More Than Ltd Theme Park Business Concept 20090120
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Transcript of More Than Ltd Theme Park Business Concept 20090120
All Rights Reserved More Than Ltd. 2008
BeijingNEWEST:The World’s First Digital Theme Park
Project Summary, Management Team, and Financial Projections
Project Developer: More Than Ltd. (Los Angeles, California)Creating Entertainment Products and Services since 1989
Contact: Mr. Lukic: [email protected]
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Agenda
Project SummaryProject Summary
2.2. Management TeamManagement Team
3.3. Financial ProjectionsFinancial Projections
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Past & Future Meet in the Present: BeijingNEWEST Global VillageA Window to the World
Joint Venture between More Than Ltd. and City of BeijingLegal Entity
Beijing, ChinaLocation
900 mu (60 hectares)Land Size
General Information
More Than Ltd./Los Angeles, Beijing Representative OfficeOwner/Manager/Designer
Digital Entertainment & Technology Exhibition Park Park’s Programming distributed daily via internet, TV, mobile Private Membership Destination Resort
Description
BeijingNEWEST Theme Park & Digital EntertainmentName
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Past & Future Meet in the Present: BeijingNEWEST Global VillageA Window to the World
1.4 Billion RMB ($200 Million USD)Cost
1.5 – 2 years, Start in 2009Timeline
Corporate Sponsorship Construction Finance Bank Loans Private Equity
Finance Method
Construction and Finance
Sustainable design by using advanced building materials,energy-saving buildings,Integrated renewable energy systems and methods(geothermal, solar, biomass, wind)
Characteristics
8 Grand Pavilions for Attractions Restaurants & Shopping Outdoor Attractions Private Membership Club Facilities and Spa Greenhouses
Scope
100,000 sq. metersSize
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Past & Future Meet in the Present: BeijingNEWEST Global VillageA Window to the World
Sales of Exclusivity Rights to 8 companies to exhibit and promoteCorporate Sponsors
Inside Park, Outdoor Advertising on all roads leading to the Park, through internet, TV and mobile phones in China and globally
Advertising Sales
Distribution on internet, TV and mobile phonesCultural Content Sales
All consumer payments done through our company’s Smartcard Pre-sales of Smartcard provides company income before
delivery of services Increased consumer spending due to convenience of using
Smartcard Decreased cash processing and administrative cost Efficient marketing and supply chain analytical method
Special Feature
Income Concept
Admissions, Retail, Food & Beverage, Space Lease, Attractions/Rides, Private Membership Club Fees
Park Operations
Average 150 RMB per person ($22 USD)Admission Fee
First year 3 million, with 10% annual increase (8,200 per day)Annual Visitors
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Past & Future Meet in the Present: BeijingNEWEST Global VillageA Window to the World
Directly 1,000,indirectly 2,000 (via vendors, subcontractors and suppliers)
Number of Employees
Substantial profit potential:Unique aspect of Park’s cultural attractions and services90 Million consumer population and tourists in BeijingRapidly rising amount of consumer disposable income Limited choice of high quality theme parks in Beijing
Economic Feasibility
Established, experienced experts and specialists in the theme park industry from U.S., China, and Europe
Management Team
Team
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Business Model
One operation cost, four income streams, 14 profit centers– Theme Park sales
• Admissions• Attractions• Games• Private Club Memberships
– Advertising Sales• At Theme Park, and via internet, mobile telephone & satellite TV
– Merchandising Sales• Fashion, toys, food & beverages, retail, leasing
– Corporate Sponsorship• Exclusivity and pavilion naming rights
Low cost content generated by Theme Park shows, events and competitions
Cost-free content generated by general public
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Business Model
High Technology Theme Park Operations
Live Shows & Virtual Reality Attractions
Income before Sales (Smartcard sales)
RFID Visitor Tracking– Increased Sales and Security, Minimized Administrative Costs
Broadcasting from the park via– internet,– mobile phone, and– satellite TV
Monetizing the web and mobile phone content traffic through advertising
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Location
City of Beijing
Excellent transportation infrastructure
20 minutes from Beijing Capital Airport
Project land size: 900 mu / 60 hectares
Total indoor space: 100,000 sq. meters
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Multimedia Content Production and Distribution
The Park is a live studio where people connect with each other through the newest technologies, experiencing global culture and entertainment.
Everyone in the Park - the visitors, entertainers and animators are all actors in an ongoing, ever-evolving production.
Networked media facilities are situated throughout the major venues of the Park which connect visitors in Beijing with virtual participants from around the world.
The best of these experiences are then captured, packaged as BeijingNEWEST-branded entertainment and distributed worldwide over the internet, cable, satellite and mobile networks.
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Technology Features
Media Systems– Creating unique experiences for the park visitors based on
contemporary entertainment and lifestyle activities– Enabling interactions with virtual visitors via Internet and mobile network
connections to events as they happen in the park– Capturing contemporary entertainment and lifestyle activities taking
place throughout BeijingNEWEST which are then produced and syndicated for distribution across internet, cable, satellite and mobile networks
Commerce Systems– Smart card technologies which enable park management to analyze
customer spending preferences and optimize service portfolio
Energy Systems– Integration of solar, wind, biomass, and geothermal renewable energy
sources to reduce energy costs. This micro-grid is an attraction in and of itself, and another example of BeijingNEWEST’s commitment to alternative energy resources and sustainable development
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Children’s Programming & Ongoing Daily Events
Dedicated children’s area, designed for children 3-12 years old
Staff of highly qualified child development specialists and educators, who engage and guide children in interactive art and science activities, games, and exhibits
Daily music, dance and theater performances, fashion shows, various competitions and festivals
A feast of food and beverage offerings in themed food courts, restaurants, lounges, nightclubs, cabarets and private membership clubs
80 specialty retail shops and boutiques offering BeijingNEWEST brand products, as well as other exclusive merchandise.
200 character actors performing onstage and offstage throughout the park, interacting with and engaging Park visitors
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Favorable Factors
U.S. Expertise in Theme Park Design, Engineering and Management
Chinese Consumers’ Rising Disposable Income
Fractured Competition in Chinese Theme Park Industry
Entertainment Sales Growth over 12% annually(Source: Global Entertainment Outlook 2004 PriceWaterhouseCoopers)
Beijing Population– 15.3 Million Beijing residents– 40 Million residents within 100 km. of Beijing– 40 Million annual domestic and foreign tourists
– Over 90 Million annual total residents & tourists
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Agenda
1.1. Project SummaryProject Summary
2.2. Management TeamManagement Team
3.3. Financial ProjectionsFinancial Projections
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Management Team
Rad Lukic, Founder & Creative Director
– Founder of BeijingNEWEST Theme Park & Digital Entertainment, with a foreign representative office of More Than Ltd. in Beijing.
– Founder of More Than Ltd. in 1989 in Hollywood, California. Development and management of entertainment products and services for a wide range of clients for over 17 years.
– Founder of Hermes Productions, Inc. Award-winning advertising and marketing company in New York.
– Director and producer of a long-running children’s television series, syndicated and still being broadcast across Europe.
– Masters’ Degree in Film Direction
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Management Team
Norman Doerges, Theme Park Operations Director
– Mr. Doerges is known globally as the management and design force behind the Walt Disney Companies, for over thirty years. He served as the Executive Vice President of Disneyland, and Business Unit Leader for Disneyland and the Disneyland Hotel. Mr. Doerges also served as Vice President of Epcot Center, for which he held complete operating responsibility.
– Mr. Doerges also served as Vice President of Walt Disney Imagineering in Florida, in charge of master planning, design and engineering of internal organization for Walt Disney Companies. He also held the position of Operations Manager of the Magic Kingdom, Walt Disney World.
– Mr. Doerges is recognized internationally as the premier expert in the design, planning and management of theme parks, hotels and resorts.
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Management Team
Mario Kamberg, Chief Designer
– Mr. Kamberg has been at the leading edge of theme park and attractions design for over twenty five years. Creating award-winning projects for numerous international entertainment companies, including Universal Studios, Paramount Parks, Discovery Channel, Busch Gardens, Hanna Barbera, Viacom, Warner Brothers, and many Las Vegas casinos, he has set new industry standards in visual imagery.
– Employing the best technologies in animation, simulation experiences, virtual reality and visual effects, Mr. Kamberg has been at the forefront of production design, themed architecture and environments for some of the world’s most successful theme parks and attractions.
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Management Team
Cui Kai, Chief Architect – Mr. Cui is recognized globally as one of the premier Chinese
contemporary architects. He is the Vice President and Chief Architect for the China Architecture Design and Research Group. Mr. Cui is a member of the Board of Directors of the International Union of Architects.
– Previously, he was the Chief Architect of the China Ministry of Construction’s Architecture Design Studio. Mr. Cui has won international awards for architectural design, including his work on the China Ministry of Finance headquarters in Beijing. He has designed numerous other office and mixed-use buildings in China and throughout the Asia-Pacific region. Mr. Cui is also a highly recognized lecturer and renowned professor of architecture at several prestigious universities throughout China.
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Management Team
Deborah Kagan, Programming Director – Ms. Kagan has extensive experience in corporate administration and
fund raising, and served as More Than Ltd.’s Operations Director. In addition to managing daily operations, she supervised government and public relations, as well as creative and executive recruitment efforts.
– In California, she founded and served as Executive Director of General Education Media Support for Kids (GEMS), a private nonprofit corporation that produced and distributed thematic inter-disciplinary children’s educational television series, and provided media arts and performing arts education programs to Los Angeles youth in underprivileged, urban areas.
– Ms. Kagan holds a Masters’ degree in Education and a Bachelors’ degree in World Arts and Cultures/Cultural Anthropology from the University of California, Los Angeles. She spent five years in Paris as the assistant and protégée of pioneer photojournalist Henri Cartier-Bresson, founder of the legendary Magnum Photos agency.
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Management Team
Robert Kelly, Music Director – Mr. Kelly is a leader in the development and application of multimedia
platforms for the entertainment industry.– He is the founder and CEO of Organic Entertainment, a New York-based
multimedia entertainment and production company.– Mr. Kelly is the exclusive agent for many top level entertainment
executives and recording artists.
– He is also directing the Nina Simone Cultural Village, a themed entertainment and high-tech cultural learning center under construction in Ghana.
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Management Team
Dr. Roland Spahr – Financial Advisor– Dr. Roland Spahr has been working for international consulting
companies in Germany and since August 2005 in China, Beijing– He has been advising in financial services and was a project manager
for developing loan management solutions in international and Chinese banks
– Mr. Spahr developed tools to improve financial services management for investment banking, project finance, company start-ups, and corporate loan business
– He holds a PhD in business research in the field of managing successfully innovation and projects from a business perspective
– Mr. Spahr holds a masters degree of business in finance– He worked in German banks and coached German bankers in banking
business including accounting, finance, controlling, and banking products in the fields of investment, corporate and retail credit, and international trades.
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Agenda
1.1. Project SummaryProject Summary
2.2. Management TeamManagement Team
3.3. Financial ProjectionsFinancial Projections
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Utilization of Investment
Investment Budget: US$ 196.2 Mio.
3.1%
39.5%
8.7%9.1%
17.8%
17.9%
3.9%
Architectural & Design Fees
Base Construction & MEP 100sqm (Mechanical Electronicsand Plumbing)
Infrastructure Improvements(energy & water sewer)
Fixtures, Furnishings, ITequipment
Special effects technologies
Park Operations prior toopening
Contingency
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15 Income Producing Channels
Cumulative Revenues per Income Channel for 5 years
0
50
100
150
200
250
300
350
Admiss
ion fe
es
Food
and
beve
rage
Mer
chan
dise
Amus
emen
ts & a
ttrac
tions
Mult
imed
ia Arc
ade
Feat
ured
Ent
erta
inmen
t & S
hows
Conce
rt Per
form
ance
s
Found
ers C
lub A
nnua
l Fee
s
Resor
t Ope
ratio
ns
Corpo
rate
conv
entio
ns
Leas
e of
reta
il spa
ce
Med
ia Sale
s
Pavilli
on n
aming
righ
ts
Corpo
rate
Spo
nsor
ships
Corpo
rate
Adv
ertis
ing
Mio US$
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Investment and Return
5 Year Plan - Cumulative Investment and Cash-flow
0
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200
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500
600
700
2008 2009 2010 2011 2012 2013 2014 2015 2016
Year
US$
Investment
Net Profit
Cash-flow
Minimum Cash-flow(Based on Monte-Carlo Simulation)
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Projection of Financials forPlanning, Construction and Operation
Planning and ConstructionUnit PlanningPlanning Construction
Financials and Projections for 2007/08 Year 2004 2005 2006 2007 2008 2009
EBITDA Mio US$ -2.3 -2.8 -3.6 -0.9 -7.0 -10.2
Cash-flow Mio US$ -2.3 -2.8 -3.6 -0.9 -68.3 -127.9
Already invested Mio US$ 2.3 2.8 3.6 0.9
Investment needed for each year Mio US$ 0.0 0.0 0.0 0.0 68.3 127.9
OperationUnit Operation
Financial Projections Year 2010 2011 2012 2013 2014
EBITDA Mio US$ 109.2 149.2 168.2 182.6 198.4
EBITDA/Total Revenues % 39.9% 43.8% 44.4% 44.3% 44.2%
Net Profit Mio US$ 57.5 92.4 108.4 120.0 132.7
Cash-flow Mio US$ 76.8 111.6 127.6 139.2 151.9
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Results of Monte Carlo Simulation
In at least 95% of all 50,000 simulated cases the net profit of all five years together is big enough to pay back investors in total
Risk of default is very small
Monte Carlo Simulation (MCS) on Net Profits
Summary of 50,000 MCS Y2010 Y2011 Y2012 Y2013 Y2014 FairValue*
Min -5 11 14 18 19 116
Max 192 257 274 298 329 2,732
Number of cases negative profit 1 0 0 0 0 0
Probability of Default 0.002% n.e. n.e. n.e. n.e. n.a.
Benchmark from PL 61 90 102 111 121 980
Average from MCS 61 90 102 112 121 983
75% of all cases higher then 43 68 78 85 92 739
90% of all cases higher then 32 55 63 69 74 592
95% of all cases higher then 26 48 56 60 65 517
FairValue*: NPV on average net profit at 10% discount rate Mio US$
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Conclusion
BeijingNEWEST represents
an unusual synthesis of market readiness,
creative concept,
team expertise, and
investment opportunity.