dxb entertainments pjsc

DXB Entertainments PJSCQ1 2017 Earnings Release Presentation10 May | 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.

This presentation has been prepared and issued by DXB Entertainments PJSC (the “Company”). For the purposes of this notice, “presentation” means this document, its contents or any part of it, any oral presentation, any question or answer session and any written or oral material discussed or distributed during the presentation meeting.

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. ©2016 The LEGO Group. LEGOLAND IS A PART OF MERLIN ENTERTAINMENTS plc.

2

Contents

3

Highlights of Q1 2017

Financial Results

Corporate and Operational Update

Financial Summary


Financial Results


Conclusion

4


Total RevenueAED 159.9 million

Key Q1 2017 performance highlights

5Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 March 2017 figures are unaudited.

Theme Park RevenueAED 125.4 million

Visits586,355

Revenue per capAED 213.9(theme parks)

Total assetsAED 12.5 billion

Drawn downAED 3.8 billionFrom AED 4.2 billion facility

1 January 2017 – 31 March 2017

Total visitors Jan-Mar 2017

4.57mUp 11.2% YOY

Q1 2017 Q1 2016 % changeIndia 578 469 23%Saudi Arabia 440 476 -8%UK 350 334 5%China 230 140 64%Oman 214 322 -33%Iran 181 130 39%Pakistan 178 152 17%USA 176 166 6%Germany 172 171 0%Kuwait 131 119 10%Total 2,650 2,479 6.9%Russia 126 61 106%

Tourism growth trends

6Source: Department of Tourism and Commerce Marketing(DTCM)

7% – Russia, CIS, EE (Eastern Europe)

22% – Western Europe11% – North Asiaand

South-East Asia

18% – South Asia19% –GCC

12% – MENA

4% –Africa

1% – Australasia

6% –Americas

Source of visitors by region (% in Jan-Mar 2017)

Visitors from top 10 source marketsJan-Mar 2017 (’000 visitors)

7

Q1 2017 Financial Results

Average occupancy

21%Revenue per capita

AED 213.9Theme parks

Revenue breakdown

8

Totalrevenue

AED159.9m

ThemeparkRetail HospitalityOthers

78%

9%

7%

6%

Theme parkrevenue

AED125.4m

AdmissionsIn-park spend Others

68%

24%

8%

Retail revenue

AED14.4m

LeasingNon-leasing

76%

24%

Visits

586,355GLA leased

84%Average daily rate

AED 795

Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 March 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

AED10.4m

AccommodationOthers

70%

30%

Loss for the period

AED228mExcluding the pre-operating expenses and interest income from Six Flags Dubai

Operating Expenses

AED214mExcluding the pre-operating expenses and interest income from Six Flags Dubai

Summary financial results

9

Financial PerformanceAED millions

Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 March 2017 figures are unaudited.


Q1 2017 Q1 2017 Adjusted*

Revenue 160 160Cost of Sales (13) (13)Gross Margin 147 147Operating Expenses (285) (214)Depreciation (111) (111)Interest / Financing Costs (Net) (43) (50)Loss for the period (292) (228)CF hedging gain (loss) on FV 4 4Total Comprehensive loss for the period (288) (224)

* Adjusted Q1 2017 performance excludes pre-operating expenses of AED 71 million from operating expenses and AED 7 million of interest income from Six Flags Dubai from Interest/Financing Costs

Excluding pre-operating expenses and interest income from Six Flags Dubai

Summary financial results

10

Totalassets

AED12,541mProperty andequipment 75.14%Investment properties 5.01%Investment in a Joint Venture 0.14%Inventories 0.38%Due from a related party 0.18%Trade and other receivables 1.15%Derivative financial instruments 0.33%Other financialassets 3.34%Cash and bankbalances 14.34%

Dec 2016: AED 12,814 million

For the three months ended 31 March2017

Movement in CashAED millions

OperatingInvesting- other financial assetsInvesting- property and equipment and investment propertiesInvesting - othersFinancing



Financing

AED3.8bnAED 3.8 billion drawn down from our AED 4.2 billion financingfacility for Phase I of DPR

(529)

571

(64)(10)

295

(600)

(400)

(200)

-

200

400

600

800

11


Total Visits

586,355

Sales and Marketing

12

Visits breakdown (bycategory)

Walk-in 33%Online 24%Tour operator 14%Others 29%

Key visitation factors:

Key School holidays during the period positively impact attendance• Saudi school holidays• Kuwaiti school holidays• UAE school holidays

Rainy weather during the period negatively impacts attendance

Jan-Mar 2017

Note: Others include Schools, Corporates, Annual passes, VIPs and Complimentary passes

Visits breakdown

Sales and Marketing

13

Secured pre arrival awareness and conversion with Coop Campaign in GCC, UK, Germany and India

• Reselling via 102 active DMC’s operating over 20 markets

• Direct distribution set up in Africa, GCC and China with 30 active tour operators

• Hosted 9 FAM trips for a total of 780 attendees from 12 markets

• Hosted 39 resort experiences for a total of 524 attendees from 12 markets

Focused effort on post arrival sales• 120 active hotels tour desk• 17 preferred partner hotel contracted

packaging DPR on pre arrival • Shuttle operation from partner hotels

live• Hosted VIP guided tours for over 300

concierge

Launched segmented consumer approach • Launched resident rate on March 1st

• Focus international market on multi park and multi day with early booking rates

Activated alternative segment • Hosted 49 MICE events in the parks • Over 100 schools welcome in Q1 for

educational experiences

Key marketing activations in the UK, Germany, India and Switzerland.

• Focus on coming summer holiday in India and a GCC Summer Campaign

New SVP of Sales and Marketing

David Loiseau, joins as Senior Vice President of Sales and Marketing. David has over three decades of sales and marketing experience, and most recently held the position of Vice President Sales with Kerzner International , Atlantis the Palm.

Sales and Marketing

14

Theme Park Operations

15

Operating during summer and Ramadan

Effective 21 May 2017

Attractive summer packages announced AED 195, one park + unlimited food AED 295, two parks + unlimited food

Summer operating hours with later start MOTIONGATE™ Dubai 2pm-10pm Bollywood Parks™ Dubai 4pm-12am LEGOLAND® Dubai 12pm- 8pm LEGOLAND® Water Park 10am–7pm

Tram transportation available between the parks and through Riverland™ Dubai

MOTIONGATE STOP

FRENCH VILLAGE / BUS-TAXI STOP

BOLLYWOOD STOP

LEGOLAND STOP

RT2 - VIP CAR PARK STOP

RT1 - BOARDWALK STOP

RT3 - FRENCH VILLIAGE STOP

R I V E R L A N D - T R A M R O U T E

RT1 - VIP CAR PARK STOP

Summer Operational Strategy

Air-conditioned trams will transport guests through Riverland™ Dubai

Over 150 misting fans will be placed strategically throughout Riverland™ Dubai.

16

Attraction delivery

17

All attractions delivered as at 10th May 2017 except Phase II of MOTIONGATE™ Dubai (The Hunger Games)

January: Madagascar Mad Pursuit – DreamWorks zone in MOTIONGATE™ Dubai

February: Submarine Adventure – LEGOLAND® Dubai Cloudy with a Chance of Meatballs River Expedition – Colombia Pictures zone in

MOTIONGATE™ Dubai

March: Kung Fu Panda: Unstoppable Awesomeness – DreamWorks zone in MOTIONGATE™ Dubai

April: 3 rides within the How to Train Your Dragons area - DreamWorks zone in MOTIONGATE™

Dubai Shrek’s Merry Fairy Tale Journey - DreamWorks zone in MOTIONGATE™ Dubai Don the Chase – Bollywood Parks™ Dubai

Remaining attractions to be delivered• Panem Aerial Tour – Lionsgate zone at MOTIONGATE™ Dubai – target June• Capitol Bullet Train – Lionsgate zone at MOTIONGATE™ Dubai – target June

Human Resources

18

Employee breakdown

Theme parks 70%

Retail andhospitality 18%Shared services and corporate 12%

68%Male

32%Female

2,995As at 31 March 2017

Close to 3,000 multi-cultural employees from 86 nationalities.

Phase II updateSix Flags DubaiOn track to open in late 2019

Procurement:• 7 ride agreement are signed. Agreement Signing of 10 rides

are in final stage, remaining 4 rides are under negotiationwith Ride Vendors.

Design Development:• 90% DD progressing for multiple packages.

Construction:• Enabling works and access roads completed• Nitro splash pond, laydown area & retention basin

substantially completed. BOH Car Park, & BOH buildingssubstructure works commenced.

LEGOLAND Hotel

Project Management• Contracts for lead consultants finalized.

Design & Site Progress• Detailed Design stage for Facility works completed and

currently VE exercise in progress.• Detailed Design stage for Infrastructure works completed

and for Area Development being developed.• Grading works completed and Erection of Hoarding in

progress.

19

20

Conclusion

Key challenges ahead

21

Operating during summer and Ramadan

Q2 and Q3 are expected to be lower performing quarters due to Ramadan and the summer months

Effective 21 May 2017 new operating hours, improved transportation service and attractive packages will be implemented to continue attracting visitors during the summer

Increasing attendance numbers from tour and travel

Key focus for the sales strategy is increasing the contribution of the tour and travel to the visitation numbers to ensure targets are met

Ramp-up in contribution from 5% in Q4 2016 to 14% in Q1 2017 shows promising signs of growth

Conclusion

Inbound tourism figures remain strong

Increase in contribution from tour and travel shows promising trend

Ramp-up in operations across the theme parks and Lapita on track

Summer strategy in place

On track for a 20% operational cost reduction

22

23

Contact UsInvestor Relations Contacts

Marwa GoudaHead of Investor Relations

Abdulrahman Al-SuwaidiInvestor Relations Officer

[email protected]

www.dxbentertainments.com/investor-relations

DXB Entertainments PJSC

Emaar Square, Building 1, Level 2PO Box 123311, DubaiUnited Arab Emirates

Tel: +971 4 8200 820Fax: +971 4 8200 819

[email protected]

www.dxbentertainments.com

mailto:[email protected]

http://www.dxbentertainments.com/investor-relations

mailto:[email protected]

http://www.dxbentertainments.com/

DXB Entertainments IR App

24

Our new Investor Relations App is available for download on the iTunes App store and the Google Play store!

https://itunes.apple.com/app/id1080290703

https://play.google.com/store/apps/details?id=com.euroland.mobiletools.ae_dubaipa

25

Appendix ISummary Financials for the year ended 31 March 2017

Condensed consolidated statement of financial position


31 Mar 17 31 Dec 16

Reviewed(AED m)

Audited(AED m)

ASSETS

Property and equipment 9,423 9,465

Investment properties 628 634

Investment in a Joint Venture 18 -

Inventories 48 42

Due from a related parties 22 21

Trade and other receivable 144 90

Derivative financial instruments 41 37

Other financial assets 419 990

Cash and bank balances 1,798 1,535

Total assets 12,541 12,814

EQUITY AND LIABILITIES

EQUITY

Share capital 8,000 8,000

Cash flow hedge reserve 41 37

Accumulated losses (930) (639)

Total equity 7,111 7,398

LIABILITIES

Bank facilities 3,560 3,204

Trade and other payables 1,870 2,212

Total liabilities 5,430 5,416

Total equity and liabilities 12,541 12,814

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

31-Mar-17 31-Dec-16A

ED

Mill

ion

s

Assets

Property and equipment

Investment properties

Investment in a Joint Venture

Inventories

Due from a related parties

Trade and other receivable

Derivative financial instruments

Other financial assets

Cash and bank balances

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

31 Mar 17 31 Dec 16

Equity and Liabilities

Total Equity

Bank facilities

Trade and other payables

As at 31 March 2017

Condensed consolidated statement of comprehensive income


31 Mar 17 31 Mar 16

Reviewed Reviewed

(AED m) (AED m)

Revenue 160 -

Cost of Sales (13) -

General, administration and operating expenses (334) (40)

Marketing and selling expenses (41) (15)

Other expenses (21) -

Interest (expenses) / income (37) 19

Amortization of borrowing cost (6) (2)

Share of loss from Joint Venture - -

Loss for the period (292) (38)

Cash flow hedge gain / (loss) on fair value 4 (37)

Total comprehensive loss for the period (288) (75)

For the three months ended 31 March 2017

(292)

(38)

(350)

(300)

(250)

(200)

(150)

(100)

(50)

-31-Mar-17 31-Mar-16

AE

D M

illio

ns

Loss for the period

Condensed consolidated statement of cash flows

28

Movement in Cash(for three months ended 31 Mar 2017)


31 Mar 17 31 Mar 16Reviewed Reviewed

(AED m) (AED m)Operating ActivitiesLoss for the period (292) (38)Adjustments for:Depreciation Expense 111 2 Interest expenses / (income) 37 (19)Provision for employees' end of service indemnity 1 1 Amortization of borrowing cost 6 2 Share of loss from Joint Venture - -(Increase) / Decrease in advances to contractors and other receivables (43) 44 Increase in inventories (6) -(Increase) / Decrease in trade and other payables (342) 218 Movement in related party balance (1) (13)Net cash (used in) /generated by operating activities (529) 197

Investing activitiesDecrease in other financial assets 571 (178)Additions to property and equipment (64) (844)Additions to investment properties - (40)Interest received 8 3 Investment in Joint Venture (18) -Net cash (used in) / generated by investing activities 497 (1,059)

Financing ActivitiesProceeds from bank facilities 353 887 Borrowing cost paid (6) (5)Finance cost paid (52) (22)Movement in restricted cash - (14)Net cash (used in) / generated by financing activities 295 846

Net cash movement during the period 263 (16)Cash and cash equivalent at the beginning of the period 1,344 364 Cash and cash equivalent at the end of the period 1,607 348

For the three months ended 31 March 2017

(529)

571

(64)(10)

295

(600)

(400)

(200)

-

200

400

600

800

Operating

Investing-Other Financial Assets

Investing-Property and equipment and Investment properties

Investing-Other

Financing

dxb entertainments pjsc

Documents