi International Airport
Strategically located on Sheikh ZayedRoad mid way between Dubai and Abu Dhabi International Airports
Set across 30.6 million square feet of land of which 25.1 million square feet is for Phase I and 5.5 million square feet for Phase II of DPR
c. 19.5 million square feet is owned by us, and
c. 11.1 million square feet of additional land, for which we have all necessary easement rights, will principally be used for access roads and parking
Mitigating the potential impact of seasonality
45
Addressing the concerns around heat levels in Dubai during the summer months
Sources: Dubai Meteorological Office, National Environment Agency Singapore, Météo-France, Danish Meteorological Institute, World Weather Online
Weather can be of concern for theme park attendance
Mitigating the DPR heat concern
Integrated strategy for dealing with the heat
State-of-the-art integrated cooling
systems
Indoor and air conditioned queuing for rides; any
additional outdoor queuing has fans
Landscape and architecture includes
significant shading
Adjustment of operating hours during summer
months to address peak day temperatures
% attractions indoor and air conditioned
• Overall, weather is a key factor that impacts theme park attendance
• Rain, snow and high temperatures impact attendance figures and ability to operate – theme parks located in countries that experience high levels of precipitation (Denmark, France, etc.) or humidity (Singapore, etc.) experience a negative impact on attendance
• Temperature is a potential concern for Dubai Parks and Resorts - Dubai is hotter than other theme park destinations during the summer months - however, precipitation levels are by far the lowest when compared to other international markets with significant theme park offerings
– Dubai has an average monthly precipitation level of 8 mm versus 108 mm, 53 mm and 195 mm for Florida, Paris and Singapore respectively
78% 43% 69%
The DPR master plan has been designed to strategically address heat concerns