Q2 2016 Earning Results Presentation - DXB Entertainments · This presentation is an advertisement...

Q2 2016 Earning Results Presentation

11th August 2016

EXPERIENCE AMAZING

DISCLAIMER

IMPORTANT NOTICE

THIS PRESENTATION 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 Dubai Parks and Resorts 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, LEGOLAND are trademarks of the LEGO Group. ©2015 The LEGO Group. LEGOLAND IS A PART OF THE MERLIN ENTERTAINMENTS plc.

CONTENT

Highlights of Q2 2016

Project Update

Corporate and Operational Update

Financial Summary

Property and equipment, investment properties and advances and other receivables

7,608 5,307

Cash and other financial assets 4,015 3,319

Total assets* 11,623 8,626

Q2 2016 Performance Highlights

Opening date announced for 31st October 2016

• 93% overall infrastructure construction completed• 84% overall ride system completed• 80% overall facilities construction completed• 60% overall show systems completed

Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 30 June 2016 figures are unaudited. 4

* includes 1,670 million for Six Flags Dubai and Business Development.

For the period ended 30 June 2016, the Company had no operating revenue.

Loss for the period ended 30 June 2016 was 80 million AED.

• Over 80% of total available space at Riverland™ Dubai leased at the end of June with 50 lease proposals signed.

• Successfully concluded AED 1.68 billion Rights Issue to primarily finance Six Flags Dubai

• Shareholder approval to change the name of the company to DXB Entertainments PJSC

• Shravan Shroff added as an independent non-executive director

Drawn down AED 2.7 billion of banking facility

(‘000 visitors YOY Jan – May 2016 | 15)

Jan-May 2016 2015 % change

1 INDIA 772 686 13%

2 KSA 721 631 14%

3 UK 550 509 8%

4 OMAN 528 409 29%

5 USA 261 265 -2%

6 PAKISTAN 245 214 15%

7 GERMANY 241 240 0%

8 CHINA 232 211 10%

9 IRAN 197 217 -9%

10 KUWAIT 186 183 2%

15 RUSSIA 110 110 -1%

Source of Visitor by Region (% in YTD May 2016)

Favourable UAE Tourism Growth Trends

Sources: DTCM and Mastercard Global Destination Index.

WesternEurope22%

GCC24%

MENA11% South Asia

17%

Americas

6%North Asia and South-East Asia

9%

RUSSIA, CIS, EE

5%

Africa 4%

Australasia

2%

Total OvernightInternationalVisitors

14.2m2015

2015

2014 $10.9 Billion

$11.68 Billion

Total OvernightInternationalVisitors

6.6mYTD May 2016

5

CONTENT


Project Update


Financial Summary

Overall construction Achieved 2015 Q2 2016

Structure works 88% 99%

MEP 29% 70%

Envelope & Façade 30% 76%

Finishes 24% 65%

Overall Project Completion Snapshot

Ride systemsAchieved 2015 Q2 2016

Production 89% 99%

Delivery 63% 97%

Installation and Commissioning

9% 34%

Achieved 2015

100%

Show systems Achieved 2015 Q2 2016

Production 32% 78%

Delivery 14% 57%

Installation and Commissioning

0% 4%

Achieved 2015 Q2 2016

89% 93%


Construction Update

8

DreamWorks Building

motiongate™ Dubai motiongate™ Dubai

DreamWorks Building

Construction Update…continued

9

Rajmahal TheatreRajmahal Theatre

Bollywood Park™ DubaiRajmahal Theatre

Construction Update…continued

10

Riverland™ Dubai

LEGOLAND® Dubai

Lapita™ Hotel

LEGOLAND® Dubai

CONTENT


Project Update


Financial Summary

12

Sales and Marketing Update

1. Create active consideration and pre booking solutions for tourist planning to vacation in Dubai

2. Drive demand and secure conversion for tourists already in Dubai3. Develop alternative segments to limit dependency on leisure individuals4. Build contingency plan based on consumer insight and business

intelligence

• Pricing policy and distribution channels have been finalized with contracting and connectivity underway:

o 30 DMC resellers agreements have been signedo 24 Tour Operators cooperation agreement on joint marketing

activities have been finalized in India, UK and KSA. We are expecting to sign further agreements in the GCC, China, Africa, and Russia.

o B2B sales platform development and will be released in the second half of August

• Marketing agreements with Emirates for in flight promotions and Fly Dubai for promotions and on board sales

• DPR consumer facing website available in English/Arabic • Radio campaign ongoing locally on three stations • Coordination with partner studios to run activations in line with movie

releases e.g. Ghostbusters

23rd February 2016Launch of first annual pass sales

25th April 2016Launch of remaining annual pass sales

27th April 2016Key partnership agreements announced

23rd April 2016Launch of local media advertising

Week starting 22nd August 2016Launch of single day ticket sales

15th September 2016Launch of international media advertising

13

Theme Park Operations Update

1st March 2016Start of Rajmahal Theatre rehearsals in India

8th May 2016Handover of Rajmahal Theatre to operations and start of rehearsals in Dubai

30th July 2016Start of Bollywood Parks™ Dubai show rehearsals

31st July 2016Start of motiongate™ Dubai rehearsals including Step Up

21st August 2016Start of LEGOLAND® Dubai show rehearsals

10th March 2016Handover of Bollywood Parks™ Dubai administration building

12th June 2016Handover of LEGOLAND® Dubai administration building

23rd June 2016Beginning of attraction cycling at motiongate™ Dubai

10th July 2016Start of operation of staff canteen

19th July 2016Handover of motiongate™ Dubai administration building

31st October 2016Targeted Opening

14

Human Resources Update

• 514 full time employees as at the end of June 2016

• 1,600 contracts offered following recruitment roadshows held in 2016

• Further overseas recruitment events to be held in the coming months to bring total staff to 4,000

• Progress made towards the goal of hiring up to 1,000 Emiratis for October opening

• 744 Emirati employees have been offered contracts since the launch of the Emiratisationprogramme, out of which 249 are waiting to join and 172 are currently employed

• 10 Helmi programme students have graduated with a degree in Theme Park Management from the University of Central Florida in Orlando. Additional 40 candidates have started the Helmiprogramme in Dubai

Leasing Update – Riverland™ Dubai

15

• Total lease proposals signed: 50• Total lease space signed: over 80% of total available• Total revenue: over 130% of projected revenue in 2017

800 Degrees PizzaBig ChefsElla’s CreameryFamous Dave’s BarbequeGalito’s Flame Grilled ChickenGiraffeHaruIrish VillageKatsuyaLe Pain Quotidien

BootsDiscover DubaiFeet FirstFuzziwig’s Candy FactoryHavaianasMaharajaSun Eye OpticsWired Up

Costa CoffeeJamba JuiceStarbucks

Leopolds of LondonMilasN BurgerParleThe Bagel Bar Coffee HouseTom’s DeliTortillaShake ShackShrimpyWokchi

Note: This is not a comprehensive list of tenants

16

KPIs for 2016

Forecasts for 2017, the first full year of operations, remains 6.7 million visits and AED 2.4 billion in revenue. Detailed operating budgets expected to be finalized by year end.

For the first two operational months of 2016, management forecasts:

Total RevenueAED 297 million

Overarching KPI – The One Thing (TOT) Business Strategy

Annual Visits 0.9 million

• Target soft opening 1 October 2016• Opening confirmed for 31 October 2016• Significant portion of MOTIONGATE™ Dubai will premiere on 31st October,

work on some of the attractions will be ongoing and available within a couple of months

Open in October 2016Within AED 10.5 billion

CONTENT


Project Update


Financial Summary

Key Indicators (AED million) TOTAL

Total assets as at30 June 2016

2,326 1,010 1,208 618 462

Infrastructure and others

11,6235,999

RivelandTM Dubai formerly known as Riverpark

Q2 2016 Financial Summary

Pre-opening expenses(Project to date) 39 27 21 3 6 279183


Total at the end of Q2 2016 2,365 1,037 1,229 621 468 11,9026,182

Q1 2016 Interim Condensed Consolidated Financial Statements

Increased to AED 7,179 million (Dec 2015: AED4,937 million) includes land and capital work in progress amounting to AED 491 million in relation to SFDubai project (Dec 2015: Nil).

Increased to AED 429 million (Dec 2015: AED 372 million)

AED 4,015 million (Dec 2015: AED 3,317 million)

AED 8,000 million (Dec 2015: AED 6,322 million)

AED 287 million (Dec 2015: AED 143 million)

Drawn down AED 2,693 million (Dec 2015: AED 1,461 million)

Increased to AED 1,379 million (Dec 2015: AED 1,177 million)

Reduced to AED Nil million (Dec 2015: AED 13 million)

The Company has not commenced its revenue generating activities and losses for the period was AED 80 million (Jun 2015: AED 29 million)

Six Flags Dubai right issue concluded in June 2016, issued share capital increased by AED 1,678 million

19

Interim Financial Information for the six months ended 30 June 2016

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 2016 figures are unaudited.Advances include interest receivable

Property and equipment

58%

Investment properties

3%

Advances to contractors and other

receivables4%

Other financial assets24%

Cash and bank

balances11%

Consolidated Statement of Financial Position


Property and equipment 6,792 4,652 Investment properties 387 283 Advances to contractors and other receivables 429 372 Derivative financial instruments - 2 Other financial assets 2,738 2,856 Cash and bank balances 1,277 461

11,623 8,626

Share capital 8,000 6,322 Equity issue reserve - 3 Cash flow hedge reserve (53) 2 Accumulated losses (234) (149)

7,713 6,178

Bank facilities 2,478 1,257 Trade and other payables 1,379 1,178 Derivative financial instruments 53 -Due to a related party - 13

3,910 2,448 11,623 8,626

Property and equipment

Investment properties

Advances to contractors and other receivables

Derivative financial instruments

Other financial assets

Cash and bank balances

Total EquityDue to a related partyDerivative financial instrumentsTrade and other payablesBank facilities

Consolidated Statement of Comprehensive Income


General and administrative expenses (89) (41)

Marketing and selling expenses (22) (7)

Interest Income 36 27

Amortization of borrowing costs (5) (8)

Loss for the period (80) (29)

Other comprehensive income

Cash flow hedge - loss on fair value (55) -Total comprehensive loss for the period (135) (29)

Loss per share:

Basic and diluted loss per share (fils) (0.012) (0.005)

Statement of Cash Flows

22

Consolidated Statement of Cash Flows

Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 30 June 2016 figures are unaudited.

Loss for the period (80) (29)Adjustments for: - -Depreciation Expense 4 1 Interest Income (36) (27)Amortisation of borrowing cost 5 8 Provision for employees' end of service indemnity 2 1 Increase in advances to contractors and other receivables (57) (214)Increase in trade and other payables 199 164 Net cash used in operating activities 37 (96)

Decrease in other financial assets 118 1,019 Increase in short-term deposits (650) -Additions to property and equipment (2,086) (944)Additions to investment properties (104) (15)Interest received 36 23 Net cash used in/generated by investing activities (2,686) 83

Proceeds from issuance of share capital 1,678 -Share issue cost (9) -Proceeds from bank facilities 1,232 -Borrowing cost paid (21) -Finance cost paid (53) (22)Movement in restricted cash (13) -(Decrease)/increase In due to a related party (13) 9

Net cash from a financing activity 2,801 (13)Net decrease in cash and cash equivalent 152 (25)Cash and cash equivalent at the beginning of the period 364 163 Cash and cash equivalent at the end of the period 516 138

37 118

(2,190)

(614)

2,801

Operating

Investing-Financial Assets

Investing-Property and equipment and Investment properties

Investing-Other

Financing

23

Contact Us

Investor Relations Contacts

Marwa GoudaHead of Investor Relations

Abdulrahman Al-SuwaidiInvestor Relations Officer

[email protected]

www.dprcorporate.ae

Dubai Parks and Resorts

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

Tel: +971 4 8200 820Fax: +971 4 5114 998

[email protected]

www.dubaiparksandresorts.com

24

Save the Date

Analyst and Investor Day

29 October 2016

Details to follow….

Save the Date

25

Download the DPR IR App

CONTENT

Appendix

27Shareholder structure as at 29 June 2016. * Excluding Meraas

Shareholder Structure

Meraas52%

Qatar Holding 11%

Mubasher 5%

Institutional 23%

Retail9%

International20%

GCC54%

UAE26%

Rest of MENA12%

International19%

GCC10%

UAE59%

Q2 2016 Earning Results Presentation - DXB Entertainments · This presentation is an advertisement...

Documents

Transcript of Q2 2016 Earning Results Presentation - DXB Entertainments · This presentation is an advertisement...